EX-10.1 EMPLOYMENT AGREEMENT / CHARLES A. MELE



 






EXHIBIT 10.1




CONFORMED COPY




          AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) dated as of February 1, 2006, by
and between EMDEON CORPORATION, a Delaware corporation (the “Company”), and CHARLES A. MELE
(“Executive”).




          WHEREAS, Executive and the Company, a Delaware corporation, are party to an Employment
Agreement dated as of July 1, 2000 (as previously amended and restated, the “Original Employment
Agreement”); and




          WHEREAS, the Company and Executive desire to amend and restate the Original Employment
Agreement;




          NOW, THEREFORE, in consideration of the mutual covenants in this Agreement, the parties agree
as follows:




          1. Effectiveness of Agreement and employment of Executive.




          1.1. Effectiveness of Agreement. This Agreement shall become effective on the
date set forth above (the “Effective Date”).




          1.2 Employment by the Company. (a) The Company hereby continues to employ
Executive and Executive hereby accepts such continued employment by the Company. Executive’s title
shall be Executive Vice President — General Counsel of the Company. Executive shall report to the
Chief Executive Officer of the Company. Executive shall perform such duties and services for the
Company and its subsidiaries (such subsidiaries, collectively, “Affiliates”) which shall be
commensurate with his position and shall primarily consist of
providing senior legal counsel to the
Company.




          (b) Executive shall perform his duties hereunder at the Company’s headquarters in Elmwood
Park, New Jersey. Executive shall use diligent efforts to promote the interests of the Company and
its Affiliates, and shall devote substantially all of his business time and attention to his
employment under this Agreement, provided, however, that Executive shall be permitted to manage his
personal, financial and legal affairs that may from time to time require insubstantial portions of
his working time, but would not singularly or in the aggregate interfere or be inconsistent with
his duties and obligations under this Agreement.




          2. Compensation and Benefits.




          2.1. Salary. The Company shall pay Executive for services during the Employment
Period (as defined in Section 3 below) a base salary at the annual rate of $450,000 (and as it may
be increased pursuant to this Section 2.1, the “Base Salary”). Such Base Salary may be increased
(but not decreased) from time to time in the sole discretion of the Company. The Base Salary




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shall be payable in equal installments, no less frequently than monthly, pursuant to the Company’s
customary payroll policies in force at the time of payment, less any required or authorized payroll
deductions.




          2.2. Benefits. During the Employment Period, Executive shall be entitled to
participate, on the same basis and at the same level as other senior executive officers of the
Company in any group insurance, hospitalization, medical, health and accident, disability, fringe
benefit and tax-qualified retirement plans or programs of the Company now existing or hereafter
established to the extent that he is eligible under the general provisions thereof.




          2.3. Expenses. Pursuant to the Company’s customary policies in force at the time
of payment, Executive shall be promptly reimbursed, against presentation of vouchers or receipts
therefor, for all expenses properly and reasonably incurred by him on behalf of the Company or its
Affiliates in the performance of his duties hereunder. In furtherance of the foregoing, and not in
limitation thereof, Executive shall be subject to the travel and entertainment policy applicable to
senior executive officers of the Company.




          2.4 Vacation. Executive shall be entitled to eight weeks of paid vacation during
each 12 month period of the Employment Period. Any unused portion of such vacation time shall be
accrued and carried over to a subsequent 12 month period or periods at the discretion of Executive.




          2.5 Car Allowance. During the Employment Period, the Company shall provide
Executive with a car allowance in accordance with Company policy.




          2.6 Bonus. Executive shall be eligible to receive an annual bonus to be
determined by the Compensation Committee of the Board of Directors in its discretion payable at
such time as bonuses are paid to similarly situated executive officers so long as Executive remains
in the employ of the Company on the payment date (except as set forth in Section 5.2, 5.3, 5.5, and
5.6 below).




          3. Employment Period.




          Executive’s employment under this Agreement shall commence as of the Effective Date, and shall
terminate on the fifth anniversary thereof, unless terminated earlier pursuant to Section 5 or
automatically renewed pursuant to the terms of the immediately following sentence (the “Employment
Period”). Unless written notice of either party’s desire to terminate the Employment Period has
been given to the other party at least 30 days prior to the expiration of the Employment Period (or
any one-month renewal thereof contemplated by this sentence), the Employment Period shall be
automatically be renewed for successive one-month periods.




          4. Stock Options.




     Executive has been granted options (collectively referred to herein as the “Company Stock
Options”) to purchase shares of the Company’s common stock and shares of restricted common stock of
the Company (the “Restricted Stock” and collectively with the Company Stock



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Options being referred to herein as the “Company Equity”) pursuant to the respective equity
plans of the Company, including any such plans assumed by the Company (collectively referred to
herein as the “Company Equity Plans”) and the terms of the respective stock option agreement and
restricted stock agreement entered into between Executive and the Company, including any such
agreements assumed by the Company (collectively referred to herein as the “Company Equity
Agreements”). Executive has been granted an option (the “WebMD Health Option” and collectively with
the Company Equity being referred to as the “Existing Equity”) to purchase 44,000 shares of WebMD
Health Corp. pursuant to the WebMD Health 2005 Long Term Incentive Plan (the “WebMD Health Plan”).
Subject to Executive’s remaining in the employ of the Company (except as set forth in Sections 5.2,
5.3, 5.5 and 5.6 below), the Restricted Stock shall continue to vest and the Company Stock Options
and WebMD Health Option shall become exercisable or, to the extent exercisable, remain exercisable
in accordance with the terms of the applicable Company Stock Option Agreement and the WebMD Health
Stock Option Agreement.




     5. Termination.



          5.1 Termination by the Company for Cause. (a) The Employment Period may be
terminated at any time by the Company for Cause (as defined below). Upon such a termination, the
Company shall have no obligation to Executive other than (i) the payment of Executive’s earned and
unpaid Base Salary and accrued vacation time to the effective date of such termination and (ii)
Executive shall not be entitled to any additional rights or vesting with respect to the Existing
Equity following the effective date of such termination.




          (b) For purposes of this Agreement, the term “Cause” shall mean any of the following:




                  1. Any material breach by Executive of this Agreement, which breach, if susceptible to
cure, is not cured by Executive within 30 days following written notice from the Company detailing
such breach; or



                  2. Executive’s conviction of a felony.



          5.2 Death and Disability.




          (a) The Employment Period may be deemed terminated by the Company upon the death of
Executive or Executive becoming Disabled (as defined below), and Executive or Executive’s estate
shall be entitled to such benefits described in Section 5.3(a)(i)-(vi) that he would have been
entitled to receive if the Employment Period were terminated by the Company without Cause (or any
greater benefit as provided in the applicable Company Equity Plan or the WebMD Health Plan),
provided, however, that the Company shall have no other obligation to Executive or Executive’s
estate pursuant to this Agreement in the event that the Employment Period is terminated by the
Company pursuant to this Section 5.2.




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          (b) For purposes of this Agreement, Executive shall be “Disabled” if (i) Executive
becomes incapacitated by bodily injury or disease (including as a result of mental illness) so as
to be unable to regularly perform the duties of his position for a period in excess of 180 days in
any consecutive twelve-month period or (ii) a qualified independent physician mutually acceptable
to the Company and Executive determines that Executive is mentally or physically disabled so as to
be unable to regularly perform the duties of his position and such condition is expected to be of a
permanent duration.




          5.3 Termination by the Company Without Cause.




          (a) The Employment Period may be terminated at any time by the Company without Cause. If
the Company terminates the Employment Period without Cause, the Company shall have the following
obligations to Executive (but excluding any other obligation to Executive pursuant to this
Agreement):





	 	(i)	 	a continuation of the Base Salary for a period (the “Severance
Period”) commencing on the date of termination and ending on the third
anniversary of the date of termination; provided that the Base Salary
for the first six months of the Severance Period shall be paid to Executive in
a lump sum at the end of such six-month period in accordance with the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended
(“Section 409A”); provided further that such delay in payment will not
apply to the extent that guidance issued under Section 409A allows payment to
be made when otherwise due without subjecting the Executive to additional taxes
under Section 409A.
	 
	 	(ii)	 	Executive shall be eligible to continue to participate during
the Severance Period, on the same terms and conditions that would have applied
had he remained in the employ of the Company during the Severance Period, in
all medical, vision, dental, life and disability plans provided to Executive
pursuant to Section 2.2 at the time of such termination and which are provided
by the Company to its employees following the date of termination (“Welfare
Plans”), provided that Executive shall pay the amount of the employer portion
of the applicable premiums for the first six months of the Severance Period,
which amount will be reimbursed to him in a lump sum at the end of such
six-month period, provided further that the Executive shall not be required to
pay the premiums for coverage under the Welfare Plans for the first six months
of the Severance Period to the extent that guidance under Section 409A allows
such premiums to be paid by the Company without subjecting the Executive to
additional taxes under Section 409A. With respect to any continuation of
Executive’s insurance coverage under this Section 5.3(a)(ii), the Company may
require Executive to elect “COBRA”, and, in such case, the Company will,
subject to the provisos to the sentence above, pay that portion of the COBRA
premium that the Company pays for active employees with the same coverage for
the period that Executive is eligible for COBRA.




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	 	(iii)	 	(A) if the termination of Executive’s employment occurs after
the completion of the Company’s fiscal year, but prior to the payment of the
bonus for that year contemplated by Section 2.6, Executive shall be entitled to
receive the bonus otherwise payable in accordance with such Section (if any) at
such time as bonuses are paid generally to executive officers for such year
(but in no event later than March 15 of the year following the year for which
the bonus is payable); (B) payment by the Company to Executive of a bonus for
the fiscal year in which the termination of employment occurs payable at such
time as bonuses are paid generally to executive officers for such year, but no
later than March 15 of the year following the year for which the bonus is
payable (except if later and if necessary to avoid subjecting the Executive to
additional taxes under Section 409A, the date that is six months after the date
the Executive terminates employment), the amount (the “Prior Bonus Payment”) of
which to be the greater of (i) the bonus paid by the Company to the Executive
for the fiscal year immediately prior to the date of termination (if any) and
(ii) the average of the bonus payments paid for the three years immediately
prior to the date of termination and (C) payment by the Company to Executive
of a bonus for the two years following the fiscal year in which the termination
of employment occurs payable at such time as bonuses are paid generally to
executive officers for such years, the amount of each bonus being the Prior
Bonus Payment.
	 
	 	(iv)	 	the vested options to purchase the Company’s common stock that
Executive currently holds other than the option granted March 17, 2004 (the
“Affected Parent Options”) shall remain exercisable until such stock option
would expire under the terms of the Stock Option Agreement pursuant to which
such stock option was granted, and otherwise be treated for purposes of the
terms and conditions thereof as if Executive was employed by the Company until
the latest possible date;
	 
	 	(v)	 	the option to purchase the Company’s common stock and the
restricted stock granted on March 17, 2004 shall be deemed fully vested and
such option shall remain exercisable for the post termination exercise period
specified in the option agreement plus an extension to the later of (A) the
15th day of the third month following such post-termination exercise
period or (B) December 31 of the calendar in which such post-termination
exercise period would terminate (but in no event to a date after the
termination of the original 10 year term); and
	 
	 	(vi)	 	that portion of the WebMD Health Option that would have vested
on the next vesting date following the date of termination shall be deemed
vested on the date of termination and the WebMD Health Option shall remain
exercisable for the post termination exercise period specified in the option
agreement plus an extension to the later of (A) the 15th day of the
third month following such post-termination exercise period or (B) December 31
of the calendar in which such post-termination exercise period would




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	 	 	 	terminate (but in no event to a date after the termination of the original
10 year term);




provided further, that the continuation of the payments, benefits and option exercisability
described in clause (i)-(vi) above shall cease on the occurrence of any material breach of the
covenants contained in Section 6 below; provided further, however, that Executive’s eligibility to
participate in the Welfare Plans shall cease at such time as Executive is offered comparable
coverage with a subsequent employer. If Executive is precluded from participating in any Welfare
Plan by its terms or applicable law, the Company shall provide Executive with benefits that are
reasonably equivalent in the aggregate to those which Executive would have received under such plan
had he been eligible to participate therein (provided that the Company’s liability shall not exceed
three times the amount it would incur if Executive was covered by the Company’s plans). Anything to
the contrary herein notwithstanding in Section 5.2 or this Section 5.3, the Company shall have no
obligation to continue to maintain any Welfare Plan solely as a result of the provisions of this
Agreement.




          (b) Notwithstanding anything to the contrary in this Agreement, notice by the Company to
Executive that the Company wishes to terminate the Employment Period prior to or during any
automatic renewal thereof pursuant to Section 3 hereof shall be deemed to be a termination by the
Company without Cause pursuant to this Section 5.3. For the avoidance of doubt, any termination or
expiration of the Employment Period other than pursuant to Section 5.1, 5.2, 5.5 or 5.8 hereof
shall be deemed to be a termination pursuant to this Section 5.3.




          5.4 Liquidated Damages. Executive acknowledges that the payment in full of all
amounts and benefits due to him under Section 5.3, Section 5.5 or Section 5.6 resulting from a
termination of the Employment Period by the Company without Cause, by Executive for Good Reason or
after a Change in Control (as such terms are defined below) are in lieu of any and all claims that
Executive may have against the Company any of its Affiliates (including, without limitation, any
discrimination claims under Title VII of the Civil Rights Act of 1964, the Age Discrimination in
Employment Act and similar federal and state laws and regulations) other than benefits under the
Company’s employee benefit plans that by their terms survive termination of employment, benefits
under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, and rights to
indemnification under certain indemnification arrangements for officers of the Company), and
represent liquidated damages (and not a penalty). The Company may request that Executive confirm
such acknowledgment in writing prior to the receipt of such benefits.




          5.5 Termination by Executive for Good Reason.




          (a) Executive may terminate his employment with the Company during the Employment Period
(and the Employment Period will be terminated) for Good Reason. If Executive terminates his
employment with the Company for Good Reason, Executive shall be entitled to such benefits as
described in Section 5.3(a) that he would have been entitled to receive as if the Employment Period
were terminated by the Company without Cause.




          (b) For purposes of this Agreement, the term “Good Reason” shall mean any of the
following conditions or events which condition(s) or event(s) shall remain in effect 30 days after




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written notice is provided by Executive to the Company detailing such condition or event:




          1. a material reduction in Executive’s title or responsibilities with the Company after
the Effective Date;




          2. if, for any reason, Executive is required to report to anyone other than the Chief
Executive Officer;




          3. any reduction in the Base Salary or material fringe benefits provided by the Company;




          4. any material breach by the Company of this Agreement;




          5. Executive is required to relocate his place of work to a location that is more than
25 miles of his current residence; or




          6. six months following a Change in Control of the Company, so long as Executive remains
in the employ of the successor or the Company during such six month period (unless the successor
terminates Executive’s employment without Cause or Executive resigns for Good Reason (other than
under this paragraph 6) during such six month period); provided that in such event, Executive shall
be entitled to the payments and benefits described in Section 5.6(b);




          5.6 (a) Change in Control.




          For purposes of this Agreement, a “Change in Control” of the Company shall have the meaning
specified in the Company’s 2000 Long Term Incentive Plan in effect as of the Effective Date. For
the avoidance of doubt, no public offering or any split-off, spin-off or other divesture of WebMD
Health by the Company to stockholders shall constitute a Change in Control of the Company or of
WebMD Health for purposes of the Agreement.





                  For purposes of this Agreement, a “Change in Control” of WebMD Health shall be deemed to have
occurred:




	 	(i)	 	when any “person”, as defined in Section 3(a)(9) of the Securities Exchange Act, and as
used in Sections 13(d) and 14(d) thereof, including a “group”, as defined in Section 13(d)
and 14(d) thereof (but excluding WebMD Health (and any successor to WebMD Health in a
transaction which did not result in a Change in Control), any subsidiary or parent of WebMD
Health and any employee benefit plan sponsored or maintained by WebMD Health or any
subsidiary or parent of WebMD Health (including any trustee of such plan acting as trustee))
directly or indirectly becomes the “beneficial owner” (as defined in Rule 13d-3 under the
Exchange Act) of securities of WebMD Health representing more than 50% of the combined
voting power of its then outstanding securities;
	 
	 	(ii)	 	when, at any time during the Employment Period, the individuals who constitute the WebMD
Health Board on the Effective Date (the “WebMD Health Incumbent




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	 	 	 	Directors”) cease for any reason to constitute at least a majority thereof; provided,
however, that a director who was not a director at the Effective Date shall be deemed to
be a WebMD Health Incumbent Director if such director was elected by, or on the
recommendation of or with the approval of at least a majority of the directors of WebMD
Health who then qualified as WebMD Health Incumbent Directors, either actually (because
they were directors on the Effective Date) or by prior operation of this clause (ii);






	 	(iii)	 	when there is consummated a merger or consolidation of WebMD Health with any other
corporation, other than (A) a merger or consolidation which would result in the voting
securities of WebMD Health outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with the ownership
of any trustee or other fiduciary holding securities under an employee benefit plan of WebMD
Health or any subsidiary or parent of WebMD Health, more than 50% of the combined voting
power of the securities of WebMD Health or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (B) a merger or consolidation
effected to implement a recapitalization of WebMD Health (or similar transaction) in which
no person becomes the beneficial owner, directly or indirectly, of securities of WebMD
Health representing more than 50% of the combined voting power of WebMD Health’s then
outstanding securities;
	 
	 	(iv)	 	when there is a sale or disposition of all or substantially all of WebMD Health’s assets,
other than a sale or disposition by WebMD Health of all or substantially all of its assets
to an entity, at least 50% of the combined voting power of the outstanding securities of
which are owned by stockholders of WebMD Health in substantially the same proportions as
their ownership of WebMD Health immediately prior to such sale; or
	 
	 	(v)	 	when WebMD Health adopts a plan of complete liquidation.




(b) In the event of the occurrence of a Change in Control of Emdeon, the Executive may resign at
any time following the six month anniversary of such Change in Control upon 30 days prior written
notice and receive the benefits as if his employment was terminated by the Company without Cause
provided that (i) the Severance Period for purposes of salary continuation shall be the longer of
the remainder of the Employment Period and three years (such period being the “Change in Control
Payment Period”) and (ii) the Bonus shall be paid for each year during the Change in Control
Payment Period (prorated for partial years) and the amount of such bonus for each year shall be the
Prior Bonus Payment and (iii) the WebMD Health Option shall be deemed fully vested on the date of
termination and the post termination exercise period shall be as specified in Section 5.3(a)(vi).
In the event that Executive’s employment is terminated by the Company without Cause or by Executive
for Good Reason (other than under paragraph 6 of the definition of Good Reason) or as a result of
his death or his becoming Disabled at any time following a Change in Control, Executive shall be entitled to
the benefits set forth in this Section 5.6(b) (or such greater
benefits as may be provided in the applicable Company Equity Plan or
WebMD Health Plan with respect to death or becoming Disabled).




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(c) In the event of the occurrence of a Change in Control of WebMD Health or WebMD Health is no
longer an Affiliate (as defined in the WebMD Health Equity Plan) of the Company, the WebMD Health
Option shall be deemed fully vested on such date of the Change in Control of WebMD Health or the
date that the Company is no longer an Affiliate of WebMD Health and the post termination exercise
period shall be as specified in Section 5.3(a)(iv).




          5.7 Inconsistent Equity Plan and Equity Agreement Provisions. In the event that
Executive’s employment by the Company is terminated pursuant to Section 5.2, 5.3, 5.5 or 5.6
hereof, notwithstanding anything to the contrary contained in any Company Equity Plan, WebMD Health
Plan or Company Equity Agreement or WebMD Health Stock Option Agreement, all of such Existing
Equity shall be treated in the manner described in Section 5.3(a)(iv), (v) and (vi) or Section
5.6(b) and (c), as applicable.




          5.8. Termination by Executive Without Good Reason. Executive may resign from his
employment with the Company at any time without Good Reason. Upon such a termination, the Company
shall have no obligation other than (i) the payment of Executive’s earned and unpaid Base Salary
and accrued vacation time to the effective date of such termination and (ii) as provided in the
Company Equity Agreements and the WebMD Health Stock Option Agreement.




          5.9 Section 409A. Any payments required to be paid to Executive pursuant to this
Agreement during the first six months following the termination of Executive’s employment shall be
paid to Executive in a lump sum at the end of such six-month period in accordance with the
requirements of Section 409A , provided that such delay in payments will not apply to the extent
that guidance issued under Section 409A allows payments to be made when otherwise due without
subjecting the Executive to additional taxes under Section 409A.




          6. Covenants of Executive.




          6.1 Confidentiality.




                  Executive understands and acknowledges that in the course of his employment, he will have
access to and will learn information that is proprietary to, or confidential to the Company and its
Affiliates that concerns the operation, methodology and plans of the Company and its Affiliates,
including, without limitation, business strategy and plans, financial information, protocols,
proposals, manuals, clinical procedures and guidelines, technical data, computer source codes,
programs, software, know-how and specifications, copyrights, trade secrets, market information,
Developments (as defined in Section 6.4 below), information regarding acquisition and other
strategic partner candidates, and customer information (collectively, “Proprietary Information”).
Executive agrees that, (i) at all times (including following termination of his employment with the
Company) with respect to Proprietary Information, he will keep confidential and will not disclose
directly or indirectly any such Proprietary Information to any third party, except as required to
fulfill his duties hereunder, and will not misuse, misappropriate or exploit such Proprietary
Information in any way. The restrictions contained herein shall not apply to any information which
Executive can demonstrate (i) was already available to the public at the time of disclosure, or
subsequently becomes available to the public, otherwise than by breach of this Agreement by
Executive or (ii) was the



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subject of a court order for Executive to disclose. Upon any termination of Executive’s employment,
Executive shall immediately return to the Company all copies of any Proprietary Information in his
possession.




          6.2. Restrictions on Solicitation. During the period (the “Restricted Period”)
beginning on the Effective Date and ending on the later of (x) the second anniversary of the date
of cessation of the employment of Executive for any reason whatsoever and (y) the termination of
the Severance Period, Executive shall not, directly or indirectly, without the prior written
approval of the Company, solicit or contact any customer, or any prospective customer (with whom
Executive had material contact during his employment by the Company) of the Company or any of the
Affiliates for any commercial pursuit which is in competition with the Company or any of the
Affiliates or take away or interfere or attempt to interfere with any custom, trade, business or
patronage of the Company or any of the Affiliates. During the Restricted Period, Executive shall
not, directly or indirectly, without the prior written approval of the Company, solicit or induce,
or attempt to induce, any employees, agents or consultants of or to the Company or any of the
Affiliates (or any person who was such an employee, agent or consultant within the preceding 12
months) to leave the employ of the Company or such Affiliate or do anything from which Executive is
restricted by reason of this Agreement nor shall Executive, directly or indirectly, offer or aid
others to offer employment to or interfere or attempt to interfere with any employees, agents or
consultants of the Company or any of the Affiliates (or any person who was such an employee, agent
or consultant within the preceding 12 months).




          6.3. Restrictions on Competitive Employment.




          (a) During the Restricted Period, Executive shall not, anywhere in the United States,
directly or indirectly, without the prior written approval of the Company, own an interest in or,
as principal, agent, employee, consultant or otherwise, engage in activities for or render services
to, any firm or business (i) engaged in direct competition with the Company or any of its
Affiliates, (ii) conducting a business of the type and character engaged in by the Company or any
of its Affiliates at the time of termination, (iii) developing products or services competitive
with those of the Company or any of its Affiliates or (iv) conducting any business in which the
Company or any of its Affiliates is then engaged if Executive has engaged in activities for such
business of the Company or such Affiliates or obtained Proprietary Information with respect thereto
(all of the businesses in clauses (i), (ii), (iii) and (iv) collectively, “Competitive Business”).
Notwithstanding the foregoing, (A) Executive may have an interest consisting of publicly traded
securities constituting less than 5 percent of any class of publicly traded securities in any
public company engaged in a Competitive Business so long as he is not employed by and does not
consult with, or become a director of or otherwise engage in any activities for, such company and
(B) in determining whether business is a Competitive Business, only the activities engaged in by
the Company at the time of termination of Executive’s employment shall be considered.




          (b) For purposes of the covenant not to compete set forth in paragraph (a) above,
Executive acknowledges that the Company and its Affiliates presently conduct their businesses
throughout the United States. Executive agrees that the Restricted Period and the geographical
areas encompassed by such covenant are necessary and reasonable in order to protect the




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Company and its Affiliates in the conduct of their businesses. The parties intend that the
foregoing covenant of Executive shall be construed as a series of separate covenants, one for each
geographic area specified. Except for geographic coverage, each such separate covenant shall be
deemed identical in terms to the covenant set forth in paragraph (a) above. To the extent that the
foregoing covenant or any provision of this Section 6.3 shall be deemed illegal or unenforceable by
a court or other tribunal of competent jurisdiction with respect to (i) any geographic area, (ii)
any part of the time period covered by such covenant, (iii) any activity or capacity covered by
such covenant or (iv) any other term or provision of such covenant, such determination shall not
affect such covenant with respect to any other geographic area, time period, activity or other term
or provision covered by or included in such covenant.




          6.4. Assignment of Developments. All Developments that are at any time made,
conceived or suggested by Executive, whether acting alone or in conjunction with others, arising
out of or as a result of Executive’s employment with the Company shall be the sole and absolute
property of the Company and its Affiliates, free of any reserved or other rights of any kind on
Executive’s part. During Executive’s employment and, if such Developments were made, conceived or
suggested by Executive during or as a result of Executive’s employment under this Agreement or any
other employment with the Company or the Affiliates, thereafter, Executive shall promptly make full
disclosure of any such Developments to the Company, and, at the Company’s cost and expense, do all
acts and things (including, among others, the execution and delivery under oath of patent and
copyright applications and instruments of assignment) deemed by the Company to be necessary or
desirable at any time in order to effect the full assignment to the Company of Executive’s right
and title, if any, to such Developments. For purposes of this Agreement, the term “Developments”
shall mean all data, discoveries, findings, reports, designs, inventions, improvements, methods,
practices, techniques, developments, programs, concepts, and ideas, whether or not patentable,
relating to the present or planned activities, or future activities, or the products and services
of the Company or any of the Affiliates.




          6.5. Remedies. Executive acknowledges and agrees that damages for a breach or
threatened breach of any of the covenants set forth in this Section 6 will be difficult to
determine and will not afford a full and adequate remedy, and therefore agrees that the Company, in
addition to seeking actual damages in connection therewith and the termination of the Company’s
obligations in Sections 5.2, 5.3 or 5.5, may seek specific enforcement of any such covenant in any
court of competent jurisdiction, including, without limitation, by the issuance of a temporary or
permanent injunction.




          7. Notices.




          Any notice or communication given by either party hereto to the other shall be in writing and
personally delivered or mailed by registered or certified mail, return receipt requested, postage
prepaid, to the following addresses:





	 	(a)	 	if to the Company:




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Emdeon Corporation

Center 2

669 River Drive

Elmwood Park, New Jersey

Attention: Chief Executive Officer





	 	(b)	 	if to Executive at the address specified in the Company’s payroll records.





     Any notice shall be deemed given when actually delivered to such address, or three days after
such notice has been mailed or sent by Federal Express, whichever comes earliest. Any person
entitled to receive notice may designate in writing, by notice to the other, such other address to
which notices to such person shall thereafter be sent.



          8. Certain Additional Payments By The Company.




          8.1 Gross-Up Payment. Anything in this Agreement to the contrary or any
termination of this Agreement notwithstanding, in the event it shall be determined that any payment
or distribution or benefit received or to be received by Executive pursuant to the terms of this
Agreement or any other payment or distribution or benefit made or provided by the Company or any of
its Affiliates, to or for the benefit of Executive (whether pursuant to this Agreement or otherwise
and determined without regard to whether any additional payments required under this Section 8) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the United States Internal
Revenue Code (the “Code”), or any interest or penalties are incurred by Executive with respect to
such excise tax (such excise tax, together with any such interest and penalties, is hereinafter
collectively referred to as the “Excise Tax”), then Executive shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive of all
taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income and employment taxes (and any interest and penalties imposed with respect
thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the
product of any deductions actually disallowed under Section 68 of the Code solely as a direct
result of the inclusion of the Gross-Up Payment in the Executive’s adjusted gross income and the
highest applicable marginal rate of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made. For purposes of determining the amount of the Gross-Up Payment, the
Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal
income taxation for the calendar year in which the Gross-Up Payment is to be made and (ii) pay
applicable state and local income taxes at the highest marginal rate of taxation for the calendar
year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.




          8.2 Gross-Up Payment Calculation. Subject to the provisions of Sections 8.1 and
8.3, all determinations required to be made under this Section 8, including whether and when a
Gross-Up Payment is required and the amount of such Gross-Up Payment and the assumptions to be
utilized in arriving at such determination, shall be made by the Company’s certified public




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accounting firm (the “Accounting Firm”), which shall provide detailed supporting calculations both
to the Company and Executive within 15 business days of the receipt of notice from Executive or the
Company that there has been a Payment, or such earlier time as is requested by the Company. All
fees and expenses of the Accounting Firm shall be borne solely by the Company. Any Gross-Up
Payment, as determined pursuant to this Section 8, shall be paid by the Company to Executive within
five days of the receipt of the Accounting Firm’s determination. Any determination by the
Accounting Firm shall be binding upon the Company and Executive. As a result of the uncertainty in
the application of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not have been made by
the Company should have been made (“Underpayment”), consistent with the calculations required to be
made hereunder. In the event that the Company exhausts its remedies pursuant to Section 8.3 and
Executive thereafter is required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of Executive.




          8.3 Claim by the IRS. Executive shall notify the Company in writing of any claim
by the U.S. Internal Revenue Service (the “IRS”) that, if successful, would require the payment by
the Company of the Gross-Up Payment. Such notification shall be given as soon as practicable but no
later than ten business days after Executive is informed in writing of such claim and shall apprise
the Company of the nature of such claim and the date on which such claim is requested to be paid.
Executive shall not pay such claim prior to the expiration of the 30-day period following the date
on which Executive gives such notice to the Company (or such shorter period ending on the date that
any payment of taxes with respect to such claim is due). If the Company notifies Executive in
writing prior to the expiration of such period that it desires to contest such claim, Executive
shall:




          (i) give the Company any information reasonably requested by the Company relating to such
claim;




          (ii) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company; and




          (iii) cooperate with the Company in good faith in order effectively to contest such claim;



provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise Tax or income and employment tax
(including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limitation on the foregoing provisions of this Section
8.3, the Company shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and




13









 







may, at its sole option, either direct Executive to pay the tax claimed and sue for a refund or
contest the claim in any permissible manner, and Executive shall agree to prosecute such contest to
a determination before any administrative tribunal, in a court of initial jurisdiction and in one
or more appellate courts, as the Company shall determine; provided, however, that if the Company
directs Executive to pay such claim and sue for a refund, the Company shall, to the extent
permitted under applicable law, advance the amount of such payment to Executive, on an
interest-free basis and shall indemnify and hold Executive harmless, on an after-tax basis, from
any Excise Tax or income and employment tax (including interest or penalties with respect thereto)
imposed with respect to such advance or with respect to any imputed income with respect to such
advance; and provided further, that any extension of the statute of limitations relating to payment
of taxes for the taxable year of Executive with respect to which such contested amount is claimed
to be due is limited solely to such contested amount. Furthermore, the Company’s control of the
contest shall be limited to issues with respect to which a Gross-Up Payment would be payable
hereunder and Executive shall be entitled to settle or contest, as the case may be, any other issue
raised by the IRS or any other taxing authority.




          8.4 Entitlement to Refund. If, after the receipt by Executive of an amount
advanced by the Company pursuant to Section 8.3, Executive becomes entitled to receive any refund
with respect to such claim, Executive shall (subject to the Company’s complying with the
requirements of Section 8.3) promptly pay to the Company the amount of such refund (together with
any interest paid or credited thereon after taxes applicable thereto). If, after the receipt by
Executive of an amount advanced by the Company pursuant to Section 8.3, a determination is made
that Executive shall not be entitled to any refund with respect to such claim and the Company does
not notify Executive in writing of its intent to contest such denial of refund prior to the
expiration of 30 days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the extent thereof, the
amount of Gross-Up Payment required to be paid.




          9. Miscellaneous.




          9.1. Entire Agreement. This Agreement and the Company Equity Plans and Agreements
and the WebMD Health Stock Option Agreement and WebMD Health Plan contain the entire understanding
of the parties in respect of their subject matter. This Agreement supersedes upon its
effectiveness all other prior agreements and understandings between the parties with respect to
such subject matter (including, without limitation, the Original Employment Agreement).




          9.2 Amendment; Waiver. This Agreement may not be amended, supplemented, canceled
or discharged, except by written instrument executed by the party against whom enforcement is
sought. No failure to exercise, and no delay in exercising, any right, power or privilege hereunder
shall operate as a waiver thereof. No waiver of any breach of any provision of this Agreement shall
be deemed to be a waiver of any preceding or succeeding breach of the same or any other provision.




          9.3. Binding Effect; Assignment. The rights and obligations of this Agreement
shall bind and inure to the benefit of any successor of the Company by reorganization, merger or




14









 







consolidation, or any assignee of all or substantially all of the Company’s business and
properties. The Company may assign its rights and obligations under this Agreement to any of its
Affiliates without the consent of Executive so long as the Company remains responsible for the
payment of the obligations hereunder. Executive’s rights or obligations under this Agreement may
not be assigned by Executive, except that the rights specified in Section 5.2 shall pass upon
Executive’s death to Executive’s executor or administrator.




          9.4. Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect the meaning or interpretation of this Agreement.




          9.5. Governing Law; Interpretation; Jurisdiction; Legal Fees. This Agreement shall
be construed in accordance with and governed for all purposes by the laws and public policy (other
than conflict of laws principles) of the State of New Jersey applicable to contracts executed and
to be wholly performed within such State and the courts sitting in Bergen County, New Jersey shall
have exclusive jurisdiction of the Company and Executive for the purposes of adjudicating any
disputes under this Agreement. Executive and the Company hereby consent to personal jurisdiction
and venue in the courts of Bergen County, New Jersey and hereby waive any claim or defense that the
party lacks minimum contacts with the forum, that the courts of the State of New Jersey lack
personal jurisdiction of the parties, or that the courts of the State of New Jersey are an improper
or inconvenient venue. The Company agrees that if an action is commenced by the Company or
Executive hereunder and the Executive prevails or such action is settled by the parties, the
Company shall reimburse Executive for his reasonable legal fees in connection with such action.




          9.6. Further Assurances. Each of the parties agrees to execute, acknowledge,
deliver and perform, and cause to be executed, acknowledged, delivered and performed, at any time
and from time to time, as the case may be, all such further acts, deeds, assignments, transfers,
conveyances, powers of attorney and assurances as may be reasonably necessary to carry out the
provisions or intent of this Agreement.




          9.7. Severability. The parties have carefully reviewed the provisions of this
Agreement and agree that they are fair and equitable. However, in light of the possibility of
differing interpretations of law and changes in circumstances, the parties agree that if any one or
more of the provisions of this Agreement shall be determined by a court of competent jurisdiction
to be invalid, void or unenforceable, the remainder of the provisions of this Agreement shall, to
the extent permitted by law, remain in full force and effect and shall in no way be affected,
impaired or invalidated. Moreover, if any of the provisions contained in this Agreement are
determined by a court of competent jurisdiction to be excessively broad as to duration, activity,
geographic application or subject, it shall be construed, by limiting or reducing it to the extent
legally permitted, so as to be enforceable to the extent compatible with then applicable law.




          9.8.  Withholding Taxes. All payments hereunder shall be subject to any and all
applicable federal, state, local and foreign withholding taxes.




          9.9. Term. Notwithstanding the term of the Employment Period as determined




15









 







pursuant to Section 3 hereof, each obligation of the Company and the Executive, as the case may be,
that arose during or as a result of the termination of the Employment Period, including, without
limitation, pursuant to Sections 2, 5, 6 and 8 hereof, shall survive the termination of the
Employment Period until such obligation is fulfilled in its entirety pursuant to the terms hereof.




          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.




	 	 	 	 	 	 	 
	 	 	EMDEON CORPORATION	 	 
	 
	 	 	 	 	 	 
	 	 	   /s/ Andrew C. Corbin	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Andrew C. Corbin	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 

	 	 	 	and Chief Financial Officer	 	 






	 	 	 	 	 
	 

	 	EXECUTIVE
	 	 
	 
	 	 	 	 
	 

	 	   /s/ Charles A. Mele	 	 
	 

	 	 	 	 
	 

	 	Charles A. Mele	 	 






Accepted and Agreed

with respect to the provisions regarding the WebMD Health Option:




WEBMD HEALTH CORP. (with respect to the

provisions related to the WebMD Health Option)




	 	 	 	 	 	 	 
	   /s/ Anthony Vuolo	 	 	 	 
	 	 	 	 	 
	Name:

	 	Anthony Vuolo	 	 	 	 
	Title:

	 	Executive Vice President and	 	 	 	 
	 

	 	Chief Financial Officer	 	 	 	 







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