Document:

EX-10.1

 

Exhibit 10.1

TAX SHARING AGREEMENT

     This Tax Sharing Agreement (the “Agreement”), dated as of [___], 2005, is made by and
between WebMD Corporation, a Delaware corporation (“WebMD”), and WebMD Health Corp., a
Delaware corporation (“Health”).

     WHEREAS, WebMD is the common parent corporation of an affiliated group of corporations (within
the meaning of Section 1504(a) of the Internal Revenue Code of 1986, as amended (the
“Code”));

     WHEREAS, Health and the Health Domestic Subsidiaries (as defined below) are members of the
affiliated group of which WebMD is the common parent corporation;

     WHEREAS, Health is making an initial public offering (the “Offering”) of its stock as
contemplated by the Form S-1 filed with the Securities and Exchange Commission on May 12, 2005, as
amended;

     WHEREAS, the Offering will not cause Health and the Health Domestic Subsidiaries to cease to
be members of WebMD’s consolidated group for federal income tax purposes;

     WHEREAS, WebMD, Health and the Health Domestic Subsidiaries will continue to file consolidated
federal income tax returns as required by Section 1501 of the Code (“Consolidated Federal Tax
Returns”) and various members of the WebMD Group (as defined below) will continue to file
consolidated, combined or unitary income tax returns in some states, municipalities and non-U.S.
jurisdictions (“State, Local or Foreign Tax Returns”); and

     WHEREAS, WebMD, Health, the Health Domestic Subsidiaries and other members of the WebMD Group
desire to agree upon a method for determining the financial consequences to each party resulting
from the filing of a consolidated, combined or unitary income tax return; and

     NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained, the
parties hereby agree as follows:

	1.	 	DEFINITIONS.

     (a) For purposes of this Agreement, the terms set forth below shall have the following
meanings.

          (i) “Alternative Minimum Tax” shall mean the tax imposed on corporations by Section 55
of the Code.

 

 

          (ii) “Consolidated Federal Tax Liability” shall mean, with respect to any taxable
year, the Regular Tax and the Alternative Minimum Tax actually paid by the WebMD Group with respect
to such taxable year (without taking into account any carry-backs of tax attributes from later
taxable years).

          (iii) “Federal Tax Liability” of the Health Subgroup shall mean, with respect to any
taxable year, an amount equal to the Consolidated Federal Tax Liability multiplied by a fraction,
the numerator of which is the Health Subgroup’s Separate Return Tax Liability, and the demoninator
is the sum of A) the Health Subgroup’s Separate Return Tax Liability and B) the WebMD Subgroup’s
Separate Return Tax Liability.

          (iv) “Health Domestic Subsidiary” shall mean any Health Subsidiary that would be
eligible, from time to time, to join with Health in the filing of a Consolidated Federal Tax
Return, with Health as the common parent corporation, if Health and such Health Subsidiary were not
members of the WebMd Group.

          (v) “Health Subgroup” shall be comprised of Health and the Health Subsidiaries.

          (vi) “Health Subsidiary” shall mean any corporation (as determined for tax purposes)
that is controlled, directly or indirectly, by Health. For this purpose, “control” shall mean
ownership of 50% or more of the stock or other equity interests in such corporations in terms of
voting power or equity value.

          (vii) “Health Tax Package” means all information requested by WebMD, in a format
determined by WebMD, in connection with a Consolidated Federal Tax Return of the WebMD Group or a
State, Local or Foreign Tax Return that includes any member of the WebMD SubGroup and any member of
the Health SubGroup. The Health Tax Package shall be prepared on a basis consistent with the past
practices of the WebMD Group, or any relevant group of corporations with respect to any
consolidated, combined or unitary State, Local or Foreign Tax Return.

          (viii) “Regular Tax” shall mean the tax imposed on corporations by Section 11 of the
Code.

          (ix) “Separate Return Tax Liability” for the WebMD Subgroup or Health Subgroup shall
mean the liability for Regular Tax and Alternative Minimum Tax for such taxable year, and any
interest, penalties, and other additions to such taxes for such taxable year, computed as if the
WebMD Subgroup or Health Subgroup, as the case may be, were not part of the WebMD Group for such
taxable year, but rather were a separate affiliated group of corporations filing a Consolidated
Federal Tax Return pursuant to Section 1501 of the Code. Such computation shall be made (A)
without regard to the income, deductions (including net operating loss and capital loss deductions)
and credits in any year of any member of the WebMD Group which is not a member of the relevant
Subgroup, (B) with regard to net operating loss and capital loss carry-forwards from earlier years
(but not carry-backs from later years except to the extent permitted by Section 2(g)) of the
members of the relevant Subgroup, (C) with regard to the minimum tax credits of the relevant
Subgroup, (D) as though the highest rate of tax specified

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in Section 11(b) of the Code were the only Regular Tax rate applicable to the relevant
Subgroup and (E) consistent with the past practices of the WebMD Group; provided,
however, that such computation can depart from the past practices of the WebMD Group in the
event of a change in applicable Tax law or if WebMD is advised by its accountants or counsel that
adherence to past practices would have an adverse effect on the WebMD Group. Transactions between
the Health Subgroup and the WebMD Subgroup that are deferred under the Treasury regulations
promulgated pursuant to Section 1502 of the Code shall also be deferred for purposes of this
Agreement.

          (x) “Subgroup” shall mean the Health Subgroup or the WebMD Subgroup.

          (xi) “WebMD Group” shall mean WebMD, Health, the Health Domestic Subsidiaries and any
other corporation (as determined for tax purposes) that is controlled, directly or indirectly, by
WebMD. For this purpose, “control” shall mean ownership of 50% or more of the stock or other
equity interests in such corporation in terms of voting power or equity value.

          (xii) “WebMD Subgroup” shall be comprised of all members of the WebMD Group other than
the members of the Health Subgroup.

     (b) For all purposes of this Agreement, unless the context otherwise requires, the definition
of terms not defined herein shall be determined by reference to applicable law.

	2.	 	FEDERAL INCOME TAXES.

     (a) References. All references in this Section 2 to taxes or matters related to taxes
are references to federal income taxes and related federal income tax matters.

     (b) Tax Sharing. With respect to any taxable year (or portion thereof, if applicable)
of the Health Subgroup, Health shall pay to WebMD an amount equal to the Health Subgroup’s Federal
Tax Liability.

     (c) Estimated Payments. Not later than fifteen days prior to each date on which an
estimated federal income tax installment is due (a “Tax Payment Date”), WebMD shall
determine, and notify Health of, (i) the amount of the applicable required installment of the
required annual payment of the WebMD Group under Section 6655(d) of the Code and (ii) the amount of
such required installment calculated by reference to the estimated Federal Tax Liability of the
Health Subgroup (such amount, the “Health Subgroup Estimated Payment”). Health shall then
pay to WebMD, on or before the date which is three business days prior to such Tax Payment Date,
the Health Subgroup Estimated Payment. The Health Subgroup Estimated Payment shall be computed in
accordance with the past practices of the WebMD Group except in the event of a change in applicable
Tax law, or if WebMD is advised by its accountants or counsel that adherence to past practices
would have an adverse effect on the WebMD Group.

     (d) Payment of Taxes at Year-End.

          (i) WebMD shall determine, and notify Health of, the Health Subgroup Payment within sixty days
following the end of the taxable year for which such payment is to be

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made. On or before the date which is three business days prior to the last date prescribed by
law for payment of the Consolidated Federal Tax Liability of the WebMD Group for such year, Health
shall pay to WebMD an amount equal to the excess, if any, of the Health Subgroup’s Federal Tax
Liability over the total Health Subgroup Estimated Payments made by Health with respect to such
taxable year. A similar rule shall apply to the extent the amount of the Health Subgroup’s Federal
Tax Liability is adjusted at or prior to the time at which the Consolidated Federal Tax Return for
such year is filed.

          (ii) If the aggregate amount of the Health Subgroup Estimated Payments for a given taxable
year is greater than the Health Subgroup’s Federal Tax Liability, WebMD shall promptly remit such
excess amount to Health. A similar rule shall apply to the extent the amount of the Health
Subgroup’s Federal Tax Liability is adjusted at or prior to the time at which the Consolidated
Federal Tax Return for such year is filed.

          (iii) With respect to any Consolidated Federal Tax Return of the WebMD Group, (A) WebMD shall
not reimburse Health for the tax savings attributable to the utilization of any net operating
losses or other tax attributes of the Health Subgroup to offset federal incomes taxes of the WebMD
Subgroup and (B) Health shall not reimburse WebMD for the tax savings attributable to the
utilization of any net operating losses or other tax attributes of WebMD or any other member of the
WebMD Subgroup to offset federal incomes taxes of the Health Subgroup.

     (e) Alternative Minimum Tax. Notwithstanding anything to the contrary set forth
herein, Health shall only be required to make a payment to WebMD with respect to the Health
Subgroup’s liability for Alternative Minimum Tax (computed as a Separate Return Tax Liability) for
any taxable year if the WebMD Group has an actual Consolidated Federal Tax Liability in excess of
the Separate Return Tax Liability of the WebMD Subgroup for such taxable year.

     (f) Treatment of Adjustments. If any adjustment (including an adjustment resulting in
a refund of tax) is made after the filing of a Consolidated Federal Tax Return of the WebMD Group
in which income or loss of the Health Subgroup is included, then upon the earlier of the date on
which such adjustment is agreed to by WebMD or becomes final and nonappealable as a matter of law,
Health shall pay to WebMD, or WebMD shall pay to Health, as the case may be, the difference between
all payments actually made by Health under Sections 2(b)-2(e) with respect to the taxable year
covered by such Consolidated Federal Tax Return and all payments that would have been made by
Health under Sections 2(b)-2(e) after taking into account the applicable adjustment, together with
any penalties and interest actually paid or received.

     (g) Treatment of Refunds. If a net operating loss is generated by the Health Subgroup
or any member thereof during any period in which it is not a member of the WebMD Group, Health
and/or the relevant Health Subsidiary shall elect to relinquish any carry-back period with respect
to the WebMD Group to the fullest extent permitted by applicable law. If a net operating loss, net
capital loss, business credit or other tax attribute generated by the Health Subgroup (or any
member thereof) during any period in which it is not a member of the WebMD Group is carried back to
a Consolidated Federal Tax Return of the WebMD Group, and a tax refund or credit is obtained or
otherwise realized, such refund or credit shall be the property of WebMD and, if received by any
member of the Health Subgroup, shall be promptly paid over to

4

 

WebMD. Any tax refund or credit relating to the carry-back of a net operating loss, net
capital loss, business credit or other tax attribute of the Health Subgroup (or any member thereof)
from a period during which it is a member of the WebMD Group shall be properly allocated between
the WebMD Subgroup and the Health Subgroup in accordance with Section 2.

     (h) Preparation of Returns. So long as the WebMD Group elects to file Consolidated
Federal Tax Returns as permitted by Section 1501 of the Code, WebMD shall prepare and file such
Consolidated Federal Tax Returns and any other returns, documents or statements required to be
filed with the Internal Revenue Service (the “IRS”) with respect to the determination of
the Consolidated Federal Tax Liability of the WebMD Group. Each member of the Health Subgroup
appoints WebMD as its agent (as long as such corporation is a member of the WebMD Group) for
purposes of filing such Consolidated Federal Tax Returns, making any election or application or
taking any action in connection therewith on behalf of the members of the WebMD Group. Each member
of the Health Subgroup consents to the filing of such Consolidated Federal Tax Returns and the
making of such elections and applications and agrees to take, or the taking of, any action
(including the execution of any documents) necessary to permit such filings, elections or
applications to be made.

     (i) Audits and Proceedings. WebMD shall have sole control of any audits or other
proceedings conducted by the IRS or any judicial proceeding, with respect to the Consolidated
Federal Tax Liabilities of the WebMD Group. WebMD shall give Health notice of, and shall consult
with Health in good faith with respect to, any issues relating to items of income, gain, loss,
deduction, credit or other tax attribute of any member of the Health Subgroup (any such items,
“Health Subgroup Return Items”). Health may, at its sole expense, participate in such
audits or proceedings solely with respect to Health Subgroup Return Items to the extent that WebMD,
in its sole discretion, shall deem appropriate. For the avoidance of doubt, with respect to an
audit or proceeding conducted by the IRS, WebMD shall have the right, in its sole discretion, to
pay any disputed taxes and sue for a refund in the forum of its choice. The terms of settlement of
any issues relating to such proceeding shall be in the sole discretion of WebMD, and each member of
the Health Subgroup hereby appoints WebMD as its agent for the purpose of proposing and concluding
any such settlement.

     (j) Cooperation. Health and each Health Subsidiary shall cooperate in the filing of
any Consolidated Federal Tax Returns for the WebMD Group by maintaining such books and records and
providing such information as may be necessary or useful in the filing of such Consolidated Federal
Tax Returns and executing any documents and taking any actions which WebMD or any member of the
WebMD Group may reasonably request in connection therewith. WebMD and each member of the WebMD
Group will provide one another with such information concerning such returns and the application of
this Agreement as WebMD or such member may reasonably request. Without limiting the generality of
the foregoing, Health shall deliver to WebMD the Health Tax Package within thirty days after
request by WebMD. Each of the WebMD Subgroup and Health Subgroup shall preserve all records
relating to taxes for which the other Subgroup may be liable hereunder until the expiration of the
applicable statute of limitations, and shall make such records available to the other Subgroup upon
such other Subgroup’s prior reasonable request. To the extent that WebMD prepares and files any
tax return of Health or any other member of the Health Subgroup that does not include any member of
the WebMD Subgroup (a “Health Separate Return”), Health and the Health Subsidiaries shall

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provide cooperation consistent with this Section 2(j) including, without limitation, the
delivery of a Health Tax Package relating to the Health Separate Return.

     (k) Payment of Tax; Indemnification. WebMD shall pay or discharge, or cause to be
paid or discharged, the Consolidated Federal Tax Liability of the WebMD Group for each taxable year
of the WebMD Group. With respect to each taxable year of the WebMD Group, (i) WebMD shall defend,
indemnify and hold harmless Health from and against the difference between the Consolidated Federal
Tax Liability of the WebMD Group and the Health Subgroup’s Federal Tax Liability, and (ii) Health
shall defend, indemnify and hold harmless WebMD against the Health Subgroup’s Federal Tax
Liability; provided, however, that Health shall indemnify and hold harmless WebMD
against any liability resulting from any information included in the Health Tax Package that is not
correct and complete in all material respects or the failure by Health to timely furnish WebMD with
the Health Tax Package (or any material part thereof). Except as provided in this Agreement, (i)
WebMD shall be responsible for, and shall indemnify and hold harmless Health against, any taxes of
any member of the WebMD Subgroup, and (ii) Health shall be responsible for, and shall indemnify and
hold harmless WebMD against, any taxes of any member of the Health Subgroup.

3.   STATE, LOCAL AND FOREIGN TAXES. If, for any taxable period, any tax based on or measured by
gross or net income or gross receipts or any franchise, capital, net worth or other similar tax
imposed by any state, local or foreign government (collectively, “State, Local or Foreign
Taxes”) is determined on a consolidated, combined or unitary basis by considering all or part
of the income, losses, properties, payrolls, sales or other attributes of a Health Subsidiary with
those of WebMD or any other member of the WebMD Subgroup (regardless of whether a State, Local or
Foreign Tax Return is filed on a consolidated, combined or unitary basis), Health shall make
payments to WebMD in satisfaction of such State, Local or Foreign Tax, and WebMD shall make
payments to Health with respect to such State, Local or Foreign Tax, according to the same general
principles described above in Sections 2(b) through 2(f). Each of Health and WebMD also shall be
subject to the tax refund or credit provisions of Section 2(g), tax return preparation and filing
provisions of Section 2(h), the tax audit provisions of Section 2(i), the tax cooperation
provisions of Section 2(j) and the indemnification provisions of Section 2(k) with respect to such
State, Local or Foreign Tax in the same manner as if the State, Local or Foreign Tax was a
Consolidated Federal Tax Liability (subject to such adjustments, as reasonably determined by WedMD,
to give effect to differences between applicable State, Local or Foreign Tax law and federal income
tax law).

	4.	 	TERM AND OTHER MATTERS.

     (a) Survival. The term of this Agreement shall commence as of the date hereof, for
the taxable year including the date hereof for which a Consolidated Federal Tax Return for the
WebMD Group is filed. Subject to Section 4(b) below, this Agreement shall terminate with respect
to any Health Subsidiary as of the end of the date on which such Health Subsidiary ceases to be a
member of the WebMD Group and shall terminate as to all Health Subsidiaries in the event the Health
Subgroup ceases to be part of the WebMD Group as of the end of the date of such termination;
provided, however, that all rights and obligations arising hereunder with respect
to a taxable period ended at or prior to any cessation or termination shall survive until the
expiration of the statute of limitations for such taxable period.

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     (b) WebMD Distribution of Health Stock. Neither WebMD nor Health shall knowingly take
or fail to take (or permit any member of its respective Subgroup to take or fail to take) any
action that could reasonably be expected to preclude WebMD’s ability to undertake (as determined in
its sole discretion) a distribution of all or a portion of WebMD’s Health shares to the
shareholders of WebMD in a transaction intended to qualify as a distribution under Section 355 of
the Code (a “Health Stock Distribution”). In the event WebMD decides to undertake (as
determined in its sole discretion) a Health Stock Distribution, WebMD and Health acknowledge and
agree that, prior to the consummation of such Health Stock Distribution, they shall execute a new
tax sharing agreement setting forth the respective rights, responsibilities and obligations of the
parties with respect to such Health Stock Distribution and any other tax matters (including tax
liabilities) of the WebMD Group for taxable years prior to and including the taxable year in which
such Health Stock Distribution is effected. For the avoidance of doubt, such new tax sharing
agreement may contain provisions that substantively differ from those herein, and shall include (i)
customary covenants designed to ensure that neither WebMD nor Health knowingly takes or fails to
take (or permits any of its affiliates to take or fail to take) any action that could reasonably be
expected to preclude the qualification of the Health Stock Distribution under Section 355 of the
Code, (ii) an allocation of tax liability between WebMD and Health in the event of a determination
(within the meaning of Section 1313 of the Code) that the Health Stock Distribution did not qualify
under Section 355 of the Code and (iii) reasonable or customary tax indemnity (and related)
provisions relating to past tax liabilities and attributes of the Health Subgroup.

5.   DISPUTE RESOLUTION. In the event that any dispute arises under this Agreement, WebMD and Health
agree to negotiate in good faith to resolve such dispute prior to submitting such dispute to a
nationally recognized independent accounting firm, mutually acceptable to both WebMD and Health
(the “Independent Accounting Firm”). Either WebMD or Health may at any time deliver a
notice to the other party requesting referral of a dispute to a senior executive of WebMD and a
senior executive of Health. Following receipt of such notice each of WebMD and Health shall
designate one of its senior executives to negotiate in good faith to resolve such dispute within 10
days (or such longer period of time as such officers may agree to in writing). If at the end of
such 10-day (or longer if properly extended) period the designated officers have not fully resolved
the dispute to their mutual satisfaction, either party may thereafter submit such dispute to the
Independent Accounting Firm. The Independent Accounting Firm shall issue its determination within
thirty days of submission of a dispute. Absent manifest error, the decision of the Independent
Accounting Firm shall be final and binding on the parties. The fees and expenses of the
Independent Accounting Firm shall be shared equally by WebMD and Health.

6.   SUCCESSORS. This Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and permitted assigns. This Agreement may not be assigned by a party
by operation of law or otherwise without the express written consent of WebMD, in the case of
assignment by a member of the Health Subgroup, or Health, in the case of assignment by a member of
the WebMD Subgroup (which consent may be granted or withheld by WebMD or Health, as the case may
be, in its sole discretion). For the avoidance of doubt, this agreement shall be binding on and
inure to the benefit of any successor, by merger, acquisition of assets or otherwise, to any of the
parties hereto (including but not limited to any successor of WebMD or any member of the WebMD
Group succeeding to the tax attributes of such party under Section 381 of the Code), to the same
extent as if such successor had been an

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original party hereto. If any corporation (other than any member of the WebMD Group as of the date
hereof) becomes a member of the WebMD Group after the date hereof, then WebMD, if such corporation
is a member of the WebMD Subgroup, or Health, if such corporation is a member of the Health
Subgroup, shall cause such corporation to sign a joinder agreement and become bound by the terms
hereof.

7.   SUCCESSOR PROVISIONS. Any reference herein to any provisions of the Code or Treasury
regulations shall be deemed to include any amendments or successor provisions thereto.

8.   AUTHORIZATION, ETC. Each of the parties hereto hereby represents and warrants that it has the
power and authority to execute, deliver and perform this Agreement, that this Agreement has been
duly authorized by all necessary corporate action on the part of such party, that this Agreement
constitutes a legal, valid and binding obligation of such party and that the execution, delivery
and performance of this Agreement by such party does not contravene or conflict with any provision
of law or of its charter or bylaws or any agreement, instrument or order binding on such party.

9.   SECTION CAPTIONS. Section captions used in this Agreement are for convenience and reference
only and shall not affect the construction of this Agreement.

10.  GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO LAWS AND PRINCIPLES RELATING TO CONFLICTS OF LAW.

11.  COUNTERPARTS. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same Agreement.

12.  WAIVERS AND AMENDMENTS. This Agreement shall not be waived, amended or otherwise modified
except in writing, duly executed by all of the parties hereto.

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     IN WITNESS WHEREOF, each of the parties hereto has caused this Tax Sharing Agreement to be
executed by a duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	WEBMD CORPORATION	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	[	 	]	 	 
	 	 	Title:	 	[	 	]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	WEBMD HEALTH CORP.

WEBMD, INC.

BABYDATA.COM, INC.

BOCA SUBSIDIARY CORP.

DEMAND MANAGEMENT, INC.

ENDEAVOR TECHNOLOGIES, INC.

HEALTH DECISIONS, INC.

HEALTHEON/WEBMD CABLE CORPORATION

HEALTHEON/WEBMD INTERNET CORPORATION

HEALTHSHARE TECHNOLOGY, INC.

HW JAPAN, INC.

MEDICINENET, INC.

MEDSCAPE PORTALS, INC.

MMM ACQUISITION COMPANY

ONHEALTH NETWORK COMPANY

OW CORP.

PHYSICIANS TELEPHONE DIRECTORY, INC.

RXLIST, INC.

TELEMEDICS, INC.

THE ORNISH HEALTH PROGRAM, INC.

WEBMD DOMAIN CORP.

WELLMED, INC.
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	[	 	]	 	 
	 	 	Title:	 	[	 	]	 	 

9EX-10.2

 

Exhibit 10.2

SERVICES AGREEMENT

          This SERVICES AGREEMENT (the “Agreement”) is entered into as of the [ ] day of [ ],
2005 between WebMD Corporation, a Delaware corporation (“Parent”), and WebMD Health Corp., a
Delaware corporation (the “Company”).

          WHEREAS, Parent and the Company currently contemplate that the Company will make an initial
public offering (“IPO”) of shares of the Company Class A Common Stock; and

          WHEREAS, the Company, as a wholly-owned subsidiary of Parent, has previously received certain
administrative and support services from Parent and its affiliates.

          NOW, THEREFORE, in consideration of the premises and the agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows:

ARTICLE I

SERVICES

          SECTION 1.1 Services. Subject to the terms and conditions of this Agreement, Parent,
acting through its and/or its affiliates’ respective employees, agents, contractors or independent
third parties, agrees to provide or cause to be provided to the Company and its subsidiaries the
services set forth in Exhibit A hereto (including any additional services provided pursuant to
Section 1.3, all of such services collectively referred to herein as the “Services”). At all times
during the performance of the Services, all persons performing such Services (including agents,
temporary employees, independent third parties and consultants) shall be construed as being
independent from the Company and such persons shall not be considered or deemed to be an employee
of the Company nor entitled to any employee benefits of the Company solely as a result of Services
provided pursuant to this Agreement. The Company acknowledges and agrees that, except as may be
expressly set forth herein as a Service (including an additional Service to be provided pursuant to
Section 1.3 below), Parent shall not be obligated to provide, or cause to be provided, any service
or goods to the Company.

          SECTION 1.2 Service Coordinators. Each party will nominate a representative to act as
the primary contact with respect to the provision of the Services as contemplated by this Agreement
(the “Service Coordinators”). The Service Coordinators shall be the persons designated by Parent
and the Company by written notice to the other party hereto from time to time. Unless Parent and
the Company otherwise agree, Parent and the Company agree that all notices and communications
relating to this Agreement other than those day to day communications and billings relating to
the actual provision of the Services shall be directed to the Service Coordinators in
accordance with Section 9.2 hereof.

          SECTION 1.3 Additional Services. From the date hereof until 12 months following the
closing date (the “IPO Closing Date”) of the IPO (the “Extension Period”) but in

 

 

any event subject
to any limitations set forth in the Exhibits hereto, the Company may request additional Services
from Parent by providing written notice. Upon the mutual written agreement as to the nature, cost,
duration and scope of such additional Services, Parent and the Company shall supplement in writing
the Exhibits hereto to include such additional Services. These additional Services shall not
extend past the end of the Extension Period.

          SECTION 1.4 Third Party Services. Parent shall have the right to hire third party
subcontractors to provide all or part of any Service hereunder; provided, that, in the event such
subcontracting is inconsistent with past practices and the practice applied by Parent generally
from time to time within its own organization, Parent shall obtain the prior written consent of the
Company, which consent shall not be unreasonably withheld.

          SECTION 1.5 Standard of Performance; Limitation of Liability. The Services to be
provided hereunder shall be performed with the same general degree of care as when performed within
Parent. In the event Parent or its affiliates fail to provide, or cause to be provided, the
Services in accordance herewith, the sole and exclusive remedy of the Company shall be to, at the
Company’s sole discretion, either (i) have the Service reperformed, or (ii) not pay for such
Service, or if payment has already been made, receive a refund of the payment made for such
defective service for the preceding 12 months, except for Healthcare Benefits for which the Company
shall receive a refund of the payment made for such defective service; provided that in the event
Parent defaults in the manner described in Section 6.1(ii), the Company shall have the further
rights set forth in Section 6.1 and Article VII.

Except as expressly set forth in this Section 1.5, no representations or warranties of any kind,
implied or expressed, are made by Parent or its affiliates with respect to the services under this
Agreement and all such representations or warranties are hereby waived and disclaimed. Except as
provided in Article VII, the Company hereby expressly waives any right the Company may otherwise
have for any losses, to enforce specific performance or to pursue any other remedy available in
contract, at law or in equity in the event of any non-performance, inadequate performance, faulty
performance or other failure or breach by Parent or its affiliates under or relating to this
Agreement, notwithstanding the negligence (whether sole, joint or concurrent or active or passive)
or gross negligence of Parent or its affiliates or any other person involved in the provision of
services and whether damages are asserted in contract or tort, under federal, state or non U.S.
laws or other statute or otherwise.

          SECTION 1.6 Conflict with Laws.
Notwithstanding any other provision hereof, Parent shall not be required to provide a Service
to the extent the provision thereof would violate or contravene an applicable law. To the extent
that the provision of any such Service would violate an applicable law, the parties agree to work
together in good faith to provide such Service in a manner which would not violate any Law.

ARTICLE II

SERVICE CHARGES

          SECTION 2.1 Compensation. Each Service will be provided at the price indicated in the
Exhibit A hereto.

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ARTICLE III

PAYMENT

          SECTION 3.1 Payment. Charges for Services shall be invoiced quarterly by Parent or,
at the option of Parent, the Parent affiliate providing the Service unless otherwise set forth in
Exhibit A hereto. The Company shall make the corresponding payment no later than 30 calendar days
after receipt of the invoice. Each invoice shall be directed to the Company Service Coordinator or
such other person designated in writing from time to time by such Service Coordinator. The invoice
shall set forth in reasonable detail for the period covered by such invoice: (i) the Services
rendered, (ii) the amounts due, and (iii) such additional information as the Company may reasonably
request at least 30 days in advance of the billings for a particular Service. In the event there
is any dispute with respect to an invoice, the Company shall make the payment for all non-disputed
portions in accordance herewith.

ARTICLE IV

TERM

          SECTION 4.1 Term. The term of this Agreement shall commence upon the IPO Closing Date
and shall continue in force for five (5) years or until the termination of all Services unless
renewed by agreement of both parties.

ARTICLE V

DISCONTINUATION OF SERVICES

          SECTION 5.1 Discontinuation of Services. The Company may, elect to discontinue any
individual Service from time to time upon 60 days’ written notice or such shorter period as may be
agreed by both parties. Parent may discontinue any Service, in whole or in part, if Parent ceases
to provide such Service for itself upon 180 days’ written notice to the Company.

ARTICLE VI

DEFAULT

          SECTION 6.1 Termination for Default. In the event (i) of a failure of the Company to
pay for Services in accordance with the terms of this Agreement, or (ii) of a failure of Parent to
perform, or cause to be performed, the Services in accordance with the terms of this Agreement in
any material respect, then in either case the non-defaulting party shall have the right, at its
sole discretion, to terminate this Agreement if the defaulting party has (A) failed to cure the
default within 30 days of receipt of the written notice of default or, (B) if such default is not
reasonably susceptible to cure within a 30 day period, taken action within 30 days of receipt of
the written notice of default reasonably designed to cure such default as soon as is reasonably
practicable. The Company’s right to terminate this Agreement set forth above and the rights set
forth in Section 1.5 shall constitute the Company’s sole and exclusive rights and remedies for a
breach by Parent hereunder (including without limitation any breach caused by an affiliate of
Parent or other third party providing a Service hereunder).

3

 

ARTICLE VII

INDEMNIFICATION

          SECTION 7.1 Personal Injury.

     (a) Parent shall assume all liability for and shall release, defend, indemnify and hold
the Company, its affiliates and their respective employees, officers, directors and agents
(all as “Company Indemnified Parties”) free and harmless from and against all losses in
connection herewith in respect of injury to or death or sickness of any employee, agent or
representative of Parent, its affiliates or their contractors or subcontractors of any tier,
howsoever arising and whether or not caused by the negligence (whether sole, joint or
concurrent or active or passive) or gross negligence of the Company Indemnified Parties,
except to the extent such loss is caused by the willful misconduct of a Company Indemnified
Party.

     (b) The Company shall assume all liability for and shall release, defend, indemnify and
hold Parent, its affiliates and their respective employees, officers, directors and agents
(all as “Parent Indemnified Parties”) free and harmless from and against all losses in
connection herewith in respect of injury to or death or sickness of any employee, agent or
representative of the Company, its affiliates or their contractors or subcontractors of any
tier, howsoever arising and whether or not caused by the negligence (whether sole, joint or
concurrent or active or passive) or gross negligence of the Parent Indemnified Parties,
except to the extent such loss is caused by the willful misconduct of a Parent Indemnified
Party.

          SECTION 7.2 Property Damage.

     (a) Parent shall assume all liability for and shall release, defend, indemnify and hold
the Company Indemnified Parties harmless from and against all losses in connection herewith
in respect of loss of or damage to property owned by Parent, its affiliates, their
contractors or subcontractors of any tier or their respective employees, agents or
representatives, howsoever arising and whether or not caused by the negligence (whether
sole, joint or concurrent or active or passive) or gross negligence of the Company
Indemnified Parties, except to the extent such loss is caused by the willful misconduct of a
Company Indemnified Party.

     (b) The Company shall assume all liability for and shall release, defend, indemnify and
hold the Parent Indemnified Parties harmless from and against all losses in connection
herewith in respect of loss of or damage to property owned by the Company, its affiliates,
their contractors or subcontractors of any tier or their respective employees, agents or
representatives, howsoever arising and whether or not caused by the negligence (whether
sole, joint or concurrent or active or passive) or gross negligence of the Parent
Indemnified Parties, except to the extent such loss is caused by the willful misconduct of a
Parent Indemnified Party.

          SECTION 7.3 Services Received. The Company hereby acknowledges and agrees that:

4

 

     (a) the Services to be provided hereunder are subject to and limited by the provisions
of Section 1.5 — Standard of Performance; Limitation of Liability, Section 6.1 — Termination
for Default and the other provisions hereof, including without limitation, the limitation of
remedies available to the Company which restricts available remedies resulting from a
Service not provided in accordance with the terms hereof to either non-payment or
reperformance of such defective Service and, in certain limited circumstances, the right to
terminate this Agreement; and

     (b) a material inducement to Parent’ agreement to provide the Services is the
limitation of liability set forth herein and the release and indemnity provided by the
Company.

          Accordingly, except with regard to the limited remedies and indemnities expressly set forth
herein, the Company shall assume all liability for and shall further release, defend, indemnify and
hold the other party, its affiliates and their respective employees, officers, directors and agents
(all as indemnified parties) free and harmless from and against all losses resulting from, arising
under or related to the services, howsoever arising and whether or not caused by the negligence or
gross negligence of Parent, its affiliates or any third party service provider.

ARTICLE VIII

FORCE MAJEURE

          SECTION 8.1 Performance Excused. Continued performance of a Service may be suspended immediately to the extent caused by any
event or condition beyond the reasonable control of the party suspending such performance including
acts of God, fire, labor or trade disturbance, war, civil commotion, compliance in good faith with
any Law, unavailability of materials or other event or condition whether similar or dissimilar to
the foregoing (a “Force Majeure Event”).

          SECTION 8.2 Notice. The party claiming suspension due to a Force Majeure Event will
give prompt notice to the other of the occurrence of the Force Majeure Event giving rise to the
suspension and of its nature and anticipated duration.

          SECTION 8.3 Cooperation. The parties shall cooperate with each other to find
alternative means and methods for the provision of the suspended Service.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.1 Construction Rules. The article and section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement. As used in this Agreement, unless otherwise provided to the
contrary, (i) all references to days or months shall be deemed references to calendar days or
months and (ii) any reference to a “Section,” “Article” or “Appendix” shall be deemed to refer to a
section or article of this Agreement or an appendix to this Agreement. The words “hereof,” “herein”
and “hereunder” and words of similar import referring to this Agreement refer to this Agreement as
a whole and not to any particular provision of this Agreement. Whenever the

5

 

words “include,”
“includes” or “including” are used in this Agreement, they shall be deemed to be followed by the
words “without limitation.” Unless otherwise specifically provided for herein, the term “or” shall
not be deemed to be exclusive.

          SECTION 9.2 Notices. All notices and other communications hereunder shall be in
writing and shall be deemed given upon (i) a transmitter’s confirmation of a receipt of a facsimile
transmission, (ii) confirmed delivery of a standard overnight courier or when delivered by hand or
(iii) the expiration of five business days after the date mailed by certified or registered mail
(return receipt requested), postage prepaid, to the parties at the following addresses (or at such
other addresses for a party as shall be specified by like notice):

     If to Parent, to:

Attention:

[          ]

Facsimile:

     If to the Company, to:

Attention:

[          ]

Facsimile: [                    ]

          SECTION 9.3 Assignment, Binding Effect. Neither this Agreement nor any of the rights,
benefits or obligations hereunder may be assigned or delegated by the Company or Parent (whether by
operation of law or otherwise) without the prior written consent of the other party; provided
however that the foregoing shall in no way restrict the performance of a Service by an affiliate of
Parent or a third party as otherwise allowed hereunder.

          SECTION 9.4 No Third Party Beneficiaries. Nothing in this Agreement, express or
implied, is intended to or shall confer upon any Person (other than the Company, Parent and any
Parent affiliate providing Services hereunder or their respective successors or permitted assigns)
any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this
Agreement, and no person (except as so specified) shall be deemed a third-party beneficiary under
or by reason of this Agreement.

          SECTION 9.5 Amendment. No amendments, additions to, alterations, modifications or
waivers of all or any part of this Agreement shall be of any effect, whether by course of dealing
or otherwise, unless explicitly set forth in a writing executed by both parties hereto. If the
provisions of this Agreement and the provisions of any purchase order or order acknowledgment
written in connection with this Agreement conflict, the provisions of this Agreement shall prevail.

6

 

          SECTION 9.6 Waiver. The waiver by any party hereto of a breach of any provision of
this Agreement shall not operate or be construed as a waiver of any subsequent breach. The failure
of any party to require performance of any provision of this Agreement shall not affect any
parties right to full performance thereof at any time thereafter.

          SECTION 9.7 Severability. If any provision of this Agreement or the application of
any such provision to any Person or circumstance shall be declared judicially to be invalid,
unenforceable or void, such decision shall not have the effect of invalidating or voiding the
remainder of this Agreement, it being the intent and agreement of the Company and Parent that this
Agreement shall be deemed amended by modifying such provision to the extent necessary to render it
valid, legal and
enforceable while preserving its intent or, if such modification is not possible, by
substituting therefor another provision that is legal and enforceable and that achieves the same
objective.

          SECTION 9.8 Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed to be an original, but all of which together shall constitute one
agreement binding on the Company and Parent.

          SECTION 9.9 Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of New York without giving effect to the conflicts of law
principles thereof.

          SECTION 9.10 Arbitration. (a) In an effort to resolve informally and amicably any
claim or controversy arising out of or related to this Agreement or the breach, termination,
enforcement, interpretation or validity thereof, each party shall notify the other of any
differences or dispute hereunder that requires resolution. Parent and the Company shall each
designate an executive officer to investigate, discuss and seek to settle the matter between them.
If the two are unable to settle the matter within 30 days after such notification, the matter shall
be submitted to an independent director of Parent who is not also a director or employee of the
Company and an independent director of the Company who is not also a director or employee of Parent
for consideration. If settlement cannot be reached through their efforts within an additional 30
days, or such longer time period as they shall agree upon, either party may initiate final and
binding arbitration, in accordance with Paragraph (b) of this Section 9.10 to resolve such matter,
which the parties agree are the sole and exclusive procedures for any such dispute. All offers,
promises, conduct and statements, whether oral or written, made in the course of the settlement
discussions contemplated by this Paragraph (a) by any of the parties, their agents, employees,
experts and attorneys are confidential, privileged and inadmissible for any purpose, including
impeachment, in any arbitration or other proceeding involving the parties, provided that evidence
that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable
as a result of its use in the mediation.

     (b) Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the determination
of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in
New York, New York before one arbitrator. The arbitration shall be administered by JAMS pursuant
to its Comprehensive Arbitration Rules and Procedures. Judgment on the award may be entered in any
court having jurisdiction. This clause shall not preclude parties

7

 

from seeking provisional
remedies in aid of arbitration from a court of appropriate jurisdiction. The parties shall share
the costs of the arbitrator and other costs of the arbitration equally and each party shall be
responsible for its own costs and expenses relating to the arbitration, including for fees and
expenses of its attorneys and other professionals that it retains. The arbitrator will have no
authority to award any special, punitive, exemplary, consequential, incidental or indirect losses
or damages and no authority to award a party any amounts for the
costs and expenses of the arbitration or for fees and expenses of attorneys and other
professionals retained by a party.

        .

          SECTION 9.11 Relationship of Parties. This Agreement does not create a fiduciary
relationship, partnership, joint venture or relationship of trust or agency between the parties.

          SECTION 9.12 Further Assurances. From time to time, each party agrees to execute and
deliver such additional documents, and will provide such additional information and assistance as
any party may reasonably require to carry out the terms of this Agreement.

          SECTION 9.13 Regulations. All employees of Parent and its affiliates shall, when on
the property of the Company, conform to the rules and regulations of the Company concerning safety,
health and security which are made known to such employees in advance in writing.

          SECTION 9.14 Survival. The parties agree that Articles VIII and IX will survive the
termination of this Agreement and that any such termination shall not affect any obligation for the
payment of Services rendered prior to termination.

8

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of this [     ] day of
[     ], 2005.

	 	 	 	 	 
	 	WEBMD CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WEBMD HEALTH CORP.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

9

 

EXHIBIT A

	 	 	 	 	 	 	 	 	 
	Service provided	 	Calculation of costs	 	Calculation of Annual Cost	 	Notice required to	 	Termination Fee
	 	 	from 7/1/2005 -	 	for each year beginning	 	terminate	 	 
	 	 	12/31/2005	 	1/1/2006	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Accounts Payable Services

	 	$3 per Transaction
	 	N
	 	G
	 	H
	 
	 	 	 	 	 	 	 	 
	Payroll Services

	 	$43 per employee,

per fiscal quarter
	 	N
	 	G
	 	H
	 
	 	 	 
	Human
Resources

Administration Services
	 	$171 per employee,

per fiscal quarter	 	N	 	G	 	Fee payable
decreases 50% upon
the date the
Company moves to
its own Human
Resources
Administration
systems. 
Termination Fees-H
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Enterprise License Agreement

	 	K
	 	K
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	External Audit Services

	 	C
	 	C
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	D&O Insurance

	 	Effective from date

the Company

completes its

initial public

offering
	 	B
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Tax compliance and planning
services

	 	D
	 	M
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Financial Systems Services

	 	A
	 	E
	 	G
	 	I
	 
	 	 	 	 	 	 	 	 
	Corporate Systems Services

	 	A
	 	E
	 	G
	 	I
	 
	 	 	 	 	 	 	 	 
	General Accounting Services

	 	A
	 	E
	 	G
	 	H
	 
	 	 	 	 	 	 	 	 
	Integration Services

	 	A
	 	E
	 	G
	 	Nil

A-10

 

	 	 	 	 	 	 	 	 	 
	Service provided	 	Calculation of costs	 	Calculation of Annual Cost	 	Notice required to	 	Termination Fee
	 	 	from 7/1/2005 -	 	for each year beginning	 	terminate	 	 
	 	 	12/31/2005	 	1/1/2006	 	 	 	 
	Stock Administration Services

	 	A
	 	E
	 	G
	 	H
	 
	 	 	 	 	 	 	 	 
	Treasury Services

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Insurance [discrimination
claims?]

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Outsourced Internal Audit

Services

	 	C
	 	-
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Outside Counsel Services

	 	C
	 	-
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Legal Services

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Purchasing Services

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Facilities Planning Services

	 	D
	 	M
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Corporate Information

Technology Services

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Security Services

	 	A
	 	E
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	General Insurance Services

	 	L
	 	L
	 	G
	 	Nil
	 
	 	 	 	 	 	 	 	 
	Healthcare Benefits

	 	Per employee
pricing consistent
with the amounts
Parent charges each
of its other
subsidiaries,
including any
true-up amounts.
	 	Per employee
pricing consistent
with the amounts
Parent charges each
of its other
subsidiaries,
including any
true-up amounts.
	 	G
	 	Nil

A-11

 

Definitions:

“Transaction” means: an invoice or expense report processed, a check or wire transfer processed,
responses to accounts payable inquiries, and vendor maintenance.

Key:

A=

	 	 	 	 	 	 	 
	Parent’s total cost for providing service for Parent and its consolidated

	 	 
	 	x
	 	Number of Company employees as of 12/31/2004 .
	subsidiaries (“Parent Group”) excluding Porex Corporation from 1/1/04-
	 	 	 	 	 	Number of employees of Parent Group as of 12/31/2004
	12/31/04
	 	 	 	 	 	 

	 	 	 	 	 	 	 
	B=
	 	((Market cap of the Company x Minority % interest in the Company)                     .	 	 	 	x Total D&O Insurance
	 

	 	 	 	 	 	 
	 

	 	(Market cap of Parent Group) + (Market cap of the Company x Minority % interest in the Company)	 	 	 	 

C= Pass-through of actual costs for specific projects or matters

	 	 	 	 	 	 	 
	D=

	 	 	 	 
	 	 
	Parent total cost for providing service for Parent Group from 1/1/04-12/31/04

	 	 	 	x
	 	Number of Company employees as of 12/31/2004 .
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Number of employees of Parent Group as of 12/31/2004

	 	 	 	 	 	 	 
	E=
	 	Number of Company employees at immediately preceding year end
	 	 
	 	x  (Salary based cost adjustment x Charge in immediately preceding year)
	 

	 	 	 	 	 	 
	 

	 	Number of Company employees at 12/31/2004	 	 	 	 

	 	 	 	 	 
	F=

	 	 
	 	 
	Parent’s total cost for providing service for Parent and its consolidated

	 	x
	 	Number of Company employees as of 12/31 of immediately preceding year
	subsidiaries (“Parent Group”) excluding Porex Corporation for immediately preceding year
	 	 	 	Number of Parent Group employees as of 12/31 of immediately preceding year

G= 60 days prior written notice

H= $30,000

I= $30,000 total for cancellation of both Financial Systems Services and Corporate Systems Services

A-12

 

K= Pass-through of actual unit costs

	 	 	 	 	 	 	 
	L=
	 	 	 	 	 
	Parent total cost for providing service for Parent Group from 1/1/04-12/31/2004
	 	 	x	 	Fixed Assets on Company balance sheet at immediately preceding year end
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Fixed Assets on Company balance sheet at 12/31/2004

	 	 	 	 	 	 	 
	M=
	 	D x Number of Company employees at immediately preceding year end 	 	 	 	x   [Salary based cost adjustment] [CPI/ cost of living adjustment]
	 

	 	Number of Company employees at 12/31/2004	 	 	 	 

N= Rate per transaction in the immediately preceding year x Salary based cost adjustment

A-13

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