Document:

EX-10.10

 

Exhibit 10.10

GUARANTY

          GUARANTY, dated as of June 22, 2007 (as amended, supplemented, or otherwise modified from time
to time, this “Guaranty”), made by NY CREDIT OPERATING PARTNERSHIP, LP, a limited
partnership having offices at 230 Park Avenue, New York, New York 10169 (the “Guarantor”),
in favor of MERRILL LYNCH MORTGAGE LENDING, INC. (the “Buyer”).

RECITALS

          Pursuant to the Master Repurchase Agreement, dated as of the date hereof (as further amended,
supplemented or otherwise modified from time to time, the “Repurchase Agreement”), among NY
Credit Funding II, LLC (the “Seller”), the Buyer and the Guarantor, the Buyer has agreed
from time to time to enter into transactions in which the Seller agrees to transfer to Buyer
Purchased Assets against the transfer of funds by Buyer, with a simultaneous agreement by Buyer to
transfer to Seller such Purchased Assets at a date certain or on demand, against the transfer of
funds by Seller. Each such transaction shall be referred to herein as a “Transaction”. It
is a condition precedent to the obligation of the Buyer to enter into Transactions under the
Repurchase Agreement that the Guarantor shall have executed and delivered this Guaranty to the
Buyer.

          NOW, THEREFORE, in consideration of the foregoing premises, to induce the Buyer to
enter into Transactions under the Repurchase Agreement, the Guarantor hereby agrees with the Buyer,
as follows:

          1. Defined Terms. Unless otherwise defined herein, terms which are defined in the
Repurchase Agreement and used herein are so used as so defined.

          (a) For purposes of this Guaranty, “Obligations” shall mean any amount due and payable
to the Buyer under the Repurchase Agreement or any other Program Agreement.

          2. Guaranty. (a) The Guarantor hereby unconditionally and irrevocably guarantees to
the Buyer the prompt and complete payment and performance by the Seller when due (whether at the
stated maturity, by acceleration or otherwise) of the Obligations subject to any applicable grace
period under the Repurchase Agreement.

          (a) The Guarantor further agrees to pay any and all out-of-pocket expenses (including, without
limitation, all reasonable fees and disbursements of counsel) which may be paid or incurred by the
Buyer in enforcing, or obtaining advice of counsel in respect of, any rights with respect to, or
collecting, any or all of the Obligations and/or enforcing any rights with respect to, or
collecting against, the Guarantor under this Guaranty.

          (b) In the event that any of the Purchased Assets are unable to be deposited into the CDO
Transaction due to limitations imposed by any Rating Agency, the Guarantor further

 

 

agrees to purchase, or cause the purchase of, such Purchased Assets from the Buyer in
immediately available funds no later than the Closing Date.

          (c) This Guaranty shall remain in full force and effect until the later of (i) the termination
of the Repurchase Agreement or (ii) the Obligations have been satisfied in full.

          (d) Guarantor agrees that whenever, at any time, or from time to time, the Guarantor shall
make any payment to the Buyer on account of the Guarantor’s liability hereunder, the Guarantor will
notify the Buyer in writing that such payment is made under this Guaranty for such purpose.

          (e) Notwithstanding anything herein to the contrary, the Guarantor hereby indemnifies and
holds harmless the Buyer and its successors with respect to any losses arising from the failure of
such party to fulfill its future funding obligations under any related Future Funding Commitment.

          3. Right of Set-off. The Buyer is hereby irrevocably authorized at any time and from
time to time without notice to the Guarantor, any such notice being hereby waived by the Guarantor,
to set off and appropriate and apply any and all monies and other property of the Guarantor,
deposits (general or special, time or demand, provisional or final), in any currency, and any other
credits, indebtedness or claims, in any currency, in each case whether direct or indirect, absolute
or contingent, matured or unmatured, at any time held or owing by the Buyer of any affiliate
thereof to or for the credit or the account of the Guarantor, or any part thereof in such amounts
as the Buyer may elect, on account of the Obligations. The Buyer shall notify the Guarantor
promptly of any such set-off and the application made by the Buyer, provided that the failure to
give such notice shall not affect the validity of such set-off and application. The rights of the
Buyer under this paragraph are in addition to other rights and remedies (including, without
limitation, other rights of set-off) which the Buyer may have.

          4. Subrogation. The Guarantor will not exercise any rights that it may acquire by way
of subrogation until all Obligations to the Buyer shall have been paid in full. If any amount
shall be paid to the Guarantor on account of such subrogation rights at any time when all of the
Obligations shall not have been paid in full, such amounts shall be held by the Guarantor in trust
for the Buyer, segregated from other funds of the Guarantor, and shall, forthwith upon receipt by
the Guarantor, be turned over to the Buyer in the exact form received by the Guarantor (duly
indorsed by the Guarantor to the Buyer, if required), to be applied against the Obligations,
whether matured or unmatured, in such order as the Buyer may determine.

          5. Amendments, etc. with Respect to the Obligations. Guarantor shall remain obligated
hereunder notwithstanding that, without any reservation of rights against the Guarantor, and
without notice to or further assent by the Guarantor, any demand for payment of any of the
Obligations made by the Buyer may be rescinded by the Buyer, and any of the Obligations continued,
and the Obligations, or the liability of any other party upon or for any part thereof, or any
collateral security or guarantee therefor or right of offset with respect thereto, may, from time
to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised,
waived, surrendered or released by the Buyer, and the Repurchase

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Agreement, and the other Program Agreements and any other document in connection therewith may
be amended, modified, supplemented or terminated, in whole or in part, as the Buyer may deem
advisable from time to time, and any collateral security, guarantee or right of offset at any time
held by the Buyer for the payment of the Obligations may be sold, exchanged, waived, surrendered or
released. The Buyer shall have no obligation to protect, secure, perfect or insure any Lien at any
time held by it as security for the Obligations or for this Guaranty or any property subject
thereto. When making any demand hereunder against the Guarantor, the Buyer may, but shall be under
no obligation to, make a similar demand on the Seller and any failure by the Buyer to make any
such demand or to collect any payments from the Seller or any release of the Seller shall not
relieve the Guarantor of its obligations or liabilities hereunder, and shall not impair or affect
the rights and remedies, express or implied, or as a matter of law, of the Buyer against the
Guarantor. For the purposes hereof “demand” shall include the commencement and continuance of any
legal proceedings.

          6. Guaranty Absolute and Unconditional. (a) Guarantor waives any and all notice of
the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of
reliance by the Buyer upon this Guaranty or acceptance of this Guaranty; the Obligations, and any
of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed,
extended, amended or waived in reliance upon this Guaranty; and all dealings between the Seller or
the Guarantor, on the one hand, and the Buyer, on the other, shall likewise be conclusively
presumed to have been had or consummated in reliance upon this Guaranty. Guarantor waives
diligence, presentment, protest, demand for payment and notice of default or nonpayment to or upon
the Seller or the Guaranty with respect to the Obligations. This Guaranty shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (i) the validity or
enforceability of the Repurchase Agreement, the other Program Agreements, any of the Obligations or
any collateral security therefor or guarantee or right of offset with respect thereto at any time
or from time to time held by the Buyer, (ii) any defense, set-off or counterclaim (other than a
defense of payment) which may at any time be available to or be asserted by the Seller against the
Buyer, or (iii) any other circumstance whatsoever (with or without notice to or knowledge of the
Seller or the Guarantor) which constitutes, or might be construed to constitute, an equitable or
legal discharge of the Seller for the Obligations, or of the Guarantor under this Guaranty, in
bankruptcy or in any other instance. When pursuing its rights and remedies hereunder against the
Guarantor, the Buyer may, but shall be under no obligation, to pursue such rights and remedies that
they may have against the Seller or any other Person or against any collateral security or
guarantee for the Obligations or any right of offset with respect thereto, and any failure by the
Buyer to pursue such other rights or remedies or to collect any payments from the Seller or any
such other Person or to realize upon any such collateral security or guarantee or to exercise any
such right of offset, or any release of the Seller or any such other Person or any such collateral
security, guarantee or right of offset, shall not relieve the Guarantor of any liability hereunder,
and shall not impair or affect the rights and remedies, whether express, implied or available as a
matter of law, of the Buyer against the Guarantor. This Guaranty shall remain in full force and
effect and be binding in accordance with and to the extent of its terms upon the Guarantor and
their successors and assigns thereof, and shall inure to the benefit of the Buyer, and successors,
indorsees, transferees and assigns, until all the Obligations and the obligations of the Guarantor
under this Guaranty

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shall have been satisfied by payment in full, notwithstanding that from time to time during
the term of the Repurchase Agreement the Seller may be free from any Obligations.

          (a) Without limiting the generality of the foregoing, Guarantor hereby agrees, acknowledges,
and represents and warrants to the Buyer as follows:

     (i) Guarantor hereby waives any defense arising by reason of, and any and all right to
assert against the Buyer any claim or defense based upon, an election of remedies by the
Buyer which in any manner impairs, affects, reduces, releases, destroys and/or extinguishes
Guarantor’s subrogation rights, rights to proceed against the Seller or any other guarantor
for reimbursement or contribution, and/or any other rights of the Guarantor to proceed
against the Seller, against any other guarantor, or against any other person or security.

     (ii) Guarantor is presently informed of the financial condition of the Seller and of
all other circumstances which diligent inquiry would reveal and which bear upon the risk of
nonpayment of the Obligations. The Guarantor hereby covenants that it will make its own
investigation and will continue to keep itself informed of the Seller’s financial condition,
the status of other guarantors, if any, of all other circumstances which bear upon the risk
of nonpayment and that it will continue to rely upon sources other than the Buyer for such
information and will not rely upon the Buyer for any such information.

     (iii) Guarantor has independently reviewed the Repurchase Agreement and related
agreements and has made an independent determination as to the validity and enforceability
thereof, and in executing and delivering this Guaranty to the Buyer, Guarantor is not in any
manner relying upon the validity, and/or enforceability, and/or attachment, and/or
perfection of any Liens or security interests of any kind or nature granted by the Seller or
any other guarantor to the Buyer, now or at any time and from time to time in the future.

          7. Reinstatement. This Guaranty shall continue to be effective, or be reinstated, as
the case may be, if at any time payment, or any part thereof, of any of the Obligations is
rescinded or must otherwise be restored or returned by the Buyer upon the insolvency, bankruptcy,
dissolution, liquidation or reorganization of the Seller or upon or as a result of the appointment
of a receiver, intervenor or conservator of, or trustee or similar officer for, the Seller or any
substantial part of its property, or otherwise, all as though such payments had not been made.

          8. Payments. Guarantor hereby agrees that the Obligations will be paid to the Buyer
without set-off in U.S. Dollars.

          9. Representations and Warranties. Guarantor represents and warrants that:

          (a) it is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization and has the power and authority and the legal right to own and
operate its property, to lease the property it operates as lessee and to conduct the business in
which it is currently engaged;

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          (b) it has the power and authority and the legal right to execute and deliver, and to perform
its obligations under, this Guaranty and has taken all necessary action to authorize its execution,
delivery and performance of this Guaranty;

          (c) this Guaranty has been duly executed and delivered by the Guarantor and constitutes a
legal, valid and binding obligation of the Guarantor enforceable in accordance with their terms,
except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or
other similar laws affecting the enforcement of creditors’ rights generally and by general
principles of equity (whether enforcement is sought in proceedings in equity or at law);

          (d) the execution, delivery and performance of this Guaranty will not violate any provision of
the charter, by-laws or other organizational documents of the Guarantor, or any law, treaty, rule
or regulation or determination of an arbitrator, a court or other governmental authority,
applicable to or binding upon the Guarantor or any of its property or to which the Guarantor or any
of its property is subject (“Requirement of Law”), or any provision of any security issued
by the Guarantor or of any agreement, instrument or other undertaking to which the Guarantor is a
party or by which it or any of its property is bound (“Contractual Obligation”), and will
not result in or require the creation or imposition of any Lien on any of the properties or
revenues of the Guarantor pursuant to any Requirement of Law or Contractual Obligation of the
Guarantor;

          (e) no consent or authorization of, filing with, notice to, or other act by or in respect of,
any Governmental Authority or any other Person (including, without limitation, any stockholder or
creditor of the Guarantor) is required in connection with the execution, delivery, performance,
validity or enforceability of this Guaranty;

          (f) no litigation, investigation or proceeding of or before any arbitrator or Governmental
Authority is pending or, to the knowledge of the Guarantor, threatened by or against the Guarantor
or against any of the Guarantor’s properties or revenues (i) with respect to this Guaranty or any
of the transactions contemplated hereby or thereby, or (ii) which has any reasonable likelihood of
having a Material Adverse Effect on the business, operations, property or financial or other
condition of the Guarantor; and

          (g) the Guarantor has filed or caused to be filed all tax returns which, to the knowledge of
the Guarantor, are required to be filed and has paid all taxes shown to be due and payable on said
returns or on any assessments made against him or any of the Guarantor’s property and all other
taxes, fees or other charges imposed on him or any of the Guarantor’s property by any Governmental
Authority (other than any the amount or validity of which are currently being contested in good
faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have
been provided on the books of the Guarantor); no tax Lien has been filed, and, to the knowledge of
the Guarantor, no claim is being asserted, with respect to any such tax, fee or other charge.

          Guarantor agrees that the foregoing representations and warranties shall be deemed to have
been made by the Guarantor on the date of each Transaction under the

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Repurchase Agreement on and as of such Purchase Date as though made hereunder on and as of
such date.

          10. Covenants. The Guarantor covenants and agrees that the Guarantor will not change
its legal name or primary residence without having provided to the Buyer prior written notice of
any such change.

          11. Event of Default. If an Event of Default under the Repurchase Agreement shall
have occurred and be continuing, the Guarantor agrees that, as between the Guarantor and Buyer, the
Obligations may be declared to be due for purposes of this Guaranty notwithstanding any stay,
injunction or other prohibition which may prevent, delay or vitiate any such declaration as against
a Seller and that, in the event of any such declaration (or attempted declaration), such
Obligations shall forthwith become due by the Guarantor for purposes of this Guaranty.

          12. Severability. Any provision of this Guaranty which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

          13. Headings. The paragraph headings used in this Guaranty are for convenience of
reference only and are not to affect the construction hereof or be taken into consideration in the
interpretation hereof.

          14. No Waiver; Cumulative Remedies. The Buyer shall not by any act (except by a
written instrument pursuant to paragraph 15 hereof), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event
of Default or in any breach of any of the terms and conditions hereof. No failure to exercise, nor
any delay in exercising, on the part of the Buyer, any right, power or privilege hereunder shall
operate as a waiver thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise of any other right,
power or privilege. A waiver by the Buyer of any right or remedy hereunder on any one occasion
shall not be construed as a bar to any right or remedy which the Buyer would otherwise have on any
future occasion. The rights and remedies herein provided are cumulative, may be exercised singly
or concurrently and are not exclusive of any rights or remedies provided by law.

          15. Waivers and Amendments; Successors and Assigns; Governing Law. None of the terms
or provisions of this Guaranty may be waived, amended, supplemented or otherwise modified except by
a written instrument executed by the Guarantor and the Buyer, provided that any provision of this
Guaranty may be waived by the Buyer in a letter or agreement executed by the Buyer or by facsimile
or electronic transmission from the Buyer. This Guaranty shall be binding upon the heirs, personal
representatives, successors and assigns of the Guarantor and shall inure to the benefit of the
Buyer and its respective successors and assigns.

          16. Notices. Notices by the Buyer to the Guarantor may be given by mail, or by
telecopy transmission, addressed to the Guarantor at the Guarantor’s address or transmission

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number set forth under its signature below and shall be effective (a) in the case of mail,
five days after deposit in the postal system, first class certified mail and postage pre-paid, (b)
one Business Day following timely delivery to a nationally recognized overnight courier service for
next Business Day delivery and (c) in the case of telecopy transmissions, when sent, transmission
electronically confirmed.

          17. Jurisdiction.

          (a) THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK (DISREGARDING SUCH STATE’S LAW ON CONFLICTS OF LAWS).

          (b) GUARANTOR HEREBY WAIVES TRIAL BY JURY. GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE
EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK, OR IN THE UNITED STATES DISTRICT
COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, ARISING OUT OF OR RELATING TO THE PROGRAM AGREEMENTS
IN ANY ACTION OR PROCEEDING. GUARANTOR HEREBY SUBMITS TO, AND WAIVES ANY OBJECTION IT MAY HAVE TO,
EXCLUSIVE PERSONAL JURISDICTION AND VENUE IN THE COURTS OF THE STATE OF NEW YORK AND THE UNITED
STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK, WITH RESPECT TO ANY DISPUTES ARISING
OUT OF OR RELATING TO THE PROGRAM AGREEMENTS.

          18. Integration. This Guaranty represents the agreement of the Guarantor with respect
to the subject matter hereof and there are no promises or representations by the Buyer relative to
the subject matter hereof not reflected herein.

          19. Acknowledgments. Guarantor hereby acknowledges that:

          (a) Guarantor has been advised by counsel in the negotiation, execution and delivery of this
Guaranty;

          (b) the Buyer does not have any fiduciary relationship to the Guarantor, and the relationship
between the Buyer and the Guarantor is solely that of surety and creditor; and

          (c) no joint venture exists between the Buyer and the Guarantor or among the Buyer, the Seller
and the Guarantor.

[ Signature pages follow ]

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          IN WITNESS WHEREOF, the undersigned has caused this Guaranty to be duly executed and delivered
as of the date first above written.

	 	 	 	 	 
	 	NY CREDIT OPERATING PARTNERSHIP LP, as Guarantor	 
	 	 	 
	 	By:  	NYCC GP LLC, its general partner
 	 
	 	 	 
	 	By:  	                                               /s/ William V. Adamski
 	 
	 	 	Name:  	William V. Adamski 	 
	 	 	Title:  	Senior Managing Director 	 

	 	 	 
	 
	 	Address for Notices:
	 
	 	 
	 
	 	NY Credit Operating Partnership LP
	 
	 	c/o NY Credit Advisors, LLC,
	 
	 	230 Park Avenue
	 
	 	New York, New York 10169EX-10.1

 

Exhibit 10.1

MEDASSETS, INC.

2004 LONG-TERM INCENTIVE PLAN

As Amended Effective January 1, 2007

	1.	 	Purpose

	 	 	 	The purpose of the Plan is to provide a means through which the Company and its
Subsidiaries may attract able persons to become and remain directors of the
Company and enter and remain in the employ of the Company and its Subsidiaries,
and may reward certain individuals determined to be key contributors to the
success of the Company; and to provide a means whereby employees, directors and
consultants of the Company and its Subsidiaries can acquire and maintain Common
Stock ownership, or be paid incentive compensation measured by reference to the
value of Common Stock, thereby strengthening their commitment to the welfare of
the Company and its Subsidiaries and promoting an identity of interest between
stockholders and these employees, directors and consultants.
	 
	 	 	 	So that the appropriate incentive can be provided, the Plan provides for granting
Incentive Stock Options, Nonqualified Stock Options, Restricted Stock Awards, and
other Stock-based Awards, or any combination of the foregoing.

	2.	 	Definitions

	 	 	 	The following definitions shall be applicable throughout the Plan.

	 	(a)	 	“Award” means, individually or collectively,
any Incentive Stock Option, Nonqualified Stock Option, Restricted Stock
Award, or other Stock-based award.
	 
	 	(b)	 	“Board” means the Board of Directors of
MedAssets, Inc.
	 
	 	(c)	 	“Cause” means the Company or a Subsidiary
having cause to terminate a Participant’s employment or service under any
existing employment, consulting or any other agreement between the
Participant and the Company or a Subsidiary. In the absence of any such an
employment, consulting or other agreement, a Participant shall be deemed to
have been terminated for Cause if the Company determines that his
termination of employment with the Company or a Subsidiary is on account of
(A) incompetence, fraud, personal dishonesty, embezzlement, defalcation or
acts of gross negligence or gross misconduct on the part of Participant in
the course of his employment or services, (B) a conflict of interest with
or material breach of Participant’s fiduciary duty of loyalty to the
Company or a Subsidiary, (C) a Participant’s engagement in conduct that is
materially injurious to the Company or a Subsidiary, (D) a Participant’s
conviction by a court of competent jurisdiction of, or pleading “guilty” or
“no contest” to, (x) a felony, or (y) any other criminal charge (other than
minor traffic violations) which could reasonably be

 

 

	 	 	 	expected to have a material adverse impact on Company’s or a Subsidiary’s
reputation and standing in the community; (E) public or consistent
drunkenness by a Participant or his illegal use of narcotics which is, or
could reasonably be expected to become, materially injurious to the
reputation or business of the Company or a Subsidiary or which impairs, or
could reasonably be expected to impair, the performance of a Participant’s
duties to the Company or a Subsidiary; or (F) willful failure by a
Participant to follow the lawful directions of a superior officer or the
Board, representing disloyalty to the goals of the Company or a Subsidiary.
	 
	 	(d)	 	“Code” means the Internal Revenue Code of 1986,
as amended. Reference in the Plan to any section of the Code shall be
deemed to include any amendments or successor provisions to such section
and any regulations under such section.
	 
	 	(e)	 	“Committee” means the Compensation Committee of
the Board or such other committee of at least two Board members as the
Board may appoint to administer the Plan.
	 
	 	(f)	 	“Common Stock” means the common stock par value
$0.01 per share, of MedAssets, Inc.
	 
	 	(g)	 	“Company” means MedAssets, Inc.
	 
	 	(h)	 	“Date of Grant” means the date on which the
granting of an Award is approved by the Board or the Committee as the case
may be.
	 
	 	(i)	 	“Disability”, with respect to any particular
Participant, means disability as defined in such Participant’s employment,
consulting or other relevant agreement with the Company or a Subsidiary or,
in the absence of any such agreement, disability as defined in the
long-term disability plan of the Company or a Subsidiary, as may be
applicable to the Participant in question, or, in the absence of such a
plan, the complete and permanent inability by reason of illness or accident
to perform the duties of the occupation at which a Participant was employed
or served when such disability commenced or, if the Participant was retired
when such disability commenced, the inability to engage in any substantial
gainful activity, in either case as determined by the Company based upon
medical evidence acceptable to it.
	 
	 	(j)	 	“Disinterested Person” means a person who is
(i) a ”non-employee director” within the meaning of Rule 16b-3 under the
Exchange Act, or any successor rule or regulation and (ii) an “outside
director” within the meaning of Section 162(m) of the Code;
provided, however, that clause (ii) shall apply only with
respect to grants of Awards with respect to which the Company’s tax
deduction could be limited by Section 162(m) of the Code if such clause did
not apply.

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	 	(k)	 	“Eligible Person” means any (i) person
regularly employed by the Company or a Subsidiary; provided,
however, that no such employee covered by a collective bargaining
agreement shall be an Eligible Person unless and to the extent that such
eligibility is set forth in such collective bargaining agreement or in an
agreement or instrument relating thereto; (ii) director of the Company or a
Subsidiary; (iii) member of the Senior Advisory Board or any similar
advisory board established by the Company; or (iv) consultant to the
Company or a Subsidiary.
	 
	 	(l)	 	“Exchange Act” means the Securities Exchange
Act of 1934.
	 
	 	(m)	 	“Fair Market Value” on a given date means (i)
if the Stock is listed on a national securities exchange, the closing price
on the primary exchange with which the Stock is listed and traded on the
date prior to such date, or, if there is no such sale on that date, then on
the last preceding date on which such a sale was reported; (ii) if the
Stock is not listed on any national securities exchange but is quoted in
the NASDAQ National Market System on a last sale basis, the closing price
reported on the date prior to such date, or, if there is no such sale on
that date, then on the last preceding date on which a sale was reported;
(iii) if the Stock is not listed on a national securities exchange nor
quoted in the NASDAQ National Market System on a last sale basis, the
amount determined by the Committee to be the fair market value based upon a
good faith attempt to value the Stock accurately and computed in accordance
with applicable regulations of the Internal Revenue Service; or (iv)
notwithstanding clauses (i) — (iii) above, with respect to Awards granted
as of the consummation of the IPO, the price at which Stock is initially
offered to the public in the IPO.
	 
	 	(n)	 	“Incentive Stock Option” means an Option
granted by the Committee to a Participant under the Plan which is
designated by the Committee as an Incentive Stock Option pursuant to
Section 422 of the Code.
	 
	 	(o)	 	“IPO” means the initial underwritten offering
of Common Stock to the public through an effective registration statement.
	 
	 	(p)	 	“Nonqualified Stock Option” means an Option
granted under the Plan which is not designated as an Incentive Stock
Option.
	 
	 	(q)	 	“Normal Termination” means termination of
employment or service with the Company and all Subsidiaries:

	 	(i)	 	Upon retirement or other voluntary termination
(where the Participant is found to have terminated voluntarily in good
standing as determined by the Company) by the Participant of the Company
or a Subsidiary;
	 
	 	(ii)	 	On account of Disability;
	 
	 	(iii)	 	With the written approval of the Committee; or

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	 	(iv)	 	By the Company or a Subsidiary without Cause.

	 	(r)	 	“Option” means an Award granted under Section 7
of the Plan.
	 
	 	(s)	 	“Option Period” means the period described in
Section 7(d).
	 
	 	(t)	 	“Option Price” means the exercise price set for
an Option described in Section 7(b).
	 
	 	(u)	 	“Participant” means an Eligible Person who has
been selected to receive or has been granted an Award by the Committee.
	 
	 	(v)	 	“Plan” means the Company’s 2004 Long-Term
Incentive Plan.
	 
	 	(w)	 	“Restricted Period” means, with respect to any
share of Restricted Stock, the period of time determined by the Committee
during which such Award is subject to the restrictions set forth in Section
8(b).
	 
	 	(x)	 	“Restricted Stock” means an Award granted under
Section 8 of the Plan.
	 
	 	(y)	 	“Restricted Stock Agreement” means the
agreement between the Company and a Participant who has been granted
Restricted Stock pursuant to Section 8 which defines the rights and
obligations of the parties.
	 
	 	(z)	 	“Securities Act” means the Securities Act of
1933, as amended.
	 
	 	(aa)	 	“Senior Advisory Board” means the board of
leaders from the healthcare community that serves a number of critical
functions for the Company including providing insight into marketplace
issues and opportunities, communicating with key leaders in healthcare
related industries and providing advice on the design and marketing of new
programs and services.
	 
	 	(bb)	 	“Stock” means the Common Stock or such other
authorized shares of stock of the Company as from time to time may be
authorized for use under the Plan.
	 
	 	(cc)	 	“Stock Option Agreement” means the agreement
between the Company and a Participant who has been granted an Option
pursuant to Section 7 which defines the rights and obligations of the
parties.
	 
	 	(dd)	 	“Subsidiary” means any subsidiary of the
Company as defined in Section 424(f) of the Code.

	3.	 	Effective Date, Duration and Shareholder Approval

	 	 	 	The Plan is effective as of April 20, 2004, the date on which the Plan was
adopted by the Board and Stockholders of the Company.
	 
	 	 	 	The expiration date of the Plan, after which no Awards may be granted hereunder,
shall be December 31, 2009; provided, however, that the
administration of the Plan

4

 

	 	 	 	shall continue in effect until all matters relating to the payment of Awards
previously granted have been settled.

	4.	 	Administration

	 	 	 	The Committee shall administer the Plan. Unless otherwise determined by the
Board, each member of the Committee shall, at the time he takes any action with
respect to an Award under the Plan, be a Disinterested Person. The majority of
the members of the Committee shall constitute a quorum. The acts of a majority
of the members present at any meeting at which a quorum is present or acts
approved in writing by a majority of the Committee are valid and binding acts of
the Committee.
	 
	 	 	 	Subject to the provisions of the Plan, the Committee shall have the power,
authority and discretion to:

	 	(a)	 	Grant Awards;
	 
	 	(b)	 	Designate Participants;
	 
	 	(c)	 	Determine the type and extent of the Awards to be
granted to each Participant;
	 
	 	(d)	 	Determine the time or times when Awards will be granted
to Participants;
	 
	 	(e)	 	Determine the duration of each Option Period and
Restricted Period;
	 
	 	(f)	 	Determine the conditions to which the vesting of Awards
may be subject;
	 
	 	(g)	 	Prescribe the form of Stock Option Agreement,
Restricted Stock Agreement or other form or forms evidencing and governing
Awards;
	 
	 	(h)	 	Cause records to be established from time to time as
Awards are made to Participants;
	 
	 	(i)	 	Interpret the Plan and, subject to the provisions of
the Plan, to establish, adopt, or revise such rules and regulations and to
make all such determinations relating to the Plan as it may deem necessary
or advisable for the administration of the Plan. The Committee’s
interpretation of the Plan or any documents evidencing Awards granted
pursuant thereto and all decisions and determinations by the Committee with
respect to the Plan shall be final, binding, and conclusive on all parties
unless otherwise determined by the Board; and
	 
	 	(j)	 	Delegate to one or more Board members or to officers or
managers of the Company, such administrative duties under this Section 4 as
it may deem advisable; however, Company management may not be delegated the
authority to grant any Award.

	5.	 	Granting of Awards; Shares Subject to the Plan

5

 

	 	 	 	The Committee may, from time to time, grant Awards of Incentive Stock Options,
Nonqualified Stock Options, Restricted Stock and other Stock-based Awards to one
or more Participants; provided, however, that:

	 	(a)	 	Subject to Section 11, the aggregate number of shares
of Stock reserved and available for issuance pursuant to Awards under the
Plan is 11,285,000 which may be increased at any time and from time to time
by the Company in accordance with its charter documents, bylaws and
applicable law;
	 
	 	(b)	 	Except as set forth in Section 5(d), such shares shall
be deemed to have been used in payment of Awards only to the extent they
are actually delivered and not where the Fair Market Value equivalent of
such shares for a Stock-based Award is paid in cash. In the event any
Award shall be surrendered, terminate, expire, or be forfeited, the number
of shares of Stock no longer subject thereto shall thereupon be released
and shall thereafter be available for new Awards under the Plan;
	 
	 	(c)	 	Stock delivered by the Company in settlement of Awards
under the Plan may be authorized and unissued Stock or Stock held in the
treasury of the Company or may be purchased on the open market or by
private purchase; and
	 
	 	(d)	 	Following the date that the exemption from the
application of Section 162(m) of the Code described in Section 14 (or any
other exemption having similar effect) ceases to apply to Awards, no
Participant may receive Options or stock appreciation rights under the Plan
with respect to more than 500,000 shares of Stock in any one year. For
this purpose, such shares shall be deemed to have been used in payment of
Awards whether they are actually delivered or where the Fair Market Value
equivalent of such shares for a stock appreciation right is paid in cash.

	6.	 	Eligibility

	 	 	 	Participation shall be limited to Eligible Persons who have received written
notification from the Committee, or from a person designated by the Committee,
that they have been selected to participate in the Plan as a Participant.

	7.	 	Stock Option Awards

	 	 	 	The Committee shall have the authority to grant one or more Incentive Stock
Option or Nonqualified Stock Option Awards to any Eligible Person;
provided, however, that no Incentive Stock Option Awards shall be
granted to any Eligible Person who is not an employee of the Company or a
Subsidiary. Each Award so granted shall be subject to the following terms and
conditions (or to such other conditions as may be reflected in the applicable
Stock Option Agreement):

	 	(a)	 	Award of Stock Options. An Option Award shall be
evidenced by a Stock Option Agreement prepared by the Company which shall
set forth the terms of the grant. A Participant who has been granted an
Option Award shall execute

6

 

	 	 	 	and return to the Company a copy of the Stock Option Agreement. If a
Participant shall fail to execute and deliver to the Company the Stock
Option Agreement by any deadline contained within the Stock Option
Agreement, the Award shall be null and void. In such event , all rights of
the Participant to such Award shall terminate without further obligation on
the part of the Company. [Refer to Section 7(e)].
	 
	 	(b)	 	Option price. The exercise price (“Option Price”) per
share of Stock for each Option shall be set by the Committee at the time of
grant but shall not be less than (i) in the case of an Incentive Stock
Option, and subject to Section 7(e), the Fair Market Value of a share of
Stock at the Date of Grant, and (ii) in the case of a Non-Qualified Stock
Option, the par value per share of Stock; provided,
however, that following the date that the exemption from the
application of Section 162(m) of the Code described in Section 14 (or any
other exemption having similar effect) ceases to apply to Options, all
newly granted Options intended to qualify as “performance-based
compensation” under Section 162(m) of the Code shall have an Option Price
per share of Stock no less than the Fair Market Value of a share of Stock
at the Date of Grant.
	 
	 	(c)	 	Manner of exercise and form of payment. Options which
have become exercisable may be exercised by delivery of written notice of
exercise to the Company accompanied by payment of the Option Price. The
Option Price may be paid by check (which the Company in its discretion may
require be certified) and/or shares of Stock (valued at the Fair Market
Value at the time the Option is exercised) which have either (x) have been
held by the Participant for at least six-months, or (y) were acquired from
a person other than the Company, having in the aggregate a value equal to
the aggregate Option Price or, in the discretion of the Company, either (i)
in other property having a fair market value on the date of exercise equal
to the aggregate Option Price, or (ii) by delivering to the Company a copy
of irrevocable instructions to a stockbroker to deliver promptly to the
Company an amount of sale or loan proceeds sufficient to pay the aggregate
Option Price. Notwithstanding anything herein to the contrary, to the
extent that any form of payment would, in the opinion of the Company’s
counsel, result in a violation of Section 402 of the Sarbanes-Oxley Act of
2002, such form of payment shall not be available.
	 
	 	(d)	 	Option Period and Expiration. Options shall vest and
become exercisable in such manner and on such date or dates determined by
the Committee and set forth in the Stock Option Agreement, and shall expire
after such period, not to exceed ten years, as may be determined by the
Committee (the “Option Period”); provided, however, that
notwithstanding any vesting dates set by the Committee, the Committee may
in its sole discretion accelerate the exercisability of any Option, which
acceleration shall not affect the terms and conditions of any such Option
other than with respect to exercisability. Unless otherwise specifically
determined by the Committee, the vesting of any Option

7

 

	 	 	 	shall occur only while the Participant is employed or rendering services to
the Company or its Subsidiaries and all vesting shall cease upon a
Participant’s termination of employment or services for any reason. If an
Option is exercisable in installments, such installments or portions thereof
which become exercisable shall remain exercisable until the Option expires.
Unless otherwise stated in the applicable Stock Option Agreement, an Option
shall expire earlier than the end of the Option Period in the following
circumstances:

	 	(i)	 	If prior to the end of the Option Period, the
Participant shall undergo a Normal Termination, the Option shall expire
on the earlier of the last day of the Option Period or the date that is
three months after the date of such Normal Termination. In such event,
the Option shall remain exercisable by the Participant until its
expiration, but only to the extent the Option was vested and exercisable
at the time of such Normal Termination.
	 
	 	(ii)	 	If the Participant dies prior to the end of the
Option Period and while still in the employ or service of the Company or
a Subsidiary, or within three months following Normal Termination, the
Option shall expire on the earlier of the last day of the Option Period
or the date that is twelve months after the Participant’s death. In
such event, any Option shall remain exercisable by the person or persons
to whom the Participant’s rights under the Option pass by will or the
applicable laws of descent and distribution until its expiration, but
only to the extent any Option was vested and exercisable by the
Participant at the time of death.
	 
	 	(iii)	 	If the Participant ceases employment or service
with the Company and all Subsidiaries for reasons other than Normal
Termination or death, any Option shall expire immediately upon such
cessation of employment or service.

	 	(e)	 	Other Terms and Conditions.

	 	(i)	 	Each Option issued pursuant to this Section 7 (or
such part thereof that is exercisable at any time) shall be exercisable
for the full number of shares of Stock underlying the Option or for any
lesser number of shares.
	 
	 	(ii)	 	Each share of Stock purchased through the
exercise of an Option issued pursuant to this Section 7 shall be paid
for in full at the time of the exercise. Each Option shall cease to be
exercisable, as to any share of Stock, when the Participant purchases
the share or when an Option expires.
	 
	 	(iii)	 	Options issued pursuant to this Section 7 shall
not be transferable by the Participant except by will or the laws of
descent and distribution and shall be exercisable during the
Participant’s lifetime only by him; provided, however,
that the Committee may (but shall not be required to) at any time upon
the request of a Participant allow for the transfer of any Option,
subject to such conditions or limitations as it may establish.

8

 

	 	(iv)	 	Each Stock Option Agreement may contain a
provision that, upon demand by the Committee for such a representation,
the Participant shall deliver to the Company at the time of any exercise
of an Option issued pursuant to this Section 7 a written representation
that the shares to be acquired upon such exercise are to be acquired for
investment and not for resale or with a view to the distribution
thereof. Upon such demand, delivery of such representation prior to the
delivery of any shares issued upon exercise of an Option issued pursuant
to this Section 7 shall be a condition precedent to the right of the
Participant or such other person to purchase any shares. In the event
certificates for Stock are delivered under the Plan with respect to
which such investment representation has been obtained, the Committee
may cause a legend or legends to be placed on such certificates to make
appropriate reference to such representation and to restrict transfer in
the absence of compliance with applicable federal or state securities
laws.
	 
	 	(v)	 	Each Incentive Stock Option Agreement shall
contain a provision requiring the Participant to notify the Company in
writing immediately after the Participant makes a disqualifying
disposition of any Stock acquired pursuant to the exercise of such
Incentive Stock Option. A disqualifying disposition is any disposition
(including any sale) of such Stock before the later of (a) two years
after the Date of Grant of the Incentive Stock Option or (b) one year
after the date the Participant acquired the Stock by exercising the
Incentive Stock Option.

	 	(f)	 	Incentive Stock Option Grants to 10% Stockholders.
Notwithstanding anything to the contrary in this Section 7, if an Incentive
Stock Option is granted to a Participant who owns stock representing more
than 10% of the voting power of all classes of stock of the Company or of a
Subsidiary, the Option Period shall not exceed five years from the Date of
Grant of such Option and the Option Price shall be at least 110% of the
Fair Market Value (on the Date of Grant) of the Stock subject to the
Option.
	 
	 	(g)	 	$100,000 Per Year Limitation for Incentive Stock
Options. To the extent the aggregate Fair Market Value (determined as of
the Date of Grant) of Stock for which Incentive Stock Options are
exercisable for the first time by any Participant during any calendar year
(under all plans of the Company and its Subsidiaries) exceeds $100,000,
such excess Incentive Stock Options shall be treated as Nonqualified Stock
Options.
	 
	 	(h)	 	Voluntary Surrender. The Committee may permit the
voluntary surrender of all or any portion of any Nonqualified Stock Option
issued pursuant to this Section 7 to be conditioned upon the granting to
the Participant of a new Option for the same or a different number of shares as the Option surrendered or require such voluntary surrender as a
condition precedent to a grant of a new Option to such Participant. Such
new Option shall be exercisable at an Option Price, during an Option
Period, and in accordance with any other terms or conditions specified by
the Committee at the time the new Option is granted,

9

 

	 	 	 	all determined in accordance with the provisions of the Plan without regard
to the Option Price, Option Period, or any other terms and conditions of the
Nonqualified Stock Option surrendered.

	8.	 	Restricted Stock Awards

	 	 	 	The Committee shall have the authority to grant one or more Restricted Stock
Awards to any Eligible Person; establish terms, conditions and restrictions
applicable to such Restricted Stock including the Restricted Period, which may
differ with respect to each Participant; the time or times at which Restricted
Stock shall become vested and the number of shares to be covered by each Award
grant. Each Award so granted shall be subject to the following conditions, or
to such other conditions as may be reflected in the applicable Restricted Stock
Agreement.

	 	(a)	 	Award of Restricted Stock.

	 	(i)	 	An Award of Restricted Stock shall be evidenced
by a Restricted Stock Agreement prepared by the Company which shall set
forth the terms of the grant. A Participant who been granted a
Restricted Stock Award shall execute and return to the Company a copy of
the Restricted Stock Agreement. If a Participant shall fail to execute
and deliver to the Company the Restricted Stock Agreement by any
deadline contained within the Restricted Stock Agreement, the Award
shall be null and void. In such event, all rights of the Participant to
such Award shall terminate without further obligation on the part of the
Company.
	 
	 	(ii)	 	Subject to the restrictions set forth in Section
8(b), the Participant shall generally have the rights and privileges of
a stockholder as to such Restricted Stock, including the right to vote
such Restricted Stock. At the discretion of the Committee, cash
dividends and stock dividends, if any, with respect to the Restricted
Stock may be either currently paid to the Participant or withheld by the
Company for the Participant’s account. Unless otherwise determined by
the Committee, no interest will accrue or be paid on the amount of any
cash dividend withheld. Unless otherwise determined by the Committee,
any cash dividend or stock dividend so withheld by the Committee shall
be subject to forfeiture to the same degree as the shares of Restricted
Stock to which they relate.

	 	(b)	 	Restrictions; Restricted Period.

	 	(i)	 	The shares of Restricted Stock granted to a
Participant shall be subject to forfeiture to the extent provided in
Section 8(c), and the Participant shall not be entitled to receive a
certificate evidencing ownership of such shares until the forfeiture
provisions have expired.
	 
	 	(ii)	 	The Restricted Period for Restricted Stock shall
commence on the Date of Grant and shall expire in accordance with the
schedule set forth in the Restricted Stock Agreement.

10

 

	 	(iii)	 	The Committee shall have the authority to remove
any or all of the restrictions on the Restricted Stock whenever it may
determine that such action is appropriate.

	 	(c)	 	Forfeiture Provisions. Unless otherwise set forth in
the Restricted Stock Agreement, in the event a Participant terminates
employment with the Company and all Subsidiaries during a Restricted
Period, that portion of the Award which has not vested (“Unvested Portion”)
shall be treated as follows:

	 	(i)	 	In the event of a voluntary resignation of a
Participant or discharge by the Company or a Subsidiary for Cause, the
Unvested Portion of the Award shall be completely forfeited.
	 
	 	(ii)	 	In the event of a Normal Termination (other than
voluntary resignation), the Unvested Portion of the Award shall be
prorated for service during the Restricted Period and the shares of
Restricted Stock which have not been forfeited shall be delivered to the
Participant as soon as practicable following termination.
	 
	 	(iii)	 	In the event of a Participant’s death, the
Unvested Portion of the Award shall be prorated for service during the
Restricted Period and the shares of Restricted Stock which have not been
forfeited shall be delivered to the Participant’s beneficiary as soon as
practicable.

	 	 	 	In the event of forfeiture, all rights of the Participant to the forfeited shares of Restricted Stock shall terminate without further obligation on the
part of the Company. The term “employment” as used herein shall include
service on the Company’s Board of Directors or Senior Advisory Board.

	 	(d)	 	Delivery of Stock Certificates. From time to time upon
the vesting of shares of Restricted Stock the Company shall deliver to the
Participant, or his beneficiary, without charge, certificate evidencing
such shares.

	9.	 	Other Stock-Based Awards

	 	 	 	The Committee may grant any other cash, stock or stock-related Awards to any
Eligible Person under this Plan that the Committee deems appropriate, including,
but not limited to, stock appreciation rights, limited stock appreciation
rights, phantom stock Awards, the bargain purchase of Stock and Stock bonuses.
Any such benefits and any related agreements shall contain such terms and
conditions as the Committee deems appropriate. Such Awards and agreements need
not be identical. With respect to any benefit under which shares of Stock are
or may in the future be issued for consideration other than prior services, the
amount of such consideration shall not be less than the amount (such as the par
value of such shares) required to be received by the Company in order to comply
with applicable state law.

	10.	 	General

11

 

	 	(a)	 	Additional Provisions of an Award. Awards under the
Plan also may be subject to such other provisions (whether or not
applicable to the benefit awarded to any other Participant) as the
Committee determines appropriate including, without limitation, provisions
to assist the Participant in financing the purchase of Stock upon the
exercise of Options (as may be permitted under the Sarbanes-Oxley Act of
2002 and other applicable law), provisions for the forfeiture of or
restrictions on resale or other disposition of shares of Stock acquired
under any Award, provisions giving the Company the right to repurchase shares of Stock acquired under any Award in the event the Participant
elects to dispose of such shares, and provisions to comply with Federal and
state securities laws and Federal and state tax withholding requirements.
Any such provisions shall be reflected in the applicable Award agreement.
	 
	 	(b)	 	Privileges of Stock Ownership. Except as otherwise
specifically provided in the Plan, no person shall be entitled to the
privileges of stock ownership in respect of shares of Stock which are
subject to Awards hereunder until such shares have been issued to that
person.
	 
	 	(c)	 	Government and Other Regulations. The obligation of
the Company to make payment of Awards in Stock or otherwise shall be
subject to all applicable laws, rules, and regulations, and to such
approvals by governmental agencies as may be required. Notwithstanding any
terms or conditions of any Award to the contrary, the Company shall be
under no obligation to offer to sell or to sell and shall be prohibited
from offering to sell or selling any shares of Stock pursuant to an Award
unless such shares have been properly registered for sale pursuant to the
Securities Act with the Securities and Exchange Commission or unless the
Company has received an opinion of counsel, satisfactory to the Company,
that such shares may be offered or sold without such registration pursuant
to an available exemption therefrom and the terms and conditions of such
exemption have been fully complied with. The Company shall be under no
obligation to register for sale under the Securities Act any of the shares
of Stock to be offered or sold under the Plan. If the shares of Stock
offered for sale or sold under the Plan are offered or sold pursuant to an
exemption from registration under the Securities Act, the Company may
restrict the transfer of such shares and may legend the Stock certificates
representing such shares in such manner as it deems advisable to ensure the
availability of any such exemption.
	 
	 	(d)	 	Tax Withholding. Notwithstanding any other provision
of the Plan, the Company or a Subsidiary, as appropriate, shall have the
right to deduct from all Awards cash and/or Stock, valued at Fair Market
Value on the date of payment, in an amount necessary to satisfy all
Federal, state or local taxes as required by law to be withheld with
respect to such Awards and, in the case of Awards paid in Stock, the
Participant or other person receiving such Stock may be required to pay to
the Company or a Subsidiary, as appropriate, prior to delivery of such
Stock, the amount of any such taxes which the Company or

12

 

	 	 	 	Subsidiary is required to withhold, if any, with respect to such Stock.
Subject in particular cases to the disapproval of the Committee, the Company
may accept shares of Stock of equivalent Fair Market Value in payment of
such withholding tax obligations if the Participant of the Award elects to
make payment in such manner.
	 
	 	(e)	 	Claim to Awards and Employment Rights. No individual
shall have any claim or right to be granted an Award under the Plan or,
having been selected for the grant of an Award, to be selected for a grant
of any other Award. Neither the Plan nor any action taken hereunder shall
be construed as giving any individual any right to be retained in the
employ or service of the Company or a Subsidiary.
	 
	 	(f)	 	Designation and Change of Beneficiary. Each
Participant may file with the Committee or its designee a written
designation of one or more persons as the beneficiary who shall be entitled
to receive the rights or amounts payable with respect to an Award due under
the Plan upon his death. A Participant may, from time to time, revoke or
change his beneficiary designation without the consent of any prior
beneficiary by filing a new designation with the Committee or its designee.
The last such designation received by the Committee or its designee shall
be controlling; provided, however, that no designation, or
change or revocation thereof, shall be effective unless received by the
Committee or its designee prior to the Participant’s death, and in no event
shall it be effective as of a date prior to such receipt. If no
beneficiary designation is filed by the Participant, the beneficiary shall
be deemed to be his or her spouse or, if the Participant is unmarried at
the time of death, his or her estate.
	 
	 	(g)	 	Payments to Persons Other Than Participants. If the
Committee shall find that any person to whom any amount is payable under
the Plan is unable to care for his affairs because of illness or accident,
or is a minor, or has died, then any payment due to such person or his
estate (unless a prior claim therefor has been made by a duly appointed
legal representative) may, if the Committee so directs the Company, be paid
to his spouse, child, relative, an institution maintaining or having
custody of such person, or any other person deemed by the Committee to be a
proper recipient on behalf of such person otherwise entitled to payment.
Any such payment shall be a complete discharge of the liability of the
Committee and the Company therefor.
	 
	 	(h)	 	No Liability of Committee Members. No member of the
Committee shall be personally liable by reason of any contract or other
instrument executed by such member or on his behalf in his capacity as a
member of the Committee nor for any mistake of judgment made in good faith,
and the Company shall indemnify and hold harmless each member of the
Committee and each other employee, officer or director of the Company to
whom any duty or power relating to the administration or interpretation of
the Plan may be allocated or delegated, against any cost or expense
(including counsel fees) or liability

13

 

	 	 	 	(including any sum paid in settlement of a claim) arising out of any act or
omission to act in connection with the Plan unless arising out of such
person’s own fraud or willful bad faith; provided, however,
that approval of the Board shall be required for the payment of any amount
in settlement of a claim against any such person. The foregoing right of
indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s
Articles of Incorporation or By-Laws, as a matter of law, or otherwise, or
any power that the Company may have to indemnify them or hold them harmless.
	 
	 	(i)	 	Governing law. The Plan shall be governed by and
construed in accordance with the internal laws of the State of Delaware
without regard to the principles of conflicts of law thereof.
	 
	 	(j)	 	Funding. No provision of the Plan shall require the
Company, for the purpose of satisfying any obligations under the Plan, to
purchase assets or place any assets in a trust or other entity to which
contributions are made or otherwise to segregate any assets, nor shall the
Company maintain separate bank accounts, books, records or other evidence
of the existence of a segregated or separately maintained or administered
fund for such purposes. Participants shall have no rights under the Plan
other than as unsecured general creditors of the Company, except that
insofar as they may have become entitled to payment of additional
compensation by performance of services, they shall have the same rights as
other employees under general law.
	 
	 	(k)	 	Nontransferability. A person’s rights and interest
under the Plan, including amounts payable, may not be sold, assigned,
donated, or transferred or otherwise disposed of, mortgaged, pledged or
encumbered except, in the event of a Participant’s death, to a designated
beneficiary to the extent permitted by the Plan, or in the absence of such
designation, by will or the laws of descent and distribution;
provided, however, the Committee may, in its sole
discretion, allow for transfer of Awards other than Incentive Stock Options
to other persons or entities, subject to such conditions or limitations as
it may establish.
	 
	 	(l)	 	Reliance on Reports. Each member of the Committee and
each member of the Board shall be fully justified in relying, acting or
failing to act, and shall not be liable for having so relied, acted or
failed to act in good faith, upon any report made by the independent public
accountant of the Company and its Subsidiaries and upon any other
information furnished in connection with the Plan by any person or persons
other than himself.
	 
	 	(m)	 	Relationship to Other Benefits. No payment under the
Plan shall be taken into account in determining any benefits under any
pension, retirement, profit sharing, group insurance or other benefit plan
of the Company or any Subsidiary except as otherwise specifically provided
in such other plan.

14

 

	 	(n)	 	Expenses. The expenses of administering the Plan shall
be borne by the Company and its Subsidiaries.
	 
	 	(o)	 	Pronouns. Masculine pronouns and other words of
masculine gender shall refer to both men and women.
	 
	 	(p)	 	Titles and Headings. The titles and headings of the
sections in the Plan are for convenience of reference only, and in the
event of any conflict, the text of the Plan, rather than such titles or
headings shall control.
	 
	 	(q)	 	Termination of Employment. For all purposes herein, a
person who transfers from employment or service with the Company to
employment or service with a Subsidiary or vice versa shall not be deemed
to have terminated employment or service with the Company or a Subsidiary.

	11.	 	Changes in Capital Structure

	 	 	 	Awards granted under the Plan and any agreements evidencing such Awards, the
maximum number of shares of Stock subject to all Awards under the Plan and the
maximum number of shares of Stock with respect to which any one person may be
granted Options or stock appreciation rights during any year may be subject to
adjustment or substitution, as determined by the Committee in its sole
discretion, as to the number, price or kind of a share of Stock or other
consideration subject to such Awards or as otherwise determined by the Committee
to be equitable (i) in the event of changes in the outstanding Stock or in the
capital structure of the Company by reason of stock dividends, stock splits,
reverse stock splits, recapitalizations, reorganizations, mergers,
consolidations, combinations, exchanges, or other relevant changes in
capitalization occurring after the Date of Grant of any such Award or (ii) in
the event of any change in applicable laws or any change in circumstances which
results in or would result in any substantial dilution or enlargement of the
rights granted to, or available for, Participants in the Plan, or (iii) for any
other reason which the Committee, in its sole discretion, determines otherwise
warrants equitable adjustment because it interferes with the intended operation
of the Plan. Any adjustment to Incentive Stock Options under this Section 11
shall take into account that adjustments which constitute a “modification”
within the meaning of Section 424(h)(3) of the Code may have an adverse tax
impact on such Incentive Stock Options and the Committee may, in its sole
discretion, provide for a different adjustment or no adjustment in order to
preserve the tax effects of Incentive Stock Options. Unless otherwise
determined by the Committee, in its sole discretion, any adjustments or
substitutions under this Section 11 shall be made in a manner which does not
adversely affect the exemption provided pursuant to Rule 16b-3 under the
Exchange Act. Further, following the date that the exemption from the
application of Section 162(m) of the Code described in Section 14 (or any other
exemption having similar effect) ceases to apply to Awards, with respect to
Awards intended to qualify as “performance-based compensation” under Section
162(m) of the Code, such adjustments or substitutions shall, unless otherwise
determined by the Committee

15

 

	 	 	 	in its sole discretion, be made only to the extent that the Committee determines
that such adjustments or substitutions may be made without a loss of
deductibility for such Awards under Section 162(m) of the Code. The Company
shall give each Participant notice of an adjustment hereunder and, upon notice,
such adjustment shall be conclusive and binding for all purposes.
	 
	 	 	 	Notwithstanding the above, in the event of (i) a merger or consolidation
involving the Company in which the Company is not the surviving corporation,
(ii) a merger or consolidation involving the Company in which the Company is the
surviving corporation but the holders of shares of Stock receive securities of
another corporation and/or other property, including cash, (iii) the sale of all
or substantially all of the assets of the Company, (iv) the sale of greater than
fifty percent (50%) of the securities of the Company entitled to vote in the
election of directors to the Board; or (v) the reorganization or liquidation of
the Company (a “Corporate Event”), in lieu of providing the adjustment
set forth in subsection above, the Committee may, in its discretion, provide
that all outstanding Awards shall terminate as of the consummation of such
Corporate Event, and (x) accelerate the exercisability of, or cause all vesting
restrictions to lapse on, all outstanding Awards to a date at least ten days
prior to the date of such Corporate Event and/or (y) provide that holders of
Awards will receive a payment in respect of cancellation of their Awards based
on the amount of the per share consideration being paid for the Stock in
connection with such Corporate Event, and in the case of Options or other Awards
with an exercise price or similar provision, less such applicable exercise
price, such payment to be made in cash, or, in the sole discretion of the
Committee, in such other consideration necessary for a holder of an Award to
receive property, cash or securities as such holder would have been entitled to
receive upon the occurrence of the transaction if the holder had been,
immediately prior to such transaction, the holder of the number of shares of
Stock covered by the Award less any applicable exercise price at such time. The
terms of this Section 11 may be varied by the Committee in any particular Award
agreement.

	12.	 	Nonexclusivity of the Plan

	 	 	 	Neither the adoption of this Plan by the Board nor the submission of this Plan
to the stockholder of the Company for approval shall be construed as creating
any limitations on the power of the Board to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options otherwise than under this Plan, and such arrangements
may be either applicable generally or only in specific cases.

	13.	 	Amendments and Termination

	 	 	 	The Board may at any time terminate the Plan. Subject to Section 11, with the
express written consent of an individual Participant, the Board or the Committee
may cancel or reduce or otherwise alter outstanding Awards if, in its judgment,
the tax, accounting, or other effects of the Plan or potential payouts
thereunder would

16

 

	 	 	 	not be in the best interest of the Company. The Board or the Committee may, at
any time, or from time to time, amend or suspend and, if suspended, reinstate,
the Plan in whole or in part; provided, however, that without
further stockholder approval neither the Board nor the Committee shall make any
amendment to the Plan which would materially increase the maximum number of shares of Stock which may be issued pursuant to Awards, except as provided in
Section 11, or, following the date upon which an IPO occurs, which would
otherwise violate the shareholder approval requirements of the national
securities exchange on which the Stock is listed or Nasdaq, as applicable.

	14.	 	Effect of Section 162(m) of the Code

	 	 	 	The Plan, and all Awards issued thereunder, are intended to be exempt from the
application of Section 162(m) of the Code, which restricts under certain
circumstances the Federal income tax deduction for compensation paid by a public
company to named executives in excess of $1 million per year. As of the date of
the adoption of the Plan, the Company is not a “publicly held corporation”
within the meaning of Treasury Regulation Section 1.162-27(a) and thus is not
subject to the limitations imposed by Section 162(m). In the event that the
Company becomes publicly held in the future, the Plan, and all Awards issued
thereunder, are intended to be exempt from the application of Section 162(m) by
virtue of Treasury Regulation Section 1.162-27(f) which generally exempts from
the application of Section 162(m) of the Code compensation paid pursuant to a
plan that existed before a company becomes publicly held. Under such Treasury
Regulation, this exemption is available to the Plan for the duration of the
period that lasts until the earlier of (i) the expiration or material
modification of the Plan, (ii) the exhaustion of the maximum number of shares of
Stock available for Awards under the Plan, as set forth in Section 5(a), or
(iii) the first meeting of Company shareholders at which directors are to be
elected that occurs after the close of the third calendar year following the
calendar year in which the IPO occurs. To the extent that the Committee
determines as of the Date of Grant of an Award that (i) the Award is intended to
comply with Section 162(m) of the Code and (ii) the exemption described above is
no longer available with respect to such Award, such Award shall not be
effective until any stockholder approval required under Section 162(m) of the
Code has been obtained.

*                      *                      *

	 	 	As adopted by the Board of Directors of MedAssets, Inc. as of May ___, 2004.

	 	 	 	 	 	 	 
	 

	 	By:
	 	Jonathan H. Glenn	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief Legal and Administrative Officer	 	 
	 

	 	 	 	 	 	 

17

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