Common use of Preferred Vendor Status Clause in Contracts

Preferred Vendor Status. TriZetto shall be the preferred application services provider and transformation services provider to IMS from the date hereof and for a period of five (5) years following the Closing Date. As the preferred provider, to the extent that TriZetto offers application services and transformation services, including consulting and implementation services, that IMS seeks to obtain from a third party, at levels of price, quality and service that are competitive with the levels obtainable by IMS in an arm's length transaction with a third party, TriZetto will be given the first opportunity to submit bids to provide such services. After the date hereof, each of the parties agrees to cooperate in good faith and use their respective reasonable best efforts to formalize the terms of such preferred vendor status in an agreement mutually acceptable to both parties.