Document:

EX-10.18

 

Exhibit 10.18

Conformed Copy

WebMD Health Holdings, Inc.

111 Eighth Avenue

New York, NY 10001

July 14, 2005

Craig Froude

c/o WebMD Health Holdings, Inc.

520 NW Davis Suite 300

Portland, OR 972090

Dear Craig:

     This letter confirms the terms of your employment with WebMD Health Holdings, Inc. (the
“Company” or “WebMD Health”), a subsidiary of WebMD Corporation, and amends and supersedes in its
entirety the Employment Agreement dated September 18, 2002 between you and WebMD, Inc. (the “Prior
Agreement”).

     1. Position and Responsibilities. As of the Effective Date (as defined below), you
will serve in the position of Executive Vice President- Health Services of WebMD Health. You will
report to the CEO of WebMD Health or such other executive officer as the Company may designate and
will assume and discharge such responsibilities as are commensurate with such position as such
person may direct. During your employment with the Company, you will devote your full business
time to your duties and responsibilities and will perform them faithfully and diligently in
accordance with the terms of this Agreement, subject to permitted absence in accordance with the
Company’s vacation policy. In addition, you will comply with and be bound by the operating
policies, procedures and practices of the Company including, without limitation, the Code of
Conduct, in effect from time to time during your employment. You will be required to report to the
Company’s office located in Portland, Oregon. You acknowledge that you will be required to travel
in connection with the performance of your duties but you will not be required to relocate outside
the Portland metropolitan area without your consent.

     2. Compensation.

     (a) In consideration of your services, you will be paid a base salary (“Base Salary”) at the
annual rate of $275,000, payable in accordance with the Company’s prevailing payroll practices.

     (b) You will be eligible to receive an annual bonus, the target of which is 35% of Base
Salary, so long as you are employed by the Company on the applicable payment date, except as set
forth below. The determination as to the amount of such bonus shall be made by the WebMD Health
Compensation Committee (as defined in Section 5(a) below) in its sole discretion. Subject to
Section 6 below, if your employment is terminated following the end of any fiscal year by the
Company without Cause or by you for Good Reason (as defined below),

 

 

then you will still be entitled to receive any bonus otherwise payable to you for such year,
even if you are not employed on the bonus payment date and such bonus will be paid at the time that
bonuses are paid to other executives of the Company.

     3. Other Benefits. You will continue to be entitled to receive the standard employee
benefits made available by the Company to its employees to the full extent of your eligibility.
You will be entitled to vacation consistent with the Company’s vacation policy. During your
employment, you will be permitted, to the extent eligible, to participate in any group medical,
dental, life insurance and disability insurance plans, or similar benefit plan of the Company that
is available to employees generally. Participation in any such plan will be consistent with your
rate of compensation to the extent that compensation is a determinative factor with respect to
coverage under any such plan. The Company will reimburse you for all reasonable expenses actually
incurred or paid by you in the performance of your services on behalf of the Company, upon prior
authorization and approval in accordance with the Company’s expense reimbursement policy as from
time to time in effect.

4. WebMD Corporation Equity Grants.

	 	(a)	 	The options to purchase WebMD Corporation common stock and the shares of
restricted stock of WebMD Corporation previously granted to you will remain outstanding
in accordance with the terms of the applicable Stock Plan and the award agreement.
	 
	 	(b)	 	For the avoidance of doubt, in the event there is a transaction which results
in WebMD Health no longer being a Subsidiary (as defined in the applicable Stock Plan)
of WebMD Corporation (e.g., a complete spinoff of WebMD Health), the options to
purchase WebMD Corporation common stock, to the extent not vested, would be forfeited
and the vested portion of such options will remain outstanding for the post termination
exercise period specified in the applicable option agreement. The restricted stock of
WebMD Corporation would, to the extent not vested, be forfeited.

     5. WebMD Health Equity. As you are aware, the Company has filed a Form S-1
Registration Statement which contemplates a transaction whereby a portion of the securities of
WebMD Health would be registered pursuant to the Securities Act of 1933 and be publicly traded (the
“Offering”). Although there can be no assurance that the Offering will occur, we are working
diligently towards that goal.

	 	(a)	 	In the event of the consummation of the Offering, the Company will recommend to
the Compensation Committee of the Board of Directors of the Company (the “WebMD
Health Compensation Committee”) that you be granted a nonqualified option (the
“New Stock Option”) to purchase 200,000 shares of the Company’s common stock.
The New Stock Option grant assumes a capitalization of 100 million shares outstanding
(on a fully diluted basis) upon the consummation of the Offering. The number of shares
corresponding to the New Stock Option will be adjusted proportionately upward or
downward in the event the capitalization of the Company upon the consummation of the
Offering is greater or less than the

 

 

	 	 	 	100 million shares assumed above. The New Stock Option will be at an exercise price
equal to the fair market value of the Company’s common stock (as determined by the
WebMD Health Compensation Committee) on the Effective Date determined in the same
manner and at the same price as granted to other senior executives of the Company.
The New Stock Option will be granted pursuant to the terms of a stock option plan
and a stock option agreement to be entered into between you and the Company, which
agreement will be in substantially the same form provided by the Company to its
employees generally. The New Stock Option will vest and become exercisable, subject
to your continued employment with the Company on such dates (except as provided in
Section 6 below) in accordance with the following schedule: 25% will vest on the
first anniversary of the Effective Date and 25% will vest on each of the subsequent
three anniversaries of the Effective Date.
	 
	 	(b)	 	In the event of the consummation of the Offering, the Company will recommend to
the WebMD Health Compensation Committee that Executive be granted 50,000 shares of
restricted stock of the Company on the Effective Date (the “New Restricted Stock”),
subject to proportionate adjustment in the number of New Restricted Stock as provided
in Section 5(a) above. The New Restricted Stock will vest and the restrictions thereon
lapse in equal annual installments over four years, commencing on the first anniversary
of the date of grant subject to your continued employment on the applicable dates. The
Restricted Stock will be subject to the terms of a stock plan and a restricted stock
agreement to be entered into between you and the Company, which agreement will be in
substantially the same form provided by the Company to its employees generally.

     6. Termination of Employment. In the event of the termination of your employment by
the Company without Cause or by you for Good Reason (as such terms are defined on Annex A attached
hereto) prior- to the fourth anniversary of the Effective Date, you will be entitled to
(i) continue to receive, as severance, the Base Salary in effect on the date hereof for a period of
one year (the “Severance Period”), (ii) any bonus payable under the last sentence in Section 2(b)
above, (iii) if you timely elect to continue your health coverage through COBRA, the Company will
pay that portion of the COBRA premium that it would pay if you were an active employee with the
same type of coverage through the Severance Period or, if earlier, until you are eligible for
comparable coverage with a subsequent employer and (iv) if unvested at the time of termination that
portion of the restricted shares of WebMD Corporation granted in October 2002 that would vest on
the next vesting date following the date of termination will vest on such date, subject to your
execution of a release satisfactory to the Company (but which will not require release of any
Company payments due to you that are otherwise payable at the date of termination of this
Agreement) and your continued compliance with the Trade Secret & Proprietary Information Agreement.
In addition, in the event of the termination of your employment by the Company without Cause or by
you for Good Reason prior to the fourth anniversary of the Effective Date, 25% of the New Stock
Option (if granted) will continue to vest and remain outstanding as if you remained in the employ
of the Company through the vesting date following the date of termination, subject to your
execution of a release satisfactory to the Company and your continued compliance with the Trade
Secret & Proprietary Information Agreement. In the event of termination of your employment for any
other reason, you will

 

 

receive compensation earned through the date of termination and your rights with respect to
options and restricted stock will be as specified in the applicable option or restricted stock
agreements.

     7. Restrictive Covenants. You agree that the effectiveness of this Agreement is
contingent upon your execution of, and delivery to the Company of Trade Secret & Proprietary
Information Agreement in the form attached hereto as Annex B.

     8. Conflicting Employment. You agree that, during your employment with the Company,
you will not engage in any other employment, occupation, consulting or other business activity
directly related to the business in which the Company is now involved or becomes involved during
your employment, nor will you engage in any other activities that conflict with your obligations to
the Company. With the prior written approval of the Company, which will not be unreasonably
withheld, you may serve on the Board of Directors of other companies, and provided that such
service does not affect the services to be provided under this Agreement.

     9. At-Will Employment. You acknowledge that your employment with the Company is for an
unspecified duration that constitutes at-will employment, and that either you or the Company can
terminate this relationship at any time, with or without Cause and with or without notice (subject
to the consequences set forth in this agreement).

     10. Effective Date. This Agreement will become effective as of the effectiveness of
the Offering (the “Effective Date”). In the event that the Offering does not occur, this
Agreement will be null and void and will have no force and effect, including, without limitation,
the obligations under Section 5.

     11. General Provisions.

	 	(a)	 	You will be covered by the Company’s director and officer insurance policy to
the same extent as other similarly situated employees of the Company.
	 
	 	(b)	 	This letter agreement and the terms of your employment will be governed by the
laws of Oregon, applicable to agreements made and to be performed entirely within such
state and the courts sitting in Portland, Oregon shall have exclusive jurisdiction for
the purposes of adjudicating any disputes under this Agreement.
	 
	 	(c)	 	This letter agreement together with the equity plans and agreements referred to
herein and the Trade Secret and Proprietary Agreement attached hereto sets forth the
entire agreement and understanding between the Company and you relating to your
employment and supersedes all prior verbal discussions between us and the Prior
Agreements.
	 
	 	(d)	 	This agreement will be binding upon your heirs, executors, administrators and
other legal representatives and will be for the benefit of the Company and its
permitted successors and assigns

 

 

	 	(e)	 	All payments pursuant to this letter will be subject to applicable withholding
taxes.
	 
	 	(f)	 	This agreement may not be assigned by the Company without your prior written
consent; provided however that this agreement may be assigned by the Company without
your prior written consent to any successor to the business of the Company, by
operation of law, merger or otherwise or to any affiliate of the Company.

     Please acknowledge and confirm your acceptance of this letter by, signing and returning one
copy of this letter agreement and the Trade Secret & Proprietary Information Agreement to Douglas
W. Wamsley, Executive Vice President, General Counsel, WebMD Health Holdings, Inc., 111 Eighth
Avenue, New York, NY.

	 	 	 	 	 
	WebMD Health Holdings, Inc.

	 	 
	 
	 	 	 	 
	By
	 	     /s/
Douglas W. Wamsley	 	 
	 

	 	
	 	 

ACCEPTANCE:

     I accept the revised terms of my employment with WebMD Health Holdings, Inc. as set forth
herein. I understand that this letter agreement does not constitute a contract of employment for
any specified period of time, and that either party, with or without Cause and with or without
notice, may terminate my employment relationship (subject to the consequences set forth above).

	 	 	 
	     /s/ Craig
Froude 

	 	 
	Craig Froude

	 	 
	 
	 	 
	8/19/05 

	 	 
	Date Signed
	 	 

 

 

ANNEX A

“Cause” will mean any of the following:

     (i) your willful failure to perform your duties following written notice from the Company
detailing the specific acts and a thirty (30) day period of time to remedy such failure;

     (ii) any willful misconduct, violence or threat of violence that is injurious to the Company
in a material respect or any misconduct relating to your business affairs, at any time, which will
demonstrably reflect negatively upon the Company or otherwise impair or impede its operations or
reputation in any material respect;

     (iii) your breach of a material Company policy, which breach is not remedied (if susceptible
to remedy) following written notice by the Company detailing the specific breach and a thirty (30)
day period of time to remedy such breach;

     (iv) any material breach by you of this Agreement or the Trade Secret and Proprietary
Information Agreement, which breach is not remedied (if susceptible to remedy) following written
notice by the Company or its designee detailing the specific breach and a thirty (30) day period of
time to remedy such breach;

     (v) your conviction of a felony in respect of a dishonest or fraudulent act or other crime of
moral turpitude.

     “Good Reason” means any of the following conditions or events that remain in effect 30
days after written notice is provided by you to the Company detailing such condition or event (i)
any reduction in your base salary, (ii) a material reduction in your authority with the Company,
and (iii) any material breach by the Company of this Agreement.

 

 

ANNEX B

TRADE SECRET AND PROPRIETARY INFORMATION AGREEMENT

     In consideration of WebMD Health Holdings, Inc. (hereinafter referred to as the “Company”)
entering into the Letter Agreement dated July —, 2005, I hereby agree as follows:

     1. Confidentiality.

               (a) Trade Secret and Proprietary Information. I understand and acknowledge that,
during the course of my employment arrangement with the Company and as a result of my having
executed this Trade Secret and Proprietary Information Agreement, I will be granted access to
valuable information relating to the Company’s Business (as defined below) that provides the
Company with a competitive advantage, which is not generally known by, nor easily learned or
determined by, persons outside the Company (collectively “Trade Secret an Proprietary
Information”). The term Trade Secret and Proprietary Information will include, but will not be
limited to: (a) specifications, manuals, software in various stages of development; (b) customer
and prospect lists, and details of agreements and communications with customers and prospects; (c)
sales plans and projections, product pricing information, acquisition, expansion, marketing,
financial and other business information and existing and future products and business plans of the
Company; (d) sales proposals, demonstrations systems, sales material; (e) research and development;
(f) computer programs, (g) sources of supply; (h) identity of specialized consultants and
contractors and Trade Secret and Proprietary Information developed by them for the Company; (i)
purchasing, operating and other cost data; (j) special customer needs, cost and pricing data; (k)
patient information; including without limitation Protected Health Information as defined in 45
C.F.R. 164.501 and (l) employee information (including, but not limited to, personnel, payroll,
compensation and benefit data and plans), including all such information recorded in manuals,
memoranda, projections, reports, minutes, plans, drawings, sketches, designs, formula books, data,
specifications, software programs and records, whether or not legended or otherwise identified by
the Company as Trade Secret and Proprietary Information, as well as such information that is the
subject of meetings and discussions and not recorded. Trade Secret and Proprietary Information
will not include such information that I can demonstrate (i) is generally available to the public
(other than as a result of a disclosure by me), (ii) was disclosed to me by a third party under no
obligation to keep such information confidential or (iii) was known by me prior to, and not as a
result of, my employment or anticipated employment with the Company or any of its Affiliates.

               (b) Duty of Confidentiality. I agree at all times, both during and after my employment
with the Company, to hold all of the Company’s Trade Secret and Proprietary Information in a
fiduciary capacity for the benefit of the Company and to safeguard all such Trade Secret and
Proprietary Information. I also agree that I will not directly or indirectly disclose or use any
such Trade Secret and Proprietary Information to any third person or entity outside the Company,
except as may be necessary in the good faith performance of my duties for the Company. I further
agree that, in addition to enforcing this restriction, the Company may have other rights and
remedies under the common law or applicable statutory laws relating to the protection of trade
secrets. Notwithstanding anything in this Agreement to the contrary, I

 

 

understand that I may disclose the Company’s Trade Secret and Proprietary Information to the
extent required by applicable laws or governmental regulations or judicial or regulatory process,
provided that I give the Company prompt notice of any and all such requests for disclosure so that
it has ample opportunity to take all necessary or desired action, to avoid disclosure.

     (c) Unfair Competition. I acknowledge that the Company has a compelling business
interest in preventing unfair competition stemming from the intentional or inadvertent use or
disclosure of the Company’s Trade Secret and Proprietary Information and Company Property.

     (d) Intellectual Property and Inventions. I acknowledge that all developments,
including, without limitation, the creation of new products, conferences, training/seminars,
publications, programs, methods of organizing information, inventions, discoveries, concepts,
ideas, improvements, patents, trademarks, trade names, copyrights, trade secrets, designs, works,
reports, computer software, flow charts, diagrams, procedures, data, documentation, and writings
and applications thereof relating to the past, present, or future business of the Company that I,
alone or jointly with others, may have discovered, conceived, created, made, developed, reduced to
practice, or acquired during my employment with the Company (collectively, “Developments”) are
works made for hire and will remain the sole and exclusive property of the Company, and I hereby
assign to the Company all of my rights, titles, and interest in and to all such Developments, if
any. I agree to disclose to the Company promptly and fully all future Developments and, at any time
upon request and at the expense of the Company, to execute, acknowledge, and deliver to the Company
all instruments that the Company will prepare, to give evidence, and to take any and all other
actions that are necessary or desirable in the reasonable opinion of the Company to enable the
Company to file and prosecute applications for, and to acquire, maintain, and enforce, all letters
patent, trademark registrations, or copyrights covering the Developments in all countries in which
the same are deemed necessary by the Company. All data, memoranda, notes, lists, drawings,
records, files, investor and client/customer lists, supplier lists, and other documentation (and
all copies thereof) made or compiled by me or made available to me concerning the Developments or
otherwise concerning the past, present, or planned business of the Company are the property of the
Company, and will be delivered to the Company immediately upon the termination of my employment
with the Company.

     (e) Competitive Business. For purposes of this Agreement “Competitive Business” will
mean: (i) any enterprise engaged in developing, selling or providing a consumer or physician
Internet healthcare portal or interactive online personal health management products; and (ii) any
enterprise engaged in any other type of business in which the Company or one of its Affiliates is
also engaged, or plans to be engaged, so long as I am directly involved in such business or planned
business on behalf of the Company or one of its Affiliates.

     2. Non-Solicitation of Employees, Customers. In order to protect the Company’s Trade
Secret and Proprietary Information;

     (i) during my employment with the Company and for a period of one year after the termination
of such employment for any reason (the “Restricted Period”), I will not, without the Company’s
express written permission, directly or indirectly solicit, induce, hire, engage, or attempt to
hire or engage any employee or independent contractor of the Company, or in any other way interfere
with the Company’s employment or contractual relations with any of its

 

 

employees or independent contractors, nor will I solicit, induce, hire, engage or attempt to
hire or engage any individual who was an employee of the Company at any time during the one year
period immediately prior to the termination of my employment with the Company

     (ii) during the Restricted Period, I will not, without the Company’s express written
permission, directly or indirectly contact, call upon or solicit, on behalf of a Competitive
Business, any existing or prospective client, or customer of the Company who I serviced, or
otherwise developed a relationship with, as a result of my employment with the Company, nor will I
attempt to divert or take away from the Company the business of any such client or customer.

     3. Restrictions on Competitive Employment. In order to protect the Company’s Trade
Secret and Proprietary Information, during the Restricted Period, I will not (as principal, agent,
employee, consultant, director or otherwise), anywhere in the United States and Canada, directly or
indirectly, without the prior written approval of the Company, engage in, or perform any services
for, a Competitive Business. Notwithstanding the foregoing, I understand that I may have an
interest consisting of publicly traded securities constituting less than 1 percent of any class of
publicly traded securities in any public company engaged in a Competitive Business so long as I am
not employed by and do not consult with, or become a director of or otherwise engage in any
activities for, such company. The Restricted Period will be extended by the length of any period
during which I am in breach of the terms of this paragraph.

     4. Injunctive Remedies. I acknowledge and agree that the restrictions contained in
this Agreement are reasonably necessary to protect the legitimate business interests of the
Company, and that any violation of any of the restrictions will result in immediate and irreparable
injury to the Company for which monetary damages will not be an adequate remedy. I further
acknowledge and agree that if any such restriction is violated, the Company will be entitled to
immediate relief enjoining such violation (including, without limitation, temporary and permanent
injunctions, a decree for specific performance, and an equitable accounting of earnings, profits,
and other benefits arising from such violation) in any court having jurisdiction over such claim,
without the necessity of showing any actual damage or posting any bond or furnishing any other
security, and that the specific enforcement of the provisions of this Agreement will not diminish
my ability to earn a livelihood or create or impose upon me any undue hardship. I also agree that
any request for such relief by the Company will be in addition to, and without prejudice to, any
claim for monetary damages that the Company may elect to assert.

     5. Severability Provision. I acknowledge and agree that the restrictions imposed upon
me by the terms, conditions, and provisions of this Agreement are fair, reasonable, and reasonably
required for the protection of the Company. In the event that any part of this Agreement is deemed
invalid, illegal, or unenforceable, all other terms, conditions, and provisions of this Agreement
will nevertheless remain in full force and effect. In the event that the provisions of any of
Sections l, 2, or 3 of this Agreement relating to the geographic area of restriction, the length of
restriction or the scope of restriction will be deemed to exceed the maximum area, length or scope
that a court of competent jurisdiction would deem enforceable, said area, length or scope will, for
purposes of this Agreement, be deemed to be the maximum area, length of time or scope that such
court would deem valid and enforceable, and that such

 

 

court has the authority under this Agreement to rewrite (or “blue-pencil”) the restriction(s)
at-issue to achieve this intent.

     6. Non-Waiver. Any waiver by the Company of my breach of any term, condition, or
provision of this Agreement will not operate or be construed as a waiver of the Company’s rights
upon any subsequent breach.

     7. Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, I HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION
ARISING OUT OF, UNDER, IN CONNECTION WITH, OR IN ANY WAY RELATED TO THIS AGREEMENT. THIS INCLUDES,
WITHOUT LIMITATION, ANY LITIGATION CONCERNING ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT
(WHETHER VERBAL OR WRITTEN), OR ACTION OF THE COMPANY OR ME, OR ANY EXERCISE BY THE COMPANY OR ME
OF OUR RESPECTIVE RIGHTS UNDER THIS AGREEMENT OR IN ANY WAY RELATING TO THIS AGREEMENT. I FURTHER
ACKNOWLEDGE THAT THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE COMPANY TO ISSUE AND ACCEPT THIS
AGREEMENT.

     8. Continuation of Employment. This Agreement does not constitute a contract of
employment or an implied promise to continue my employment or status with the Company; nor does
this agreement affect my rights or the rights of the Company to terminate my employment status at
any time with or without cause (subject to the consequences set forth in the Agreement to which
this Annex is attached).

     9. Governing Law. This Agreement will be construed in accordance with and governed
for all purposes by the laws and public policy of the State of New York, without regard to
principles of conflict of laws.

	 	 	 
	     /s/
Craig Froude

	 	 
	

	 	 
	Craig Froude

	 	 
	 
	 	 
	     /s/
Douglas W. Wamsley 

	 	 
	Witness
	 	 
	 
	 	 
	     8/19/05 

	 	 
	Date
	 	 

	 	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	111 Eighth Ave, NY, NY, 10011EX-10.27

 

Exhibit 10.27

FORM OF WEBMD HEALTH CORP.

2005 LONG-TERM INCENTIVE PLAN*

ARTICLE 1

PURPOSE

     1.1 GENERAL. The purpose of the WebMD Health Corp. 2005 Long-Term Incentive Plan (the
“Plan”) is to promote the success, and enhance the value, of WebMD Health Corp., a Delaware
Corporation (the “Corporation”), by linking the personal interests of its employees, officers,
directors and consultants to those of Corporation shareholders and by providing such persons with
an incentive for outstanding performance. The Plan is further intended to provide flexibility to
the Corporation in its ability to motivate, attract and retain the services of employees, officers,
directors and consultants upon whose judgment, interest and special effort the successful conduct
of the Corporation’s operation is largely dependent. Accordingly, the Plan permits the grant of
incentive awards from time to time to selected employees and officers, directors and consultants.

ARTICLE 2

EFFECTIVE DATE

     2.1 EFFECTIVE DATE. The Plan shall be effective as of the date upon which it shall be
approved by the Board and the shareholders of the Corporation (the “Effective Date”). In the
discretion of the Committee, Awards may be made to Covered Employees which are intended to
constitute qualified performance-based compensation under Section 162(m) of the Code.

ARTICLE 3

DEFINITIONS

     3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial letter
capitalized, and the word or phrase does not commence a sentence and is not otherwise defined in
the Plan, the word or phrase shall generally be given the meaning ascribed to it in this Section.
The following words and phrases shall have the following meanings:

               (a) “1933 Act” means the Securities Act of 1933, as amended from time to time.

               (b) “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

               (c) “Affiliate” means any Parent or Subsidiary and any person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, the Corporation.

 

			
	*	 	Subject to completion.

 

 

               (d) “Award” means any Option, Stock Appreciation Right, Restricted Stock Award,
Performance Share Award, Dividend Equivalent Award or Other Stock-Based Award, or any other
right or interest relating to Stock or cash, granted to a Participant under the Plan.

               (e) “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Award.

               (f) “Board” means the Board of Directors of the Corporation.

               (g) “Cause” as a reason for a Participant’s termination of employment or service shall
have the meaning assigned such term in the employment agreement, if any, between such
Participant and the Corporation or an affiliated company, provided, however,
that if there is no such employment agreement in which such term is defined, “Cause” shall
mean any of the following acts by the Participant, as determined by the Board: gross neglect
of duty, prolonged absence from duty without the consent of the Corporation, intentionally
engaging in any activity that is in conflict with or adverse to the business or other
interests of the Corporation, or willful misconduct, misfeasance or malfeasance of duty
which is reasonably determined to be detrimental to the Corporation.

               (h) “Change of Control” means and includes the occurrence of any one of the following
events:

               (i) individuals who, at the effective date of the Initial Public Offering,
constitute the Board (the “Incumbent Directors”) cease for any reason to constitute
at least a majority of the Board, provided that any person becoming a
director after the Effective Date and whose election or nomination for election was
approved by a vote of at least a majority of the Incumbent Directors then on the
Board (either by a specific vote or by approval of the proxy statement of the
Corporation in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of
the Corporation as a result of an actual or threatened election contest (as
described in Rule 14a-11 under the 1934 Act (“Election Contest”)) or other actual or
threatened solicitation of proxies or consents by or on behalf of any “person” (as
such term is defined in Section 3(a)(9) of the 1934 Act and as used in Section
13(d)(3) and 14(d)(2) of the 1934 Act) other than the Board (“Proxy Contest”),
including by reason of any agreement intended to avoid or settle any Election
Contest or Proxy Contest, shall be deemed an Incumbent Director;

               (ii) any person becomes a “beneficial owner” (as defined in Rule 13d-3 under
the 1934 Act), directly or indirectly, of securities of the Corporation representing
50% or more of the combined voting power of the Corporation’s then outstanding
securities eligible to vote for the election of the Board (the “Corporation Voting
Securities”); provided, however, that the event described in this
paragraph (ii) shall not be deemed to be a Change of Control of the Corporation by
virtue of any of the following acquisitions: (A) any acquisition by

2

 

a person who is on the Effective Date the beneficial owner of 50% or more of
the outstanding Corporation Voting Securities, (B) an acquisition by the Corporation
which reduces the number of Corporation Voting Securities outstanding and thereby
results in any person acquiring beneficial ownership of more than 50% of the
outstanding Corporation Voting Securities, provided that if after such
acquisition by the Corporation such person becomes the beneficial owner of
additional Corporation Voting Securities that increase the percentage of outstanding
Corporation Voting Securities beneficially owned by such person, a Change of Control
of the Corporation shall then occur, (C) an acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Corporation or any Parent or
Subsidiary, (D) an acquisition by an underwriter temporarily holding securities
pursuant to an offering of such securities or (E) an acquisition pursuant to a
Non-Qualifying Transaction (as defined in paragraph (iii)); or

               (iii) the consummation of a reorganization, merger, consolidation, statutory
share exchange or similar form of corporate transaction involving the Corporation
that requires the approval of the Corporation’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Reorganization”),
or the sale or other disposition of all or substantially all of the Corporation’s
assets to an entity that is not an affiliate of the Corporation (a “Sale”), unless
immediately following such Reorganization or Sale: (A) more than 50% of the total
voting power of (x) the corporation resulting from such Reorganization or the
corporation which has acquired all or substantially all of the assets of the
Corporation (in either case, the “Surviving Corporation”) or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial ownership of
100% of the voting securities eligible to elect directors of the Surviving
Corporation (the “Parent Corporation”), is represented by the Corporation Voting
Securities that were outstanding immediately prior to such Reorganization or Sale
(or, if applicable, is represented by shares into which such Corporation Voting
Securities were converted pursuant to such Reorganization or Sale), and such voting
power among the holders thereof is in substantially the same proportion as the
voting power of such Corporation Voting Securities among the holders thereof
immediately prior to the Reorganization or Sale, (B) no person (other than (x) the
Corporation, (y) any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Corporation or the Parent Corporation or (z) a person
who immediately prior to the Reorganization or Sale was the beneficial owner of 25%
or more of the outstanding Corporation Voting Securities) is the beneficial owner,
directly or indirectly, of 25% or more of the total voting power of the outstanding
voting securities eligible to elect directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) and (C) at least a
majority of the members of the board of directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Reorganization or Sale were Incumbent Directors at the time of
the Board’s approval of the execution of the initial agreement providing for such
Reorganization or Sale (any Reorganization

3

 

or Sale which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”);

provided, however, that in no event shall a Change of Control be deemed to
have occurred so long as WebMD Corporation directly or indirectly beneficially owns at least
50% of the voting power represented by the securities of the Corporation entitled to vote
generally in the election of the Corporation’s directors; and provided
further, however, that under no circumstances shall a split-off, spin-off,
stock dividend or similar transaction as a result of which the voting securities of the
Corporation are distributed to shareholders of WebMD Corporation or its successors constitute
a Change of Control.

     Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A
of the Code, and payment or settlement of such Award is to be accelerated in connection with
an event that would otherwise constitute a Change of Control, no event set forth in clause
(i), (ii) or (iii) will constitute a Change of Control for purposes of the Plan and any
Award Agreement unless such event also constitutes a “change in the ownership”, “change in
the effective control” or “change in the ownership of a substantial portion of the assets”
of the Corporation as defined under Section 409A of the Code and the Treasury guidance
promulgated thereunder.

     (i) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.

     (j) “Committee” means, subject to the last sentence of Section 4.1, the committee of
the Board described in Article 4.

     (k) “Covered Employee” means a covered employee as defined in Section 162(m)(3) of the
Code, provided that no employee shall be a Covered Employee until the deduction
limitations of Section 162(m) of the Code are applicable to the Corporation and any reliance
period under Treasury Regulation Section 1.162-27(f) has expired.

     (l) “Disability” shall mean any illness or other physical or mental condition of a
Participant that renders the Participant incapable of performing his customary and usual
duties for the Corporation, or any medically determinable illness or other physical or
mental condition resulting from a bodily injury, disease or mental disorder which, in either
case, has lasted or can reasonably be expected to last for at least 180 days out of a period
of 365 consecutive days. The Committee may require such medical or other evidence as it
deems necessary to judge the nature and permanency of the Participant’s condition.
Notwithstanding the above, (i) with respect to an Incentive Stock Option, Disability shall
mean Permanent and Total Disability as defined in Section 22(e)(3) of the Code and (ii) to
the extent an Award is subject to Section 409A of the Code, and payment or settlement of the
Award is to be accelerated solely as a result of the Participant’s Disability, Disability
shall have the meaning ascribed thereto under Section 409A of the Code and the Treasury
guidance promulgated thereunder.

     (m) “Dividend Equivalent” means a right granted to a Participant under Article 11.

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     (n) “Effective Date” has the meaning assigned such term in Section 2.1.

     (o) “Fair Market Value”, on any date, means (i) if the Stock is listed on a securities
exchange or is traded over the Nasdaq National Market, the closing sales price on such
exchange or over such system on such date or, in the absence of reported sales on such date,
the closing sales price on the immediately preceding date on which sales were reported or
(ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq National
Market, Fair Market Value will be determined by such other method as the Committee
determines in good faith to be reasonable. With respect to awards granted on the effective
date of the Corporation’s Initial Public Offering, Fair Market Value shall mean the price at
which the Stock is initially offered in the Initial Public Offering.

     (p) “Incentive Stock Option” means an Option that is intended to meet the requirements
of Section 422 of the Code or any successor provision thereto.

     (q) “Initial Public Offering” means the underwritten initial public offering of equity
securities of the Corporation pursuant to an effective registration statement under the 1933
Act.

     (r) “Non-Employee Director” means a member of the Board who is not an employee of the
Corporation or any Parent or Affiliate.

     (s) “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option.

     (t) “Option” means a right granted to a Participant under Article 7 to purchase Stock
at a specified price during specified time periods. An Option may be either an Incentive
Stock Option or a Non-Qualified Stock Option.

     (u) “Other Stock-Based Award” means a right, granted to a Participant under Article 12,
that relates to or is valued by reference to Stock or other Awards relating to Stock.

     (v) “Parent” means a corporation which owns or beneficially owns a majority of the
outstanding voting stock or voting power of the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Parent shall have the meaning set forth in
Section 424(e) of the Code.

     (w) “Participant” means a person who, as an employee, officer, consultant or director
of the Corporation or any Parent, Subsidiary or Affiliate, has been granted an Award under
the Plan.

     (x) “Performance Share” means a right granted to a Participant under Article 9, to
receive cash, Stock, or other Awards, the payment of which is contingent upon achieving
certain performance goals established by the Committee.

     (y) “Restricted Stock Award” means Stock granted to a Participant under Article 10 that
is subject to certain restrictions and to risk of forfeiture.

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     (z) “Stock” means the $.01 par value Class A common stock of the Corporation and such
other securities of the Corporation as may be substituted for Stock pursuant to Article 15.

     (aa) “Stock Appreciation Right” or “SAR” means a right granted to a Participant under
Article 8 to receive a payment equal to the difference between the Fair Market Value of a
share of Stock as of the date of exercise of the SAR over the grant price of the SAR, all as
determined pursuant to Article 8.

     (bb) “Subsidiary” means any corporation, limited liability company, partnership or
other entity of which a majority of the outstanding voting equity securities or voting power
is beneficially owned directly or indirectly by the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in
Section 424(f) of the Code.

     (cc) “WebMd Corporation” means WebMD Corporation, a Delaware corporation.

ARTICLE 4

ADMINISTRATION

     4.1 COMMITTEE. The Plan shall be administered by a committee (the “Committee”)
appointed by the Board (which Committee shall consist of two or more directors) or, at the
discretion of the Board from time to time, the Plan may be administered by the Board. It is
intended that the directors appointed to serve on the Committee shall be “non-employee directors”
(within the meaning of Rule 16b-3 promulgated under the 1934 Act) and “outside directors” (within
the meaning of Section 162(m) of the Code) to the extent that Rule 16b-3 and, if necessary for
relief from the limitation under Section 162(m) of the Code and such relief is sought by the
Corporation, Section 162(m) of the Code, respectively, are applicable. However, the mere fact that
a Committee member shall fail to qualify under either of the foregoing requirements shall not
invalidate any Award made by the Committee which Award is otherwise validly made under the Plan.
The members of the Committee shall be appointed by, and may be changed at any time and from time to
time in the discretion of, the Board. During any time that the Board is acting as administrator of
the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the
Committee (other than in this Section 4.1) shall include the Board. Notwithstanding the foregoing,
(i) initial Awards granted to Participants in connection with the Initial Public Offering may be
determined, and (ii) to the extent determined by the Board, following the Initial Public Offering
the Plan may be administered, by the compensation committee of the board of directors of WebMD
Corporation and all references to such Committee in the Plan shall be deemed to refer to such
Committee for so long as it serves as the Plan administrator.

     4.2 ACTION BY THE COMMITTEE. For purposes of administering the Plan, the following
rules of procedure shall govern the Committee. A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is present,
and acts approved unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee

6

 

is entitled to, in good faith, rely or act upon any report or other information furnished to
that member by any officer or other employee of the Corporation or any Parent or Affiliate, the
Corporation’s independent certified public accountants, or any executive compensation consultant or
other professional retained by the Corporation to assist in the administration of the Plan.

     4.3 AUTHORITY OF COMMITTEE. Except as provided below, the Committee has the exclusive
power, authority and discretion to:

     (a) Designate Participants;

     (b) Determine the type or types of Awards to be granted to each Participant;

     (c) Determine the number of Awards to be granted and the number of shares of Stock to
which an Award will relate;

     (d) Determine the terms and conditions of any Award granted under the Plan, including,
but not limited to, the exercise price, grant price or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, based in each case
on such considerations as the Committee in its sole discretion determines;

     (e) Accelerate the vesting or lapse of restrictions of any outstanding Award, based in
each case on such considerations as the Committee in its sole discretion determines;

     (f) Determine whether, to what extent, and under what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards or
other property, or an Award may be canceled, forfeited or surrendered;

     (g) Prescribe the form of each Award Agreement, which need not be identical for each
Participant;

     (h) Decide all other matters that must be determined in connection with an Award;

     (i) Establish, adopt or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

     (j) Make all other decisions and determinations that may be required under the Plan or
as the Committee deems necessary or advisable to administer the Plan; and

     (k) Amend the Plan or any Award Agreement as provided herein.

     4.4 DELEGATION OF AUTHORITY. To the extent not prohibited by applicable laws, rules
and regulations, the Board or the Committee may, from time to time, delegate some or all of its
authority under the Plan to a subcommittee or subcommittees thereof or to one or

7

 

more directors or executive officers of the Corporation as it deems appropriate under such
conditions or limitations as it may set at the time of such delegation or thereafter, except that
neither the Board nor the Committee may delegate its authority pursuant to Article 16 to amend the
Plan. For purposes of the Plan, references to the Committee shall be deemed to refer to any
subcommittee, subcommittees, directors or executive officers to whom the Board or the Committee
delegates authority pursuant to this Section 4.4.

     4.5 DECISIONS BINDING. The Committee’s interpretation of the Plan, any Awards granted
under the Plan, any Award Agreement and all decisions and determinations by the Committee with
respect to the Plan are final, binding and conclusive on all parties.

ARTICLE 5

SHARES SUBJECT TO THE PLAN

     5.1 NUMBER OF SHARES. Subject to adjustment as provided in Section 15.1, the
aggregate number of shares of Stock reserved and available for Awards or which may be used to
provide a basis of measurement for or to determine the value of an Award (such as with a Stock
Appreciation Right or Performance Share Award) shall be [___] shares (the “Maximum Number”).
Not more than the Maximum Number of shares of Stock shall be granted in the form of Incentive Stock
Options.

     5.2 LAPSED AWARDS. To the fullest extent permissible under Rule 16b-3 under the 1934
Act and Section 422 of the Code and any other applicable laws, rules and regulations, (i) if an
Award is canceled, terminates, expires, is forfeited or lapses for any reason without having been
exercised or settled, any shares of Stock subject to the Award will be added back into the Maximum
Number and will again be available for the grant of an Award under the Plan and (ii) shares of
Stock subject to SARs or other Awards settled in cash and the number of shares of Stock tendered or
withheld to satisfy a Participant’s tax withholding obligations shall be added back into the
Maximum Number and will be available for the grant of an Award under the Plan.

     5.3 STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open
market.

     5.4 LIMITATION ON AWARDS. Notwithstanding any provision in the Plan to the contrary
(but subject to adjustment as provided in Section 15.1), the maximum number of shares of Stock with
respect to one or more Options and/or SARs that may be granted during any one calendar year under
the Plan to any one Participant shall be [___] (all of which may be granted as Incentive Stock
Options); provided, however, that in connection with his or her initial employment
with the Corporation, a Participant may be granted Options or SARs with respect to up to an
additional [___] shares of Stock (all of which may be granted as Incentive Stock Options), which
shall not count against the foregoing annual limit. The maximum Fair Market Value (measured as of
the date of grant) of any Awards other than Options and SARs that may be received by any one
Participant (less any consideration paid by the Participant for such Award) during any one calendar
year under the Plan shall be $[___]. The maximum number of shares of Stock that may be subject
to one or more Performance Share Awards (or used to provide a basis of measurement for or to
determine the value of Performance Share Awards) in

8

 

any one calendar year to any one participant (determined on the date of payment of settlement)
shall be [___].

ARTICLE 6

ELIGIBILITY

     6.1 GENERAL. Awards may be granted only to individuals who are employees, officers,
directors or consultants of the Corporation or a Parent or an Affiliate.

ARTICLE 7

STOCK OPTIONS

     7.1 GENERAL. The Committee is authorized to grant Options to Participants on the
following terms and conditions:

     (a) EXERCISE PRICE. The exercise price per share of Stock under an Option
shall be determined by the Committee at the time of the grant but in no event shall the
exercise price be less than 100% of the Fair Market Value of a share of Stock on the date of
grant.

     (b) TIME AND CONDITIONS OF EXERCISE. The Committee shall determine the time or
times at which an Option may be exercised in whole or in part, subject to Section 7.1(e).
The Committee also shall determine the performance or other conditions, if any, that must be
satisfied before all or part of an Option may be exercised. The Committee may waive any
exercise provisions at any time in whole or in part based upon factors as the Committee may
determine in its sole discretion so that the Option becomes exerciseable at an earlier date.

     (c) PAYMENT. Unless otherwise determined by the Committee, the exercise price
of an Option may be paid (i) in cash, (ii) by actual delivery or attestation to ownership of
freely transferable shares of stock already owned; provided, however, that
to the extent required by applicable accounting rules, such shares shall have been held by
the Participant for at least six months, (iii) by a combination of cash and shares of Stock
equal in value to the exercise price or (iv) by such other means as the Committee, in its
discretion, may authorize. In accordance with the rules and procedures authorized by the
Committee for this purpose, an Option may also be exercised through a “cashless exercise”
procedure authorized by the Committee that permits Participants to exercise Options by
delivering a properly executed exercise notice to the Corporation together with a copy of
irrevocable instructions to a broker to deliver promptly to the Corporation the amount of
sale or loan proceeds necessary to pay the exercise price and the amount of any required tax
or other withholding obligations.

     (d) EVIDENCE OF GRANT. All Options shall be evidenced by a written Award
Agreement between the Corporation and the Participant. The Award Agreement shall include
such provisions not inconsistent with the Plan as may be specified by the Committee.

9

 

     (e) EXERCISE TERM. In no event may any Option be exercisable for more than ten
years from the date of its grant.

     7.2 INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted under
the Plan must comply with the following additional rules:

     (a) LAPSE OF OPTION. An Incentive Stock Option shall lapse under the earliest
of the following circumstances; provided, however, that the Committee may,
prior to the lapse of the Incentive Stock Option under the circumstances described in
paragraphs (3), (4) and (5) below, provide in writing that the Option will extend until a
later date, but if an Option is exercised after the dates specified in paragraphs (3), (4)
and (5) below, it will automatically become a Non-Qualified Stock Option:

     (1) The Incentive Stock Option shall lapse as of the option expiration date set
forth in the Award Agreement.

     (2) The Incentive Stock Option shall lapse ten years after it is granted,
unless an earlier time is set in the Award Agreement.

     (3) If the Participant terminates employment for any reason other than as
provided in paragraph (4) or (5) below, the Incentive Stock Option shall lapse,
unless it is previously exercised, three months after the Participant’s termination
of employment; provided, however, that if the Participant’s
employment is terminated by the Corporation for Cause, the Incentive Stock Option
shall (to the extent not previously exercised) lapse immediately.

     (4) If the Participant terminates employment by reason of his Disability, the
Incentive Stock Option shall lapse, unless it is previously exercised, one year
after the Participant’s termination of employment.

     (5) If the Participant dies while employed, or during the three-month period
described in paragraph (3) or during the one-year period described in paragraph (4)
and before the Option otherwise lapses, the Option shall lapse one year after the
Participant’s death. Upon the Participant’s death, any exercisable Incentive Stock
Options may be exercised by the Participant’s beneficiary, determined in accordance
with Section 14.5.

     Unless the exercisability of the Incentive Stock Option is accelerated as provided in
Article 14, if a Participant exercises an Option after termination of employment, the Option
may be exercised only with respect to the shares that were otherwise vested on the
Participant’s termination of employment.

     (b) INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair Market Value (determined
as of the time an Award is made) of all shares of Stock with respect to which Incentive
Stock Options are first exercisable by a Participant in any calendar year may not exceed
$100,000.00.

10

 

     (c) TEN PERCENT OWNERS. No Incentive Stock Option shall be granted to any
individual who, at the date of grant, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Corporation or any Parent or
Affiliate unless the exercise price per share of such Option is at least 110% of the Fair
Market Value per share of Stock at the date of grant and the Option expires no later than
five years after the date of grant.

     (d) EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock
Option may be made pursuant to the Plan after the day immediately prior to the tenth
anniversary of the Effective Date.

     (e) RIGHT TO EXERCISE. During a Participant’s lifetime, an Incentive Stock
Option may be exercised only by the Participant or, in the case of the Participant’s
Disability, by the Participant’s guardian or legal representative.

     (f) DIRECTORS. The Committee may not grant an Incentive Stock Option to a
non-employee director. The Committee may grant an Incentive Stock Option to a director who
is also an employee of the Corporation or any Parent or Affiliate but only in that
individual’s position as an employee and not as a director.

ARTICLE 8

STOCK APPRECIATION RIGHTS

     8.1 GRANT OF STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock
Appreciation Rights to Participants on the following terms and conditions:

     (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the
Participant to whom it is granted has the right to receive the excess, if any, of:

     (1) The Fair Market Value of one share of Stock on the date of exercise; over

     (2) The grant price of the Stock Appreciation Right as determined by the
Committee, which shall not be less than the Fair Market Value of one share of Stock
on the date of grant.

     (b) OTHER TERMS. All awards of Stock Appreciation Rights shall be evidenced by
an Award Agreement. The terms, methods of exercise, methods of settlement, form of
consideration payable in settlement, and any other terms and conditions of any Stock
Appreciation Right shall be determined by the Committee at the time of the grant of the
Award and shall be reflected in the Award Agreement.

ARTICLE 9

PERFORMANCE SHARES

     9.1 GRANT OF PERFORMANCE SHARES. The Committee is authorized to grant Performance
Shares to Participants on such terms and conditions as may be selected by the Committee. The
Committee shall have the complete discretion to determine the number of

11

 

Performance Shares granted to each Participant, subject to Section 5.4. All Awards of
Performance Shares shall be evidenced by an Award Agreement.

     9.2 RIGHT TO PAYMENT. A grant of Performance Shares gives the Participant rights,
valued as determined by the Committee, and payable to, or exercisable by, the Participant to whom
the Performance Shares are granted, in whole or in part, as the Committee shall establish at grant
or thereafter. The Committee shall set performance goals and other terms or conditions to payment
of the Performance Shares in its discretion which, depending on the extent to which they are met,
will determine the number and value of Performance Shares that will be paid to the Participant.

     9.3 OTHER TERMS. Performance Shares may be payable in cash, Stock or other property,
and have such other terms and conditions as determined by the Committee and reflected in the Award
Agreement.

ARTICLE 10

RESTRICTED STOCK AWARDS

     10.1 GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of
Restricted Stock to Participants in such amounts and subject to such terms and conditions as may be
selected by the Committee. All Awards of Restricted Stock shall be evidenced by a Restricted Stock
Award Agreement.

     10.2 ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may impose (including,
without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock). These restrictions may lapse separately or in combination at
such times, under such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the Award or
thereafter.

     10.3 FORFEITURE. Except as otherwise determined by the Committee at the time of the
grant of the Award or thereafter, upon termination of employment during the applicable restriction
period or upon failure to satisfy a performance goal during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by
the Corporation; provided, however, that the Committee may provide in any Award
Agreement that restrictions or forfeiture conditions relating to Restricted Stock will be waived in
whole or in part in the event of terminations resulting from specified causes, and the Committee
may in other cases waive in whole or in part restrictions or forfeiture conditions relating to
Restricted Stock.

     10.4 CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted under the Plan may
be evidenced in such manner as the Committee shall determine. If certificates representing shares
of Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock.

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ARTICLE 11

DIVIDEND EQUIVALENTS

     11.1 GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend
Equivalents to Participants subject to such terms and conditions as may be selected by the
Committee. Dividend Equivalents shall entitle the Participant to receive payments (in cash, Stock
or other property) equal to dividends with respect to all or a portion of the number of shares of
Stock subject to an Award, as determined by the Committee. The Committee may provide that Dividend
Equivalents be paid or distributed when accrued, or be deemed to have been reinvested in additional
shares of Stock or otherwise reinvested.

ARTICLE 12

OTHER STOCK-BASED AWARDS

     12.1 GRANT OF OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to
limitations under applicable law, to grant to Participants such other Awards that are payable in,
valued in whole or in part by reference to, or otherwise based on or related to shares of Stock, as
deemed by the Committee to be consistent with the purposes of the Plan, including, without
limitation, shares of Stock awarded purely as a “bonus” and not subject to any restrictions or
conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable
into shares of Stock, stock units, phantom stock and other Awards valued by reference to book value
of shares of Stock or the value of securities of or the performance of specified Parents or
Subsidiaries. The Committee shall determine the terms and conditions of such Awards.

ARTICLE 13

ANNUAL AWARDS TO NON-EMPLOYEE DIRECTORS

     13.1 GRANT OF OPTIONS. Each Non-Employee Director who is serving in such capacity as
of January 1 of each year that the Plan is in effect shall be granted a Non-Qualified Option to
purchase [___] shares of Stock, subject to adjustment as provided in Section 15.1. In
addition, each Non-Employee Director who is serving in such capacity as of the effective date of
the Initial Public Offering shall be granted a Non-Qualified Stock Option to purchase [___]
shares of Stock on such date. Each such date that Options are to be granted under this Article 13
is referred to hereinafter as a “Grant Date”. In addition, the Committee may, in its sole
discretion, permit or require each Non-Employee Director to receive all or any portion of his or
her compensation for services as a director in the form of an Award under the Plan with such term
and conditions as may be determined by the Board in its sole discretion.

     If on any Grant Date, shares of Stock are not available under the Plan to grant to
Non-Employee Directors the full amount of a grant contemplated by the immediately preceding
paragraph, then each Non-Employee Director shall receive an Option (a “Reduced Grant”) to purchase
shares of Stock in an amount equal to the number of shares of Stock then available under the Plan
divided by the number of Non-Employee Directors as of the applicable Grant Date. Fractional shares
shall be ignored and not granted.

13

 

     If a Reduced Grant has been made and, thereafter, during the term of the Plan, additional
shares of Stock become available for grant, then each person who was a Non-Employee Director both
on the Grant Date on which the Reduced Grant was made and on the date additional shares of Stock
become available (a “Continuing Non-Employee Director”) shall receive an additional Option to
purchase shares of Stock. The number of newly available shares shall be divided equally among the
Options granted to the Continuing Non-Employee Directors; provided, however, that
the aggregate number of shares of Stock subject to a Continuing Non-Employee Director’s additional
Option plus any prior Reduced Grant to the Continuing Non-Employee Director on the applicable Grant
Date shall not exceed [___] shares (subject to adjustment pursuant to Section 15.1). If more
than one Reduced Grant has been made, available Options shall be granted beginning with the
earliest such Grant Date.

     13.2 OPTION PRICE. The option price for each Option granted under this Article 13
shall be the Fair Market Value on the date of grant of the Option.

     13.3 TERM. Each Option granted under this Article 13 shall, to the extent not
previously exercised, terminate and expire on the date ten (10) years after the date of grant of
the Option, unless earlier terminated as provided in Section 13.4.

     13.4 LAPSE OF OPTION. An Option granted under this Article 13 shall not automatically
lapse by reason of the Participant ceasing to qualify as a Non-Employee Director but remaining as a
member of the Board. An Option granted under this Article 13 shall lapse under the earliest of the
following circumstances:

     (1) The Option shall lapse ten years after it is granted.

     (2) If the Participant ceases to serve as a member of the Board for any reason other
than as provided in paragraph (3) or (4) below, the Option shall lapse unless it is
previously exercised, three months after the Participant’s termination as a member of the
Board; provided, however, that if the Participant is removed for cause
(determined in accordance with the Corporation’s bylaws, as amended from time to time), the
Option shall (to the extent not previously exercised) lapse immediately.

     (3) If the Participant ceases to serve as a member of the Board by reason of his or her
Disability, the Option shall lapse, unless it is previously exercised, one year after the
Participant’s termination as a member of the Board.

     (4) If the Participant dies while serving as a member of the Board, or during the
three-month period described in paragraph (2) or during the one-year period described in
paragraph (3) and before the Option otherwise lapses, the Option shall lapse one year after
the Participant’s death. Upon the Participant’s death, any exercisable Options may be
exercised by the Participant’s beneficiary, determined in accordance with Section 14.5.

     If a Participant exercises Options after termination of his or her service on the Board, he or
she may exercise the Options only with respect to the shares that were otherwise exercisable on the
date of termination of his service on the Board. Such exercise otherwise shall be subject to the
terms and conditions of this Article 13.

14

 

     13.5 CANCELLATION OF OPTIONS. Upon a Participant’s termination of service for any
reason other than death or Disability, all Options that have not vested in accordance with the Plan
shall be cancelled immediately.

     13.6 EXERCISABILITY. Each Option grant under this Article 13 shall be exercisable as
to twenty-five percent (25%) of the Option shares on each of the first, second, third and fourth
anniversaries of the Grant Date, such that the Options will be fully exercisable after four years
from the Grant Date.

     13.7 TERMINATION OF ARTICLE 13. No Options shall be granted under this Article 13
after January 1, 2015.

     13.8 NON-EXCLUSIVITY. Nothing in this Article 13 shall prohibit the Committee from
making discretionary Awards to Non-Employee Directors pursuant to the other provisions of the Plan
before or after January 1, 2015. Options granted pursuant to this Article 13 shall be governed by
the provisions of this Article 13 and by other provisions of the Plan to the extent not
inconsistent with the provisions of this Article 13.

ARTICLE 14

PROVISIONS APPLICABLE TO AWARDS

     14.1 STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted under the Plan may,
in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for, any other Award granted under the Plan. If an Award is granted in
substitution for another Award, the Committee may require the surrender of such other Award in
consideration of the grant of the new Award. Awards granted in addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the grant of such
other Awards.

     14.2 TERM OF AWARD. The term of each Award shall be for the period as determined by
the Committee, provided that in no event shall the term of any Incentive Stock Option or a
Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period of ten
years from the date of its grant (or, if Section 7.2(c) applies, five years from the date of its
grant).

     14.3 FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan and any applicable
law or Award Agreement, payments or transfers to be made by the Corporation or a Parent or
Affiliate on the grant or exercise of an Award may be made in such form as the Committee determines
at or after the time of grant, including, without limitation, cash, Stock, other Awards or other
property, or any combination thereof, and may be made in a single payment or transfer, in
installments or on a deferred basis, in each case determined in accordance with rules adopted by,
and at the discretion of, the Committee.

     14.4 LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised or
restricted Award may be pledged, encumbered or hypothecated to or in favor of any party other than
the Corporation or a Parent or Affiliate, or shall be subject to any lien, obligation, or liability
of such Participant to any other party other than the Corporation or a Parent or Affiliate. No
unexercised or restricted Award shall be assignable or transferable by a Participant other than

15

 

by will or the laws of descent and distribution or, except in the case of an Incentive Stock
Option, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code
if such Section applied to an Award under the Plan; provided, however, that the
Committee may (but need not) permit other transfers where the Committee concludes that such
transferability (i) does not result in accelerated taxation or other adverse tax consequences, (ii)
does not cause any Option intended to be an Incentive Stock Option to fail to be described in
Section 422(b) of the Code, and (iii) is otherwise appropriate and desirable, taking into account
any factors deemed relevant, including, without limitation, state or federal tax or securities laws
applicable to transferable Awards.

     14.5 BENEFICIARIES. Notwithstanding Section 14.4, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant and
to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative or other person claiming any rights under the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant,
except to the extent the Plan and such Award Agreement otherwise provide, and to any additional
restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been
designated or survives the Participant, payment shall be made to the Participant’s estate. Subject
to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time,
provided the change or revocation is filed with the Committee.

     14.6 STOCK CERTIFICATES. All Stock issuable under the Plan is subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply
with federal or state securities laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Stock is listed, quoted or traded.
The Committee may place legends on any Stock certificate or issue instructions to the transfer
agent to reference restrictions applicable to the Stock.

     14.7 ACCELERATION UPON DEATH OR DISABILITY. Unless otherwise set forth in an Award
Agreement, upon the Participant’s death or Disability during his employment or service as a
director, all outstanding Options, Stock Appreciation Rights, Restricted Stock Awards and other
Awards in the nature of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse. Any Option or Stock Appreciation Rights Awards
shall thereafter continue or lapse in accordance with the other provisions of the Plan and the
Award Agreement. To the extent that this provision causes Incentive Stock Options to exceed the
dollar limitation set forth in Section 7.2(b), the excess Options shall be deemed to be
Non-Qualified Stock Options.

     14.8 ACCELERATION OF VESTING AND LAPSE OF RESTRICTIONS. The Committee may, in its
sole discretion, at any time (including, without limitation, prior to, coincident with or
subsequent to a Change of Control) determine that (a) all or a portion of a Participant’s Options,
Stock Appreciation Rights and other Awards in the nature of rights that may be exercised shall
become fully or partially exercisable, and/or (b) all or a part of the restrictions on all or a
portion of the outstanding Awards shall lapse, in each case, as of such date as the Committee may,
in its sole discretion, declare; provided, however, that, with respect to Awards
that are subject to Section 409A of the Code, the Committee shall not have the authority

16

 

to accelerate or postpone the timing of payment or settlement of an Award in a manner that
would cause such Award to become subject to the interest and penalty provisions under Section 409A
of the Code. The Committee may discriminate among Participants and among Awards granted to a
Participant in exercising its discretion pursuant to this Section 14.8.

     14.9 OTHER ADJUSTMENTS. If (i) an Award is accelerated under Section 14.8 or (ii) a
Change of Control occurs (regardless or whether acceleration under Section 14.8 occurs), the
Committee may, in its sole discretion, provide (a) that the Award will expire after a designated
period of time after such acceleration or Change of Control, as applicable, to the extent not then
exercised, (b) that the Award will be settled in cash rather than Stock, (c) that the Award will be
assumed by another party to a transaction giving rise to the acceleration or a party to the Change
of Control, (d) that the Award will otherwise be equitably converted or adjusted in connection with
such transaction or Change of Control, or (e) any combination of the foregoing. The Committee’s
determination need not be uniform and may be different for different Participants whether or not
such Participants are similarly situated; provided, however, that, with respect to
Awards that are subject to Section 409A of the Code, the Committee shall not have the authority to
accelerate or postpone the timing of payment or settlement of an Award in a manner that would cause
such Award to become subject to the interest and penalty provisions under Section 409A of the Code.

     14.10 PERFORMANCE GOALS. In order to preserve the deductibility of an Award under
Section 162(m) of the Code, the Committee may determine that any Award granted pursuant to this
Plan to a Participant that is or is expected to become a Covered Employee shall be determined
solely on the basis of (a) the achievement by the Corporation or Subsidiary of a
specified target return, or target growth in return, on equity or assets, (b) the Corporation’s
stock price, (c) the Corporation’s total shareholder return (stock price appreciation plus
reinvested dividends) relative to a defined comparison group or target over a specific performance
period, (d) the achievement by the Corporation or a Parent or Subsidiary, or a business unit of any
such entity, of a specified target, or target growth in, net income, earnings per share, earnings
before income and taxes, and earnings before income, taxes, depreciation and amortization, or (e)
any combination of the goals set forth in (a) through (d) above. If an Award is made on such
basis, the Committee shall establish goals prior to the beginning of the period for which such
performance goal relates (or such later date as may be permitted under Section 162(m) of the Code
or the regulations thereunder), and the Committee has the right for any reason to reduce (but not
increase) the Award, notwithstanding the achievement of a specified goal. Any payment of an Award
granted with performance goals shall be conditioned on the written certification of the Committee
in each case that the performance goals and any other material conditions were satisfied.

     14.11 TERMINATION OF EMPLOYMENT. Whether military, government or other service or
other leave of absence shall constitute a termination of employment shall be determined in each
case by the Committee at its discretion, and any determination by the Committee shall be final and
conclusive. A termination of employment shall not occur (i) in a circumstance in which a
Participant transfers from the Corporation to one of its Parents or Subsidiaries, transfers from a
Parent or Affiliate to the Corporation, or transfers from one Parent or Affiliate to another Parent
or Affiliate, or (ii) in the discretion of the Committee as specified at or prior to such
occurrence, in the case of a split-off, spin-off, sale or other disposition of the

17

 

Participant’s employer from the Corporation or any Parent or Affiliate. To the extent that
this provision causes Incentive Stock Options to extend beyond three months from the date a
Participant is deemed to be an employee of the Corporation, a Parent or Affiliate for purposes of
Section 424(f) of the Code, the Options held by such Participant shall be deemed to be
Non-Qualified Stock Options.

     14.12 LOAN PROVISIONS. Subject to applicable laws, rules and regulations, including,
without limitation, Section 402 of the Sarbanes-Oxley Act of 2002, with the consent of the
Committee, the Corporation may make, guarantee or arrange for a loan or loans to a Participant with
respect to the exercise of any Option granted under this Plan and/or with respect to the payment of
the purchase price, if any, of any Award granted hereunder and/or with respect to the payment by
the Participant of any or all federal and/or state income taxes due on account of the granting or
exercise of any Award hereunder. The Committee shall have full authority to decide whether to make
a loan or loans hereunder and to determine the amount, terms and provisions of any such loan(s),
including the interest rate to be charged in respect of any such loan(s), whether the loan(s) are
to be made with or without recourse against the borrower, the collateral or other security, if any,
securing the repayment of the loan(s), the terms on which the loan(s) are to be repaid and the
conditions, if any, under which the loan(s) may be forgiven.

ARTICLE 15

CHANGES IN CAPITAL STRUCTURE

     15.1 GENERAL. In the event of a corporate transaction involving the Corporation
(including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or
exchange of shares), the authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or potential benefits
of the Awards. Action by the Committee may include: (i) adjustment of the number and kind of
shares which may be delivered under the Plan; (ii) adjustment of the number and kind of shares
subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards; (iv)
adjustments to the type or form of Award, and (v) any other adjustments that the Committee
determines to be equitable. Without limiting the foregoing, in the event a stock dividend or stock
split is declared upon the Stock, the authorization limits under Section 5.1 and 5.4 shall be
increased proportionately, and the shares of Stock then subject to each Award shall be increased
proportionately without any change in the aggregate purchase price therefor.

ARTICLE 16

AMENDMENT, MODIFICATION AND TERMINATION

     16.1 AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any
time and from time to time, amend, modify or terminate the Plan; provided, however,
that the Board or the Committee may condition any amendment or modification on the approval of
shareholders of the Corporation if such approval is necessary or deemed advisable with respect to
tax, securities or other applicable laws, policies or regulations.

     16.2 AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may
amend, modify or terminate any outstanding Award or Award Agreement

18

 

without approval of the Participant; provided, however, that, subject to the
terms of the applicable Award Agreement, such amendment, modification or termination shall not,
without the Participant’s consent, reduce or diminish the value of such Award determined as if the
Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or
termination; provided further, however, that the original term of any
Option may not be extended. No termination, amendment, or modification of the Plan shall adversely
affect any Award previously granted under the Plan, without the written consent of the Participant.
Notwithstanding any provision herein to the contrary, the Committee shall have broad authority to
amend the Plan or any outstanding Award under the Plan without approval of the Participant to the
extent necessary or desirable (i) to comply with, or take into account changes in, applicable tax
laws, securities laws, accounting rules and other applicable laws, rules and regulations or (ii) to
ensure that an Award is not subject to interest and penalties under Section 409A of the Code.

ARTICLE 17

GENERAL PROVISIONS

     17.1 NO RIGHTS TO AWARDS. No Participant or any eligible participant shall have any
claim to be granted any Award under the Plan, and neither the Corporation nor the Committee is
obligated to treat Participants or eligible participants uniformly.

     17.2 NO STOCKHOLDER RIGHTS. No Award gives the Participant any of the rights of a
shareholder of the Corporation unless and until shares of Stock are in fact issued to such person
in connection with the exercise, payment or settlement of such Award.

     17.3 WITHHOLDING. The Corporation or any Subsidiary, Parent or Affiliate shall have
the authority and the right to deduct or withhold, or require a Participant to remit to the
Corporation, an amount sufficient to satisfy federal, state, local and other taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to any taxable event
arising as a result of the Plan. With respect to withholding required upon any taxable event under
the Plan, the Committee may, at the time the Award is granted or thereafter, require or permit that
any such withholding requirement be satisfied, in whole or in part, by (i) withholding from the
Award shares of Stock or (ii) delivering shares of Stock that are already owned, having a Fair
Market Value on the date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures as the Committee
establishes. The Corporation or any Subsidiary, Parent or Affiliate, as appropriate, shall also
have the right to deduct from all cash payments made to a Participant (whether or not such payment
is made in connection with an Award) any applicable taxes required to be withheld with respect to
such payments.

     17.4 NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Agreement shall
interfere with or limit in any way the right of the Corporation or any Parent or Affiliate to
terminate any Participant’s employment or status as an officer, director or consultant at any time,
nor confer upon any Participant any right to continue as an employee, officer, director or
consultant of the Corporation or any Parent or Affiliate. In its sole discretion, the Board or the
Committee may authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver shares of Stock with respect to awards hereunder.

19

 

     17.5 UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant
pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the
Participant any rights that are greater than those of a general creditor of the Corporation or any
Parent or Affiliate.

     17.6 INDEMNIFICATION. To the extent allowable under applicable law, each member of
the Committee shall be indemnified and held harmless by the Corporation from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such member in connection
with or resulting from any claim, action, suit or proceeding to which such member may be a party or
in which he may be involved by reason of any action or failure to act under the Plan and against
and from any and all amounts paid by such member in satisfaction of judgment in such action, suit
or proceeding against him; provided such member shall give the Corporation an opportunity,
at its own expense, to handle and defend the same before such member undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled under the
Corporation’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Corporation may have to indemnify them or hold such persons harmless.

     17.7 RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or benefit plan of the Corporation or any Parent or Affiliate unless provided
otherwise in such other plan.

     17.8 EXPENSES; APPLICATION OF FUNDS. The expenses of administering the Plan shall be
borne by the Corporation and its Parents or Subsidiaries. The proceeds received by the Corporation
from the sale of shares of Stock pursuant to Awards will be used for general corporate purposes.

     17.9 TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

     17.10 GENDER AND NUMBER. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.

     17.11 FRACTIONAL SHARES. No fractional shares of Stock shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
shares or whether such fractional shares shall be eliminated by rounding up or down.

     17.12 GOVERNMENT AND OTHER REGULATIONS. The obligation of the Corporation to make
payment of awards in Stock or otherwise shall be subject to all applicable laws, rules and
regulations, and to such approvals by government agencies as may be required. To the extent that
Awards under the Plan are awarded to individuals who are domiciled or resident outside of the
United States or to persons who are domiciled or resident in the United

20

 

States but who are subject to the tax laws of a jurisdiction outside of the United States, the
Committee may adjust the terms of the Awards granted hereunder to such person (i) to comply with
the laws of such jurisdiction and (ii) to avoid adverse tax consequences relating to an Award. The
authority granted under the previous sentence shall include the discretion for the Committee to
adopt, on behalf of the Corporation, one or more sub-plans applicable to separate classes of
Participants who are subject to the laws of jurisdictions outside of the United States.

     17.13 SECURITIES LAW RESTRICTIONS. An Award may not be exercised or settled and no
shares of Stock may be issued in connection with an Award unless the issuance of such shares of
Stock has been registered under the 1933 Act and qualified under applicable state “blue sky” laws
and any applicable foreign securities laws, or the Corporation has determined that an exemption
from registration and from qualification under such state “blue sky” laws is available. The
Corporation shall be under no obligation to register under the 1933 Act, or any state securities
act, any of the shares of Stock issued in connection with the Plan. The shares issued in
connection with the Plan may in certain circumstances be exempt from registration under the 1933
Act, and the Corporation may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption. The Committee may require each
Participant purchasing or acquiring shares of Stock pursuant to an Award under the Plan to
represent to and agree with the Corporation in writing that such Participant is acquiring the
shares of Stock for investment purposes and not with a view to the distribution thereof. All
certificates for shares of Stock delivered under the Plan shall be subject to such stock-transfer
orders and other restrictions as the Committee may deem advisable under the rules, regulations and
other requirements of the Securities and Exchange Commission, any exchange upon which the Stock is
then listed, and any applicable securities law, and the Committee may cause a legend or legends to
be put on any such certificates to make appropriate reference to such restrictions.

     17.14 SATISFACTION OF OBLIGATIONS. Subject to applicable law, the Corporation may
apply any cash, shares of Stock, securities or other consideration received upon exercise or
settlement of an Award to any obligations a Participant owes to the Corporation and its Parents,
Subsidiaries or Affiliates in connection with the Plan or otherwise, including, without limitation,
any tax obligations or obligations under a currency facility established in connection with the
Plan.

     17.15 SECTION 409A OF THE CODE. If any provision of the Plan or an Award Agreement
contravenes any regulations or Treasury guidance promulgated under Section 409A of the Code or
could cause an Award to be subject to the interest and penalties under Section 409A of the Code,
such provision of the Plan or any Award Agreement shall be modified to maintain, to the maximum
extent practicable, the original intent of the applicable provision without violating the
provisions of Section 409A of the Code. Moreover, any discretionary authority that the Board or
the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject to
Section 409A of the Code to the extent such discretionary authority will contravene Section 409A of
the Code or the Treasury guidance promulgated thereunder.

     17.16 GOVERNING LAW. To the extent not governed by federal law, the Plan and all
Award Agreements shall be construed in accordance with and governed by the laws of the State of
Delaware.

21

 

     17.17 ADDITIONAL PROVISIONS. Each Award Agreement may contain such other terms and
conditions as the Board or the Committee may determine, provided that such other terms and
conditions are not inconsistent with the provisions of this Plan. In the event of any conflict or
inconsistency between the Plan and an Award Agreement, the Plan shall govern and the Award
Agreement shall be interpreted to minimize or eliminate such conflict or inconsistency.

     The foregoing is hereby acknowledged as being the WebMD Health Corp. 2005 Long-Term Incentive
Plan as adopted by the Board on ___, 2005.

	 	 	 	 	 
	 	 	WebMD HEALTH CORP.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	[             
                   
                   
                   
                        ]
	 

	 	 	 	 

22

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