Document:

EX-10.1 AMENDED AND RESTATED EMPLOYMENT AGREEMENT

 

EXHIBIT 10.1

          AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) dated as of August 3, 2005 (the
“Effective Date”) by and between WebMD Corporation, a Delaware corporation (the “Company”), and
Martin J. Wygod (“Executive”).

          WHEREAS, the Company and the Executive are party to an Employment Agreement dated October 8,
2001 (the “Original Employment Agreement”), and the Company and the Executive desire to amend and
restate the Original Employment Agreement on the terms hereinafter set forth which include the
extension of the Employment Period (as hereinafter defined);

          WHEREAS, the Company acknowledges that WebMD Health Holdings, Inc., a Delaware corporation and
a subsidiary of the Company (“WebMD Health”), has filed a Form S-1 registration statement that
contemplates an initial public offering of the securities of WebMD Health pursuant to the
Securities Act of 1933, as amended (“1933 Act”);

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

          1. Employment. (a) The Company hereby continues to employ Executive as the Chairman

of the Board of Directors of the Company and Executive hereby accepts such continued employment
with the Company. Executive shall report to, and perform such duties and services for the Company
and its subsidiaries and affiliates (such subsidiaries and affiliates, collectively, “Affiliates”)
commensurate with such position as may be designated from time to time by, the Board of Directors
of the Company (the “Board”), and not a committee thereof. During the Employment Period, the
Company shall, subject to its fiduciary duties, use its best efforts to include Executive in
management’s nominees for election, and recommend the election of Executive, as a member of the
Board and to appoint him to serve on the Executive Committee of the Board (if any).

          (b) Executive shall also serve as the Chairman of the Board of Directors of WebMD Health (the
“WebMD Health Board”). In such capacity, Executive shall report to, and perform such duties and
services for WebMD Health and its subsidiaries commensurate with such position as may be designated
from time to time by, the WebMD Health Board, and not a committee thereof. During the Employment
Period, WebMD Health shall, subject to its fiduciary duties, use its best efforts to include
Executive in management’s nominees for election, and recommend the election of Executive, as a
member of the WebMD Health Board and to appoint him to serve on the Executive Committee of the
WebMD Health Board (if any).

          (c) Executive shall use his best efforts to promote the interests of the Company and its
Affiliates. Executive shall have flexibility in determining his work schedule, and shall not be
required to work a fixed number of hours during any particular day, week or

1

 

month. Executive may render his services from his home or any other convenient location from
which he can maintain communication with the Company. During the Employment Period, Executive
shall not be required to move from his current residence and any travel shall be at Executive’s
reasonable discretion. Subject to Section 6 and Executive’s affirmative obligations to render
services under this Agreement, it is understood that Executive’s employment hereunder does not
preclude him from (i) being engaged in other business activities, (ii) serving in any capacity with
any civic, educational or charitable organization, or any trade association or (iii) serving on the
board of directors of any corporation.

          2. Compensation and Benefits.

          2.1 Salary. The Company shall pay Executive for services during the Employment Period
a base salary at the annual rate of $1.26 million; provided, however, that upon consummation of the
Offering (as defined below), the base salary shall be reduced to $975,000 per annum. Executive’s
base salary shall be payable in equal installments, no less frequently than monthly, pursuant to
the Company’s customary payroll policies in force at the time of payment, less any required or
authorized payroll deductions. In addition, Executive’s base salary may be increased (but not
decreased) in the discretion of the Board or the Compensation Committee of the Board. For purposes
of this Agreement, the “Offering” shall occur when a portion of the securities of WebMD Health are
registered pursuant to the 1933 Act and are first publicly traded.

          2.2 WebMD Health Equity. (a) In the event of the consummation of the Offering, WebMD
Health shall recommend to the Compensation Committee of the WebMD Health Board (the “WebMD Health
Compensation Committee”) that Executive be granted a nonqualified option (the “WebMD Health Stock
Option”) to purchase 400,000 shares of WebMD Health’s common stock. The WebMD Health Stock Option
grant assumes a capitalization of 100 million shares of WebMD Health outstanding (on a fully
diluted basis) upon the consummation of the Offering. The number of shares corresponding to the
WebMD Health Stock Option shall be adjusted proportionately upward or downward in the event the
capitalization of WebMD Health, upon the consummation of the Offering, is greater or less than the
100 million shares assumed above. The WebMD Health Stock Option shall be at an exercise price
equal to the fair market value of WebMD Health’s common stock (as determined by the WebMD Health
Compensation Committee) on the date on which the Offering is consummated (the “Offering Effective
Date”) determined in the same manner and at the same price as options granted to other senior
executives of WebMD Health. The WebMD Health Stock Option shall be granted pursuant to the terms
of a stock option plan and a stock option agreement (the “WebMD Health Stock Option Agreement”) to
be entered into between Executive and WebMD Health, which agreement shall be in substantially the
same form provided by WebMD Health to its employees generally. The WebMD Health Stock Option shall
vest and become exercisable, subject to Executive’s continued engagement with WebMD Health on such
dates (except as otherwise provided in Sections 4 and 5 below) in accordance with the following
schedule: 25% shall vest on the first anniversary of the Offering Effective Date and 25% shall
vest on each of the subsequent three anniversaries of the Offering Effective Date.

          (b) In the event of the consummation of the Offering, WebMD Health shall recommend to the
WebMD Health Compensation Committee that Executive be granted 100,000

2

 

shares of restricted stock of WebMD Health on the Offering Effective Date (the “WebMD Health
Restricted Stock”), subject to proportionate adjustment in the number of shares of WebMD Health
Restricted Stock as provided in Section 2.2(a) above. The WebMD Health Restricted Stock shall vest
and the restrictions thereon shall lapse in equal annual installments over four years, commencing
on the first anniversary of the date of grant subject to Executive’s continued employment on the
applicable dates except as otherwise provided in Sections 4 and 5 below. The WebMD Health
Restricted Stock shall be subject to the terms of a stock plan and a restricted stock agreement
(the “WebMD Health Restricted Stock Agreement”) to be entered into between Executive and WebMD
Health, which agreement shall be in substantially the same form provided by WebMD Health to its
employees generally.

          (c) Executive understands and acknowledges that, while WebMD Health is working diligently
towards consummation of the Offering, there can be no assurance that the Offering will occur. If
the Offering does not occur, WebMD Health shall have no obligation under this Section 2.2.

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

          2.4 Expenses. Pursuant to the Company’s customary policies in force at the time of
payment, Executive shall be promptly reimbursed, against presentation of vouchers or receipts
therefor, for all authorized expenses properly and reasonably incurred by him on behalf of the
Company or its Affiliates in the performance of his duties hereunder.

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

          2.6 Use of Aircraft. During the Employment Period and the Consulting Period (as
defined below), the Company shall provide Executive with the use of a corporate aircraft selected
by Executive for business purposes. Executive shall also have the right to use such aircraft for
personal reasons, provided that Executive shall reimburse the Company for any incremental
out-of-pocket costs (e.g., fuel and catering) (computed on an hourly basis) the Company incurs as a
result of Executive’s personal use of such aircraft.

          2.7 Vacation. Executive shall be entitled to paid vacation time in amounts
commensurate with his position with the Company. The date or dates of such vacations shall be
selected by Executive having reasonable regard to the business needs of the Company and WebMD
Health.

          3. Employment Period. Executive’s employment under this Agreement shall commence as
of the Effective Date, and shall terminate on the fifth anniversary thereof, unless terminated
earlier pursuant to Section 5 or renewed pursuant to this Section 3 (the “Employment Period”).
Unless written notice of either party’s desire to terminate the Employment Period has been given to
the other party prior to the expiration of the Employment Period (or any one-month

3

 

renewal thereof contemplated by this sentence), the Employment Period shall be automatically
renewed for successive one-month periods.

          4. Change in Control. (a) In the event that a Company Change in Control (as defined
below) occurs during the Employment Period, all of Executive’s options to purchase shares of the
Company’s common stock (or any Affiliate’s common stock) or any other form of equity compensation
(in the Company or one of its Affiliates) granted to Executive and held as of the date on which the
Company Change in Control occurs (collectively, the “Outstanding Equity”) shall become fully vested
and exercisable (or equivalent feature of another form of equity compensation) on the date on which
such Company Change in Control occurs and if his employment terminates for any reason other than
Cause (as defined below), such equity will remain outstanding (or equivalent) until the expiration
of its original term (e.g., the tenth anniversary of the applicable date of grant of an option).
For purposes of this Agreement and for the avoidance of doubt, in the event of a public offering,
split-off, spin-off or other divestiture of WebMD Health that results in WebMD Health no longer
being a subsidiary or affiliate of the Company (including, without limitation, a public offering,
split-off, spin-off or other divestiture of WebMD Health that occurs subsequent to a Company Change
in Control but is otherwise connected to or contemplated by such Company Change in Control),
“Outstanding Equity” shall not include the WebMD Health Stock Option or the WebMD Health Restricted
Stock.

          (b) For purposes of this Agreement, a “Company Change in Control” shall be deemed to have
occurred:

    (i) when any “person”, as defined in Section 3(a)(9) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”), and as used in Sections 13(d) and 14(d) thereof,
including a “group”, as defined in Section 13(d) and 14(d) thereof (but excluding the
Company (and any successor to the Company in a transaction which did not result in a Company
Change in Control), any subsidiary of the Company and any employee benefit plan sponsored or
maintained by the Company or any subsidiary of the Company (including any trustee of such
plan acting as trustee)) directly or indirectly becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Exchange Act) of securities of the Company representing more than
50% of the combined voting power of its then outstanding securities;

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

    (iii) when there is consummated a merger or consolidation of the Company with any other
corporation, other than (A) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being

4

 

converted into voting securities of the surviving entity or any parent thereof), in
combination with the ownership of any trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any subsidiary of the Company, more than 50% of the
combined voting power of the securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger or consolidation, or (B) a merger
or consolidation effected to implement a recapitalization of the Company (or similar
transaction) in which no person becomes the beneficial owner, directly or indirectly, of
securities of the Company representing more than 50% of the combined voting power of the
Company’s then outstanding securities;

    (iv) when there is a sale or disposition of all or substantially all of the Company’s
assets, other than a sale or disposition by the Company of all or substantially all of its
assets to an entity, at least 50% of the combined voting power of the outstanding securities
of which are owned by stockholders of the Company in substantially the same proportions as
their ownership of the Company immediately prior to such sale; or

    (v) when the Company adopts a plan of complete liquidation.

          (c) In the event that a WebMD Health Change in Control (as defined below) occurs during the
Employment Period, all of Executive’s options to purchase shares of WebMD Health common stock (or
any common stock of any subsidiary of WebMD Health) or any other form of equity compensation in
WebMD Health or one of its subsidiaries (including, without limitation, the WebMD Health Stock
Option and the WebMD Health Restricted Stock) granted to Executive and held as of the date on which
the WebMD Health Change in Control occurs (collectively, the “WebMD Health Outstanding Equity”)
shall become fully vested and exercisable (or equivalent feature of another form of equity
compensation) on the date on which such WebMD Health Change in Control occurs and if his employment
terminates for any reason other than Cause, such equity will remain outstanding (or equivalent)
until the expiration of its original term (e.g., the tenth anniversary of the applicable date of
grant of an option).

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

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

    (ii) when, at any time during the Employment Period, the individuals who constitute the
WebMD Health Board on the Offering Effective Date (the “WebMD Health Incumbent Directors”)
cease for any reason to constitute at least a majority thereof;

5

 

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

     (iii) when there is consummated a merger or consolidation of WebMD Health with any
other corporation, other than (A) a merger or consolidation which would result in the voting
securities of WebMD Health outstanding immediately prior to such merger or consolidation
continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity or any parent thereof), in combination with the ownership
of any trustee or other fiduciary holding securities under an employee benefit plan of WebMD
Health or any subsidiary or parent of WebMD Health, more than 50% of the combined voting
power of the securities of WebMD Health or such surviving entity or any parent thereof
outstanding immediately after such merger or consolidation, or (B) a merger or consolidation
effected to implement a recapitalization of WebMD Health (or similar transaction) in which
no person becomes the beneficial owner, directly or indirectly, of securities of WebMD
Health representing more than 50% of the combined voting power of WebMD Health’s then
outstanding securities;

    (iv) when there is a sale or disposition of all or substantially all of WebMD Health’s
assets, other than a sale or disposition by WebMD Health of all or substantially all of its
assets to an entity, at least 50% of the combined voting power of the outstanding securities
of which are owned by stockholders of WebMD Health in substantially the same proportions as
their ownership of WebMD Health immediately prior to such sale; or

    (v) when WebMD Health adopts a plan of complete liquidation.

          (e) For the purposes of this Agreement and for the avoidance of doubt, no public offering or
any split-off, spin-off or other divesture of WebMD Health by the Company shall constitute a WebMD
Health Change in Control for purposes of this Agreement.

6

 

          5. Termination of Employment; Consulting Arrangement.5.1 Termination by the
Company for Cause. The Employment Period may be terminated at any time by the Company for
Cause. Upon such a termination, the Company and its Affiliates (including, without limitation,
WebMD Health) shall have no obligation to Executive pursuant to this Agreement other than the
payment of Executive’s earned and unpaid base salary and accrued benefits to the effective date of
such termination. For purposes of this Agreement, the term “Cause” shall mean a final,
non-appealable court adjudication in a civil or criminal proceeding that Executive has during his
employment hereunder committed a fraud or felony directed against the Company or one of its
Affiliates (including, without limitation, WebMD Health) relating to or adversely affecting his
employment or materially breached any of the material terms of this Agreement, including, without
limitation, Section 6 hereof.

          5.2 Death and Disability. The Employment Period may be deemed terminated by the
Company upon the death of Executive or Executive becoming Disabled (as defined below), and the
Company shall have the following obligations to Executive or Executive’s estate (but the Company
and its Affiliates (including without limitation, WebMD Health) shall have no other obligation to
Executive or Executive’s estate pursuant to this Agreement): (i) a continuation of his base salary
(at the rate in effect at the time of such termination) for a period (the “Applicable Period”)
commencing on the date of termination and ending on the later of the second anniversary of the date
of termination and the fifth anniversary of the Effective Date (or such later date to which the
Employment Period had been extended), payable in accordance with the second sentence of Section
2.1, provided that the base salary for the first six months of the Applicable Period shall be paid
to Executive in a lump sum at the end of such six-month period in accordance with the requirements
of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”) (except to the
extent any future guidance issued by the Internal Revenue Service (the “IRS”) under Section 409A
does not subject such base salary payments to Section 409A), (ii) a continuation of the benefits to
which Executive is entitled pursuant to the Welfare Plans (as defined below) for the Applicable
Period, provided that Executive shall (except to the extent any future guidance issued by the IRS
under Section 409A does not subject the payment of such premiums by the Company to Section 409A)
pay the amount of the employer portion of the applicable premiums for the first six months of the
Applicable Period in accordance with the requirements of Section 409A, which amount will be
reimbursed to him in a lump sum at the end of such six-month period and (iii) all of the
Outstanding Equity shall be fully vested and exercisable (or equivalent feature of another form of
equity compensation) as of the date on which the Employment Period terminates, and shall remain
exercisable (or equivalent) as if Executive remained in the employ of the Company during the
Applicable Period (or longer if such plan or agreement expressly provides) or, if applicable, as
provided in Section 4(a) or 4(c); provided, however, that the continuation of such salary, welfare
benefits and option exercisability (or equivalent) shall end on the occurrence of any circumstance
or event that would constitute Cause, including, without limitation, a material breach of the
covenants contained in Section 6 below; and provided further, however, that Executive’s eligibility
to continue to participate in the Welfare Plans shall cease at such time as Executive is offered
comparable coverage with a subsequent employer. With respect to any continuation of Executive’s
insurance coverage under this Section 5.2, the Company may require Executive to elect “COBRA”, and,
in such case, the Company will, subject to the proviso to the sentence above, pay that portion of
the COBRA premium that the Company pays for active employees

7

 

with the same coverage for the period that Executive is eligible for COBRA. For purposes of
this Agreement, Executive shall be “Disabled” if Executive becomes ill or injured (including as a
result of mental illness) so as to be unable to substantially perform the duties of his position as
determined by a physician selected by Executive and reasonably acceptable to the Company.

          5.3 Termination by the Company Without Cause; Consulting Arrangement

          (a) The Employment Period may be terminated at any time by the Company without Cause. If the
Company terminates the Employment Period without Cause, the Company shall engage Executive as a
consultant to the Company and Executive will be reasonably available to assist and cooperate with
the Company for a period (the “Consulting Period”) commencing on the date of termination and ending
on the later of (x) the second anniversary of the date of termination and (y) the fifth anniversary
of the Effective Date (or such later date to which the Employment Period had been extended). The
Company shall have the following obligations to Executive during the Consulting Period (but
excluding any other obligation to Executive pursuant to this Agreement): (i) a continuation of his
base salary at the annual rate in effect at the time of such termination, payable in accordance
with the second sentence of Section 2.1, provided that the base salary for the first six months of
the Consulting Period shall be paid to Executive in a lump sum at the end of such six-month period
in accordance with the requirements of Section 409A (except to the extent any future guidance
issued by the IRS under Section 409A does not subject such base salary payments to Section 409A),
(ii) Executive and his dependents shall be eligible to continue to participate during the
Consulting Period on the same terms and conditions that would have applied had Executive remained
in the employ of the Company during the Consulting Period in all health, medical, dental and other
welfare plans provided to Executive pursuant to Section 2.3 at the time of such termination and
which are provided by the Company to its employees following the date of termination (“Welfare
Plans”), provided that Executive shall (except to the extent any future guidance issued by the IRS
under Section 409A does not subject the payment of such premiums by the Company to Section 409A)
pay the amount of the employer portion of the applicable premiums for the first six months of the
Consulting Period in accordance with the requirements of Section 409A, which amount will be
reimbursed to him in a lump sum at the end of such six-month period (iii) the Outstanding Equity
shall be fully vested and exercisable (or equivalent feature of another form of equity
compensation) as of the date on which the Employment Period terminates, and shall remain
exercisable (or equivalent) as if Executive remained in the employ of the Company during the
Consulting Period (or longer if such plan or agreement expressly provides) or, if applicable, as
set forth in Section 4(a) or 4(c); provided, however, that the continuation of such salary, welfare
benefits and option exercisability (or equivalent) shall end on the occurrence of any circumstance
or event that would constitute Cause, including, without limitation, a material breach of the
covenants contained in Section 6 below; provided further, however, that Executive’s eligibility to
participate in the Welfare Plans shall cease at such time as Executive is offered comparable
coverage with a subsequent employer. If Executive is precluded from participating in any Welfare
Plan by its terms or applicable law, the Company shall provide Executive with benefits that are
reasonably equivalent in the aggregate to those which Executive would have received under such plan
had he been eligible to participate therein. With respect to any continuation of Executive’s
insurance coverage under this Section 5.3(a), the Company may require Executive to elect “COBRA”,
and, in such case, the Company will, subject to the proviso to the sentence

8

 

above, pay that portion of the COBRA premium that the Company pays for active employees with
the same coverage for the period that Executive is eligible for COBRA. Anything to the contrary
herein notwithstanding in Section 5.2 or this Section 5.3, the Company shall have no obligation to
continue to maintain any Welfare Plan solely as a result of the provisions of this Agreement.

          (b) If, following Executive’s termination at any time by the Company without Cause as
described in this Section 5.3, Executive remains in service with WebMD Health, Executive shall not
receive any salary described in Section 2.2 from WebMD Health.

          (c) Executive will provide such consulting services at mutually agreeable times and locations
and shall be indemnified and held harmless for any liability incurred as a result of any and all
acts performed in such capacity. During the Consulting Period, Executive shall act as an
independent contractor and shall not be an agent of the Company. He shall be responsible for the
payment of taxes and the Company shall not withhold any amounts in satisfaction of such taxes,
unless required to do so by law. During the Consulting Period, the Company will reimburse
Executive, upon submission of documentation in accordance with the Company’s regular expense
policies as may be in effect from time to time, for reasonable, pre-approved business expenses
incurred on the Company’s behalf by him.

          5.4 Termination by Executive for Good Reason. (a) The Employment Period may be
terminated at any time by Executive for Good Reason (as defined below). If Executive terminates
the Employment Period for Good Reason, the Company shall engage Executive as a consultant to the
Company and Executive shall be entitled to the same payments and benefits as if set forth in
Section 5.3 above. If, following termination by Executive for Good Reason as described in this
Section 5.4, Executive remains in service with WebMD Health, Executive shall not receive any salary
described in Section 2.2 from WebMD Health.

          (b) For purposes of this Agreement, the term “Good Reason” shall mean any of the following
conditions or events: (i) the Company materially reduces Executive’s title or responsibilities, as
set forth in Section 1(a), which reduction remains in effect after 30 days after written notice
from Executive; (ii) a final, non-appealable court adjudication in a civil or criminal proceeding
that the Company materially breached any material provision of this Agreement relating to the
obligations of the Company; (iii) failure to serve on the Board or Executive Committee of the
Board; or (iv) the occurrence of a Company Change in Control.

          5.5 Termination by Executive for WebMD Health Good Reason. If Executive terminates
his engagement with WebMD Health for WebMD Health Good Reason (as defined below), that portion of
the Outstanding Equity that relates to equity securities of WebMD Health (including without
limitation, the WebMD Health Stock Option and the WebMD Health Restricted Stock) shall be fully
vested and exercisable (or equivalent feature of another form of equity compensation) as of the
date on which such engagement terminates, and shall remain exercisable (or equivalent) as if
Executive remained in the service of the Company during the Applicable Period (or longer if such
plan or agreement expressly provides) or, if applicable, as set forth in Section 4(a) or 4(c);
provided, however, that the continuation of such option exercisability (or equivalent) shall end on
the occurrence of any circumstance or event that would constitute Cause, including, without
limitation, a material breach of the covenants

9

 

contained in Section 6 below. For purposes of this Section 5.5, “WebMD Health Good Reason”
shall exist if WebMD Health materially reduces Executive’s title or responsibilities as Chairman of
the Board of WebMD Health, which reduction remains in effect after 30 days after written notice of
Executive.

          5.6 Resignation by Executive Without Good Reason. Executive may resign from any of
his positions hereunder with the Company or WebMD Health, as applicable, at any time or otherwise
terminate the Employment Period at any time without Good Reason or WebMD Health Good Reason, as
applicable. Upon such a resignation or event, the Company or WebMD Health, as applicable, shall
have no obligation to Executive pursuant to this Agreement other than, in the case of the Company,
the payment of Executive’s earned and unpaid base salary and accrued benefits to the effective date
of such termination, as set forth in Section 4(a) and 4(c) (if applicable), and benefits under any
other plans that by their terms survive termination of employment. If, following the resignation
by Executive without Good Reason from the Company as described in this Section 5.6, Executive
remains in service with WebMD Health, Executive shall not receive any salary described in Section
2.2 from WebMD Health.

          5.7 Indemnification. Notwithstanding any termination of Executive’s employment with
the Company or this Agreement for any reason, any indemnification arrangements with or on behalf of
the Executive will remain in full force and effect.

          6. Covenants of Executive.

          (a) Noncompete. The Company is currently engaged in the following businesses: (i)
development or provision of an Internet-based healthcare electronic commerce network that links
physicians, payers, suppliers or patients, (ii) facilitating or processing administrative or
clinical healthcare transactions, (iii) clinical and administrative healthcare related electronic
commerce business, (iv) development or provision of physician practice management information
systems or other healthcare software systems relating to administrative and clinical functions, to
physicians, practice associations, management service organizations, physician practice management
organizations or other providers of healthcare services and (v) developing, selling or providing a
consumer or physician Internet healthcare portal or interactive online personal health management
products (collectively, the “Business”). Executive agrees that during his employment with the
Company and through the second (2nd) anniversary of the date of termination of Executive’s
employment (not the termination of the Consulting Period) for any reason (the “Restrictive
Period”), without the prior written consent of the Company, Executive shall not Compete (as defined
below) with the Business of the Company, except as otherwise permitted under this Section 6. For
purposes of this Agreement, “Compete” shall mean: (i) within the Territory (as defined below), to
engage in a business or business activities that are either (A) substantially similar to, or (B)
competitive with, the Business, in each case as engaged in by the Company on the date of
termination of Executive’s employment or as contemplated by the business plan of the Company (so
long as substantial steps had been taken to implement such business plan prior to such termination
date) (collectively, a “Competitive Business”); (ii) to assist any person or entity (whether in a
managerial, financial, employment, advisory or other capacity or as a stockholder or owner, except
as set forth in clause (iii) below) to engage in a Competitive Business; or (iii) to own any
interest in or to organize a corporation, partnership or other business or organization which
engages in a Competitive Business;

10

 

provided, however, that nothing in clause (iii) above shall prohibit Executive from acquiring
or holding, for investment purposes only, less than five percent (5%) of the outstanding publicly
traded securities of any corporation which may compete directly or indirectly with the Business; or
less than five percent (5%) of the outstanding securities of any corporation, partnership or other
business or organization, whether or not publicly traded, which competes directly or indirectly
with the Business so long as he is not employed by and does not consult with, or become a director
of or otherwise engage in activities for such competing company; provided further that this
provision shall not apply in the event the Company or the Company’s direct or indirect subsidiaries
or any person deriving title to the goodwill of the Business of the Company being acquired or
shares of the Company being acquired ceases to carry on a business comparable to the Business
(including anticipated changes in and expansions of the Business which are implemented or
substantial steps are taken to implement prior to the termination date) within the Territory;
provided further that this provision shall not prevent or impair Executive from performing usual
investment banking services for a person or entity engaged in a Competitive Business if such
services do not materially relate to or involve such Competitive Business; provided, further, that
the term Business shall not include any business of an acquiror of the Company or successor to the
Company in a Change in Control that is unrelated to the Business as it existed immediately prior to
the Change in Control (unless the Executive consents in writing to such expansion of the
definition of Business).

          “Territory” shall mean (a) the area within a 100 mile radius of that office of the
Company from which Executive performed the majority of his services during the one-year period
ending on his termination of employment with the Company, (b) the state in which Executive is
resident on the termination date, and (c) any other state in the United States in which the Company
and its Affiliates develop, distribute or provide their business services or products as of the
termination date.

          (b) Confidentiality. Executive acknowledges that in the course of his employment with
the Company, he has had and will continue to have access to and will learn information that is
proprietary to, or confidential to the Company and that concerns the Business including the
operation, methodology and plans of the Company and its Affiliates, including without limitation,
business strategy and plans, financial information, trade secrets, market information developments,
information regarding acquisition and other strategic partner candidates and customer information
(collectively, “Proprietary Information”). Executive agrees that at all times during his
employment and thereafter, he will keep such Proprietary Information confidential and will not
disclose directly or indirectly any such Proprietary Information to any third party and will not
misuse, misappropriate or exploit such Proprietary Information in any way except as required by law
or regulatory body. Upon the termination of his employment, Executive shall immediately return to
the Company all copies of Proprietary Information in his possession (except his Rolodex).

          (c) Nonsolication. During the period beginning on the Effective Date and ending upon
the expiration of the Restrictive Period, Executive shall not directly or indirectly without the
express written approval of the Board, solicit any customer, or any person or entity who is
reasonably expected to become a customer of the Company or any of its Affiliates for any commercial
pursuit which is a Competitive Business. During the period beginning on the

11

 

Effective Date and ending upon the expiration of the Restrictive Period, Executive shall not
directly or indirectly solicit or induce, or attempt to induce, any employees, agents, or
consultants of the Company or its Affiliates to leave the employ of the Company or its Affiliates
or to do anything from which Executive is restricted by reason of this Agreement, nor shall
Executive, directly or indirectly, offer or aid others to offer employment to or interfere or
attempt to interfere with any employees, agents or consultants of the Company or its Affiliates.

          (d) Construction. Executive hereby expressly acknowledges and agrees as follows:

          (i) the covenants set forth in this Section 6 are reasonable in all respects and are necessary
to protect the legitimate business and competitive interests of the Company; and

          (ii) In the event that any provision of this Section 6 shall be held invalid or unenforceable
by a court of competent jurisdiction by reason of the geographic or business scope or the duration
thereof of such covenant, or for any other reason, such invalidity or unenforceability shall attach
only to the particular aspect of such provision found invalid or unenforceable as applied and shall
not affect or render invalid or unenforceable any other provision of this Section 6 and the
provision shall be construed as if the geographic or business scope or the duration of such
provision or other basis on which such provisions have been challenged had been more narrowly
drafted so as not to be invalid or unenforceable.

          (e) Enforcement; Remedies. Executive covenants, agrees and recognizes that because
the breach of the covenants, or any of them, contained in Section 6 hereof may result in immediate
and irreparable injury to the Company, the Company shall be entitled to seek an injunction
restraining Executive from any violation of Section 6 to the fullest extent allowed by law.
Executive further covenants and agrees that in the event of a material breach of any of the
respective covenants and agreements contained in this Section 6, the period during which Executive
is obligated to refrain from competing shall be extended for the entire period of such breach.
Executive further covenants, agrees and recognizes that, notwithstanding anything to the contrary
contained herein, in the event of a material breach of any of the respective covenants and
agreements contained in this Section 6, which remains uncured 30 days after written notice from the
Company, the Company’s obligations under this Agreement shall cease. The Company’s entitlement to
seek injunctive relief or ceasing any further Company obligation under this Agreement shall be the
Company’s sole and exclusive remedy in the event that Executive breaches any covenant or agreement
contained in this Section 6; provided, however, that in the case of any willful material breach by
Executive of the covenants and agreements contained in Section 6 hereof, nothing herein shall be
construed as prohibiting the Company from pursuing any other legal or equitable remedies that may
be available to it for any such breach, including the recovery of damages from Executive.

          7. Gross-Up Payment. (i) Anything in this Agreement to the contrary notwithstanding,
in the event it shall be determined that any payment or distribution or benefit received or to be
received by Executive pursuant to the terms of this Agreement or any other payment or distribution
or benefit made or provided by the Company, or any of its Affiliates, to or for the benefit of
Executive (whether pursuant to this Agreement or otherwise and determined without regard to any
additional payments required under this Section 7) (a “Payment”) would be

12

 

subject to the excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended (the “Code”) or any interest or penalties are incurred by Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, is hereinafter
collectively referred to as the “Excise Tax”), then Executive shall be entitled to receive an
additional payment (a “Gross-Up Payment”) in an amount such that after payment by Executive of all
taxes (including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income and employment taxes (and any interest and penalties imposed with respect
thereto) and Excise Tax imposed upon the Gross-Up Payment, Executive retains an amount of the
Gross-Up Payment equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the
product of any deductions actually disallowed under Section 68 of the Code solely as a direct
result of the inclusion of the Gross-Up Payment in Executive’s adjusted gross income and the
highest applicable marginal rate of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made. For purposes of determining the amount of the Gross-Up Payment,
Executive shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal
income taxation for the calendar year in which the Gross-Up Payment is to be made and (ii) pay
applicable state and local income taxes at the highest marginal rate of taxation for the calendar
year in which the Gross-Up Payment is to be made, net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

          (ii) Subject to the provisions of Sections 7(i) and 7(iii), all determinations required to be
made under this Section 7, including whether and when a Gross-Up Payment is required and the amount
of such Gross-Up Payment and the assumptions to be utilized in arriving at such determination,
shall be made by the Company’s certified public accounting firm (the “Accounting Firm”), which
shall provide detailed supporting calculations both to the Company and Executive within 15 business
days of the receipt of notice from Executive or the Company that there has been a Payment, or such
earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be
borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 7, shall
be paid by the Company to Executive within five days of the receipt of the Accounting Firm’s
determination. Any determination by the Accounting Firm shall be binding upon the Company and
Executive. As a result of the uncertainty in the application of Section 4999 of the Code at the
time of the initial determination by the Accounting Firm hereunder, it is possible that Gross-Up
Payments which will not have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event that the Company
exhausts its remedies pursuant to Section 7(iii) and Executive thereafter is required to make a
payment of any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that
has occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit
of Executive.

          (iii) Executive shall notify the Company in writing of any claim by the U.S. IRS (the “IRS”)
that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten business days after
Executive is informed in writing of such claim and shall apprise the Company of the nature of such
claim and the date on which such claim is requested to be paid. Executive shall not pay such claim
prior to the expiration of the 30-day period following the date on which

13

 

Executive gives such notice to the Company (or such shorter period ending on the date that any
payment of taxes with respect to such claim is due). If the Company notifies Executive in writing
prior to the expiration of such period that it desires to contest such claim, Executive shall:

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

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

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

provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold Executive harmless, on an after-tax basis, for any Excise Tax or income and employment tax
(including interest and penalties with respect thereto) imposed as a result of such representation
and payment of costs and expenses. Without limitation on the foregoing provisions of this Section
7(iii), the Company shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its sole option, either
direct Executive to pay the tax claimed and sue for a refund or contest the claim in any
permissible manner, and Executive shall agree to prosecute such contest to a determination before
any administrative tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company directs Executive to
pay such claim and sue for a refund, the Company shall advance, to the extent permitted by
applicable law, the amount of such payment to Executive, on an interest-free basis and shall
indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income and
employment tax (including interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and provided further,
that any extension of the statute of limitations relating to payment of taxes for the taxable year
of Executive with respect to which such contested amount is claimed to be due is limited solely to
such contested amount. Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and Executive shall be
entitled to settle or contest, as the case may be, any other issue (an “Other Issue”) raised by the
IRS or any other taxing authority; provided, however, that if, solely as a result of any contest by
the Company pursuant to this Section 7(iii), Executive’s ability to settle or otherwise resolve any
such Other Issue is delayed, then the Company will reimburse Executive, on an after-tax basis, for
any additional interest incurred by Executive as a result of such delay.

          (iv) If, after the receipt by Executive of an amount advanced by the Company pursuant to
Section 7(iii), Executive becomes entitled to receive any refund with respect to such claim,
Executive shall (subject to the Company’s complying with the requirements of Section

14

 

7(iii)) promptly pay to the Company the amount of such refund (together with any interest paid
or credited thereon after taxes applicable thereto). If, after the receipt by Executive of an
amount advanced by the Company pursuant to Section 7(iii), a determination is made that Executive
shall not be entitled to any refund with respect to such claim and the Company does not notify
Executive in writing of its intent to contest such denial of refund prior to the expiration of 30
days after such determination, then such advance shall be forgiven and shall not be required to be
repaid and the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

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

          (a) if to the Company:

	 	 	 	669 River Road, Center 2

Elmwood Park, NJ 07407

Attention: Executive Vice President — General Counsel

          (b) if to Executive, to the address reflected in the Company’s payroll records.

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

          9. Miscellaneous.

15

 

          9.1 Entire Agreement. This Agreement, the WebMD Health Stock Option Agreement and the
WebMD Health Restricted Stock Agreement (as well as the various option agreements between Executive
and the Company entered into prior to the Effective Date and the plans under which such options
were granted) contain the entire understanding of the parties in respect of its subject matter and
this Agreement supersedes upon its effectiveness all other prior agreements and understandings
between the parties with respect to such subject matter (including, without limitation, the
Original Employment Agreement). To the extent there are inconsistencies between this Agreement and
such stock option and other plans and agreements the provisions of this Agreement shall govern.

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

          9.3 Binding Effect; Assignment. The rights and obligations of the Company under this
Agreement shall bind and inure to the benefit of any successor of the Company by reorganization,
merger or consolidation, or any assignee of all or substantially all of the Company’s business and
properties. Executive’s rights or obligations under this Agreement may not be assigned by
Executive, except that the right specified in Section 5.2 shall pass upon Executive’s death to
Executive’s executor or administrator.

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

          9.5 Governing Law; Interpretation. This Agreement shall be construed in accordance
with and governed for all purposes by the laws of the State of New Jersey.

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

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

16

 

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

          9.9 Legal Fees. In the event that Executive prevails in a legal proceeding (including
a mediation, arbitration or other form of dispute resolution) with the Company with respect to the
enforcement of the terms of this Agreement, the Company shall pay Executive’s reasonable legal fees
and costs.

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

	 	 	 	 	 
	 	 	WEBMD CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	     /s/ Kevin M. Cameron
	 

	 	 	 	 
	 

	 	 	 	Name: Kevin M. Cameron

	 

	 	 	 	Title: Chief Executive Officer
	 
	 	 	 	 
	 	 	     /s/ Martin J. Wygod
	 	 	 
	 	 	Martin J. Wygod

Accepted and Agreed:

WEBMD HEALTH HOLDINGS, INC

	 	 	 	 	 	 	 
	By:	 	/s/ Douglas W. Wamsley	 	 
	 	 	 	 	 
	 

	 	Name:  Douglas W. Wamsley

	 

	 	Title:  Executive Vice President

	 

	 	     
  	 	 

17Ex-10.1 August 1, 2005 Marketing Agreement

 

MARKETING AGREEMENT

     MARKETING AGREEMENT (hereinafter, the “Agreement”) made and entered into as of August 1, 2005,
by and between

HEALTH ALLIANCE NETWORK, INC., a New York corporation, with principal offices located at 1305
Mamaroneck Avenue, White Plains, NY 10605 (HAN), and

COMPREHENSIVE BEHAVIORAL CARE, INC., a Nevada corporation, with principal offices located at 204 S.
Hoover Boulevard, Suite 200, Tampa, Florida 33609 (collectively referred to, with its Affiliates,
as (CompCare);

WITNESSETH, THAT

WHEREAS,

	 	A.	 	CompCare has established a network of contracted physicians and other providers
of case management, pharmacy management services, disease management and integrated
behavioral healthcare services and products;
	 
	 	B.	 	CompCare’s Participating Providers have agreed to provide behavioral healthcare
services and products in exchange for discounted fees to the beneficiaries of
healthcare plans sponsored by payors who contract with CompCare for access to such
provider networks and other services provided by CompCare;
	 
	 	C.	 	HAN has contacts with insurance companies, unions, third party administrators
and other payors for healthcare services and products who desire to obtain access to
such behavioral healthcare services and products for their respective plan
beneficiaries on a discounted fee basis;
	 
	 	D.	 	CompCare has agreed to appoint HAN as its primary representative and marketing
agent for commercial (i.e., non-Medicaid and non-Medicare) business;
	 
	 	E.	 	HAN desires to market CompCare’s services and the CompCare Networks in the
commercial marketplace to Payors with which HAN has or may develop relationships; and
	 
	 	F.	 	HAN and CompCare desire to set forth the terms and conditions on which CompCare
has agreed to provide its services and to allow commercial market payors introduced to
it by HAN to contract for access to the CompCare Networks;

     NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements
herein set forth, and in reliance on the representations and warranties contained herein and
subject to the terms and conditions hereof, the parties hereto agree as follows:

1

 

1.   DEFINITIONS:

     For purposes of this Agreement, in addition to the terms elsewhere defined herein, the
following terms shall have the meaning indicated:

     1.1   “Affiliate” an Affiliate of a Person shall refer to (1) each officer and employee
of such Person, (2) any Person which is controlled by, controls, or is under common control with,
such Person, and (3) any Affiliate of any of the foregoing.

     1.2   “CompCare Network” shall mean (a) the network of Participating Providers who have
executed Provider Agreements with CompCare, and (b) any network of behavioral healthcare providers
that CompCare is leasing from any third party pursuant to a written agreement.

     1.3   “Covered Individual” shall mean all members, employees, covered dependents and
other Persons eligible to receive medical services under a Plan.

     1.4   “Most Favored National Pricing” shall mean the lowest price CompCare would offer
to any client when such client is not a Source introduced to CompCare by HAN. CompCare has sole
discretion in determining Most Favored Nation Pricing specific to any Service Agreement as such
pricing is contingent upon, among other things, CompCare’s understanding of the benefits to be
offered to the Source’s members and any available actuarial and/or utilization data.

     1.5   “Participating Providers” shall mean the physicians, hospitals and healthcare
facilities and other providers of behavioral healthcare services and/or products who have entered
into Provider Agreements with CompCare.

     1.6   “Person” shall mean an individual, corporation, limited liability company, limited
liability partnership, partnership, joint venture and other business entity of any kind.

     1.7   “Plan” shall mean a health insurance, managed care, self insured plan, or other
similar health benefit plan sponsored or issued by a Source and which may include workers
compensation, first party automobile medical liability, long-term or short-term disability and
health coverage.

     1.8   “Provider Agreements” shall mean the agreement between CompCare and providers of
behavioral healthcare services and/or products pursuant to which the Participating Provider agrees
to provide behavioral healthcare services and/or products to Covered Individuals in exchange for
discounted fees.

     1.9   “Source” shall mean the health insurance companies, employers, third party
administrators, labor unions and other Persons who pay for healthcare services and products, each
Affiliate of such Person, and any other Person, that has been introduced directly by HAN or any
Affiliate of HAN to CompCare. Each Source must be pre-registered in writing by HAN or an Affiliate
of HAN with CompCare and approved in advance and in writing by CompCare.

2

 

     1.10   “Services Agreement” shall refer to an agreement entered into by a Source with
HAN and/or CompCare, which has been pre-approved by HAN and CompCare, to provide access to the
CompCare Network and/or other services provided by CompCare.

2.   PROVISION OF SERVICES:

     2.1   CompCare hereby appoints HAN as its primary marketing and sales representative with
respect to all commercial (i.e., non-Medicaid and non-Medicare) business conducted by CompCare
during the Term of this Agreement. This does not preclude HAN from selling Medicare and
Medicaid business provided such business is pre-registered by HAN in the same manner required for
commercial business sales by HAN.

     2.2   For each Source that executes a Services Agreement with CompCare during the Term hereof,
CompCare shall provide the Covered Individuals under Plans sponsored by such Source with access to
Participating Providers in the CompCare Network and with access to CompCare’s other services on the
terms and subject to the conditions set forth in such Services Agreement.

     2.3   CompCare will agree to accept Most Favored Nation Pricing for all of the services provided
by CompCare to Sources introduced to CompCare by HAN. HAN will have the right to negotiate higher
than Most Favored Nation Pricing for specific Service Agreements with its Sources.

     2.4   CompCare shall perform all CompCare services in a timely fashion and in accordance with
the terms of the specific Service Agreement and standard operating practice of CompCare and will
provide monthly reports to the Source, with a copy to HAN, in the form defined by CompCare’s
Service Agreement with each Source. CompCare and HAN shall commit and utilize their available
resources for, and cooperate with each other in connection with, presentations and meetings with
potential Sources introduced to CompCare by HAN or its Affiliates. CompCare and HAN will mutually
agree to final Service Agreement pricing. All Service Agreements must be signed by CompCare and
the Source.

     2.5   CompCare’s Service Agreement with each Source shall govern the terms for billings to and
collection of monthly revenues from each Source.

     2.6   If a Source introduced to CompCare by HAN or a HAN Affiliate would like to contract with
CompCare or any of its Affiliates for network access or other services, then CompCare may enter
into a Services Agreement directly with such Source at the pricing (not less than Most Favored
Nation Pricing determined by CompCare) negotiated by HAN with such Source; provided that any such
direct Source Access agreement will be subject to all of the provisions of this Agreement; and
CompCare will give HAN a copy of the executed agreement within five days after it is executed by
the Source.

3

 

3.   RESPONSIBILITIES OF COMPCARE

     3.1   CompCare has entered into Provider Agreements with Participating Providers for the
provision of covered services to Covered Individuals. Although the Provider Agreement is not a
part of this Agreement, the applicable Provider Agreement executed by each Participating Provider
shall govern the relationship between CompCare and any Participating Provider.

     3.2   CompCare is responsible for recruiting and contracting with Participating Providers and
other providers of services offered by CompCare. All communications with Participating Providers
concerning the negotiation, execution or ongoing management and maintenance of Provider Agreements
will be conducted by or through CompCare.

     3.3   CompCare will develop appropriate policies, procedures, protocols and criteria
(collectively, the “Criteria”) for the CompCare Network in order to maintain the integrity of the
CompCare Network. CompCare will provide Participating Providers with such policies, procedures,
information and materials as needed to facilitate Participating Provider’s participation in the
CompCare Network and compliance with established policies and procedures; provided that any
Criteria shall be no more burdensome on HAN or its Sources than CompCare imposes on other of its
clients that do not originate with HAN.

     3.4   CompCare and HAN agree to the use of each other’s name in any marketing, advertising,
solicitation or educational material necessary to further the purposes of this Agreement. Each
party using the other’s name in such materials shall share said materials prior to distribution and
obtain the written consent of the other party whose name is used, which consent shall not be
withheld unreasonably. In all other respects, each party reserves the rights to, and the control
of, the use of their name and all symbols, trademarks, or service marks.

     3.5   CompCare shall provide such educational services to HAN as is reasonably appropriate in
connection with the implementation and operation of this Agreement. Additionally, CompCare shall
provide HAN with such reporting as is reasonably necessary to enable HAN to fulfill its obligations
under the Services Agreements. Such services shall be designed to assist each Source’s Covered
Individuals in their utilization of CompCare’s Participating Providers.

     3.6   If CompCare is required to make any filings by a State Department of Health or State
Department of Insurance, such filings shall be made by CompCare, unless otherwise directed by one
of the respective State Departments.

     3.7   CompCare is not an insurer, guarantor or underwriter of the liability of HAN and/or its
Sources and does not pay claims for covered services under any Plan (except that CompCare does pay
claims on behalf of Plan sponsors when CompCare is providing third party administrator services).
HAN acknowledges and agrees that CompCare is not an insurer, indemnifier or guarantor of payments
owed to Participating Providers in connection with this Agreement or the provision of healthcare,
behavioral healthcare, or other services or supplies under any Plan. Except as expressly set forth
in this Agreement or in any agreement entered into pursuant to this Agreement, CompCare shall have
no responsibility for any healthcare services or supplies or other services provided by
Participating Providers to any Covered Individual or to any other Person.

4

 

     3.8   CompCare shall hold HAN harmless against liability or any additional expenses incurred by
HAN if CompCare is determined by any federal, state, or local governmental authority to be engaged
in activities for which it has failed to obtain a necessary license or permit.

     3.9   During the term of this Agreement (as the same may be extended from time to time) and for
a one (1) year period thereafter, CompCare shall not, either directly or indirectly, for itself or
any third party, hire or solicit, induce, recruit, or cause a person in the employ of HAN or its
subsidiaries to terminate his/her employment by HAN or such subsidiary, for the purpose of joining,
associating or becoming employed by CompCare or any of CompCare’s Affiliates, or any other
company or person which is in competition with any product sold, or any business or activity
engaged in, by HAN at any time during the term of this Agreement without advanced written approval
of both parties.

4.   RESPONSIBILITIES OF HAN

     4.1   HAN shall use its good faith efforts to market and locate Sources who are interested in
contracting with CompCare for services provided by CompCare and its Participating Providers, and
will promptly pre-register such Sources in writing to CompCare for pre-approval by CompCare.

     4.2   HAN will employ a minimum of 1.5 FTEs who are experienced Sales Executives who will be
dedicated to the sale of CompCare’s behavioral health products. These Sales Executives will be
guided by HAN’s Owner and Chief Executive Officer and will be responsive to the direction and
inquiries of CompCare’s Chief Executive Officer or designee.

     4.3   HAN is not an insurer, guarantor, or underwriter of the liability of CompCare or its
Participating Providers and does not provide benefits to Covered Individuals or pay claims for
covered services under any Plan. CompCare acknowledges and agrees that HAN’s responsibilities
pursuant to this Agreement are administrative in nature and that HAN is not an insurer, indemnifier
or guarantor of payments owed to Participating Providers in connection with this Agreement or the
provision of behavioral healthcare services or supplies. Except as expressly set forth in this
Agreement or in any agreement entered into pursuant to this Agreement, HAN shall have no
responsibility for any behavioral healthcare services or supplies or other services provided by
CompCare or Participating Providers to any Covered Individual or to any other Person.

     4.4   HAN shall hold CompCare harmless against liability or any additional expenses incurred by
CompCare if HAN is determined by any federal, state, or local governmental authority to be engaged
in activities for which it has failed to obtain a necessary license or permit.

     4.5   During the term of this Agreement (as the same may be extended from time to time) and for
a one (1) year period thereafter, HAN shall not, either directly or indirectly, for itself or any
third party, hire or solicit, induce, recruit, or cause a person in the employ of CompCare or its
subsidiaries to terminate his/her employment by CompCare or such subsidiary, for the purpose of
joining, associating or becoming employed by HAN or any of HAN’s Affiliates, or any other company
or person which is in competition with any product sold, or any business or activity engaged in, by
CompCare at any time during the term of this Agreement without advanced written approval of both
parties.

5

 

5.   BILLING AND CONSIDERATION: 

     5.1   CompCare shall pay to HAN

	 	(a)	 	a fee (the “Cash Fee”) (computed as provided in SCHEDULE “A”,
Item A) with respect to all Service Agreements entered into during the Term of
this Agreement (as such Term may be extended from time to time), and
	 
	 	(b)	 	a Marketing Fee (computed as provided in SCHEDULE “A”, Item B)
during the initial 24 month Term.

     5.2   CompCare shall pay the Cash Fee to HAN from the payments received by CompCare from each
Source during each calendar month.

     5.3   CompCare shall pay to HAN all Cash Fee payments due HAN under this Agreement within twenty
(20) days after the date on which CompCare receives each payment from the Source. CompCare shall
not be obligated to pay Cash Fees to HAN unless and until it has received cleared or “good” funds
from the Source pursuant to the Services Agreement with such Source. If CompCare fails to pay Cash
Fees, when Cash Fees are due to HAN, within the period provided in this Section 5.3, then such past
due payments will bear interest at the annual interest rate announced by Citibank, NA from time to
time as its prime lending rate.

6.   TERM:

     6.1   This Agreement shall continue in effect for a twenty four (24) month period (the"Term”)
commencing on the date of this Agreement. At the end of the Term (as the same may have been
extended), this Agreement shall automatically renew on the same terms and conditions for subsequent
periods of twelve (12) months each unless (i) terminated in accordance with the terms of this
Agreement, or (ii) either party elects not to renew this Agreement at the end of its then current
Term by written notice given to the other at least sixty (60) days prior to the end of the then
current Term. As used in this Agreement, the “Term” of this Agreement shall include the initial
twenty four (24) month term and any subsequent extensions of the Term of this Agreement.

     6.2   Termination for Default. Either party may terminate this Agreement upon the occurrence of
an Event of Default as defined under Section 7.1 which remains uncured at the end of any applicable
grace period.

     6.3   Immediate Termination. Either party may terminate this Agreement immediately upon notice
to the other if the continuation of this Agreement by such party is found to be in violation of any
law or regulation applicable to such party which would subject such party to regulatory action,
criminal liability or material fines. The party electing to terminate this Agreement pursuant to
this Section 6.3 shall give the other party such advanced notice of the possibility of termination
as is reasonably possible under the circumstances.

     6.4   Notwithstanding
any provision contained in any agreement between HAN and/or CompCare and/or
a Source to the contrary, neither HAN nor CompCare shall take any action

6

 

to terminate any Services Agreement with respect to a Source or to refuse to renew any such
Services Agreement without first giving the other party at least 10 days written notice of such
intended action, unless the Source has breached the provisions of its Services Agreement and such
breach remains uncured at the end of any applicable grace period under such Services Agreement.

7.   DEFAULT AND TERMINATION:

     7.1   The occurrence of any of the following events shall constitute an “Event of Default” under
this Agreement:

	 	(a)	 	If CompCare fails to pay the Cash Fee or Marketing Fee or any
other amount payable to HAN when required by this Agreement, and such failure
remains uncured for more than ten (10) days after written notice of such breach
from HAN.
	 
	 	(b)	 	If a party fails to comply with any of its material obligations
under this Agreement (other than those obligations described in Section 7.1(a),
and such failure remains uncured for more than thirty (30) days after written
notice of such breach is given by the other party.
	 
	 	(c)	 	If a party’s representations or warranties were not true in any
material respect when made.
	 
	 	(d)	 	If a party ceases to conduct its operations in the normal course
of business.
	 
	 	(e)	 	If a receiver is appointed or applied for by a party.
	 
	 	(f)	 	If a petition under the Federal Bankruptcy Act is filed by or
against either party, or a party makes an assignment for the benefit of
creditors.
	 
	 	(g)	 	If the pre-established sales targets are not met by the last day
of the initial Term of this Agreement or thereafter.

     7.2   Remedies. Upon the occurrence of an Event of Default, the aggrieved party shall
be entitled to (a) terminate this Agreement. In the event of any dispute or controversy between
the parties arising out of or in connection with this Agreement, or with regard to performance of
any obligation hereunder by either party (other than a claim of non payment of any amount required
to be paid pursuant to this Agreement), the parties shall:

7

 

	 	(a)	 	In good faith continued to meet their respective obligations as
described in this Agreement, including but not limited to the performance of
services; and
	 
	 	(b)	 	Use reasonable efforts to settle such dispute or controversy
amicably by good faith negotiation for a period not to exceed 30 consecutive
days, commencing upon the receipt of written demand for negotiation setting forth
the basis of the dispute. After the expiration of the 30-day negotiation period,
either party may commence arbitration to resolve such dispute as set forth below.
All disputes or controversies which may arise between the parties hereto out of
or in relation to or in connection with this Agreement or the breach hereof shall
be finally settled by binding arbitration. Unless otherwise agreed to in writing
between the parties, such arbitration will be conducted by and in accordance with
the Rules of the American Arbitration Association, in the form pertaining at the
time the arbitration is initiated. Each party shall select an arbitrator, and
the two arbitrators so selected shall select a third arbitrator. If the two
arbitrators selected are unable to agree upon the name of a third arbitrator,
such third arbitrator shall be appointed from a panel in accordance with the
Rules of the American Arbitration Association. The parties shall use their best
efforts to complete the arbitration proceeding within 3 months from the
expiration of the negotiation period set forth above. Such arbitration shall be
conducted in White Plains, New York under the laws of the New York or such other
location as the parties may mutually agree in writing. Each party, without regard
to the outcome of such arbitration, shall be responsible for their own costs and
expenses of arbitration, including but not limited to the costs and expenses of
their own arbitrator. The non-prevailing party shall be responsible for the cost
and expenses of the third arbitrator. In the event there is no prevailing party,
the arbitrators shall determine the amount of the third arbitrator’s costs and
expenses for which the respective parties to this Agreement shall each be
responsible for fifty percent of such costs.

     7.3   Consequential Damages. Each party hereby waives any right that it might now have
or may in the future acquire to assert any claim against the other for consequential, punitive,
special or incidental damages, for lost profits, or for lost opportunity costs, or for
compensation, reimbursement, or damages on account of the loss of prospective profits or
anticipated sales, or on account of expenditures, investments, leases or commitments in connection
with the business or good will of such party, in connection with any breach by the other party of
its obligations under this Agreement.

     7.4   Modification of Restrictive Covenants. If a court of competent jurisdiction shall
determine that any covenant contained in Article 8 or 9 shall be enforceable only if limited to a
shorter period of time or to a smaller geographical area than is herein expressly provided, or
otherwise limited, then and in such event, such covenant shall be deemed to be limited to the
extent so determined to be enforceable, in the same manner and to the same extent as if such limits
were expressly provided herein. It is the intent of the parties that this Agreement be enforced to
the maximum extent permitted by applicable law

8

 

8.   RESTRICTIVE COVENANTS AND NON-CIRCUMVENTION — BY COMPCARE:

     8.1   CompCare recognizes that HAN’s contacts and relationships with its Sources and their
agents and representatives are extremely valuable business assets of HAN, and that any interference
with such relationships will cause material and irreparable harm to HAN.

     8.2   CompCare acknowledges that HAN has introduced, and will introduce, CompCare to one or more
Sources who may desire to enter into one or more business arrangements with CompCare, the CompCare
Network, or other Persons introduced to such Source by CompCare.

     8.3   CompCare agrees that during the Term of this Agreement (as the same may be extended
pursuant to Section 6 or by agreement of the parties) and for a two (2) year period thereafter,
neither it, nor any of CompCare’s Affiliates shall, without HAN’s prior written consent in each
instance, either directly or indirectly, negotiate with or enter into any agreement directly with
any Source.

     8.4   CompCare acknowledges that the restrictions contained in this Article 8 are necessary for
the reasonable protection of HAN and that HAN would not enter in to this Agreement or introduce
CompCare to any Source if CompCare did not agree to the provisions of this Article 8.

     8.5   During the Term of this Agreement, if CompCare desires to contract directly with any
Source for commercial, Medicaid, Medicare or any other type of business, then CompCare shall pay
HAN the compensation provided in Article 5 hereof.

     8.6   If any of the provisions of this Article 8 are breached by CompCare or any of its
Affiliates, then, as compensation for such breach, CompCare shall provide HAN with an accounting
of, and shall pay to HAN an amount equal to, all net revenues received by CompCare or its Affiliate
as a result of such breach.

     8.7   During the Term of this Agreement and during the twelve (12) month period
following the last day of the Term, CompCare will not, directly or indirectly, hire any
employee of HAN or solicit or induce an employee of HAN to leave HAN for employment with CompCare
or any other person, excluding through general solicitations of employment such as through the
newspaper or industry journals, unless approved in advance and in writing by HAN.

9.   RESTRICTIVE COVENANTS AND NON-CIRCUMVENTION — BY HAN:

     9.1   HAN recognizes that CompCare’s contacts and relationships with the Participating Providers
are extremely valuable business assets of CompCare, and that any interference with such
relationships will cause material and irreparable harm to CompCare.

     9.2   HAN acknowledges that CompCare has introduced HAN to the CompCare Network Providers and
certain strategic partners which may desire to enter into one or more business

9

 

arrangements with HAN or its Sources in which case HAN and its Sources must obtain the express
written consent of CompCare in advance of any such business arrangement.

     9.3   HAN agrees that during the Term of this Agreement (as the same may be extended pursuant to
Section 6 or by agreement of the parties) and for a two (2) year period thereafter, it, nor any of
HAN’s Affiliates shall, without CompCare’s prior written consent in each instance, either directly
or indirectly, negotiate with or enter into any agreement directly with any other managed
behavioral healthcare company.

     9.4   HAN agrees that during the Term of this Agreement (as the same may be extended pursuant to
Section 6 or by agreement of the parties) and for a two (2) year period thereafter, neither it nor
any of its Affiliates shall, without CompCare’s prior written consent in each instance, either
directly or indirectly, negotiate with or enter into any agreement for access to behavioral
healthcare services directly with the CompCare Network.

     9.5   HAN acknowledges that the restrictions contained in this Article 9 are necessary for the
reasonable protection of CompCare and that CompCare would not enter in to this Agreement or
introduce HAN to the CompCare Network if HAN did not agree to the provisions of this Article 9.

     9.6   If HAN or any Affiliate of HAN breaches any of the provisions of this Article 9, then, as
compensation for such breach, HAN shall provide CompCare with an accounting of, and shall pay to
CompCare an amount equal to, all net revenues received by HAN or its Affiliate as a result of such
breach.

     9.7   During the Term of this Agreement and during the twelve (12) month period following the
last day of the Term, HAN will not, directly or indirectly, hire any employee of CompCare or
solicit or induce an employee of CompCare to leave CompCare for employment with HAN or any other
person, excluding through general solicitations of employment such as through the newspaper or
industry journals, unless approved in advance and in writing by CompCare.

10.   CONFIDENTIALITY

     10.1   Definition. As used in this Section 10, the term Confidential Information means any
information or materials which is disclosed by one party or its Affiliates or agents (Disclosing
Party) to the other party or any of its Affiliates or agents (Receiving Party), either orally or in
writing, with respect to any aspect of the Disclosing Party’s business affairs. Such term
includes, without limitation, the Disclosing Party’s business records and plans, financial
statements and data, customer lists and records, trade secrets, technical information, products,
product and service design information, pricing structure and discounts, costs, computer programs
and listings, personnel data and other proprietary information of the Disclosing Party and its
subsidiaries. Such term also includes the identity of each Payor and of each Participating
Provider.

     10.2   Exclusions. The term Confidential Information does not include any information which: (a)
is generally known to the trade or the public at the time of disclosure by the Disclosing Party to
the Receiving Party; (b) becomes generally known to the trade or the public subsequent to the time
of such disclosure, provided such general knowledge was not the result of a breach of this

10

 

Agreement by the Receiving Party or its Affiliates; (c) is known to the Receiving Party at the
time of disclosure; (d) is obtained from a third party who, to the best knowledge of the Receiving
Party, is not under any obligation to keep such information confidential; or (e) is independently
developed by employee(s), agent(s), or representative(s) of the Receiving Party as a result of its
own efforts and not as a result of the disclosure of the same information by the Receiving Party.

     10.3   Treatment of Information. Each party understands and acknowledges that the other party’s
Confidential Information has been developed by such other party by the investment of significant
time, effort and expense and that the Confidential Information is a valuable, special and unique
asset of such other party and provides it with a significant competitive advantage. Therefore, no
Receiving Party nor its Affiliates shall copy or duplicate any Disclosing Party“s Confidential
Information or use any Disclosing Party=s Confidential Information for its=s own use or
benefit or any other commercial purpose other than performance of the Receiving Party“s
responsibilities (including related internal administrative functions) under this Agreement.
Additionally, each Receiving Party agrees to hold in confidence and not to disclose any of the
Disclosing Party’s Confidential Information to any person or entity without the Disclosing Party’s
prior written consent in each instance. Each Receiving Party will only disclose Confidential
Information to its agents, employees and representatives who need to know such information for the
purposes of enabling the Receiving Party to perform its obligations under this Agreement. Prior to
disclosing a Disclosing Party=s Confidential Information to any of its agents, employees or
representatives, each Receiving Party will advise such agent, employee or representative of this
confidentiality agreement and will have satisfied itself that such agent, employee or
representative will treat the Confidential Information in the manner required by this Agreement.

     10.4   Return of Information. Following termination of this Agreement, each party shall return
to the other any written Confidential Information, together with any copies or extracts of such
Confidential Information that belong to such other party. Any Confidential Information in the
possession of a Receiving Party or its agents, employees or representatives not so requested and
returned, and oral Confidential Information and writings based thereon, will be destroyed or will
be held by the Receiving Party and its agents, employees or representatives and kept subject to the
terms of this Agreement.

     10.5   Required Disclosure. If a Receiving Party, or its agents, employees or representatives
become legally compelled (by deposition, interrogatory, request for documents, subpoena or similar
process) to make a disclosure which would violate the terms of this Agreement, such party shall
provide the Disclosing Party with prompt prior written notice of such requirement so that the
Disclosing Party may seek a protective order or other appropriate remedy and/or waive compliance
with the terms of this Agreement.

     10.6   Permitted Disclosure. With respect to each CompCare Network that HAN and its Payors have
obtained access to pursuant to the provisions of this Agreement, HAN and its Payors may use
CompCare’s name, business address, business telephone number and such other information as is
deemed to be reasonably necessary or appropriate by HAN and its Payors for the purpose of informing
Payors and Eligible Persons about the CompCare Network.

11

 

11.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF COMPCARE: 

     CompCare represents and warrants to, and covenants with, HAN that:  

     11.1   CompCare is a corporation duly organized and validly existing under the laws of the State
of Nevada and has full corporate and legal power and authority to execute and deliver this
Agreement and perform its obligations hereunder and pursuant to the transactions contemplated
hereby and thereby.

     11.2   CompCare is not a party to, or subject to, or bound by any agreement or judgment, order,
writ, injunction or decree of any court or governmental body which contains any provisions which
would or could operate to prevent the carrying out of this Agreement or any of the transactions
contemplated thereby.

12.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF HAN:

     HAN represents and warrants to, and covenants with, CompCare that:

     12.1   HAN is a corporation duly organized, validly existing and in good standing under the laws
of the State of New York with full corporate power and authority to enter into this Agreement and
to perform its obligations hereunder.

     12.2   HAN is not a party to, or subject to, or bound by any agreement or judgment, order, writ,
injunction or decree of any court or governmental body which contains any provisions which would or
could operate to prevent the carrying out of this Agreement or any of the transactions contemplated
hereby.

     12.3   The execution, delivery and performance of this Agreement by HAN has been duly and
effectively authorized by its Board of Directors and each other person or entity having a right to
authorize, approve or consent to this Agreement.

13.   MISCELLANEOUS PROVISIONS: 

     13.1   Notices. Any notice given or required to be given pursuant to any provision of
this Agreement shall be in writing and shall either be personally delivered or sent by a reputable
commercial courier service guaranteeing overnight delivery, and shall be deemed to have been given
upon receipt if personally delivered, or, upon delivery to such courier, with delivery charges
prepaid, if sent by such a courier, in either case addressed to the following addresses:

	 	 	 	 	 
	 

	 	If to HAN:
	 	Health Alliance Network, Inc.
	 

	 	 	 	1305 Mamaroneck Avenue
	 

	 	 	 	White Plains, NY 10605
	 

	 	 	 	Attn: Anthony V. Milone

12

 

	 	 	 	 	 
	 

	 	If to CompCare:
	 	Comprehensive Care Corporation
	 

	 	 	 	204 S. Hoover Boulevard, Suite 200
	 

	 	 	 	Tampa, Florida 33609

	 

	 	 	 	Attn: Mary Jane Johnson

     Any party may change the address to which notices, requests, communications to such party
shall be delivered personally or mailed by giving notice thereof to the other parties hereto in the
manner herein provided. Notices shall be deemed given at the time they are delivered personally or
three days after they are mailed or sent in the manner set forth above.

     13.2   Survival of Representations. All statements contained herein shall be deemed to
be representations, warranties, covenants and agreements made by the respective parties to this
Agreement and shall survive the consummation of the transactions contemplated hereby.

     13.3   Confidentiality. Each party agrees that this Agreement and the materials and
information supplied by the parties in performing this Agreement shall be kept confidential, unless
specifically authorized otherwise in writing, and may not be distributed except for appropriate
activities related to the performance of this Agreement.

     13.4   Entire Agreement. This Agreement and the Exhibits and Schedules hereto and the
agreements referred to herein supersede all prior discussions and agreements between the parties
with respect to the matters contained herein and therein, and this Agreement and the Exhibits and
Schedules annexed hereto and the documents referred to herein contain the sole and entire agreement
between the parties hereto with respect to the transactions contemplated hereby.

     13.5   Amendments. No provision of this Agreement may be extended, changed, waived,
modified or amended unless the same is contained in a writing that is fully executed by the party
against whom such matter is asserted.

     13.6   Waiver. The waiver by either party of any breach of any provision of this
Agreement shall not be construed as a waiver of any subsequent breach of the same or any other
provision. A waiver on one occasion shall not be deemed to be a waiver on a future occasion. The
failure to exercise any right hereunder shall not operate as a waiver of such right.

     13.7   Execution in Counterparts. This Agreement may be executed simultaneously in two
or more counterparts, each of which shall be deemed an original and all of which together shall
constitute one and the same instrument.

     13.8   Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of New York applicable to contracts made and to be performed entirely
within such state.

     13.9   Headings. The subject headings at the beginning of the articles and Sections are
for convenience in locating the context, but are not part of the context. Unless otherwise
specifically set forth in this Agreement to the contrary, all references to Sections, Exhibits and
Schedules refer to portions of this Agreement.

13

 

     13.10   Expenses. Each party hereto shall bear its own expenses except as otherwise
provided herein, including, without limitation, liabilities or obligations for expenses, taxes or
fees incident to or arising out of the negotiation, preparation, approval or authorization of this
Agreement or the consummation (or preparation for the consummation) of the transactions
contemplated hereby, and all attorneys’ and accountants’ fees required by this
Agreement.

     13.11   Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be deemed to be prohibited or invalid under such applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity, and such
prohibition or invalidity shall not invalidate the remainder of such provision or the other
provisions of this Agreement.

     13.12   Successors and Assigns. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their respective heirs, successors and permitted assigns.

     13.13   Assignment. Except as provided in this Section 13.13, this Agreement may not be
assigned by either party hereto without the prior written consent of the other party, which consent
may be withheld for any or no reason. Each party may assign its rights under this Agreement to (i)
its Affiliates, (ii) any Person into which or with which it may be merged, and (iii) any Person
that acquires all or substantially all of its assets.

     13.14   Independent Contractors. The parties acknowledge that they are, and shall
remain, independent contractors and that the execution of this Agreement by each of them, does not
create, nor shall it be construed as creating, any relationship of principal and agent, of
partnership or joint-venture between them, and that neither party shall be severally or jointly
responsible for the acts of the other party. The parties also acknowledge that HAN has no dominion
or control over, or direct contractual agreement with, any Source, and has no control over the
relationship between any Eligible Person and any Source, or any of Source’s personnel, or the
administration of any Plan.

     13.15   Non-Exclusivity. No provision contained in this Agreement shall be construed to
require either party to this Agreement to deal exclusively with the other or to grant the other a
right of first refusal as to any business opportunity that is related or unrelated to the subject
matter of this Agreement.

14

 

     IN WITNESS WHEREOF, this Marketing Agreement has been executed as of the date and year first
above written.

	 	 	 	 	 
	 	COMPREHENSIVE BEHAVIORAL CARE, INC.

 	 
	 	By:  	/s/ Mary Jane Johnson
 	 
	 	 	Mary Jane Johnson,  President 	 
	Date:  August 3, 2005 	 	 	 
	 
	 	HEALTH ALLIANCE NETWORK, INC.

 	 
	 	By:  	Anthony V. Milone
 	 
	 	 	Anthony V. Milone, President 	 
	Date:  August 3, 2005 	 	 	 

15

 

	 	 	 	 	 

 SCHEDULE “A”

FEE SCHEDULE

A.   CASH FEE

     For each Services Agreement entered into during the Term by CompCare and a Source introduced
to CompCare by HAN or a HAN Affiliate which has been registered and approved by CompCare, CompCare
shall pay HAN a fee (the “Cash Fee”) with respect to services provided by CompCare to such Source
during the first five years of such Services Agreement (or any amendment, revision, extension or
replacement of such Services Agreement). The Cash Fee shall be computed with respect to revenues
actually collected by CompCare and shall be paid to HAN as and when such revenues are collected by
CompCare.

     The “Cash Fee” shall be computed for each Services Agreement and shall equal the sum of:

	 	(a)	 	3% of the gross revenues received by CompCare from such Services Agreement
computed at the Most Favored Nations Pricing rate as determined by CompCare for such
Services Agreement; plus
	 
	 	(b)	 	50% of gross revenues received by CompCare from such Services Agreement to the
extent that such gross revenues exceed 103% of the Most Favored Nations pricing for
such Services Agreement.

By way of example, if the Most Favored Nations Pricing is determined by CompCare to equal $2.0
million for a Services Agreement, and HAN negotiates at a price from the Source of $3.0
million, then CompCare shall pay to HAN a Cash Fee as follows:

	 	 	 	 	 
	 

	 	$2.0 million x 3%
	 	=$60,000
	 

	 	+ $940,000* x 50%
	 	=$470,000
	 

	 	 	 	 
	 

	 	TOTAL CASH FEE DUE HAN    
	 	=$530,000
	 

	 	 	 	 

B.   HAN MARKETING FEE

     CompCare shall pay HAN the following amounts (“Marketing Fee”) in addition to the Cash Fee:

     1.   During the initial 24 months of the Term of this Agreement (unless terminated early
pursuant to such Agreement), CompCare shall pay HAN a marketing fee of $15,000 each month
commencing on August 1, 2005. Such fee is inclusive of all HAN ordinary out-of-pocket expenses
except for those expenses related to travel for the purpose of sales. Extraordinary expenses
(e.g., Exhibits, entertainment, etc) will be paid if pre-approved by CompCare.

16

 

     2.   CompCare will pay HAN a bonus payment of $9,000 per quarter if CompCare reports quarterly
profits between $12,000 and $29,999 for any fiscal quarter. CompCare will pay HAN a bonus payment
of $21,000 per quarter if Compcare reports quarterly profits of $30,000 or more for any fiscal
quarter.

     3.   The parties shall review the Marketing Fee on a semi-annual basis to assess performance and
to determine whether to increase such fee as they may agree at such time.

     4.    Maximum payments to HAN, inclusive of all Cash Fees and Marketing Fees and bonuses, shall not
exceed $1,000,000 in any fiscal year.

17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]