Document:

<PAGE>   1

                           LOAN AND SECURITY AGREEMENT

                                     BETWEEN

                               SILICON VALLEY BANK

                                       AND

                              TRIPATH IMAGING, INC.

                          DATED AS OF JANUARY 31, 2000
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
1.  DEFINITIONS AND CONSTRUCTION.........................................     1

1.1.    DEFINITIONS......................................................     1
1.2.    ACCOUNTING AND OTHER TERMS.......................................     9

2.  LOAN AND TERMS OF PAYMENT............................................     9

2.1.    ADVANCES.........................................................     9
2.2.    OVERADVANCES.....................................................    10
2.3.    INTEREST RATES, PAYMENTS, AND CALCULATIONS.......................    10
2.4.    CREDITING PAYMENTS...............................................    10
2.5.    FEES.............................................................    11
2.6.    ADDITIONAL COSTS.................................................    11
2.7.    TERM.............................................................    12

3.  CONDITIONS OF LOANS..................................................    12

3.1.    CONDITIONS PRECEDENT TO INITIAL ADVANCE..........................    12
3.2.    CONDITIONS PRECEDENT TO ALL ADVANCES.............................    13

4.  CREATION OF SECURITY INTEREST........................................    13

4.1.    GRANT OF SECURITY INTEREST.......................................    13
4.2.    DELIVERY OF ADDITIONAL DOCUMENTATION REQUIRED....................    13
4.3.    RIGHT TO INSPECT.................................................    13

5.  REPRESENTATIONS AND WARRANTIES.......................................    14

5.1.    DUE ORGANIZATION AND QUALIFICATION...............................    14
5.2.    DUE AUTHORIZATION; NO CONFLICT...................................    14
5.3.    NO PRIOR ENCUMBRANCES............................................    14
5.4.    BONA FIDE ELIGIBLE ACCOUNTS......................................    14
5.5.    MERCHANTABLE INVENTORY...........................................    14
5.6.    INTELLECTUAL PROPERTY............................................    14
5.7.    NAME; LOCATION OF CHIEF EXECUTIVE OFFICE.........................    15
5.8.    LITIGATION.......................................................    15
5.9.    NO MATERIAL ADVERSE CHANGE IN FINANCIAL STATEMENTS...............    15
5.10.   SOLVENCY.........................................................    15
5.11.   REGULATORY COMPLIANCE............................................    15
5.12.   ENVIRONMENTAL CONDITION..........................................    15
5.13.   TAXES............................................................    16
5.14.   SUBSIDIARIES.....................................................    16
5.15.   GOVERNMENT CONSENTS..............................................    16
5.16.   FULL DISCLOSURE..................................................    16

6.  AFFIRMATIVE COVENANTS................................................    16

6.1.    GOOD STANDING....................................................    16
6.2.    GOVERNMENT COMPLIANCE............................................    16
6.3.    FINANCIAL STATEMENTS, REPORTS, CERTIFICATES......................    17
6.4.    INVENTORY; RETURNS...............................................    17
6.5.    TAXES............................................................    17
6.6.    INSURANCE........................................................    18
6.7.    PRINCIPAL DEPOSITORY.............................................    18
6.8.    QUICK RATIO......................................................    18
</TABLE>
<PAGE>   3
<TABLE>
<S>                                                                         <C>
6.9.    QUARTERLY NET LOSSES.............................................    18
6.10.   FURTHER ASSURANCES...............................................    19

7.  NEGATIVE COVENANTS...................................................    19

7.1.    DISPOSITIONS.....................................................    19
7.2.    CHANGES IN BUSINESS, OWNERSHIP, OR MANAGEMENT, BUSINESS LOCATIONS    19
7.3.    MERGERS OR ACQUISITIONS..........................................    19
7.4.    INDEBTEDNESS.....................................................    19
7.5.    ENCUMBRANCES.....................................................    19
7.6.    DISTRIBUTIONS....................................................    19
7.7.    INVESTMENTS......................................................    19
7.8.    TRANSACTIONS WITH AFFILIATES.....................................    20
7.9.    INTELLECTUAL PROPERTY AGREEMENTS.................................    20
7.9.    SUBORDINATED DEBT................................................    20
7.10.   INVENTORY........................................................    20
7.11.   COMPLIANCE.......................................................    20

8.  EVENTS OF DEFAULT....................................................    20

8.1.    PAYMENT DEFAULT..................................................    20
8.2.    COVENANT DEFAULT.................................................    20
8.3.    MATERIAL ADVERSE CHANGE..........................................    21
8.4.    ATTACHMENT.......................................................    21
8.5.    INSOLVENCY.......................................................    21
8.6.    OTHER AGREEMENTS.................................................    21
8.7.    SUBORDINATED DEBT................................................    22
8.8.    JUDGMENTS........................................................    22
8.9.    MISREPRESENTATIONS...............................................    22
8.10.   GUARANTY.........................................................    22

9.  BANK'S RIGHTS AND REMEDIES...........................................    22

9.1.    RIGHTS AND REMEDIES..............................................    22
9.2.    POWER OF ATTORNEY................................................    23
9.3.    ACCOUNTS COLLECTION..............................................    24
9.4.    BANK EXPENSES....................................................    24
9.5.    BANK'S LIABILITY FOR COLLATERAL..................................    24
9.6.    REMEDIES CUMULATIVE..............................................    24
9.7.    DEMAND; PROTEST..................................................    24

10.   NOTICES............................................................    24

11.   CHOICE OF LAW AND VENUE............................................    25

12.   GENERAL PROVISIONS.................................................    26

12.1.   SUCCESSORS AND ASSIGNS...........................................    26
12.2.   INDEMNIFICATION..................................................    26
12.3.   TIME OF ESSENCE..................................................    26
12.4.   SEVERABILITY OF PROVISIONS.......................................    26
12.5.   AMENDMENTS IN WRITING, INTEGRATION...............................    26
12.6.   COUNTERPARTS.....................................................    26
12.7.   SURVIVAL.........................................................    27
</TABLE>
<PAGE>   4
      This LOAN AND SECURITY AGREEMENT is entered into as of January 31, 2000,
by and between SILICON VALLEY BANK ("Bank"); and TRIPATH IMAGING, INC., a
Delaware corporation having its principal place of business at 780 Plantation
Drive, Burlington, North Carolina 27215 ("Borrower").

                                    RECITALS

      Borrower wishes to obtain credit from time to time from Bank, and Bank
desires to extend credit to Borrower. This Agreement sets forth the terms on
which Bank will advance credit to Borrower, and Borrower will repay the amounts
owing to Bank.

                                    AGREEMENT

      The parties agree as follows:

1.    DEFINITIONS AND CONSTRUCTION

      1.1.  Definitions.  As used in this Agreement, the following terms
shall have the following definitions:

            "ACCOUNTS" means all presently existing and hereafter arising
accounts, contract rights, and all other forms of obligations owing to Borrower
arising out of the sale or lease of goods (including, without limitation, the
licensing of software and other technology) or the rendering of services by
Borrower, whether or not earned by performance, and any and all credit
insurance, guaranties, and other security therefor, as well as all merchandise
returned to or reclaimed by Borrower and Borrower's Books relating to any of the
foregoing.

            "ADVANCE" OR "ADVANCES" means a loan advance under the Committed
Revolving Line.

            "AFFILIATE" means, with respect to any Person, any Person that owns
or controls directly or indirectly such Person, any Person that controls or is
controlled by or is under common control with such Person, and each of such
Person's senior executive officers, directors, partners and, for any Person that
is a limited liability company, such Persons, managers and members.

            "ASSET PURCHASE PLAN" shall mean the factoring arrangement pursuant
to the Non-Recourse Receivables Purchase Agreement between Borrower and Bank.

            "BANK EXPENSES" means all reasonable costs or expenses (including
reasonable attorneys' fees and expenses) incurred in connection with the
preparation, negotiation, administration, and enforcement of the Loan Documents;
and Bank's reasonable attorneys' fees and expenses incurred in amending,
enforcing or defending the Loan Documents, (including fees
<PAGE>   5
and expenses of appeal or review, or those incurred in any Insolvency
Proceeding) whether or not suit is brought.

            "BORROWER'S BOOKS" means all of Borrower's books and records
including, without limitation: ledgers; records concerning Borrower's assets or
liabilities, the Collateral, business operations or financial condition; and all
computer programs, or tape files, and the equipment, containing such
information.

            "BORROWING BASE" means an amount equal to eighty percent (80%) of
Eligible Accounts as determined by Bank with reference to the most recent
Borrowing Base Certificate delivered by Borrower.

            "BUSINESS DAY" means any day that is not a Saturday, Sunday, or
other day on which banks in the State of California are authorized or required
to close.

            "CLOSING DATE" means the date of this Agreement.

            "CODE" means the Delaware, North Carolina, Washington or other
applicable states' Uniform Commercial Code.

            "COLLATERAL" means all Intellectual Property Collateral and the
property described on Exhibit A attached hereto.

            "COMMITTED REVOLVING LINE" means a credit extension of up to Five
Million and No/100ths Dollars ($5,000,000).

            "CONTINGENT OBLIGATION" means, as applied to any Person, any direct
or indirect liability, contingent or otherwise, of that Person with respect to
(i) any indebtedness, lease, dividend, letter of credit or other obligation of
another, including, without limitation, any such obligation directly or
indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by
that Person, or in respect of which that Person is otherwise directly or
indirectly liable; (ii) any obligations with respect to undrawn letters of
credit issued for the account of that Person; and (iii) all obligations arising
under any interest rate, currency or commodity swap agreement, interest rate cap
agreement, interest rate collar agreement, or other agreement or arrangement
designated to protect a Person against fluctuation in interest rates, currency
exchange rates or commodity prices; provided, however, that the term "Contingent
Obligation" shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Contingent Obligation shall be
deemed to be an amount equal to the stated or determined amount of the primary
obligation in respect of which such Contingent Obligation is made or, if not
stated or determinable, the maximum reasonably anticipated liability in respect
thereof as determined by such Person in good faith; provided, however, that such
amount shall not in any event exceed the maximum amount of the obligations under
the guarantee or other support arrangement.

                                      -2-
<PAGE>   6
            "COPYRIGHTS" means any and all copyright rights, copyright
applications, copyright registrations and like protections in each work or
authorship and derivative work thereof, whether published or unpublished and
whether or not the same also constitutes a trade secret, now or hereafter
existing, created, acquired or held.

            "CREDIT EXTENSION" means each Advance of or any other extension of
credit by Bank for the benefit of Borrower hereunder.

            "CURRENT ASSETS" means, as of any applicable date, all amounts that
should, in accordance with GAAP, be included as current assets on the
consolidated balance sheet of Borrower and its Subsidiaries as at such date.

            "CURRENT LIABILITIES" means, as of any applicable date, all amounts
that should, in accordance with GAAP, be included as current liabilities on the
consolidated balance sheet of Borrower and its Subsidiaries, as at such date,
plus, to the extent not already included therein, all outstanding Credit
Extensions made under this Agreement, including all Indebtedness that is payable
upon demand or within one year from the date of determination thereof unless
such Indebtedness is renewable or extendable at the option of Borrower or any
Subsidiary to a date more than one year from the date of determination, but
excluding Subordinated Debt.

            "ELIGIBLE ACCOUNTS" means those Accounts that arise in the ordinary
course of Borrower's business that comply with all of Borrower's representations
and warranties to Bank set forth in Section 5.4; provided, that standards of
eligibility may be fixed and revised from time to time by Bank in Bank's
reasonable judgment and upon notification thereof to Borrower in accordance with
the provisions hereof. Unless otherwise agreed to by Bank in writing, Eligible
Accounts shall not include the following:

            (a) Accounts that the account debtor has failed to pay within ninety
(90) days of invoice date;

            (b) Accounts with respect to an account debtor, including
Affiliates, whose total obligations to Borrower exceed twenty-five percent (25%)
of all Accounts, except for Quest Diagnostics, f/k/a SmithKline Beecham and
Laboratory Corporation, for which the percentage may be thirty-five percent
(35%);

            (c) Accounts collected by deposit to a lockbox at any financial
institution other than Bank, unless Bank has entered into an intercreditor
agreement with such other financial institution in form acceptable to Bank
allowing Bank access to such Accounts;

            (d) Accounts with respect to which the account debtor does not have
its principal place of business in the United States, unless Borrower has
obtained foreign credit insurance or letters of credit acceptable to Bank;

            (e) Accounts with respect to which the account debtor is a federal,
state, or local governmental entity or any department, agency, or
instrumentality thereof;

                                      -3-
<PAGE>   7
            (f) Accounts with respect to which Borrower is liable to the account
debtor, for goods sold or services rendered by the account debtor to Borrower,
but only to the extent of any amounts owing to the account debtor (sometimes
referred to as "contra" accounts, e.g. accounts payable, customer deposits,
credit accounts, contract billings, advance billings, etc.) against amounts owed
to Borrower, provided, however this exclusion shall not include Accounts which
have customer deposits, which Account shall only be eligible to the extent of
all amounts in excess of the deposit;

            (g) Accounts generated by demonstration or promotional equipment, or
with respect to which goods are placed on consignment, guaranteed sale, sale or
return, sale on approval, bill and hold, or other terms by reason of which the
payment by the account debtor may be conditional;

            (h) Accounts with respect to which the account debtor is an
Affiliate, officer, employee, or agent of Borrower, other than HoffmanLaRoche,
provided its ownership percentage of Borrower does not exceed 15% of the issued
and outstanding capital stock of Borrower;

            (i) Accounts with respect to which the account debtor disputes
liability or makes any claim with respect thereto as to which Bank believes, in
its sole discretion, that there may be a basis for dispute (but only to the
extent of the amount subject to such dispute or claim), or is subject to any
Insolvency Proceeding, or becomes insolvent, or goes out of business; and

            (j) Accounts the collection of which Bank reasonably determines to
be doubtful by reason of the account debtor's financial condition; and

            (k) Accounts sold or transferred by Borrower pursuant to the Asset
Purchase Plan.

            "EQUIPMENT" means all present and future machinery, equipment,
tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which Borrower has any interest.

            "ERISA" means the Employment Retirement Income Security Act of 1974,
as amended, and the regulations thereunder.

            "GAAP" means generally accepted accounting principles as in effect
in the United States from time to time.

            "GUARANTOR" means any present or future guarantor of the
Obligations, including, without limitation, AutoCyte North Carolina LLC and Cell
Analysis Systems, Inc.

            "INDEBTEDNESS" means (a) all indebtedness for borrowed money or the
deferred purchase price of property or services, including without limitation
reimbursement and other obligations with respect to surety bonds and letters of
credit, (b) all obligations evidenced by

                                      -4-
<PAGE>   8
notes, bonds, debentures or similar instruments, (c) all capital lease
obligations and (d) all Contingent Obligations.

            "INSOLVENCY PROCEEDING" means any proceeding commenced by or against
any person or entity under any provision of the United States Bankruptcy Code,
as amended, or under any other bankruptcy or insolvency law, including
assignments for the benefit of creditors, formal or informal moratoria,
compositions, extension generally with its creditors, or proceedings seeking
reorganization, arrangement, or other relief.

            "INTELLECTUAL PROPERTY COLLATERAL" means

            (a)   Copyrights, Trademarks, Patents, and Mask Works;

            (b) Any and all trade secrets, and any and all intellectual property
rights in computer software and computer software products now or hereafter
existing, created, acquired or held;

            (c) Any and all design rights which may be available to Borrower now
or hereafter existing, created, acquired or held;

            (d) Any and all claims for damages by way of past, present and
future infringement of any of the rights included above, with the right, but not
the obligation, to sue for and collect such damages for said use or infringement
of the intellectual property rights identified above;

            (e) All licenses or other rights to use any of the Copyrights,
Patents, Trademarks, or Mask Works, and all license fees and royalties arising
from such use to the extent permitted by such license or rights;

            (f) All amendments, renewals and extensions of any of the
Copyrights, Trademarks, Patents, or Mask Works; and

            (g) All proceeds and products of the foregoing, including without
limitation all payments under insurance or any indemnity or warranty payable in
respect of any of the foregoing.

            "INVENTORY" means all present and future inventory in which Borrower
has any interest, including merchandise, raw materials, parts, supplies, packing
and shipping materials, work in process and finished products intended for sale
or lease or to be furnished under a contract of service, of every kind and
description now or at any time hereafter owned by or in the custody or
possession, actual or constructive, of Borrower, including such inventory as is
temporarily out of its custody or possession or in transit and including any
returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents
of title representing any of the above.

                                      -5-
<PAGE>   9
            "INVESTMENT" means any beneficial ownership of (including stock,
partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

            "IRC" means the Internal Revenue Code of 1986, as amended, and
the regulations thereunder.

            "LIEN" means any mortgage, lien, deed of trust, charge, pledge,
security interest or other encumbrance.

            "LOAN DOCUMENTS" means, collectively, this Agreement, any note or
notes executed by Borrower, and any other present or future agreement entered
into between Borrower and/or for the benefit of Bank in connection with this
Agreement, all as amended, extended or restated from time to time.

            "MASK WORKS" means all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired.

            "MATERIAL ADVERSE EFFECT" means a material adverse effect on (i) the
business operations or condition (financial or otherwise) of Borrower and its
Subsidiaries taken as a whole or (ii) the ability of Borrower to repay the
Obligations or otherwise perform its obligations under the Loan Documents.

            "MATURITY DATE" means January 31, 2001.

            "NEGOTIABLE COLLATERAL" means all of Borrower's present and future
letters of credit of which it is a beneficiary, notes, drafts, instruments,
securities, documents of title, and chattel paper.

            "NET INCOME (LOSS)" shall mean, for any fiscal period of Borrower,
the net income (or loss) of Borrower and its Subsidiaries on a consolidated
basis for such period (taken as a single accounting period) determined in
conformity with GAAP, after the payment or accrual of all Federal, state or
local taxes, but excluding therefrom (to the extent otherwise included therein
and without duplication): (i) any gains or losses, together with any related
provisions for taxes, realized by Borrower upon any sale of its assets other
than in the ordinary course of business, (ii) any other non-recurring gains or
losses, and (iii) any income or loss of any other Person acquired prior to the
date such other Person becomes a Subsidiary of Borrower or is merged into or
consolidated with Borrower or all or substantially all of such other Person's
assets are acquired by Borrower.

            "OBLIGATIONS" means all debt, principal, interest, Bank Expenses and
other amounts owed to Bank by Borrower pursuant to this Agreement or any other
agreement, whether absolute or contingent, due or to become due, now existing or
hereafter arising, including any interest that accrues after the commencement of
an Insolvency Proceeding and including any

                                      -6-
<PAGE>   10
debt, liability, or obligation owing from Borrower to others that Bank may have
obtained by assignment or otherwise.

            "PATENTS" means all patents, patent applications and like
protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

            "PAYMENT DATE" means the first calendar day of each month commencing
on the first such date after the Closing Date and ending on the Maturity Date.

            "PERMITTED INDEBTEDNESS" means:

            (a) Indebtedness of Borrower in favor of Bank arising under this
Agreement or any other Loan Document;

            (b) Indebtedness existing on the Closing Date and disclosed in the
Schedule;

            (c)   Subordinated Debt;

            (d) Indebtedness to trade creditors incurred in the ordinary course
of business; and

            (e) Indebtedness secured by Permitted Liens.

            "PERMITTED INVESTMENT" means:

            (a)   Investments existing on the Closing Date disclosed in the
Schedule; and

            (b) (i) marketable direct obligations issued or unconditionally
guaranteed by the United States of America or any agency or any State thereof
maturing within one (1) year from the date of acquisition thereof, (ii)
commercial paper maturing no more than one (1) year from the date of creation
thereof and currently having the highest rating obtainable from either Standard
& Poor's Corporation or Moody's Investors Service, Inc., and (iii) certificates
of deposit maturing no more than one (1) year from the date of investment
therein issued by Bank.

            "PERMITTED LIENS" means the following:

            (a) Any Liens existing on the Closing Date and disclosed in the
Schedule or arising under this Agreement or the other Loan Documents;

            (b) Liens for taxes, fees, assessments or other governmental charges
or levies, either not delinquent or being contested in good faith by appropriate
proceedings and as to which adequate reserves are maintained on Borrower's Books
in accordance with GAAP, provided the same have no priority over any of Bank's
security interests;

                                      -7-
<PAGE>   11
            (c) Liens (i) upon or in any Equipment acquired or held by Borrower
or any of its Subsidiaries to secure the purchase price of such Equipment or
indebtedness incurred solely for the purpose of financing the acquisition of
such Equipment, or (ii) existing on such equipment at the time of its
acquisition, provided that the Lien is confined solely to the property so
acquired and improvements thereon, and the proceeds of such equipment;

            (d) Leases or subleases and licenses or sublicenses granted to
others in the ordinary course of either Borrower's business not interfering in
any material respect with the business of Borrower and its Subsidiaries taken as
a whole, and any interest or title of a lessor, licensor or under any lease or
license provided that such leases, subleases, licenses and sublicenses do not
prohibit the grant of the security interest granted hereunder;

            (e) Sales and leasebacks relating to equipment and other assets
listed on the Schedules;

            (f) Liens incurred in connection with the extension, renewal or
refinancing of the indebtedness secured by Liens of the type described in
clauses (a) through (c) above, provided that any extension, renewal or
replacement Lien shall be limited to the property encumbered by the existing
Lien and the principal amount of the indebtedness being extended, renewed or
refinanced does not increase; and

            (g) Any liens securing Subordinated Debt.

            "PERSON" means any individual, sole proprietorship, partnership,
limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint
stock company, estate, entity or governmental agency.

            "PRIME RATE" means the variable rate of interest, per annum, most
recently announced by Bank, as its "prime rate," whether or not such announced
rate is the lowest rate available from Bank.

            "RESPONSIBLE OFFICER" means each of the Chief Executive Officer,
the President, the Chief Financial Officer and the Controller of Borrower.

            "SCHEDULE" means the schedule of exceptions attached hereto, if
any.

            "SUBORDINATED DEBT" means any debt incurred by Borrower that is
subordinated to the debt owing by Borrower to Bank on terms acceptable to Bank
(and identified as being such by Borrower and Bank).

            "SUBSIDIARY" means with respect to any Person, corporation,
partnership, company association, limited liability company, joint venture, or
any other business entity of which more than fifty percent (50%) of the voting
stock or other equity interests is owned or controlled, directly or indirectly,
by such Person or one or more Affiliates of such Person, including, but not
limited to the Subsidiary.

                                      -8-
<PAGE>   12
            "TOTAL LIABILITIES" means as of any applicable date, any date as of
which the amount thereof shall be determined, all obligations that should, in
accordance with GAAP be classified as liabilities on the consolidated balance
sheet of Borrower, including in any event all Indebtedness, but specifically
excluding Subordinated Debt.

            "TRADEMARKS" means any trademark and servicemark rights, whether
registered or not, applications to register and registrations of the same and
like protections, and the entire goodwill of the business of Assignor connected
with and symbolized by such trademarks.

      1.2. Accounting and Other Terms. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP and all calculations
and determinations made hereunder shall be made in accordance with GAAP. When
used herein, the term "financial statements" shall include the notes and
schedules thereto. The terms "including"/ "includes" shall always be read as
meaning "including (or includes) without limitation", when used herein or in any
other Loan Document.

2.    LOAN AND TERMS OF PAYMENT

      2.1. Advances. Borrower promises to pay to the order of Bank, in lawful
money of the United States of America, the aggregate unpaid principal amount of
all Advances made by Bank to Borrower hereunder. Borrower shall also pay
interest on the unpaid principal amount of such Advances at rates in accordance
with the terms hereof.

            2.1.1. Subject to and upon the terms and conditions of this
Agreement, Bank agrees to make Advances to Borrower in an aggregate outstanding
amount not to exceed the Committed Revolving Line or the Borrowing Base,
whichever is less, less any unpaid accounts receivables purchased or transferred
pursuant to the Asset Purchase Plan between Borrower and Bank. Subject to the
terms and conditions of this Agreement, amounts borrowed pursuant to this
Section 2.1 may be repaid and reborrowed at any time during the term of this
Agreement.

      Whenever Borrower desires an Advance, Borrower will notify Bank by
facsimile transmission or telephone no later than 3:00 p.m. Eastern time, on the
Business Day that the Advance is to be made. Each such notification shall be
promptly confirmed by a Payment/Advance Form in substantially the form of
Exhibit B hereto. Bank is authorized to make Advances under this Agreement,
based upon instructions received from a Responsible Officer or a designee of a
Responsible Officer, or without instructions if in Bank's discretion such
Advances are necessary to meet Obligations which have become due and remain
unpaid. Bank shall be entitled to rely on any telephonic notice given by a
person who Bank reasonably believes to be a Responsible Officer or a designee
thereof, and Borrower shall indemnify and hold Bank harmless for any damages or
loss suffered by Bank as a result of such reliance. Bank will credit the amount
of Advances made under this Section 2.1 to such Borrower's deposit account.

                                      -9-
<PAGE>   13
      The Committed Revolving Line shall terminate on the Maturity Date, at
which time all Advances under this Section 2.1 and other amounts due under this
Agreement (except as otherwise expressly specified herein) shall be immediately
due and payable.

      2.2. Overadvances. If, at any time or for any reason, the amount of
Obligations, less any unpaid accounts receivable purchased or transferred
pursuant to the Asset Purchase Plan between Borrower and Bank, owed by Borrower
to Bank pursuant to Section 2.1.1 of this Agreement is greater than the lesser
of (i) the Committed Revolving Line or (ii) the Borrowing Base, Borrower shall
immediately pay to Bank, in cash, the amount of such excess.

      2.3. Interest Rates, Payments, and Calculations.

            (a) Interest Rate. Except as set forth in Section 2.3(b), any
Advances shall bear interest, on the average daily balance thereof, at a per
annum rate equal to one (1.00) percentage point above the Prime Rate.

            (b) Default Rate. All Obligations shall bear interest, from and
after the occurrence of an Event of Default, at a rate equal to five (5.00)
percentage points above the interest rate applicable immediately prior to the
occurrence of the Event of Default.

            (c) Payments. Interest hereunder shall be due and payable on each
Payment Date. Borrower hereby authorizes Bank to debit any accounts with Bank,
including, without limitation, Account Number ________ for payments of principal
and interest due on the Obligations and any other amounts owing by Borrower to
Bank. Bank will notify Borrower of all debits which Bank has made against
Borrower's accounts. Any such debits against Borrower's accounts in no way shall
be deemed a set-off. Any interest not paid when due shall be compounded by
becoming a part of the Obligations, and such interest shall thereafter accrue
interest at the rate then applicable hereunder.

            (d) Computation. In the event the Prime Rate is changed from time to
time hereafter, the applicable rate of interest hereunder shall be increased or
decreased effective as of 12:01 a.m. on the day the Prime Rate is changed, by an
amount equal to such change in the Prime Rate. All interest chargeable under the
Loan Documents shall be computed on the basis of a three hundred sixty (360) day
year for the actual number of days elapsed.

      2.4. Crediting Payments. Prior to the occurrence of an Event of Default,
Bank shall credit a wire transfer of funds, check or other item of payment to
such deposit account or Obligation as Borrower specifies. After the occurrence
of an Event of Default, the receipt by Bank of any wire transfer of funds,
check, or other item of payment, whether directed to Borrower's deposit account
with Bank or to the Obligations or otherwise, shall be immediately applied to
conditionally reduce Obligations, but shall not be considered a payment in
respect of the Obligations unless such payment is of immediately available
federal funds or unless and until such check or other item of payment is honored
when presented for payment. Notwithstanding anything to the contrary contained
herein, any wire transfer or payment received by Bank after 2:00 p.m. Eastern
time shall be deemed to have been received by Bank as of the opening of

                                      -10-
<PAGE>   14
business on the immediately following Business Day. Whenever any payment to Bank
under the Loan Documents would otherwise be due (except by reason of
acceleration) on a date that is not a Business Day, such payment shall instead
be due on the next Business Day, and additional fees or interest, as the case
may be, shall accrue and be payable for the period of such extension.

      2.5. Fees. Borrower shall pay to Bank the following:

            (a) Facility Fee. A Facility Fee equal to Twenty-Five Thousand and
No/100ths ($25,000), $15,000 of which has been paid prior to closing leaving a
balance of $10,000 due at closing, which Facility Fee shall be fully earned and
non-refundable when paid.

            (b) Financial Examination and Appraisal Fees. Bank's customary fees
and out-of-pocket expenses for Bank's audits of Borrower's Accounts, and for
each appraisal of Collateral and financial analysis and examination of Borrower
performed from time to time by Bank or its agents, up to $10,000 per year; and

            (c) Bank Expenses. Upon demand from Bank, including, without
limitation, upon the date hereof, all Bank Expenses incurred through the date
hereof, including reasonable attorneys' fees and expenses (which shall not
exceed $10,000) and, after the date hereof, all Bank Expenses, including
reasonable attorneys' fees and expenses, as and when they become due.

      2.6. Additional Costs. In case any law, regulation, treaty or official
directive or the interpretation or application thereof by any court or any
governmental authority charged with the administration thereof or the compliance
with any guideline or request of any central bank or other governmental
authority (whether or not having the force of law):

            (a) subjects Bank to any tax with respect to payments of principal
or interest or any other amounts payable hereunder by Borrower or otherwise with
respect to the transactions contemplated hereby (except for taxes on the overall
net income of Bank imposed by the United States of America, any state, territory
thereof or any political subdivision thereof);

            (b) imposes, modifies or deems applicable any deposit insurance,
reserve, special deposit or similar requirement against assets held by, or
deposits in or for the account of, or loans by, Bank; or

            (c) imposes upon Bank any other condition with respect to its
performance under this Agreement, and the result of any of the foregoing is to
increase the cost to Bank, reduce the income receivable by Bank or impose any
expense upon Bank with respect to any loans, Bank shall notify Borrower thereof.
Upon such notification from Bank, Borrower agrees to pay to Bank the amount of
such increase in cost, reduction in income or additional expense as and when
such cost, reduction or expense is incurred or determined, upon presentation by
Bank of a statement of the amount and setting forth Bank's calculation thereof,
all in reasonable detail, which statement shall be deemed true and correct
absent manifest error.

                                      -11-
<PAGE>   15
      2.7. Term. Except as otherwise set forth herein, this Agreement shall
become effective on the Closing Date and, subject to Section 12.7, shall
continue in full force and effect for a term ending on the Maturity Date.
Notwithstanding the foregoing, Bank shall have the right to terminate its
obligation to make Credit Extensions under this Agreement immediately and
without notice upon the occurrence and during the continuance of an Event of
Default. Notwithstanding termination of this Agreement, Bank's lien on the
Collateral shall remain in effect for so long as any Obligations are
outstanding.

3.    CONDITIONS OF LOANS

      3.1. Conditions Precedent to Initial Advance. The obligation of Bank to
make the initial Advance is subject to the condition precedent that Bank shall
have received, in form and substance satisfactory to Bank, the following:

            (a) this Agreement;

            (b) a certificate of officer or manager, as applicable, of Borrower
with respect to articles of incorporation, bylaws, articles of organization,
operating agreement, incumbency and resolutions authorizing the execution and
delivery of this Agreement;

            (c) completion by Bank of an audit of Borrower's financial
condition, acceptable to Bank;

            (d) financing statements (Forms UCC-1);

            (e) insurance certificate;

            (f) payment of the fees and Bank Expenses then due specified in
Section 2.5 hereof;

            (g) Certificate of Good Standing and/or Foreign Qualification for
Borrower from the States of Delaware, North Carolina and Washington, and any
other state in which Borrower does business;

            (h) Certified Certificate of Incorporation of Borrower; and

            (i) a negative pledge security agreement;

            (j) an intellectual property security agreement;

            (k) guaranties and security agreements by the Guarantor(s);

            (l) Subordination Agreement with respect to approximately
$7,000,000 in notes payable to Meier Mitchell/TransAmerica; and

                                      -12-
<PAGE>   16
            (m) such other documents, and completion of such other matters, as
Bank may reasonably deem necessary or appropriate.

      3.2. Conditions Precedent to all Advances. The obligation of Bank to make
each Advance, including the initial Advance, is further subject to the following
conditions:

            (a) timely receipt by Bank of the Payment/Advance Form as provided
in Section 2.1; and

            (b) the representations and warranties contained in Section 5 shall
be true and correct in all material respects on and as of the date of such
Payment/Advance Form and on the effective date of each Advance as though made at
and as of each such date, and no Event of Default shall have occurred and be
continuing, or would result from such Advance. The making of each Advance shall
be deemed to be a representation and warranty by Borrower on the date of such
Advance as to the accuracy of the facts referred to in this Section 3.2(b).

4.    CREATION OF SECURITY INTEREST

      4.1. Grant of Security Interest. Borrower grants and pledges to Bank a
continuing security interest in all presently existing and hereafter acquired or
arising Collateral in order to secure prompt payment of any and all Obligations
and in order to secure prompt performance by Borrower of each of its covenants
and duties under the Loan Documents. Except as set forth in the Schedule, such
security interest constitutes a valid, first priority security interest in the
presently existing Collateral, and will constitute a valid, first priority
security interest in Collateral acquired after the date hereof. Borrower
acknowledges that Bank may place a "hold" on any Deposit Account pledged as
Collateral to secure the Obligations. Notwithstanding termination of this
Agreement, Bank's Lien on the Collateral shall remain in effect for so long as
any Obligations are outstanding.

      4.2. Delivery of Additional Documentation Required. Borrower shall from
time to time execute and deliver to Bank, at the request of Bank, all Negotiable
Collateral, all financing statements and other documents that Bank may
reasonably request, in form satisfactory to Bank, to perfect and continue
perfected Bank's security interests in the Collateral and in order to fully
consummate all of the transactions contemplated under the Loan Documents.

      4.3. Right to Inspect. Bank (through any of its officers, employees, or
agents) shall have the right, upon reasonable prior notice, from time to time
during Borrower's usual business hours, to inspect Borrower's Books and to make
copies thereof and to check, test, and appraise the Collateral in order to
verify Borrower's financial condition or the amount, condition of, or any other
matter relating to, the Collateral.

                                      -13-
<PAGE>   17
5.    REPRESENTATIONS AND WARRANTIES

      Borrower represents and warrants as follows:

      5.1. Due Organization and Qualification. Borrower is a corporation, duly
existing and in good standing under the laws of its state of organization and
qualified and licensed to do business in, and is in good standing in, any state
in which the conduct of its business or its ownership of property requires that
it be so qualified.

      5.2. Due Authorization; No Conflict. The execution, delivery, and
performance of the Loan Documents are within Borrower's powers, have been duly
authorized, and are not in conflict with nor constitute a breach of any
provision contained in Borrower's Certificate of Incorporation, bylaws, or other
governing documents, nor will they constitute an event of default under any
material agreement to which Borrower is a party or by which Borrower is bound.
Borrower is not in default under any agreement to which it is a party or by
which it is bound, which default could have a Material Adverse Effect.

      5.3.  No Prior Encumbrances.  Borrower has good and indefeasible title
to the Collateral, free and clear of Liens, except for Permitted Liens.

      5.4. Bona Fide Eligible Accounts. The Eligible Accounts are bona fide
existing obligations. The service or property giving rise to such Eligible
Accounts has been performed or delivered to the account debtor or to the account
debtor's agent for immediate shipment to and unconditional acceptance by the
account debtor. Borrower has not received notice of actual or imminent
Insolvency Proceeding of any account debtor whose accounts are included in any
Borrowing Base Certificate as an Eligible Account.

      5.5. Merchantable Inventory. All Inventory (less reserves) is in all
material respects of good and marketable quality, free from all material
defects.

      5.6. Intellectual Property. Except as set forth in Schedule 5.6, Borrower
is the sole owner of, or has the right to use, the Intellectual Property
Collateral, except for non-exclusive licenses granted by Borrower to its
customers in the ordinary course of business. Each of the Patents is valid and
enforceable, and no part of the Intellectual Property Collateral has been judged
invalid or unenforceable, in whole or in part, and no claim has been made that
any part of the Intellectual Property Collateral violates the rights of any
third party. Except for and upon the filing with the United States Patent and
Trademark Office with respect to the Patents and Trademarks and the Register of
Copyrights with respect to the Copyrights and Mask Works necessary to perfect
the security interests created hereunder, and except as has been already made or
obtained, no authorization, approval or other action by, and no notice to or
filing with, any United States governmental authority or United States
regulatory body is required either (i) for the grant by Borrower of the security
interest granted hereby or for the execution, delivery or performance of Loan
Documents by Borrower in the United States or (ii) for the perfection in the
United States or the exercise by Bank of its rights and remedies hereunder.

                                      -14-
<PAGE>   18
      5.7. Name; Location of Chief Executive Office. Except as disclosed in the
Schedule, Borrower has not done business and will not without at least thirty
(30) days prior written notice to Bank do business under any name other than
that specified on the signature page hereof. The chief executive office of
Borrower is located at the address indicated in Section 10 hereof.

      5.8. Litigation. Except as set forth in the Schedule, there are no actions
or proceedings pending, or, to each Borrower's knowledge, threatened by or
against Borrower or any Subsidiary before any court or administrative agency in
which an adverse decision could have a Material Adverse Effect or a material
adverse effect on Borrower's interest or Bank's security interest in the
Collateral.

      5.9. No Material Adverse Change in Financial Statements. All consolidated
financial statements related to Borrower and any Subsidiary that have been
delivered by Borrower to Bank fairly present in all material respects Borrower's
consolidated financial condition as of the date thereof and Borrower's
consolidated results of operations for the period then ended. There has not been
a material adverse change in the consolidated financial condition of Borrower
since the date of the most recent of such financial statements submitted to Bank
on or about the Closing Date.

      5.10. Solvency. The fair saleable value of Borrower's assets (including
goodwill minus disposition costs) exceeds the fair value of its liabilities; the
Borrower is not left with unreasonably small capital after the transactions
contemplated by this Agreement; and Borrower is able to pay its debts (including
trade debts) as they mature.

      5.11. Regulatory Compliance. Borrower has met the minimum funding
requirements of ERISA with respect to any employee benefit plans subject to
ERISA. No event has occurred resulting from Borrower's failure to comply with
ERISA that is reasonably likely to result in a Borrower incurring any liability
that could have a Material Adverse Effect. Borrower is not an "investment
company" or a company "controlled" by an "investment company" within the meaning
of the Investment Company Act of 1940. Borrower is not engaged principally, or
as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of
Regulations T and U of the Board of Governors of the Federal Reserve System).
Borrower has complied with all the provisions of the Federal Fair Labor
Standards Act. Borrower has not violated any statutes, laws, ordinances or rules
applicable to it, violation of which could have a Material Adverse Effect.

      5.12. Environmental Condition. None of Borrower's or any Subsidiary's
properties or assets has ever been used by Borrower or any Subsidiary or, to the
best of Borrower's knowledge, by previous owners or operators, in the disposal
of, or to produce, store, handle, treat, release, or transport, any hazardous
waste or hazardous substance other than in accordance with applicable law; to
the best of Borrower's knowledge, none of Borrower's properties or assets has
ever been designated or identified in any manner pursuant to any environmental
protection statute as a hazardous waste or hazardous substance disposal site, or
a candidate for closure pursuant to any environmental protection statute; no
lien arising under any environmental

                                      -15-
<PAGE>   19
protection statute has attached to any revenues or to any real or personal
property owned by Borrower or any Subsidiary; and Borrower nor any Subsidiary
has received a summons, citation, notice, or directive from the Environmental
Protection Agency or any other federal, state or other governmental agency
concerning any action or omission by Borrower or any Subsidiary resulting in the
release, or other disposition of hazardous waste or hazardous substances into
the environment.

      5.13. Taxes. Borrower and each Subsidiary has filed or caused to be filed
all tax returns required to be filed on a timely basis, and has paid, or has
made adequate provision for the payment of, all taxes reflected therein.

      5.14. Subsidiaries.  Borrower does not own any stock, partnership
interest or other equity securities or interests of any Person, except for
Permitted Investments.

      5.15. Government Consents. Borrower and each Subsidiary have obtained all
consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all governmental authorities that are necessary
for the continued operation of Borrower's business as currently conducted.

      5.16. Full Disclosure. No representation, warranty or other statement made
by Borrower in any certificate or written statement furnished to Bank contains
any untrue statement of a material fact or omits to state a material fact
necessary in order to make the statements contained in such certificates or
statements not misleading.

6.    AFFIRMATIVE COVENANTS

      Borrower covenants and agrees that, until payment in full of all
outstanding Obligations, and for so long as Bank may have any commitment to make
an Advance hereunder, Borrower shall do all of the following:

      6.1. Good Standing. Borrower shall maintain its and each of its
Subsidiaries' existence as a corporation or limited liability company, as the
case may be, and good standing in its jurisdiction of organization and maintain
qualification in each jurisdiction in which the failure to so qualify could have
a Material Adverse Effect. Borrower shall maintain, and shall cause each of its
Subsidiaries to maintain, to the extent consistent with prudent management of
Borrower's business, in force all licenses, approvals and agreements, the loss
of which could have a Material Adverse Effect.

      6.2. Government Compliance. Borrower shall meet, and shall cause each
Subsidiary to meet, the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA. Borrower shall comply, and shall
cause each Subsidiary to comply, with all statutes, laws, ordinances and
government rules and regulations to which it is subject, noncompliance with
which could have a Material Adverse Effect or a material adverse effect on the
Collateral or the priority of Bank's Lien on the Collateral.

                                      -16-
<PAGE>   20
      6.3. Financial Statements, Reports, Certificates. Borrower shall deliver
to Bank: (a) as soon as available, but in any event within thirty (30) days
after the end of each month, a company prepared consolidated balance sheet and
income statement covering Borrower's consolidated operations during such period,
in a form and certified by an officer or manager of a Borrower reasonably
acceptable to Bank; (b) as soon as available, but in any event within ninety
(90) days after the end of the Borrower's fiscal year, audited consolidated
financial statements of Borrower prepared in accordance with GAAP, consistently
applied, together with an unqualified opinion on such financial statements of an
independent certified public accounting firm reasonably acceptable to Bank; (c)
within five (5) days of filing, copies of all statements, reports and notices
sent or made available generally by each Borrower to its security holders or to
any holders of Subordinated Debt and all reports on Form 10-K, 10-Q and 8-K
filed with the Securities and Exchange Commission; (d) promptly upon receipt of
notice thereof, a report of any legal actions pending or threatened against a
Borrower or any Subsidiary that could result in damages or costs to a Borrower
or any Subsidiary of One Hundred Thousand Dollars ($100,000) or more; and (e)
such budgets, sales projections, operating plans or other financial information
as Bank may reasonably request from time to time.

            Within twenty (20) days after the last day of each month, Borrower
shall deliver to Bank a Borrowing Base Certificate signed by a Responsible
Officer in substantially the form of Exhibit C hereto, together with aged
listings of accounts receivable (aged by invoice date) and accounts payable.

            Borrower shall deliver to Bank with the monthly financial statements
a Compliance Certificate signed by a Responsible Officer in substantially the
form of Exhibit D hereto.

            Bank shall have a right from time to time hereafter to audit the
business of the Borrower at Borrower's expense, with the first audit to be
performed prior to the initial Advance; provided that such audits will be
conducted no more often than annually, unless an Event of Default has occurred
and is continuing.

      6.4. Inventory; Returns. Borrower shall keep all Inventory in good and
marketable condition, free from all material defects. Returns and allowances, if
any, as between Borrower and its account debtors shall be on the same basis and
in accordance with the usual customary practices of Borrower, as they exist at
the time of the execution and delivery of this Agreement. Borrower shall
promptly notify Bank of all returns and recoveries and of all disputes and
claims, where the return, recovery, dispute or claim involves more than Five
Hundred Thousand Dollars ($500,000).

      6.5. Taxes. Borrower shall make, and shall cause each Subsidiary to make,
due and timely payment or deposit of all material federal, state, and local
taxes, assessments, or contributions required of it by law, and will execute and
deliver to Bank, on demand, appropriate certificates attesting to the payment or
deposit thereof; and Borrower will make, and will cause each Subsidiary to make,
timely payment or deposit of all material tax payments and withholding

                                      -17-
<PAGE>   21
taxes required of it by applicable laws, including, but not limited to, those
laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and
federal income taxes, and will, upon request, furnish Bank with proof
satisfactory to Bank indicating that Borrower or a Subsidiary has made such
payments or deposits; provided that Borrower or a Subsidiary need not make any
payment if the amount or validity of such payment is (i) contested in good faith
by appropriate proceedings, (ii) is reserved against (to the extent required by
GAAP) by Borrower and (iii) no lien other than a Permitted Lien results.

      6.6. Insurance.

      Borrower, at its expense, shall keep the Collateral insured against loss
or damage by fire, theft, explosion, sprinklers, and all other hazards and
risks, and in such amounts, as ordinarily insured against by other owners in
similar businesses conducted in the locations where Borrower's business is
conducted on the date hereof. Borrower shall also maintain insurance relating to
Borrower's ownership and use of the Collateral in amounts and of a type that are
customary to businesses similar to Borrower's.

      All such policies of insurance shall be in such form, with such companies,
and in such amounts as are reasonably satisfactory to Bank. All such policies of
property insurance shall contain a lender's loss payable endorsement, in a form
satisfactory to Bank, showing Bank as an additional loss payee thereof and all
liability insurance policies shall show the Bank as an additional insured, and
shall specify that the insurer must give at least thirty (30) days notice to
Bank before canceling its policy for any reason. At Bank's request, Borrower
shall deliver to Bank certified copies of such policies of insurance and
evidence of the payments of all premiums therefor. All proceeds payable under
any such policy shall, at the option of Bank, be payable to Bank to be applied
on account of the Obligations.

      6.7.  Principal Depository.  Borrower shall each maintain its principal
depository and operating accounts with Bank.

      6.8. Quick Ratio. Borrower on a monthly basis shall maintain, as of the
last day of each calendar month, a ratio of cash, cash equivalents and Eligible
Accounts to Current Liabilities of at least 1.40 to 1.00.

      6.9. Quarterly Net Losses. Borrower's Net Losses, each quarter, shall not
exceed the amounts following for each time period:

<TABLE>
<CAPTION>
                  Time Period            Net Loss
                  -------------------------------------------
<S>                                     <C>
                  01/01/00 - 03/31/00   ($4,500,000)
                  -------------------------------------------
                  04/01/00 - 06/30/00   ($3,500,000)
                  -------------------------------------------
                  07/01/00 - 09/30/00   ($2,500,000)
                  -------------------------------------------
                  10/01/00 - 12/31/00   ($1,500,000)
                  -------------------------------------------
</TABLE>

                                      -18-
<PAGE>   22
      6.10. Further Assurances. At any time and from time to time Borrower shall
execute and deliver such further instruments and take such further action as may
reasonably be requested by Bank to effect the purposes of this Agreement.

7.    NEGATIVE COVENANTS

      Borrower covenants and agrees that, so long as any Advance hereunder shall
be available and until payment in full of the outstanding Obligations or for so
long as Bank may have any commitment to make any Advances, Borrower shall not do
any of the following without the Bank's prior written consent:

      7.1. Dispositions. Convey, sell, lease, transfer or otherwise dispose of
(collectively, a "Transfer"), or permit any of its Subsidiaries to Transfer, all
or any part of its business or property, other than Transfers: (i) of inventory
in the ordinary course of business, (ii) of non-exclusive licenses and similar
arrangements for the use of the property of Borrower or its Subsidiaries in the
ordinary course of business; (iii) that constitute payment of normal and usual
operating expenses in the ordinary course of business; (iv) of replaced,
worn-out or obsolete Equipment; or (v) pursuant to the Asset Purchase Plan.

      7.2.  Changes in Business, Ownership, or Management, Business
            Locations.  Engage in any business, or permit any of its
Subsidiaries to engage in any business, other than the businesses currently
engaged in by Borrower and any business substantially similar or related thereto
(or incidental thereto). Borrower will not, without at least thirty (30) days
prior written notification to Bank, relocate its chief executive office or add
any new offices or business locations.

      7.3. Mergers or Acquisitions. Merge or consolidate, or permit any of its
Subsidiaries to merge or consolidate, with or into any other business
organization, or acquire, or permit any of its Subsidiaries to acquire, all or
substantially all of the capital stock or property of another Person.

      7.4. Indebtedness. Create, incur, assume or be or remain liable with
respect to any Indebtedness, or permit any Subsidiary so to do, other than
Permitted Indebtedness.

      7.5. Encumbrances. Create, incur, assume or suffer to exist any Lien with
respect to any of its property, or assign or otherwise convey any right to
receive income, including the sale of any Accounts, or permit any of its
Subsidiaries so to do, except for Permitted Liens.

      7.6. Distributions. Pay any dividends or make any other distribution or
payment on account of or in redemption, retirement or purchase of any capital
stock; provided, however, Borrower shall be permitted to make Distributions for
Taxes.

      7.7.  Investments.  Directly or indirectly acquire or own, or make any
Investment in or to any Person, or permit any of its Subsidiaries so to do,
other than Permitted Investments.

                                      -19-
<PAGE>   23
      7.8. Transactions with Affiliates. Directly or indirectly enter into or
permit to exist any material transaction with any Affiliate of Borrower except
for transactions that are in the ordinary course of Borrower's business, upon
fair and reasonable terms that are no less favorable to Borrower than would be
obtained in an arm's length transaction with a non-affiliated Person.

      7.9. Intellectual Property Agreements. Borrower shall not permit the
inclusion in any material contract to which it becomes a party of any provisions
that could or might in any way prevent the creation of a security interest in
Borrower's rights and interests in any property included within the definition
of the Intellectual Property acquired under such contracts.

      7.9. Subordinated Debt. Make any payment in respect of any Subordinated
Debt, or permit any of its Subsidiaries to make any such payment, except in
compliance with the terms of such Subordinated Debt, or amend any provision
contained in any documentation relating to the Subordinated Debt without Bank's
prior written consent.

      7.10. Inventory. Store the Inventory with a bailee, warehouseman, or
similar party unless Bank has received a pledge of any warehouse receipt
covering such Inventory. Except for Inventory sold in the ordinary course of
business and except for such other locations as Bank may approve in writing or
as listed in Schedule 7.10, Borrower shall keep the Inventory only at the
location set forth in Section 10 hereof and such other locations of which
Borrower gives Bank prior written notice and as to which Borrower signs and
files a financing statement where needed to perfect Bank's security interest.

      7.11. Compliance. Become an "investment company" or a company controlled
by an "investment company," within the meaning of the Investment Company Act of
1940, or become principally engaged in, or undertake as one of its important
activities, the business of extending credit for the purpose of purchasing or
carrying margin stock, or use the proceeds of any Advance for such purpose; fail
to meet the minimum funding requirements of ERISA; permit a Reportable Event or
Prohibited Transaction, as defined in ERISA, to occur; fail to comply with the
Federal Fair Labor Standards Act or violate any other law or regulation, which
violation could have a Material Adverse Effect or a material adverse effect on
the Collateral or the priority of Bank's Lien on the Collateral; or permit any
of its Subsidiaries to do any of the foregoing.

8.    EVENTS OF DEFAULT

      Any one or more of the following events shall constitute an Event of
Default by Borrower under this Agreement:

      8.1. Payment Default. If Borrower fails to pay, when due, any of the
Obligations.

      8.2.  Covenant Default.  (a) If Borrower fails to perform any
obligation under Sections 6.3, 6.6, 6.7, 6.8 and 6.9 or violates any of the
covenants contained in Article 7 of this Agreement, or

                                      -20-
<PAGE>   24
            (b) If Borrower fails or neglects to perform, keep, or observe any
other material term, provision, condition, covenant, or agreement contained in
this Agreement, in any of the Loan Documents, or in any other present or future
agreement between Borrower and Bank and as to any default under such other term,
provision, condition, covenant or agreement that can be cured, has failed to
cure such default within ten (10) days after the occurrence thereof; provided,
however, that if the default cannot by its nature be cured within the ten (10)
day period or cannot after diligent attempts by Borrower be cured within such
ten (10) day period, and such default is likely to be cured within a reasonable
time, then Borrower shall have an additional reasonable period (which shall not
in any case exceed thirty (30) days) to attempt to cure such default, and within
such reasonable time period the failure to have cured such default shall not be
deemed an Event of Default (provided that no Advances will be required to be
made during such cure period);

      8.3. Material Adverse Change. If there (i) occurs a material adverse
change in the business, operations, or condition (financial or otherwise) of
Borrower, or (ii) is a material impairment of the prospect of repayment of any
portion of the Obligations or (iii) is a material impairment of the value or
priority of Bank's security interests in the Collateral;

      8.4. Attachment. If any material portion of Borrower's assets is attached,
seized, subjected to a writ or distress warrant, or is levied upon, or comes
into the possession of any trustee, receiver or person acting in a similar
capacity and such attachment, seizure, writ or distress warrant or levy has not
been removed, discharged or rescinded within ten (10) days, or if Borrower is
enjoined, restrained, or in any way prevented by court order from continuing to
conduct all or any material part of its business affairs, or if a judgment or
other claim becomes a lien or encumbrance upon any material portion of
Borrower's assets, or if a notice of lien, levy, or assessment is filed of
record with respect to any of any Borrower's assets by the United States
Government, or any department, agency, or instrumentality thereof, or by any
state, county, municipal, or governmental agency, and the same is not paid
within ten (10) days after Borrower receives notice thereof, provided that none
of the foregoing shall constitute an Event of Default where such action or event
is stayed or an adequate bond has been posted pending a good faith contest by
Borrower (provided that no Advances will be required to be made during such cure
period);

      8.5. Insolvency. If Borrower becomes insolvent, or if an Insolvency
Proceeding is commenced by Borrower, or if an Insolvency Proceeding is commenced
against Borrower and is not dismissed or stayed within 45 days (provided that no
Advances will be made prior to the dismissal of such Insolvency Proceeding);

      8.6. Other Agreements. If there is a default in any agreement to which
Borrower is a party with a third party or parties resulting in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of
any Indebtedness in an amount in excess of Five Hundred Thousand Dollars
($500,000) or that could have a Material Adverse Effect;

                                      -21-
<PAGE>   25
      8.7.  Subordinated Debt.  If Borrower makes any payment on account of
Subordinated Debt, except to the extent such payment is allowed under any
subordination agreement entered into with Bank;

      8.8. Judgments. If a judgment or judgments for the payment of money in an
amount, individually or in the aggregate, of at least One Hundred Thousand
Dollars ($100,000) shall be rendered against any Borrower and shall remain
unsatisfied and unstayed for a period of ten (10) days (provided that no
Advances will be made prior to the satisfaction or stay of such judgment);

      8.9. Misrepresentations. If any material misrepresentation or material
misstatement exists now or hereafter in any warranty or representation set forth
herein or in any certificate or writing delivered to Bank by Borrower or any
Person acting on Borrower's behalf pursuant to this Agreement or to induce Bank
to enter into this Agreement or any other Loan Document.

      8.10. Guaranty. Any guaranty of all or a portion of the Obligations ceases
for any reason to be in full force and effect, or any Guarantor fails to perform
any obligation under any guaranty of all or a portion of the Obligations, or any
material misrepresentation or material misstatement exists now or hereafter in
any warranty or representation set forth in any guaranty of all or a portion of
the Obligations or in any certificate delivered to Bank in connection with such
guaranty, or any of the circumstances described in Sections 8.4, 8.5 or 8.8
occur with respect to any Guarantor.

9.    BANK'S RIGHTS AND REMEDIES

      9.1. Rights and Remedies. Upon the occurrence and during the continuance
of an Event of Default, Bank may, at its election, without notice of its
election and without demand, do any one or more of the following, all of which
are authorized by Borrower:

            (a) Declare all Obligations, whether evidenced by this Agreement, by
any of the other Loan Documents, or otherwise, immediately due and payable
(provided that upon the occurrence of an Event of Default described in Section
8.5 all Obligations shall become immediately due and payable without any action
by Bank);

            (b) Cease advancing money or extending credit to or for the benefit
of Borrower under this Agreement or under any other agreement between any
Borrower and Bank;

            (c) Settle or adjust disputes and claims directly with account
debtors for amounts, upon terms and in whatever order that Bank reasonably
considers advisable;

            (d) Without notice to or demand upon Borrower, make such payments
and do such acts as Bank considers necessary or reasonable to protect its
security interest in the Collateral. Borrower agrees to assemble the Collateral
if Bank so requires, and to make the Collateral available to Bank as Bank may
designate. Borrower authorizes Bank to enter the premises where the Collateral
is located, to take and maintain possession of the Collateral, or any part of
it, and to pay, purchase, contest, or compromise any encumbrance, charge, or
lien which

                                      -22-
<PAGE>   26
in Bank's determination appears to be prior or superior to its security interest
and to pay all expenses incurred in connection therewith. With respect to any of
Borrower's premises, Borrower hereby grants Bank a license to enter such
premises and to occupy the same, without charge in order to exercise any of
Bank's rights or remedies provided herein, at law, in equity, or otherwise;

            (e) Without notice to Borrower set off and apply to the Obligations
any and all (i) balances and deposits of any Borrower held by Bank, or (ii)
indebtedness at any time owing to or for the credit or the account of any
Borrower held by Bank;

            (f) Ship, reclaim, recover, store, finish, maintain, repair, prepare
for sale, advertise for sale, and sell (in the manner provided for herein) the
Collateral. Bank is hereby granted a non-exclusive, royalty-free license or
other right, solely pursuant to the provisions of this Section 9.1, to use,
without charge, any of Borrower's labels, patents, copyrights, mask works,
rights of use of any name, trade secrets, trade names, trademarks, service
marks, and advertising matter, or any property of a similar nature, as it
pertains to the Collateral, in completing production of, advertising for sale,
and selling any Collateral and, in connection with Bank's exercise of its rights
under this Section 9.1, any of Borrower's rights under all licenses and all
franchise agreements shall inure to Bank's benefit;

            (g) Sell the Collateral at either a public or private sale, or both,
by way of one or more contracts or transactions, for cash or on terms, in such
manner and at such places (including Borrower's premises) as Bank determines is
commercially reasonable, and apply the proceeds thereof to the Obligations in
whatever manner or order it deems appropriate;

            (h) Bank may credit bid and purchase at any public sale, or at any
private sale as permitted by law; and

            (i) Any deficiency that exists after disposition of the Collateral
as provided above will be paid immediately by Borrower.

      9.2. Power of Attorney. Effective only upon the occurrence and during the
continuance of an Event of Default, Borrower hereby irrevocably appoints Bank
(and any of Bank's designated officers, or employees) as each Borrower's true
and lawful attorney to: (a) send requests for verification of Accounts or notify
account debtors of Bank's security interest in the Accounts; (b) endorse
Borrower's name on any checks or other forms of payment or security that may
come into Bank's possession; (c) sign Borrower's name on any invoice or bill of
lading relating to any Account, drafts against account debtors, schedules and
assignments of Accounts, verifications of Accounts, and notices to account
debtors; (d) make, settle, and adjust all claims under and decisions with
respect to Borrower's policies of insurance; and (e) settle and adjust disputes
and claims respecting the accounts directly with account debtors, for amounts
and upon terms which Bank determines to be reasonable; provided Bank may
exercise such power of attorney to sign the name of Borrower on any of the
documents described in Section 4.2 regardless of whether an Event of Default has
occurred. The appointment of Bank as Borrower's attorney in fact, and each and
every one of Bank's rights and powers, being coupled with an

                                      -23-
<PAGE>   27
interest, is irrevocable until all of the Obligations have been fully repaid and
performed and Bank's obligation to provide advances hereunder is terminated.

      9.3. Accounts Collection. Upon the occurrence and during the continuance
of an Event of Default, Bank may notify any Person owing funds Borrower of
Bank's security interest in such funds and verify the amount of such Account.
Borrower shall collect all amounts owing to Borrower for Bank, receive in trust
all payments as Bank's trustee, and if requested or required by Bank,
immediately deliver such payments to Bank in their original form as received
from the account debtor, with proper endorsements for deposit.

      9.4. Bank Expenses. If Borrower fails to pay any amounts or furnish any
required proof of payment due to third persons or entities, as required under
the terms of this Agreement, then Bank may do any or all of the following: (a)
make payment of the same or any part thereof; (b) set up such reserves under the
Committed Revolving Line as Bank deems necessary to protect Bank from the
exposure created by such failure; or (c) obtain and maintain insurance policies
of the type discussed in Section 6.6 of this Agreement, and take any action with
respect to such policies as Bank deems prudent. Any amounts so paid or deposited
by Bank shall constitute Bank Expenses, shall be immediately due and payable,
and shall bear interest at the then applicable rate hereinabove provided, and
shall be secured by the Collateral. Any payments made by Bank shall not
constitute an agreement by Bank to make similar payments in the future or a
waiver by Bank of any Event of Default under this Agreement.

      9.5. Bank's Liability for Collateral. So long as Bank complies with
reasonable banking practices, Bank shall not in any way or manner be liable or
responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage
thereto occurring or arising in any manner or fashion from any cause; (c) any
diminution in the value thereof; or (d) any act or default of any carrier,
warehouseman, bailee, forwarding agency, or other person whomsoever. All risk of
loss, damage or destruction of the Collateral shall be borne by Borrower.

      9.6. Remedies Cumulative. Bank's rights and remedies under this Agreement,
the Loan Documents, and all other agreements shall be cumulative. Bank shall
have all other rights and remedies not expressly set forth herein as provided
under the Code, by law, or in equity. No exercise by Bank of one right or remedy
shall be deemed an election, and no waiver by Bank of any Event of Default on
any Borrower's part shall be deemed a continuing waiver. No delay by Bank shall
constitute a waiver, election, or acquiescence by it. No waiver by Bank shall be
effective unless made in a written document signed on behalf of Bank and then
shall be effective only in the specific instance and for the specific purpose
for which it was given.

      9.7. Demand; Protest. Borrower waives demand, protest, notice of protest,
notice of default or dishonor, notice of payment and nonpayment, notice of any
default, nonpayment at maturity, release, compromise, settlement, extension, or
renewal of accounts, documents, instruments, chattel paper, and guarantees at
any time held by Bank on which Borrower may in any way be liable.

10.   NOTICES

                                      -24-
<PAGE>   28
      Unless otherwise provided in this Agreement, all notices or demands by any
party relating to this Agreement or any other agreement entered into in
connection herewith shall be in writing and (except for financial statements and
other informational documents which may be sent by first-class mail, postage
prepaid) shall be personally delivered or sent by a recognized overnight
delivery service, by certified mail, postage prepaid, return receipt requested,
or by telefacsimile to Borrower or to Bank, as the case may be, at its addresses
set forth below:

      If to Borrower:   TriPath Imaging, Inc.
                        780 Plantation Drive
                        Burlington, North Carolina   27215
                        Attn.:  Mr. Eric Linsley
                        FAX:  (336) 222-8819

      If to Bank        Silicon Valley Bank
                        3343 Peachtree Road
                        Suite 312
                        Atlanta, Georgia  30326
                        Attn.:  Mr. Andrew Rico
                        FAX: (404) 261-2202

      The parties hereto may change the address at which they are to receive
notices hereunder, by notice in writing in the foregoing manner given to the
other.

11.   CHOICE OF LAW AND VENUE

      The Loan Documents shall be governed by, and construed in accordance with,
the internal laws of the State of Georgia, without regard to principles of
conflicts of law. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER
AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY
OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
EACH PARTY RECOGNIZES AND AGREES THAT THE FOREGOING WAIVER CONSTITUTES A
MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS
AND WARRANTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT
KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL. THE BORROWER AND THE BANK ALSO AGREE THAT ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
OR TO ENFORCE ANY JUDGMENT OBTAINED AGAINST ANY BORROWER IN CONNECTION WITH THIS
AGREEMENT OR SUCH OTHER LOAN DOCUMENT, MAY BE BROUGHT BY THE BANK OR BORROWER IN
ANY STATE OR

                                      -25-
<PAGE>   29
FEDERAL COURT SITTING IN THE COUNTY OF THE STATE IN WHICH BANK'S ADDRESS SHOWN
IN SECTION 10 ABOVE IS LOCATED, OR IN ANY OTHER COURT TO THE JURISDICTION OF
WHICH SUCH BORROWER OR ANY OF ITS PROPERTY IS OR MAY BE SUBJECT. EACH OF THE
BORROWER AND THE BANK IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE AFORESAID
STATE AND FEDERAL COURTS, AND IRREVOCABLY WAIVES ANY PRESENT OR FUTURE OBJECTION
TO VENUE IN ANY SUCH COURT, AND ANY PRESENT OR FUTURE CLAIM THAT ANY SUCH COURT
IS AN INCONVENIENT FORUM, IN CONNECTION WITH ANY ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS.

12.   GENERAL PROVISIONS

      12.1. Successors and Assigns. This Agreement shall bind and inure to the
benefit of the respective successors and permitted assigns of each of the
parties; provided, however, that neither this Agreement nor any rights hereunder
may be assigned by Borrower without Bank's prior written consent, which consent
may be granted or withheld in Bank's sole discretion. Bank shall have the right
without the consent of or notice to Borrower to sell, transfer, negotiate, or
grant participation in all or any part of, or any interest in, Bank's
obligations, rights and benefits hereunder.

      12.2. Indemnification. Borrower shall, indemnify, defend, protect and hold
harmless Bank and its officers, employees, and agents against: (a) all
obligations, demands, claims, and liabilities claimed or asserted by any other
party in connection with the transactions contemplated by the Loan Documents;
and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by
Bank as a result of or in any way arising out of, following, or consequential to
transactions between Bank and Borrower whether under the Loan Documents, or
otherwise (including without limitation reasonable attorneys fees and expenses),
except for losses caused by Bank's gross negligence or willful misconduct.

      12.3. Time of Essence.  Time is of the essence for the performance of
all obligations set forth in this Agreement.

      12.4. Severability of Provisions. Each provision of this Agreement shall
be severable from every other provision of this Agreement for the purpose of
determining the legal enforceability of any specific provision.

      12.5. Amendments in Writing, Integration. This Agreement cannot be amended
or terminated except by a writing signed by Borrower and Bank. All prior
agreements, understandings, representations, warranties, and negotiations
between the parties hereto with respect to the subject matter of this Agreement,
if any, are merged into this Agreement and the Loan Documents.

      12.6. Counterparts. This Agreement may be executed in any number of
counterparts and by different parties on separate counterparts, each of which,
when executed and delivered,

                                      -26-
<PAGE>   30
shall be deemed to be an original, and all of which, when taken together, shall
constitute but one and the same Agreement.

      12.7. Survival. All covenants, representations and warranties made in this
Agreement shall continue in full force and effect so long as any Obligations
remain outstanding. The obligations of Borrower to indemnify Bank with respect
to the expenses, damages, losses, costs and liabilities described in Section
12.2 shall survive until all applicable statute of limitations periods with
respect to actions that may be brought against Bank have run.

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed, under seal, as of the date first above written.

                                       TRIPATH IMAGING, INC.

                                       By:  /s/ Eric Linsley            (SEAL)
                                          ------------------------------------
                                          Title:  CFO
                                                ------------------------------

                                       SILICON VALLEY BANK

                                       By: /s/ Andrew A. Rico
                                          ------------------------------------
                                          Title:  Vice President
                                                ------------------------------

                                      -27-
<PAGE>   31
                                    EXHIBIT A

      The Collateral consists of all of Borrowers' right, title and interest in
and to the following:

      All goods and equipment now owned or hereafter acquired, including,
without limitation, all machinery, fixtures, vehicles (including motor vehicles
and trailers), and any interest in any of the foregoing, and all attachments,
accessories, accessions, replacements, substitutions, additions, and
improvements to any of the foregoing, wherever located;

      All inventory, now owned or hereafter acquired, including, without
limitation, all merchandise, raw materials, parts, supplies, packing and
shipping materials, work in process and finished products including such
inventory as is temporarily out of Borrowers' custody or possession or in
transit and including any returns upon any accounts or other proceeds, including
insurance proceeds, resulting from the sale or disposition of any of the
foregoing and any documents of title representing any of the above;

      All contract rights and general intangibles now owned or hereafter
acquired, including, without limitation, goodwill, trademarks, servicemarks,
trade styles, trade names, patents, patent applications, leases, license
agreements, franchise agreements, blueprints, drawings, purchase orders,
customer lists, route lists, infringements, claims, computer programs, computer
discs, computer tapes, literature, reports, catalogs, design rights, income tax
refunds, payments of insurance and rights to payment of any kind;

      All now existing and hereafter arising accounts, contract rights,
royalties, license rights and all other forms of obligations owing to Borrowers
arising out of the sale or lease of goods, the licensing of technology or the
rendering of services by Borrowers, whether or not earned by performance, and
any and all credit insurance, guaranties, and other security therefor, as well
as all merchandise returned to or reclaimed by Borrowers;

      All documents, cash, deposit accounts, securities, securities
entitlements, securities accounts, investment property, financial assets,
letters of credit, certificates of deposit, instruments and chattel paper now
owned or hereafter acquired and Borrowers' Books relating to the foregoing;

      All copyright rights, copyright applications, copyright registrations and
like protections in each work of authorship and derivative work thereof, whether
published or unpublished, now owned or hereafter acquired; all trade secret
rights, including all rights to unpatented inventions, know-how, operating
manuals, license rights and agreements and confidential information, now owned
or hereafter acquired; all mask work or similar rights available for the
protection of semiconductor chips, now owned or hereafter acquired; all claims
for damages by way of any past, present and future infringement of any of the
foregoing; and

    All Borrowers' Books relating to the foregoing and any and all claims,
rights and interests in any of the above and all substitutions for, additions
and accessions to and proceeds thereof.

<PAGE>   32
                                  EXHIBIT B

                 LOAN PAYMENT/ADVANCE TELEPHONE REQUEST FORM DEADLINE FOR SAME
            DAY PROCESSING IS 3:00 P.M., E.S.T.

TO:  CENTRAL CLIENT SERVICE DIVISION                  DATE:___________________

FAX#:  (781)431-0755                                  TIME:___________________

FROM: TRIPATH IMAGING, INC.

FROM:_________________________________________________________________________
            AUTHORIZED SIGNER'S NAME

     _________________________________________________________________________
            AUTHORIZED SIGNATURE

PHONE:______________________________________________________________________

FROM ACCOUNT #____________________________________
TO ACCOUNT#___________________________________

<TABLE>
<CAPTION>
  REQUESTED TRANSACTION TYPE                    REQUEST DOLLAR AMOUNT
  __________________________                    _____________________

<S>                                             <C>
  PRINCIPAL INCREASE (ADVANCE)                  $_____________________________

  PRINCIPAL PAYMENT (ONLY)                      $____________________________

  INTEREST PAYMENT (ONLY)                       $_____________________________

  PRINCIPAL AND INTEREST (PAYMENT)              $____________________________
</TABLE>

  OTHER INSTRUCTIONS:__________________________________________________________

      All representations and warranties of Borrower stated in the Loan and
Security Agreement are true, correct and complete in all material respects as of
the date of the telephone request for and Advance confirmed by this Advance
Request; provided, however, that those representations and warranties expressly
referring to another date shall be true, correct and complete in all material
respects as of such date.

                                 BANK USE ONLY:
                               TELEPHONE REQUEST:

The following person is authorized to request the loan payment transfer/loan
advance on the advance designated account and is known to me.

 Authorized Requester
                                 ___________________________________

                                 Authorized Signature (Bank)
                                 Phone #____________________________
<PAGE>   33
                                    EXHIBIT C
                           BORROWING BASE CERTIFICATE

Borrower:  TRIPATH IMAGING, INC.                      Bank: Silicon Valley Bank

       Commitment Amount:     $5,000,000
--------------------------------------------------------------------------------
ACCOUNTS RECEIVABLE

<TABLE>
<S>                                                                           <C>                  <C>
      1.    Accounts Receivable Book Value as of                              $
                                                 --------                     ----------------
      2.    Additions (please explain on reverse)                             $
                                                                              ----------------
      3.    TOTAL ACCOUNTS RECEIVABLE                                         $
                                                                              ----------------

ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
      4.    Amounts over 90 days due           $
                                               -----------------
      5.    Balance of 50% over 90 day accounts                               $
                                                                              ----------------
      6.    Concentration Limits (35% for Quest and Laboratory Corporation)   $
                                                                              ----------------
      7.    Foreign Accounts                   $
                                               -----------------
      8.    Governmental Accounts              $
                                               -----------------
      9.    Contra Accounts                    $
                                               -----------------
      10.   Promotion or Demo Accounts                                        $
                                                                              ----------------
      11.   Intercompany/Employee Accounts     $
                                               -----------------
      12.   Other (please explain on reverse)  $
                                               -----------------
      13.   TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS                                                   $
                                                                                                   ----------------
      14.   Eligible Accounts (#3 minus #13)                                  $
                                                                              ----------------
      15.   LOAN VALUE OF ACCOUNTS (80% of #14)                                                    $
                                                                                                   ----------------

BALANCES
      16.   Maximum Loan Amount                                               $
                                                                              ----------------
      17.   Total Funds Available [Lesser of #16 or #15]                                           $
                                                                                                   ----------------
      18.   Present balance owing on Line of Credit                                                $
                                                                                                   ----------------
      19.   Outstanding under Sublimits (   )                                 $
                                                                              ----------------
     20.    RESERVE POSITION (#17 minus #18 and #19)                                               $
                                                                                                   ----------------
</TABLE>

The undersigned represents and warrants that the foregoing is true, complete and
correct, and that the information reflected in this Borrowing Base Certificate
complies with the representations and warranties set forth in the Loan and
Security Agreement between the undersigned and Silicon Valley Bank.
COMMENTS:

                                         ===============================
                                                    BANK USE ONLY
                                         RECEIVED BY:
                                                     --------------------
                                         DATE:
                                              ----------------
                                         REVIEWED BY:
                                                     -------------------
                                         COMPLIANCE STATUS:  YES / NO
                                         ===============================

TRIPATH IMAGING, INC.

By:
   -----------------------------
      Authorized Signer
<PAGE>   34
                                    EXHIBIT D
                             COMPLIANCE CERTIFICATE

TO:         SILICON VALLEY BANK
FROM:       TRIPATH IMAGING, INC.

      The undersigned authorized member of TRIPATH IMAGING, INC. hereby
certifies that in accordance with the terms and conditions of the Loan and
Security Agreement between each of the Borrower and Bank (the "Agreement"), (i)
the Borrower is in complete compliance for the period ending        with all
required covenants except as noted below and (ii) all representations and
warranties of the Borrower stated in the Agreement are true and correct in all
material respects as of the date hereof. Attached herewith are the required
documents supporting the above certification. The Member further certifies that
these are prepared in accordance with Generally Accepted Accounting Principles
(GAAP) and are consistently applied from one period to the next except as
explained in an accompanying letter or footnotes. The Member expressly
acknowledges that h no borrowings may be requested by the Borrower at any time
or date of determination that Borrower is not in compliance with any of the
terms of the Agreement, and that such compliance is determined not just at the
date this certificate is delivered.

 PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<TABLE>
<CAPTION>
      REPORTING COVENANT               REQUIRED                                    COMPLIES
      ------------------               --------                                    --------
<S>                                    <C>                                         <C>
      Monthly financial statements     Monthly within 30 days                      Yes   No
      Annual (CPA Audited)             FYE within 90 days                          Yes   No
      10Q and 10K                      Within 5 days after filing with the SEC     Yes   No
      A/R and Borrowing Base           Monthly within 20 days                      Yes   No
</TABLE>

<TABLE>
<CAPTION>
      FINANCIAL COVENANT                       REQUIRED        ACTUAL               COMPLIES
      ------------------                       --------        ------               --------
<S>                                            <C>         <C>                     <C>
      Maintain on a Monthly Basis:
         Minimum Quick Ratio                   1.40:1.0              :1.0          Yes   No
                                                              -------

      Maintain on a Quarterly Basis:
      Quarterly Net Losses not to exceed:
      1Q ($4,500,000)                                                   Yes   No
                                                            ----------
      2Q ($3,500,000)                                                   Yes   No
                                                            ----------
      3Q ($2,250,000)                                                   Yes   No
                                                            ----------
      4Q ($1,500,000)                                                   Yes   No
                                                            ----------
</TABLE>

                                         =====================================
                                                    BANK USE ONLY
                                         RECEIVED BY:
                                                     ---------------------
                                         DATE:
                                              ----------------
                                         REVIEWED BY:
                                                     ---------------------
                                         COMPLIANCE STATUS:  YES / NO
                                         =====================================

COMMENTS REGARDING EXCEPTIONS:

Sincerely,

-----------------------       Date:--------------
SIGNATURE

-----------------------
TITLE
<PAGE>   35
                     DISBURSEMENT REQUEST AND AUTHORIZATION

Borrower:   TRIPATH IMAGING, INC.                   Bank:  Silicon Valley Bank
--------------------------------------------------------------------------------

LOAN TYPE.  This is a Variable Rate, Revolving Line of Credit of a principal
amount up to $5,000,000.

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for business.

SPECIFIC PURPOSE.  The specific purpose of this loan is:  working capital

DISBURSEMENT INSTRUCTIONS. Borrower understand that no loan proceeds will be
disbursed until all of Bank's conditions for making the loan have been
satisfied. Please disburse the loan proceeds as follows:

<TABLE>
<CAPTION>
      Revolving Line
      --------------
<S>                                                              <C>
      Amount paid to Borrower directly:                          $
                                                                  -------
      Undisbursed Funds                                          $
                                                                  -------
      Principal                                                  $
                                                                  -------
</TABLE>

CHARGES PAID IN CASH.  Borrower has paid or will pay in cash as agreed the
following charges:

<TABLE>
<S>                                                                     <C>
      Prepaid  Finance Charges Paid in Cash:                            $10,000.00
           $25,000.00   Initial Loan Fee ($15,000 previously paid)
      $                 Accounts Receivables Audit

      Other Charges Paid in Cash:                                       $10,632.25
            $  426.00   UCC Search Fees
           $10,206.25   Outside Counsel Fees and Expenses

      Total Charges Paid in Cash                                        $20,632.25
</TABLE>

AUTOMATIC PAYMENTS. Borrower hereby authorizes Bank automatically to deduct from
Borrower's account numbered       the amount of any loan payment. If the funds
                            ------
in the account are insufficient to cover any payment, Bank shall not be
obligated to advance funds to cover the payment.

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND
WARRANTS TO BANK THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS
DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO BANK. THIS
AUTHORIZATION IS DATED AS OF JANUARY 25, 2000.

BORROWER:

------------------------------------
Authorized Signature
<PAGE>   36
                         AGREEMENT TO PROVIDE INSURANCE

GRANTOR:    TRIPATH IMAGING, INC.                     BANK: Silicon Valley Bank
--------------------------------------------------------------------------------

      INSURANCE REQUIREMENTS.   TRIPATH IMAGING, INC. ("Grantor") understands
that insurance coverage is required in connection with the extending of a
loan or the providing of other financial accommodations to Grantor by Bank.
These requirements are set forth in the Loan Documents.  The following
minimum insurance coverages must be provided on the following described
collateral (the "Collateral"):

      Collateral:   All Inventory, Equipment and Fixtures.
      Type:         All risks, including fire, theft and liability.
      Amount:       Full insurable value.
      Basis:        Replacement value.
      Endorsements: Loss payable clause to Bank with stipulation that coverage
                    will not be cancelled or diminished without a minimum of
                    twenty (20) days' prior written notice to Bank.

      INSURANCE COMPANY. Grantor may obtain insurance from any insurance company
Grantor may choose that is reasonably acceptable to Bank. Grantor understands
that credit may not be denied solely because insurance was not purchased through
Bank.

      FAILURE TO PROVIDE INSURANCE. Grantor agrees to deliver to Bank, on or
before closing, evidence of the required insurance as provided above, with an
effective date of January 25, 2000, or earlier. Grantor acknowledges and agrees
that if Grantor fails to provide any required insurance or fails to continue
such insurance in force, Bank may do so at Grantor's expense as provided in the
Loan and Security Agreement. The cost of such insurance, at the option of Bank,
shall be payable on demand or shall be added to the indebtedness as provided in
the security document. GRANTOR ACKNOWLEDGES THAT IF BANK SO PURCHASES ANY SUCH
INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE
TO THE COLLATERAL, UP TO THE BALANCE OF THE LOAN; HOWEVER, GRANTOR'S EQUITY IN
THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT PROVIDE
ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE
REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS.

      AUTHORIZATION. For purposes of insurance coverage on the Collateral,
Grantor authorizes Bank to provide to any person (including any insurance agent
or company) all information Bank deems appropriate, whether regarding the
Collateral, the loan or other financial accommodations, or both.

      GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT
TO PROVIDE INSURANCE AND AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED
JANUARY 25, 2000.

GRANTOR:

x
  --------------------------------
  Authorized Member
================================================================================

                                FOR BANK USE ONLY
                             INSURANCE VERIFICATION
DATE:                                                      PHONE:
AGENT'S NAME:
INSURANCE COMPANY:
POLICY NUMBER:
EFFECTIVE DATES:
COMMENTS:
================================================================================<PAGE>   1
                                                                    EXHIBIT 10.1

                              AMENDED AND RESTATED

                               OPERATING AGREEMENT

                                       OF

                             THE HEALTH NETWORK LLC

                                JANUARY 26, 2000

THE OWNERSHIP INTERESTS IN THIS LIMITED LIABILITY COMPANY HAVE NOT BEEN
REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR STATE SECURITIES
AUTHORITIES AND MAY NOT BE SOLD OR REGISTERED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND ANY
APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL ACCEPTABLE TO THE
COMPANY THAT REGISTRATION IS NOT REQUIRED. THE SALE OR OTHER TRANSFER OF THE
OWNERSHIP INTERESTS IS ALSO RESTRICTED BY PROVISIONS OF THIS AGREEMENT AND
RELATED AGREEMENTS.

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                                         PAGE
<S>           <C>                                                                                           <C>
ARTICLE I     DEFINITIONS...................................................................................1

ARTICLE II    FORMATION.....................................................................................8
2.1           Formation.....................................................................................8
2.2           Name..........................................................................................8
2.3           Office and Agent..............................................................................8
2.4           Purposes......................................................................................9
2.5           Powers........................................................................................9
2.6           Ownership of Property.........................................................................9
2.7           Qualification in Other Jurisdictions..........................................................9

ARTICLE III   CAPITAL.......................................................................................9
3.1           Initial Capital Contributions by Members; Initial Capital Accounts;
              Initial Tax Basis in Assets.................................................................. 9
3.2           Percentage Interests.........................................................................10
3.3           Additional Capital...........................................................................10
3.4           Capital Accounts.............................................................................11
3.5           Allocation of Items of Company Income, Gain, Loss, Deduction and Credit......................12
3.6           Distributions................................................................................16
3.7           Withholding..................................................................................16
3.8           Distribution Limitation......................................................................16
3.9           Company Funds................................................................................16
3.10          Capital Contribution.........................................................................16

ARTICLE IV    MANAGEMENT...................................................................................16
4.1           Management of the Company's Business.........................................................16
4.2           Board........................................................................................17
4.3           Budget Approval..............................................................................18
4.4           Actions by Members...........................................................................19
4.5           Managing Member's Services and Expenses......................................................21
4.6           Indemnification..............................................................................21
4.7           Officers.....................................................................................22

ARTICLE V     LIABILITY OF A MEMBER........................................................................23
5.1           Limited Liability............................................................................23
5.2           Capital Contribution.........................................................................23
5.3           Reliance.....................................................................................23

ARTICLE VI    REPRESENTATIONS AND WARRANTIES...............................................................23
6.1           Due Incorporation; Authorization.............................................................24
6.2           No Conflict..................................................................................24
</TABLE>

                                 -i-

<PAGE>   3

<TABLE>

<S>           <C>                                                                                          <C>
6.3           No Conflict; No Default......................................................................24
6.4           Unregistered Interests.......................................................................24

ARTICLE VII   BOOKS AND RECORDS; REPORTS TO MEMBERS........................................................25
7.1           Books and Records............................................................................25
7.2           Financial Reports; Subscriber Reports........................................................25
7.3           Tax Returns and Information..................................................................26

ARTICLE VIII  COMPANY INTERESTS; RESTRICTIONS ON TRANSFER..................................................26
8.1           Transfer.....................................................................................26
8.2           Admission as a Member........................................................................27
8.3           No Right to Withdraw.........................................................................27
8.4           Corporate Conversion.........................................................................27
8.5           Put/Call.....................................................................................28

ARTICLE IX    DISSOLUTION AND LIQUIDATION..................................................................29
9.1           Dissolution..................................................................................29
9.2           Exclusive Means of Dissolution...............................................................29
9.3           Liquidation..................................................................................29
9.4           Priority of Payment..........................................................................29
9.5           Liquidating Distributions....................................................................30
9.6           No Restoration Obligation....................................................................30
9.7           Timing.......................................................................................30
9.8           Liquidating Reports..........................................................................30
9.9           Certificate of Cancellation..................................................................30

ARTICLE X     ADDITIONAL AGREEMENTS........................................................................31
10.1          Licenses.....................................................................................31

ARTICLE XI    MISCELLANEOUS................................................................................31
11.1          Waiver of Partition..........................................................................31
11.2          Modification; Waivers........................................................................31
11.3          Entire Agreement.............................................................................31
11.4          Severability.................................................................................31
11.5          Notices......................................................................................31
11.6          Successors and Assigns.......................................................................32
11.7          Counterparts.................................................................................33
11.8          Headings; Cross-references...................................................................33
11.9          Construction.................................................................................33
11.10         Property Rights; Confidentiality.............................................................33
11.11         Further Actions..............................................................................33
11.12         Governing Law; Forum.........................................................................33
11.13         Expenses of the Parties......................................................................34
</TABLE>

                                      -ii-

<PAGE>   4

                              AMENDED AND RESTATED

                               OPERATING AGREEMENT

                                       OF

                             THE HEALTH NETWORK LLC

         THIS AMENDED AND RESTATED OPERATING AGREEMENT is made as of the 26th
day of January, 2000, by and between Healtheon Web/MD Cable Corporation, a
Delaware corporation and wholly-owned subsidiary of Healtheon/WebMD Corporation
("Healtheon/WebMD"), (together with any of its Affiliate Transferees (as
hereinafter defined), the "Healtheon Member"), and AHN/FIT Cable, LLC, a
Delaware limited liability company (together with any of its Affiliate
Transferees (as hereinafter defined), the "Fox Member," and together with the
Healtheon Member, the "Members").

                              W I T N E S S E T H :

         The Fox Member entered into an Operating Agreement on the 10th day of
January 2000 (the "Original Agreement"). The Fox Member desires to amend and
restate the Original Agreement in its entirety as set forth herein.

         In consideration of the mutual promises and covenants contained in this
Agreement, and intending to be legally bound, the Members hereby agree as
follows:

                                    ARTICLE I
                                   DEFINITIONS

         As used in this Agreement, the following terms have the meanings
assigned to them in this Article I (except as otherwise expressly provided) and
include the plural as well as the singular and vice versa. All accounting terms
not otherwise defined herein have the meanings assigned to them in accordance
with GAAP.

         "Act" shall mean the Delaware Limited Liability Company Act, as
amended.

         "Additional Capital Contribution" shall have the meaning set forth in
Section 3.3(a) hereof.

         "Additional Capital Notice" shall have the meaning set forth in Section
3.3(a) hereof.

<PAGE>   5

         "Adjusted Capital Account Deficit" shall mean the deficit balance (if
any) in such Member's Capital Account as of the end of any Fiscal Year, after
(a) crediting to such Capital Account any amount which such Member is obligated
to restore pursuant to this Agreement or is deemed obligated to restore pursuant
to the minimum gain chargeback provisions of the Section 704(b) of the Treasury
Regulations, and (b) charging to such Capital Account any adjustments,
allocations or distributions described in the qualified income offset provisions
of the Section 704(b) of the Treasury Regulations which are required to be
charged to such Capital Account pursuant to this Agreement.

         "Affiliate" shall mean, with respect to any Person, any Person that
directly or indirectly Controls, is Controlled by, or is under common Control
with such Person.

         "Aggregate Capital Commitment" shall mean $150,000,000.

         "Agreement" shall mean this Amended and Restated Operating Agreement,
also known as a "limited liability company agreement" under the Act, as amended
from time to time.

         "Annual Budget" shall mean, as at any time, the Company's then
effective annual operating and capital budget approved in the manner
contemplated by Section 4.3(h) hereof or in effect pursuant to Section 4.3(c)
hereof.

         "Available Cash" shall mean for any Fiscal Year or other period, the
positive amount, if any, obtained by calculating net income (or loss) of the
Company determined in accordance with GAAP for such period, adjusted, without
duplication, by adding (x) depreciation, amortization and other non-cash charges
to the extent deducted in determining net income and deducting (y) (i) the
current portion of indebtedness of the Company, (ii) prepaid expenses and other
cash expenditures to the extent not deducted in determining net income or loss
and (iii) reasonable reserves for working capital and contingent liabilities as
determined by the Managing Member.

         "Board" shall have the meaning set forth in Section 4.2 hereof.

         "Business" shall mean the business of the Company as set forth in
Section 2.4 hereof.

         "Business Day" shall mean each Monday, Tuesday, Wednesday, Thursday or
Friday which is not a day on which banking institutions in New York City are
authorized or obligated by law to close.

         "Business Plan" shall mean the business plan most recently approved by
the Board pursuant to Section 4.3 hereof.

         "Call" shall have the meaning set forth in Section 8.5(a) hereof.

         "Capital Account" shall have the meaning set forth in Section 3.4(a)
hereof.

         "Capital Call" shall have the meaning set forth in Section 3.3(a)
hereof.

                                      -2-
<PAGE>   6

         "Capital Contribution" shall mean the amount which a Member shall
contribute to the capital of the Company as provided in Article III hereof.

         "Certificate" shall mean the certificate of formation of the Company,
as amended from time to time.

         "Code" shall mean the United States Internal Revenue Code of 1986, as
amended from time to time, or any successor statute or statutes.

         "Common Stock" shall mean the common stock, par value $0.0001 per
share, of Healtheon/WebMD and any and all shares of capital stock or other
equity securities of: (i) Healtheon/WebMD which are added to or exchanged or
substituted for the Common Stock by reason of the declaration of any stock
dividend or stock split, the issuance of any distribution or the
reclassification, readjustment, recapitalization or other such modification of
the capital structure of Healtheon/WebMD; and (ii) any other corporation, now or
hereafter organized under the laws of any state or other governmental authority,
with which Healtheon/WebMD is merged, which results from any consolidation or
reorganization to which Healtheon/WebMD is a party, or to which is sold all or
substantially all of the shares or assets of Healtheon/WebMD, if immediately
after such merger, consolidation, reorganization or sale, Healtheon/WebMD or any
Stockholders of Healtheon/WebMD own equity securities having in the aggregate
more than fifty percent (50%) of the total voting power of such other
corporation.

         "Company" shall mean the limited liability company formed pursuant to
the Certificate and governed by this Agreement and the Act.

         "Company Minimum Gain" shall mean the amount determined in accordance
with the principles of Treasury Regulations Section 1.704-2(d).

         "Company Property" shall have the meaning set forth in Section 2.6
hereof.

         "Contribution Date" shall have the meaning set forth in Section 3.3(a)
hereof.

         "Control" shall mean the possession, direct or indirect, of the power
to direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

         "Corporate Conversion" shall mean any merger, consolidation, conversion
by filing, assignment of assets, or similar transaction or series of
transactions resulting in a corporation substantially all of the assets of which
consist of substantially all of the assets that were held directly or indirectly
by the Company immediately prior to such transaction and substantially all the
capital stock of which corporation is held by Persons who were either (i)
Members immediately prior to such transaction or (ii) the owners of a Member the
sole or principal asset of which Member was an Interest in the Company.

         "CPI-U" shall have the meaning set forth in Section 4.3(c) hereof.

                                      -3-
<PAGE>   7

         "Current Market Price" shall mean, per share of Common Stock on any
date specified, the average of the daily market prices of such Common Stock for
the 20 consecutive Business Days ending on the second Business Day prior to such
date. The daily market price of Common Stock on any Business Day will be (a) the
last sale price on such day on the principal stock exchange on which such share
of Common Stock is then listed or admitted to trading (including the Nasdaq
National Market System if such Common Stock is admitted to trading thereon), or
(b) if no sale takes place on such date on any exchange on which such share of
Common Stock is listed or admitted to trading, the average of the reported
closing bid and asked prices on such day as officially noted on any exchange.

         "Damages" shall have the meaning set forth in Section 4.6(a) hereof.

         "Default Loan" shall have the meaning set forth in Section 3.3(b)
hereof.

         "Defaulting Member" shall have the meaning set forth in Section 3.3(b)
hereof.

         "Depreciation" shall mean, for each Fiscal Year or other period, an
amount equal to the depreciation, amortization, or other cost recovery deduction
allowable for federal income tax purposes with respect to an asset for such year
or other period, except that if the Gross Asset Value of any asset differs from
its adjusted basis for federal income tax purposes at the beginning of such year
or other period, Depreciation shall be an amount which bears the same ratio to
such beginning Gross Asset Value as the federal income tax depreciation,
amortization, or other cost recovery deduction for such year or other period
bears to such beginning adjusted tax basis; provided, however, that if the
federal income tax depreciation, amortization, or other cost recovery deduction
for such year is zero, Depreciation shall be determined with reference to such
beginning Gross Asset Value using any reasonable method selected by the Tax
Matters Member.

         "Dissolution" shall mean the happening of any of the events described
in Section 9.1 hereof.

         "Economic Risk of Loss" shall have the meaning set forth in Sections
1.704-2(b)(4) and 1.752-2 of the Treasury Regulations.

         "Effective Date" shall mean the date hereof, unless the parties
otherwise mutually agree in writing that some other date shall be the Effective
Date.

         "Fair Market Value" shall mean, for purposes of this Agreement, the
cash price at which a willing seller would sell, and a willing buyer would buy,
the property in question, both having full knowledge of the relevant facts and
being under no compulsion to buy or sell, in an arm's length transaction without
time constraints. Fair Market Value may be determined by mutual agreement of the
Members. If the Members are unable to agree on a Fair Market Value within 15
days of the date on which a determination of Fair Market Value is required, or
if they determine that an appraisal should be used to determine Fair Market
Value. then each of the Members will cause the Fair Market Value as of the most
recent month end (or as of such other date as may be expressly provided herein)
to be determined by a qualified appraiser in accordance with the following
procedure. The Members shall, within 10 days of the date that an appraiser is
required, seek to select a mutually agreeable

                                      -4-
<PAGE>   8

appraiser. If the Members are unable to agree on a single qualified appraiser
within 10 days, each Member will have 10 additional days to select one appraiser
internationally recognized in valuing items of the kind required to be valued.
Any Member not appointing an appraiser pursuant to the preceding sentence within
the allotted time shall have no right to select an appraiser thereafter but
shall be bound by the procedure set forth herein using values determined by
appraisers selected by the other Member or Members, as applicable. The appointed
appraiser, or appraisers, as the case may be, will determine the Fair Market
Value. The Members will use their reasonable best efforts to cause such
appraiser or appraisers to submit to them written reports indicating the
determination of Fair Market Value within 30 days after the date such appraiser
is selected. If there is more than one appointed appraiser, and the highest of
the appraisals is not more than 110% of the lowest appraisal, the average of the
two will be the Fair Market Value. If the highest of the appraisals is more than
110% of the lowest appraisal, the Members will immediately notify the appraisers
and cause them to appoint another similarly qualified appraiser within 10 days
after such notice. The Members will use their reasonable best efforts to cause
such appraiser (who will not be apprised of the determination of the other
appraisers) to submit a written report to each of them indicating such
appraiser's determination of Fair Market Value within 30 days after the date
such appraiser is selected. If three appraisals are necessary, then the average,
of the two appraisals in which the determinations of Fair Market Value are
closest together will be the Fair Market Value or, if the highest and lowest are
equidistant from the middle determination, then the middle determination will be
the Fair Market Value. A determination of Fair Market Value as provided herein
will be final, binding and nonappealable. Each Member will pay one half of the
fees and costs of any appraiser involved in a determination of Fair Market Value
required by this Agreement.

         "Fiscal Year" shall mean the twelve-month period ending June 30 of each
year, or such other fiscal year as the Members may designate.

         "Fox Member" shall have the meaning set forth in the preamble to this
Agreement.

         "Fox Representatives" shall have the meaning set forth in Section
4.2(a) hereof.

         "GAAP" shall mean generally accepted accounting principles as in effect
in the United States from time to time and consistently applied, with such
exceptions thereto or deviations therefrom, if any, as the Managing Member may
approve.

         "Gross Asset Value" shall mean, with respect to any asset, the asset's
adjusted basis for federal income tax purposes, except as follows:

                  (a)      the initial Gross Asset Value of any asset
contributed by a Member to the Company shall be the Fair Market Value of such
asset;

                  (b)      the Gross Asset Value of all Company assets shall be
adjusted to equal their respective Fair Market Value (taking Section 7701(g) of
the Code into account), as of the following times: (i) the acquisition of an
additional interest in the Company by any new or existing Member in exchange for
more than a de minimis capital contribution; (ii) the distribution by the
Company to a Member of more than a de minimis amount of Company Property as
consideration for an

                                      -5-
<PAGE>   9

interest in the Company, in the case of either (i) or (ii), if the Members
reasonably determine that such adjustment is necessary or appropriate to reflect
the relative economic interests of the Members in the Company and (iii) the
liquidation of a Member's interest in the Company or the Company within the
meaning of Section 1.704-1(b)(2)(ii)(g) of the Treasury Regulations;

                  (c)      the Gross Asset Value of any Company asset
distributed to any Member shall be the Fair Market Value (taking Section 7701(g)
of the Code into account) of such asset on the date of distribution;

                  (d)      the Gross Asset Values of Company assets shall be
increased (or decreased) to reflect any adjustments to the adjusted basis of
such assets pursuant to Section 732(d), Section 734(b) or Section 743(b) of the
Code, but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Section 1.704-1(b)(2)(iv)(m) of the
Treasury Regulations and Section 3.5 hereof, provided, however, that Gross Asset
Values shall not be adjusted pursuant to this subsection (d) to the extent that
the Members determine that an adjustment pursuant to subsection (b) of this
definition is necessary or appropriate in connection with a transaction that
would otherwise result in an adjustment pursuant to this subsection (d); and

                  (e)      if the Gross Asset Value of any asset has been
determined or adjusted pursuant to subsection (a), (b) or (c) hereof, such Gross
Asset Value shall thereafter be adjusted by the Depreciation taken into account
with respect to such asset for purposes of computing gains or losses from the
disposition of such asset.

         "Healtheon Member" shall have the meaning set forth in the preamble to
this Agreement.

         "Healtheon Representatives" shall have the meaning set forth in Section
4.2(a) hereof.

         "HSR" shall have the meaning set forth in Section 8.5(b) hereof.

         "Indemnitee" shall have the meaning set forth in Section 4.6(a) hereof.

         "Interest" shall mean, as to each Member, such Member's rights to
participate in the income, gains, losses, deductions and credits of the Company,
together with all other rights and obligations of such Member in the capital of
the Company under this Agreement.

         "Internet" shall mean a decentralized worldwide network of computer
networks.

         "Lien" shall mean a mortgage, lien, pledge, security interest or other
encumbrance.

         "Liquidation" shall mean the process of winding up and terminating the
Company after its Dissolution.

         "Losses" shall have the meaning set forth in Section 3.5(a) hereof.

         "Management Fee" shall have the meaning set forth in Section 4.5(a)
hereof.

                                      -6-
<PAGE>   10

         "Management Services" shall have the meaning set forth in Section
4.5(a) hereof.

         "Managing Member" shall mean the Fox Member, and any Person who may
after the date hereof become a successor to the Fox Member, as provided herein.

         "Member" shall mean the Fox Member, the Healtheon Member and any
permitted transferee of an Interest or portion thereof who becomes a Member in
accordance with Article VIII. The Fox Member and the Healtheon Member (together
with such transferees) may be collectively referred to herein as the "Members."

         "Member Nonrecourse Debt" shall mean liabilities of the Company treated
as "partner nonrecourse debt" under Section 1.704-2(b)(4) of the Treasury
Regulations.

         "Member Nonrecourse Deductions" shall mean any losses, deductions or
Code Section 705(a)(2)(b) expenditures characterized as "partner nonrecourse
deductions under Sections 1.704-2(i)(1) and 1.704-2(i)(2) of the Treasury
Regulations.

         "Member Nonrecourse Debt Minimum Gain" shall mean an amount of gain
characterized as "partner nonrecourse debt minimum gain" under Treasury
Regulations Sections 1.704-2(i)(2) and 1.704-2(i)(3).

         "Non-Defaulting Member" shall have the meaning set forth in Section
3.3(b) hereof.

         "Non-Standard Television Services" shall mean audiovisual programming
delivered by any means of transmission, whether now existing or developed in the
future (including all forms of fixed-line or wireless, narrowband or broadband,
transmission), other than (a) audio visual programming which is made available
to viewers free-of-charge (e.g., free-to-air UHF or VHF television), even if
retransmitted via cable or any other means of retransmission for which a
facilities fee is charged, and (b) home-video distribution.

         "Nonrecourse Deductions" in any year shall mean the Company deductions
that are characterized as "nonrecourse deductions" under Sections 1.704-2(b)(1)
and 1.704-2(c) of the Treasury Regulations.

         "Percentage Interest" shall mean, with respect to each Member, such
Member's proportionate share of the total Interests in the Company expressed as
a percentage, as set forth in Section 3.2 hereof and as may be adjusted from
time to time pursuant to this Agreement.

         "Person" shall mean an individual or a corporation, limited liability
company, joint venture, partnership, trust, unincorporated association,
governmental authority or other entity.

         "Prime Rate" shall mean a rate of interest equal to the rate per annum
announced from time to time by Citibank, N.A. at its principal office as its
prime rate (which rate shall change when and as such announced prime rate
changes) but in no event more than the maximum rate of interest permitted to be
collected from time to time under applicable usury laws.

                                      -7-
<PAGE>   11

         "Prime Time" shall mean between the hours of 6:00 p.m. and 12 a.m.

         "Profits" shall have the meaning set forth in Section 3.5(a) hereof.

         "Proposed Annual Budget" shall have the meaning set forth in Section
4.3(a) hereof.

         "Proposed Business Plan" shall have the meaning set forth in Section
4.3(a) hereof.

         "Purchase Agreement" shall mean the Purchase Agreement, dated the date
hereof, by and among Affiliates of the Members.

         "Put" shall have the meaning set forth in Section 8.5(a) hereof.

         "Regulatory Allocations" shall have the meaning set forth in
subparagraph 3.5(c)(viii) hereof.

         "Representatives" shall have the meaning set forth in Section 4.2(a)
hereof.

         "Subscriber" shall have the meaning set forth in Section 8.5(a) hereof.

         "Section 704(c) Property" shall have the meaning set forth in Section
1.704-3(a)(3) of the Treasury Regulations and shall include assets treated as
Section 704(c) Property by virtue of Section 704-1(b)(2)(iv)(f) of the Treasury
Regulations.

         "Tax Matters Member" shall mean the "tax matters partner," as that term
is defined in Section 6231(a)(7) of the Code.

         "Transfer" shall mean a sale, exchange, assignment, transfer, pledge or
other disposition of all or any part of an Interest (whether voluntary,
involuntary or by operation of law).

         "Transferee" shall mean a Person to whom an Interest is Transferred in
compliance with this Agreement.

         "Transferor" shall mean a Person who Transfers all or any part of an
Interest in compliance with this Agreement.

         "Treasury Regulations" shall mean the income tax regulations (including
temporary and proposed) promulgated under the Code.

                                      -8-
<PAGE>   12

                                   ARTICLE II
                                    FORMATION

         2.1      Formation. The Company was formed as a limited liability
company pursuant to the Act by the filing, on January 10, 2000, the Certificate
with the Secretary of State of the State of Delaware.

         2.2      Name. The business of the Company shall be conducted under the
name THE HEALTH NETWORK LLC or such other or additional name or names and
variations thereof as the Managing Member may from time to time determine. The
Managing Member shall file, or cause to be filed, any fictitious name
certificate and similar filings, and any amendments thereto, as may be directed
by the Board from time to time,

         2.3      Office and Agent.

                  (a)      The initial registered office of the Company in
Delaware will be at 1013 Centre Road, Wilmington, Delaware 19805-1297, and its
initial registered agent will be Corporation Service Company. The Company may,
upon compliance with the applicable provisions of the Act, change its registered
office or registered agent in Delaware.

                  (b)      The initial principal office of the Company will be
at 1300 North Market Street, Suite 404, Wilmington, Delaware 19801. The Company
may maintain any other offices at any other places that the Managing Member
deems advisable.

         2.4      Purposes. The purposes of the Company shall be (a) to own and
operate one or more Non-Standard Television Services substantially all of the
programming of which shall consist of health and fitness content consisting of
audio-visual programming (the "Business"), (b) to acquire, own, hold, sell or
otherwise dispose of interests in the assets used to conduct the Business, (c)
to make and perform all contracts and engage in all activities and transactions
and to do any and all things necessary or advisable to carry out the foregoing
purpose, and (d) to otherwise engage in any lawful activity incidental thereto
for which limited liability companies may be organized under the Act.

         2.5      Powers. The Company shall have all the powers granted to a
limited liability company under the Act, as well as all powers necessary or
convenient to achieve its purposes and to further its business.

         2.6      Ownership of Property. Legal title to all assets, rights and
property, whether real, personal or mixed, owned by the Company (collectively,
the "Company Property") shall be acquired, held and conveyed only in the name of
the Company.

         2.7      Qualification in Other Jurisdiction. The Managing Member shall
cause the Company to be qualified or registered under applicable laws of any
jurisdiction in which the Company transacts business and shall be authorized to
execute, deliver and file any certificates and

                                      -9-
<PAGE>   13

documents necessary to effect such qualifications or registrations including,
without limitation, the appointment of agents or service of process in such
jurisdictions.

                                   ARTICLE III
                                     CAPITAL

         3.1      Initial Capital Contributions by Members; Initial Capital
Accounts; Initial Tax Basis in Assets. The Company was formed on January 10,
2000 and on the date hereof the Fox Member contributed to the capital of the
Company assets, subject to liabilities, which constituted all of its assets,
other than the Galaxy Assets, as defined in the Purchase Agreement, and cash on
hand, and all of its liabilities, other than liabilities in respect of member
loans. The Healtheon Member then purchased a 50% Interest from the Fox Member
pursuant to a purchase agreement dated as of the date hereof. It is agreed that
(i) the Healtheon Member is admitted to the Company as a Member, (ii) this
Agreement shall govern the management, business and affairs of the Company,
(iii) the purchase of its Interest by the Healtheon Member shall be treated
under the Code as a purchase of an undivided one-half interest in each of the
Company's assets, subject to its liabilities, on the date hereof, followed by
the contribution of such assets subject to such liabilities to the capital of
the Company by the Healtheon Member and the contribution of the remaining
one-half undivided interest in such assets subject to the remaining liabilities
by the Fox Member to the capital of the Company, (iv) the initial Capital
Account of the Healtheon Member and the Fox Member shall each equal $1,250,000,
(v) the aggregate adjusted tax basis under the Code of the Healtheon Member's
share of the assets of the Company on the date hereof shall equal the Healtheon
Member's Capital Account plus one-half of the Company's liabilities on the date
hereof, (vi) the aggregate adjusted tax basis under the Code of the Fox Member's
share of the assets of the Company on the date hereof shall equal one-half of
the basis of such assets in the hands of the Company immediately prior to the
purchase by the Healtheon Member of its Interest, plus one-half of the Company's
liabilities at such time and (vii) the difference between amount described in
clauses (v) and (vi) above shall be treated as Section 704(c) Property with
respect to the Fox Member.

         3.2      Percentage Interests. Subject to adjustment pursuant to
Section 3.3 hereof, the Percentage Interest of each Member shall initially be as
follows:

                           Healtheon Member:        50%
                           Fox Member:              50%

The Percentage Interest of a Member may be adjusted from time to time pursuant
to Section 3.3 hereof.

         3.3      Additional Capital.

                  (a)      If, at any time, prior to the fifth anniversary of
the Effective Date, the Managing Member determines that the Company requires
additional funds for its continued

                                      -10-
<PAGE>   14

operation or growth in accordance with the previously approved Annual Budget,
the Managing Member may cause the Company to request (a "Capital Call") that the
Members contribute to the Company such amounts as the Managing Member may direct
on no less than five Business Days' prior notice to the Members. Each such
notice (an "Additional Capital Notice") shall specify the amount of funds to be
provided by each Member (each, an "Additional Capital Contribution"), the date
on which funds are to be provided (the "Contribution Date"), and the account of
the Company to which such funds are to be transmitted; provided, that the
aggregate sum of all Additional Capital Contributions requested by the Company
pursuant to this Section 3.3(a) shall not exceed an aggregate of $50,000,000 in
any Fiscal Year or the Aggregate Capital Commitment in total. All Additional
Capital Contributions to be made by the Members shall be in amounts that are in
proportion to their respective Percentage Interests, determined, in each case,
as of the date of the Capital Call. Unless otherwise agreed by the Members, all
Additional Capital Contributions shall be in cash or immediately available
funds. No Additional Capital Contribution shall be required to be paid by the
Members unless (i) the need for additional capital is specifically provided for
in the then currently approved Annual Budget or (ii) the Members approve the
payment of such Additional Capital Contribution in accordance with Section 4.4
hereof.

         (b)      Within five days after receipt of an Additional Capital Notice
issued pursuant to Section 3.3(a), each Member shall notify the Company whether
it intends to contribute its respective Additional Capital Contribution referred
to in the Additional Capital Notice. If any Member (a "Defaulting Member") fails
to contribute timely all or any portion of any Additional Capital Contribution,
the other Member (the "Non-Defaulting Member") may, at its option, at any time
following the date of default, and prior to the date such default is cured,
exercise, or cause the Company to exercise, on five days notice to the
Defaulting Member any one of the following remedies and the Defaulting Member
shall not be permitted to vote with respect to the election of any of the
following remedies by the Non-Defaulting Member:

                  (i)      take such action, including court proceedings, as the
Non-Defaulting Member may deem appropriate to obtain payment by the Defaulting
Member of the Defaulting Member's Additional Capital Contribution that is in
default, together with interest thereon, at the rate of 12% per annum, from the
date that the Additional Capital Contribution was due until the date that is it
made, all at the cost and expense of the Defaulting Member; or

                  (ii)     make a payment to the Company in an amount equal to
the Additional Capital Contribution that is in default with the effect that such
payment shall constitute a loan (a "Default Loan") to the Defaulting Member from
the Non-Defaulting Member, any such loan to bear interest, compounded quarterly,
at the rate of 5% over the Prime Rate on the date nearest the date of the
advance, which rate shall be adjusted annually, based on changes to the Prime
Rate on the anniversary of such Default Loan. For so long as any Default Loan
remains unpaid, all distributions from the Company that otherwise would be made
to the Defaulting Member (whether before or after the Dissolution of the
Company) instead shall be paid to the Non-Defaulting Member until the Default
Loan and all interest accrued thereon have been paid in full to the
Non-Defaulting Member. Payments in respect of any Default Loan will be applied
in the order that such loans were made, and all payments will be applied first
to accrued but unpaid interest and then to reduce the outstanding principal
amount of the loan. A Default Loan shall become automatically and immediately
due and

                                      -11-
<PAGE>   15

payable by the Defaulting Member, and shall constitute a general obligation of
the Defaulting Member, upon the earlier of. (A) the sale of the Fox Member's
Interest pursuant to Section 8.6 hereof or (B) the Dissolution of the Company.
Any Default Loan shall be prepayable in whole or in part at any time without
penalty.

                  (c)      Except as set forth in this Section 3.3, no Member
shall have any obligation to make Additional Capital Contributions to the
Company.

         3.4      Capital Accounts.

                  (a)      A separate capital account (each a "Capital Account")
shall be maintained for each Member. Such Member's initial Capital Account shall
be as described in Section 3.1 above. Subject to the provisions of subsections
(b), (c) and (d) of this Section 3.4, the Capital Account of each Member shall
be (i) increased by (A) the amount of cash and the Gross Asset Value of any
property contributed to the Company by such Member (net of liabilities secured
by the property or to which the property is subject), and (B) Profits and any
other items of income and gain allocated to such Member pursuant to Section 3.5
hereof and (ii) decreased by (A) the amount of cash and the Gross Asset Value of
any property distributed to such Member (net of liabilities secured by the
property or to which the property is subject) and (B) the Losses and any other
items of deduction and loss allocated to such Member pursuant to Section 3.5,
and otherwise maintained in accordance with Treasury Regulations in order for
the allocation of Profits and Losses pursuant to Section 3.5.

                  (b)      For purposes of this Section 3.4, an assumption of a
Member's unsecured liability by the Company shall be treated as a distribution
of money to that Member. An assumption of the Company's unsecured liability by a
Member shall be treated as a cash contribution to the Company by that Member.

                  (c)      In the event a contribution of money or other
property is made to the Company other than a contribution made ratably by all
existing Members, then the Capital Accounts for the Members shall be adjusted
for the hypothetical "book" gain or loss that would have been realized by the
Company if all Company assets had been sold for their Gross Asset Values in a
cash sale, and shall be in proportion to the Percentage Interests of the
Members. If a determination of the Fair Market Value of the Company is made
pursuant to Section 3.3 in connection with any Additional Capital Contribution
which would also be subject to this Section 3.4(c), the Gross Asset Value of the
Company's assets shall be deemed to be equal to the Fair Market Value of the
Company plus its liabilities as determined pursuant to Section 3.3 hereof.

                  (d)      In the event that assets of the Company other than
money are distributed to a Member in liquidation of the Company, or in the event
that assets of the Company other than money are distributed to a Member in kind,
in order to reflect unrealized gain or loss, Capital accounts for the Members
shall be adjusted for the hypothetical "book" gain or loss that would have been
realized by the Company if the distributed assets had been sold for their Gross
Asset Values in a cash sale. In the event of the liquidation of a Member's
interest in the Company, in order to reflect unrealized gain or loss, Capital
Accounts for the Members shall be adjusted for the hypothetical "book" gain or
loss that would have been realized by the Company if all Company assets had been
sold for their Gross Asset Values in a cash sale.

                                      -12-
<PAGE>   16

                  (e)      The foregoing provisions of this Section 3.4 and the
other provisions of this Agreement relating to the maintenance of Capital
Accounts are intended to comply with Section 704(b) of the Treasury Regulations
and will be interpreted and applied in a manner consistent with such Treasury
Regulations and any amendment or successor provision thereto. The Members will
cause appropriate modifications to be made if unanticipated events might
otherwise cause this Agreement not to comply with Section 704(b) of the Treasury
Regulations, so long as such modifications do not cause a material change in the
relative economic benefits of the Members under this Agreement.

                  (f)      If all or any part of an Interest is transferred in
accordance with this Agreement, the Capital Account of the Transferor that is
attributable to the transferred Interest will carry over to the Transferee.

         3.5      Allocation of Items of Company Income, Gain, Loss, Deduction
                  and Credit.

                  (a)      For purposes of this Agreement, the terms "Profits"
and "Losses" shall mean, for each Fiscal Year or other period, an amount equal
to the Company's taxable income or loss, as the case may be for such year or
period, determined in accordance with Section 703(a) of the Code (for this
purpose, all items of income, gain, loss and deduction required to be stated
separately pursuant to Section 703(a)(1) of the Code shall be included in
taxable income or loss), with the following adjustments:

                           (i)      any income of the Company that is exempt
from federal income tax and not otherwise taken into account in computing
Profits or Losses pursuant to this paragraph shall be added to such taxable
income or loss;

                           (ii)     any expenditures of the Company described in
Section 705(a)(2)(B) of the Code or treated as Section 705(a)(2)(B) of the Code
expenditures pursuant to Section 1.704-1(b)(2)(iv)(i) of the Treasury
Regulations, and not otherwise taken into account in computing Profits or Losses
pursuant to this Section shall be subtracted from such taxable income or loss;

                           (iii)    in the event the Gross Asset Value of any
Company asset is adjusted pursuant to subsection (b) or (c) of the definition
thereof, the amount of such adjustment shall be taken into account as gain or
loss from the disposition of such asset for purposes of computing Profits or
Losses;

                           (iv)     gain or loss resulting from the disposition
of any Company asset with respect to which gain or loss is recognized for
federal income tax purposes shall be computed by reference to the Gross Asset
Value of the asset disposed of, notwithstanding that the adjusted tax basis of
such asset differs from its Gross Asset Value;

                           (v)      in lieu of the depreciation, amortization,
and other cost recovery deductions taken into account in computing, such taxable
income or loss, there shall be taken into

                                      -13-
<PAGE>   17

account Depreciation for such Fiscal Year or other period, computed in
accordance with the definition thereof;

                           (vi)     to the extent an adjustment to the adjusted
tax basis of any Company asset pursuant to Section 734(b) of the Code is
required, pursuant to Section 1.704-1(b)(2)(iv)(m)(4) of the Treasury
Regulations, to be taken into account in determining Capital Accounts as a
result of a distribution other than in liquidation of a Member's Interest in the
Company, the amount of such adjustment shall be treated as an item of gain (if
the adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) from the disposition of such asset and shall be taken into
account for purposes of computing Profits or Losses; and

                           (vii)    notwithstanding any other provision of this
Section, any items which are specially allocated pursuant to Section 3.5(c)
hereof shall not be taken into account in computing Profits and Losses.

                  (b)      After giving effect to the special allocations set
         forth in Section 3.5(c):

                           (i)      All Company Profits shall be allocated to
                                    the Members as follows:

                                    (A)      first, pro rata to the Members in
                                    proportion to and to the extent of Losses
                                    previously allocated to each Member pursuant
                                    to Section 3.5(b)(ii)(B) hereof and not
                                    previously recouped pursuant to this Section
                                    3.5(b)(i)(A); and

                                    (B)      thereafter, to the Members in
                                    accordance with their respective Percentage
                                    Interests.

                           (ii)     All Company Losses shall be allocated to the
                                    Members as follows:

                                    (A)     first, pro rata to the Members in
                                            proportion to and to the extent of
                                            Profits previously allocated to such
                                            Members pursuant to Section
                                            3.5(b)(i)(B) hereof and not
                                            previously recouped pursuant to this
                                            Section 3.5(b)(ii)(A); and

                                    (B)      thereafter, to the Members in
                                             accordance with their respective
                                             Percentage Interests.

                  (c)      Special Allocations. The following special
allocations shall be made in the following order:

                           (i)      Minimum Gain Chargeback. Subject to the
exceptions set forth in Section 1.704-2(f) of the Treasury Regulations, if there
is a net decrease in Company Minimum Gain during a Fiscal Year, each Member
shall be specially allocated items of income and gain for Capital Account
purposes for such year (and, if necessary, for subsequent years) in an amount
equal to such Member's share of the net decrease in Company Minimum Gain during
such year (which share of

                                      -14-
<PAGE>   18

such net decrease shall be determined under Section 1.704-2(g)(2)) of the
Treasury Regulations. It is intended that this Section 3.5(c)(i) shall
constitute a "minimum gain chargeback" as provided by Section 1.704-2(f) of the
Treasury Regulations and shall be interpreted consistently therewith.

                           (ii)     Member Nonrecourse Debt Minimum Gain
Chargeback. Subject to the exceptions contained in Section 1.704-2(i)(4) of the
Treasury Regulations, if there is a net decrease in Member Nonrecourse Debt
Minimum Gain during a Fiscal Year, any Member with a hare of such Member
Non-recourse Debt Minimum Gain (determined in accordance with Section
1.704-2(i)(5)) of the Treasury Regulations as of the beginning of such year
shall be specially allocated items of income and gain for Capital Account
purposes for such year (and, if necessary, for subsequent years) in an amount
equal to such Member's share of the net decrease in Member Nonrecourse Debt
Minimum Gain (which share of such net decrease shall be determined under
Sections 1.704-2(i)(4) and 1.704-(j)(2)) of the Treasury Regulations. It is
intended that this Section 3.5(c)(ii) shall constitute a "partner nonrecourse
debt minimum gain chargeback" as provided by Section 1.704-2(i)(4) of the
Treasury Regulations and shall be interpreted consistently therewith.

                           (iii)    Nonrecourse Deductions. Any Nonrecourse
deductions shall be located to the Members in the same manner as Net Losses are
allocated pursuant to Section 3.5(b)(ii) hereof.

                           (iv)     Member Nonrecourse Deductions. Any Member
Nonrecourse Deductions shall be allocated to the Member that bears the Economic
Risk of Loss for the Member Nonrecourse Debt to which such deductions relate as
provided in Section 1.704-2(i)(l) of the Treasury Regulations. If more than one
Member bears the Economic Risk of Loss, such deduction shall be allocated
between or among such Members in accordance with the ratios in which such
Members share such risk of loss.

                           (v)      Qualified Income Offset. In the event any
Member unexpectedly receives any adjustments, allocations, or distributions
described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or
1.704-1(b)(2)(ii)(d)(6) of the Treasury Regulations (modified as appropriate, by
Sections 1.704-2(g)(1) and 1.704-2(i)(5)) of the Treasury Regulations, items of
Company income and gain for Capital Account purposes for such Fiscal Year shall
be specially allocated to the Member in an amount and manner sufficient to
eliminate, to the extent required by the Treasury Regulations, any Adjusted
Capital Account Deficit of the Member as quickly as possible, provided that an
allocation pursuant to this Section 3.5(c)(v) shall be made if and only to the
extent that the Member would have an Adjusted Capital Account Deficit after all
other allocations provided for in this Article III have been tentatively made as
if this Section 3.5(c)(v) were not in the Agreement.

                           (vi)     Certain Section 754 Adjustment. To the
extent any adjustment to the adjusted tax basis of any Company asset pursuant to
Section 732(d), Section 734(b) or Section 743(b) of the Code is required,
pursuant to Section 1.704-1(b)(2)(iv)(m) of the Treasury Regulations, to be
taken into account in determining Capital Accounts as the result of a
distribution to a Member in complete liquidation of its Interest in the Company,
the amount of such adjustment to Capital Accounts shall be treated as an item of
gain (if the adjustment decreases such basis) and

                                      -15-
<PAGE>   19

such gain or loss shall be specially allocated to the Members in accordance with
their interests in the Company as determined under Section 1.704-1(b)(3) of the
Treasury Regulations in the event Section 1.704-1(b)(2)(iv)(m)(2) of the
Treasury Regulations applies, or to the Member to whom such distribution was
made in the event Section 1.704-1(b)(2)(iv)(m)(4) of the Treasury Regulations
applies.

                           (vii)    Limit on Loss Allocations. Notwithstanding
the provisions of Section 3.5(b)(ii) hereof or any other provision of this
Agreement to the contrary, Net Losses (or items thereof) will not be allocated
to a Member if such allocation would cause or increase a Member's Adjusted
Capital Account Deficit and will be reallocated to the other Members in
proportion to their Percentage Interests, subject to the limitations of this
Section 3.5(c)(vii).

                           (viii)   Curative Allocations. The allocations under
Section 3.5(c)(i) through (c)(vii) (such allocations, the "Regulatory
Allocations") are intended to comply with certain requirements of the Treasury
Regulations. It is the intent of the Members that, to the extent possible, all
Regulatory Allocations shall be offset either with other Regulatory Allocations
or with special allocations of other items of income, gain, loss or deduction
pursuant to this Agreement. Therefore, notwithstanding any other provision of
this Agreement (other than the Regulatory Allocations), the Company shall make
such offsetting special allocations of income, gain, loss or deduction in
whatever manner it determines appropriate so that, after such offsetting
allocations are made, each Member's Capital Account balance is, to the extent
possible, equal to the Capital Account balance such Member would have had if the
Regulatory Allocations were not part of the Agreement and all items were
allocated pursuant to Section 3.5(b), as the case may be. In exercising its
discretion under this Section 3.5(c)(viii), the Company shall take into account
future Regulatory Allocations under Section 3.5(c)(i) through (c)(vii) that are
likely to offset other Regulatory Allocations previously made.

         3.6      Distributions.

                  (a)      No Member shall have the right to withdraw any amount
from its Capital Account. No Member shall have the right to demand or, to
receive any distribution other than distributions of Available Cash pursuant to
Section 3.6(b) hereof. No Member shall have the right receive a distribution of
property other than cash from the Company, unless otherwise agreed by all the
Members.

                  (b)      The Company shall, from time to time, but not less
often than quarterly, distribute Available Cash to the Members. Any such
distributions shall be made in accordance with the Members' Percentage
Interests. Nothing set forth in this Section 3.6 shall impair the right or
relieve the duty of the Managing Member, or if there is no Managing Member the
Board, as provided this Agreement to establish reasonable cash reserves.

         3.7      Withholding. If required by the Code or by state or local law,
the Company will withhold any required amount from distribution to a Member for
payment to the appropriate taxing authority. Any amount so withheld from a
Member will be treated as a distribution by the Company to such Member. Each
Member will timely file any agreement that is required by any taxing

                                      -16-
<PAGE>   20

authority in order to avoid any withholding obligation that would otherwise be
imposed on the Company.

         3.8      Distribution Limitation. Notwithstanding any other provision
of this Agreement, the Company will not make any distribution to the Members if,
after the distribution, the liabilities of the Company (other than liabilities
to Members on account of their Percentage Interests) would exceed the Fair
Market Value of the Company's assets. With respect to any property subject to a
liability for which the recourse of creditors is limited to the specific
property, such property will be included in assets only to the extent the
property's Fair Market Value exceeds its associated liability, and such
liability will be excluded from the Company's liabilities.

         3.9      Company Funds. The funds of the Company shall be deposited in
such bank accounts or invested in investments as shall be determined by the
Managing Member, or if there is no Managing Member, the Board. The Company's
funds shall not be commingled with funds not belonging to the Company and shall
be used only for the affairs or business of the Company. It shall be the
responsibility of the Managing Member to establish a cash management plan
pursuant to which the funds of the Company will be managed.

         3.10     Capital Contribution. Each Member is liable to the Company for
any Capital Contribution or distribution that has been wrongfully or erroneously
returned or made to such Person in violation of the Act or this Agreement.

                                   ARTICLE IV
                                   MANAGEMENT

         4.1      Management of the Company's Business.

                  (a)      The management of the Company shall be vested in the
Managing Member. Except as provided in Section 4.4 hereof, or for actions and
determinations which pursuant to this Agreement can be taken or made only with
the consent of all of the Members or the Board, the Managing Member shall manage
the affairs and business of the Company, and the Managing Member shall possess
all powers necessary, convenient or appropriate to carrying out the purposes and
business of the Company, including, without limitation, doing all things and
taking all actions necessary to carry out the terms and provisions of this
Agreement. The business and affairs of the Company shall be directed and
controlled by the Managing Member in a manner consistent with the Business Plan
and the Annual Budget.

                  (b)      Nothing contained in this Article IV shall impose any
obligation on any Person doing business or dealing with the Company to inquire
as to whether the Managing Member has exceeded its authority in executing any
contract, lease, mortgage, note, deed or other instrument on behalf of the
Company, and any such Person shall be fully protected in relying upon the
plenary authority of the Managing Member.

                  (c)      Except as otherwise provided in Section 4.5 hereof,
the Managing Member

                                      -17-
<PAGE>   21

shall serve without compensation for its services. The Managing Member may
delegate such of its respective powers and authority to officers, employees and
agents of the Company as the Managing Member shall deem necessary or appropriate
for the conduct of the Business.

                  (d)      Other than the Managing Member, no Member shall have
any authority to act for, or to assume any obligation or responsibility on
behalf of, the Company, except as expressly provided herein or as expressly
approved by written consent of all the Members.

         4.2      Board.

                  (a)      The Members hereby form a supervisory board (the
"Board"), which shall be responsible for taking all action required under this
Agreement to be taken by the Board. The Board shall consist of four
representatives (the "Representatives"), two of whom shall be appointed by the
Healtheon Member (the "Healtheon Representatives"), and two of whom shall be
appointed by the Fox Member (the "Fox Representatives"). Each Member agrees to
notify the other of the initial Representatives appointed by it.

                  (b)      Each Member may at any time remove its
Representative(s) and appoint substitute Representative(s) in their stead, by
delivering written notice of such substitution to the other Member. Each
Representative shall have the authority to act on behalf of and bind the Member
which appointed such Representative with regard to matters relating to the
Company. The presence or participation of at least two of the four
Representatives shall constitute a quorum for the taking of any action;
provided, however, that at least one Representative appointed by each Member
shall be present; and provided further that all Members have received prior
written notice of such meeting in accordance with the notice requirements
adopted by the Board as provided in Section 4.2(c). If at any meeting of the
Board one Member has more Representatives present than the other, then at the
beginning of the meeting the Representatives of the Member having two
Representatives present shall select between themselves one of them to vote at
the meeting such that neither Member shall have fewer voting Representatives at
any Board meeting. Each Member shall have the right to bring additional
representatives to any meeting of the Board; provided, however, a Member shall
vote only through its appointed Representatives in connection with any matter
discussed and voted on at any such meeting of the Board. No Representative shall
be entitled to compensation from the Company for serving in such capacity.

                  (c)      The Board shall meet no less often than quarterly and
shall establish meeting times, dates and places and requisite notice
requirements and adopt rules or procedures consistent with the terms of this
Agreement, which shall include rules and procedures for the dissemination of
written information to the Members concerning the items to be acted upon at any
regular or special meeting of the Board. Any Member may call a special meeting
of the Board for any purpose by giving the other Member at least five (5)
Business Days' notice thereof, except in the case of an emergency, in which
case, such notice as is practicable shall be sufficient. The Board may meet by
means of conference telephone call, and any Representative or non-voting
representative may participate in any Board meeting by conference telephone
call. Any action that may be taken at a meeting of the Board may be taken
without a meeting by written consent of the number of Members

                                      -18-
<PAGE>   22

needed to authorize the action; provided, that all Members, are given notice of
such written consent at least 15 Business Days prior to its effective date.

                  (d)      The Managing Member shall keep the Board informed
with respect to all matters of material interest to the Members and shall in any
event report to the Board not less frequently than once each quarter with
respect to material matters relating to the business and affairs of the Company.

         4.3      Budget Approval.

                  (a)      The Managing Member shall submit annually to the
Board at least sixty days prior to the start of each Fiscal Year, beginning with
the Fiscal Year commencing January 1, 2000, (i) a proposed annual budget (the
"Proposed Annual Budget") for the forthcoming Fiscal Year, including an income
statement prepared on an accrual basis which shall show in reasonable detail the
revenues and expenses projected for the Company's operations for the forthcoming
Fiscal Year and a cash flow statement which shall show in reasonable detail the
receipts and disbursements projected for the Company's operations for the
forthcoming Fiscal Year, the amount of any corresponding cash deficiency or
surplus, contemplated borrowings under credit facilities and the required
Additional Capital Contributions, if any, and (ii) a proposed revised five-year
business plan (the "Proposed Business Plan") for the Fiscal Year covered by the
Proposed Annual Budget and the succeeding four Fiscal Years. Such Proposed
Annual Budget and Proposed Business Plan shall be prepared on a basis consistent
with the Company's audited financial statements and GAAP.

                  (b)      Within thirty days after the submission of such
Proposed Annual Budget and Proposed Business Plan, the Board shall advise the
Managing Member in writing whether the Board has approved the total expenditures
set forth in the Proposed Annual Budget and Proposed Business Plan. Each Annual
Budget and Business Plan shall be at least as detailed as the Annual Budget and
Business Plan annexed hereto as Exhibit A. If the total annual expenditures set
forth in the Proposed Annual Budget and Proposed Business Plan are approved by
the Board, then such Proposed Annual Budget and such Proposed Business Plan as
approved shall constitute the Annual Budget or the Business Plan, as the case
may be, for all purposes of this Agreement and shall supersede any previously
approved Annual Budget and Business Plan.

                  (c)      If the Board fails to approve an Annual Budget for
the Company, then, until a new Annual Budget is approved, the budget for the
Company for the immediately preceding Fiscal Year will remain in effect,
adjusted (without duplication) to reflect the following increases or decreases:
(i) the operation of escalation or de-escalation provisions in contracts in
effect at the time of approval of the Annual Budget solely as a result of the
passage of time or due to operations or undertakings approved in the Annual
Budget or the occurrence of events beyond the control of the Company, to the
extent such contracts are still in effect; (ii) elections made in any prior year
under contracts contemplated by the budget for the prior year regardless of
which party to such contracts makes such election; (iii) the effect of the
existence of any multi-year contract entered into in accordance with a previous
budget to the extent not fully reflected in the prior year's budget; (iv)
increases or decreases in expenses attributable to the annualized effect of
employee additions or reductions during the prior year contemplated by the
budget for the prior year; (v) interest expense

                                      -19-
<PAGE>   23
attributable to any loans; (vi) increases or decreases in overhead expenses in
an amount equal to the total of overhead expenses reflected in the budget for
the prior year (excluding non-recurring items) multiplied by the percentage
increase or decrease in the U.S. Department of Labor Bureau of Labor Statistics
Consumer Price Index for all Urban Consumers ("CPI-U") or a successor index for
the prior Fiscal Year (but in no event will such change be more than 10% of the
corresponding items in the prior budget); and (vii) decreases in expenses
attributable to non-recurring items reflected in the prior year's budget.

         4.4      Actions by Members. Neither the Company nor the Managing
Member shall take any of the following actions without the prior approval of all
the Board:

                  (a)      entry into areas of business other than the Business;

                  (b)      any amendment of this Agreement, including changing
the Company's name, or any other organizational document of the Company;

                  (c)      any action relating to the merger, sale,
consolidation, reorganization, dissolution, winding up, Liquidation or similar
transaction involving all or substantially all of the Company or all or
substantially all of its assets;

                  (d)      incurrence of any debt exceeding US$1,000,000 in the
aggregate (excluding normal trade debt), or the issuance of any guarantee, or
the creation of any Lien unless provided for in the Annual Budget under which
the Company is then operating;

                  (e)      any transaction involving the Company, on the one
hand, and a Member or Affiliate of a Member, on the other, other than
transactions involving less than US$500,000 in the aggregate, which are entered
into in the ordinary course of business on an arms-length basis;

                  (f)      any decision to acquire any interest or participation
in, or to acquire all or substantially all the assets of, any other Person for
an acquisition price of more than US$1,000,000;

                  (g)      appointment or removal of auditors of the Company,
approval or adoption of accounting or tax principles applicable to the Company,
and any change in the Fiscal Year of the Company;

                  (h)      any decision to require Additional Capital
Contributions to the Company, other than as provided in Section 3.3 hereof;

                  (i)      any decision to distribute cash or other assets of
the Company, except any distribution made pursuant to Section 3.7 hereof;

                  (j)      the admission of additional Members (except as
provided in Section 8.1) or the grant by the Company of any right to acquire any
interest in the Company or any stock or equity appreciation or similar right;

                                      -20-
<PAGE>   24

                  (k)      cause the Company (i) to enter into any contract or
agreement or series of related contracts or agreements (including any
programming rights or content rights acquisition agreements), whether oral or
written, obligating the Company to expend money or provide goods or services
other than in the ordinary course of business; (ii) to obligate the Company in
any other manner, unless in each case the amount involved is less than
US$100,000 or provided for in the Annual Budget; or (iii) to enter into any
affiliation agreement with a distribution platform unless the terms of such
affiliation agreement are at least as favorable to the Company as (x) those
prevailing in the market for Non-Standard Television affiliation agreements for
comparable programming services at such time or (y) those contained in
affiliation agreements entered into by the Company and its predecessors in the
past (excluding for purposes of such comparison (A) the affiliation agreement
dated November 20, 1995 between Cablevision Systems Corporation, et al., and
America's Health Network (the "Cablevision Agreement"), which was assigned to
the Company on the date hereof, and (B) any other affiliation agreement with
terms equally unfavorable or less favorable to the Company than those contained
in the Cablevision Agreement);

                  (l)      cause the Company to sell, transfer, lease, or
otherwise dispose of, or mortgage or pledge, either in a single transaction or a
series of related transactions, any assets of the Company with an aggregate fair
market value greater than US$1,000,000 except as reflected in an Annual Budget
and except for the sale of inventory or the grant of programming rights in the
ordinary course of Business;

                  (m)      settle any dispute or litigation or other proceeding,
whether administrative or otherwise, which would have a material adverse affect
on the Company or any Member, or waive any claim in excess of US$100,000 which
the Company may have against another Person;

                  (n)      amend or modify the previously approved Annual Budget
or Business Plan;

                  (o)      Subject to Section 8.1 hereof, approve the Transfer
of any Interest including a repurchase of an Interest by the Company;

                  (p)      appointment or removal of the Tax Matters Member; or

                  (q)      any agreement by the Company to take any of the
foregoing actions.

         4.5      Managing Member's Services and Expenses.

                  (a)      Without limiting the generality of Section 4.1 in
connection with the authority of the Managing Member, the Managing Member shall
provide or cause to be provided to the Company national advertising sales and
the administration thereof, commercial trafficking and broadcast operations
(including program delivery to affiliates of the Company), administrative
support in the areas of research, promotion, business affairs, legal affairs and
accounting (collectively, the "Management Services") pursuant to the terms of a
Management Services Agreement substantially in the form attached hereto as
Exhibit B. During each of the first two years following the Effective Date, the
Healtheon Member shall pay the Fox Member an annual fee of

                                      -21-
<PAGE>   25

$15,000,000 (the "Management Fee") for procuring the Management Services. The
Management Fee shall be paid quarterly in advance in four equal installments. In
addition to the Management Fee, all reasonable and necessary expenses
(including, but not limited to, human resources, insurance, out-of-pocket,
salary, rent, utility costs and similar expenses, but excluding general overhead
expenses and salaries, bonuses and benefits of executives serving on the Board
or monitoring the Fox Member's investment) incurred in accordance with the
Annual Budget by the Managing Member and by and from its Affiliates in
furtherance of the Business shall be paid or reimbursed by the Company.

                  (b)      Except as otherwise contemplated by this Section 4.5
or in connection with a transaction or arrangement approved in accordance with
Section 4.4 hereof, no Member shall be reimbursed for any of its overhead or
general or administrative expenses attributable to the Company, nor shall
salaries, fees, commissions or other compensation be paid by the Company to any
Member or to any Affiliates of a Member for services rendered to the Company.

         4.6      Indemnification.

                  (a)      No Member, Managing Manager or Representative
(including the Tax Matters Member) (each, an "Indemnitee") shall be liable, in
damages or otherwise, to the Company or any Member for any act or omission
performed or omitted to be performed by it or him pursuant to the authority
granted by this Agreement, except if such act or omission results from such
Person's own bad faith, fraud, gross negligence, willful breach of this
Agreement or willful or wanton misconduct. To the fullest extent permitted by
law, the Company shall indemnify and hold harmless each Indemnitee from and
against any and all losses, claims, demands, costs, damages, liabilities (joint
or several), expenses of any nature (including reasonable attorneys' fees and
disbursements), judgments, fines, settlements, and other amounts ("Damages")
arising from any and all claims, demands, actions, suits or proceedings, whether
civil, criminal, administrative or investigative, in which an Indemnitee may be
involved, or threatened to be involved, as a party or otherwise, arising out of
or incidental to the business of the Company, regardless of whether an
Indemnitee continues to be a Member, Managing Manager or Representative, or an
officer, director, shareholder, member or partner of such Member, Managing
Manager or Representative, at the time any such liability or expense is paid or
incurred, if (i) the Indemnitee acted in good faith and in a manner it or be
reasonably believed to be in, or not opposed to, the interests of the Company,
and, with respect to any criminal proceeding, had no reason to believe this
conduct was unlawful, and (ii) the Indemnitee's conduct did not constitute bad
faith, fraud, gross negligence, willful breach of this Agreement, or willful or
wanton misconduct. The termination of any action, suit or proceeding by
judgment, order, settlement, conviction, or upon a plea of nolo contendere, or
its equivalent, shall not, in and of itself, create a presumption or otherwise
constitute evidence that the Indemnitee acted in a manner contrary to that
specified in (i) or (ii) above.

                  (b)      Notwithstanding anything contained in this Section
4.6, the Company shall not indemnify and hold harmless any Indemnitee if a
judgment or other final adjudication adverse to such Indemnitee establishes: (i)
that such Indemnitee's acts were committed in bad faith or were the result of
active and deliberate dishonesty and were material to the cause of action so
adjudicated or (ii) that such Indemnitee personally gained financial profit or
other advantage to which he was

                                      -22-
<PAGE>   26

not legally entitled.

                  (c)      Expenses (including reasonable attorneys' fees and
disbursements) incurred in defending any claim, demand, action, suit or
proceeding, whether civil, criminal, administrative or investigative, hereof,
shall be paid by the Company in advance of the final disposition of such claim,
demand, action, suit or proceeding upon receipt of an undertaking by or on
behalf of the Indemnitee to repay such amount if it shall ultimately be
determined, by a court of competent jurisdiction from which no further appeal
may be taken or the time for any appeal has lapsed (or otherwise, as the case
may be) that the Indemnitee is not entitled to be indemnified by the Company as
authorized hereunder.

                  (d)      The indemnification provided by this Section 4.6
shall be in addition to any other rights to which each Indemnitee may be
entitled under any agreement or vote of the Members, as a matter of law or
otherwise, both (i) as to action in the Indemnitee's capacity as a Member,
Managing Manager or Representative or as an officer, director, shareholder,
member or partner of a Member, Managing Manager or Representative, and (ii) as
to action in another capacity, and shall continue as to an Indemnitee who has
ceased to serve in such capacity and shall inure to the benefit of the heirs,
successors, assigns, administrators and personal representatives of the
Indemnitee.

                  (e)      The Company may purchase and maintain insurance on
behalf of one or more Indemnitees and other Persons against any liability which
may be asserted against, or expense which may be incurred by, any such Person in
connection with the Company's activities, whether or not the Company would have
the power to indemnify such Person against such liability under the provisions
of this Agreement.

                  (f)      Any indemnification hereunder shall be satisfied only
out of the assets of the Company, and the Members and the Representatives shall
not be subject to personal liability by reason of these indemnification
provisions.

                  (g)      An Indemnitee shall not be denied indemnification in
whole or in part under his Section 4.6 because the Indemnitee had an interest in
the transaction with respect to which the Indemnification applies if the
transaction was otherwise permitted by the terms of this Agreement.

                  (h)      To the same extent that the Company will indemnify
and advance expenses to a Member or Representative, the Company may indemnify
and advance expenses to any officer, employee or agent of the Company.

         4.7      Officers.

                  (a)      Subject to the Healtheon Member's approval, which
approval shall not be unreasonably withheld or delayed, the Managing Member
shall appoint a chief executive officer ("CEO") of the Company. The CEO shall
appoint a chief financial officer ("CFO") and a chief operating officer ("COO").
The CEO shall have the authority to select such other officers (other than a CFO
and a COO) as may be necessary or desirable to carry out the day-to-day
management of the business and the Company.

                                      -23-
<PAGE>   27

                  (b)      Each of the Fox Member and the Healtheon Member shall
have the right, in its sole discretion, to cause the Company to terminate the
employment of any officer of the Company including the CEO, the CFO or the COO.
In case of any such termination, the terminated officer will be required to
leave his or her position within 24 hours after receiving a notice of
termination.

                  (c)      The appointment of any Person as an officer or agent
of the Company will not, in and of itself, create any contractual rights between
such Person and the Company. The officers of the Company, acting in their
capacities as such, will be agents acting on behalf of the Company as principal.

                                    ARTICLE V
                              LIABILITY OF A MEMBER

         5.1      Limited Liability. Except as otherwise provided in the Act,
the debts, obligations and liabilities of the Company (whether arising in
contract, tort or otherwise) will be solely the debts, obligations and
liabilities of the Company, and no Member of the Company (including any Person
who formerly held such status) is liable or will be obligated personally for any
such debt, obligation or liability of the Company solely by reason of such
status. No individual trustee, officer, director, employee or agent of any
Member will have any personal liability for the performance of any obligation of
such Member under this Agreement.

         5.2      Capital Contribution. Each Member is liable to the Company for
any Capital Contribution or distribution that has been wrongfully or erroneously
returned or made to such Person in violation of the Act, the Certificate or this
Agreement.

         5.3      Reliance. Any Member will be fully protected in relying in
good faith upon the records of the Company and upon such information, opinions,
reports or statements by (a) any of the Company's other Members, employees or
committees or (b) any other Person who has been selected with reasonable care as
to matters such Member reasonably believes are within such other Person's
professional or expert competence. Matters as to which such reliance may be made
include the value and amount of assets, liabilities, Profits and Losses of the
Company, as well as other facts pertinent to the existence and amount of assets
from which distributions to Members might properly be made.

                                   ARTICLE VI
                         REPRESENTATIONS AND WARRANTIES

         As of the date hereof, each of the Members hereby makes to the other
Member each of the representations and warranties set forth in this Article VI,
and such warranties and representations shall survive the execution of this
Agreement.

         6.1      Due Incorporation; Authorization. Such Member is duly
organized, validly existing

                                      -24-
<PAGE>   28

and in good standing under the laws of the jurisdiction of its incorporation or
formation and has the requisite power and authority to own its property and
carry on its business as owned and carried on at the date hereof and as
contemplated hereby. Such Member is duly licensed or qualified to do business
and in good standing in each of the jurisdictions in which the failure to be so
licensed or qualified would have a material adverse effect on its financial
condition or its ability to perform its obligations hereunder. Such Member has
the requisite power and authority to execute and deliver this Agreement and each
other agreement to which it is to be a party as contemplated hereby and to
perform its obligations hereunder and thereunder and the execution, delivery and
performance of this Agreement and each such other agreement has been duly
authorized by all necessary corporate or limited liability company action. This
Agreement constitutes the legal, valid and binding obligation of such Member.

         6.2      No Conflict. Neither the execution, delivery and performance
of this Agreement nor the consummation by such Member of the transactions
contemplated hereby will (a) conflict with, violate or result in a breach of any
of the terms, conditions or provisions of any law, regulation, order, writ,
injunction, decree, determination or award of any court, governmental
department, board, agency or instrumentality, domestic or foreign, or any
arbitrator, applicable to such Member, (b) conflict with, violate, result in a
breach of or constitute a default under any of the terms, conditions or
provisions of the articles of incorporation or bylaws or similar constituent
documents of such Member or of any material agreement or instrument to which
such Member is a party or by which such Member is or may be bound or to which
any of its material properties or assets is subject, (c) conflict with, violate,
result in a breach of, constitute a default under (whether with notice or lapse
of time or both), accelerate or permit the acceleration of the performance
required by, or require any consent, authorization or approval under any
indenture, mortgage, lease agreement or instrument to which such Member is a
party or by which such Member is or may be bound, or (d) result in the creation
or imposition of any lien upon any of the material properties or assets of such
Member., the effect of which could reasonably be expected to materially impair
such Member's ability to perform its obligations under this Agreement.

         6.3      No Conflict; No Default. There are no actions, suits,
proceedings or investigations pending or to the knowledge of such Member,
threatened against or affecting such Member or any of its properties, assets or
businesses in any court or before or by any governmental department, board,
agency or instrumentality, domestic or foreign, or any arbitrator which could,
if adversely determined (or, in the case of an investigation could lead to any
action, suit, or proceeding, which if adversely determined could) reasonably be
expected to materially impair such Member's ability to perform its obligations
under this Agreement.

         6.4      Unregistered Interests. Such Member (a) acknowledges that the
Interests are being acquired without registration under the Securities Act of
1933, as amended, or under similar provisions of state law, (b) represents and
warrants to the Company and the other Member that it is acquiring the Interest
for its own account, for investment and with no view to the distribution of the
Interest, and (c) agrees not to transfer or attempt to transfer such Interest in
the absence of registration under that Act and any applicable state securities
laws or an available exemption from such registration.

                                      -25-
<PAGE>   29

                                   ARTICLE VII
                      BOOKS AND RECORDS; REPORTS TO MEMBERS

         7.1      Books and Records.

                  (a) The following books and records of the Company shall be
kept at its principal office:

                           (i)      a current list of the full name and last
known business, residence or mailing address of each Member;

                           (ii)     originals of the Certificate and of this
Agreement, and any amendments thereto (and any signed powers of attorney
pursuant to which any such document was executed);

                           (iii)    a copy of the Company's federal, state and
local income tax returns and reports and annual financial statements of the
Company, for the five most recent years; and

                           (iv)     minutes, or minutes of action or written
consent, of every meeting of the Board.

At the Company's expense, there will also be kept at the Company's principal
office separate books of accounts for the Business, which will be a true and
accurate record of all costs and expenses incurred, all credits made and
received and all income derived in connection with the operation of the Business
in accordance with GAAP.

                  (b)      Each of the Members or its duly authorized
representatives shall have the right, upon reasonable notice, at its own
expense, to examine and inspect, during normal business hours and for any lawful
purpose related to the affairs of the Company or the investment in the Company
by such Member, any of the books of account, and business records of the
Company, and to copy any such books of account and business records of the
Company. The Company's books of account and business records shall be filed and
preserved for a period of at least five years or such longer period as required
by law.

         7.2      Financial Reports; Subscriber Reports. The Managing Member
shall deliver or cause to be delivered to each Member, no later than forty-five
(45) days after the close of each of the first three quarters of the Company's
Fiscal Year, and sixty (60) days after the end of each such Fiscal Year, a
financial report of the business and operations of the Company prepared in
accordance with GAAP, relating to such period, which report shall include a
balance sheet as of the end of such period, a statement of income (loss) and
members' Capital Accounts and cash flows (including sources and uses of funds)
for the period then ended, and in each case a comparison of the period then
ended with the corresponding period in the Fiscal Year immediately preceding
such periods, which, in the case of the report furnished after the close of the
Fiscal Year, shall be audited by the Company's independent certified public
accountants. In addition, the quarterly financial statements shall be
accompanied by an analysis, in reasonable detail, of the variance between the
Company's

                                      -26-
<PAGE>   30

operating results and the corresponding amounts in the then current Annual
Budget. The quarterly financial reports may in each case be subject to normal
year-end adjustments. In addition to the foregoing financial statements, the
financial report furnished after the close of each Fiscal Year shall also
include a statement of cash flows, and allocations to the Members of the
Company's taxable income, gains, losses, deductions and credits. The Company
will initially engage Arthur Andersen LLP as its independent certified public
accountants and thereafter such other accounting firm as the Members shall
determine. The Company shall bear the cost of each annual audit and the cost of
any other services furnished to the Company by its independent certified public
accountants as provided herein. The Managing Member shall report to the Members
on a monthly basis prior to the 20th day of the following month the number of
subscribers to the Company's Non-Standard Television Services broken down on the
basis of operators and showing the number of adds and drops for each such
period.

         7.3      Tax Returns and Information.

                  (a)      The Managing Member is hereby designated "Tax Matters
Member" for the Company and shall be so designated in each Federal information
return filed on behalf of the Company. The Tax Matters Member shall not be
liable to the Company or any Member for any act or omission taken or suffered by
it in such capacity in good faith and in the belief that such act or omission is
in or is not opposed to the best interests of the Company; provided, however
that such act or omission is not in violation of this Agreement and does not
constitute gross negligence, fraud or a willful violation of law. Within five
Business Days of receipt, each Member shall give to each other Member written
notice of receipt from any taxing authority of any notification of an audit or
investigation of the Company.

                  (b)      The Tax Matters Member shall cause income and other
required Federal, state and local tax returns for the Company to be prepared.
The Tax Matters Member shall make or maintain in effect an election under
Section 754 of the Code to adjust the basis of Company Property under Sections
734 and 743 of the Code for taxable years ending subsequent to the Effective
Date upon the request of any Member. The Tax Matters Member shall make such
other elections as it shall deem to be in the best interests of the Company and
the Members. The cost of preparation of such returns by outside preparers, if
any, shall be borne by the Company.

                  (c)      The Tax Matters Member shall cause to be provided to
each Member no later than June 30 of each year information concerning the
Company's projected taxable income or loss and each class of income, gain, loss,
deduction or credit which is relevant to reporting a Member's share of Company
income, gain, loss, deduction or credit for purposes of Federal or state income
tax. Information required for the preparation of a Member's income tax returns
shall be furnished to the Members as soon as possible after the close of the
Company's Fiscal Year.

                                      -27-
<PAGE>   31

                                  ARTICLE VIII
                   COMPANY INTERESTS; RESTRICTIONS ON TRANSFER

         8.1      Transfer. No Member shall Transfer any Interest owned by it
except for (a) Transfers to an Affiliate of the Transferor at the time, provided
that the Transferee remains an Affiliate of the Transferor immediately after the
Transfer; (b) pledges or grants of a security interest to secure loans to the
Company; or (c) Transfers made in compliance with Section 8.5 hereof, if
applicable. Any Transfer of an Interest other than as specifically permitted by
this Section 8.1 shall be void and of no effect. It is agreed that if the Fair
Market Value of any Member's Interest equals 25% or more of the Fair Market
Value of such Member's total assets determined on the date any proposed Transfer
of any equity interest in such Member is to be consummated, any Transfer of any
equity interest in such Member shall constitute a Transfer hereunder. The
Members shall be responsible to cause the owners of their respective equity
interests to enter into agreements as may be necessary to enable such Member to
ensure compliance with this provision.

         8.2      Admission as a Member. No Transferee of any Interests from a
Member shall be admitted to the Company as a Member unless the Transfer shall
have been made in accordance with this Agreement and the Transferee shall have
executed an instrument satisfactory to the non-Transferring Member, whereby such
Transferee agrees to abide by the terms and conditions of this Agreement and
become a Member of the Company.

         8.3      No Right to Withdraw. No Member shall have any right to resign
or otherwise withdraw from the Company prior to the dissolution and winding up
of the Company, without the express written consent of the other Member.

         8.4      Corporate Conversion.

                  (a)      Upon the execution of this Agreement, it is the
express intention and understanding of the existing Members and those Persons
who became Members at the time of the execution of this Agreement that upon the
occurrence of certain events the Company shall be converted into a corporation
in the manner set forth herein by the action of the Board and without the
necessity of any action or any investment decision on the part of any Member.

                  (b)      Upon the determination by the Board, the Managing
Member shall cause a Corporate Conversion by merger into another corporation or
otherwise, and in connection therewith cause the conversion of the Interests
into the capital stock of any resulting corporation having relative rights,
limitations, preferences and other terms consistent with the Interests so
converted.

                  (c)      The Members shall have no appraisal rights pursuant
to the Act, applicable law or otherwise in connection with a Corporate
Conversion or any other transaction authorized under this Agreement.

                  (d)      In connection with the consummation of a Corporate
Conversion, the Board shall have the authority to merge, consolidate or
reorganize one or more of the subsidiaries with one

                                      -28-
<PAGE>   32

or more other subsidiaries or other entities wholly-owned directly or indirectly
by the Company or the surviving corporation in the Corporate Conversion.

                  (e)      The board is specifically authorized to take any and
all further action, and to execute, deliver and file any and all additional
agreements, documents or instruments, as it may determine to be necessary or
appropriate in order to effectuate the provisions of this Section 8.4, and each
Member hereby agrees to execute, deliver and file any such agreements, documents
or instruments or to take such action as may be reasonably requested by the
Board for the purpose of effectuating the provisions of this Section 8.4.

         8.5      Put/Call.

                  (a)      At any time within the 45 day period commencing on
the fifth anniversary of the Effective Date, the Fox Member shall have the right
to require the Healtheon Member to purchase (the "Put") from the Fox Member, and
the Healtheon Member shall have the right to require the Fox Member to sell to
the Healtheon Member (the "Call"), all (but not less than all) of the Fox
Member's Interests in the Company. The parties shall structure the Transfer of
Interests pursuant to the Section as a transaction which qualifies as a tax-free
reorganization under Section 368 of the Code. The consideration due upon
consummation of the Put or the Call, as the case may be, shall be shares of
Common Stock of Healtheon/WebMD, such shares of Common Stock shall be issuable
to the Fox Member or its designee and shad be based on the number of Subscribers
to the Non-Standard Television Services operated by the Company as of the fifth
anniversary of the Effective Date, to be determined as follows:

                           (i)      if the number of Subscribers is less than 20
million, no shares of Common Stock will be issuable, and the consideration shall
be $1.00;

                           (ii)     if the number of subscribers is 50 million
or greater, the consideration shall be the issuance 8,291,939 shares of Common
Stock; and

                           (iii)    if the number of Subscribers is 20 million
or more, but less than 50 million, the consideration shall be, the issuance of a
prorated number of shares of Common Stock between 1 and 8,291,939, based on the
actual number of Subscribers between 20 million and 50 million.

         For the purposes hereof, "Subscriber" shall mean as of any date a
subscriber to the Non-Standard Television Services operated by the Company as of
such date who (a) is no more than 60 days past due in payment (measured from the
date the relevant bill is issued), (b) has received and paid for in full the
programming service operated by the Company for at least one month following the
later of the date of activation and the conclusion of any promotional or "free"
months, if any, (c) became a subscriber as a result of ordinary marketing
practices in the normal course of business and (d) is capable of receiving at
least 24 hours per day, 7 days per week (subject to system failure) of the
Non-Standard Television Services operated by the Company.

                                      -29-
<PAGE>   33

         (b)      The closing of the purchase and sale pursuant to this Section
8.5 shall be held at the principal place of business of the Company or at such
other mutually acceptable place on a mutually acceptable date no later than the
later of (i) 30 days after the final determination of the number of Subscribers
as set forth in Section 8.5(a) hereof or (ii) 10 days after the expiration or
early termination of the applicable waiting period under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 ("HSR") or the completion of other applicable
regulatory proceedings. The parties agree to cooperate with each other in filing
all necessary notices and related materials to comply with the provisions of HSR
or other regulatory requirements, if applicable. At such closing, the Fox Member
shall assign to the Healtheon Member, or its designees, the Company Interest of
the Fox Member, and shall execute such documents and instruments as may be
necessary to effectuate the sale of the Interest free and clear of all Liens.
The Fox Member shall represent and warrant in writing that it is the owner and
holder of the Interest which it is selling, free and clear of all Liens (other
than pledges or security interests that secure indebtedness of the Company),
that the Fox Member is the record and beneficial owner of the such Interest, and
that it has the full right, power and authority to convey such Interest to the
Healtheon Member.

                                   ARTICLE IX
                           DISSOLUTION AND LIQUIDATION

         9.1      Dissolution. Dissolution of the Company will occur upon the
happening of any of the following events:

                  (a)      the sale or other disposition of all or substantially
all of the Company's assets;

                  (b)      the affirmative vote of all of the Members; or

                  (c)      the entry of a decree of Judicial dissolution under
the Act.

         9.2      Exclusive Means of Dissolution. The exclusive means by which
the Company may be dissolved are set forth in 9.1. The Company will not be
dissolved upon the death, retirement, resignation, expulsion, bankruptcy or
dissolution of any Member or upon the occurrence of any other event which
terminates the continued membership of any Member in the Company.

         9.3      Liquidation. Upon Dissolution of the Company, the Company will
immediately proceed to wind up its affairs and liquidate pursuant to this 9.3.
Following Dissolution, the Board shall appoint a person to serve as the
liquidating trustee and thus be charged with the duty to wind up the affairs of
the Company and distribute its assets as provided herein. A reasonable time will
be allowed for the orderly Liquidation of the Company and the discharge of
liabilities to creditors so as to enable the Company to minimize any losses
attendant upon Liquidation. Any gain or loss on disposition of any Company
assets in Liquidation will be allocated to Members in accordance with the
provisions of Section 3.6. Any liquidating trustee is entitled to reasonable
compensation for services actually performed, as approved by the Board, and may
contract for such assistance in the liquidating process as such Person deems
necessary or desirable. Until the filing of a certificate of cancellation under
9.9, and without affecting the liability of the Members and without imposing

                                      -30-
<PAGE>   34

liability on the liquidating trustee, the liquidating trustee may settle and
close the Company's business, prosecute and defend suits, dispose of its
property, discharge or make provision for its liabilities, and make
Distributions in accordance with the priorities set forth in this Article.

         9.4      Priority of Payment. If the Company is dissolved the assets of
the Company will be distributed in Liquidation in the following order:

                  (a)      First, to creditors by the payment or provision for
payment of the debts and liabilities of the Company (other than any loans or
advances that may have been made by any Member or Affiliate) and the expenses of
Liquidation;

                  (b)      Second, to the setting up of any reserves that are
reasonably necessary for any contingent, conditional or unmatured liabilities or
obligations of the Company;

                  (c)      Third, to the repayment of any loans or advances to
the Company that may have been made by any Member or any Affiliate of a Member
(according to the relative priority of repayment of such loans or advances and
proportionally among loans or advances of equal priority if the amount available
for repayment is insufficient for payment in full); and

                  (d)      Fourth, to the Members in proportion to the positive
balances in their respective Capital Accounts after such Capital Accounts have
been adjusted for all allocations of Profits and Losses and items thereof for
the Fiscal Year during which such liquidation occurs.

         9.5      Liquidating Distributions. If the Company is dissolved, the
liquidating distributions due to the Members will be made by selling the assets
of the Company and distributing the net proceeds. Notwithstanding the preceding
sentence, but only upon the affirmative vote of all Members, the liquidating
distributions may be made by distributing the assets of the Company in kind to
the Members in proportion to the amounts distributable to them pursuant to
Section 9.4, valuing such assets at their Fair Market Value (net of liabilities
secured by such property that the Member takes subject to or assumes) on the
date of distribution. Each Member agrees to save and hold harmless the other
Members from such Member's proportionate share of any and all such liabilities
which are taken subject to or assumed. Appropriate and customary prorations and
adjustments will be made incident to any distribution in kind. The Members will
look solely to the assets of the Company for the return of their Capital
Contributions, and if the assets of the Company remaining after the payment or
discharge of the debts and liabilities of the Company are insufficient to return
such contributions, they will have no recourse against any other Member. The
Members acknowledge that Section 9.4 may establish distribution priorities
different from those set forth in the provisions of the Act applicable to
distributions upon Liquidation, and the Members agree that they intend, to that
extent, to vary those provisions by this Agreement.

         9.6      No Restoration Obligation. Nothing contained in this Agreement
imposes on any Member an obligation to make an Additional Capital Contribution
in order to restore a deficit Capital Account upon Liquidation of the Company.

                                      -31-
<PAGE>   35

         9.7      Timing. Final distributions in Liquidation will be made by the
end of the Company's Fiscal Year in which such actual Liquidation occurs (or, if
later, within 90 days after such event) in the manner required to comply with
the Section 704(b) of the Treasury Regulations. Payments or distributions in
Liquidation may be made to a liquidating trust established by the Company for
the benefit of those entitled to payments under Section 9.4, in any manner
consistent with this Agreement and the Section 704(b) of the Treasury
Regulations.

         9.8      Liquidating Reports. A report will be submitted with each
liquidating distribution to Members made pursuant to 9.5, showing the
collections, disbursements and distributions during the period which is
subsequent to any previous report. A final report, showing cumulative
collections, disbursements and distributions, will be submitted upon completion
of the Liquidation.

         9.9      Certificate of Cancellation. Upon Dissolution of the Company
and the completion of the winding up of its business, the Company will file a
certificate of cancellation (to cancel the Certificate of Formation) with the
Delaware Secretary of State pursuant to the Act. At such time, the Company will
also file an application for withdrawal of its certificate of authority in any
jurisdiction where it is then qualified to do business. A certificate of
cancellation will also be filed at any time when there are no Members.

                                    ARTICLE X
                              ADDITIONAL AGREEMENTS

         10.1     Licenses. In connection with the formation of the Company, the
Healtheon Member shall procure a trademark license agreement, substantially in
the form annexed hereto as Exhibit C and a content license agreement,
substantially in the form annexed hereto as Exhibit D.

                                   ARTICLE XI
                                  MISCELLANEOUS

         11.1     Waiver of Partition. Except as may be otherwise provided by
law in connection with the winding-up, liquidation and dissolution of the
Company, each Member hereby irrevocably waives any and all rights that it may
have to maintain an action for partition of any of the Company Property.

         11.2     Modification; Waivers. This Agreement may be modified or
amended only with the written consent of each Member. Except as otherwise
specifically provided herein, no Member shall be released from its obligations
hereunder without the written consent of the other Member. The observance of any
terms of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively) by the party or parties
entitled to enforce such term, but any such waiver shall be effective only if in
a writing signed by the party or parties against which such waiver is to be
asserted. Except as otherwise specifically provided herein, no delay on the part
of any party hereto in exercising any right, power or privilege hereunder shall
operate as a

                                      -32-
<PAGE>   36

waiver thereof, nor shall any waiver on the part of any party hereto of any
right, power or privilege hereunder operate as a waiver of any other right,
power or privilege hereunder nor shall any single or partial exercise of any
right, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege hereunder.

         11.3     Entire Agreement. This Agreement, and the documents expressly
referred to herein, and all related documents, each as amended, constitute the
entire agreement among the Members with respect to the subject matter hereof and
supersede any prior agreement or understanding between or among the Members with
respect to such subject matter.

         11.4     Severability. If any provision of this Agreement, or the
application of such provision to any Person or circumstance, shall be held
invalid, the remainder of this Agreement or the application of such provision to
other Persons or circumstances shall not be affected thereby; provided, however
that the parties shall negotiate in good faith with respect to an equitable
modification of the provision or application thereof held to be invalid.

         11.5     Notices. All notices, requests, demands, consents and other
communications required or permitted to be given hereunder shall be in writing
and shall be deemed to have been duly given on the date delivered by hand or on
the third Business Day after such notice is mailed by registered or certified
mail, postage prepaid, and, pending the designation by written notice of another
address, addressed as follows:

         If to the Fox Member:

                           Fox Member
                           c/o News America Incorporated
                           1211 Avenue of the Americas
                           New York, New York  10036
                           Telecopier:  (212) 768-2029
                           Attn:        Arthur M. Siskind, Esq.

         With a copy to:

                           Squadron, Ellenoff, Plesent & Sheinfeld, LLP
                           551 Fifth Avenue
                           New York, New York  10176
                           Attention:   Joel I. Papernik, Esq.
                           Telecopier:  (212) 697-6686

                                      -33-
<PAGE>   37

         If to the Healtheon Member:

                           c/o Healtheon/WebMD Corporation
                           400 The Lenox Building
                           Atlanta, Georgia  30326, USA
                           Telephone:  (404) 479-7600
                           Telecopier:  (404) 479-7651
                           Attention:       Jeffrey T. Arnold
                                            Chief Executive Officer

         With a copy to:

                           Nelson Mullins Riley & Scarborough, L.L.P.
                           Bank of America Corporate Center
                           Suite 2600, 100 Tryon Street
                           Charlotte, North Carolina  28202
                           Telecopier:      __________
                           Attention:       H. Bryan Ives III, Esq.
                                            C. Mark Kelly, Esq.

         11.6     Successors and Assigns. Except as otherwise specifically
provided herein, this Agreement shall be binding upon and inure to the benefit
of the Members and their legal representatives, successors and permitted
assigns.

         11.7     Counterparts. This Agreement may be executed in one or more
counterparts, all of which together shall constitute one and the same
instrument.

         11.8     Headings, Cross-references. The Article and Section headings
in this Agreement are for convenience of reference only, and shall not be deemed
to alter or affect the meaning or interpretation of any provisions hereof.

         11.9     Construction. None of the provisions of this Agreement shall
be for the benefit of or enforceable by any creditors of the Company. No one,
including but not limited to the Members or any creditor of the Company or any
of its Members, shall have any rights under this Agreement against any Affiliate
of any Member.

         11.10    Property Rights, Confidentiality. All books, records and
accounts maintained exclusively for the Company (including, without limitation,
marketing reports and all other data whether stored on paper or in electronic or
other form), and any contracts or agreements (including, without limitation,
agreements for the purchase, lease or license of programming) entered into by or
exclusively on behalf of the Company, shall at all times be the exclusive
property of the Company. All property (real or personal or mixed) purchased with
Company funds, and all moneys held or collected for or on behalf of the Company
shall at all times be the exclusive property of the Company. Except as expressly
agreed to by the Members, no Member shall, during the period such

                                      -34-
<PAGE>   38

Member is a Member and for a period ending two (2) years after such Member has
ceased to be a Member, disclose any confidential or proprietary information with
respect to the Company to any Person, except (a) with the prior written consent
of the other Member; (b) to the extent necessary to comply with law or the valid
order of a court of competent jurisdiction, in which event the party making such
disclosure shall so notify the other Member as promptly as practicable (and, if
possible, prior to making such disclosure) and shall seek confidential treatment
of such information; (c) as part of its normal reporting or review procedure to
its parent company, its auditors and its attorneys; provided, however, that such
Member shall be liable for any breach by such parent company, auditors or
attorneys of any provision of this Section 11.10; (d) in connection with the
enforcement of such Member's rights hereunder; (e) disclosures to an Affiliate
of, or professional advisor to, such Member in connection with the performance
by such Member of its obligations hereunder; provided, however that such Member
shall be liable for any breach by such Affiliate or professional advisor of any
provision of this Section; and (f) to a prospective purchaser of all or a
portion of such Member's Interest in connection with a sale in accordance with
the terms of this Agreement; provided, however, that such Member shall be liable
for any breach by such prospective purchaser of any provision of this Section.
Except as provided in the preceding sentence, no Member, nor any of its
Affiliates, shall, during the periods referred to in such sentence, use any
confidential or proprietary information with respect to the Company other than
for the benefit of the Company. This Section 11.10 hereof shall survive the
termination of this Agreement, the Dissolution of the Company, the withdrawal of
any Member and the Transfer of the Interest of any Member.

         11.11    Further Actions. Each Member shall execute and deliver such
other certificates, agreements and documents, and take such other actions, as
may reasonably be required in connection with the formation and continuation of
the Company and the achievement of its purposes.

         11.12    Governing Law; Forum. This Agreement will be governed by, and
construed in accordance with the laws of the State of Delaware without regard to
any conflicts of laws rules. Any conflict or apparent conflict between this
Agreement and the Act will be resolved in favor of this Agreement, except as
otherwise required by the Act.

         11.13    Expenses of the Parties. All expenses incurred by or on behalf
of the parties hereto in connection with the authorization, preparation and
consummation of this Agreement, including, without limitation, all fees and
expenses of agents, representatives, counsel and accountants employed by the
parties hereto in connection with the authorization, preparation, execution and
consummation of this Agreement shall be borne solely by the party who shall have
incurred the same.

                                      -35-
<PAGE>   39

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their officers or members hereunto duly authorized as of the date
first written above.

                                            HEALTHEON WEB/MD CABLE CORPORATION

                                            By:               /s/
                                                --------------------------------
                                                Name:    W. Michael Heekin
                                                Title:   Vice President

                                            AHN/FIT CABLE, LLC

                                            By:               /s/
                                                --------------------------------
                                                Name:    Daniel Fawcett
                                                Title:   Exec. Vice President

         The undersigned, by executing this Agreement, hereby unconditionally
guarantees the full and prompt payment and performance of all obligations of the
Healtheon Member set forth in this Agreement. This is a guaranty of payment and
not of collection.

                                            HEALTHEON/WEBMD CORPORATION

                                            By:               /s/
                                                --------------------------------
                                                Name:    W. Michael Heekin
                                                Title:   Exec. Vice President

         The undersigned, by executing this Agreement, hereby unconditionally
guarantees the full and prompt payment and performance of all obligations of the
News Member set forth in this Agreement. This is a guaranty of payment and not
of collection.

                                            THE NEWS CORPORATION LIMITED

                                            By:               /s/
                                                --------------------------------
                                                Name:    Arthur Siskind
                                                Title:   Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00009-of-00352.parquet"}]]