Document:

Fourth Amended and Restated Outsourcing and Operating Agreement

  
 Exhibit 10.1 
  
 FOURTH
AMENDED AND RESTATED OUTSOURCING AND OPERATING AGREEMENT* 
  
 dated
as of August 13, 2003 
  
 among 
  
 NOVATION, LLC, 
  
 VHA INC., 
  
 UNIVERSITY HEALTH SYSTEM CONSORTIUM, 
  
 HEALTHCARE PURCHASING PARTNERS INTERNATIONAL, LLC, 
  
 and 
  
 NEOFORMA, INC. 
  

  

	*	Confidential treatment requested: Certain portions of this agreement have been omitted pursuant to a request for confidential treatment and, where applicable, have been marked with
an asterisk to denote where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission. 

  

 TABLE OF CONTENTS 
  

	 	  	Page

		
	 1.      DEFINITIONS
	  	  2
		
	 2.      NOVATION OBLIGATIONS
	  	  9
		
	 2.1        Agency Relationship
	  	  9
	 2.2        Novation Duties
	  	  9
	 2.3        Certain Contracts
	  	10
	 2.4        Adjustment of Transaction Fees
	  	10
	 2.5        Novation Offerings and Procurement on Neoforma’s Behalf
	  	10
		
	 3.      NEOFORMA OBLIGATIONS
	  	11
		
	 3.1        Service
	  	11
	 3.2        Service Levels
	  	11
	 3.3        Cooperation with Novation
	  	11
	 3.4        Employee Incentives
	  	12
	 3.5        Quality Assurance Program
	  	12
	 3.6        Notice of Materially Adverse Facts
	  	12
	 3.7        Case Studies
	  	12
	 3.8        Supplier Sign-Up and Integration
	  	12
		
	 4.      THE EXCHANGE
	  	14
		
	 4.1        Maintenance of Exchange
	  	14
	 4.2        Consultation
	  	14
	 4.3        Provision of Non-Contract Product Information
	  	14
	 4.4        Provision of Contract Product Information
	  	14
	 4.5        Independent Users
	  	15
	 4.6        Multiple Memberships
	  	15
	 4.7        User Registration
	  	15
	 4.8        Delivery and Order Fulfillment
	  	16
	 4.9        Removal of Products from the Exchange
	  	16
	 4.10      Customized Exchanges
	  	16
	 4.11      Links
	  	16
	 4.12      Reasonable Assistance
	  	16
		
	 5.      NOVATION EXCHANGE AND HPPI EXCHANGE
	  	16
		
	 5.1        Development
	  	16
	 5.2        Hosting
	  	17
	 5.3        Delivery and Order Fulfillment
	  	17
	 5.4        Display of Material
	  	17
	 5.5        Reports and Meetings
	  	17
	 5.6        Retained Contracts
	  	18
	 5.7        Marketing.
	  	18
	 5.8        Neoforma Auction
	  	18

  

 i 

		
	 6.      EXCLUSIVITY AND RIGHT OF FIRST OFFER
	  	18
		
	 6.1        Novation, VHA, UHC and HPPI Exclusivity
	  	18
	 6.2        Neoforma Exclusivity
	  	19
	 6.3        Right of First Offer for Novation and Neoforma
	  	19
	 6.4        First Offer for Non-Exclusive Services
	  	20
		
	 7.      LICENSES AND OWNERSHIP
	  	21
		
	 7.1        Ownership of Marks
	  	21
	 7.2        Novation Marks
	  	21
	 7.3        Neoforma Marks
	  	21
	 7.4        VHA, UHC and HPPI Marks
	  	21
	 7.5        Ownership of Neoforma Materials and Novation Materials
	  	22
	 7.6        Neoforma Materials
	  	22
	 7.7        Novation Materials
	  	22
	 7.8        Development of Tools
	  	22
	 7.9        Access License
	  	23
		
	 8.      FEES AND TAXES
	  	23
		
	 8.1        Contract Product Transaction Fees
	  	23
	 8.2        Revenue Sharing
	  	23
	 8.3        Monthly Payment of Maximum Quarterly Shortfall Payments
	  	24
	 8.4        Reporting and Payment of Novation Exchange Transaction Fees and Revenue
Sharing
	  	24
	 8.5        *
	  	25
	 8.6        Taxes
	  	26
	 8.7        New Markets
	  	26
	 8.8        Product Returns
	  	26
	 8.9        Neoforma Plan and Neoforma Auction, and other non-GPO
exchanges
	  	26
	 8.10      Distribution or Licensing of Software and other Technology Solutions
	  	26
	 8.11      Other Expenses
	  	27
	 8.12      Amendments to Section 8
	  	27
		
	 9.      TERM AND TERMINATION
	  	27
		
	 9.1        Initial Term
	  	27
	 9.2        Renewal and Extension of Term
	  	27
	 9.3        Termination for Cause
	  	28
	 9.4        Termination for Insolvency Events
	  	28
	 9.5        Termination for Rejection in Bankruptcy
	  	28
	 9.6        Termination Upon Neoforma Change of Control
	  	29
	 9.7        Return of Materials
	  	29
	 9.8        Survival
	  	29
	 9.9        Termination Assistance Services
	  	29
	 9.10      Third Party Products
	  	31
		
	 10.    USER DATA
	  	32
		
	 10.1      Registration
	  	32

  

	*	Confidential treatment requested 

  

 ii 

	 10.2      Transaction Database
	  	32
	 10.3      Member Data
	  	32
	 10.4      Aggregated Member Data
	  	33
	 10.5      Transaction Database
	  	33
	 10.6      License Grant of Information to Novation
	  	33
	 10.7      No Other Licenses or Use
	  	33
	 10.8      Other Data
	  	34
	 10.9      Neoforma Information
	  	34
		
	 11.    SAFEGUARDING OF DATA; CONFIDENTIALITY
	  	34
		
	 11.1      Novation Data
	  	34
	 11.2      Confidentiality
	  	35
		
	 12.    REPRESENTATIONS AND WARRANTIES
	  	36
		
	 12.1      Representations by Neoforma
	  	36
	 12.2      Representations by Novation, VHA, UHC and HPPI
	  	37
	 12.3      Warranty Disclaimer
	  	39
		
	 13.    USE OF SUBCONTRACTORS
	  	39
		
	 13.1      Generally
	  	39
	 13.2      Novation’s Right to Revoke Approval
	  	39
	 13.3      Continuing Responsibility
	  	39
	 13.4      Confidential Information
	  	39
		
	 14.    INSURANCE
	  	40
		
	 14.1      Insurance
	  	40
	 14.2      Proof of Insurance
	  	40
		
	 15.    INDEMNITY
	  	40
		
	 15.1      Neoforma Indemnity
	  	40
	 15.2      Novation Indemnity
	  	41
	 15.3      Infringement Claims
	  	41
	 15.4      Indemnity Procedures
	  	42
		
	 16.    LIMITATION OF LIABILITY
	  	43
		
	 16.1      Limitations
	  	43
	 16.2      Exceptions
	  	43
	 16.3      Liquidated Damages
	  	43
		
	 17.    AUDIT RIGHTS
	  	44
		
	 17.1      General
	  	44
	 17.2      Frequency of Audits
	  	45
	 17.3      Auditors
	  	45
	 17.4      Record Retention
	  	45
	 17.5      Cooperation
	  	45
	 17.6      Overcharges
	  	45
		
	 18.    DISPUTE RESOLUTION
	  	46

  

 iii 

		
	 18.1      Resolution of Disputes
	  	46
	 18.2      Negotiations and Escalation
	  	46
	 18.3      Appointment of Arbitral Body
	  	46
	 18.4      Qualifications of Arbitrator
	  	46
	 18.5      Initiation of Arbitration and Procedures
	  	47
	 18.6      Procedures
	  	47
	 18.7      Governing Law; Jurisdiction
	  	47
	 18.8      Arbitration Award
	  	48
	 18.9      Cooperation of the Parties
	  	48
	 18.10    Costs
	  	48
	 18.11    Judgment on the Award; Enforcement
	  	48
	 18.12    Preservation of Equitable Relief; Third-Party Litigation
	  	48
	 18.13    Continued Performance
	  	49
		
	 19.    GUARANTY OF PERFORMANCE
	  	49
		
	 19.1      VHA and UHC Guarantees
	  	49
	 19.2      VHA and UHC Waivers
	  	49
	 19.3      Scope of Liability
	  	50
	 19.4      Continued Performance by Neoforma
	  	50
		
	 20.    GENERAL PROVISIONS
	  	51
		
	 20.1      No Waiver
	  	51
	 20.2      Entire Agreement
	  	51
	 20.3      Publicity
	  	51
	 20.4      Covenant of Good Faith
	  	51
	 20.5      Compliance with Laws and Regulations
	  	51
	 20.6      Assignment; Successors and Assigns
	  	52
	 20.7      Governing Law
	  	52
	 20.8      Notices
	  	52
	 20.9      No Agency
	  	53
	 20.10    Force Majeure
	  	53
	 20.11    Interest
	  	54
	 20.12    Program Management
	  	54
	 20.13    Severability
	  	54
	 20.14    Counterparts
	  	55
	 20.15    Headings
	  	55
	 20.16    Section 365(n) Matters
	  	55

  
 EXHIBITS: 
  

	 Exhibit A
	  	Marks
	 Exhibit B
	  	Current Marks Usage Guidelines for Novation
	 Exhibit C
	  	Current Marks Usage Guidelines for Neoforma
	 Exhibit D
	  	Current Marks Usage Guidelines for VHA, UHC and HPPI
	 Exhibit E
	  	Reports and Other Information Requirements
	 Exhibit F
	  	Program Management

  

 iv 

	 Exhibit G
	  	Minimum Fees
	 Exhibit I
	  	Target Fee Levels
	 Exhibit K
	  	Current Functionality Roadmap
	 Exhibit L
	  	Collaborative Marketing Agreement
	 Exhibit M
	  	Collaborative Development Process
	 Exhibit N
	  	Service Level Specifications

  

 v 

 FOURTH AMENDED AND RESTATED 
 OUTSOURCING AND OPERATING AGREEMENT 
  
 This Fourth Amended and Restated Outsourcing and Operating Agreement (“Agreement”) effective as of August 11, 2003 (the
“Effective Date”), by and among Neoforma, Inc., (formerly named Neoforma.com, Inc.) a Delaware corporation with offices at 3061 Zanker Road, San Jose, California 95134 (“Neoforma”), Novation, LLC, a
Delaware limited liability company with offices at 125 East John Carpenter Freeway, Irving, Texas 75062 (“Novation”), Healthcare Purchasing Partners International, LLC, a Delaware limited liability company with offices at 125
East John Carpenter Freeway, Irving, Texas 75062 (“HPPI”), VHA Inc., a Delaware corporation with offices at 220 East Las Colinas Boulevard, Irving, Texas 75039-5500 (“VHA”), and University Health
System Consortium, an Illinois corporation with offices at 2001 Spring Road, Suite 700, Oak Brook, Illinois 60523 (“UHC”). 
  
 RECITALS 
  
 WHEREAS, Neoforma is a provider of Internet (as defined in Section 1) e-commerce services to the healthcare industry facilitating the sale, rental
or lease of new and used equipment, products, supplies, services information and other content, and provides information regarding various healthcare facilities and equipment through its online offerings and programs; 
  
 WHEREAS, VHA and UHC are organizations whose patrons are hospitals and
healthcare providers, who view e-commerce as an essential part of their cooperative purchasing programs on behalf of their patrons for the future and who desire to more fully develop the services they render to their patrons through this Agreement;

  
 WHEREAS, VHA and UHC together own all the ownership
interests in Novation and HPPI; 
  
 WHEREAS, Novation is a
contracting agent that develops and delivers supply chain management agreements, programs and services on behalf of VHA and UHC and their patrons; 
  
 WHEREAS, HPPI is a GPO that serves healthcare organizations that are not members of VHA and UHC and other GPOs and which develops and delivers
supply-chain management programs and services to such healthcare organizations; 
  
 WHEREAS, the Parties wish to establish a long-term, global relationship to enable the Parties to achieve increased efficiency and cost savings through Internet-based technology and pursuant to which (i)
Neoforma will develop and manage the Novation Marketplace and HPPI Marketplace (as defined in Section 1), e-commerce web sites for the benefit of the members of VHA and UHC, the associated healthcare organizations of HPPI and for the benefit of
other users unaffiliated with VHA, UHC or HPPI, (ii) Novation will seek to secure the participation of healthcare equipment manufacturers and service suppliers in the Novation Marketplace and cooperate with Neoforma in its efforts to contract with
suppliers for additional services and functionality, and (iii) VHA and UHC will provide marketing support for the Novation 

  

 1 

 
Marketplace and HPPI Marketplace, guarantee Novation’s obligations to the extent provided under this Agreement and enter into the exclusivity provisions
hereunder; 
  
 WHEREAS, the Parties have previously entered
into an Outsourcing and Operating Agreement (the “Original Outsourcing and Operating Agreement”), dated as of March 30, 2000 (the “Original Effective Date”), and have also previously entered into an
amended and restated Outsourcing and Operating Agreement, dated as of May 24, 2000 (the “First Amended and Restated Outsourcing and Operating Agreement”), a second amended and restated Outsourcing and Operating Agreement,
dated as of January 1, 2001 (the “Second Amended and Restated Outsourcing Agreement”), and a first amendment to the Second Amended and Restated Outsourcing Agreement, dated as of July 1, 2001 (the “First
Amendment”), a third amended and restated Outsourcing and Operating Agreement, dated as of September 30, 2002 (the “Third Amended and Restated Outsourcing Agreement”), and each Party desires to amend and restate
the Third Amended and Restated Outsourcing and Operating as set forth herein; and 
  
 WHEREAS, in consideration for the services initially agreed to be provided by VHA and UHC pursuant to the Original Outsourcing and Operating Agreement and the First Amended and Restated Outsourcing and
Operating Agreement, Neoforma issued to VHA and UHC shares of, and warrants to purchase, common stock of Neoforma. 
  
 NOW, THEREFORE, for good and valuable consideration, the Parties agree as follows: 
  
 1. DEFINITIONS 
  
 As used in this Agreement, the following terms shall have the respective meanings set forth below. Other capitalized terms shall have the meanings set
forth elsewhere in this Agreement. 
  
 “Adjusted Gross
Transaction Value(s)” means, with regard to a confirmed purchase, rental or lease on the Novation Marketplace or HPPI Marketplace, the * which are related to the Product purchased, rented or leased. 
  
 “Affiliate(s)” means, with respect to a specified
person, any other person that, directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with such specified person. Neoforma, on the one hand, and Novation, VHA and/or UHC, on the other hand,
shall not be Affiliates. 
  
 “Aggregated Member
Data” means all or any of an aggregate of the Information relating to any two or more Members. 
  
 “API(s)” means language and messaging formats, in human and computer readable form, that define how programs interact with an
operating system, a database, with functions in other programs, with communication systems, or with hardware drivers. 
  

	*	Confidential treatment requested 

  

 2 

 “Blinded Aggregated Data” means aggregated data which does not contain
information sufficient to identify any individual Supplier, Member or User or any Member Data, that is derived from transactions of Users of a Customized Marketplace, at least * of which shall come from non-Member Users. 
  
 “Content” means any text, graphics, logos, button
icons, images, audio clips, HTML code, java programs and other material used or displayed in the Novation Marketplace, and Supply Chain Data. 
  
 “Contract Product(s)” means any Product that is part of the Novation Contract Portfolio and available on the Novation Marketplace
or the HPPI Marketplace. 
  
 “Customized
Marketplace(s)” means a Marketplace specifically for and accessible only to members of a particular GPO or its members, and includes, but is not limited to, the Novation Marketplace and the HPPI Marketplace. 
  
 “EDI Standards” means the standard format for
Electronic Data Interchange (EDI) generally accepted and used in North America, as may change from time to time. 
  
 “Expected Transaction Fees” means all amounts of Novation Marketplace Transaction Fees expected to be paid by a Supplier during
the period commencing on the applicable * or *, as the case may be, up to and including * of such Supplier. Such Expected Transaction Fees shall be calculated with respect to each Supplier by multiplying (i) the * sales, rentals and leases of * (as
evidenced by the most recent *) and * (as evidenced by reasonable supporting documentation provided to Neoforma by Novation) by * that were * prior to the applicable * or *, as the case may be, and that processed transactions with the applicable *
through the Novation Marketplace during the preceding *, by (ii) the applicable * for sales, rentals and leases of * and * as defined in the agreement between Neoforma and such Supplier. In order to calculate the * Expected Transaction Fees, the
resulting number is then multiplied by a fraction, the numerator of which is * for the first * days subsequent to the *, * for the second * days, * for the third * days, and * thereafter, and the denominator of which is *. By way of example, if (A)
as of a certain *, healthcare organizations (as described above) representing * in annual purchases of * and * from the applicable * in the preceding * were processing transactions through the Novation Marketplace, and (B) such * was obligated to
pay a Novation Marketplace Transaction Fee of * with respect to such transactions through the Novation Marketplace, then in the first * days following such * *, * would be multiplied by * and the resultant number of * would be multiplied by the
quotient of *, to calculate a daily Expected Transaction Fee of *. 
  
 “Functionality Roadmap” means each proposed plan for development and implementation of new and updated functionality specifications for the Novation Marketplace or HPPI Marketplace, as may be agreed and amended from
time to time by and between Novation and Neoforma in signed writings in accordance with Section 5.1. 
  

	*	Confidential treatment requested 

  

 3 

 “GAAP” means United States generally accepted accounting principles as in effect
at the time of the application thereof. 
  
 “GPO(s)” means any entity in the United States that meets the definition of a “Group Purchasing Organization” as set forth in 42 CFR Section 1001.952(j), and any entity outside the United States performing
a similar function. 
  
 “High-Volume
Supplier” means a Supplier whose sales of Products from the Novation Contract Portfolio (whether purchased through the Novation Marketplace or otherwise) are at least $10,000,000 annually as evidenced by the Novation SRIS reports during
the preceding 12-month period. 
  
 “HPPI
Marketplace” means a Customized Marketplace accessible only to HPPI Members. 
  
 “HPPIMember(s)” means, at any date, those organizations acting as purchasers, renters or lessees in their respective markets that are associates of HPPI and to which HPPI provides
procurement related services, cost management programs and other services. 
  
 “Information” means the information and data maintained by Neoforma in the Transaction Database, which shall include, at minimum, (i) any and all information and data collected, developed
and/or stored by Neoforma relating to Members and (ii) any and all information and data relating to use of or transactions on the Novation Marketplace by Members. For purposes of this Agreement, “Information” shall not include the
following: (i) information that is received from distributors of Products by Neoforma (directly or through its wholly owned subsidiary Neomedacq, Inc. (“HPIS”)), and which Neoforma is contractually precluded from making available to
Novation; (ii) any information that is collected by Neoforma through use of its materials management solution or data management solution; and (iii) information that is collected by Neoforma from any source to the extent the source of such
information contractually prohibits Neoforma from making such information available to Novation. Neoforma will continue to exercise its best efforts to procure such rights from the party providing the information for access by Novation.

  
 “Intellectual Property Rights” means
all copyrights, patents, trade names and trademarks (in each of the preceding cases, whether registered or not) and trade secrets and other intellectual property rights of a person. 
  
 “Integration” means the integration of the current system of a Supplier or Member, as applicable,
with the Novation Marketplace or HPPI Marketplace such that such Supplier or Member, as the case may be, may (i) conduct transactions through the Marketplace or send or receive Supply Chain Data regarding such transactions, (ii) solely in the case
of a Supplier that conducts transactions through a distributor integrated with the Marketplace whose data Neoforma is contractually permitted to share with other Users, access information regarding transactions, or (iii) solely in the case of a
Supplier that conducts transactions through a 

  

 4 

 
distributor which is not integrated with the Novation or HPPI Marketplace, publish Supplier’s product catalog data on the Novation or HPPI Marketplace.

  
 “Internet” means the public, global
network of computer networks and individual computers constantly connected using standardized communications protocols, specifically TCP/IP or any successor protocol thereof. 
  
 “Marketplace” means the Novation Marketplace, HPPI Marketplace, all Customized Marketplaces and all
other Neoforma web sites. 
  
 “Material(s)” means information on equipment, products, supplies or services, including, without limitation, product availability and pricing information, provided to Neoforma for display to Users of the Novation
Marketplace or HPPI Marketplace. 
  
 “Member(s)” means, at any date, those organizations that are (i) patrons or members of VHA or UHC, or are associated therewith, or (ii) HPPI Members, and in each case, that are listed in an electronic file supplied
to Neoforma and updated periodically by Novation. 
  
 “Member Data” means any and all Transaction Database information relating to a specific Member. 
  
 “Neoforma Auction” means Neoforma’s auction services offered on the Marketplace. 
  
 “Neoforma Change of Control” means the occurrence of
any of the following: 
  

	 	(a)	the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or
substantially all of the properties and assets of Neoforma and its subsidiaries taken as a whole to any “person” or “group” (as such terms are used in Section 13(d)(3) of the Securities and Exchange Act of 1934, as amended (the
“Exchange Act”)), other than Novation or any of its Affiliates; 

  

	 	(b)	the adoption by the Board of Directors of Neoforma of a plan relating to the liquidation or dissolution of Neoforma; 

  

	 	(c)	the consummation of any transaction or series of related transactions (including, without limitation, any merger or consolidation) the result of which is that any “person”
or “group” (as defined above), other than Novation or any of its Affiliates, becomes the “beneficial owner” (as such term is used in Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of more than 50% of the
capital stock of Neoforma, measured by voting power or economic interest rather than number of shares; 

  

	 	(d)	 the consummation of any transaction or series of related transactions (including, without limitation, any merger or consolidation) the result of which is that the

  

 5 

	 	 
beneficial owners (as defined above) of the capital stock of Neoforma immediately prior to such transaction or transactions cease to be the beneficial owners
of at least 50.1% of the capital stock, measured by voting power or economic interest rather than number of shares, of the surviving or resulting entity of such transaction or transactions; or 

  

	 	(e)	during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors of Neoforma (together with any new directors whose
election by the Board of Directors or whose nomination for election by the stockholders of Neoforma was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose
election or nomination for election was previously approved) cease to constitute a majority of the directors then in office. 

  
 “Neoforma Information” means information and data other than Information as defined herein. 
  
 “Neoforma Materials” means Materials provided by
Neoforma and displayed on and available to Users of a Marketplace but shall not include the Novation Materials. 
  
 “Non-Contract Product” means any Product available through a Customized Marketplace that is not part of the Novation Contract
Portfolio or any other GPO-specific contract portfolio. 
  
 “Novation Contract Portfolio” means a catalog of all Products and Novation Materials that will appear on the Novation Marketplace or the HPPI Marketplace, for which Novation has contracted, for the benefit of the
Members. 
  
 “Novation Competitor” means
any person that, at the time of determination, would reasonably be considered to be (i) a competitor of Novation or (ii) a competitor of any Member. 
  
 “Novation Marketplace” means a Customized Marketplace accessible only to members of VHA, UHC or HPPI, which may include Contract
and Non-Contract Products. 
  
 “Novation Marketplace
Transaction Fee(s)” means fees to be paid by Suppliers to Neoforma in respect of (i) transactions occurring “on the Novation Marketplace” or (ii) processing Supply Chain Data; excluding fees associated with Neoforma Auction.
For the purposes of this definition “on the Novation Marketplace” means the initiation or confirmation of a transaction is captured through the Novation Marketplace. 
  
 “Novation Materials” means Materials provided by Novation or by Novation Suppliers to Neoforma for
display to Users of a Customized Marketplace, including to Members on the Novation Marketplace. 
  

 6 

 “NovationSuppliers” means suppliers, manufacturers or distributors
that provide equipment, products, supplies, services, information and other content for sale, rental or lease through the Novation Marketplace and HPPI Marketplace under the Novation Contract Portfolio. 
  
 “Party” means each of Neoforma, Novation, HPPI, VHA
and UHC and any other person who becomes a signatory to this Agreement, unless the context requires otherwise. 
  
 “Patron(s)” means a person who is entitled to receive a patronage refund from VHA or UHC. 
  
 “Person” means a natural person, corporation,
partnership (limited or general), limited liability company, business trust or other entity. 
  
 “Product(s)” means equipment, products, supplies, services, information and other content provided by Suppliers and available for purchase, rental or lease by Users through a Marketplace.

  
 “Remote Order Entry” means the ability
of Users, including, without limitation, persons outside of central purchasing/materials management departments to create requisitions and to have such requisitions turned into valid orders in accordance with the protocol agreed to by the Novation
Marketplace and the User. 
  
 “Retained
Contract(s)” means those product or service contracts of VHA or UHC that have not been transferred to Novation and which the Members may have access to because they are Members in VHA or UHC. 
  
 “Service(s)” means the services to be provided
hereunder by Neoforma. 
  
 “Service
Level(s)” means the objective criteria establishing the level of Neoforma’s required performance of the Services under this Agreement. 
  
 “Shortfall Payment” has the meaning specified in Section 8.1.2 
  
 “Sign-up” (also “Signs-up” and “Signed-up”) means
those arrangements whereby a Party amends existing agreements with Suppliers or enters into a new contractual arrangement with a Supplier to permit that Supplier’s equipment, products, supplies, services, information and other content to be
displayed on the Novation Marketplace or the HPPI Marketplace. 
  
 “Supplier(s)” means suppliers, manufacturers or distributors that provide Products and Materials for display, sale, rental or lease, including, without limitation, High-Volume Suppliers pursuant to an agreement
allowing participation on a Customized Marketplace. 
  
 “Supplier Integration Deadline” means the later of: (i) * days following the date on which a Supplier is Signed-up; or (ii) the Integration date specified in the contract between the Supplier and Neoforma, as either
may be adjusted pursuant to Section 3.8.2. 
  

 7 
  

	*	Confidential treatment requested 

 “Supply Chain Data” means information for use by Members and Suppliers regarding
the purchase, rental or lease of a Product by a Member who has signed a Member participation agreement with Neoforma to participate in the Novation Marketplace or HPPI Marketplace, whether the purchase, rental or lease is conducted “on the
Marketplace” or “off the Marketplace”. For the purposes of this definition “off the Marketplace” means the initiation or confirmation of a transaction is not captured through a Marketplace, and “on the Marketplace”
means the initiation or confirmation of a transaction is captured through a Marketplace. 
  
 “Supply Chain Data Transaction Value(s)” means the *, relating to each purchase, rental or lease of a Product “off the Novation Marketplace or HPPI Marketplace”, but for which
Neoforma processes Supply Chain Data. For the purposes of this definition “off the Novation Marketplace or HPPI Marketplace” means the initiation or confirmation of a transaction that is not captured through the Novation Marketplace or
HPPI Marketplace. 
  
 “Supply Chain Management
Services” means (i) with respect to Novation, VHA and HPPI, operations and activities related to the evaluation, bidding, negotiation, contracting, administering, marketing, distribution, sale, acquisition or disposal of equipment,
products, supplies, services, information and other content by healthcare organizations from third parties and (ii) with respect to UHC only, operations and activities related to the evaluation, bidding, negotiation, contracting, administering,
marketing, distribution, sale, acquisition or disposal of equipment, products, supplies and services by healthcare organizations from third parties, and in the case of each of clause (i) and (ii), including operations and activities directly related
to Neoforma Auction. Notwithstanding the generality of the foregoing, and with respect to UHC only, Supply Chain Management Services do not include outsourcing, consulting, information technology products and services (unless related to equipment or
supplies), financial products and services, insurance products and services, education and networking and communication products and services. 
  
 “Target Fee Levels” has the meaning specified in Section 8.2.1 of this Agreement. 
  
 “Tool(s)” means a program, utility or user interface
that helps the user of the program, utility or user interface analyze or search for data. 
  
 “Transaction Data” means the data maintained by Neoforma on the Transaction Database. 
  
 “Transaction Database” means any and all means used to store Information. 
  
 “Transaction Fee(s)” means fees to be paid by each
Supplier pursuant to its agreement with Neoforma for participation on the Novation Marketplace or the HPPI Marketplace. 
  
 “User(s)” means all Members and other users of a Customized Marketplace, including, without limitation, participating healthcare
organizations, GPOs or other registered users that do not act as Suppliers. 
  

 8 
  

	*	Confidential treatment requested 

 2. NOVATION OBLIGATIONS 
  

	 	2.1	Agency Relationship. Neoforma hereby appoints Novation to act as Neoforma’s limited agent to Sign-up Suppliers for the Novation Marketplace and HPPI Marketplace, and
Novation accepts such appointment, for the principal purpose of facilitating e-commerce purchases by the patrons of VHA and UHC and by others. 

  

	 	2.2	Novation Duties. In connection with Novation’s appointment as agent under Section 2.1, Novation will perform the following obligations: 

  

	 	2.2.1	Within 90 days after the execution of this Agreement, Neoforma and Novation shall meet and use best efforts to agree upon certain commercially reasonable negotiating parameters for:
(i) securing, as the opportunity arises, certain data rights from Novation Suppliers for use by Neoforma in connection with services offered, (ii) certain service level requirements that Novation Suppliers must adhere to in connection with the
Novation Marketplace, (iii) the contractual requirements that Novation Suppliers provide Supply Chain Data to the Novation Marketplace and negotiate with Neoforma in good faith for the purchase of the display of Non-Contract Products on and the
establishment of connectivity to the Novation Marketplace. Novation shall adhere to the agreed upon parameters. Novation may exercise its sole and unfettered discretion with respect to the terms and conditions of its agreements with Novation
Suppliers, provided that such are not inconsistent with Novation’s obligations under this Agreement. 

  

	 	2.2.2	Neoforma and Novation shall meet no less frequently than on a quarterly basis (or at any time that either Neoforma or Novation reasonably requests such a meeting) to review the
then-current negotiating parameters regarding data rights, service level requirements and the other rights and obligations described in Section 2.2.1 and the then-current required rights described in Section 2.5.2.  

 

	 	2.2.3	Novation will provide to Neoforma promptly after the Sign-up of each Supplier agreement all information contained in such agreement that is necessary for Neoforma to fulfill its
obligations under Section 2.5. 

  

	 	2.2.4	Novation will manage the Supplier relationships in respect of each Novation Supplier, and will use diligent efforts to facilitate favorable commercial relationships between Neoforma
and Novation Suppliers. 

  

	 	2.2.5	Novation and Neoforma shall cooperate to increase the number of Novation Suppliers on the Novation Marketplace and HPPI Marketplace. 

  

 9 

	 	2.2.6	Novation will reasonably cooperate with Neoforma to resolve performance problems with respect to any Novation Supplier that it has Signed-up and who has become the subject of
numerous User complaints.  

  

	 	2.2.7	Subject to its obligations under Section 11.2, Novation will bring to Neoforma’s attention, reasonably promptly after learning thereof, any fact that would reasonably be likely
to materially adversely affect the Novation Marketplace or HPPI Marketplace, Neoforma or Users, including, without limitation, the institution of litigation against Novation or any Supplier. 

  

	 	2.2.9	In performing its duties under this Section 2, Novation shall not be required to initiate or carry on litigation. 

  

	 	2.3	Certain Contracts. For the avoidance of doubt, the Parties agree that the contracts constituting the Novation Contract Portfolio or the Retained Contracts, as now or
hereafter constituted, shall remain obligations of Novation, UHC or VHA, as the case may be, and shall not be transferred to, or assumed by, Neoforma in connection with this Agreement. 

  

	 	2.4	Adjustment of Transaction Fees. Novation shall meet with Neoforma no less frequently than on a quarterly basis (or at any time that either Neoforma or Novation reasonably
requests such a meeting) to review the Transaction Fees then in effect. At such meetings, Neoforma and Novation shall in good faith review whether the Transaction Fees then in effect are market competitive and, if not, shall adjust such Transaction
Fees so that they are market competitive. For the avoidance of doubt, the Parties agree that “market competitive” shall mean that (i) Suppliers are reasonably likely to agree to pay such fees at such time or (ii) such fees are competitive
with similar Transaction Fees paid by suppliers in similar e-commerce or related industries. Until Neoforma and Novation have agreed upon a change to the Transaction Fees, as the case may be, the then-existing fees shall remain in effect. 

  

	 	2.5	Novation Offerings and Procurement on Neoforma’s Behalf. 

  

	 	2.5.1	Marketplace Services and Functionality Offered by Novation to Suppliers. In conjunction with Novation’s appointment as a limited agent under Section 2.1 above, Novation
shall contract with Novation Suppliers to display through the Novation Marketplace: Novation Supplier’s Products contained in the Novation Contract Portfolio; and Novation Supplier’s contracts with Novation for the purchase of such
Products. 

  

	 	2.5.2	 Novation’s Procurement of Rights on Neoforma’s behalf. In conjunction with Novation’s performance as limited agent in accordance with Section
2.1 above, Novation shall, on Neoforma’s behalf, obtain the Novation Supplier’s agreement to the following terms, and Novation may not Sign-Up 

  

 10 

	 	 
any Supplier to participate on the Novation Marketplace without that Supplier’s agreement to such terms: 

  

	 	(a)	Novation owns and will continue to own the compilation or “look and feel” of all Content as it appears on Novation Marketplace (“Content Compilation”);

  

	 	(b)	any reproduction, transmission or display of the Content Compilation by any Novation Supplier or any third party is strictly prohibited; and 

  

	 	(c)(i)	the rights of Neoforma solely in connection with the Novation Marketplace to, on a non-exclusive, royalty-free and fully paid-up basis, use, copy, modify, display, perform and
create derivative works of Supplier’s Content solely for the purposes of digitizing, categorizing and formatting such information for placement on the Novation Marketplace, to create a reference database of Supplier Content, and to use such
database to reconcile, correct and/or supplement Member and Transaction Data to help ensure that such is accurate and up to date for so long as the Supplier participates on the Novation Marketplace. 

  
 3. NEOFORMA OBLIGATIONS 
  

	 	3.1	Service. Neoforma shall provide Services mutually agreed between Neoforma and Novation as set forth herein and in the Functionality Roadmap. Neoforma and Novation anticipate
that the Services will evolve and be modified or be enhanced over time to keep pace with technological advancements and improvements in e-commerce as specified in each Functionality Roadmap as agreed upon in accordance with the Collaborative
Development process set forth in Exhibit M. Once agreed upon, all modification to each Functionality Roadmap must be in writing and agreed to by the Parties in writing. 

  

	 	3.2	Service Levels. Neoforma shall provide such professional and technical personnel and other resources (including, without limitation, hardware, software, facilities, equipment
and other assets) as shall be required to perform the Services in accordance with service levels set forth in Exhibit N and as shall otherwise be mutually agreed upon by the Parties and referred to as the “Service Level
Specifications.” Once agreed upon, all modifications to the Service Level Specifications must be in writing and agreed to by the Parties in writing. 

  

	 	3.3	Cooperation with Novation. Neoforma shall cooperate with Novation in the performance of Novation’s limited agency obligations under Section 2 and to perform
Neoforma’s obligations as provided in Section 2. 

  

 11 

	 	3.4	Employee Incentives. No later than February 15 during each year of the term of this Agreement, Neoforma shall develop and implement employee compensation plans that will
provide Neoforma employees with incentives to meet Functionality Roadmap delivery dates. 

  

	 	3.5	Quality Assurance Program. Neoforma will administer a quality assurance program that has been mutually agreed to by Neoforma and Novation, among other things, to monitor
Supplier performance and order confirmation for Products ordered by Users. 

  

	 	3.6	Notice of Materially Adverse Facts. Subject to its obligations under Section 11.2, Neoforma will bring to the attention of each of Novation, VHA and UHC, reasonably promptly
after learning thereof, any fact that would reasonably be likely to materially adversely affect the Novation Marketplace, the HPPI Marketplace or the Members, VHA, UHC or HPPI, including, without limitation, the institution of litigation against
Neoforma or any Supplier. 

  

	 	3.7	Case Studies. During each of the calendar years 2003 through 2004, Neoforma shall on an annual basis (but in no event later than March 1 of each year) prepare two or more
User case studies documenting the economic value that the Novation Marketplace and HPPI Marketplace has for each of Suppliers and Members. After calendar year 2004, such case studies shall be prepared by Neoforma from time to time as mutually agreed
by Novation and Neoforma. In addition, during the Term, Neoforma shall measure current and cumulative value provided to Members and Suppliers by the Novation Marketplace and HPPI Marketplace. Each case study prepared by Neoforma will be sent to each
of Novation, VHA, and UHC for the purpose of marketing the Novation Marketplace and HPPI Marketplace to other Suppliers and Members. 

  

	 	3.8	Customer Integration. 

  

	 	3.8.1	Neoforma shall complete the Integration and make operational for receiving and confirming orders, or delivering or receiving Supply Chain Data, for each Supplier that is Signed-up
by the Supplier Integration Deadline. Neoforma shall, on a regular basis as agreed to by Neoforma and Novation in connection with the Service Level Commitments to be determined in accordance with Section 3.8.2 below, load onto the Novation
Marketplace Novation Supplier Content as provided by Novation Suppliers. Within 90 days of the execution of this Agreement, Neoforma and Novation shall meet and use best efforts to agree on commercially reasonable service level commitments regarding
the frequency, time frame and other parameters with respect to Neoforma’s obligation to load Content received from Novation Suppliers onto the applicable Customized Marketplace. 

  

 12 

	 	3.8.2	Neoforma shall be responsible for signing Members to the Novation Marketplace. Within ninety (90) days after the Effective Date and, thereafter once each year within ninety (90)
days after the anniversary of the Effective Date, Neoforma and Novation shall meet and use good faith and reasonable efforts to determine and agree upon their respective responsibilities in connection with obtaining additional agreements between
Members and Neoforma for use of the Novation Marketplace (“New Participating Members”). At each such meeting, Neoforma and Novation shall undertake to identify and attempt to sign as New Participating Members, those Members representing
purchasing volume, as measured by reference to the volume purchases of Novation Contract Products by Members (“Member Purchasing Volume”), that, if signed as New Participating Members, will result in participation in the Novation
Marketplace by * of the total Member Purchasing Volume by the end of the calendar year * (“Target Participation”). Neoforma shall staff appropriately to perform its obligations in connection with achieving Target Participation.

  

	 	    	In connection with all agreements with Members, Neoforma shall obtain the right to assign Member agreements for participation in the Novation Marketplace to each of Novation, VHA or
UHC in the event that this Agreement terminates or expires pursuant to Section 9 herein: (a) in all new agreements by including appropriate assignment language in such agreements, and (b) in all other agreements, by using commercially reasonable
efforts to obtain the applicable Member’s agreement to appropriate assignment language at the time of any amendment to or renewal of such agreement. In the context of new agreements and Neforma’s renewals as contemplated in clause (a)
above, if a Member refuses to agree to the proposed assignment language or proposes more limited assignment language, Neoforma shall so inform Novation and shall request Novation’s written consent to waive the requirement or agree to
alternative language, as the case may be. Novation’s consent may be by email or fax and shall not unreasonably be withheld or delayed. 

  

	 	3.8.3	Neoforma shall be responsible for either connecting signed Members to signed Novation Suppliers directly (EDI, XML, etc.) or making Supply Chain Data available directly to signed
Members. Neoforma and Novation shall agree on annual volume and connection targets. Neoforma shall staff appropriately to achieve the mutually agreed upon targets. The annual targets shall be based on the overall objective of connecting signed
Members to signed Novation Suppliers covering *. 

  

	*	Confidential treatment requested 

  

 13 

	 	3.8.4	Neoforma shall perform all obligations required of it and comply with all restrictions imposed on it pursuant to each agreement entered between Novation and a Supplier in compliance
with Section 2.2.1. 

  

	 	3.8.5	Neoforma shall not Sign-Up a Novation Supplier to the Novation Marketplace without the prior consent of Novation. Neoforma shall not Sign-Up a Novation Supplier of Non-Contract
Products on terms more favorable than those permitted to be entered into between Novation and a Novation Supplier. 

  
 4. THE MARKETPLACES 
  

	 	4.1	Maintenance of Novation Marketplace and HPPI Marketplace. Neoforma shall use its best efforts to maintain the Novation Marketplace and HPPI Marketplace as a leading
provider of e-commerce services to the healthcare industry. 

  

	 	4.2	Consultation. Neoforma, Novation, VHA and UHC will consult regularly (but no less frequently than on a quarterly basis) to discuss the strategic direction of the Novation
Marketplace and HPPI Marketplace, including the features and functions that would provide additional value to patrons and others. 

  

	 	4.3	Provision of Non-Contract Product Information. The Suppliers will be responsible for providing Neoforma with Materials to be located on the Marketplaces in respect of all
Non-Contract Products. Novation will review such Materials relating to the Non-Contract Products, subject to Neoforma providing Novation a methodology for previewing such Materials. Novation may request that any materials or data that Novation
reasonably and in good faith believes is likely to result in liability to Neoforma, Novation, HPPI, VHA UHC or any Users be promptly removed from the Novation Marketplace and/or HPPI Marketplace, and Neoforma shall use commercially reasonable
efforts to comply with such requests. Neoforma shall include language in all new contracts with Suppliers who Sign-Up for the Novation Marketplace that allows for the removal of material or data from the Novation Marketplace which Novation, in its
sole discretion, reasonably and in good faith believes to may result in injury or damage to the reputation or goodwill in the businesses of, or otherwise is likely to result in liability to, Neoforma, Novation, HPPI, VHA, UHC or any Users.

  

	 	4.4	 Provision of Contract Product Information. Novation shall be responsible for providing Neoforma with pricing for Contract Products and any unique facts and
summary sheets relating to such Contract Products that are prepared by Novation. The Novation Suppliers will be responsible for providing Neoforma with all other information regarding such Contract Products. Subject to Neoforma providing to Novation
a methodology for allowing Novation to preview Materials relating to Contract Products, Novation will review such information and determine that such information is reasonably accurate, prior to being loaded on the Novation 

  

 14 

	 	 
Marketplace (e.g., correct pricing, product numbers, description, etc.). Novation may request that any materials or data that Novation reasonably and in good
faith believes is likely to result in liability to Neoforma, Novation, HPPI, VHA UHC or any Users be promptly removed from the Novation Marketplace and/or HPPI Marketplace, and Neoforma shall use commercially reasonable efforts to comply with such
requests. Neoforma shall include language in all new contracts with Suppliers who Sign-Up for the Novation Marketplace that allows for the removal of material or data from the Novation Marketplace which Novation, in its sole discretion, reasonably
and in good faith believes to may result in injury or damage to the reputation or goodwill in the businesses of, or otherwise is likely to result in liability to, Neoforma, Novation, HPPI, VHA, UHC or any Users. 

  

	 	4.5	Independent Users. Prior to the date on which Neoforma concludes an agreement with a GPO (other than HPPI) having its own Supplier contracts (an “Independent
GPO”) who, as a condition to using a Marketplace, contractually requires Neoforma to act in a neutral manner, Neoforma shall refer any User who requests access to a Customized Marketplace (other than a Member entitled to use the
Novation Marketplace) to the HPPI Marketplace. After the date on which an Independent GPO is on the Marketplace, if a User (other than a Member entitled to use the Novation Marketplace) approaches Neoforma requesting access to a Customized
Marketplace, Neoforma shall act in a neutral manner with regard to such User and shall not be required to recommend or otherwise refer such User to any specific part of the Marketplace, including the HPPI Marketplace or the Novation Marketplace.
Notwithstanding the preceding sentence, Neoforma will at all times feature the HPPI Marketplace at least as prominently on the Marketplace as any other Customized Marketplace. 

  

	 	4.6	Multiple Memberships. If a Member is also a member of any other GPO that has a Customized Marketplace on the Marketplace, that Member will have access to all of the
Marketplace, including the Novation Marketplace or HPPI Marketplace, as the case may be, and the applicable Customized Marketplace. Members who are also Users of Customized Marketplaces will have access rights to the Novation Marketplace or the HPPI
Marketplace equal to those of Members that do not belong to Customized Marketplaces. Notwithstanding the foregoing, Neoforma shall provide favorable view and framing in respect of the Novation Contract Portfolio to any Member accessing the
Marketplace. 

  

	 	4.7	User Registration. Neoforma, with Novation’s assistance, will develop a Tool to register Members on the Novation Marketplace and HPPI Marketplace. Neoforma will require
Members to create and use passwords as a necessary condition to accessing the Novation and HPPI Marketplace. Neoforma shall be responsible for keeping the Novation Marketplace registry and the HPPI Marketplace registry current and for not allowing
access to such Marketplaces by unauthorized Users. 

  

 15 

	 	4.8	Delivery and Order Fulfillment. Neoforma will notify Novation Suppliers and provide Novation Suppliers access to the Transaction Database for sales, rentals and leases of
Products by such Novation Suppliers, in a form and format mutually agreed upon by Neoforma and Suppliers and to the extent set forth in the Functionality Roadmap. 

  

	 	4.9	Removal of Products from the Novation Marketplace and HPPI Marketplace. With regard to Non-Contract Products, Neoforma shall remove Product listings from the Novation
Marketplace and HPPI Marketplace promptly after determining that the appearance of such Products will, or is reasonably likely to, result in liability to Neoforma, Novation, HPPI, VHA, UHC or any Users. Upon such removal, Neoforma will promptly
notify Novation of such action and the reasons therefore. With regard to Contract Products, Neoforma shall notify Novation promptly after becoming aware of any problems with a Contract Product or that any such Contract Product will, or is reasonably
likely to, result in liability to Neoforma, Novation, HPPI, VHA, UHC or any Users. In addition and at the same time, Neoforma shall provide to Novation all information of which it is aware regarding the problems with such Contract Product. Neoforma
will obtain Novation’s prior written consent, prior to taking any action to remove such Contract Product listing from the Novation Marketplace and HPPI Marketplace. 

  

	 	4.10	Customized Marketplaces. In accordance with the Functionality Roadmap to be agreed upon, Neoforma may create Customized Marketplaces and other customized sites for the use
and benefit of Users on the Customized Marketplace. Neoforma will not intentionally create Customized Marketplaces for the purpose of evading fees owed to Novation under Section 8 of this Agreement. 

  

	 	4.11	Links. The Parties will establish and maintain hypertext links from the Novation web site, HPPI web site, VHA web site and UHC web site to the Novation Marketplace and HPPI
Marketplace. Each of Novation, HPPI and Neoforma will use reasonable efforts to ensure that the respective links that each Party maintains linking Novation, HPPI and Members to the Novation Marketplace and HPPI Marketplace function correctly.

  

	 	4.12	Reasonable Assistance. Each Party will provide the other Parties with on-going reasonable assistance with regard to technical, administrative and service-oriented issues
relating to the Marketplaces. 

  

	5.	NOVATION MARKETPLACE AND HPPI MARKETPLACE 

  

	 	5.1	 Development. The Parties shall meet from time to time to agree to the “look and feel” and organization of the Novation Marketplace and the HPPI
Marketplace, and to jointly develop and agree upon a Functionality Roadmap, which shall include an implementation plan and schedule for development of the Novation 

  

 16 

	 	 
Marketplace and the HPPI Marketplace. The current Functionality Roadmap is approved by the Parties as of the date hereof and attached hereto as Exhibit K.
The Collaborative Development Process is the process by which future Functionality Roadmaps will be developed and is attached hereto as Exhibit M.  

  

	 	5.2	Hosting. Neoforma will create, host and implement the Novation Marketplace and the HPPI Marketplace according to the agreed plan and display the Novation Contract Portfolio
in a manner similar to the way in which products currently appear on the Marketplace. 

  

	 	5.3	Delivery and Order Fulfillment. Neoforma will notify the Suppliers of purchases, rentals and leases made by Members in a form and format according to the terms of
Neoforma’s agreements with Suppliers. 

  

	 	5.4	Display of Material. In order to facilitate efficient presentation of Product information, Neoforma will categorize, organize and display all Products on the Novation
Marketplace and the HPPI Marketplace in a manner consistent with that in which it organizes similar information on other Customized Marketplaces. 

  

	 	5.5	Reports and Meetings. 

  

	 	5.5.1	Subject to obtaining the consent of the Members’ in accordance with Section 10, Neoforma will provide each of Novation, VHA, UHC and HPPI with real-time, on-line reports of its
Members usage statistics and reports on other reasonable matters. Such reports shall be made available in the form of ExcelTM files transferred via electronic transmission to Novation, VHA, UHC or HPPI, or in such other format as the Parties agree. The Parties will mutually
agree as to the scope, format and substance of the standardized reporting system that Neoforma will develop and modify from time to time (at no extra charge) and that will be available to Novation, VHA, UHC and HPPI via the Internet.

  

	 	5.5.2	 Neoforma and Novation shall establish and maintain a cross-functional management team in order to review operations of the Novation Marketplace. The
cross-functional management team shall meet (each a “Cross-Functional Management Team Meeting”) no less frequently than on a quarterly basis. The cross-functional management team shall include the lead executive from each of
Neoforma and Novation responsible for overseeing this Agreement, and shall also include management representatives from each of Neoforma and Novation from each functional area, including marketing, Member sales, Supplier relations, implementation
and development. Additionally, one or more representatives from each of VHA and UHC shall be invited to participate in each Cross-Functional Management Team Meeting. In addition, Neoforma and Novation shall establish a strategic planning team to

  

 17 

	 	 
discuss the direction and strategy of the Novation Marketplace. The strategic planning team shall meet at least twice in each calendar year.

  

	 	5.6	Retained Contracts. Either VHA or UHC may at any time elect to put their respective Retained Contracts on the Novation Marketplace. If the posting on the Novation Marketplace
is merely informational and Members are not able to purchase, rent or lease Products covered by such Retained Contracts through the Marketplaces, no fees shall be paid for such posting and shall be treated in the same manner as other Contract
Portfolio contracts. If during the Term, Novation Signs-up such Suppliers as Novation Suppliers, those new contracts shall then become subject to Sections 2 and 8 and shall be treated in the same manner as other Contract Portfolio contracts.

  

	 	5.7	Marketing. Novation, VHA, UHC and HPPI will use commercially reasonable efforts to drive traffic to the Novation Marketplace and the HPPI Marketplace, including, without
limitation, making appropriate introductions for Neoforma, allowing Neoforma preferred space and visibility at Member forums, presenting satellite broadcasts or web casting targeted at the Members, and otherwise in accordance with the roles and
responsibilities specified for each Party in any collaborative marketing agreement reached among the Parties. The current collaborative marketing agreement is attached hereto as Exhibit L. Novation, VHA and UHC will work with Neoforma to develop new
initiatives targeted toward increasing Members’ participation on the Marketplaces, including the Novation Marketplace and the HPPI Marketplace. 

  

	 	5.8	Neoforma Auction. 

  

	 	5.8.1	Novation, VHA, UHC and HPPI will promote the use of Neoforma’s asset management and recovery services and related activities of Neoforma Auction to patrons and others.

  

	 	5.8.2	Any Member wishing to utilize the Neoforma Auction and Neoforma’s asset management and recovery services shall enter into an Asset Recovery Services Agreement with Neoforma.

  

	 	5.8.3	Neoforma may delegate the performance of the asset management and recovery services to a third party appointed by Neoforma. 

  

	6.	EXCLUSIVITY AND RIGHT OF FIRST OFFER 

  

	 	6.1	 Novation, VHA, UHC and HPPI Exclusivity. Except as provided in Section 6.3, each of Novation, HPPI, VHA and UHC agrees that it will not directly or
indirectly develop, promote, contract for the development of, assist others to develop, or enter into any agreement with any other person to provide to any of them, or promote to their Members, any Internet- 

  

 18 

	 	 
based marketplace related to Supply Chain Management Services by acute or non-acute healthcare providers anywhere in the world other than the Marketplaces.

  

	 	6.2	Neoforma Exclusivity. 

  

	 	6.2.1	Except as otherwise provided in Section 6.3, neither Neoforma nor its Affiliates will develop, promote, contract for the development of, assist others to develop, or enter into any
agreement with any other person to provide, any Internet-based system related to the acquisition or disposal of equipment, products, supplies, services, information and other content by acute or non-acute healthcare providers anywhere in the world
other than the Marketplaces. 

  

	 	6.3	Right of First Offer for Novation and Neoforma. 

  

	 	6.3.1	If either Novation or Neoforma elects to commence an Internet-venture in any country other than the United States or in any market that is not then served by a Customized
Marketplace (whether in the United States or otherwise), such Party (the “Offeror”) shall offer to the other (the “Offeree”) the opportunity to participate in such venture in a manner commensurate with
the Offeree’s role under this Agreement (including the right of Novation to create other contract portfolios similar to the Novation Contract Portfolio or to recruit suppliers for such venture). The Offeror shall provide full information to the
Offeree regarding the venture, and shall make its senior executives available to meet with the Offeree to discuss the venture. The Offeror shall also notify the Offeree of such venture a reasonable time prior to commencement of the venture (but in
no event less than 60 days prior to the date on which the Offeree must decide to participate). If after consideration the Offeree declines to participate in such venture, then, notwithstanding Section 6.1 or 6.2, as the case may be, the Offeror may
proceed with such venture, but solely in that market or country, and on no less favorable terms and conditions in the aggregate as had been offered to the Offeree. In addition, the Offeree shall be released from its obligations under Section 6.1 or
6.2, as the case may be, but solely in respect of the market or country that was the subject of such Offer. If the Offeror subsequently does not consummate the venture, and the Offeror wishes to commence another venture in the same market or
country, the Offeror must once again offer such opportunity to the Offeree. The Offeror shall have no obligation to share any fees earned in a venture in which the Offeree has not elected to participate. Neoforma and Novation shall work in good
faith to provide software tools and services under this Agreement and in conjunction with the Novation Marketplace and the HPPI Marketplace that enable Novation, VHA and UHC to maintain competitive positions in their markets.

  

 19 

	 	6.3.2	Business development representatives of Neoforma and Novation shall meet on a quarterly basis to review existing opportunities in foreign markets and countries and to review
existing opportunities in markets not then served by a Customized Marketplace. Such representatives shall prepare a joint plan to identify and exploit such other opportunities in foreign markets and in other healthcare markets. Any right of an
Offeror to proceed with a venture under Subsection 6.3.1 without the Offeree shall be conditioned on such Offeror’s compliance with this Subsection 6.3.2. 

  

	 	6.4	First Offer for Non-Exclusive Services. 

  

	 	6.4.1	The term “Non-Exclusive Service(s)” means Internet-related services available primarily through Neoforma that are outside the scope of Section 6.1,
including, without limitation, the products and services excluded from the definition of Supply Chain Management Services as applied to UHC. For purposes of clarification, Non-Exclusive Services will not include Internet-related services the
majority of which are provided by an entity other than Neoforma. UHC shall give favorable consideration to Neoforma as a third-party provider to UHC of Non-Exclusive Services as follows: if (i) UHC elects to provide for itself or for the benefit of
all or substantially all of UHC’s Members any new Non-Exclusive Service or (ii) UHC intends to replace any agreement for the provision of a Non-Exclusive Service then being provided to UHC by a third party, then UHC shall first offer to
Neoforma the opportunity to provide such Non-Exclusive Service (the “Opportunity”). Promptly upon becoming aware of an Opportunity, UHC shall send notice of the Opportunity in electronic or paper writing to the Chief
Executive Officer of Neoforma, or his or her designate. Promptly after receiving such notification, but in no less than 15 days, Neoforma shall meet with UHC to discuss the Opportunity and Neoforma’s proposed role therein. Neoforma and UHC
shall continue to meet and discuss the Opportunity for the 30-day period commencing upon UHC’s notification to Neoforma. Neither UHC nor Neoforma will have any obligation to meet and to discuss the Opportunity (i) if Neoforma does not meet with
UHC within the time required, or (ii) after the expiration of the 30-day discussion period. The communication by UHC to Neoforma of any Opportunity, including the ideas, concepts or other intellectual property contained therein, will be Confidential
Information subject to Section 11. 

  

	 	6.4.2	For the avoidance of doubt and notwithstanding anything to the contrary in this Agreement, in no event will UHC be required to obtain any Non-Exclusive Service from Neoforma.

  

 20 

	7.	LICENSES AND OWNERSHIP 

  

	 	7.1	Ownership of Marks. Each Party will own and retain all right, title and interest in and to its intellectual property, including its trademarks, trade names, service marks and
logos (“Marks”) worldwide, as specified in Exhibit A. 

  

	 	7.2	Novation Marks. Subject to the terms of this Agreement, Novation grants to Neoforma, VHA, UHC and HPPI a worldwide, nontransferable, non-exclusive, royalty-free license to
use, transmit and display Novation’s Marks in connection with the Marketplaces during the Term of this Agreement, provided that such use is in accordance with Novation’s then-current trademark usage guidelines. A copy of
Novation’s current trademark usage guidelines is attached as Exhibit B. Upon any change in such guidelines, Novation will promptly provide to Neoforma a copy of such revised usage guidelines. Neoforma will not modify the Novation Marks
or combine any of the Novation Marks with any other mark or term. Subject to the provisions of Section 9.9, upon termination or expiration of this Agreement, Neoforma will cease all use of the Novation Marks. 

  

	 	7.3	Neoforma Marks. Subject to the terms of this Agreement, Neoforma grants to Novation, VHA, UHC and HPPI a worldwide, nontransferable, non-exclusive, royalty-free license to
use, transmit and display Neoforma’s Marks during the Term only in promotional materials used to encourage participation on the Marketplaces, provided that such use is in accordance with Neoforma’s then-current trademark
usage guidelines. A copy of Neoforma’s current trademark usage guidelines is attached as Exhibit C. Upon any change in such guidelines, Neoforma will promptly provide to Novation, VHA, UHC and HPPI a copy of such revised usage
guidelines. Except as authorized under this Agreement, Novation, VHA, UHC and HPPI will not modify any of the Neoforma Marks or combine the Neoforma Marks with any other mark or term. Subject to the provisions of Section 9.9, upon the termination or
expiration of this Agreement, Novation, VHA, UHC and HPPI will cease all use of the Neoforma Marks. 

  

	 	7.4	VHA, UHC and HPPI Marks. Subject to the terms of this Agreement, each of VHA, UHC and HPPI grants to Novation and Neoforma a worldwide, nontransferable, non-exclusive,
royalty-free license to use, transmit and display its Marks solely to promote the Marketplaces to the Members during the Term, provided that such use is in accordance with the then-current trademark usage guidelines of VHA, UHC and
HPPI, as the case may be. A copy of each of VHA’s, UHC’s and HPPI’s current trademark usage guidelines are attached as Exhibit D. Except as authorized under this Agreement, Neoforma and Novation will not modify any of the Marks
of VHA, UHC and HPPI or combine any of them with any other mark or term. Subject to the provisions of Section 9.9, upon the termination or expiration of this Agreement, Neoforma and Novation will cease all use of VHA’s, UHC’s and
HPPI’s Marks. 

  

 21 

	 	7.5	Ownership of Neoforma Materials and Novation Materials. Neoforma and Novation will own and retain all worldwide right, title and interest in and to the Neoforma Materials and
Novation Materials, respectively. Neither Neoforma nor Novation will alter or delete any copyright or other proprietary notice that may appear in the other Party’s Materials without prior written consent of such Party. 

 

	 	7.6	Neoforma Materials. Neoforma grants to Novation a worldwide, nontransferable, non-exclusive, royalty-free license to use the Neoforma Materials only in promotional materials
used to encourage participation on the Marketplaces. 

  

	 	7.7	Novation Materials. Novation grants to Neoforma a worldwide, nontransferable, non-exclusive, royalty-free license to use the Novation Materials on the Marketplaces during the
Term solely to enable Neoforma to provide the Services contemplated under this Agreement. 

  

	 	7.8	Development of Tools. From time to time during the Term, Novation may request Neoforma to design Tools for Members or Suppliers in addition to the Tools, functions and APIs,
which will be mutually agreed upon and contained in the Functionality Roadmap. Within a reasonable time after such request, appropriate personnel from Novation and Neoforma will meet to discuss and draft technical specifications for the desired
customized Tools, functions and APIs. 

  

	 	7.8.1	If the Tool, function or API requested by Novation will be used by all Users of the Customized Marketplaces, Neoforma will develop such Tool, function or API promptly and at its own
expense. Neoforma will own and retain all right, title and interest to all the intellectual property, including the source code, object code and other Confidential Information, in and to the Neoforma developed Tools, functions and APIs.

  

	 	7.8.2	If Neoforma does not otherwise agree to develop such Tool, function or API for use by all Users of the Customized Marketplaces, Novation may, in its sole discretion, agree to pay
for the development of such Tool, function or API. If Novation agrees to pay Neoforma for the development of such Tool, function or API, Neoforma will promptly endeavor to develop such requested Tool, function or API, and Novation will own all
right, title and interest to all the intellectual property, including all source code, object code and other Confidential Information, in and to such Tools, functions and APIs. Any fees charged to Novation for development of any Tool, function or
API shall be provided by Neoforma at the most favorable fee Neoforma charges to any other person for such development or integration services. 

  

	 	7.8.3	Nothing in this Section 7.8 shall limit Neoforma’s obligation to provide the Services as shall be set forth in the Functionality Roadmap. 

  

 22 

	 	7.9	Access License. Neoforma grants to Novation a non-exclusive, worldwide, non-assignable license to members of Novation and HPPI in order to access the Novation Marketplace and
HPPI Marketplace. Novation and HPPI grant to Neoforma a non-exclusive, worldwide, non-assignable license to access the Novation and HPPI web sites and computer systems solely to enable Neoforma to provide the services contemplated under this
Agreement. 

  

	8.	FEES AND TAXES 

  

	 	8.1	Fees. 

  

	 	8.1.1	Neoforma and Novation shall each use its reasonable best efforts to collect all Transaction Fees required to be paid by each supplier that each signs up as a Supplier.

  

	 	8.1.2	Novation guarantees to Neoforma aggregate minimum Novation Marketplace Transaction Fees, which shall be calculated as a percentage (the “Supplier Target
Percentage”) of the * as set forth on Exhibit G (the “Minimum Fees”). Subject to Section 3.8 and Subsection 8.1.3, Novation shall pay to Neoforma the shortfall, if any, * between the Minimum Fees
calculated in accordance with this Section 8.1.2 and the Novation Marketplace Transaction Fees recognized by Neoforma in accordance with GAAP * (each such payment, a “Shortfall Payment”). 

  

	 	8.1.3	Notwithstanding anything in this Agreement to the contrary, Novation shall not be responsible for any Shortfall Payment: (i) *, (ii) in excess of eighteen million ($18,000,000)
dollars for the third calendar quarter (running July 1 through September 30) of 2003, and fifteen million two hundred thousand ($15,200,000) for the fourth calendar quarter (running October 1 through December 31) of 2003, and (iii) beginning on
January 1, 2004, the maximum quarterly Shortfall Payments shall not exceed fifteen million, two hundred and fifty thousand ($15,250,000) dollars per calendar quarter (the “Maximum Quarterly Shortfall Payments”).

  

	 	8.2	Revenue Sharing. 

  

	 	8.2.1	The Parties have agreed to the Target Fee Levels (the “Target Fee Levels”), set forth in Exhibit I. 

  

 23 
  

	*	Confidential treatment requested 

	 	8.2.2	Neoforma shall pay to Novation * of any Novation Marketplace Transaction Fees recognized by Neoforma in accordance with GAAP in excess of the Target Fee Level for any given *, but
only if Novation has fulfilled its obligations under Subsection 8.1.2. 

  

	 	8.2.3	Subject to Section 8.2.2, Neoforma shall retain all revenues it earns and collects, and Novation shall pay to Neoforma within thirty (30) days after the end of each *, all revenues
earned by Neoforma but * (as the case may be) for the provision of the Novation Marketplace during that *, including all *, and revenue that would otherwise be subject to revenue sharing pursuant to Section *. 

  

	 	8.3	Monthly Payment of Maximum Quarterly Shortfall Payments. On the * of each calendar month, Novation shall prepay to Neoforma an amount equal to one-third of that
quarter’s Maximum Quarterly Shortfall Payments payable pursuant to Sections 8.1.2 and 8.1.3. Beginning in 2004, on or before March 15 of each year, Neoforma and Novation shall meet and agree on the amount of any “true-up adjustment”
required to the Maximum Quarterly Shortfall Payment amounts for the preceding year pursuant to Sections 8.1.2 and 8.1.3 based on *. Neoforma and Novation shall apply any such “true-up adjustments” to subsequent Maximum Quarterly Shortfall
Payments as mutually agreed to by them. 

  

	 	8.4	Reporting and Calculation of Fees and Revenue Sharing. To fulfill the obligations of Novation and Neoforma under Section 8.3 to agree on estimated and actual Shortfall
Payments, before any meeting conducted pursuant to Section 8.3: (a) Novation will provide Neoforma with a written report of the revenues received by Novation for the provision of the Novation Marketplace (including Transaction Fees and Neoforma
Marketplace Transaction Fees); and (b) Neoforma will provide each of Novation, VHA and UHC, with a written report of: (i) aggregate Adjusted Gross Transaction Values and Supply Chain Data Transaction Values for all purchases, rentals and leases of
Products through the Novation Marketplace, (ii) the aggregate amount of any Transaction Fees received by Neoforma, (iii) the aggregate amount of any Novation Marketplace Transaction Fees received by Neoforma; (iv) the information set forth in
Exhibit E and such other information as Novation may reasonably request; (v) revenue received by Neoforma from distribution or licensing of software and other technology solutions; and (vi) revenue received by Neoforma associated with Section
8.9 below. Neoforma and Novation shall then jointly calculate: (i) the Minimum Fees, (ii) any revenue sharing amounts under Sections 8.2, 8.9, and 8.10, and (iii) any other fees to be paid by a Party. 

  

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	*	Confidential treatment requested 

	 	8.5	* 

  

	 	8.5.1	Right to *. Beginning on January 1, 2003 and from time to time thereafter, either Novation or Neoforma may initiate an * (the * “Process”) in order to
*. 

  

	 	8.5.2	* Process. In the case of a general * Process, (i) either Novation or Neoforma may select and hire a *, which * shall be reasonably acceptable to the other Party, and the
Party selecting such * shall pay all costs associated with the * Process; or (ii) Novation and Neoforma shall mutually agree upon an independent, third party * and Novation and Neoforma shall share all costs associated with such shared * In
addition, in the case of a * Process with respect to Supplier Target Percentages, or if Neoforma and Novation otherwise agree with respect to a general * Process, Neoforma and Novation may rely on publicly available information in carrying out the *
Process, and to carry out the * Process without the use of a third-party *. The Parties shall cooperate to facilitate the * Process, including by providing reasonable information as is necessary to conduct the * Process. 

  

	 	8.5.3	General *. The * Process for general items shall * (i) with respect to Neoforma, * provided by Neoforma to Novation, the * offered to Members, the * offered to Suppliers, the
*, and * under this Agreement and (ii) with respect to Novation, any Shortfall Payment as provided in Subsection 8.1.3 and, in each case, shall be based upon a * including, without limitation, * pursuant to or in connection with this Agreement and
other material terms and conditions. If the * Results indicate that the * by Novation or Neoforma, as the case may be, are not *, Neoforma and Novation shall promptly meet and enter into a good faith negotiation to determine whether there should be
an *. 

  

	 	8.5.4	*. The * Process with respect to * shall be based upon review of whether such * are *. If the * Results indicate that the * in place during the period examined are not *,
then Neoforma and Novation shall promptly meet and adjust * such * so that they are *. For the avoidance of doubt, the Parties agree that * shall mean that (i) * are reasonably likely to agree to pay such fees at such time or (ii) such *.

  

	 	8.5.5	 * Results. Within 30 days after the completion of any * Process, *, if any, shall deliver the results of the * (the * “Results”) in a
written report, including identification of the figures and supporting 

  

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	*	Confidential treatment requested 

	 	 
documentation, to Novation and Neoforma. In the event that the * Process does not utilize a third-party * the Party initiating the * Process shall be
responsible for writing and delivering such report of the * Results to the other Party. 

  

	 	8.5.6	* Review Period. For a period of 60 days following delivery of the * Results from the * (the * “Review Period”), Novation and Neoforma shall review
the * Results, and schedule one or more meetings to address any issues either Party may have with the * Results. 

  

	 	8.5.7	* Dispute. In the event Novation and Neoforma in good faith dispute the * Results or if Novation and Neoforma have not reached agreement after the * Review Period, Novation
may dispute such outcome in accordance with the provisions of Section 18 hereto. 

  

	 	8.6	Taxes. Neoforma and Novation shall cooperate to minimize any local, state, national and foreign taxes (including, without limitation, sales, use and VAT taxes which may
apply), licenses, export/import fees and any other fees or similar obligations relating to any sale, rental or lease of a Contract Product through the Marketplaces or relating to the Supply Chain Data. If in the future any such taxes or similar
obligations are required to be paid by Neoforma or Novation in respect of Contract Products, such fees shall be shared by Neoforma and Novation proportionately based on revenues each derives from the Novation Marketplace and HPPI Marketplace. In no
event shall Novation be required to share any taxes under this Section 8.6 for Products other than Products for which Novation receives Novation Marketplace Transaction Fees. 

  

	 	8.7	New Markets. If Neoforma and Novation agree pursuant to Section 6.3 to enter any other healthcare market (other than the United States acute care market) that is not then
served by a Customized Marketplace or that is in countries outside of the United States, Neoforma and Novation shall negotiate in good faith to set the Transaction Fees to be paid in respect of such products to be purchased, rented and leased on
such Customized Marketplace. 

  

	 	8.8	Product Returns. Neoforma and Novation will cooperate in good faith to make any adjustments to the fees to be paid hereunder to reflect Products that have been returned by
Users. 

  

	 	8.9	Neoforma Auction and other GPO and non-GPO marketplaces. Beginning January 1, 2002, Neoforma shall pay to Novation on a * received by Neoforma from * from (i) Neoforma
Auction (and any successor marketplaces providing substantially similar services), (ii) * and (iii) all purchases, rentals and leases of *. 

  

	 	8.10	 Distribution or Licensing of Software and other Technology Solutions. Neoforma will pay to Novation * received by Neoforma *, whether to buyers or
suppliers, but not * in any way related to Neoforma Auction. For the 

  

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	*	Confidential treatment requested 

	 	 
avoidance of doubt, the Parties agree that this Section 8.10 shall not limit the scope of Section 6.2.1. 

  

	 	8.11	Other Expenses. Neither Neoforma nor Novation shall be required to pay to the other Party any amounts for the performance of their respective obligations hereunder other than
those expressly set forth in this Agreement. 

  

	 	8.12	Amendments to Section 8. 

  
 (i) Any Party may, upon reasonable notice, require the Parties to meet at a mutually agreed time and place and negotiate in good faith to amend or change
Sections 8.1.2, 8.1.3, 8.2.1 and 8.3 of this Agreement no more than two-hundred seventy (270) but no less than one-hundred eighty (180) days prior to the expiration of the Initial Term and renewal of this Agreement, pursuant to Sections 9.1 and 9.2
below. 
  
 (ii) * may, upon reasonable notice, require * to meet
at a mutually agreed upon time and place and * of this Agreement at any time during the Term of this Agreement, in the event of a *. For the purposes of this Section 8.12, a * means a * percent (20%) of the combined revenue of VHA and UHC from
Suppliers in any twelve month period as compared to such Supplier revenue for the immediately preceding twelve month period. For example, if the combined revenue of VHA and UHC has declined in the period from April 1, 2004 to March 31, 2005 more
than 20% when compared with such combined revenue for the period from April 1, 2003 to March 31, 2004, a Catastrophic Change shall be deemed to have occurred. 
  

	9.	TERM AND TERMINATION 

  

	 	9.1	Initial Term. This Agreement commences on the Original Effective Date and will remain in effect for an initial term of 10 years (the “Initial Term”),
unless terminated earlier in accordance with the terms of this Agreement. 

  
  

	 	9.2	Renewal and Extension of Term. This Agreement will automatically renew for successive one-year terms after the completion of the Initial Term (each a “Renewal
Term”) unless Neoforma or Novation provides written notice of its intention to terminate this Agreement to the other at least 90 days prior to the end of the Initial Term or any then-current Renewal Term. The Initial Term and any and
all renewals or extensions thereof and any Termination Assistance Period are referred to herein as the “Term”. 

  

	*	Confidential treatment requested 

  

 27 

	 	9.3	Termination for Cause or Failure to Amend. 

  
 (a) Each of Neoforma and Novation, after complying with Section 18.2 hereunder, will have the right to terminate this Agreement if the other Party
materially breaches (i) its service obligations under this Agreement or (ii) its exclusivity obligations under Section 6 of this Agreement, unless the breaching Party (x) cures such breach within 30 days after receiving written notice or (y) if such
breach is not curable within 30 days, makes substantial progress in curing such breach within 30 days and cures such breach within 90 days. Any repeated or sustained failure of Neoforma to meet its Service Level obligations hereunder shall
constitute a material breach of Neoforma’s service obligations under Subsection (i) hereunder. 
  
 (b) In the event a Party requests a meeting to amend Sections 8.1.2, 8.1.3, 8.2.1 or 8.3 pursuant to Section 8.12(i) above, and the Parties do not reach
agreement following good faith negotiations on such amendments, any Party may terminate this Agreement upon 120 days prior written notice to the other Party. In the event * pursuant to Section 8.12(ii) above, and the Parties do not *. 
  

	 	9.4	Termination for Insolvency Events. If either Neoforma or Novation is unable to obtain credit from any creditors, becomes insolvent, makes an assignment for the benefit of its
creditors, or becomes the subject of a proceeding under Title 11 of the United States Code, as amended, or becomes the subject of similar state court proceedings, then in any such case, the other Party, or in the case of Neoforma, VHA, UHC or HPPI,
may, without prejudice to any other rights, immediately terminate this Agreement or, if such termination is subject to any statutory provision or judicial order staying such action, seek leave to modify such stay so as to terminate this Agreement.
Each of Neoforma and Novation acknowledges and agrees that its insolvency, the making of an assignment for the benefit of its creditors, or its becoming the subject of a proceeding under Title 11 of the United States Code, is “cause” for
the termination of any statutory or judicial stay of the rights of the other Party to terminate this Agreement. Each of Neoforma and Novation acknowledges and agrees that, in such event, it could not provide “adequate protection” to the
other Party, or in the case of Neoforma, to VHA, UHC or HPPI, that the continued imposition of a stay would likely cause irreparable harm to the other Party, and the continued imposition of a stay would adversely affect the health, safety and
welfare of communities served by the Parties. 

  

	 	9.5	 Termination for Rejection in Bankruptcy. Each of Neoforma and Novation will have the right to immediately terminate this Agreement if the other Party becomes
a debtor or an alleged debtor in a case under Title 11 of the United States Code, as 

  

	*	Confidential treatment requested 

  

 28 

	 	 
amended, and in such proceeding this Agreement is rejected in such case in accordance with Title 11 of the United States Code. 

 

	 	9.6	Termination Upon Neoforma Change of Control. Novation may terminate this Agreement upon any Neoforma Change of Control. 

  

	 	9.7	Return of Materials. Subject to Section 9.8, upon termination or expiration of this Agreement for any reason, each of Neoforma and Novation shall promptly return to the other
Party, and shall not take, use or disclose, all Products of any nature that belong to the other Party and all records (in any form, format or medium) containing or relating to Neoforma Materials or Novation Materials or the Confidential Information
of the other Party. 

  

	 	9.8	Survival. The provisions of Sections 7.1, 7.5, 8.4, 9.7, 9.8, 9.9, 9.10, 10, 11, 15, 16, 17, 18, 19 and 20 will survive termination or expiration of this Agreement for any
reason. 

  

	 	9.9	Termination Assistance Services. 

  

	 	9.9.1	General. Upon any termination or expiration of this Agreement, Neoforma shall provide termination assistance and shall comply with the reasonable directions of Novation, or,
if applicable, VHA or UHC, to allow the Services to continue without interruption or adverse effect and to facilitate the orderly transition and migration of all Services then being performed by Neoforma, including any transition and migration from
Neoforma to Novation or, if applicable, VHA and UHC, (or a third-party provider undertaking, on behalf of Novation, VHA or UHC, to provide the Services) (the “Termination Assistance Services”), all in accordance with this
Section 9. Additionally, all of Novation’s, or, if applicable, VHA’s and UHC’s, rights under this Agreement (including, without limitation, the right to license software hereunder), as such rights exist immediately prior to any
expiration or termination, but excluding any right to share Novation Marketplace Transaction Fees with Neoforma pursuant to Section 8, shall continue during any Termination Assistance Period (as defined in Section 9.9.2). Novation or, if applicable,
VHA and UHC, shall cooperate in good faith with Neoforma in connection with Neoforma’s obligations under this Section 9. 

  

	 	9.9.2	 Termination Assistance Period. Neoforma shall commence providing Termination Assistance Services (i) with respect to the scheduled expiration of this
Agreement, 90 days prior to such scheduled expiration or such earlier date as Novation may reasonably request, and (ii) with respect to any termination of this Agreement, upon the delivery of the notice of termination. Neoforma shall continue
providing Termination Assistance Services through the effective date of the expiration or 

  

 29 

	 	 
termination of this Agreement and for a period of not less than * days thereafter (the “Termination Assistance Period”). Upon at
least 30 days prior written notice to Neoforma, Novation or, if applicable, each of VHA and UHC, may extend, from time to time, the Termination Assistance Period for an additional * period. During any Termination Assistance Period, Neoforma shall
provide, at Novation’s request, or, if applicable, VHA’s or UHC’s request, as applicable, as part of the Termination Assistance Services, any or all of the Services being provided by Neoforma prior to the date of the expiration or
termination of this Agreement. 

  

	 	9.9.3	Termination Plan. Neoforma and Novation or, if applicable, VHA and UHC, shall cooperate in good faith to develop a termination plan setting forth the respective tasks to be
accomplished by each Party in connection with the termination and a schedule pursuant to which such tasks are to be completed in accordance with the Termination Assistance Services (collectively, the “Termination Plan”).

  

	 	9.9.4	Certain Licenses. As of the Original Effective Date, Neoforma shall grant the following to Novation: 

  

	 	(i)	a * license to all third-party software that is required to provide the Services, to the extent Neoforma is entitled to sublicense such software, and to the extent Neoforma is not
entitled to sublicense such software, Neoforma shall provide a list of all third-party software licenses that are required to provide the Services and shall assist Novation in licensing a substantially similar software at a commercially reasonable
price; and 

  

	 	(ii)	a * license, solely for Novation’s internal use, to all Neoforma-owned software that is required to provide the Services. For the avoidance of doubt, “internal use”
as used in this Section 9.9.4 shall include the right of other Internet marketplaces or providers to use the software solely on behalf of Novation for its Members. In addition, Neoforma shall provide to Novation consulting services, at no charge to
Novation, as may be reasonably required in order to recreate the Marketplace environment for Novation. 

  

	 	(iii)	 Additionally, if at any time after the Original Effective Date Neoforma begins using any software to provide the Services, then Neoforma shall be deemed to have
granted, as of the first date on which such software is used to provide the Services and for so long as such software is either used or required to provide the Services, the following licenses to Novation: (x) with respect to third-party software, a
* license to such software, to the extent Neoforma is 

  

	*	Confidential treatment requested 

  

 30 

	 	 
entitled to sublicense such software, and (y) with respect to Neoforma-owned software, a * solely for Novation’s internal use, to such software.

  

	 	(iv)	Notwithstanding the other provisions in this Section 9.9.4, Novation shall not use such licenses until the effective date of the termination of this Agreement in accordance with
Section 9.3, 9.4, or 9.5. 

  

	 	9.9.5	Equitable Remedies. Neoforma acknowledges that, if it breaches (or attempts or threatens to breach) its obligation to provide Novation or, if applicable, VHA and UHC,
Termination Assistance Services in accordance with this Section 9.9, Novation or, if applicable, VHA and UHC, will be irreparably harmed. In such circumstance, and notwithstanding the provisions of Section 18, Novation or, if applicable, each of VHA
and UHC, may proceed directly to court. If a court of competent jurisdiction should find that Neoforma has breached (or attempted or threatened to breach) any such obligations, Neoforma agrees that even without any additional findings of irreparable
injury or other conditions to injunctive relief, it shall not oppose the entry of an appropriate order compelling performance by Neoforma restraining it from further breaches (or attempted or threatened breaches). 

  

	 	9.10	 Third Party Products. Notwithstanding anything in this Agreement to the contrary, prior to entering any agreement with a third party for the provision of
software (other than providers of off the shelf software) (the “Third Party Products”), Neoforma shall use commercially reasonable and good faith efforts to obtain the agreement of each provider of a Third Party Product that
such Third Party Product may be assigned and/or sublicensed without additional charge to each and any of Neoforma, VHA or UHC. If Neoforma is not able to obtain such written agreement or, in the event that Neoforma is informed that such provision
will be made available at additional cost to Neoforma, Neoforma shall promptly provide notice of such to each of Novation, VHA and UHC, setting forth with particularity in such notice the nature of the proposed Third Party Product, the nature of the
assignment and/or sublicense proposed, the agreement to be signed and, if applicable, the additional cost for the required assignment and/or sublicense provision. Each of Novation, VHA and UHC shall have one business day after the receipt of such
notice from Neoforma to advise Neoforma as to whether Novation, VHA or UHC, or any of them or any combination of them, agrees to pay the additional cost involved for the proposed assignment and/or sublicense provision. Failure of Novation, VHA or
UHC to advise Neoforma of its decision within one business day after the receipt of notice from Neoforma shall be deemed an affirmative refusal to pay additional amounts required to obtain the proffered assignment and/or sublicense provision and,
provided that the agreement is not materially modified in a manner that might cause the sublicense 

  

	*	Confidential treatment requested 

  

 31 

	 	 
and/or assignment provision to be renegotiated in a manner more favorable to Novation, VHA or UHC, Neoforma may proceed to enter into the agreement for such
Third Party Product without further obligation to Novation, VHA or Neoforma under this Section 9.10. 

  

	10.	USER DATA 

  

	 	10.1	Registration. Users who are representatives of Members will be required to register as a representative of a Member prior to using the Novation Marketplace. To effect such
registration, Neoforma will require that each Member or other User complete a registration form in form and substance reasonably acceptable to Novation, which form shall request, among other things, submission of contact information regarding the
User, including, without limitation, the User’s name, name of the Member organization, mailing address, and email address. Neoforma will verify such information against the on-line data base information made available by Novation and ensure
that such registration is authorized in accordance with registration and password issuance and protection procedures acceptable to Neoforma and in accordance with the Functionality Roadmap to be mutually agreed upon. Neoforma will store data
collected during registration as part of the Information in the Transaction Database. 

  

	 	10.2	Transaction Database. Neoforma will create and maintain the Transaction Database relating to all activity occurring on the Novation Marketplace and relating to Supply Chain
Data in accordance with the Functionality Roadmap to be mutually agreed upon. Novation and Neoforma shall only use Information in accordance with the provisions of this Section 10. Neoforma shall at all times make all Information available to
Novation in any manner that it is, or can reasonably be, made available. 

  

	 	10.3	Member Data. Members shall own their respective Member Data. Novation will use commercially reasonable efforts to acquire a nonexclusive, non-transferable license from
Members (or sublicense from VHA, UHC or HPPI) to permit: 

  

	 	(i)	Novation to access and use such Member Data for, among other things, (A) legal compliance purposes, (B) to track the performance of Suppliers, (C) to be able to track payments to
VHA, UHC and HPPI and cooperative payments to the Members, (D) to consult with each of the Members and (E) to promote utilization and standardization among Members; and 

  

	 	(ii)	Neoforma to use such Member Data provided that such use is (A) solely related to the performance of Neoforma’s obligations pursuant to this Agreement and (B) in
accordance with the confidentiality provisions of Section 11. 

  

 32 

	 	10.4	Aggregated Member Data. Subject to the receipt of a license or sublicense for use of the Member Data, Novation shall own the Aggregated Member Data. 

 

	 	10.5	Transaction Database. Subject to the ownership rights of the Members in Member Data and of Novation in Aggregated Member Data, Neoforma shall own the derivative works created
by using the Member Data and the Aggregated Member Data, provided that no such information may be used by Neoforma other than subject to the following conditions: 

  

	 	(i)	in accordance with the license or sublicense to be obtained from Members in accordance with the provisions of Subsection 10.3 (ii); or 

  

	 	(ii)	is provided as Blinded Aggregated Data. 

  

	 	10.6	License Grant of Information to Novation. 

  

	 	10.6.1	Subject to the terms and conditions of this Agreement, Neoforma hereby grants to Novation a nonexclusive, non-transferable license during the Term to access and use the Information
and Blinded Aggregated Data; provided, however, that (i) such use is solely for Novation’s internal use and for the sublicensing of the use of such data to VHA, UHC and HPPI for their use in serving the needs of their Members
(provided that a Party may not license, sell or otherwise make available the Information), (ii) such use complies with the privacy policy in existence on the Novation Marketplace at the time of such use and (iii) Novation, VHA, UHC and
HPPI each treat such Information as Confidential Information subject to Section 11 of this Agreement. Notwithstanding anything to the contrary in this Agreement, Novation may not access Blinded Aggregated Data to the extent the source of such
information contractually prohibits Neoforma from making such information available to Novation. In the event Neoforma is contractually prohibited in such a manner, Neoforma shall use commercially reasonable efforts to provide Novation access to
that Blinded Aggregated Data which can be prepared by redacting the information of such third parties with whom Neoforma has a contractual prohibition. 

  

	 	10.6.2	Subject to the terms and conditions of this Agreement, Neoforma hereby grants to Novation a nonexclusive, non-transferable license, to sublicense the Information described in
Section 10.5 to Suppliers. 

  

	 	10.6.3	With respect to the Information sublicensed by Novation under Subsection 10.6.2, Novation will keep * of the gross license fees and the remaining * of such license fees shall be
paid to Neoforma. 

  

	 	10.7	 No Other Licenses or Use. Except as expressly set forth in this Section 10, none of the Members, Novation or Neoforma grants any license, express or implied,
in 

  

	*	Confidential treatment requested 

  

 33 

	 	 
the Member Data, Aggregated Member Data or Information. The failure to abide by the terms and conditions of this Section 10 shall constitute a material
default of this Agreement. 

  

	 	10.8	Other Data. Neoforma and Novation acknowledge that all other data that a Party gathers or develops independent of this Agreement shall not be covered by this Agreement,
provided that Neoforma shall not solicit any information from a Member without fully disclosing to the Member all intended uses for which such information is being collected and will be used. 

  

	 	10.9	Neoforma Information. Notwithstanding anything herein to the contrary, Neoforma may use the Neoforma Information in any manner that it chooses, provided that
such information does not include Member Data or Aggregated Member Data. 

  

	11.	SAFEGUARDING OF DATA; CONFIDENTIALITY 

  

	 	11.1	Novation Data. 

  

	 	11.1.1	Generally. As between Neoforma and its Affiliates, on the one hand, and Novation and its Affiliates, on the other hand, information relating to Novation, VHA or UHC or
their respective Affiliates, Members or customers, whether or not marked “confidential” and whether disclosed in tangible or in intangible (e.g., oral or visual) form, including, without limitation, (i) information regarding the
operations, affairs and business of Novation, VHA or UHC, or their respective Affiliates, Members or customers, (ii) Novation Materials and (iii) all Transaction Data, except as provided in Section 10, (collectively, the “Novation
Data”) is confidential and will be subject to Section 11.2. Novation Data is the property of Novation, VHA or UHC, or their respective Affiliates, Members or customers. Neoforma shall have access to and may make use of Novation Data to
the extent reasonably necessary to perform its obligations under this Agreement. Neoforma shall not, however, use Novation Data for any purpose other than providing Services, except as provided in Section 10. Upon termination or expiration of this
Agreement for any reason, or upon Novation’s request, Neoforma shall promptly return to Novation all of the Novation Data in Neoforma’s possession (including backup or archival copies). 

  

	 	11.1.2	 Safeguarding of Data. Neoforma shall maintain appropriate safeguards, consistent with prevailing industry standards, against the destruction, inappropriate
disclosure, wrongful access or use, loss or alteration of the Novation Data in the possession of Neoforma. In any event, Neoforma shall maintain safeguards that are no less rigorous than those maintained 

  

 34 

	 	 
by Neoforma for its own information of a similar nature and, in no event, less than a reasonable level of safeguards. 

  

	 	11.2	Confidentiality. 

  

	 	11.2.1	Confidential Information. “Confidential Information” means (i) business or technical information of any Party, including, without limitation,
information relating to a Party’s product plans, designs, costs, product prices, finances, marketing plans, business opportunities, personnel, research, development, know-how or the pricing information available to Members, (ii) any information
communicated with respect to an Opportunity, including the ideas, concepts or other intellectual property contained therein, (iii) any information designated “confidential” or “proprietary” or which, under the circumstances,
should reasonably have been understood to be confidential, (iv) Novation Data and (v) the terms and conditions of this Agreement. 

  

	 	11.2.2	Confidentiality Obligations. Each Party agrees that (i) it will not use or disclose to any other party or third person including its Affiliates any Confidential Information
disclosed to it by any other party except as contemplated by this Agreement and (ii) it will take all reasonable measures to maintain the confidentiality of all Confidential Information of each other Party in its possession or control, which will in
no event be less than the measures it uses to maintain the confidentiality of its own information of similar importance. 

  

	 	11.2.3	 Exclusions. Subsection 11.2.2 will not prevent a Party from disclosing Information that (i) is owned by such Party or its Affiliates or is already known by
the recipient Party or its Affiliates without an obligation of confidentiality other than under this Agreement, (ii) is publicly known or becomes publicly known through no unauthorized act of the recipient Party, (iii) is rightfully received from a
third party, provided that the source is not known to be bound by a confidentiality agreement or (iv) is independently developed by employees of a Party or an Affiliate of a Party without use of the other Party’s Confidential
Information. If Confidential Information is required to be disclosed pursuant to a requirement of a governmental authority, such Confidential Information may be disclosed pursuant to such requirement so long as the Party required to disclose the
Confidential Information, to the extent possible, (i) provides the Party that owns the Confidential Information with timely prior notice of such requirement and coordinates with such other Party in an effort to limit the nature and scope of such
required disclosure and (ii) uses commercially reasonable efforts to ensure that, within applicable law, such Confidential Information will not be further disclosed. If Confidential Information is required to be disclosed in connection with the
conduct of any arbitration 

  

 35 

	 	 
proceeding conducted pursuant to Section 18, such Confidential Information may be disclosed pursuant to and in accordance with the approval and at the
direction of the arbitrator conducting such proceeding. Upon written request at the termination or expiration of this Agreement for any reason, all such Confidential Information in tangible form (and all copies thereof) owned by the requesting Party
or its Affiliates will be returned to the requesting Party or at the requesting Party’s option will be destroyed, with written certification thereof being given to the requesting Party, and subject to any rights expressly granted to the other
Party under this Agreement, the other Party shall cease all further use of any Confidential Information, whether tangible or intangible. 

  

	 	11.2.4	No License. Nothing contained in this Section 11.2 will be construed as obligating a Party to disclose its Confidential Information to another party, or as granting to or
conferring on a Party, expressly or implied, any patent, copyright, trademark, trade name, trade secret or other Intellectual Property Rights or any license to the Confidential Information of the other Party. 

  

	 	11.2.5	Loss of Confidential Information. In the event of any breach by the recipient Party of this Section 11.2 that results in a disclosure or loss of, or inability to account for,
any Confidential Information of the furnishing Party, the receiving Party shall promptly, at its own expense, (i) notify the furnishing Party in writing, (ii) take such commercially reasonable actions as may be necessary or reasonably requested by
the furnishing Party to minimize the breach, and (iii) cooperate in all reasonable respects with the furnishing Party to minimize the breach and any damage resulting therefrom. 

  

	12.	REPRESENTATIONS AND WARRANTIES 

  

	 	12.1	Representations by Neoforma. Neoforma represents and warrants to Novation, VHA, UHC and HPPI that each of the following statements in this Section 12.1 are true and correct
as of March 30, 2000. 

  

	 	12.1.1	Due Organization. Neoforma is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. 

  

	 	12.1.2	Authority; Non-Contravention. 

  

	 	(a)	 Neoforma has all requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and delivery of this
Agreement and the consummation of the transactions contemplated hereby have been duly authorized by 

  

 36 

	 	 
all necessary corporate action on the part of Neoforma. This Agreement has been duly executed and delivered by Neoforma, and it constitutes the valid and
binding obligation of Neoforma, enforceable against Neoforma in accordance with its terms, except as enforceability may be limited by bankruptcy and other similar laws affecting the rights of creditors generally and general principles of equity.

  

	 	(b)	The execution and delivery of this Agreement by Neoforma does not, and the performance of this Agreement by Neoforma will not, (i) conflict with or violate the Certificate of
Incorporation or Bylaws of Neoforma, (ii) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Neoforma or by which Neoforma or any of its properties is bound or affected or (iii) result in any breach of or
constitute a default (or an event that with notice or lapse of time or both would become a default) under, or impair Neoforma’s rights or alter the rights or obligations of any third party under, or give to others any rights of termination,
amendment, acceleration or cancellation of, or result in the creation of an encumbrance on any of the properties or assets of Neoforma pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise or other instrument
or obligation to which Neoforma is a party or by which Neoforma or its assets is bound or affected, except, in the case of clauses (ii) and (iii), for such conflicts, violations, breaches, defaults, impairments, or rights which, individually or in
the aggregate, would not have a material adverse effect on Neoforma. 

  

	 	(c)	No consent, approval, order or authorization of, or registration, declaration or filing with any governmental entity is required to be obtained or made by Neoforma in connection
with the execution, delivery and performance of this Agreement. 

  

	 	12.1.3	Performance. All Services will be performed in a professional and workmanlike manner, consistent with the high professional standards and practices prevailing in the Internet
e-commerce services industry. 

  

	 	12.2	Representations by Novation, VHA, UHC and HPPI. Each of Novation, VHA, UHC and HPPI, severally and not jointly, represents and warrants to Neoforma that the following
statements made by it in this Section 12.2 are true and correct as of the Effective Date of this Agreement. 

  

	 	12.2.1	 Due Organization. Novation is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware; UHC
is a corporation duly organized, validly existing 

  

 37 

	 	 
and in good standing under the laws of the State of Illinois; VHA is a corporation duly organized, validly existing and in good standing under the laws of
the State of Delaware; HPPI is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware. 

  

	 	12.2.2	Authority; Non-Contravention. 

  

	 	(a)	Each of Novation and HPPI has all requisite limited liability company power and authority, and each of VHA and UHC has all requisite corporate power and authority, to enter into
this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary limited liability company action on the
parts of Novation and HPPI and all necessary corporate action on the parts of VHA and UHC. This Agreement has been duly executed and delivered by Novation, VHA, UHC and HPPI, and it constitutes the valid and binding obligation of each of Novation,
VHA, UHC and HPPI, enforceable against each of Novation, VHA, UHC and HPPI in accordance with its terms, except as enforceability may be limited by bankruptcy and other similar laws affecting the rights of creditors generally and general principles
of equity. 

  

	 	(b)	 The execution and delivery of this Agreement by Novation, VHA, UHC and HPPI does not, and the performance of this Agreement by each of Novation, VHA, UHC and HPPI
will not, (i) conflict with or violate the limited liability company and corporate organizational documents, respectively, (ii) conflict with or violate any law, rule, regulation, order, judgment or decree applicable to Novation, VHA, UHC or HPPI or
by which Novation, VHA, UHC or HPPI, or any of their respective properties are bound or affected, or (iii) result in any breach of or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or
impair Novation’s, VHA’s, UHC’s or HPPI’s rights or alter the rights or obligations of any third party under, or give to others any rights of termination, amendment, acceleration or cancellation of, or result in the creation of
an encumbrance on any of the properties or assets of Novation, VHA, UHC or HPPI pursuant to, any note, bond, mortgage, indenture, agreement, lease, license, permit, franchise or other instrument or obligation to which Novation, VHA, UHC or HPPI is a
party or by which Novation, VHA, UHC or HPPI, or any of their assets, is bound or affected, except, in the case of clauses (ii) and (iii), for such conflicts, violations, breaches, defaults, impairments, or rights 

  

 38 

	 	 
which, individually or in the aggregate, would not have a material adverse effect on Novation, VHA, UHC and HPPI, respectively. 

 

	 	(c)	No consent, approval, order or authorization of, or registration, declaration or filing with any governmental entity is required to be obtained or made by Novation, VHA, UHC or HPPI
in connection with the execution, delivery and performance of this Agreement. 

  

	 	12.3	Warranty Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, EACH PARTY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED
WARRANTIES OF NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. 

  

	13.	USE OF SUBCONTRACTORS 

  

	 	13.1	Generally. Neoforma may subcontract its obligations under this Agreement subject to the limitations imposed by this Section 13.1. Neoforma shall not subcontract any of the
following without the prior written consent of Novation, such consent not to be unreasonably withheld: 

  

	 	(i)	any Services involving any contact or interface with Members, including, without limitation, sales efforts, implementation and integration and call center services; or

  

	 	(ii)	any Services to a Novation Competitor. 

  

	 	13.2	Novation’s Right to Revoke Approval. Novation shall have the right during the Term to revoke its prior approval of a subcontractor and direct Neoforma to replace such
subcontractor as soon as possible if the subcontractor’s performance is materially deficient, good faith doubts exist concerning the subcontractor’s ability to render future performance because of changes in the subcontractor’s
ownership, management, financial condition, or otherwise, or there have been material misrepresentations by or concerning the subcontractor. 

  

	 	13.3	Continuing Responsibility. Neoforma shall remain responsible for obligations performed by subcontractors to the same extent as if such obligations were performed by
Neoforma’s employees. Neoforma shall be Novation’s sole point of contact regarding the Services, including with respect to payment. 

  

	 	13.4	Confidential Information. Neoforma shall not disclose Confidential Information of any of Novation, VHA, UHC or HPPI to a subcontractor unless and until such subcontractor has
agreed in writing to protect the confidentiality of such Confidential Information as required of Neoforma under this Agreement. 

  

 39 

	14.	INSURANCE 

  

	 	14.1	Insurance. Each of Neoforma and Novation shall determine the types and amounts of insurance coverage it requires in connection with this Agreement, including, without
limitation, general public liability, property damage and workers compensation insurance. Neither Neoforma nor Novation is required to obtain insurance for the benefit of the other, including, without limitation, business interruption insurance.
Each of Neoforma and Novation will pay all costs and receive all benefits under policies arranged by it, and each waives rights of subrogation it may otherwise have regarding the other’s insurance policies. 

  

	 	14.2	Proof of Insurance. When requested by Neoforma or Novation, an insurance certificate indicating the coverage described in Section 14.1, issued by an insurance company
licensed to do business in the relevant state or states and signed by an authorized agent, shall be furnished by the insured Party to the requesting Party. Each of Neoforma and Novation shall provide the other with at least 30 days prior written
notice of any cancellation or material modification of such insurance.  

  

	15.	INDEMNITY 

  

	 	15.1	 Neoforma Indemnity. Subject to Section 15.4, Neoforma shall indemnify, defend and hold harmless each of Novation, VHA, UHC and HPPI and each of their
Affiliates, officers, directors, employees, consultants and agents from and against any and all damages, liabilities, claims, actions, suits, proceedings, costs, charges and expenses, including reasonable attorneys’ fees (collectively,
“Losses”), incurred or sustained by any of such persons as a result of or from any third-party claim relating to (i) any claims based on Neoforma’s confidentiality obligations contained in Section 11 or its warranties
contained in Section 12; (ii) the failure of Neoforma to perform any of its obligations under any agreement between Neoforma and a third party (including, without limitation, any agreements between Neoforma and a Supplier); (iii) any claims arising
out of Neoforma’s breach of this Agreement; (iv) any claim arising out of the death of or bodily injury to any employee of any of Novation, VHA, UHC and HPPI and each of their Affiliates (or their respective subcontractors) to the extent caused
by the negligence or willful misconduct of Neoforma or its Affiliates; (v) the loss of or damage to the real or tangible personal property (whether owned or leased) of each of Novation, VHA, UHC and HPPI and each of their Affiliates, officers,
directors, employees, consultants and agents to the extent caused by the negligence or willful misconduct of Neoforma or its Affiliates; (vi) any third-party claim that arises in connection with the use by any of Novation, VHA, UHC and HPPI and each
of their Affiliates of any deliverables or services provided by Neoforma to any of Novation, VHA, UHC and HPPI and each of their Affiliates under this Agreement, except to the extent covered by Novation’s indemnities set forth in Section 15.2;
(vii) Neoforma’s failure to pay and discharge any taxes 

  

 40 

	 	 
(including interest and penalties) for which Neoforma is responsible pursuant to the terms of this Agreement; (viii) any claim asserted against any of
Novation, VHA, UHC and HPPI and each of their Affiliates by an employee of Neoforma to the extent such claim arises from decisions, acts, omissions or violations of statute by Neoforma with respect to such employee’s employee/employer
relationship with Neoforma and (ix) any claims arising out of a violation by Neoforma of data rights that Novation and Suppliers have agreed upon in accordance with Section 2.2.1 (other than Infringement Claims, which are subject to Section 15.3).

  

	 	15.2	Novation Indemnity. Subject to Section 15.4, Novation shall indemnify, defend and hold harmless each of Neoforma and its Affiliates, officers, directors, employees,
consultants and agents from and against any and all Losses awarded against or paid in settlement by Neoforma, incurred or sustained by any of such persons as a result of or from any third-party claim relating to (i) any claims based on
Novation’s confidentiality obligations contained in Section 11 or its warranties contained in Section 12; (ii) the failure of Novation to perform any of its obligations under any agreement between Novation and a third party; (iii) any claims
arising out of Novation’s breach of this Agreement; (iv) any claim arising out of the death of or bodily injury to any employee of Neoforma or its Affiliates (or their respective subcontractors) to the extent caused by the negligence or willful
misconduct of Novation or its Affiliates; (v) the loss of or damage to the real or tangible personal property (whether owned or leased) of Neoforma and its Affiliates, officers, directors, employees, consultants and agents to the extent caused by
the negligence or willful misconduct of Novation or its Affiliates; (vi) any third-party claim that arises in connection with the use by Neoforma and its Affiliates or any deliverables or services provided by Novation to any of Neoforma or its
Affiliates under this Agreement, except to the extent covered by Neoforma’s indemnities set forth in Section 15.1; (vii) Novation’s failure to pay and discharge any taxes (including interest and penalties) for which Novation is responsible
pursuant to the terms of this Agreement; (viii) any claim asserted against Neoforma by an employee of Novation to the extent such claim arises from decisions, acts, omissions or violations of statute by Novation with respect to such employee’s
employee/employer relationship with Novation and (ix) any claims arising out of a violation by Novation of data rights that Novation and Suppliers have agreed upon in accordance with Section 2.2.1 (other than Infringement Claims, which are subject
to Section 15.3). 

  

	 	15.3	Infringement Claims. 

  

	 	15.3.1	 Each of Neoforma and Novation, at their respective expense, shall indemnify, defend and hold harmless the other Party and its Affiliates, and their respective
officers, directors, employees, consultants, agents, successors and assigns, from and against any and all Losses arising from any Services, software, hardware or the indemnitor’s Materials (“Item(s)”) provided or
delivered by the indemnitor to the indemnitee under this 

  

 41 

	 	 
Agreement, when used in conformity with all applicable written instructions and documentation, (i) infringes any patent in any country that is a signatory to
the Patent Cooperation Treaty, (ii) infringes any copyright in any country that is a signatory to the Berne Convention for the Protection of Literary and Artistic Works, or (iii) constitutes misappropriation of any trade secret in any country in
which a trade secret right exists such that it would be enforceable in the United States (each such third-party claim, action, suit or proceeding, an “Infringement Claim”). 

  

	 	15.3.2	Notwithstanding anything to the contrary herein, the indemnitor shall have no obligation to defend or indemnify the indemnitee for any Infringement Claim to the extent arising out
of or relating to modifications to any Item made by or on behalf of the indemnitee where but for such modifications there would have been no Infringement Claim. 

  

	 	15.3.3	If the indemnitee’s use of any Item is enjoined or otherwise prohibited, or if the indemnitor reasonably believes that there exists a threat of the same, the indemnitor shall
have the right, in its sole discretion and at its expense, in addition to its indemnification obligations above, to (i) obtain for the indemnitee the right to continue to use the affected Item, (ii) replace the affected Item with a non-infringing
product or service that will not degrade the performance quality of the affected component of the Services or (iii) modify the affected Item so that it becomes non-infringing. If the alternatives in (i), (ii) and (iii) are not feasible, the
indemnitor shall remove the Item from the Services and equitably adjust the charges to reflect such removal. 

  

	 	15.3.4	THIS SECTION SETS FORTH THE SOLE AND EXCLUSIVE REMEDY OF THE INDEMNITEES, AND THE ENTIRE OBLIGATION AND LIABILITY OF THE INDEMNITOR, AS TO ANY INFRINGEMENT CLAIMS IN CONNECTION
WITH ANY ACTIVITY UNDER THIS AGREEMENT. 

  

	 	15.4	 Indemnity Procedures. The Party seeking indemnification under Section 15.1 through 15.3, as the case may be (the “Indemnified
Party”), shall give prompt written notice to the other Party (the “Indemnifying Party”). In addition, the Indemnified Party shall allow the Indemnifying Party to direct the defense and settlement of any such
claim, with counsel of the Indemnifying Party’s choosing that is reasonably acceptable to the Indemnified Party, and will provide the Indemnifying Party, at the Indemnifying Party’s expense, with information and assistance that is
reasonably necessary for the defense and settlement of the claim. The Indemnified Party reserves the right to retain counsel, at the Indemnified Party’s sole expense, to participate in the defense of any such claim. The Indemnifying Party shall
not settle any such claim or alleged claim without first 

  

 42 

	 	 
obtaining the Indemnified Party’s prior written consent, which consent shall not be unreasonably withheld, if the terms of such settlement would not
adversely affect the Indemnified Party’s rights under this Agreement. 

  

	16.	LIMITATION OF LIABILITY 

  

	 	16.1	Limitations. IN NO EVENT WILL ANY PARTY BE LIABLE TO ANY OTHER PARTY FOR ANY LOST PROFITS, SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON BREACH OF
CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 

  

	 	16.2	Exceptions. The limitation set forth in Section 16.1 above will not apply to (i) Neoforma’s obligations under Section 11, Section 15.1, Section 15.3 or Section 16.3,
(ii) Novation’s obligations under Section 11, Section 15.2 or Section 15.3, (iii) Neoforma’s willful misconduct or gross negligence in the provision of Services or (iv) Neoforma’s wrongful termination or abandonment of this Agreement.

  

	 	16.3	Liquidated Damages. 

  

	 	16.3.1	 Neoforma acknowledges that proper achievement of each of the functions and responsibilities as shall be agreed upon and set forth in the Functionality Roadmap and
the completion of each functional deliverable (as shall be defined in the Functionality Roadmap) within the time frames specified pursuant to the process set forth therein (or as otherwise agreed to by Neoforma and Novation) are critical to the
business operations of Novation. In connection therewith, Neoforma agrees that if any of its functions and responsibilities or any of the functions and responsibilities with respect to any functional deliverable (as shall be described in the
Functionality Roadmap) are not properly achieved by the applicable target date (a “Failure”), such Failure shall be deemed to constitute a material breach of Neoforma’s service obligations under this Agreement. Upon such
Failure, Neoforma shall pay liquidated damages to Novation for each day past the applicable target date in which the objective is still not achieved in the amount of (i) * * provided, however, that any Failure by Neoforma to complete
any of its functions and responsibilities under the Functionality Roadmap or any functional deliverable within the time frames to be agreed upon as described in the Functionality Roadmap shall be excused if and to the extent (A) such Failure by
Neoforma resulted principally from a material failure by Novation to perform its obligations in respect of such Phase (as such obligations are set forth pursuant to the Functionality Roadmap) and (B) Neoforma used commercially reasonable efforts to
perform notwithstanding Novation’s failure to perform; provided, further, that any Failure by Neoforma pursuant to the preceding 

  

	*	Confidential treatment requested 

  

 43 

	 	 
provision shall only be excused for a number of days equal to the number of days Novation failed to perform its obligations in respect of such function,
responsibility or functional deliverable (as such obligations are set forth pursuant to the Functionality Roadmap). Notwithstanding the foregoing, Neoforma shall not be required to pay any liquidated damages under this Section 16.3.1 until the *
occurrence of Failures in any consecutive * period. Upon the occurrence of the * such Failure, Neoforma shall retroactively pay liquidated damages in respect of each Failure in such period (including the * previous Failures) in an amount equal to
the amount that would have been paid by Neoforma if each such prior Failure had not been subject to the exception in the penultimate sentence of this Subsection 16.3.1. 

  

	 	16.3.2	Neoforma acknowledges that proper achievement of the Service Levels as shall be set forth in the Service Level Specifications (including those Service Levels which will be
determined after the Effective Date) are critical to the business operations of Novation. Accordingly, in connection with any failure to meet Service Levels, Neoforma and Novation shall agree on a methodology whereby Neoforma shall pay to Novation
liquidated damages up to * of the aggregate of all Novation Marketplace Transaction Fees received by Neoforma during the calendar month that such Service Levels were not met by Neoforma. Such methodology shall be defined in the Service Level
Specifications. 

  

	 	16.3.3	The Parties agree that the damages provided in this Section 16 apply only with respect to the failures to perform described in Subsections 16.3.1 and 16.3.2. Moreover, the Parties
agree that the damages provided in this Section 16 are a reasonable estimate of the damages that would be suffered by Novation as a consequence of the failures described in Subsections 16.3.1 and 16.3.2 and do not constitute a penalty (the Parties
hereby acknowledging the inconvenience and difficulty of otherwise obtaining an adequate remedy). Notwithstanding anything to the contrary in this Agreement, the aggregate amount of liquidated damages paid by Neoforma to Novation pursuant to this
Section 16.3 (including all payments to be agreed upon and described in the Functionality Roadmap and the Service Level Specifications) shall not exceed (i) *. 

  

	17.	AUDIT RIGHTS 

  

	 	17.1	 General. Upon 10 days prior notice from Novation, Neoforma shall provide to such auditors as Novation may designate in writing, subject to the limitation
imposed by Section 17.3, access during normal business hours to Neoforma’s applicable facilities and to appropriate Neoforma management personnel and subcontractors, and to the data and records maintained by Neoforma with respect to the
Services for the purpose of (i) performing audits and inspections of 

  

	*	Confidential treatment requested 

  

 44 

	 	 
Neoforma and its businesses, (ii) to verify the integrity of Novation Materials and Neoforma Materials, (iii) to examine the systems that process, store,
support and transmit such Novation Materials, (iv) to verify user volume reports, (v) to verify the accuracy of Novation Marketplace Transaction Fees and (vi) to confirm Neoforma’s compliance with this Agreement. To the extent applicable to the
Services performed by Neoforma, the scope of such audits may include, without limitation, (i) Neoforma’s practices and procedures, (ii) the adequacy of general controls and security practices and procedures and (iii) the adequacy of disaster
recovery and back-up procedures. Subject to Section 17.6, such audits shall be conducted at Novation’s expense. 

  

	 	17.2	Frequency of Audits. Operational audits, to examine the technological aspects of Neoforma’s provision of Services, may not be conducted more than once in any 12-month
period. Financial audits, which examine Neoforma’s financial records, and other supporting records, may not be conducted more than once in any 12-month period. Novation may, at its election, conduct operational and financial audits
concurrently. 

  

	 	17.3	Auditors. For the purposes of conducting financial audits, Novation may designate any internal auditor who customarily audits contract compliance issues for Novation or any
nationally recognized accounting firm. For the purposes of conducting operational audits, Novation may designate any party to act as its auditor, subject to Neoforma’s consent, which shall not be unreasonably delayed or withheld.

  

	 	17.4	Record Retention. In order to document the Services and the Novation Marketplace Transaction Fees paid or payable by Novation under this Agreement, Neoforma shall retain its
standard records and supporting documentation for at least seven years. 

  

	 	17.5	Cooperation. Neoforma shall use commercially reasonable efforts to assist such auditors, inspectors, regulators and representatives in connection with such audits and
inspections. 

  

	 	17.6	Overcharges. If, as a result of any such audit, Novation determines that Neoforma has overcharged Novation, Novation shall notify Neoforma of the amount of such overcharge
and Neoforma shall promptly pay to Novation the amount of the overcharge, plus interest at a rate of 1.5% per month or the maximum rate permitted by law, whichever is less, calculated from the date of receipt by Neoforma of the overcharged amount
until the date of payment to Novation. If any such audit reveals an overcharge to Novation during any 12-month period exceeding 5% of all Novation Marketplace Transaction Fees in the aggregate paid by Novation during such period, Neoforma shall
reimburse Novation for the out-of-pocket costs and expenses incurred for such audit. 

  

 45 

	18.	DISPUTE RESOLUTION 

  

	 	18.1	Resolution of Disputes. Except as otherwise provided in this Section 18, any and all disputes arising out of or in connection with the execution, interpretation, performance
or nonperformance of this Agreement (each such dispute, a “Disputed Matter”) will be resolved by the procedures established in this Section 18. 

  

	 	18.2	Negotiations and Escalation. Each Party shall use commercially reasonable efforts expeditiously to resolve any Disputed Matter which arises from time to time between it and
any of the other Parties on a mutually acceptable negotiated basis. In connection therewith, any Party involved in a Disputed Matter may deliver a notice to each of the other Parties (an “Escalation Notice”) demanding an
in-person meeting of the senior level management representatives of the Parties involved (and providing, as a courtesy, notice to the Parties not involved). Any agenda, location or procedures for such discussions or negotiations may be established
by the Parties to the Disputed Matter, but such Parties shall, in any event, meet within 10 days after the delivery of the Escalation Notice. The Parties to a Disputed Matter may, if they mutually so desire, retain a mutually agreed upon mediator to
assist in resolution of the Disputed Matter, but (i) all statements and opinions of such mediator shall be only advisory and shall be inadmissible in any subsequent proceedings between the Parties concerning the Disputed Matter, (ii) the Parties
thereto shall bear the costs of any such mediation equally (but each party to the mediation shall be responsible for its own expenses) and (iii) mediation is not a prerequisite to arbitration. If the Parties to the Disputed Matter are unable to
resolve it by the earlier of (i) 30 days after the delivery of the Escalation Notice or (ii) the conclusion of the meeting held pursuant to the applicable Escalation Notice, then any Party thereto may institute arbitration, as provided below,
concerning the Disputed Matter. 

  

	 	18.3	Appointment of Arbitral Body. Except as provided in Section 18.11, any Disputed Matters not resolved pursuant to Section 18.2 or otherwise settled between the Parties will be
finally resolved solely by arbitration, by a single arbitrator appointed in accordance with the rules and procedures (the “Rules”) of the American Arbitration Association, or if the American Arbitration Association is no
longer conducting such arbitrations, a successor organization thereto or such other private arbitration service as the Parties shall mutually agree (the actual authority involved, the “Arbitral Body”). Except as set forth
below in Sections 18.10 and 18.11, the Parties renounce all recourse to litigation to resolve Disputed Matters and agree that the Award of the arbitrator will be final and subject to no judicial review. 

  

	 	18.4	 Qualifications of Arbitrator. The arbitrator shall be selected pursuant to the rules and procedures of the Arbitral Body, but shall be (i) impartial and will
not have been employed by or affiliated with any of the Parties or any of their respective 

  

 46 

	 	 
Affiliates, (ii) experienced in commercial dispute resolution and (iii) familiar with commercial business practices in the medical supplies procurement
business or the business involved in the Disputed Matter. If the Arbitral Body is unable to provide an arbitrator with the qualifications set forth in this Section 18.4, the Arbitral Body will consult with the Parties and consider their
recommendations for the arbitrator. 

  

	 	18.5	Initiation of Arbitration and Procedures. After the expiration of the 30-day period referred to in Section 18.2, arbitration procedures may be initiated concerning a Disputed
Matter by any of the Parties thereto by giving written notice to the other Parties thereto and in compliance with any of the applicable Rules. If not specified by the Rules, such notice shall be given to the Parties to the Disputed Matter in the
manner provided generally for notices in this Agreement. Any notice will specify in reasonable detail the dispute being submitted to arbitration and comply with all other Rules concerning commencement of arbitration. 

  

	 	18.6	Procedures. The arbitrator will conduct the proceedings, including arguments and briefs, in accordance with the Rules; provided that the provisions of this
Section 18 will prevail in the event of any conflict between the Rules and its provisions. Within five days after his or her appointment, the arbitrator shall contact the Parties to the Disputed Matter and arrange an initial conference with them, to
be conducted within 30 days after his or her appointment, at which conference (the “Hearing Conference”) the arbitrator and the Parties will establish procedures (based on a brief written plan submitted in letter form by each
Party to the Disputed Matter in advance of such Hearing Conference concerning expected measures to prepare for hearing on the merits) and a schedule for the resolution of the Disputed Matter by hearing on the merits in a timely and efficient manner,
giving due consideration to the nature and extent of the Disputed Matter, the apparent complexity of preparations for, and complexity of, hearing on its merits and other factors (such as third-party litigation pending against one of the Parties on
the same subject-matter as raised in the Disputed Matter). In the event of a dispute concerning such procedures at the Hearing Conference, the arbitrator shall have the power to impose the schedule upon the Parties to the Disputed Matter, giving due
consideration to resolution of the Disputed Matter by a full and fair hearing on the merits. The arbitrator shall include in procedures established at the Hearing Conference provisions which permit the Parties to engage in reasonable, limited
discovery in preparation for hearing on the merits and which protect and preserve privileges and shield confidential proprietary information from disclosure. The hearing on the merits will be held within 60 days after the Hearing Conference, and
evidentiary matters at such hearing will be determined in accordance with the Federal Rules of Evidence as applied at the place of arbitration. 

  

	 	18.7	 Governing Law; Jurisdiction. The arbitrator will decide the issues submitted in accordance with the provisions and commercial purposes of this Agreement,

  

 47 

	 	 
provided that all substantive questions of law will be determined under the laws of the State of New York. The Parties consent to venue in the
State in which the principal place of business of the Party initiating arbitration regarding a Disputed Matter is located. 

  

	 	18.8	Arbitration Award. All decisions of the arbitrator will be in writing and submitted to the Parties, and the decision after hearing on the merits which announces resolution of
the Disputed Matter (the “Award”) shall, in addition, set forth findings of fact and conclusions of law to support the arbitrator’s resolution of the merits of the Disputed Matter. The arbitrator will issue the Award
within 30 days after completion of the hearing on the merits. 

  

	 	18.9	Cooperation of the Parties. The Parties to the Disputed Matter will facilitate the arbitration by (i) making available to one another and to the arbitrator for examination,
inspection and extraction all documents, books, records and personnel under their control if determined by the arbitrator to be relevant to the dispute, (ii) conducting arbitration hearings to the greatest extent possible on successive days and
(iii) observing strictly the time periods and procedures established by the Rules or by the arbitrator for submission of evidence or briefs, conduct of the hearing on the merits and preparations therefor. 

  

	 	18.10	Costs. All costs of the arbitration shall initially be borne equally by the Parties thereto as incurred, but upon completion of the arbitration, the arbitrator shall award to
the prevailing Party, as determined by the arbitrator in accordance with principles of New York law for determining prevailing Parties in litigation, all reasonable costs, fees and expenses related to the arbitration, including reasonable fees and
expenses of attorneys, accountants and other professionals or experts incurred by the prevailing Party. 

  

	 	18.11	Judgment on the Award; Enforcement. Judgment on the Award may be entered in any court having jurisdiction and procedures therefor. Each Party agrees that any Award of an
arbitrator against it and on which judgment is entered may be executed against the assets of any Party which is a judgment debtor or otherwise enforced in any jurisdiction pursuant to the procedures in and protections of such jurisdiction which are
generally applicable to enforcement of judgments, including provision in such jurisdiction for the enforcement of equitable remedies provided in the Award. 

  

	 	18.12	 Preservation of Equitable Relief; Third-Party Litigation. Notwithstanding any provision of this Section 18 to the contrary, any Party will be entitled (i) to
seek a temporary restraining order or injunctive or other equitable relief in any court of competent jurisdiction with respect to a breach (or attempted or threatened breach) of this Agreement by any Party (including, without limitation, the matters
referred to in Subsection 9.9.5) or (ii) to institute litigation or other formal proceedings to the extent necessary (A) to enforce the award of the arbitrator, (B) 

  

 48 

	 	 
to avoid the expiration of any applicable limitations period or (C) to preserve a superior position with respect to other creditors. Nothing in this Section
18 shall prevent Parties who become involved in a Disputed Matter and who have become Parties to litigation instituted by a third party concerning facts involved in such Disputed Matter from resolving disputes between them arising in connection with
such Disputed Matter through such litigation in lieu of arbitration under this Section 18. 

  

	 	18.13	Continued Performance. Each Party agrees to continue performing its obligations under this Agreement during the pendency of any dispute resolution process conducted in
accordance with this Section 18. 

  

	19.	GUARANTY OF PERFORMANCE 

  

	 	19.1	VHA and UHC Guarantees. Subject to Section 19.4, VHA and UHC agree, severally but not jointly, that they will be responsible for the obligations and liabilities of Novation
under this Agreement, as follows: 

  

	 	(i)	to the extent that any such obligation or liability relates primarily to any action or omission by UHC or an UHC Member, UHC shall be responsible; 

  

	 	(ii)	to the extent that any such obligation or liability relates primarily to any action or omission by VHA or a VHA Member, VHA shall be responsible; and 

  

	 	(iii)	to the extent that the allocations set forth in (i) and (ii) are not applicable, VHA and UHC shall be responsible in accordance with the side letter agreement between VHA and UHC.

  

	 	19.2	VHA and UHC Waivers. Each of VHA and UHC hereby waives the following with regard to its guaranty obligations under this Section 19: 

  

	 	(i)	any right to require Neoforma to pursue any other remedy in Neoforma’s power whatsoever, other than Neoforma proceeding exclusively against VHA or UHC with respect to a
liability described in Section 19.1 (iii) 

  

	 	(ii)	any defense resulting from the absence, impairment or loss of any right of reimbursement, subrogation or contribution of VHA or UHC against Neoforma, or against one another;

  

	 	(iii)	any defense of discharge, relief or stay of the principal’s obligations hereunder based upon a filing of or against Novation under the U.S. Bankruptcy Code or Novation’s
request for any relief of its obligations under this Agreement based on laws for the relief of debtors generally; 

  

 49 

	 	(iv)	any right to be informed by Neoforma of the financial or other condition of Novation or of VHA or UHC or any change therein or any other circumstances bearing upon the risk of
nonperformance by Novation; and 

  

	 	(v)	any defense of exoneration or release based on amendment of this Agreement. 

  

Each of VHA and UHC agrees that its guarantee, as set forth in Section 19.1, constitutes a guarantee of payment when due and not of collection.

  

	 	19.3	Scope of Liability. Neither VHA’s nor UHC’s obligations and liabilities under this Agreement shall be subject to any set-off, reduction, limitation, impairment or
termination for any reason, including, without limitation, compromise, and shall not be subject to any defense or termination whatsoever by reason of the invalidity, illegality or unenforceability of any of its obligations and liabilities under this
Agreement; excluding, however, any defenses based upon Neoforma’s failure to perform any of its obligations under this Agreement. 

  

	 	19.4	Continued Performance by Neoforma. 

  

	 	19.4.1	 In the event that the Operating Agreement, dated October 21, 1997, as amended from time to time, between VHA and UHC is terminated (and not replaced by any
successor document) (the “Novation Dissolution”), Neoforma agrees that it shall continue to perform its obligations under this Agreement for a period of no less than * following the date of such termination (and any
additional Termination Assistance Period required by this Agreement). Additionally, during such * period, Neoforma shall offer to enter into separate agreements with each of VHA and UHC upon substantially similar terms and conditions and pursuant to
which Neoforma will provide services substantially similar to the Services provided hereunder at the time of such termination and create separate proprietary marketplaces for each of VHA and UHC. The price for the aggregate services to be rendered
under the new separate agreements shall be substantially similar to the price paid by Novation hereunder at the time of such termination; provided, however, that with respect to each of the separate agreements, (i) VHA and UHC (in
their separate agreements) will provide services substantially similar to those being provided by Novation hereunder (or, if either VHA or UHC elects not to provide such services, Neoforma and the Party so electing will negotiate in good faith to
adjust the cost of the services to be provided by Neoforma to such Party), and (ii) Neoforma may charge VHA or UHC, as applicable, incremental costs associated with the transition of services provided by Neoforma from the Novation Marketplace to the
separate marketplaces, including, without 

  

	*	Confidential treatment requested 

  

 50 

	 	 
limitation, incremental costs relating to establishing a separate “look and feel” to the proprietary marketplaces and creating separate
marketplaces. 

  

	 	19.4.2	Notwithstanding the foregoing, neither VHA nor UHC shall be obligated to enter into an agreement with Neoforma as described in Subsection 19.4.1. In the event that either VHA or UHC
elects not to enter into such an agreement with Neoforma, then that Party’s obligations to Neoforma shall be limited to its guarantee under Section 19.1 hereunder. 

  

	20.	GENERAL PROVISIONS 

  

	 	20.1	No Waiver. The delay or omission by any Party to exercise or enforce any right or power of any provision of this Agreement shall not be construed as a waiver or
relinquishment to any extent of such Party’s right to assert or rely upon any such provision or right in that or any other instance. A waiver by any Party of any of the covenants to be performed by any other or any breach thereof shall not be
construed to be a waiver of any succeeding breach thereof or of any other covenant herein contained. 

  

	 	20.2	Entire Agreement. This Agreement, the Exhibits attached hereto, and all other agreements contemplated by this Agreement to be agreed upon by the Parties pursuant to the terms
of this Agreement (the “Contemplated Agreements”), together constitute the complete and exclusive agreement between the Parties, and supersede any and all prior agreements of the Parties with respect to the subject matter
hereof. Except in the case of Section 8.12 (which may be amended with the approval of VHA and UHC only), this Agreement, the Exhibits attached hereto and the Contemplated Agreements may be amended or modified, or any rights under it waived, only by
a written document executed by all Parties. For the avoidance of doubt, the term “Agreement”, as used throughout this document, shall include the Contemplated Agreements. 

  

	 	20.3	Publicity. Except as required by law or provided in this Agreement, no Party will make any public statement, press release or other announcement relating to the terms of or
existence of this Agreement without the prior written approval of all other Parties. The Parties will cooperate prior to the filing of any public document which may require the filing of this Agreement as an exhibit or the filing of a description
thereof in order to preserve the confidentiality and proprietary information contained herein. 

  

	 	20.4	Covenant of Good Faith. Each Party agrees that, in its respective dealings with all other parties under or in connection with this Agreement, it shall act in good faith.

  

	 	20.5	 Compliance with Laws and Regulations. Each of Neoforma and Novation shall perform its respective obligations under this Agreement in a manner that complies

  

 51 

	 	 
with applicable law, including, without limitation, identifying and procuring required permits and approvals. 

  

	 	20.6	Assignment; Successors and Assigns. This Agreement will be binding on the Parties and their respective successors and permitted assigns. No Party may, or will have the power
to, assign this Agreement without the prior written consent of all other Parties. For the purposes of this Section 20.6, any assignment by operation of law, under an order of any court, or pursuant to any Neoforma Change of Control, plan of merger,
consolidation, reorganization, or liquidation or will be deemed an assignment for which prior consent is required, and any assignment made without such consent will be void and of no effect as between the parties. Notwithstanding the forgoing, no
assignment made in respect of or as a result of any dissolution of Novation will be deemed an assignment for which prior consent is required, and such assignment will be valid. 

  

	 	20.7	Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of New York, without regard to or application of conflicts of law
rules or principles. 

  

	 	20.8	Notices. Any notice required or permitted by this Agreement shall be in writing and shall be deemed given if sent by prepaid registered or certified United States mail,
return receipt requested, overnight mail with a nationally recognized overnight mail courier, or sent by facsimile or similar communication, and confirmed by such mail, postage prepaid, addressed to another Party at the address shown below or at
such other address for which such Party gives notice hereunder. Notices will be deemed given five business days after deposit in the U.S. Mail, two business days after deposit with an overnight mail courier, or when confirmation of receipt is
obtained if sent by facsimile or similar communication, or if by personal delivery, when received, as applicable: 

  

 52 

	 If to Novation:
  
 Novation, LLC
 125 East John Carpenter Freeway
 Irving, Texas 75062
 Facsimile: (972) 581-5778
 Attn: General Counsel
	 	 With a copy to:
  
 Baker Botts L.L.P.
 2001 Ross Avenue
 Dallas, Texas 75201-2980
 Facsimile: (214) 953-6503
 Attn: Sarah M. Rechter, Esq.

		
	 If to VHA:
  
 VHA, Inc.
 220 East Las Colinas Boulevard
 Irving, Texas 75039-5500
 Facsimile: (972) 830-0391
 Attn: Chief Financial Officer
	 	 With a copy to:
  
 Skadden, Arps, Slate, Meagher & Flom LLP
 1440 New York Avenue, N.W.
 Washington, DC 20005
 Facsimile: (202) 393-3760
 Attn: C. Kevin Barnette, Esq.

		
	 If to UHC:
  
 University Health System Consortium
 2001 Spring Road, Suite 700
 Oak Brook, Illinois 60523
 Facsimile: (630) 954-4730
 Attn: General Counsel
	 	 With a copy to:
  
 McDermott, Will & Emery
 227 West Monroe Street
 Chicago, Illinois 60606
 Facsimile: (312) 984-7700
 Attn: Virginia H. Holden, Esq.

		
	 If to Neoforma:
  
 Neoforma, Inc.
 3061 Zanker Road
 San Jose, California 95134
 Facsimile: (408) 468-4000
 Attn: General Counsel
	 	 With a copy to:
  
 Fenwick & West LLP
 Silicon Valley Center
 801 California Street
 Mountain View, CA 94041
 Facsimile: (650) 938-5200
  
 Attn: Gordon K. Davidson, Esq.
           Ralph M. Pais, Esq.

  

	 	20.9	No Agency. The Parties are independent contractors and will have no power or authority to assume or create any obligation or responsibility on behalf of each other, except as
expressly provided herein. This Agreement will not be construed to create or imply any partnership, agency or joint venture. 

  

	 	20.10	Force Majeure. 

  

	 	20.10.1	 Subject to 20.10.2, no Party shall be liable for any default or delay in the performance of its obligations under this Agreement if and to the extent such default
or delay is caused, directly or indirectly, by: flood, earthquake, elements of nature or acts of God, riots, civil disorders, 

  

 53 

	 	 
rebellions or revolutions in any country, or any other cause beyond the reasonable control of such Party, provided that (i) the non-performing
Party is without fault in failing to prevent or causing such default or delay and (ii) such default or delay cannot reasonably be circumvented by the non-performing Party through the use of alternate sources, workaround plans or other means
(including with respect to Neoforma, by Neoforma executing its disaster recovery plans). 

  

	 	20.10.2	In such event, the non-performing Party shall be excused from further performance or observance of the obligation(s) so affected for as long as such circumstances prevail and such
Party continues to use commercially reasonable efforts to recommence performance or observance whenever and to whatever extent possible without delay. With respect to Neoforma’s performance, such efforts shall be no less than the efforts used
for any other customer of Neoforma. Any Party so delayed in its performance shall immediately notify the Party to whom performance is due by telephone (to be confirmed in writing within two days after the inception of such delay) and describe at a
reasonable level of detail the circumstances causing such delay. 

  

	 	20.10.3	Notwithstanding anything in this Section 20.10 to the contrary, upon the occurrence of an event described in Subsection 20.10.1 that substantially prevents, hinders or delays
performance of services necessary for the performance of “critical functions” of such Party for more than *, such Party to whom such affected or delayed performance is due will have the right to immediately terminate this Agreement. For
the purposes of this Subsection 20.10.3, “critical functions” means with respect to a Party, those business functions that are reasonably and in good faith determined by that Party to be essential and critical to its business operations or
the business operations of its Members. 

  

	 	20.11	Interest. Any payment under this Agreement which is not paid when due, shall accrue interest at the lower of a monthly rate of 1.5% or the highest amount allowed by law.

  

	 	20.12	Program Management. Neoforma and Novation shall meet to develop a program management plan to manage the delivery of Services hereunder. Such plan shall have features similar
to those illustrated in Exhibit F. 

  

	 	20.13	Severability. If for any reason a court of competent jurisdiction finds any provision or portion of this Agreement to be unenforceable, that provision of the Agreement will
be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full force and effect. 

  

	*	Confidential treatment requested 

  

 54 

	 	20.14	Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, but all of which, together, will constitute one and the same
instrument. 

  

	 	20.15	Headings. Section headings are included for only convenient reference and do not describe the sections to which they relate. 

  

	 	20.16	Section 365(n) Matters. Neoforma acknowledges that if Neoforma as a debtor-in-possession or a trustee in bankruptcy in a case under the U.S. Bankruptcy Code rejects this
Agreement, the Contemplated Agreements, or any agreement supplementary hereto or thereto, Novation may elect to retain its rights under this Agreement, the Contemplated Agreements, or any agreement supplementary hereto or thereto, as and to the
extent provided in Section 365(n) of the U.S. Bankruptcy Code. Upon the written request of Novation to Neoforma or the bankruptcy trustee, Neoforma or such bankruptcy trustee, as provided in Section 365(n) of the U.S. Bankruptcy Code, (i) shall
provide to Novation the intellectual property for the Services as described in this Agreement, including all third-party software and all Neoforma-owned software, and (ii) shall not interfere with the rights of Novation as provided in this Agreement
or any agreement supplementary hereto, including each Functionality Roadmap, the Service Level Specifications, or any escrow agreement that may be entered, to obtain such intellectual property from the bankruptcy trustee.

  

 55 

 IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above
written. 
  

	 NEOFORMA, INC.
	 	 	 	 NOVATION, LLC

					
	By:	 	 /s/ Robert Zollars
	 	 	 	By:	 	 /s/ Mark McKenna

	 	
	 	 	 	 	

	 Name:
 Title:
 Date:
	 	 Robert J. Zollars
 Chairman and CEO
 8/12/03
	 	 	 	 Name:
 Title:
 Date:
	 	 Mark McKenna
 President and CEO
 8/12/03

	 	 	 	 	 	 	 	 	 
	 VHA, INC.
	 	 	 	 UNIVERSITY HEALTH SYSTEM CONSORTIUM

					
	By:	 	 /s/ Curt Nonomaque
	 	 	 	By:	 	 /s/ Mark E. Mitchell

	 	
	 	 	 	 	

	 Name:
 Title:
 Date:
	 	 Curt Nonomaque
 Chief Executive Officer
 August 12, 2003
	 	 	 	 Name:
 Title:
 Date:
	 	 Mark E. Mitchell
 Chief Financial Officer
 8/12/03

	 	 	 	 	 	 	 	 	 
	HEALTHCARE PURCHASING PARTNERS INTERNATIONAL, LLC	 	 	 	 
					
	By:	 	 /s/ Eldon Petersen
	 	 	 	 	 	 
	 	
	 	 	 	 	 	 
	 Name:
 Title:
 Date:
	 	 Eldon Petersen
 President
 8/12/03
	 	 	 	 	 	 

 [SIGNATURE PAGE TO FOURTH
AMENDED AND RESTATED 
 OUTSOURCING AND OPERATING
AGREEMENT] 
  

 56 

 EXHIBIT A 
  

MARKS 
  

	1.	Novation Marks: 

  

	 	1.1	Registered Marks. 

  
 OPPORTUNITY (Stylized) (Registration No. 2009924) is registered to Novation. 
  

	 	1.2	Pending Marks. 

  
 NOVATION (Serial No. 75-421230); N and Design (Serial No. 75-602099); NOVAPLUS (Serial No. 75-525857); NOVAPLUS (Serial No. 152867 (Czech Republic)); and
NOVAPLUS and Design (Serial No. 75-603422) are pending. 
  

	 	1.3	Unregistered Marks. 

  
 None. 
  

	2.	Neoforma Marks: 

  

	 	2.1	Registered Marks. 

  
 NEOFORMA (Reg. No. 2,526,423) 
 NEOFORMA and
Design (Reg. No.. 2,714,114). 
  

	 	2.2	Pending Marks. 

  
 None. 
  

	 	2.3	Unregistered Marks. 

  
 ADSONLINE; AUCTIONLIVE; AUCTIONONLINE; CENTRAL POINT; CENTRAL POINT SERVICES; CENTRAL POINT SERVICES Logo; DEPARTMENT TOOLKIT; FACT FILES; FAST-TRACK;
MAJOR ACCOUNT NEWS; MAXEMAIL; MAXEASTCOAST.COM; MAXHEALTH.COM; MAXWESTCOAST.COM; MSA SNAPSHOTS; NEOCONNECT; NEOFORMA and Design; NEOFORMA CONTRACT MANAGEMENT SOLUTION; NEOFORMA DATA MANAGEMENT SOLUTION; NEOFORMA LIFELINE; NEOFORMA MATERIALS
MANAGEMENT SOLUTION; NEOFORMA ORDER MANAGEMENT SOLUTION; PHAROS TECHNOLOGIES; STATCITY; SUCCESS TRACKER; THE HEALTH STRATEGIST; THE HEALTHCARE BUSINESS COMMUNITY; THE MAX; U.S. LIFELINE; USL; USLIFELINE.COM; VOICE YOUR OPINION; and VYO! 

 

 57 

	3.	VHA Marks: 

  

	 	3.1	Registered Marks. 

  
 CFIS (Registration No. 1912695); COUNTDOWN USA (Registration No. 1533720); EDGEWARE (Registration No. 2294530); LAURUS (Registration No. 2254329);
Miscellaneous Design (Registration No. 2198615); PNEUMONIA PNOCKOUT (Registration No. 1820282); STAY CURRENT. STAY HEALTHY (Registration No. 2251550); STAY HEALTHY (Registration No. 1814163, 1835895); UNITED TO IMPROVE AMERICA’S HEALTH
(Registration No. 1892202); VHA (Registration No. 1227889 (U.S.A.), 500495 (Benelux), 284986 (Canada), 1676194 (France), 2904740 (Germany), 613531 (Italy), 414861 (Mexico), 104986 (Russian Federation)); VHA (Stylized) (Registration No. 1300891
(U.S.A.), 316977 (Canada)); VHA and Design (swirl logo) (Registration No. 1893301); VHA PLUS (Registration No. 1423203 and 1442669 (U.S.A.), 550496 (Benelux), 1676193 (France), 2904741 (Germany), 613530 (Italy), 413431 and 413432 (Mexico), 105521
(Russian Federation)); VHA SATELLITE NETWORK (Registration No. 1419470); VHASECURE.NET (Registration No. 2182462); VHA: THE HEART OF AMERICA’S HEALTH (Registration No. 1423204); VHA+PLUS (Registration No. 1757926); VHA+PLUS and Design
(Registration No. 1425903 and 1457123 (U.S.A.), 405620 (Mexico), 60097 (Sri Lanka), 159275 (Thailand)); VOLUNTEER HOSPITALS OF AMERICA (Registration No. 1273226 and 1310365 (U.S.A.), 298707 (Canada)) are registered to VHA. 
  

	 	3.2	Pending Marks. 

  
 SUPERRIEN (Serial No. 75-639339) is pending. 
  

	 	3.3	Unregistered Marks. 

  
 None. 
  

	4.	UHC Marks: 

  

	 	4.1	Registered Marks. 

  
 UHC (Registration No. 1809491); UHC and Design (Registration No. 1813976); UHC NEWSLINE (Registration No. 1867798); and ABC (Registration No. 2327568) are
registered to UHC. 

	 	4.2	Pending Marks. 

  
 None. 
  

	 	4.3	Unregistered Marks. 

  
 CLINICAL DATA PRODUCTS; CDP; OPERATIONAL DATA BASE; VALUE ANALYSIS PROGRAM; CLINICAL PROCESS IMPROVEMENT; CLINICAL BENCHMARKING; OPERATIONAL BENCHMARKING;
CAPITAL ASSET MANAGEMENT; MANAGEMENT AND SUPPLY SERVICES; CLINICAL PRACTICE ALERT; TECHNOLOGY ASSESSMENT; and UHC NEWS are unregistered. 
  

	5.	HPPI Marks: 

  

	 	5.1	Registered Marks. 

  
 HPPI (Registration No. 2003695) and HEALTHCARE PURCHASING PARTNERS (Registration No. 1248000) are registered to HPPI. 
  

	 	5.2	Pending Marks. 

  
 None. 
  

	 	5.3	Unregistered Marks. 

  
 None. 

 EXHIBIT B 
  

CURRENT MARKS USAGE GUIDELINES FOR NOVATION 

 Novation Logo 
  

	Novation	TM Editorial Standards Brief 

	Revised	July 1999 

  
 Many Novation staff members communicate regularly in writing with VHA and UHC members, supply partners, each other and outside audiences. Below are a few guidelines that address questions and issues that come up every
day in the course of doing business. These guidelines are designed to create consistency in the way we all refer to our company, its employees, and its products, programs and services. 
  

  
 acronyms – Avoid the use of acronyms on the first reference. It is better to spell out a title or phrase on first reference and use acronyms on second reference. It is unnecessary to put the acronym in parentheses after the full
name, like this: HealthCare Purchasing Partners International (HPPI). The reason is that if the meaning of an acronym must be explained to readers, it probably should not be used. There are some exceptions to this rule. For example, some highly
specialized acronyms have become so common in usage that the original wording has been superseded. Examples: DNA, ISDN, RAM, CD-ROM. 
  
 area codes, phone numbers – Phone numbers should appear as follows: (972) 581-5000. It is not necessary to include a “1” in front of a long-distance
number. It is assumed that people know dialing 1 is necessary. One exception to this rule is the number for Novation Member Support Services, which should appear like this: 888/7-NOVATE (766-8283). If it is necessary to refer callers to a particular
extension, this is the correct style: (972) 581-5000, ext. 5555. “X” is not an acceptable abbreviation for extension in external communications. 
  
 Authorized Distributors – These are distribution partners that have been approved as official distributors of products offered through Novation agreements.
Use Novation Authorized Distributor on first reference, Authorized Distributor on subsequent references. 
  
 Clinical Markets Programs – This is Novation’s marketing strategy that focuses on the needs of physicians and caregivers in a variety of specialties. Novation Clinical Markets Programs aggregate
best-in-class products and services according to clinical disease states or specialties, helping VHA and UHC members streamline their purchasing processes through one-stop shopping. Novation currently offers these Clinical Markets Program:

  

	 	•	Novation Anesthesia Program 

  

	 	•	Novation Cardiology Program 

  

	 	•	Novation Dialysis Program 

  

	 	•	Novation Oncology Program 

  

	 	•	Novation Orthopedic Program 

  

	 	•	Novation Respiratory Program 

  

	 	•	Novation Women’s Health Program 

 Some Clinical Markets Programs include agreement subgroups referred to as portfolios. These include: 
  

	 	•	Novation Anesthesia Pharmaceutical Portfolio (formerly the Anesthesia Pharmaceutical Standardization Program) 

  

	 	•	Novation Oncology Pharmaceutical Portfolio (formerly the Oncology Products Program) 

  

	 	•	Novation Oncology Breast Care Portfolio (launching in the second quarter of 1999) 

  

	 	•	Novation Oncology Prostate Care Portfolio (launching in 1999) 

  

	 	•	Novation Respiratory Pharmaceutical Portfolio (launching Oct. 1, 1999) 

  
 Novation may be omitted from the program or portfolio name on second and subsequent references. 
  
 In addition to these offerings, several portfolios of OPPORTUNITY (R), Novation’s Committed Program, are based on Clinical Markets
Programs. These portfolios are discussed in the OPPORTUNITY section. 
  
 Please
note that Clinical Markets is not a separate department of Novation. When writing about the people who work on a particular Clinical Markets segment, refer to them as the Novation anesthesia team, group, or unit. More casual references as the
cardiology team are acceptable on subsequent references if it is clear that you are referring to the Novation Clinical Markets group. 
  
 Company name, job titles – include your company name and job title, as well as the company names and correct titles of any other people mentioned in a
document. Titles are not capitalized unless they preceded the person’s name, and then only if the title is of significant rank. Some examples: 
  

	 	•	Gov. George W. Bush 

  

	 	•	George W. Bush, governor of Texas 

  

	 	•	U.S. Sen. Patrick Moynihan 

  

	 	•	Kay Bailey Hutchison, U.S. senator from Texas 

  

	 	•	C. Thomas Smith, VHA president and chief executive officer 

  

	 	•	UHC President and Chief Executive Officer Robert J. Baker 

  

	 	•	Novation product manager John Doe 

  

	 	•	Jane Doe, Novation marketing analyst 

  
 Also include the titles and company names of people who are “cc-ed” at the bottom of a business letter or memo. This is very important because correspondence is
often sent to VHA and UHC members, supply partners and people at our parent organizations who may not know who you or others mentioned are. 
  
 Please don’t guess at anyone’s name or title; call and ask if you are uncertain. Getting someone’s name or title wrong implies a lack of courtesy and
attention to detail. 

 e-mail addresses – In communications pieces where you list a Novation contact person, you should include that
person’s phone number and e-mail address. The correct style for e-mail addresses is jdoe@novationco.com (in italics). 
  
 HealthCare Purchasing Partners International LLC – This is the full name of HPPI, Novation’s sister company. Like Novation, HPPI is jointly owned by VHA
and UHC. HealthCare Purchasing Partners International should be used on first reference. HPPI is acceptable in subsequent references. HPPI has no members, it has clients. 
  
 hospital, health care organization – All hospitals are health care organizations, but not all health care organizations are
hospitals. Therefore, unless referring specifically to hospitals, health care organization is the preferred term. For variety’s sake, words such as facility and institution are acceptable on subsequent references. Don’t use the acronym HCO
in any outside communication. 
  
 Internet sites – Novation’s
World Wide Web site is www.novationco.com. This and all other Web sites should appear in all-lower-case, italic letters. 
  
 launch – The date that an agreement or program becomes effective is the launch date. Please don’t use the term launch when you mean introduce, unveil,
announce, etc. For example, a program can be introduced March 1, but may not launch until May 1, when the program agreements become effective. 
  
 letters and memos – Memorandums are acceptable in some external business communications, but interoffice memos are not. Appropriate business letters should be
used for more formal communications. In both documents, include the correct names, organization names, company names (if applicable) and titles of the recipients, sender and those who receive copies. 
  
 members, clients and customers – Novation has no members or customers. It serves
VHA and UHC members and HealthCare Purchasing Partners International clients. When addressing or mentioning VHA and UHV organizations, use VHA and UHC members the first time and members thereafter. Never use Novation members or Novation customers.
The term health care organizations is also acceptable. 
  
 NOVAPLUS TM
– The name of Novation’s private-label program. When writing about NOVAPLUS, it should be described as the private label of VHA and UHC early in the document. This description helps reinforce the link between NOVAPLUS and Novation’s
parent alliances. Companies that supply products in the private label are called NOVAPLUS manufacturing partners. 
  
 Here are some guidelines for using the NOVAPLUS name and logo in marketing materials and correspondence. 
  

	 	•	Capitalize all letters and include a trademark symbol (TM) immediately after the name on first reference in every document. The trademark symbol should be omitted on second and
subsequent references. 

	 	•	In overheads, slides, charts or other presentation materials, use the trademark symbol after NOVAPLUS on first reference in every slide or chart. 

  

	 	•	Do no use the NOVAPLUS logo within text as a substitute for the name. 

  

	 	•	All marketing materials developed by NOVAPLUS manufacturing partners must be reviewed by the appropriate Novation product managers, and by Novation marketing communications.

  
 NOVAPLUS marketing materials include the NOVAPLUS logo and the
tagline Your Brand and More SM. However, it is not necessary to include this tagline in the text of correspondence or marketing materials. 
  
 Novation Food Service Program – The full name of the program. Novation may be omitted on second reference. 
  
 Novation Laboratory Program – The full name of the program. Novation may be
omitted on second reference. 
  
 Novation LLC – This is the full legal
name of our company. It is not necessary to include the “LLC” except in legal documents such as contracts, program enrollment forms, etc. 
  
 Novation Member Support Services – This is the correct name of our outbound telephone service delivery group. TeleServices should no longer by used. Novation
Customer Service is part of Member Support Services and is the group that handles incoming calls from the 888/7-NOVATE line. 
  
 Novation Pharmacy Program – The full name of the program. Novation may be omitted on second reference. 
  
 Novation TM, the supply company of VHA and UHC – Our company name should appear
this way on first reference in any document going to an outside audience, complete with the trademark symbol (TM). Simply the name Novation is acceptable on subsequent references. 
  
 OPPORTUNITY (R) – This is Novation’s committed-purchasing program. The name should appear in the form shown here, with the
registered trademark symbol, on first reference in any document. The (R) should be omitted on subsequent references. 
  
 The program should be referred to on first or second reference in every document as OPPORTUNITY, Novation’s Committed Program. If using the tagline on first
reference would create an awkward sentence, it is acceptable to use it on second reference. Program is not part of the name, but the phrase OPPORTUNITY program is acceptable. 
  
 Offerings under the OPPORTUNITY umbrella are called portfolios. Nine portfolios are currently available, with more in development. The nine
existing portfolios are: 
  

	 	•	OPPORTUNITY Phase I Portfolio 

  

	 	•	OPPORTUNITY Phase II Portfolio 

	 	•	OPPORTUNITY Anesthesia Portfolio 

  

	 	•	OPPORTUNITY International Cardiology Portfolio 

  

	 	•	OPPORTUNITY Food Service Portfolio 

  

	 	•	OPPORTUNITY Laboratory Portfolio 

  

	 	•	OPPORTUNITY Orthopedic Portfolio 

  

	 	•	OPPORTUNITY Respiratory Portfolio 

  

	 	•	OPPORTUNITY Unified Portfolio 

  
 Please note that OPPORTUNITY is not a separate department of Novation. the program and its portfolios are jointly operated by Novation’s cost reduction services team
and the various contracting teams that develop and maintain agreements included in the portfolios. 
  
 Service Delivery – Novation field account managers should be referred to as the Service Delivery team or Service Delivery account managers. Do not refer to them as sales representatives or managers.

  
 supply cost management – Novation is a supply cost management
company. The term supply chain management is limiting and should be avoided when referring to Novation. However, supply chain is acceptable when quoting someone or referring to the system by which products move from suppliers to health care
organizations. (Please note that VHA still refers to Novation as its provider of supply chain management services.) 
  
 supply partners – The companies with which Novation enters into supply agreements are referred to as supply partners. (One exception is NOVAPLUS
manufacturers, see the NOVAPLUS entry.) We should not refer to them as vendors or business partners and should avoid referring to them as manufacturers. However, suppliers is acceptable for variety’s sake if supply partners begins to appear too
often in a particular document. 
  
 trademarks – When mentioning a
trademarked product offered by a Novation supply partner, include the appropriate TM or (R) symbol with the trademarked name on first reference. Please note that the two symbols are not interchangeable. TM identifies trade names or logos that are
being used by a company, pending final approval by the U.S. Patent and Trademark Office. (R) designates names that have been fully approved and registered with the office. 
  
 UHC Supply Co. – With the creation of Novation, UHC Supply Co. ceased to exist, as did all UHCSC agreements. Those are now
Novation agreements. To avoid confusion for members, please do not refer to UHCSC unless describing it as a predecessor to Novation. 
  
 University HealthSystem Consortium – The name of our parent UHC should appear this way on first reference in any document. One exception to this rule: When
Novation, the supply company of VHA and UHC appears first in a document, spell out University HealthSystem Consortium on the next reference to UHC. Simply the acronym UHC is acceptable on subsequent references. 
  
 VHA – Acceptable in nearly all references to VHA Inc., the majority owner of
Novation and HPPI. The Inc. is usually necessary only in legal documents. 

 If you have a question regarding proper editorial standard, please contact your Novation marketing communications manager
or Rich Reecer, Novation editorial and publications manager at ext. 5076. 

 EXHIBIT C 
  

CURRENT MARKS USAGE GUIDELINES FOR NEOFORMA 

 Neoforma, Inc.’s Trademark Guidelines 
  
 Introduction 
  
 Neoforma, Inc. values its intellectual property. Its trademarks and brands are an important asset. Neoforma requires that its trademarks be
used properly in all contexts. Please take a moment to read our Trademark Guidelines. If you have any questions about specific trademark or logo usage, or would like further information regarding these Guidelines, please contact our General Counsel.

  
 Who Must Follow These Guidelines 
  
 These Guidelines apply to Neoforma, Inc.’s employees, customers, licensees, affiliates,
consultants, and third parties. If you are a licensee or affiliate, your license or other agreement with Neoforma, Inc. may set forth different requirements regarding trademark and logo usage. If so, you are required to follow those specific
guidelines. Otherwise, if you are a licensee or affiliate who does not have a license or agreement with Neoforma, Inc. that addresses trademark and logo usage, you must follow these Guidelines. 
  
 Use of Neoforma, Inc.’s Company Name 
  
 Neoforma, Inc. is our company or trade name, and NEOFORMATM, NEOFORMA and DesignTM and NEOFORMA.COMTM are our trademarks. When you refer to us as a company, please use the incorporated designation (i.e.,
“Inc.”) with the first prominent reference and the first reference, and do not use a trademark symbol. Our company name may be abbreviated to Neoforma in subsequent references. Examples of references to Neoforma, Inc. as a
company include identifying us as the owner of the NeoformaTM website, and providing our contact information, including our address, at the end of a communication. 
  
 Use of Neoforma, Inc.’s Trademarks 
  
 You may use Neoforma, Inc.’s trademarks when you are referring to our goods or services provided that you follow these Guidelines, and ensure that such references
are truthful and not misleading. You may not use Neoforma’s name or trademarks as part of the name of your company or your company’s services or products. Such uses infringe Neoforma’s intellectual property rights and are unlawful.
Last, you may not license Neoforma’s name, trademarks or logos to other parties. 

 Proper Trademark Usage 
  

Proper use of a trademark means the trademark is followed by a trademark symbol and then a noun. 
  
 The Trademark Symbol 
  
 A trademark should always be followed by the trademark symbol TM for unregistered trademarks (or with a trademark that will be used on
materials distributed internationally), or ® for
federally registered trademarks. If the superscript,TM, or the registered trademark symbol, ®, is not available, please use (TM) or (R) instead. 
  
 If there are multiple references to the same trademark in a given document, it is sufficient to use the trademark symbol with the first prominent use of the mark, and with the next use of the mark (for example, in the title or subtitle of
the document and then the first time the mark appears in text) to provide adequate notice. You do not need to use a trademark symbol with each and every use of the trademark. If there is doubt about whether to use a trademark symbol, however, please
use one. 
  
 Also, please note that if the document or communication has a table
of contents or index in which the trademark appears, the symbol should accompany the trademark. In the case of presentation graphics, the trademark symbol should appear on each page or slide where the trademark appears. Again, if there is doubt
about whether to use a trademark symbol, please use one. 
  
 A Trademark is an Adjective 
  
 A
trademark is an adjective, designating the source or origin of the good or service it modifies. Accordingly, proper trademark usage requires that the trademark always be followed by a noun. An example of proper trademark usage is:
“Healthcare’s most important e-commerce tool is the NEOFORMATM website.” These Guidelines require that you only use Neoforma’s trademarks with the service for which they were originally intended. 
  
 Note that a trademark cannot be used as a noun. It cannot be pluralized. It cannot be used in the possessive form. Thus, for example, it is
improper to say “NEOFORMA is healthcare’s most important e-commerce tool.” 
  
 Note also that a trademark cannot be used as verb. For example, it is improper to say, “We will compile a list of syringe manufacturers by STATWORLDing.” 
  
 The Appearance of the Trademark 
  
 You may not alter Neoforma’s trademarks in any way unless you have a specific agreement
with Neoforma authorizing such alteration. You may not use corruptions, abbreviations or variations of Neoforma’s name or trademarks. You may not alter any logo or design that is a Neoforma trademark. For example, you may not change the color
of the Neoforma design, and you may not change the font style of the NEOFORMA word mark as it appears in the design trademark. 

 Attribution of Trademark Rights 
  
 Provide the following notice when using Neoforma’s trademarks: 
  
 “                     and
                     are trademarks or registered trademarks of Neoforma, Inc. in the United States and other countries.” Please use this
exact language. 
  
 Neoforma, Inc.’s Trademarks 
  
 Neoforma, Inc.’s trademarks include those on the following list, which may not be
exhaustive of our marks: 
  
 ADSONLINETM 
 AUCTIONLIVETM 
 AUCTIONONLINETM 
 CENTRAL POINTTM 
 CENTRAL POINT
SERVICESTM 
 CENTRAL POINT SERVICES LogoTM 
 DEPARTMENT TOOLKITTM 
  
 FACT FILESTM 
 FAST-TRACKTM 
 MAJOR ACCOUNT NEWSTM 
 MAXEMAILTM 
 MAXEASTCOAST.COMTM 
 MAXHEALTH.COMTM 
 MAXWESTCOAST.COMTM 
 MSA SNAPSHOTSTM 
 NEOCONNECTTM 
 NEOFORMA(R) 

NEOFORMA (and Design)(R) 
 NEOFORMA.COM (and Design)TM 
 NEOFORMA CONTRACT MANAGEMENT SOLUTIONTM 
 NEOFORMA DATA MANAGEMENT SOLUTIONTM 
 NEOFORMA LIFELINETM 
 NEOFORMA MATERIALS MANAGEMENT SOLUTIONTM 
 NEOFORMA ORDER MANAGEMENT SOLUTIONTM

 PHAROS TECHNOLOGIESTM 
 PIMSTM 
 PRODUCT INFORMATION MANAGEMENT SOLUTIONTM

 PRODUCT INFORMATION MANAGEMENT SYSTEMTM 
 STATCITYTM 

 STATWORLDTM 
 SUCCESS TRACKERTM 
 THE HEALTH STRATEGISTTM 
 THE HEALTHCARE BUSINESS COMMUNITYTM 
 THE MAXTM 
 U.S. LIFELINETM 
 USLTM 
 USLIFELINE.COMTM 
 VOICE YOUR OPINION!TM 
 VYO!TM 

 EXHIBIT D 
  

CURRENT MARKS USAGE GUIDELINES FOR VHA, UHC AND HPPI 
  
 The current Marks Usage Guidelines for VHA is attached as Appendix 1; The current Marks Usage Guidelines for UHC is attached as Appendix 2;
The current Marks Usage Guidelines for HPPI is attached as Appendix 3. 

 APPENDIX 1 
  

CURRENT MARKS USAGE GUIDELINES FOR VHA 

 VHA Logo 
  
 The VHA Identity 
  
 “Corporate Identity’ is a term that describes the particular visual elements that communicate a company’s image. It is the graphic uniform that reinforces,
with every application, the company’s presence in the marketplace. 
  
 Building strong customer recognition and understanding of our VHA identity – in its national and regional forms – depends on how effectively and consistently we use it. 
  
 Our customers will see variety in VHA’s national and regional products and services, but they should also see consistency in the VHA
identity. Our identity is a representation of the values and qualities we share, and it should be reflected in every contact we make. 
  
 Managing VHA’s corporate identity is critical to our long-term growth and success in serving VHA organizations. Adhering to the standards in this manual is an
important first step. We’ve included guidelines for a broad range of materials. If you need more information or assistance with special design needs, please call VHA’s Communications Department at (214) 830-0272. 
  
 VHA Logo 
  
 Trademark and Copyright Protection 
  
 Any appearance of VHA corporate or regional names and logos must always be accompanies by
the appropriate symbols that declare and protect their exclusive use by VHA. 
  
 Any printed materials must also be marked with a copyright notice to protect the entire contents of the piece as the sole property of VHA. 
  
 Use of (R) 
  
 The letters VHA and the VHA logo function as a trade name for our company and as a trademark identifying our products and services. The regional versions of the name and logo function in the same way for VHA Regional
Health Care Systems. 
  
 The letters VHA are registered with the U.S. Patent and
Trademark Office. The new VHA logo and the positioning phrase “united to Improve America’s Health” are currently in the process of registration. 
  

The symbol (R) constitutes notice that our name and logo are exclusive for goods and services we offer. IT provides legal protection from those who might use part of
our corporate signature without permission or use symbols that too closely resemble our mark. 

 The standard and modified versions of the corporate logo and the standard version of each regional VHA logo are currently
marketed with the symbol SM after the position phrase, indicating that we intend to claim the logos as our property. 
  
 On the reduced version of the corporate and regional logos where the positioning phrase is omitted, the SM symbol appears at the lower right corner of the logo rectangle
itself. 
  
 When registration with the U.S. Patent and Trademark Office is
complete, we will replace the SM symbol on all version with (R). 
  
 In VHA
materials, the symbol (R) should be used after the letters VHA in text when they are used as part of a product name. For example, “VHA (R) Clinical Financial Information System” or “VHA (R) New Jersey Quality Institute.”

  
 It is not appropriate to use (R) after the letters VHA in text when using them
as our company’s name. For example, “VHA announced a new product last week,” or “VHA Iowa has purchased new office space.” 
  
 In VHA materials, use the registration symbol only for VHA registered trademarks. The registered trademark of other companies should be designated by the use of an
asterisk and a footnote: 
  
 Example: 
  
 Advil* analgesic 
  
 * Registered trademark of Whitehall Laboratories 
  
 Other companies, when mentioning our products or services in their materials, should use the
registration symbol only for their own registered trademarks and an asterisk and footnote for VHA marks. 
  
 VHA registers other product and service trademarks from time to time. For more information about product naming, use of the VHA trademark and other trademark issues, please refer to the “Guide of Product
Naming” available from the Communications Department. 
  
 Copyright (c)

  
 All printed materials must be marked with the symbol (c), signifying that
the entire content is protect by copyright laws. Copyright also gives the creator of brochures, books, etc., the exclusive right to reproduce and distribute such materials, unless the creator grants limited rights to another party. 

 All corporate VHA materials must bear the following copyright notice. 
  
 (c) 1994 VHA Inc. All rights reserved. 
  
 The notice may also include one of the following statements, chosen based on the degree of
control VHA departments wish to maintain over the content. 
  
 Duplication or distribution of this document without express permission from VHA is prohibited. 
  
 Duplication or distribution of this document without express permission from VHA is prohibited, except for use of VHA health care organizations and their
personnel. 

 APPENDIX 2 
  

CURRENT MARKS USAGE GUIDELINES FOR UHC 

 UHC Logo 
  
 UHC Corporate Identity Standards 
  
 The Corporate Signature 
  
 UHC Logo 
  
 The UHC acronym and the geodesic dome, along with the UHC name and the service mark (SM) symbol, make up UHC’s corporate signature. The UHC logo is the UHC acronym
and geodesic dome. Because UHC’s corporate signature is the single most important graphic element used on UHC’s communications pieces, it should not be altered or modified in any way. The size of the UHC name should always be proportionate
to the size of the logo (see signature reproduction at left). 
  
 Signature
Color Treatments 
  
 It is preferred that the UHC logo be reproduced in one
color only – PMS 541 or black. Other one-color reproductions are acceptable, as are reversed or embossed images of the logo. All logo reproductions should be reviewed by UHC. Because of the intricate lines that make up the geodesic dome,
screens or tints of either color should not be sued. 
  
 Logo Reproduction

  
 The UHC logotype should be sized proportionally. For most reproductions,
the acceptable size range (width b height) is between 1” x 0.5” and 3” x 1.75”. (For certain applications, such as signage, a larger logo may be appropriate.) Because the intricate lines that make up the geodesic dome are often
difficult to reproduce, it is important that all logo reproductions fall within the acceptable range and that special attention be paid to the reproduction quality of the geodesic dome. 
  
 Agaramond is the only acceptable typeface for reproduction of the corporate signature on printed pieces. 
  
 If you have any questions or concerns regarding the correct usage of the UHC logo and name,
please check with Melissa Cutting of the UHC Marketing Department (630/954-1769 or cutting @uhc.edu). 

 APPENDIX 3 
  

CURRENT MARKS USAGE GUIDLINES FOR HPPI 

 HealthCare Purchasing Partners International Logo 
  
 HealthCare Purchasing Partners International TM Editorial
Standards Brief. 
 Revised March 2000 
  
 Many HPPI staff members communicate regularly in writing with clients, supply partners, each other and outside audiences. Below are a few
guidelines that address questions and issues that come up every day in the course of doing business. These guidelines are designed to create consistency in the way we all refer to our company, its employees, and its products, programs and services.

  

  
 acronyms – Avoid the use of acronyms on the first reference. It is better to spell out a title or phrase on first reference and use acronyms on second
reference. It is unnecessary to put the acronym in parentheses after the full name, like this: HealthCare Purchasing Partners International (HPPI). The reason is that if the meaning of an acronym must be explained to readers, it probably should not
be used. There are some exceptions to this rule. For example, some highly specialized acronyms have become so common in usage that the original wording has been superseded. Examples: DNA, ISDN, RAM, CD-ROM. 
  
 area codes, phone numbers – Phone numbers should appear as follows: (972)
581-5000. It is not necessary to include a “1” in front of a long-distance number. It is assumed that people know dialing 1 is necessary. One exception to this rule is the number for Novation Member Support Services, which should appear
like this: 888/7-NOVATE (766-8283). If it is necessary to refer callers to a particular extension, this is the correct style: (972) 581-5000, ext. 5555. “X” is not an acceptable abbreviation for extension in external communications.

  
 Authorized Distributors – These are distribution partners that
have been approved as official distributors of products offered through Novation agreements. Use Novation Authorized Distributor on first reference, Authorized Distributor on subsequent references. 
  
 Clinical Markets Programs – This is Novation’s marketing strategy that
focuses on the needs of physicians and caregivers in a variety of specialties. Novation Clinical Markets Programs aggregate best-in-class products and services according to clinical disease states or specialties, helping VHA and UHC members
streamline their purchasing processes through one-stop shopping. Novation currently offers these Clinical Markets Program: 
  

	 	•	Novation Anesthesia Program 

  

	 	•	Novation Cardiology Program 

  

	 	•	Novation Dialysis Program 

  

	 	•	Novation Oncology Program 

  

	 	•	Novation Orthopedic Program 

  

	 	•	Novation Respiratory Program 

  

	 	•	Novation Women’s Health Program 

 Some Clinical Markets Programs include agreement subgroups referred to as portfolios. These include: 
  

	 	•	Novation Anesthesia Pharmaceutical Portfolio (formerly the Anesthesia Pharmaceutical Standardization Program) 

  

	 	•	Novation Oncology Pharmaceutical Portfolio (formerly the Oncology Products Program) 

  

	 	•	Novation Oncology Breast Care Portfolio (launching in the second quarter of 1999) 

  

	 	•	Novation Oncology Prostate Care Portfolio (launching in 1999) 

  

	 	•	Novation Respiratory Pharmaceutical Portfolio (launching Oct. 1, 1999) 

  
 Novation may be omitted from the program or portfolio name on second and subsequent references. 
  
 In addition to these offerings, several portfolios of OPPORTUNITY (R), Novation’s Committed Program, are based on Clinical Markets
Programs. These portfolios are discussed in the OPPORTUNITY section. 
  
 Please
note that Clinical Markets is not a separate department of Novation. When writing about the people who work on a particular Clinical Markets segment, refer to them as the Novation anesthesia team, group, or unit. More casual references as the
cardiology team are acceptable on subsequent references if it is clear that you are referring to the Novation Clinical Markets group. 
  
 Company name, job titles – include your company name and job title, as well as the company names and correct titles of any other people mentioned in a
document. Titles are not capitalized unless they preceded the person’s name, and then only if the title is of significant rank. Some examples: 
  

	 	•	Gov. George W. Bush 

  

	 	•	George W. Bush, governor of Texas 

  

	 	•	U.S. Sen. Patrick Moynihan 

  

	 	•	Kay Bailey Hutchison, U.S. senator from Texas 

  

	 	•	C. Thomas Smith, VHA president and chief executive officer 

  

	 	•	UHC President and Chief Executive Officer Robert J. Baker 

  

	 	•	Novation product manager John Doe 

  

	 	•	Jane Doe, Novation marketing analyst 

  
 Also include the titles and company names of people who are “cc-ed” at the bottom of a business letter or memo. This is very important because correspondence is
often sent to VHA and UHC members, supply partners and people at our parent organizations who may not know who you or others mentioned are. 
  
 Please don’t guess at anyone’s name or title; call and ask if you are uncertain. Getting someone’s name or title wrong implies a lack of courtesy and
attention to detail. 

 e-mail addresses – In communications pieces where you list a Novation contact person, you should include that
person’s phone number and e-mail address. The correct style for e-mail addresses is jdoe@novationco.com (in italics). 
  
 HealthCare Purchasing Partners International LLC – This is the full name of HPPI. Like Novation, VHA and UHC jointly own HPPI. HealthCare Purchasing Partners
International should be used on first reference and HPPI on subsequent references. A trademark symbol (TM) will need to appear immediately after the name and an (R) after the acronym on first reference in every document. The trademark and registered
symbol should be omitted on second and subsequent references. IN overheads, slides, charts or other presentation materials, use the trademark symbol after HealthCare Purchasing Partners International and the registered symbol after HPPI on first
reference in every slide or chart. 
  
 HPPI has no members; it has clients. It is
not necessary to include the “LLC” except in legal documents such as contracts, program enrollment forms, etc. 
  
 hospital, health care organization – All hospitals are health care organizations, but not all health care organizations are hospitals. Therefore, unless
referring specifically to hospitals, health care organization is the preferred term. For variety’s sake, words such as facility and institution are acceptable on subsequent references. Don’t use the acronym HCO in any outside
communication. 
  
 Internet sites – Novation’s World Wide Web
site is www. hppipo.com. This and all other Web sites should appear in all-lower-case, italic letters. 
  
 launch – The date that an agreement or program becomes effective is the launch date. Please don’t use the term launch when you mean introduce, unveil, announce, etc. For example, a program can be
introduced March 1, but may not launch until May 1, when the program agreements become effective. 
  
 letters and memos – Memorandums are acceptable in some external business communications, but interoffice memos are not. Appropriate business letters should be used for more formal communications. In both
documents, include the correct names, organization names, company names (if applicable) and titles of the recipients, sender and those who receive copies. 
  
 members, clients and customers – Novation has no members or customers. It serves VHA and UHC members and HealthCare Purchasing Partners International clients.
When addressing or mentioning VHA and UHV organizations, use VHA and UHC members the first time and members thereafter. Never use Novation members or Novation customers. The term health care organizations is also acceptable. 
  
 NOVAPLUS TM – The name of Novation’s private-label program. When writing
about NOVAPLUS, it should be described as the private label of VHA and UHC early in the document. This description helps reinforce the link between NOVAPLUS and Novation’s parent alliances. Companies that supply products in the private label
are called NOVAPLUS manufacturing partners. 

 Here are some guidelines for using the NOVAPLUS name and logo in marketing materials and correspondence. 
  

	 	•	Capitalize all letters and include a trademark symbol (TM) immediately after the name on first reference in every document. The trademark symbol should be omitted on second and
subsequent references. 

  

	 	•	In overheads, slides, charts or other presentation materials, use the trademark symbol after NOVAPLUS on first reference in every slide or chart. 

  

	 	•	Do no use the NOVAPLUS logo within text as a substitute for the name. 

  

	 	•	All marketing materials developed by NOVAPLUS manufacturing partners must be reviewed by the appropriate Novation product managers, and by Novation marketing communications.

  
 NOVAPLUS marketing materials include the NOVAPLUS logo and the
tagline Your Brand and More SM. However, it is not necessary to include this tagline in the text of correspondence or marketing materials. 
  
 Novation Food Service Program – The full name of the program. Novation may be omitted on second reference. 
  
 Novation Laboratory Program – The full name of the program. Novation may be
omitted on second reference. 
  
 Novation LLC – This is the full legal
name of our company. It is not necessary to include the “LLC” except in legal documents such as contracts, program enrollment forms, etc. 
  
 Novation Member Support Services – This is the correct name of our outbound telephone service delivery group. TeleServices should no longer by used. Novation
Customer Service is part of Member Support Services and is the group that handles incoming calls from the 888/7-NOVATE line. 
  
 Novation Pharmacy Program – The full name of the program. Novation may be omitted on second reference. 
  
 Novation TM, the supply company of VHA and UHC – Our company name should appear
this way on first reference in any document going to an outside audience, complete with the trademark symbol (TM). Simply the name Novation is acceptable on subsequent references. 
  
 OPPORTUNITY (R) – This is Novation’s committed-purchasing program. The name should appear in the form shown here, with the
registered trademark symbol, on first reference in any document. The (R) should be omitted on subsequent references. 
  
 The program should be referred to on first or second reference in every document as OPPORTUNITY, Novation’s Committed Program. If using the tagline on first
reference would create an awkward sentence, it is acceptable to use it on second reference. Program is not part of the name, but the phrase OPPORTUNITY program is acceptable. 

 Offerings under the OPPORTUNITY umbrella are called portfolios. Nine portfolios are currently available, with more in
development. The nine existing portfolios are: 
  

	 	•	OPPORTUNITY Phase I Portfolio 

  

	 	•	OPPORTUNITY Phase II Portfolio 

  

	 	•	OPPORTUNITY Anesthesia Portfolio 

  

	 	•	OPPORTUNITY International Cardiology Portfolio 

  

	 	•	OPPORTUNITY Food Service Portfolio 

  

	 	•	OPPORTUNITY Laboratory Portfolio 

  

	 	•	OPPORTUNITY Orthopedic Portfolio 

  

	 	•	OPPORTUNITY Respiratory Portfolio 

  

	 	•	OPPORTUNITY Unified Portfolio 

  
 Please note that OPPORTUNITY is not a separate department of Novation. the program and its portfolios are jointly operated by Novation’s cost reduction services team
and the various contracting teams that develop and maintain agreements included in the portfolios. 
  
 Service Delivery – Novation field account managers should be referred to as the Service Delivery team or Service Delivery account managers. Do not refer to them as sales representatives or managers.

  
 supply cost management – Novation is a supply cost management
company. The term supply chain management is limiting and should be avoided when referring to Novation. However, supply chain is acceptable when quoting someone or referring to the system by which products move from suppliers to health care
organizations. (Please note that VHA still refers to Novation as its provider of supply chain management services.) 
  
 supply partners – The companies with which Novation enters into supply agreements are referred to as supply partners. (One exception is NOVAPLUS
manufacturers, see the NOVAPLUS entry.) We should not refer to them as vendors or business partners and should avoid referring to them as manufacturers. However, suppliers is acceptable for variety’s sake if supply partners begins to appear too
often in a particular document. 
  
 trademarks – When mentioning a
trademarked product offered by a Novation supply partner, include the appropriate TM or (R) symbol with the trademarked name on first reference. Please note that the two symbols are not interchangeable. TM identifies trade names or logos that are
being used by a company, pending final approval by the U.S. Patent and Trademark Office. (R) designates names that have been fully approved and registered with the office. 
  
 UHC Supply Co. – With the creation of Novation, UHC Supply Co. ceased to exist, as did all UHCSC agreements. Those are now
Novation agreements. To avoid confusion for members, please do not refer to UHCSC unless describing it as a predecessor to Novation. 
  
 University HealthSystem Consortium – The name of our parent UHC should appear this way on first reference in any document. One exception to this rule: When
Novation, the supply 

 
company of VHA and UHC appears first in a document, spell out University HealthSystem Consortium on the next reference to UHC. Simply the acronym UHC is
acceptable on subsequent references. 
  
 VHA – Acceptable in nearly
all references to VHA Inc., the majority owner of Novation and HPPI. The Inc. is usually necessary only in legal documents. 
  
 If you have a question regarding proper editorial standard, please contact your Novation marketing communications manager or Rich Reecer, Novation editorial and
publications manager at ext. 5076. 

 EXHIBIT E 
  

REPORTS AND OTHER INFORMATION REQUIREMENTS 
  

	1.	Report Content. 

  
 Within 20 days after the end of each full and partial month during the Term (a “Reporting Month”), each Supplier will submit to Novation a
report on a diskette containing the following information in the form specified in Section 2 of this Exhibit E: 
  

	 	(i)	the name of Supplier, the Reporting Month and year and the agreement number (as provided by Novation to Supplier); 

  

	 	(ii)	with respect to each Member (described by a LIC number (as provided by Novation to Supplier), health industry number (if applicable), full name, street address, city, state, zip
code and, if applicable, tier and committed status, the number of units sold and the amount of net sales for each Product on a line item basis, and the sum of net sales and the associated Marketing Fees for all Products purchased by such Member
directly or indirectly from Supplier during the Reporting Month, whether under the pricing and other terms of this Agreement or under the terms of any other purchasing or pricing arrangements that may exist between the Member and Supplier;

  

	 	(iii)	the sum of the net sales and the associated Marketing Fees for all Products sold to all Members during the Reporting Month; and 

  

	 	(iv)	such additional information as Novation may reasonably request from time to time. 

  

	2.	Report Format and Delivery. 

  
 The reports required by this Exhibit E will be submitted electronically in Excel Version 7 or Access Version 7 and in accordance with other specifications
established by Novation from time to time and will be delivered to: 
  
 Novation 
 220 East Las Colinas Boulevard 
 Irving, TX 75039 
 Attn: SRIS Operations 
  

	3.	Other Information Requirements. 

  
 In addition to the reporting requirements set forth above, the Parties agree to facilitate the administration of the Agreement by transmitting and
receiving information electronically and by complying with the information requirements set forth in Appendix 1. Supplier 

 
further agrees that, except to the extent of any inconsistency with the provisions of this Agreement, it will comply with all information requirements set
forth in the Novation Information Requirements Guidebook (“Guidebook”), attached as Appendix 2. On or about the Effective Date, Novation will provide Supplier with a current copy of the Guidebook and will thereafter provide Supplier
with updates and/or revisions to the Guidebook from time to time. 

 APPENDIX 1 
  

OTHER INFORMATION REQUIREMENTS 
  
 Novation and Supplier desire to facilitate contract administration transactions (“Transactions”) by electronically transmitting and receiving
data in agreed formats in substitution for conventional paper-based documents and to assure that such Transactions are not legally invalid or unenforceable as a result of the use of available electronic technologies for the mutual benefit of the
Parties. 
  
 The Parties agree as follows: 
  

	1.	PREREQUISITES. 

  
 a. Documents; Standards. Each Party will electronically communicate to or receive from the other Party all of the
required documents listed in the Novation Electronic Communication Requirements Schedule attached hereto (collectively “Documents”). All Documents will be communicated in accordance with the standards set forth in the applicable sections
of the Novation Information Requirements Guidebook (“Guidebook”). Supplier agrees that the Guidebook is the Confidential Information of Novation and will not disclose information contained therein to any other Party. 
  
 b. Third Party Service Providers.
Documents will be communicated electronically to each Party, as specified in the Guidebook, through any third party service provider (“Provider”) with which either Party may contract or VHAseCure.netTM. Either Party may modify its election to use, not use or change a Provider upon thirty
(30) days’ prior written notice. Each Party will be responsible for the costs of any Provider with which it contracts, unless the Parties otherwise mutually agree in writing. 
  
 c. Signatures. Each Party will adopt as its signature an electronic identification
consisting of symbol(s) or code(s) which are to be affixed to or contained in each Document transmitted by such Party (“Signatures”). Each Party agrees that any Signature of such Party affixed to or contained in any transmitted Document
will be sufficient to verify such Party originated and intends to be bound by such Document. Neither Party will disclose to any unauthorized person the Signatures of the other Party. 
  

	2.	TRANSMISSIONS. 

  
 a. Verification. Upon proper receipt of any Document, the receiving Party will promptly and properly transmit a
functional acknowledgment in return, unless otherwise specified in the Guidebook. 
  
 b. Acceptance. If acceptance of a Document is required by the Guidebook, any such Document which has been properly
received will not give rise to any obligation unless and until the Party initially transmitting such Document has properly received in return an Acceptance Document (as specified in the Guidebook). 

 c. Garbled Transmission. If any properly transmitted Document is
received in an unintelligible or garbled form, the receiving Party will promptly notify the originating Party (if identifiable from the received Document) in a reasonable manner. In the absence of such a notice, the originating Party’s records
of the contents of such Document will control. 
  

	3.	TRANSACTION TERMS. 

  
 a. Confidentiality. No information contained in any Document or otherwise exchanged between the Parties will be
considered confidential, except to the extent provided by written agreement between the Parties, or by applicable law. 
  
 b. Validity; Enforceability. Any Document properly transmitted pursuant to this Agreement will be considered, in
connection with any Transaction, to be a “writing” or “in writing”; and any such Document when containing, or to which there is affixed, a Signature (“Signed Documents”) will be deemed for all purposes to have been
“signed” and to constitute an “original” when printed from electronic files or records established and maintained in the normal course of business. 
  

	4.	STANDARDS. 

  
 ASC x 12 - Novation Information Requirements Guidebook 
  

	5.	THIRD PARTY SERVICE PROVIDERS. 

  
 (If the Parties will be transmitting Documents directly, insert “NONE”) 
  

	 Company

	  	 VAN Name

	  	 Address
 Number

	  	 Telephone

	 Novation
	  	 AT&T
 Bridgeton, MO 63044
	  	12976 Hollander Drive	  	800/624-5672

  

	6.	CONTRACT PRICING (PHARMACY). Supplier will transmit contract pricing information electronically, to include new contracts,
contract renewals and any changes to a current contract. This will be sent in a timely manner and in compliance with ANSI ASC X12-845 (Price Authorization) and Novation Contract Pricing Guidelines. Contract pricing information will include the
following: 

  
 Supplier Identification Number 
 HIN (Health Industry Number if Supplier is a HIN subscriber) 
 DEA Number (if HIN is not available) 
 Supplier Assigned Number (if HIN and DEA are not available)

	Supplier	Name 

 Supplier Contract Number 
 MFG Contract Number 

 Contract Effective Date 
 Contract Expiration Date 
 Member(s) (Member name, HIN or DEA number, Member start/stop dates) 
 Product Identifier 
 NDC 
 UPC (if NDC is not available) 
 Trade Name 
 Package Count 
 Package UOM 
 Selling Unit Price 
 Item Contract Effective Date 
 Item Contract Expiration Date 
  

	7.	CONTRACT PRICING (MEDICAL/SURGICAL). Supplier will communicate contract pricing information electronically, to
include new contracts, contract renewals and any changes to the current contract. This will be sent in a timely manner and in compliance with the Guidebook. 

 APPENDIX 2 
  

NOVATION INFORMATION REQUIREMENTS GUIDEBOOK 

 Executive Summary 
  
 Welcome to the Novation Information Requirements Guidebook 
  
 Thousands of times each year, VHA, UHC and HPPI members ask us to help them improve the overall quality of their health care
services by finding the best products, at the best price, from the best source. We meet this need by managing hundreds of product and service agreements with the best manufacturers and distributors in the health care industry. 
  
 Once these agreements are created, our members ask their local Novation account manager
and/or the corporate Supply Cost Management teams to provide information and service around the following: 
  

	 	1.	What products are on each agreement? 

	 	2.	What are the equivalent products under agreement for [product name that is being bought today]? 

	 	3.	What is the price for [product on agreement]? 

	 	4.	What can I save if I buy [product on agreement] rather than a competing product? 

	 	5.	What are the product specifications for the [equivalent Novation product]? 

	 	6.	Who is my local sales representative with [company name]? 

	 	7.	Can you help us convert to the [agreement product]? 

  
 Additionally, you and other supply partners ask Novation: 
  

	 	1.	Who are the VHA, UHC and HPPI members? 

	 	2.	Please confirm what items are currently on my Novation agreement? 

	 	3.	What pricing does Novation have loaded for each of my products? 

	 	4.	What competitive cross-reference products do you use for each of my products when you recommend that a member change over to my Novation contracted product?

	 	5.	Can you be of any assistance in supplying advance notice of price changes to our members? 

	 	6.	Who is my Novation service delivery team person for [member name]? 

  
 This Guidebook is designed to better help us answer these and other questions. It addresses: 
  

	 	•	our overall information strategy with supply partners 

  

	 	•	Novation’s information requirements 

  

	 	•	where Novation is going with respect to supply partner Internet solutions 

  

	 	•	how Novation will help your company gain access to the information that you need in managing your business relationship with Novation 

 In summary, our information needs are as follows: 
  

	 NOVATION
 REQUIREMENT

	  	 DESCRIPTION

	  	 WHAT THIS MEANS FOR
YOUR
COMPANY

	 Requirement 1:
  
 New Contract Launch
 Agreement Item Product Details
	  	This is the exact catalog number and other product information that is needed when ordering your product(s) under the Novation agreement (e.g., all product identifiers, description,
units of measure, packaging, etc.). This information is provided at the time of signing your Novation agreement and it is then kept current as changes occur.	  	Novation has a large team that works with hospitals in converting them to Novation contracted products. Novation needs product details to successfully help our members convert
business to your contracted items.
			
	 Requirement 2:
  
 Ongoing Contract Maintenance
 Pricing for Each Product on Agreement
	  	Novation needs the current price that the health care organizations will pay as they order each product. Specific item prices for each price tier (if any) must to be provided. Price
updates are needed as the pricing changes.	  	Novation provides price change notification, price comparison and economic impact services in helping the health care organizations understand all savings opportunities. These
services motivate members to convert to your products as they save money.
			
	 Requirement 3:
  
 Summary Sales Reporting
 Monthly Summary Sales Report by Member
	  	Electronic summary sales reports are needed every month. Current paper reports must be converted to electronic reporting immediately.	  	This information is loaded into Novation’s sales information system for use by our service delivery teams.
			
	 Requirement 4:
 Detailed Line Item Sales Reporting
 Monthly Line Item Sales Report by Member
	  	 Electronic line item sales reports are needed every month.
  
 There are several formats to send these reports in, please consult Requirement 4 for specification. Plan for a 90-day testing
period.
	  	This information is loaded into Novation’s sales information system for use by our service delivery teams. They work with each Novation member to identify items that are and,
more importantly, are not being bought on contract.
			
	 Requirement 5:
 Membership
 Membership Information provided to you.
	  	This details all current, new and deleted VHA or UHC membership information. Names, addresses, contacts, membership numbers, etc. are all provided. You must be able to receive and
process monthly membership updates.	  	This will keep your company current. Having this information reduces pricing and other errors, and overall, reduces the time needed to administer your Novation
agreement(s).
			
	 Requirement 6:
 Commitment Forms
 Signed Participation Forms
	  	Novation needs to be up-to-date on which member has signed your commitment form (if required by your agreement). This information is made available our service delivery
team.	  	This information tells our service delivery team which of their members have been approved by your company to buy off your agreement. If there is no form, they know to sell your
agreement.
			
	 Requirement 7:
 Sales Representative Information
 Sales Rep Contacts
	  	Novation and our members need to know who your current sales representatives are for each agreement, by territory. This information includes all specialty sales
personnel.	  	This information is available for our service delivery team in promoting your agreement. Also, members know whom to contact as they decide to buy products/services under your
agreement.

	 Requirement 8:
 Product Cross
 References
 Competitor Cross References
	  	For each product under agreement, Novation needs a listing of the competitor’s name and their respective competitive part/catalog number and any product details that you may
have available	  	Novation recommends your product(s) to our members whenever we learn that they are buying a competitor’s product. But our information is very incomplete. We need your help in
knowing what products compete directly and indirectly with each of your products that are on a Novation agreement.

  

	 NOVATION REQUIREMENT

	  	 DESCRIPTION

	  	 WHAT THIS MEANS FOR YOUR
COMPANY

	 Business Partner
 Repository System
 (BPRS) Access
	  	This information repository contains specific information that is completely customized for your Novation, VHA, UHC, and HPPI relationships. Examples of information include access
to membership, items, sales representatives, as well as cross-reference information.	  	This is your link to Novation. This BPRS system is designed to eliminate the time and delay that is inherent in the communication of important business information.
			
	 Universal Product
 Number (UPN)
	  	Novation endorses the use of the UPN for all product identification throughout the supply chain. All communications must include the UPN number immediately.	  	Begin now working on setting up a UPN number for each product on a Novation agreement.
			
	 Electronic Sales
 Reporting
	  	During 2000, Novation will be testing a new method for the submission of all summary sales reports. This Web reporting system will be fully implemented with all supply partners in
2000.	  	 

  
 How Your Company Should Communicate
This Information 
  
 Novation will be flexible in how we receive or send this
information. Our preference is always to communicate this information through EDI, but if your company can only use EDI for some transactions, this Guidebook outlines other acceptable short-term alternatives. EDI remains the long-term
solution. 
  
 Also, and this is very important: IT IS CRITICAL
THAT YOUR COMPANY SEND NOVATION THE INFORMATION REQUESTED IN THIS GUIDEBOOK. We are willing to discuss timing of EDI formats but not whether the needed information is to be provided. 
  
 All of this information is important. 

 What’s Required and When 
  
 The following chart summarizes the Novation supply partner reporting requirements. 
  

	 Requirement #

	  	 Who Supplies

	  	 Mandatory Due Dates

	  	 Format Required

	 Requirement 1:
 New Contract Launch
	  	 Your Company Sends
 To Novation
	  	60 Days prior to the Contract Effective Date	  	ØSpreadsheet File
				
	 Requirement 2:
 Ongoing Contract Maintenance
	  	 Your Company Sends
 To Novation
	  	Due 60 days prior to the effective date of the line item add/delete/change	  	 ØEDI 832 or
 ØSpreadsheet File

				
	 Requirement 3:
 Summary Sales Reporting
	  	 Your Company Sends
 To Novation
	  	Due at the first contract reporting period	  	ØSpreadsheet File
				
	 Requirement 4:
 Detailed Line Item Sales Reporting
	  	 Your Company Sends
 To Novation
	  	Begin testing within 120 days of Contract Effective Date	  	 ØEDI 867 or
 ØFlat File Format or
 ØSpreadsheet File (small files
only)

				
	 Requirement 5:
 Membership
	  	 Your Company
 Receives From
 Novation Through BPRS
	  	Due immediately	  	 ØSpreadsheet File or
 ØEDI 816

				
	 Requirement 6:
 Commitment Forms
	  	 Your Company Sends
 To Novation
	  	Due immediately, if applicable	  	ØSpreadsheet File
				
	 Requirement 7:
 Sales Representative Information
	  	 Your Company Sends
 To Novation
	  	Due within 30 days of the Contract Effective Date	  	ØSpreadsheet File
				
	 Requirement 8:
 Product Cross References
	  	 Your Company Sends
 To Novation
	  	Due within 90 days of the Contract Effective Date	  	ØSpreadsheet File

  
 Figure 1-Novation
Reporting Overview 
  
 These requirements are detailed in the section titled
Novation Information Requirements, see page 17 for details. 

 Novation’s Information Infrastructure for Supply partners 
  
 Novation supports both a private extranet and an EDI infrastructure. Many of the required
information components are available through either mode, but others may only be available on one system. 
  
 Thank you for working with your staff in completing these requirements. All of us at Novation look forward to working together with your staff in support of your Novation agreement(s). 

 Novation Electronic Communication 
  
 Requirements Schedule 
  

		
	 Company Name:
	  	Date:
		
	 Your Name:
	  	Your title
			
	 Phone:
	  	Fax:	  	E-mail
		
	 Technical Contact:
	  	Title
			
	 Phone:
	  	Fax:	  	E-mail:

  

	 NOVATION REQUIREMENT

	  	 NOVATION EXPECTATION

	  	 MANDATORY DUE
 DATES & FORMATS TO
 BE USED

	 Requirement 1: New Contract Launch
  
 Section 4.1, page 21 of the 2000
Guidebook
  
	  	This only applies to new contracts, unless your company never provided this information. If needed, your Novation product manager will contact you. UPN must be included with all
line item files.	  	Due 60 days prior to the Contract Effective Date
			
	 Requirement 2: Ongoing Contract Maintenance
  
 Section 4.2, page 27 of the 2000
Guidebook
	  	Novation must receive contract item and pricing updates as prices change, and when items are added or deleted from contract.	  	 Due 60 days prior to the effective date of the line item add/delete/change
 Information will be sent via (check one):
 (    )  EDI 832
 (    )  Interim File Format
(Excel Spreadsheet)

			
	 Requirement 3: Summary Sales Reporting
  
 Section 4.3, page 43 of the 2000
Guidebook
	  	Current paper reports must be converted to electronic reporting immediately.	  	Due at the first contract reporting period
			
	 Requirement 4: Detailed Line Item Sales Reporting
  
 Section 4.4, page 51 of the 2000
Guidebook
	  	Plan for a 90-day testing for this requirement.	  	 Begin testing within 120 days of Contract Effective Date
 Information will be sent via (check one):
 (    )  EDI
867
 (    )  Other

			
	 Requirement 5: Membership
  
 Section 4.5, page 63 of the 2000 Guidebook
	  	You must be able to receive and process monthly membership updates.	  	Due immediately
			
	 Requirement 6: Commitment Forms
  
 Section 4.6, page 73 of the 2000
Guidebook
	  	Details which members have and have not signed your contract enrollment forms, if needed.	  	Due immediately, if applicable

	 Requirement 7: Sales Representative Contact Information
  
 Section 4.7, page 77 of the 2000
Guidebook
	  	Able to update Sales Representative information from a Business Partner Repository System download.	  	Due within 30 days of the Contract Effective Date
			
	 Requirement 8: Product Cross-referencing
  
 Section 4.8, page 81 of the 2000
Guidebook
	  	Must to update the items on contract with competitive cross-reference information	  	Due within 90 days of the Contract Effective Date
			
	 Business Partner Repository System (BPRS) Access
  
 Section 3, page 13 of the 2000
Guidebook
	  	Able to connect to Novation BPRS via the VHAseCURE.netTM.	  	Due within 60 days of the Contract Effective Date

 EXHIBIT F 
  

PROGRAM MANAGEMENT 
  

	1.	Purpose. 

  
 Neoforma and Novation will establish a joint Program Management Office (the “PMO”). This organization will organize, define, track and manage
the development progress and delivery status of the Internet e-commerce Service for healthcare organizations. 
  

	2.	Responsibilities. 

  
 The PMO will be responsible for managing and maintaining the ongoing operating relationship between Neoforma and Novation. This will include establishing
operating procedures, gathering all necessary resources, driving decision-making within each organization, and communicating back to Neoforma and Novation. Specific responsibilities include: 
  

	 	2.1.	Program Definition and Organization 

  

	 	•	 	Maintenance of program goals and objectives documentation 

  

	 	•	 	Establishing program organization, selection of team members, under guidance of the Novation and Neoforma executive sponsors 

  

	 	•	 	Establishing administrative procedures 

  

	 	•	 	Establishing administrative procedures 

  

	 	•	 	Definition of program parameters, objectives, constraints, and scope of work, including program deliverables, completion criteria, and acceptance criteria 

 

	 	•	 	Definition of program management procedures: 

  

	 	(i)	issue resolution process 

  

	 	(ii)	methodology for program tracking 

  

	 	(iii)	process for status reporting 

  

	 	(iv)	tools for program and configuration management 

  

	 	(v)	procedures for program files and correspondence 

	2.2.	Program Planning 

  

	 	•	Development of program work breakdown structure (“WBS”) including tasks, task owners, and task completion criteria for tasks which cross companies.

  

	 	•	Development of program schedule, including interdependencies and critical path 

  

	 	•	Refining estimates, assessing required skills and available resources, assigning resources, reviewing program estimates, and finalizing program schedule 

  

	 	•	Creating a final baseline program plan, and distributing the approved plan to PMO and program team. 

  

	 	•	Development of the Neoforma product roadmap as it relates to Novation phases and requirements 

  

	2.3.	Program Tracking and Management 

  

	 	•	Collection of status information, including program tasks and performance data, identifying issues of concern, Development of the Neoforma product roadmap as it relates to Novation
phases and requirements 

  

	 	•	Summarizing status, analysis of variance from plan, determination of critical path impact, identification and analysis of trends, and maintenance of issues and error log

  

	 	•	Determination and management of necessary corrective action (e.g., plan adjustment, critical path re-configuration, issue log update, etc.) 

  

	 	•	Reporting program status to program team, and PMO 

  

	3.	Organization and Roles. 

  
 The PMO will be composed of two Executive Sponsors, a Steering Committee, two Program Manager, and PMO Team members. Novation and Neoforma will each
assign an Executive Sponsor and a Program Manager. Together this group will name members of the Steering Committee and PMO team. 
  

	 	3.1.	 Executive Sponsors. Novation and Neoforma will each provide an executive-level champion to preside over the Internet e-commerce program. The Executive
Sponsors will be actively responsible for the overall execution and performance of the program. Appointed by the representative company CEO, he or she will 

 serve as the representative of that CEO, and will report program progress and performance as required.
The Executive Sponsors will also provide executive-level decisions related to performance of resources committed to the Internet e-commerce program, and will be the primary arbiters in resolving major issues arising during the execution of the
program. Together, they will also actively co-chair the Executive Committee, and be responsible for the actions and performance of that group. 
  

	3.2.	Steering Committee Members. The two Parties will jointly establish a steering committee. The Steering Committee, reporting to the Executive Sponsors, will be responsible for
executive-level oversight management of the activities of specific Novation and Neoforma staff engaged on the e-commerce program. These individuals are also responsible for assigning — and ensuring the active participation of — resources
to the Program Management Team (discussed below). The Executive Committee will also make decisions on strategies, development priorities, assess business risk, and resolve other significant issues. 

  

	3.3.	Program Management Team. Neoforma and Novation will establish a joint program management office to perform daily tasks. The Program Management Team will be responsible for
the day-to-day coordination of the activities of the program. The Program Manager will be responsible for the overall management of the day-to-day activities of the Program Management Team, and will report to the Executive Sponsor. Resources will be
assigned to this team on an as requested basis. 

 EXHIBIT G 
  

MINIMUM FEES

  
 The Minimum Fees shall be determined by *.

  
 In determining the foregoing calculation, the *. By way of
example *. 
  

	*	Confidential treatment requested 

  

 EXHIBIT I 
  

TARGET FEE LEVELS 
  
 * 
  

	*	Confidential treatment requested 

  

 EXHIBIT K 
  

CURRENT FUNCTIONALITY ROADMAP 

 Attached Roadmap is the Committed Roadmap for Marketplace@Novation for Q3-Q4 2003 and Q1 2004. 
  

	 	•	This roadmap represents commitments as of the Advisory Board meeting June 23, 2003 

 Marketplace Contract Management 
  
 Description: Marketplace Contract Management provides visibility to contract and
organization information to support collaboration through Marketplace@Novation. Contract Management includes *. 
  

	 CM

	  	 Complete in Q3 2003

	  	 Complete in Q4 2003

	  	 Complete in Q1 2004

	*	  	 *
  
  
  
  
  
  
  
  
  
  
  
  
  
	  	*	  	*

  

	*	Confidential treatment requested 

  

	 CM

	  	 Complete in Q3 2003

	  	 Complete in Q4 2003

	  	 Complete in Q1 2004

	 	  	 	  	 	  	 
				
	 	  	 	  	 	  	 
	*	  	 *
  
  
  
  
  
  
  
  
  
  
  
  
  
	  	*	  	*
				
	 	  	 	  	 	  	 

  

	*	Confidential treatment requested 

  

 Marketplace Order Management 
  
 Description: Marketplace Order Management enables trading partners to view, create and manage order
information within Marketplace@Novation. Order Management includes *. 
  

	 OM

	  	 Complete in Q3 2003

	  	 Complete in Q4 2003

	  	 Complete in Q1 2004

	 	  	 	  	 	  	 
	*	  	 *
  
  
  
  
  
  
  
  
  
  
  
  
  
	  	*	  	*
				
	 	  	 	  	 	  	 

  

	*	Confidential treatment requested 

  

	 OM

	  	 Complete in Q3 2003

	  	 Complete in Q4 2003

	  	 Complete in Q1 2004

	*	  	 *
  
  
  
  
	  	*	  	*

  
 Marketplace Core Functional
Deliverables 
  
 Description: Marketplace
Core offers a robust platform for delivering solutions to Marketplace participants and enabling communication between trading partners and Marketplace@Novation. Core includes *. 
  

	 Core

	  	 Complete in Q3 2003

	  	 Complete in Q4 2003

	  	 Complete in Q1 2003

	*	  	 *
  
  
  
  
	  	*	  	*
				
	 	  	 	  	 	  	 
				
	 	  	 	  	 	  	 

  

	*	Confidential treatment requested 

  

 EXHIBIT L 
  

COLLABORATIVE MARKETING AGREEMENT 
  
 Novation and Neoforma Marketing Communications, Product Marketing and Public Relations departments agree to work collaboratively on the development of an annual Marketing
communications plan and distribution of all marketing materials, all press releases and all messaging concerning Marketplace@Novation. Specifically, Novation and Neoforma agree that in circumstances where specific approvals are required by either
Party or both, such approvals will not be unreasonably withheld. Further the Parties agree to these specific processes: 
  

	 	1.	Novation and Neoforma will collaborate on the development of overall messages and positioning of Marketplace@Novation. The owner and final decision maker will be Novation marketing.
These messages will be reviewed and agreed to on a quarterly basis. 

  

	 	2.	Neoforma will obtain Novation input and approval for any communications directed to VHA, UHC, HPPI members and suppliers (including Novation contract suppliers as well as
non-contract suppliers who may participate in M@N) concerning Neoforma and/or Marketplace@Novation (48 hour turnaround). 

  

	 	3.	A consensus will be reached between Novation and Neoforma when developing communications around technology applications, such as roadmaps, functionality rollouts and implementation
of new products, directed to VHA, UHC, HPPI members and suppliers. 

  

	 	4.	Neoforma-issued press releases that include messaging or positioning of Marketplace@Novation will reflect and support the collaboratively-developed overall messages as described in
#1 above and require the approval of Novation Public Relations. 

  

	 	5.	Novation and Neoforma agree to collaborate on the selection of members or contract suppliers for Marketplace@Novation PR and or Marketing initiatives that involve testimonials or
“best practice” promotional activities in order to ensure that they are members or suppliers in good standing. 

  

	 	6.	All jointly-issued press releases that include messages or positioning of Marketplace@Novation will be approved by both Neoforma and Novation Public Relations.

  

	 	7.	All branded communications vehicles that include the Marketplace@Novation logo will also include the “powered by Neoforma” logo as specified in the Marketplace@Novation
Branding Guidelines. 

	 	8.	Neoforma and Novation will each obtain approval for the use of the other’s logo(s). 

  

	 	9.	The working teams should use the principles outlined above to come to consensus. If a situation arises where the working teams cannot reach agreement then issues should be escalated
to the appropriate managers for resolution. It’s anticipated that escalations will be rare. 

 EXHIBIT M 
  

COLLABORATIVE DEVELOPMENT PROCESS 
  
 (WITH TECHNICAL SPECIFICATIONS) 
  
 Definitions 
  
 “Functionality Roadmap(s)” shall mean the document(s) setting forth the ideas and deliverables that are proposed and approved by Novation and
Neoforma for implementation on the Novation Marketplace. Each such idea will be developed in accordance with the collaborative development process and each will have a Functionality Roadmap Completion Date (as defined below). The Functionality
Roadmaps will be monitored through the Functionality Roadmap (as defined elsewhere in this Collaborative Development Process). 
  
 “Functionality Roadmap Completion Date”, for Functionality Roadmaps is the date that each Functionality Roadmap is (i) fully developed, ready for
implementation, and deployable for use in connection with the Novation Marketplace and (ii) approved by Novation as complying in all material respects with its vision, design and functionality specifications, which approval may not be unreasonably
withheld or delayed, by the applicable Functionality Roadmap Completion Date. 
  
 “Member-User(s)” shall mean those Users that are registered participants within the Member organizations. This term may also be used to include those Users that are registered participants within Novation Marketplace
Supplier organizations. 
  
 “Formulary” shall mean a
listing of Products and other content, customized for a Member or Member-User, that appears on the Novation Novation Marketplace or the HPPI Novation Marketplace. 
  
 “Implementation Plan” shall mean a plan to implement the functionality requirements, which shall consist of (A) a
statement of work (such as a product requirements document) describing the detailed functionalities to be provided by Neoforma, (B) a “workplan,” describing the respective responsibilities (including deliverables) of Neoforma and Novation
as well as the timetable for fulfilling such responsibilities and (C) a “testing plan,” describing the process and timetable for the testing of functionalities before actual implementation on the Novation Marketplace. 
  
 “Functionality Roadmap Change(s)” shall mean any approved functional
deliverable that will not or can not be delivered on time as committed to on the Functionality Roadmap. 

 “Planning Roadmap” shall mean the document that summarizes the ideas for features and functions
that may someday be implemented on the Novation Marketplace. The ideas on the Planning Roadmap are non-binding on the Parties. 
  
 “Post Production Functionality Roadmap Change(s)” shall mean any programmatic change made to an existing functional deliverable that is already
implemented and available for Member Users on the Novation Marketplace. 
  
 “Technical Management Team” This team consists of designated representatives from Neoforma, Novation, VHA, and UHC. It meets periodically and is the primary decision making body for (i) all Planning Roadmap related
decisions, (ii) final Functionality Roadmap prioritization, (iii) escalated issue resolution decisions for the collaborative development process, and (iv) other activities where technology is used for the Novation Marketplace. 
  
 Capitalized terms that are not otherwise defined in this Collaborative Development Process
will have the meanings ascribed thereto in the Agreement. 

 Introduction 
  
 Upon the timely receipt of content, instruction and specifications from the appropriate Parties, Neoforma will provide the Tools and
API’s and create the technology infrastructure for the Novation Marketplace. These activities are collectively referred to as the “Services”. 
  
 Neoforma and Novation agree that this Collaborative Development Process represents their understanding of the scope of the Services
including the collaborative development and change control processes, as of the Effective Date. Neoforma and Novation also agree that the Services to be provided hereunder will evolve and be modified and enhanced over time to keep pace with
technological advancements, user requirements, and improvements and changes in the e-commerce marketplace. Neoforma and Novation will work collaboratively on all phases of Novation Marketplace development including, without limitation, general
design, establishing functional specifications, system testing, acceptance testing, and beta testing. Novation will have the final approval at each phase of system development, and Novation must approve the Novation Marketplace prior to going live,
no such approvals to be unreasonably withheld or delayed. Neoforma and Novation hereby initially designate * and * as their respective representatives with authority to make such approvals and other decisions as are anticipated herein, unless such
decision-making authority is expressly granted to another person or entity either herein or by Neoforma or Novation in writing. 
  
 Neoforma and Novation shall meet at least quarterly to examine the (i) state of technology, (ii) Neoforma’s role as a leading provider of e-commerce services to the
healthcare industry, (iii) User (including Member) needs and concerns and (iv) other relevant factors. Based on such examination, Neoforma and Novation will agree on a statement of work for Services to be performed by Neoforma. 
  
 Neoforma and Novation agree that the description of Services set forth herein is not complete
and that such Parties are required to prepare a more detailed and complete description as provided for in the “Relationship Management” section of this Collaborative Development Process. 
  
 The Functions and Responsibilities section included in this document is a guide to the
minimal levels of Functionality that are to be included in the Novation Marketplace. The Outsourcing Agreement and the text of this Collaborative Development Process shall be construed consistently, but in the event of any conflict, the terms of the
Outsourcing Agreement shall supercede any inconsistent terms of this Collaborative Development Process. 
  
 The Functionality Roadmap shall be the tracking report that (i) documents features and functions that have been proposed for future development, (ii) tracks the features and functions that have been approved for
development and that are being developed for implementation on the Novation Marketplace (as further described in the applicable statement of work).  
  

	*	Confidential treatment requested 

  

 At the end of each development cycle, the completed functional deliverables will be documented on the next version of the
Functionality Roadmap and then tracked thereafter by the Novation Marketplace Deliverable Tracking Report. The deliverable tracking report will be maintained as an accurate record of all delivered and existing Novation Marketplace functionality. It
will also be the record of functionality that is sun-setted over time due to evolving Member User requirements. The Novation Marketplace Deliverable Tracking Report will be maintained by Novation, and Neoforma will have visibility to and approval
rights over this report. 
  
 Neoforma acknowledges that proper operations of the
Novation Marketplace are critical to the business operations of Novation. 
  
 Relationship Management 
  
 (a)
Account Managers; Steering Committee 
  
 (b) Neoforma and
Novation shall designate account managers (each, an “Account Manager”). The Account Managers shall have overall responsibility for day-to-day management and administration of the Services provided under this Collaborative
Development Process . 
  
 Neoforma and Novation shall establish a steering
committee (the “Steering Committee”) to monitor issues arising with respect to the Services and the performance by Neoforma and Novation of their obligations hereunder. Through the Steering Committee, Novation will have the
opportunity to provide input regarding the direction of implementation of new technology for the Novation Marketplace and in connection with the Collaborative Development Process (as defined below). The Steering Committee shall monitor overall
Services performance and review expanded Services and project requests. Neoforma and Novation shall mutually determine the number of representatives they will assign to the Steering Committee. Each of Neoforma and Novation may replace its members of
the Steering Committee after providing the other Party with reasonable advance written notice and after consultation with the other Party. Each Party shall use reasonable efforts to minimize the turnover of individuals serving on the Steering
Committee. The Steering Committee shall meet as set forth below, and each Party’s representatives on the Steering Committee shall have the responsibility to notify that Party’s senior management of material issues considered, and material
actions taken, by the Steering Committee. 
  
 Reports and Meetings

  
 Neoforma shall provide to Novation, commencing with the month after
execution of the Outsourcing Agreement, a comprehensive monthly performance report delivered to Novation within five business days after the end of each month, in a form mutually established by Neoforma and Novation, describing Neoforma’s
performance of the Services in the preceding month. Such report may be subdivided into separate monthly reports as mutually agreed by Neoforma and Novation. 

 As soon as practicable after the execution of the Outsourcing Agreement, Neoforma and Novation shall determine an
appropriate set of meetings to be held between representatives of Novation and Neoforma. Neoforma shall prepare and circulate an agenda sufficiently in advance to give participants an opportunity to prepare for each meeting and shall incorporate
into such agenda items that Novation desires to discuss. At Novation’s request, Neoforma shall prepare and circulate minutes promptly after a meeting. At a minimum, such meetings shall include the following: 
  

	 	(i)	a monthly meeting among operational personnel representing Novation and Neoforma to discuss daily performance and planned or anticipated activities and changes that might adversely
affect performance; 

  

	 	(ii)	a quarterly management meeting of the Steering Committee to review the monthly performance reports for the quarter, review Neoforma’s overall performance of the Services,
review progress on the resolution of issues, provide a strategic outlook for Novation Marketplace requirements, and discuss such other matters as appropriate; and 

  

	 	(iii)	an annual senior management meeting to review relevant performance issues. 

 Establishment of a Program Management Office 
  
 Neoforma will maintain a Program Management Office (the “Program Management Office” or
“PMO”), which shall have representatives from Neoforma and a designated representative from Novation. The Program Management Office will be responsible for overseeing the day-to-day management of the tasks being completed
during the collaborative development process (as described below). In addition, the Program Management Office will determine the appropriate parties to make decisions regarding the collaborative development process, and to coordinate timely
responses. Additionally, the Program Management Office will coordinate the maintenance of all documents related to the collaborative development process for all Novation Marketplace functional deliverables, including technical specifications.

  
 With respect to this Collaborative Development Process, the PMO will

  

	 	•	Provide status as to the development activity for all functional deliverables on the Functionality Roadmap 

  

	 	•	Be the central collection point for the status of all projects and their components 

  

	 	•	Keep up to date and manage the information in a project plan status system that is available for a limited number of Novation managers to query and view. 

 

	 	•	Summarize status, analyze and report all variances from the plan. 

  

	 	•	Facilitate program development teams to determine critical path impacts, identify and analyze trends, and maintain an issues and error log, report these issues as appropriate to
management. 

  

	 	•	Facilitate all needed corrective action plans (e.g., plan adjustment, critical path re-configuration, issue log update, etc.) 

  

	 	•	Report program status to program and senior management teams 

  

	 	•	Manage change management and document control processes 

 Collaborative Development Process. 
  
 Overview 
  
 The collaborative development process defines how the Technical Staffs at Neoforma and Novation will work together in building Novation Marketplace functionality. It
defines four key interaction areas. They are: 
  

	 	•	Visioning. Novation owns this activity for Novation Marketplace. Novation will work collaboratively with Neoforma to develop the direction (the Vision) that Neoforma needs to
take in building Novation Marketplace functionality. This process will be completed when Novation delivers a document to Neoforma that clearly communicates this direction. This document is to include: i) directional statements (the Vision); ii)
business justification for the directional statements; iii) a clear definition of the problems being solved for the stakeholders; iv) use cases and user acceptance criteria for how the resulting system enhancements would fit into the day to day
processes of the stakeholders; v) adoption plans and goals, vi) other information as needed to support the proposed Vision. 

  

	 	    	Additionally, Neoforma and Novation are responsible for continually sharing and communicating marketing research, customer/supplier input, plans for other Neoforma Marketplaces,
etc. to each other. This permits Novation to include these elements into Novation’s Vision statements. It is also acknowledged that Neoforma will have plans for other marketplaces that it can not share with Novation. 

 

	 	•	Planning. Neoforma owns this activity. During this process, Neoforma takes Novation’s Vision documents and determines the functional deliverables needed to support
Novation’s Vision. These deliverables are then added to the Planning Roadmap (usually over multiple releases), and the Planning Roadmap is reviewed by the joint Technical Management team. Then, as approved by the Technical Management Team,
Neoforma creates and delivers to Novation detailed and fully specified functional deliverable requirements documents and/or build plans (including, for example: screen wire frames, resource allocations, costs, timings, etc.) for the functional
deliverables within one or more release. Each detailed functional deliverable document is reviewed and approved by Novation. The Functionality Roadmap is then updated and taken to the Technical Management Team for their final approval. Upon
approval, the Functionality Roadmap Completion Dates are set on the Functionality Roadmap. 

  

	 	    	It is understood that Neoforma is building a Marketplace of which Novation Marketplace is a significant part. In the Planning Phase Neoforma will include and take into consideration
requirements developed from sources outside of the Novation Visioning process. Any issues pertaining to functionality priority, scope, and timing that cannot be resolved at the team level, will be resolved by the Technical Team. Should Neoforma and
Novation not be able to agree on the deliverables, Novation has final approval over the Functionality Roadmap. 

	 	•	Building and Testing. Neoforma and Novation jointly own this activity. 

  

	 	•	 	Neoforma. Based upon Novation’s approval of the Novation Marketplace Functionality Roadmap, Neoforma builds the Novation Marketplace functional deliverables as detailed
in the functional deliverable requirements build plans that were created during the above Planning process. Neoforma then tests each functional deliverable based on its own quality assurance processes. 

  

	 	•	 	Novation. Novation does the final user acceptance testing for all functional deliverables. The testing is completed based on jointly developed and approved user acceptance
criteria and plans. Upon the successful completion of this testing, Novation approves the release of the functional deliverables. Novation has final approval over the release of all functional deliverables. 

  

	 	•	Novation Marketplace Oversight. Management oversight of these processes is provided by 1) the Novation and Neoforma Account Managers, 2) the relationship managers from both
organizations, and 3) by the Technical Management Team. Any issues pertaining to functionality priority, scope, and timing that cannot be resolved by parties 1 and 2, will be resolved by the Technical Management Team. 

  
 The Collaborative Development Process detailed herein has two parts. 
  

	 	    	Part 1: The Collaborative Development Process Principles. These are included below and these principles summarize how the two teams will interact with each other on a daily
basis. 

  

	 	    	Part 2: Attached as an exhibit to this document, is a drawing labeled “The Collaborative Development Process Map.” This is a more detailed overview of team
interactions. This drawing may be modified from time to time as the interactions need to change and upon mutual agreement by both parties. 

 Part 1: Collaborative Development Process Principles 
  
 The collaborative development process (“CDP” or the “Collaborative
Development Process”) is a process involving many interactions between employees at Neoforma and Novation. In summary, these employees work together as they prepare the Novation Marketplace Vision statements, plan and build the functional
deliverables, and approve these functional deliverables for release to Member Users. 
  
 The complex nature of this process is graphically depicted in a Collaborative Development Process Map. 
  
 In addition to the above Collaborative Development Process Overview, the following principles are fundamental to how the two teams will work together throughout the
collaborative development process. These principles are not expected to change during the life of this Collaborative Development Process. They will remain in force unless changed in writing by mutual agreement. 
  

	 	•	For the purpose of developing Novation Marketplace direction and vision, Novation is responsible for the aggregation of all member input. Neoforma will work in partnership with
Novation’s designated employees in providing the input that it collects. 

  

	 	•	Neoforma will coordinate its information gathering processes with Novation when obtaining market research information from Novation’s Member Users. 

  

	 	•	Novation is responsible for leading all Novation Marketplace related task forces and councils. Neoforma will participate in and provide support for these activities as needed.

  

	 	•	Neoforma and Novation will communicate their goals, desires, plans, etc. for the Novation Marketplace to each other. This is done so that this input can be considered during the
Visioning Process of the Collaborative Development Process. As appropriate, Novation will include these plans, goals, etc in their Novation Marketplace business requirement documents. 

  

	 	•	Neoforma will not develop and maintain separate vision or directional statements for the Novation Marketplace that have not gone through the Novation Visioning process.

  

	 	•	The Novation and Neoforma teams will work collaboratively to review Neoforma’s written functional requirement documents (e.g. Product Requirements Document – Prods) in
ensuring that they align with Novation’s Vision, as provided in the Novation Vision documents. Each functional requirement document from Neoforma is to provide detailed descriptions of specific features and functions, including functional
descriptions, screen designs/layouts, programmatic logic, data dependencies, and other needed specifications so that Novation has a clear understanding of what is to be built during each development cycle. 

  

	 	•	 Neoforma will use Novation’s business requirement documents as the basis for creating its functional requirement documents for Novation Marketplace during

	 	 
each Planning process. This closely aligns what Neoforma is building with what members and other stakeholders have requested during the Visioning process as
lead by Novation. If new features are being proposed by Neoforma, the feature will be evaluated for inclusion in the Novation Marketplace. 

  

	 	•	Novation must approve each functional requirement document (e.g. Product Requirements Document – PRD) before development work can begin. Exceptions to this will be approved in
writing and sent to Neoforma. Novation must approve these documents within a jointly agreed upon timeframe, determined during the planning process. 

  

	 	•	Neoforma will maintain and make available, detailed project plans for all Novation Marketplace functional deliverables. Each plan will include resources, tasks, milestones,
estimated costs, and other information that will help Novation keep informed about where each functional deliverable is as it is being built or enhanced. Novation’s PMO representative and a limited number of designated managers at Novation will
have day to day visibility into the status of all planned, in process, and completed functional deliverables. 

  
 Part 2: The Collaborative Development Process Map 
  
 The Collaborative Development Process Map is attached hereto as Attachment 1. 
  
 Novation Marketplace Functionality Roadmap 
  
 Neoforma shall maintain the Functionality Roadmap, and through which Novation and Neoforma will monitor the status of production and implementation of all Functionality
Roadmaps. 
  
 Establishment of Functionality Roadmap Completion Dates

  
 During the Planning phase of the Collaborative Development Process,
Neoforma and Novation shall agree to production schedules, including completion dates (each a “Functionality Roadmap Completion Date”), for all Functionality Roadmaps.  
  
 Document Control 
  
 The Parties shall create a central repository of documents relating to the Collaborative Development Process, including, without limitation;
requirement documents, technical specifications, data models, project plans, and test plans. The repository shall be managed by the Program Management Office (PMO). These documents will be kept current by the PMO. 

 Change Management at Neoforma and Novation 
  
 Neoforma 
  
 Neoforma shall perform certain change management functions to rigorously control and manage changes in any and all aspects of the Novation Marketplace. Changes can happen
during the building of Functionality Roadmaps, or after a Functionality Roadmap is moved to Production. 
  
 Changes during the Collaborative Development Process 
  
 At a minimum, Neoforma’s Change Management Process is to include the following principles as they relate to the Novation Marketplace. 
  

	 	•	A Change Control Process will be jointly developed and approved by both Parties. 

  

	 	•	Neoforma will vigorously enforce and maintain the approved change control process for all Functionality Roadmap Changes. 

  

	 	•	Changes in Neoforma’s Change Control Process must be communicated to and approved by Novation. 

  

	 	•	Once a functional deliverable document is approved by Novation during the Planning Phase of the Collaborative Development Process, Neoforma will vigorously enforce strict change
control processes and notify Novation of all material changes to any functional deliverable within 24 hours of deciding that a functional deliverable change is needed. Upon receipt of this change notification, the Novation responsible person for the
functional deliverable(s) will work collaboratively with the appropriate Neoforma Product Manager to understand why a Functionality Roadmap Change is needed. 

  

	 	•	All material changes to any Functionality Roadmap must be approved by Novation. A material change is one that: 1) changes the user experience as specified in the functional
requirements document that was approved by Novation, 2) adds or deletes agreed upon features and/or functionality from what was specified in the functional requirements document that was approved by Novation, 3) affects business processes for any
Novation Marketplace stakeholder. 

  

	 	•	Until receiving Novation’s approval for any given Functionality Roadmap Change, which will not be unreasonably withheld, Neoforma may not redeploy resources or invoke other
plans to change any functional deliverable already implemented on the Novation Marketplace. Both Parties will mutually agree upon how quickly each approval must be considered and when an answer must be provided to Neoforma. This time limit will be
based upon the nature and time sensitivity of each change decision. 

  

	 	•	 Novation, or Neoforma on Novation’s behalf, may initiate a Functionality Roadmap Change. This will occur if Novation fails to deliver on one (or more) of its
assigned tasks on a Neoforma project plan. If this occurs, Novation 

	 	 
acknowledges that this may cause Neoforma to miss a Functionality Roadmap on the Functionality Roadmap, and that Neoforma will be considered to have met its
commitments under the then current Functionality Roadmap. 

  

	 	•	Neoforma’s PMO will maintain a change control tracking system. Quarterly reports will be provided to Novation detailing all changes on a quarterly basis.

  
 Changes Once a Functionality Roadmap is implemented on the
Novation Marketplace 
  

	 	•	A Change Control Process will be jointly developed and approved by both Parties. 

  

	 	•	Neoforma will vigorously enforce and maintain the approved change control process for all Post Production Functionality Roadmap Changes. 

  

	 	•	Changes in Neoforma’s Post Production Change Control Process must be communicated to and approved by Novation’s management team. 

  

	 	•	Once implemented on the Novation Marketplace, Neoforma will vigorously enforce strict change control processes and notify Novation of all Post Production Functionality Roadmap
Changes within 24 hours of deciding that a change is needed. This notification will come from Neoforma to the appropriate Novation employee responsible for that functional deliverable(s), and to Novation’s PMO representative. Upon receipt of
this change notification, the Novation responsible person for the functional deliverable(s) will work collaboratively with the appropriate Neoforma Product Manager to understand why a Functionality Roadmap Change is needed. 

 

	 	•	All material changes to any Post Production Functionality Roadmap(s) must be approved by Novation. A material change is one that: 1) changes the user experience as specified in the
functional requirements document that was approved by Novation, 2) adds or deletes agreed upon features and/or functionality from what was specified in the functional requirements document that was approved by Novation, 3) affects business processes
for any Novation Marketplace stakeholder. 

  

	 	•	Until receiving Novation’s approval for any given Post Production Functionality Roadmap Change, which will not be unreasonably withheld, Neoforma may not redeploy resources or
invoke other plans to change any functional deliverable already implemented on the Novation Marketplace. Both Parties will mutually agree upon how quickly each approval must be considered and when an answer must be provided to Neoforma. This time
limit will be based upon the nature and time sensitivity of each change decision. 

  

	 	•	Novation’s approval for a Post Production Functionality Roadmap Change must be in writing. 

 Novation 
  
 Novation shall perform certain change management functions to rigorously control and manage changes in any and all aspects of the information that it provides to, or
receives from Neoforma. 
  

	 	•	A Change Control Process will be jointly developed and approved by both Parties. 

  

	 	•	Novation will vigorously enforce and maintain the approved change control process for data that it sends to, or receives from Neoforma. 

  

	 	•	Changes in Novation’s Change Control Process must be communicated to and approved by Neoforma. 

  

	 	•	Once implemented on the Novation Marketplace, Novation will vigorously enforce strict change control processes and notify Neoforma of all needed changes within 24 hours of deciding
that a change is needed. This notification will come from Novation to Neoforma, and if known to the Neoforma employee responsible for effected functional deliverable(s). Upon receipt of this change notification, the Neoforma responsible person will
work collaboratively with the appropriate Novation employee to understand why a change is needed. 

  

	 	•	Until receiving Neoforma’s approval for a Functionality Roadmap Change or a Post Production Functionality Roadmap Change, Novation may not redeploy resources or invoke other
plans to change any functional deliverable unless absolutely necessary in keeping the Novation Marketplace operational. 

  

	 	•	Neoforma’s approval for a Post Production Functionality Roadmap or Functionality Roadmap Change must be in writing. 

  
 Roadmap Process. 
  
 Novation and Neoforma will use the CDP as a standard for planning all functional deliverables for the Novation Marketplace. All desired
functionality will be maintained in a Planning Roadmap, and Neoforma and Novation’s agreed upon and committed functionality will be tracked in the Functionality Roadmap. 
  
 The Planning Roadmap includes ideas and desired functionality for a rolling 12 month period (in quarterly increments), and the Functionality
Roadmap will cover committed development activities for a rolling 6 month period (in quarterly increments). 
  
 Features and functions that are on the Planning Roadmap are simply proposed directional statements, but items on the Functionality Roadmap must be sized, scoped, resource planned, and have articulated plans for
implementation before they are added to the Functionality Roadmap. 
  
 An item on
the Functionality Roadmap is considered to have been delivered by Neoforma if the Functionality Roadmap Completion Date is met. This date will always be considered to be the last day of the calendar month for the quarter as specified on the
Functionality Roadmap. 

 The joint Novation Marketplace technical management team reviews and approves the Planning and Functionality Roadmaps.
Additionally, this team assures that the Collaborative Development Process is followed and they resolve issues should there be competing priorities for all Novation Marketplace functional deliverables. 

 Functions and Responsibilities 
  
 This section is a guide to the minimal level of Functionality that is to be included in the Novation Marketplace. 
  
 If noted by the letters “CDP” after the listed functionality, it means that it will
be planned, defined and developed in accordance with the CDP but is not a required functionality unless mutually agreed to by Novation and Neoforma. All other functions and responsibilities are managed outside of the CDP. 
  
 * 
  

	*	Confidential treatment requested 

  

 Item Substitution (CDP) 
  

	•	         

  
 Data Communications 
  

	•	Novation will provide to Neoforma from time to time, as agreed by Neoforma and Novation, information regarding membership organizations, Members, contract suppliers, contract
product, pricing, and content. Additionally, Neoforma and Novation will develop a process for defining and transporting data from Novation and HealthVision systems to Neoforma. For all such communications, Neoforma and Novation will agree upon the
specific data elements that are required, the format of the data, and the methodology for the communication. Neoforma and Novation also will agree to the frequency of full data refreshes in order to better facilitate the synchronization of
information between Neoforma and Novation. 

  

	•	Novation shall establish change management functions to rigorously control and manage changes in any and all data stored in the system of record. Within 30 days after the date of
the Outsourcing Agreement, Novation will develop with Neoforma a data Novation Marketplace management process, which shall include: 

  

	 	(i)	Definition of data Novation Marketplace requirements. 

  

	 	(ii)	Format of the data to be communicated. 

  

	 	(iii)	Methodology by which data will be communicated between to Neoforma, Novation, HealthVision, and other applicable related companies. 

 Implementation Reporting and Processes 
  
 Neoforma and Novation shall develop and mutually agree to an implementation process (the “Implementation Process”)
for each type of implementation (i.e., a different Implementation Process may be required for each of distributors, manufacturers, Members, and other Users). Additionally, Neoforma and Novation will work with representatives from manufacturers,
distributors, Members and Other Users in an effort to continuously improve their respective Implementation Processes. 
  
 Neoforma is responsible for the following communications to Novation as it implements manufacturers, distributors, Members, and Other Users on the Novation Marketplace.

  

	•	The service delivery group will provide a weekly report that summarizes all implementation activity. 

  

	•	Neoforma will maintain an accurate Implementation Process for each type of implementation (e.g., for distributors, manufacturers, Members, and other Users).

  

	•	Neoforma will prepare individualized Implementation Process documents for each distributor, manufacturer, Member, and User implementation. 

  

	•	Neoforma will provide electronic copies of the individualized Implementation Process plans prior to the start of each implementation and Novation will be updated as changes occur in
the individualized plans. 

  

	•	Neoforma will inform Novation of all changes to the overall Implementation Process. At least annually, or more frequently if appropriate, there will be joint meetings to fully
review the Implementation Process. 

  

	•	Neoforma and Novation will provide a monthly implementation “report card” that can be shared with internal management and other Parties, as appropriate. The contents of
this report card will be jointly developed by Neoforma and Novation. 

  
 All such communications shall be provided to Novation at times and in a manner mutually agreed to by Neoforma and Novation. 

 Technical and Software Issues 
  
 System Documentation 
  
 On a quarterly basis Neoforma will provide Novation with updated versions of then-current system design specifications documentation so that Novation remains appraised of
all current features and functions of the system. 
  
 Source Code Escrow
Agreement 
  
 Promptly after execution of the Source Code Escrow Agreement,
Neoforma shall deliver to the Escrow Agent specified therein both printed and electronic copies of all source code (along with complete copies of all application design specifications, user manuals, etc.) for any and all applications (i) developed
by Neoforma or (ii) developed by third-parties but in as to which Neoforma has the right to access the source code, in each case, used by any member of VHA, UHC or HPPI in connection with the Novation Marketplace. Neoforma will, on a quarterly
basis, update such copies of source code as changes to such Novation Marketplace technology are made. All fees and expenses charged by the Escrow Agent will be borne by Novation. 
  
 From time to time, Novation may, at its option and expense, request that the completeness and accuracy of the source code be verified. Such
verification shall be performed in accordance with the terms of the Source Code Escrow Agreement. 
  
 The source code will be released from escrow to Novation upon the occurrence of one or more specified “release events,” to be more fully described in the Source Code Escrow Agreement which, at a minimum,
shall include (i) the delivery by Novation of any notice of termination under Sections 9.3 and 9.4 of the Outsourcing Agreement and (ii) the material breach by Neoforma of its service obligations under Section 9.9 of the Outsourcing Agreement after
the delivery by Novation of any notice of termination under Sections 9.5 and 9.6 of the Outsourcing Agreement. 
  
 Software Support 
  
 Neoforma is
administratively and financially responsible for obtaining and maintaining support for all software, hardware, database and other technical components of the Novation Marketplace. Neoforma and Novation will meet from time to time to discuss support
requirements that materially impact upon the Services, and Neoforma will provide 90 days notice to Members if a current version of a technical component is to be eliminated or replaced (if such a change may have a material impact upon the Services).

  
 Software Standards 
  
 Novation and Neoforma will from time to time meet to discuss all software standards used in
the development and support of the Novation Marketplace. 

 Systems Maintenance; Outages; Disaster Recovery 
  
 Scheduled System Maintenance Windows 
  
 Neoforma will schedule systems maintenance activities only within the following maintenance
windows: 
  

	 Outage Period
	  	Outage Window
	 Friday Evening (Primary Window)
	  	 8PM to 2 AM Saturday morning (PST)

	 Saturday Evening (Secondary Window)
	  	 8PM to 2 AM Sunday morning (PST)

	 Sunday Evening (Tertiary Window)
	  	 6PM to 12AM Monday morning (PST)

  
 Whenever possible, maintenance will be
scheduled within the Primary Window. Alternate times outside of these windows must be negotiated with Novation at least 48 hours in advance, and used only if critically important to the continued operation of the Novation Marketplace. 
  
 Notification of System Maintenance 
  
 Neoforma is to provide Novation with at least 2 business days of advance notice of all
scheduled system outages. 
  
 Notification of Unscheduled Outages

  
 If for any reason the Novation Marketplace becomes inoperative, or a
critical systems component of the Novation Marketplace is inoperative, outside of a scheduled system maintenance period, Neoforma will notify Novation within 30 minutes after Neoforma discovers that the outage has occurred. Neoforma will notify
Novation within 30 minutes after systems restoration that such restoration has occurred. Within one business day of systems restoration, Neoforma is to notify Novation as to (i) the probable cause of the outage, (ii) the number of Members and
Member-Users that were affected and (ii) the number of transactions either queued or rejected during the outage. 
  
 Using input from Novation, Suppliers, Members, and other Users, Neoforma will develop and update from time to time as needed the notification procedures that will be used
to inform affected parties about significant service interruptions and/or system outages, should they occur. These notification procedures will be documented in a process and procedures section of the Neoforma disaster recovery plan 
  
 Neoforma will review the notification processes and procedures in its disaster recover plan
with manufacturers, distributors, and member users during the Implementation Process. Should a manufacturer, distributor, Member, or other User request certain notification processes, Neoforma will use its best efforts to honor such requests.

 Order Queuing During Systems Maintenance or Outage 
  
 Neoforma is to execute its best efforts to queue all orders and other inbound and outbound transactions in a safe holding area during all
scheduled maintenance and unscheduled systems outage periods. All queued transactions are to be immediately processed as soon as safe to do so upon systems restoration. 
  
 Hot Site Backup Synchronization with the Primary Site 
  
 The hot site will be updated as needed to support functionality and services that are added to the Novation Marketplace. 
  

	 	1.	Novation agrees that Neoforma may accumulate its Hot Site upgrades over a calander quarter, and implement all of the enhancements at the end of each quarter.

  

	 	2.	Web Applications. Neoforma and Novation will identify the web based applications that must be supported by the Hot Site. This will be done as a standard part of the Collaborative
Development Process. If required, updates will be made to the applications that operate at the Hot Site based upon the requirements detailed in the functional requirement vision and/or planning documents created during the Collaborative Development
Process. 

  

	 	3.	Hot site support for NeoConnect, the data warehouse, and other infrastructure components will be discussed quarterly. 

  
 A joint Neoforma and Novation team will be established to review all of the upgrades needed
for the Hot Site. This team will meet quarterly. This team will discuss and mutually agree upon the services being supported by the hot site backup facility, and the level of application synchronization between the primary and hot backup sites.

  

	Backup,	Disaster Recovery and Storage 

  
 Neoforma shall provide backup, disaster recovery and storage capabilities so as to maximize availability of the Services during an event that would otherwise affect the
delivery of the Services. 
  
 Neoforma will maintain a “hot site”
disaster recovery site which is able to support the processing and communication of EDI and/or XML transactions between the Users and their Suppliers (a “hot site” being defined as a fully equipped computer center which provides one or
more computer models and the necessary peripheral equipment to replicate the data processing from the primary computer site, including backup power supplies, redundant environmental conditioning, communications lines, fire protection and warning
devices, intrusion-detection devices, physical security, and adequate office space for personnel to conduct normal Novation Marketplace operations). Should a disaster occur at the primary site of the Novation Marketplace, the system should
automatically sense the outage and begin processing the EDI and XML transactions at the hot site and continue until service is restored at the primary site. Neoforma will continually keep Novation informed as to the location of the hot site.

 Neoforma must use its best efforts to ensure that the automatic failover software and hardware systems work properly
between the primary and hot backup sites. At a minimum, failover processes and manual procedures must be tested monthly, unless otherwise approved in writing by Novation, and, should the hot backup system not work properly, immediate action must be
taken to resolve any and all problems. Upon request, Neoforma will provide Novation with reasonable documentation of the date of such tests, the results of each such test, and any corrective actions taken in response to errors and any other issues
discovered through such tests. 
  
 Backup and Disaster Recovery Plan

  
 Neoforma shall adopt and maintain a Novation Marketplace Backup and
Disaster Recovery Plan which describes (i) the manner in which Neoforma shall perform backup and disaster recover functions, and (ii) Novation’s priorities for backup and disaster recovery and methods for changing those priorities. Novation
will continually have access to the plan and may, from time to time, meet with Neoforma to discuss the plan. 
  

	Other	Disaster Recovery Duties 

  
 Neoforma shall also have responsibility to: 
  

	 	(i)	Maintain an uninterruptible power supply (UPS), to both the primary site and “hot site” facilities, with fuel supply and auxiliary generator to ensure continuity in the
event of an interruption in ordinary power supply, and perform routine maintenance to ensure reliability. 

  

	 	(ii)	Maintain off site storage of the Novation Marketplace’s data, software and disaster-recovery related documentation to support disaster recovery. 

  

	 	(iii)	In the event of a disaster, assume responsibility for operating the hardware and providing the functions in accordance with the disaster recovery plan. 

 Attachment 1 
  
 Collaborative Development Process Map 
  
 EXHIBIT N 
  
 SERVICE LEVEL SPECIFICATIONS 
  

	1.	GENERAL PROVISIONS 

  

	 	1.1.	General 

  
 Neoforma acknowledges and agrees that the critical importance of certain of Novation’s business functions (e.g., those tied to Novation’s
present and future revenue streams and the strategies therefore) require that certain metrics focus on performance measures that are a combination of quantitative and qualitative measures (e.g., a qualitative measure of Neoforma’s overall
responsiveness in meeting Novation’s business needs and schedules). As further described in this Service Level Specifications, Neoforma shall be committed to a process to develop such metrics and to define Neoforma’s responsibilities in
that regard. 
  
 The Service Levels set forth in this Service
Level Specifications are intended to measure Neoforma’s performance of the Services. Commencing with the initial provision of the Services, Neoforma shall perform the Services so as to meet or exceed the Type I Service Levels set forth in this
Service Level Specifications. Neoforma shall perform the Services so as to meet or exceed the Type II Service Levels as they are established. The detailed definitions of Type I Service Levels are set forth in Article 2. Type II Service Levels shall
be established in accordance with the Service Level establishment procedure set forth in Section 1.4. 
  
 Neoforma and Novation agree that this Service Level Specifications represents their agreement as to the Service Levels as of the Effective Date. As the
Services provided pursuant to the Outsourcing Agreement are changed, modified or enhanced (i) as a result of the development of Implementation Plans for each new release or (ii) from time to time through the provision of additional Services,
Neoforma and Novation will review the Service Levels then in effect and will in good faith mutually determine whether such Service Levels should be adjusted and whether additional Service Levels should be implemented. 
  
 Capitalized terms used in this Service Level Specifications shall have the
respective meanings set forth herein. Other terms used in this Service Level Specifications are defined in Attachment 1 hereto, the Outsourcing Agreement or the Collaborative Development Process. 

	 	1.2.	Reporting 

  

	(a)	On or before the six-month anniversary of the Effective Date, Neoforma and Novation shall establish an appropriate set of periodic reports to be delivered by Neoforma to Novation
from time to time regarding the provision of the Services by Neoforma. These reports may include information of the following type: a monthly status report that (i) assesses, for each Service Level, the degree to which Neoforma has attained or
failed to attain the pertinent Service Level including measurements with respect to the Service Levels, (ii) summarizes the status of problem resolution efforts and other initiatives and (iii) explains deviations from the Service Levels and includes
plans, in reasonable detail, for corrective action. 

  

	(b)	The monthly status reports shall include a set of hard and soft copy reports to verify Neoforma’s performance and compliance with the Service Levels. If feasible, such reports
shall also be made available to Novation on-line. The raw data and detailed supporting information shall be deemed Novation Data under the Outsourcing Agreement. Such reports shall be provided on or before the 20th day of the month reflecting Neoforma’s performance of the Services during the immediately preceding month. 

  

	1.3.	Service Level Types 

  

	 	(a)	Certain Service Levels are established as of the Effective Date (each, a “Type I Service Level”), and are set forth in Article 2 and summarized in Attachment 3.
Type I Service Levels shall be reviewed from time to time as described in Section 1.4. 

  

	 	(b)	The remaining Service Levels are undefined as of the Effective Date (each, a “Type II Service Level”). Type II Service Levels shall be subject to the Service Level
establishment procedure set forth in Section 1.4. 

  

	 	(c)	All Service Levels are subject to continuous improvement described in Section 1.5. 

  

	1.4.	Establishment and Review of Service Levels 

  

	 	(a)	 This Section 1.4(a) identifies Neoforma’s and Novation’s obligations with regard to the establishment and review of Service Levels. On or before the
two-month anniversary of the Effective Date, Neoforma and Novation shall develop Service Level metrics 

	 	 
to be published and maintained by the Program Management Office. The PMO will be responsible for the following with regards to Service Level metrics:

  

	 	(i)	Defining the overall Service Level program between Neoforma and Novation, including, without limitation, the Service Level Credit payments and other consequences for Neoforma’s
failure to meet any Service Level (including Type I and Type II Service Levels). The definition of such Service Level Credit payments and other consequences shall include, without limitation, a methodology whereby Neoforma shall provide to Novation
a credit, calculated as a percentage (up to *%) of the Monthly Fees. Such methodology shall (A) include a mechanism whereby an accelerator or multiplier factor shall apply to each of the different levels of severity or periods of time associated
with Neoforma’s failure to meet such Service Level and (B) be designed to increase the amount of the Service Level Credit applicable to Neoforma’s failure to meet such Service Level as such level of severity or the time period of
Neoforma’s nonperformance increases. Any such Service Level Credit methodology shall be subject to the provisions of Section 16.3 (including the limitations set forth therein). 

  

	 	(ii)	Reviewing the Type I Service Levels (x) during the preparation of the Implementation Plan for each new release and (y) from time to time during the Term. In connection with such
review, the PMO shall examine the (i) Services to be provided , (ii) state of technology, (ii) Neoforma’s role as a leading provider of e-commerce services to the healthcare industry, (iii) User (including Member) needs and concerns and (iv)
other relevant factors. 

  

	 	(iii)	During the six-month period commencing on the Effective Date and from time to time during the Term, jointly proposing, defining, documenting and implementing Service Level metrics
for Type II Service Levels that shall include additional Service Levels. The PMO shall adhere to the provisions of this Service Level Specifications and the establishment and review procedures described in Attachment 2. 

  

	 	(b)	Except as expressly stated otherwise in this Service Level Specifications, the addition, deletion or modification of Service Levels shall be subject to the mutual agreement of
Neoforma and Novation. 

  

	*	Confidential treatment requested 

  

	 	(c)	Neoforma and Novation agree that if they are unable to agree upon any of the Service Levels that are to be established, such disagreement will be treated as a Disputed Matter
subject to the dispute resolution and arbitration provisions set forth in Section 18 of the Outsourcing Agreement. 

  

	1.5.	Continuous Improvement 

  

	 	(a)	Neoforma and Novation acknowledge that Service Levels will be subject to continuous improvement during the Term, and will be adjusted through the review process described in Section
1.5(b). 

  

	 	(b)	From time to time and no less frequently than annually during the Term, Neoforma and Novation shall jointly review (i) the then-current Service Levels, (ii) the percentage
difference between Neoforma’s actual performance and the then-current Service Levels and (iii) information indicating industry-wide improvements of delivery of substantially similar services. The Service Levels shall be adjusted based on the
review described in the preceding sentence. 

  

	1.6.	Failure to Meet Service Levels 

  

	 	(a)	If Neoforma fails to meet any Service Level, then Neoforma shall (i) promptly perform a root-cause analysis to identify the cause of such failure, (ii) provide a report to Novation
in accordance with Section 1.2, and (iii) take such action as may be necessary or appropriate to avoid such failure in the future and begin to meet the Service Level as promptly as practicable. 

  

	 	(b)	If Neoforma fails to meet a Service Level, Neoforma shall credit the applicable Service Level Credit to Novation on the monthly invoice immediately following the report of such
failure to Novation. In no event shall the total amount of Service Level Credits credited to Novation with respect to failures to meet any Service Levels occurring in a single month exceed, in the aggregate, *% of Monthly Fees. If any Service Level
Credit remains outstanding upon the expiration or termination of this Outsourcing Agreement and no Service charges remain payable, Neoforma shall pay Novation such remaining amount in cash within 30 days after such expiration or termination.

  

	 	(c)	Neoforma shall notify Novation in writing if Novation becomes entitled to a Service Level Credit as part of the monthly status report referred to in Section 1.2. Such notice shall
specify the performance failure and the amount of the Service Level Credit that Novation is entitled to receive. 

  

	*	Confidential treatment requested 

  

	1.7.	Quality Assurance 

  
 Neoforma shall provide and implement such quality assurance procedures as may be necessary or appropriate for the Services to be provided in accordance
with the Service Levels. Such procedures will include checkpoint reviews, testing and other procedures that will enable Novation to monitor the quality of Neoforma’s performance and upon Novation’s request, will be provided to Novation.

  

	1.8	Measurement and Monitoring Tools 

  
 Neoforma shall utilize such measurement and monitoring tools and procedures as may be necessary or appropriate to measure and report on Neoforma’s
performance of the Services against the applicable Service Levels. Such measurement and monitoring shall permit reporting at a level of detail sufficient to verify compliance with the Service Levels and shall be subject to audit by Novation in
accordance with Section 17 of the Outsourcing Agreement. Neoforma shall provide Novation with information and access to such tools and procedures upon Novation’s request. 
  

	1.9	Customer Satisfaction 

  
 No later than the 12-month anniversary of the Effective Date and on an annual basis thereafter during the Term, Neoforma shall conduct a satisfaction
survey using a mutually agreed upon survey to capture Novation and Member perceptions in respect of the delivery of the Services. Neoforma shall provide the survey and proposed distribution list therefore to Novation for its review and approval. The
individuals set forth in Neoforma’s proposed distribution list shall be a representative sample of Novation end users of the Services and senior management of Novation. Neoforma shall provide Novation with the results of such survey. Promptly
thereafter, the Parties shall jointly review such results and identify any areas of customer dissatisfaction. Neoforma shall prepare a remedial plan and take such action as may be necessary or appropriate to remedy the causes of any recurring or
significant customer dissatisfaction. Alliance members may conduct their own surveys and share these with Neoforma. In order to coordinate communications, the alliances will share pending survey language and timing with Neoforma marketing prior to
distribution. 

	2.	DETAILED DEFINITION OF SERVICE LEVELS 

  

	 	2.1	Systems Up Time 

  
 Neoforma is responsible for maintaining a system service level of at least *%. This means that excluding any scheduled system maintenance activities, the
Novation Marketplace will be available for use by all Users at least *% of the time, 365 days a year, 24 hours a day. Systems Up Time shall be measured on a quarterly basis. 
  

	 	2.2	Transaction Throughput Requirements 

  
 For the purpose of this Service Level Specifications, (i) a “Transaction” is defined as any structured business document (EDI or XML)
that is processed by the Novation Marketplace and (ii) “time within Novation Marketplace Operating Environment” is defined as the period of time during which the Novation Marketplace receives a Transaction, processes the Transaction
and delivers it to an external organization (such as a Member-User, Supplier or other external entity) for further action. Neoforma is responsible for ensuring that the Novation Marketplace processes the various types of Transactions set forth below
within the following time requirements: 
  

	 	  	Maximum Time Within
	 Type of Transaction

	  	 Novation Marketplace Operating

	 Environment

	  	 
	 Purchase Orders from User
	  	*
	 Change Purchase Orders
	  	*
	 Purchase Order Acknowledgments from Supplier
	  	*
	 Ship Notices from Supplier
	  	*
	 Invoices from Supplier
	  	*
	 Price Files from Novation Marketplace to User
	  	*
	 Price Files from Suppliers to Members
	  	*
	 All Outbound Fax Transactions (CDP)
	  	*
	 All Other Non-Fax Transactions
	  	*

  

	 	2.3	Novation Marketplace User Capacity 

  
 Neoforma will ensure that the Novation Marketplace is capable of supporting a User capacity of (i) * total named Users with independent log-ins by
December 31, 2000, with additional capability to scale to * named Users with independent log-ins afterwards if and when needed by Novation, and (ii) * Users accessing the Novation Marketplace simultaneously (with “simultaneously” being
defined as within a one second time period). In connection with the development of the Implementation Plan, Neoforma and Novation shall develop a methodology to more accurately measure the Novation Marketplace’s User Capacity. 
  

	*	Confidential treatment requested 

  

	 	2.4	Novation Marketplace Content Capacity 

  
 Neoforma will ensure that the Novation Marketplace is capable of supporting (i) * separate line items, (ii) * separate pricing and packaging combinations
and (iii) * separate contracts. 
  

	 	2.5	Total Transaction Capacity 

  
 Neoforma will ensure that the Novation Marketplace is capable of supporting the following number of total Transactions annually by the following dates:

  

	 Number of Annual Transactions Supported

	  	 by December 31 of

	 *
	  	2000
	 *
	  	2001
	 *
	  	2002

  

	 	2.6	Peak Time Transactions Capacity 

  
 Neoforma will ensure that the Novation Marketplace is capable of supporting the following number of “Peak Time Transactions” (defined as
Transactions which utilize the Novation Marketplace in a high-traffic period measuring five minutes) by the following dates: 
  

	 Number of Peak Time Transactions Supported

	  	 by December 31 of

	 *
	  	2000
	 *
	  	2001
	 *
	  	2002

  

	 	2.7	Network Connection Speed 

  
 Neoforma will ensure that the Novation Marketplace will provide (i) network connections at speeds of T3 or greater and (ii) backup internet connections at
speeds of T1 or greater. Additionally, these data communication speeds will be reviewed, and the system will be upgraded to higher speeds as data communication technologies with desired specifications become cost effective. 
  

 139 
  

	*	Confidential treatment requested 

	 	2.8	Development/Test/Production Environments 

  
 Parties agree to develop a process that provides for versioning and revision control in the production environment. Parties also agree that a testing
environment will be accessible to Novation across the Internet for the purpose of pre-production approvals. 

 Attachment 1 
  
 Definitions 
  
 “Monthly Fees” means the total of all Contract Transaction Fees and Non-Contract Transaction Fees collected by Neoforma
during any calendar month. 
  
 “Service
Level Credit” means the amount to be credited to Novation upon any failure to meet a particular Service Level, which, in the aggregate, shall be equal * of the Monthly Fees for the month in which Neoforma failed to meet such Service Level.

  

 141 
  

	*	Confidential treatment requested 

 Attachment 2 
  
 Service Level Establishment Process 
  
 Set forth below is the process by which Neoforma and Novation will develop Type II Service Levels during the Term. 
  

	1.	Establishment of Type II Service Levels 

  

	 	1.1	Identification. The PMO shall meet regularly to carry out Neoforma’s and Novation’s responsibilities described in this Service Level Specifications. Within the
applicable timeframes, the PMO shall deliver a report to Neoforma and Novation that contains (i) a detailed description of the proposed Type II Service Level and how it will be measured, (ii) the purpose of the proposed Service Level, and (iii) a
recommendation of an appropriate measurement period to measure such Service Level. None of the foregoing items may contravene the provisions of this Service Level Specifications. 

  

	 	1.2	Measurement. Within 30 days after mutual agreement of Neoforma and Novation to proceed to measure any of such proposed Service Levels, Neoforma shall commence the applicable
measurement period relating to each proposed Service Level. 

  

	 	1.3	Implementation. Upon completion of the applicable measurement period, Neoforma and Novation will meet to consider the reports provided, the materials prepared by the PMO and
the data collection results presented by Neoforma or Novation. Within 30 days of such first consideration, Neoforma and Novation shall implement such proposed Service Level. Neoforma shall begin reporting on such Service Level during the next
succeeding measurement window. 

 Attachment 3 
  
 Type I Service Levels Summary 
  

	 MEASUREMENT

	  	 DEFINITION

	  	 BASE LEVEL SERVICE
 TARGET

	Systems Up Time	  	Percent of time Novation Marketplace is available to all Users, excluding scheduled maintenance	  	 *
 (24 hours a day, 365 days a year)

			
	Novation Marketplace User Capacity	  	Total number of named Users with independent log-ins which the Novation Marketplace can support	  	* by December 31, 2000 (with capability to scale up to * afterwards if and when needed by Novation)
			
	Simultaneous User Capacity	  	Number of Users accessing the Novation Marketplace simultaneously which the Novation Marketplace can support	  	 *

			
	Content Capacity	  	Amount of data which the Novation Marketplace can support	  	 * separate line items;
 * separate pricing and packaging combinations;
 * separate
contracts

			
	Total Transaction Capacity	  	Number of Transactions which the Novation Marketplace can support annually	  	 * by December 31, 2000;
 * by December 31, 2001;
 * by December 31, 2002

			
	Peak Time Transactions Capacity	  	Number of Transactions which the Novation Marketplace can support in a high-traffic period measuring 5 minutes	  	 * by December 31, 2000;
 * by December 31, 2001;
 * by December 31, 2002

			
	Transaction Throughput Requirements	  	Maximum time within the Novation Marketplace for various types of Transactions	  	 PO’s from User     * in 2004
 Change PO’s         * in 2004
 PO
Acknow.                          *
 Ship Notices from Supp.     *
 Invoices from Supplier        *
 Price Files, Ex. to User            *
 Price Files, Supplier to User  *
 Outbound Fax Trans.             *
 Other Non-Fax Trans.            *

			
	Network Connection Speed	  	Novation Marketplace connection speed minimum requirements	  	 T3 for network connections;
 T1 for backup internet connections

  

 143 
  

	*	Confidential treatment requestedAsset Purchase Agreement

  
 Exhibit 10.2 
  
 ASSET
PURCHASE AGREEMENT 
  
 AMONG 
  
 NEOFORMA, INC., 
  
 NEOCARS CORPORATION 
  
 AND 
  
 I-MANY, INC. 
  
 JULY 18, 2003 
  

  

 TABLE OF CONTENTS 
  

	 	  	 	  	Page
			
	 Article 1       
	  	Definitions	  	  1
			
	 1.1    
	  	Certain Defined Terms	  	  1
			
	 Article 2       
	  	Purchase and Sale of Purchased Assets	  	11
			
	 2.1    
	  	Agreement to Sell and Purchase	  	11
			
	 2.2    
	  	Purchased Assets Defined	  	11
			
	 2.3    
	  	Excluded Assets Defined	  	13
			
	 2.4    
	  	Asset Transfer; Passage of Title; Delivery	  	13
			
	 2.5    
	  	Assumption of Specified Liabilities; Exclusion of Liabilities	  	13
			
	 2.6    
	  	No Other Liabilities Assumed	  	14
			
	 2.7    
	  	Purchase Price and Escrow	  	15
			
	 2.8    
	  	Closing	  	16
			
	 2.9    
	  	Closing Deliveries by Seller	  	16
			
	 2.10  
	  	Closing Deliveries by Parent and Buyer	  	17
			
	 2.11  
	  	Securities Law Compliance	  	18
			
	 2.12  
	  	Seller Options and Seller Warrants Not Assumed	  	18
			
	 Article 3       
	  	Representations and Warranties of Seller	  	18
			
	 3.1    
	  	Organization and Good Standing	  	18
			
	 3.2    
	  	Power, Authorization and Validity	  	18
			
	 3.3    
	  	No Conflict	  	19
			
	 3.4    
	  	Litigation	  	19
			
	 3.5    
	  	Taxes	  	20
			
	 3.6    
	  	Seller Exchange Act Documents; Seller Financial Statements	  	20
			
	 3.7    
	  	Absence of Certain Changes	  	21
			
	 3.8    
	  	Title to and Condition of Purchased Assets; Sufficiency of Assets; Warranties	  	22
			
	 3.9    
	  	Contracts and Commitments/Licenses and Permits	  	23
			
	 3.10  
	  	No Default; No Restrictions	  	24
			
	 3.11  
	  	Intellectual Property	  	24
			
	 3.12  
	  	Compliance with Laws	  	28
			
	 3.13  
	  	Certain Transactions and Agreements	  	28

  

 i 

 TABLE OF CONTENTS 
  
 (continued) 
  

	 	  	 	  	Page
			
	 3.14  
	  	Employee Matters	  	28
			
	 3.15  
	  	No Brokers	  	30
			
	 3.16  
	  	Books and Records	  	30
			
	 3.17  
	  	[Intentionally Omitted]	  	31
			
	 3.18  
	  	Fairness of Consideration	  	31
			
	 3.19  
	  	Privacy	  	31
			
	 3.20  
	  	No Other Negotiations	  	31
			
	 3.21  
	  	Disclosure	  	31
			
	 3.22  
	  	Seller Customers	  	32
			
	 3.23  
	  	Environmental Compliance	  	32
			
	 3.24  
	  	Accounts Receivable	  	32
			
	 3.25  
	  	Investment Representations	  	33
			
	 Article 4       
	  	Representations and Warranties of Parent and Buyer	  	33
			
	 4.1    
	  	Organization and Good Standing	  	34
			
	 4.2    
	  	Power; Authorization and Validity	  	34
			
	 4.3    
	  	Parent Exchange Act Documents	  	34
			
	 4.4    
	  	Capitalization	  	35
			
	 4.5    
	  	No Conflict	  	36
			
	 4.6    
	  	Litigation	  	36
			
	 4.7    
	  	No Brokers	  	36
			
	 4.8    
	  	Valid Issuance of Stock	  	36
			
	 4.9    
	  	Nasdaq Requirements	  	36
			
	 4.10  
	  	Absence of Certain Changes	  	36
			
	 4.11  
	  	Registration Obligations	  	36
			
	 Article 5       
	  	Other Covenants and Agreements	  	37
			
	 5.1    
	  	Advice of Changes	  	37
			
	 5.2    
	  	Conduct of Business Prior to the Closing	  	37
			
	 5.3    
	  	Permit; Fairness Hearing	  	39
			
	 5.4    
	  	Seller Stockholder Meeting	  	40
			
	 5.5    
	  	No Other Negotiations	  	41

  

 ii 

 TABLE OF CONTENTS 
  
 (continued) 
  

	 	  	 	  	Page
			
	 5.6    
	  	Access to Information; Right to Use Purchased Assets	  	42
			
	 5.7    
	  	Employment Matters	  	43
			
	 5.8    
	  	Satisfaction of Conditions Precedent	  	43
			
	 5.9    
	  	Public Disclosure	  	44
			
	 5.10  
	  	Further Actions	  	44
			
	 5.11  
	  	Consents; Cooperation	  	44
			
	 5.12  
	  	Lock-Up of Guaranteed Shares	  	48
			
	 5.13  
	  	Confidentiality	  	50
			
	 5.14  
	  	Nasdaq Listing	  	50
			
	 5.15  
	  	Post-Closing Retention	  	50
			
	 5.16  
	  	Information Provided	  	51
			
	 5.17  
	  	No Solicitation of Vote by Seller	  	51
			
	 5.18  
	  	Non-Compete	  	51
			
	 5.19  
	  	Blue Sky Laws	  	52
			
	 5.20  
	  	Furnishing of Outstanding Business Proposals	  	52
			
	 5.21  
	  	Purchase Price Allocation	  	52
			
	 5.22  
	  	Transfer of Additional Seller Technology	  	52
			
	 5.23  
	  	Collection of Accounts Receivable	  	52
			
	 5.24  
	  	Performance of Contractual Obligations	  	52
			
	 5.25  
	  	Cooperation with Respect to Unallocated Assets	  	53
			
	 Article 6       
	  	Tax Matters	  	53
			
	 6.1    
	  	Taxes Relating to Sale of Purchased Assets	  	53
			
	 6.2    
	  	Property Taxes	  	53
			
	 6.3    
	  	Other Taxes	  	53
			
	 6.4    
	  	Treatment of Indemnity Payments	  	53
			
	 6.5    
	  	Cooperation	  	53
			
	 Article 7       
	  	Indemnification	  	54
			
	 7.1    
	  	Survival of Representations and Warranties and Indemnification Obligations and Indemnification Obligations	  	54
			
	 7.2    
	  	Indemnification Obligations of Seller	  	54
			
	 7.3    
	  	Indemnification Obligations of Parent	  	55

  

 iii 

 TABLE OF CONTENTS 
  
 (continued) 
  

	 	  	 	  	Page
			
	 7.4    
	  	Limitations on Indemnification Obligations	  	55
			
	 7.5    
	  	Indemnification Procedures	  	57
			
	 7.6    
	  	Survival of Claims	  	59
			
	 Article 8       
	  	Conditions to Closing	  	59
			
	 8.1    
	  	Conditions to Obligations of Seller	  	59
			
	 8.2    
	  	Conditions to Obligations of Parent and Buyer	  	60
			
	 Article 9       
	  	Termination of Agreement	  	62
			
	 9.1    
	  	Termination by Mutual Consent	  	62
			
	 9.2    
	  	Unilateral Termination	  	62
			
	 9.3    
	  	Notice of Termination; Effect of Termination	  	63
			
	 9.4    
	  	Fees	  	63
			
	 9.5    
	  	Liquidated Damages	  	64
			
	 Article 10     
	  	General Provisions	  	64
			
	 10.1  
	  	Dispute Resolution	  	64
			
	 10.2  
	  	Expenses	  	65
			
	 10.3  
	  	Notices	  	65
			
	 10.4  
	  	Headings	  	66
			
	 10.5  
	  	Severability	  	66
			
	 10.6  
	  	Entire Agreement	  	66
			
	 10.7  
	  	Assignment	  	66
			
	 10.8  
	  	No Third-Party Beneficiaries	  	66
			
	 10.9  
	  	Amendment; Waiver	  	67
			
	 10.10
	  	Counterparts	  	67
			
	 10.11
	  	Construction of Agreement	  	67
			
	 10.12
	  	Attorneys’ Fees	  	67
			
	 10.13
	  	Specific Performance	  	67
			
	 10.14
	  	Passage of Title and Risk of Loss	  	67
			
	 10.15
	  	Governing Law; Forum	  	67

  

 iv 

 TABLE OF CONTENTS 
  

	EXHIBITS:	  	 
	 Exhibit A-1:
	  	Perpetual Software Distribution and License Agreement
	 Exhibit A-2:
	  	Term-Limited Software Distribution and License Agreement
	 Exhibit B:
	  	Escrow Agreement
	 Exhibit C:
	  	Earnout Schedule
	 Exhibit D:
	  	Bill of Sale and Assumption Agreement
	 Exhibit E:
	  	Patent Assignment
	 Exhibit F:
	  	Copyright Assignment
	 Exhibit G:
	  	Mark Assignment

  

 v 

 ASSET PURCHASE AGREEMENT 
  
 This ASSET PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of July 18, 2003 (the
“Agreement Date”) by and among Neoforma, Inc., a Delaware corporation (“Parent”), Neocars Corporation, a Delaware corporation that is a wholly-owned subsidiary of Parent
(“Buyer”), and I-many, Inc., a Delaware corporation (“Seller”). 
  
 RECITALS 
  
 A. Seller, among other things, is engaged in the business of providing software and related services related to the management of contractual relationships in the Life Sciences Market (as defined below) (the
“Business”). 
  
 B. Seller desires to sell
and assign to Buyer, and Buyer desires to purchase and acquire from Seller, certain assets related to the Business and Buyer agrees to assume certain of the liabilities of Seller related to the Business on the terms and conditions set forth in this
Agreement. 
  
 C. Concurrently with the execution of this
Agreement, Parent, Buyer and Seller are entering into a Perpetual Software Distribution and License Agreement and a Term-Limited Software Distribution and License Agreement (the “Software Distribution and License Agreements”)
in the forms attached hereto as Exhibit A-1 and Exhibit A-2, pursuant to which Seller and Parent have agreed to license and/or re-sell certain products and services related to the Business and not compete against one
another in specified industries and product categories. 
  
 D. In
connection with this Agreement, Parent, Buyer and Seller are entering into an escrow agreement (the “Escrow Agreement”) in the form attached hereto as Exhibit B pursuant to which a portion of the Purchase Price
(as defined below) to be paid by Buyer hereunder will be held to secure Seller’s indemnification obligations hereunder. 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual agreements set forth herein, the parties hereby agree as follows: 
  
 ARTICLE 1 
 DEFINITIONS 
  
 1.1 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings: 
  
 “AAA” has the meaning set forth in Section 10.1. 
  
 “AAA Rules” has the meaning set forth in Section 10.1. 
  
 “Accounts Receivable” means all trade accounts
receivable and any other evidences of indebtedness of and rights to receive payment and the full benefit of all security for such accounts or rights to payment, in each case that are related to the Business and that would be characterized as
accounts receivable in accordance with GAAP. 
  
 “actual knowledge” with respect to any fact, circumstance, event or other matter in question means (i) when used in Section 3.11 of this Agreement, the knowledge of the Seller Knowledge Parties of such fact,
circumstance, event or other matter after reasonable inquiry of (A) all employees of Seller and 

 
(B) Seller’s outside legal counsel for intellectual property matters and (ii) when used other than in Section 3.11 of this Agreement, the actual
knowledge (without any requirement of reasonable inquiry) of the Seller Knowledge Parties of such fact, circumstance or other matter. 
  
 “Acquisition Transaction” has the meaning set forth in Section 3.20. 
  
 “Affiliate” means, with respect to any specified person, any other person that directly or
indirectly controls, is controlled by, or is under common control with, such specified person (where, for purposes of this definition, “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a person, whether through the ownership of stock, as an officer, director,
trustee or executor, by contract or otherwise). 
  
 “Agreement” and “Agreement Date” have the respective meanings set forth in the introductory paragraph of this Agreement. 
  
 “Applicable Legal Requirements” means, collectively, all foreign, federal, state, local or other
laws, statutes, constitutions, resolutions, ordinances, codes, edicts, decrees, orders, writs, injunctions, awards, judgments, rules, regulations, rulings or requirements issued, enacted, adopted, promulgated, implemented or otherwise put into
effect by or under the authority of any Governmental Authority that is applicable to the subject entity and its properties, assets and business. 
  
 “Asset Purchase” has the meaning set forth in Section 3.2(a). 
  
 “Assigned Agreements” has the meaning set forth in Section 2.2(g). 
  
 “Assumed Liabilities” has the meaning set forth in
Section 2.5. 
  
 “Bill of Sale and Assumption
Agreement” has the meaning set forth in Section 2.9(a). 
  
 “Books and Records” means, to the extent not already included in the Documentation, all books, records, books of account, financial records, financial statements, files, data and papers, whether in hard copy or
computer format, used or held for use by Seller in connection with the conduct of the Business (other than the corporate minute books of Seller), including, to the extent used in connection with the Business, engineering information, sales and
promotional literature, manuals and data, sales and purchase correspondence, lists of present and former suppliers, lists of present and former personnel, and any Tax Return relating exclusively to any Tax imposed on the Purchased Assets.

  
 “Business” has the meaning set forth
in Paragraph A of the Recitals to this Agreement. 
  
 “Business Day” means a day, other than a Saturday or Sunday, on which banks are open for ordinary banking business in California. 
  
 “Business Employees” are those officers and employees of Seller listed on Schedule 1.1(a)
attached hereto who dedicate a substantial portion of their working hours towards the Business, and consultants and independent contractors listed on Schedule 1.1(b) attached hereto who perform services in connection with the Business.

  
 “Buyer Ancillary Agreements” means the
Escrow Agreement, the Software Distribution and License Agreements, the Bill of Sale and Assumption Agreement and all other assumptions, certificates and documents that Buyer is required to execute and deliver pursuant to this Agreement. 

 

 2 

 “Buyer” has the meaning set forth in the introductory paragraph of this
Agreement. 
  
 “California Commissioner”
means the California Commissioner of Corporations. 
  
 “California Securities Law” means the California Corporate Securities Law of 1968, as amended, and the rules and regulations promulgated thereunder. 
  
 “Claim” has the meaning set forth in Section 7.5(a). 
  
 “Closing Shares” has the meaning set forth in Section
2.7(a)(i). 
  
 “Closing” and
“Closing Date” have the respective meanings set forth in Section 2.8. 
  
 “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended. 
  
 “Code” means the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. 
  
 “Consented Maintenance Agreement” has the meaning set
forth in Section 5.11(c)(ii). 
  
 “Consented Services
Agreement” has the meaning set forth in Section 5.11(d)(ii). 
  
 “Contested Claim” has the meaning set forth in Section 7.5(d)(ii). 
  
 “Contract” means any written, oral or other agreement, contract, subcontract, lease, sublease, mortgage, instrument, indenture,
note, option, warranty, purchase order, license, sublicense, insurance policy, benefit plan, memorandum of understanding, letter of intent, promise, arrangement, commitment or undertaking of any nature. 
  
 “Copyright Assignment” has the meaning set forth in
Section 2.9(d). 
  
 “Damages” means any
and all claims, demands, suits, actions, causes of actions, losses, costs, damages, Liabilities and expenses, including reasonable attorneys’ fees, other professionals’ and experts’ reasonable fees and court or arbitration costs.

  
 “Deferred Revenue” means all amounts
received or entitled to be received from customers of the Business that would be characterized as deferred revenue in accordance with GAAP as of the Closing. 
  
 “Determination Date” means (i) with respect to the Closing Shares, the Closing Date, (ii) with respect to the Earnout Shares, the
date such Earnout Shares are issued in accordance with the Earnout Schedule and (iii) with respect to the Indemnification Shares, the Closing Date. 
  
 “Dispute Notice” has the meaning set forth in Section 5.11(e)(ii). 
  
 “Documentation” means, collectively, programmers’ notes or logs, source code annotations, user
guides, manuals, instructions, software architecture designs, layouts, any know-how, and any other designs, plans, drawings, documentation, materials, supplier lists, software source code and object code, net lists, photographs, development tools,
blueprints, media, memoranda and records that are primarily related to or otherwise necessary for the use and exploitation of any Seller Technology Assets, whether in tangible or intangible form, whether owned by Seller or held by Seller under any
licenses or sublicenses (or similar grants of rights). 
  

 3 

 “Earnout Period” has the meaning set forth in the Earnout Schedule. 

 
 “Earnout Schedule” means Exhibit C
attached hereto. 
  
 “Earnout Shares” has
the meaning set forth in Section 2.7(b). 
  
 “Employee
Plan” means each employment and consulting Contract, pension, retirement, disability, medical, dental or other health plan, life insurance or other death benefit plan, profit sharing, deferred compensation agreement, stock, option,
bonus or other incentive plan, vacation, sick, holiday or other paid leave plan, severance plan or other similar employee benefit plan, including all “employee benefit plans” as defined in Section 3(3) of ERISA maintained by Seller or any
of its affiliates, which covers any Business Employee. 
  
 “Encumbrance” means any pledge, lien, collateral assignment, security interest, deed of trust, mortgage, title retention device, collateral assignment, claim, license or other contractual restriction (including any
restriction on the transfer of any asset, the receipt of income derived from any asset or on the possession, exercise or transfer of any other attribute of ownership of any asset), conditional sale or other security arrangement, or any charge,
adverse claim of title, ownership or right to use or any other encumbrance of any kind whatsoever, other than (i) mechanic’s, materialmen’s, landlord’s and similar liens, (ii) liens arising under worker’s compensation,
unemployment insurance, social security, retirement and similar legislation, (iii) liens for Taxes not yet due and payable, (iv) liens for Taxes that are being contested in good faith and by appropriate proceedings and which are set forth on
Schedule 3.5 to the Seller Disclosure Letter, (v) liens arising solely by action of Parent or the Buyer and (vi) liens relating to capitalized lease financings or purchase money financings that have been entered into in the ordinary course of
business, provided that with respect to clauses (i) through (iii), such liens do not materially and adversely impair the use or value of the Purchased Assets and do not secure outstanding liabilities that have not been paid when due.

  
 “Environmental Laws” means any
federal, state, local or foreign law (including common law), treaty, judicial decision, regulation, ordinance, code, legally binding guideline or policy or rule of the United States or of any other country or any judgment, order, decree, injunction,
permit or governmental restriction or any agreement with any Governmental Authority, relating to the environment, natural resources, human health and safety or to exposure to Hazardous Substances, and includes the Comprehensive Environmental
Response Compensation and Liability Act, 42 U.S.C. §9601 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. §1801 et seq., the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq., the Clean Water Act, 33 U.S.C.
Sections 1251 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Toxic Substance Control Act, 15 U.S.C. §2601 et seq., the Oil Pollution Act of 1990, 33 U.S.C. §2701 et seq., and the Occupational Safety and Health Act, 29 U.S.C.
§651 et seq., as such laws have been amended or supplemented, and the regulations promulgated pursuant thereto, and all analogous state or local statutes and any applicable transfer statutes. 
  
 “Environmental Liabilities” means any and all
Liabilities arising in connection with or in any way relating to Seller (or any predecessor of Seller or any prior owner of all or part of Seller’s business and assets), any property now or previously owned, leased or operated by Seller, the
Business (as currently or previously conducted by Seller), the Purchased Assets or any activities or operations occurring or conducted at the real property owned, leased or used by Seller (including offsite disposal), whether accrued, contingent,
absolute, determined, determinable or otherwise, which (i) arise under any Environmental Laws and (ii) relate to actions occurring on or prior to the Closing Date. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 
  

 4 

 “Escrow Agent” has the meaning set forth in the Escrow Agreement. 
  
 “Escrow Agreement” has the meaning set forth in
Paragraph D of the Recitals to this Agreement. 
  
 “Escrow Period” has the meaning set forth in Section 2.7(a). 
  
 “Escrow Shares” has the meaning set forth in Section 2.7(a). 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder. 
  
 “Excluded Assets” has the meaning set forth in
Section 2.3. 
  
 “Excluded Liabilities”
has the meaning set forth in Section 2.6. 
  
 “Facility” has the meaning set forth in Section 3.23. 
  
 “Final Award” has the meaning set forth in Section 10.1(e). 
  
 “GAAP” means United States generally accepted accounting principles in effect at the time of any determination, which are applied
on a consistent basis. 
  
 “Governmental
Authority” means any (a) nation, province, state, county, city, town, district or other jurisdiction of any nature; (b) federal, provincial, state, local, municipal, foreign or other government; (c) governmental or quasi-governmental
authority of any nature (including any governmental agency, branch, department, official or entity and any court or other tribunal); (d) multi-national organization or body; or (e) body exercising, or entitled to exercise, any administrative,
executive, judicial, legislative, police, regulatory, or taxing power of any nature. 
  
 “Governmental Permit” has the meaning set forth in Section 3.12. 
  
 “Guaranteed Shares” has the meaning set forth in Section 2.7(a). 
  
 “Hazardous Substances” means any pollutant, contaminant, waste or chemical or any toxic,
radioactive, ignitable, corrosive, reactive or otherwise hazardous or toxic substance, having any constituent elements displaying any of the foregoing characteristics, as defined in or regulated under any applicable Environmental Laws. 

 
 “Hearing” has the meaning set forth in Section
5.3(a). 
  
 “Hearing Notice” has the
meaning set forth in Section 5.3(a). 
  
 “Incurred
Damages” has the meaning set forth in Section 10.1(e). 
  
 “Indemnification Cap” has the meaning set forth in Section 7.4(a). 
  
 “Indemnification Shares” has the meaning set forth in Section 7.4(b). 
  
 “Indemnified Person” has the meaning set forth in
Section 7.5(a). 
  
 “Indemnifying Person”
has the meaning set forth in Section 7.5(c)(i). 
  

 5 

 “Information Statement” has the meaning set forth in Section 5.3(a). 

 
 “Intellectual Property Rights” means any rights
exercisable or available in any jurisdiction of the world constituting industrial or intellectual property rights or protections, whether owned, licensed or otherwise used or held, including without limitation all of the following: (i) all patents,
patent applications and the inventions, designs and improvements described and claimed therein, patentable inventions, and other patent rights (including any divisions, continuations, continuations-in-part, substitutions, or reissues thereof,
whether or not patents are issued on any such applications and whether or not any such applications are amended, modified, withdrawn, or resubmitted); (ii) all trademarks, service marks, trade dress, trade names, brand names, Internet domain names
and URLs, designs, logos, or corporate names (including, in each case, the goodwill associated therewith), whether registered or unregistered, and all registrations and applications for registration thereof; (iii) all copyrights, including all
renewals and extensions, copyright registrations and applications for registration, and non-registered copyrights and moral rights; (iv) all trade secrets, confidential business information, concepts, ideas, designs, research or development
information, processes, procedures, techniques, technical information, specifications, operating and maintenance manuals, engineering drawings, methods, know-how, data, mask works, discoveries, inventions, modifications, extensions, improvements,
and other proprietary rights (whether or not patentable or subject to copyright, trademark, or trade secret protection); (v) all computer software programs, including all source code, object code and documentation related thereto; and (vi) all
databases and data collections and rights therein. 
  
 “IRS” means the Internal Revenue Service. 
  
 “J.A.M.S.” has the meaning set forth in Section 10.1. 
  
 “knowledge” of a party, with respect to any fact, circumstance, event or other matter in question, means the knowledge of the
Seller Knowledge Parties or the Parent Knowledge Parties, as the case may be, of such fact, circumstance, event or other matter after reasonable inquiry. 
  
 “Liabilities” means debts, liabilities and obligations, whether accrued or fixed, absolute or contingent, matured or unmatured,
determined or determinable, known or unknown, including those arising under any law (under law or equity and under any theory of liability), action or governmental order and those arising under any Contract. 
  
 “License Excluded Assets” has the meaning set forth
in Section 2.3. 
  
 “Life Sciences Market”
means all (i) healthcare providers (as evidenced by state licensure or other legal authorization to engage in the treatment of illness, injury or disease), including but not limited to acute care hospitals, physicians, pharmacies and clinical
laboratories, (ii) those entities and any division, department or other subdivision of an entity which sell, directly or through third parties, services or supplies used in direct patient treatment, including without limitation pharmaceutical and
medical/surgical manufacturers and distributors, (iii) healthcare group purchasing organizations, (iv) pharmacy benefit managers, (v) healthcare contract research organizations, (vi) healthcare biotechnology and healthcare biologically-oriented
nanotechnology companies, (vii) medical research laboratories, (viii) those entities and any division, department or other subdivision of an entity which supply (or supplies) medical capital equipment to healthcare providers (excluding any division,
department or other subdivision of such entity which does not supply medical capital equipment to healthcare providers), and (ix) those entities and any division, department or other subdivision of an entity which sell, directly or through third
parties, services or supplies used in billing for or the reimbursement of the treatment of illness, injury or disease (excluding any division, department or other subdivision of such entity which 

  

 6 

 
does not sell, directly or through third parties, services or supplies used in billing for or the reimbursement of the treatment of illness, injury or
disease). 
  
 “Mark Assignment” has the
meaning set forth in Section 2.9(d). 
  
 “Material
Adverse Change” when used in reference to (a) Seller or Parent, means any change, event, violation, inaccuracy, circumstance or effect (regardless of whether such events or changes are inconsistent with the representations or warranties
made by such person in this Agreement) that is or is reasonably likely to be individually or in the aggregate, materially adverse to the condition (financial or otherwise), business, prospects, properties, assets (including intangible assets),
employees, operations or results of operations of Seller, Parent or Buyer, as the case may be, and their Subsidiaries, taken as a whole, and (b) the Purchased Assets or the Business, means a material diminution in the condition or ability to use
such Purchased Assets or the condition (financial or otherwise), business, prospects, properties, assets (including intangible assets), employees, operations or results of operations of the Business. 
  
 “Material Adverse Effect,” when used in reference to
(a) Seller, Parent or Buyer, means any change, event, violation, inaccuracy, circumstance or effect (regardless of whether such events or changes are inconsistent with the representations or warranties made by such person in this Agreement) that is
or is reasonably likely to be, individually or in the aggregate, materially adverse to the condition (financial or otherwise), business, properties, assets (including intangible assets), employees, operations or results of operations of Seller,
Parent or Buyer, as the case may be, and their Subsidiaries, taken as a whole, and (b) the Purchased Assets or the Business, means a material diminution in the value, condition, status or ability to use such Purchased Assets or Business. 

 
 “Material Seller Customer” has the meaning set
forth in Section 5.2. 
  
 “Nasdaq Website”
means the official website of the Nasdaq Stock Market with the URL http://www.nasdaq.com. 
  
 “Notice of Claim” has the meaning set forth in Section 7.5(a). 
  
 “Notice of Superior Offer” has the meaning set forth in Section 5.5(c). 
  
 “Open Source Materials” has the meaning set forth in
Section 3.11(m). 
  
 “Parent” has the
meaning set forth in the introductory paragraph of this Agreement. 
  
 “Parent Average Stock Price” means, with respect to any Determination Date, the average of the closing sale prices per share of Parent Common Stock, as reported on the Nasdaq National Market on the Nasdaq Website,
during the ten consecutive trading days ending on and including the Business Day prior to such Determination Date. 
  
 “Parent Common Stock” means the common stock of Parent, $0.001 par value per share. 
  
 “Parent Disclosure Letter” has the meaning set forth
in the introductory paragraph of Article 4, “Representations and Warranties of Parent and Buyer.” 
  
 “Parent Exchange Act Documents” has the meaning set forth in Section 4.3(a). 
  
 “Parent Financial Statements” has the meaning set
forth in Section 4.3. 
  

 7 

 “Parent Indemnified Person” and “Parent Indemnified
Persons” have the respective meanings set forth in Section 7.3. 
  
 “Parent Indemnifying Person” has the meaning set forth in Section 7.2. 
  
 “Parent Knowledge Parties” means each of Robert Zollars, Daniel Eckert, Andrew Guggenhime, Steven Wigginton, Herbert Cross,
Stephen Phillips and Jason Somer. 
  
 “Parent Preferred
Stock” means the preferred stock of Parent, $0.001 par value per share. 
  
 “Parent Stock Plans” has the meaning set forth in Section 4.4(a). 
  
 “Patent Assignment” has the meaning set forth in Section 2.9(d). 
  
 “Permit” has the meaning set forth in Section 2.11. 
  
 “Permit Application” has the meaning set forth in
Section 5.3(a). 
  
 “person” means any
individual, partnership, firm, corporation, association, trust, unincorporated organization or other entity. 
  
 “Prepaid Assets” has the meaning set forth in Section 2.2(i). 
  
 “Pre-Closing Period” has the meaning set forth in Section 5.2. 
  
 “Prior Facility” has the meaning set forth in Section
3.23. 
  
 “Privacy Practices” has the
meaning set forth in Section 3.19. 
  
 “Professional
Services Agreement” has the meaning set forth in Section 5.11(d). 
  
 “Purchase Price” has the meaning set forth in Section 2.7(a). 
  
 “Purchased Assets” has the meaning set forth in Section 2.2. 
  
 “Receivables List” has the meaning set forth in Section 3.24. 
  
 “Required Consent Maintenance Agreement” has the
meaning set forth in Section 5.11(c)(i). 
  
 “Required
Consent Services Agreement” has the meaning set forth in Section 5.11(d)(i). 
  
 “Resale Registration Statement” has the meaning set forth in Section 2.11. 
  
 “Restricted Period” has the meaning set forth in Section 5.18. 
  
 “SEC” means the United States Securities and Exchange Commission. 
  
 “Securities Act” means the Securities Act of 1933, as
amended, and the rules and regulations thereunder. 
  
 “Selected Employees” has the meaning set forth in Section 5.7(a). 
  

 8 

 “Seller” has the meaning set forth in the introductory paragraph of this
Agreement. 
  
 “Seller Agreements” has the
meaning set forth in Section 3.9. 
  
 “Seller Ancillary
Agreements” means the Escrow Agreement, Software Distribution and License Agreements, Bill of Sale and Assumption Agreement and all other assignments, certificates and documents that Seller is required to execute and deliver pursuant to
this Agreement. 
  
 “Seller Balance Sheet”
has the meaning set forth in Section 3.6(b). 
  
 “Seller Common Stock” means the common stock of Seller, $0.0001 par value per share. 
  
 “Seller Confidential Information” has the meaning set forth in Section 5.13(b) 
  
 “Seller Customer Assets” has the meaning set forth in
Section 2.2(j). 
  
 “Seller Customers” has
the meaning set forth in Section 3.22. 
  
 “Seller
Disclosure Letter” has the meaning set forth in the introductory paragraph of Article 3, “Representations and Warranties of Seller.” 
  
 “Seller Exchange Act Documents” has the meaning set forth in Section 3.6(a). 
  
 “Seller Indemnified Person” and “Seller
Indemnified Persons” have the respective meaning set forth in Section 7.3. 
  
 “Seller Indemnifying Person” has the meaning set forth in Section 7.2. 
  
 “Seller IP Rights” has the meaning set forth in Section 3.11(a). 
  
 “Seller IP Rights Agreements” has the meaning set forth in Section 3.11(b). 
  
 “Seller Knowledge Parties” means each of A. Leigh
Powell, Terry Nicholson, Kevin Collins, Robert G. Schwartz, Roger Guerin, Alan Cardinal, Todd Venetianer, Stephen van Houten, Leonard Rainow, Scott Landry, Tim Curran, Adam Fine, Ed Lawrence, Donna Senkbeil and all project managers of Seller with
respect to the projects for which he or she is responsible. 
  
 “Seller Options” means outstanding options to purchase shares of Seller Common Stock. 
  
 “Seller Proxy Statement” has the meaning set forth in Section 5.4(a). 
  
 “Seller Receivables” means all Accounts Receivable,
notes receivable and other receivables, as well as unbilled work-in-progress, of Seller and the Business. 
  
 “Seller Stockholder Meeting” has the meaning set forth in Section 3.21(b). 
  
 “Seller Source Code” has the meaning set forth in
Section 3.11(i). 
  
 “Seller Tangible Personal
Property” has the meaning set forth in Section 2.2(l). 
  
 “Seller Tax Period” has the meaning set forth in Section 6.2. 
  

 9 

 “Seller Technology” means (all computer software (including software programs,
objects, modules, routines, algorithms and any other software code) in both source code and object code form, copyrightable works, inventions (whether or not patentable), trade secrets (including Seller’s customer lists), know-how, processes,
designs, techniques, confidential business information and other proprietary information and technologies used in, in development for, or which are otherwise necessary for, conducting the Business, including without limitation any of the above
related to software programs and updates, upgrades, new versions and new releases of such software programs currently under development by or for Seller, whether owned by Seller or held by Seller under any licenses or sublicenses (or similar grants
of rights) excluding the Seller-Licensed IP Rights and the Excluded Assets). 
  
 “Seller Technology Assets” means all of the Seller Technology described on Schedule 1.1(c) attached hereto. The Seller Technology Assets specifically exclude all other Seller Technology
not described on Schedule 1.1(c) (the “Retained Seller Technology Assets”). 
  
 “Seller Warrants” means outstanding warrants to purchase shares of Seller Common Stock. 
  
 “Seller-Licensed IP Rights” has the meaning set forth
in Section 3.11(a). 
  
 “Seller-Owned IP
Rights” has the meaning set forth in Section 3.11(a). 
  
 “Shares” means, collectively, the Closing Shares, the Escrow Shares and the Earnout Shares. 
  
 “Shares Cap” has the meaning set forth in Section 2.7(c). 
  
 “Significant Customer” has the meaning set forth in Section 5.11(h). 
  
 “Significant Customer Agreement” has the meaning set
forth in Section 5.11(h). 
  
 “Software Distribution
and License Agreements” has the meaning set forth in Paragraph C of the Recitals to this Agreement. 
  
 “Subsidiary” of a specified person means any corporation, partnership, limited liability company, joint venture or other legal
entity of which the specified entity (either alone or through or together with any other Subsidiary) owns, directly or indirectly, 50% or more of the stock or other equity or partnership interests the holders of which are generally entitled to vote
for the election of the board of directors or other governing body of such corporation or other legal entity. 
  
 “Superior Offer” has the meaning set forth in Section 5.5(c). 
  
 “Tax” or “Taxes” means foreign, federal, state and local taxes of any kind
whatsoever (whether payable directly or by withholding), including alternative or add-on minimum income, gains, estimated employment, license, documentary, stamp, occupation, recording, transfer, sales, use, excise, franchise, ad valorem, property,
property transfer, inventory, value added, withholding and payroll taxes (including all taxes or other payments required to be withheld by an employer and paid over to any Governmental Authority), or other similar payments, together with any
interest, penalties or additions to tax relating thereto. 
  
 “Tax Returns” means all required foreign, federal, state and local returns, estimates, information statements and reports required to be supplied to a Taxing authority in connection with Taxes. 
  
 “Termination Date” has the meaning set forth in
Section 9.2(b). 
  

 10 

 “Third-Party Claim” has the meaning set forth in Section 7.5(a). 
  
 “Total Maintenance Fees” has the meaning set forth in
Section 5.11(c)(i). 
  
 “Total Required Consent
Maintenance Fees” has the meaning set forth in Section 5.11(d)(i). 
  
 “Total Required Consent Services Fees.” has the meaning set forth in Section 5.11(d)(i). 
  
 “Total Services Fees” has the meaning set forth in Section 5.11(d)(i). 
  
 “Triggering Event” has the meaning set forth in
Section 9.2(f). 
  
 “Transaction Taxes”
has the meaning set forth in Section 6.1. 
  
 “Unallocated Assets” has the meaning set forth in Section 5.25. 
  
 “URL” means Uniform Resource Locator. 
  
 “WARN Act” means the Worker Adjustment Retraining and Notification Act, as amended. 
  
 ARTICLE 2 
 PURCHASE AND SALE OF PURCHASED ASSETS 
  
 2.1 Agreement to Sell and Purchase. Subject to the terms and conditions of this Agreement and in reliance on the representations, warranties and
covenants set forth in this Agreement, at the Closing, Seller will sell, assign, transfer, convey and deliver to Buyer, and Buyer will purchase and acquire, all right, title and interest in and to the Purchased Assets, subject to Section 2.4(c). The
Purchased Assets shall be sold, assigned, transferred and conveyed to Buyer on the Closing Date, free and clear of all Encumbrances. 
  
 2.2 Purchased Assets Defined. As used in this Agreement, the term “Purchased Assets” means, collectively, all of the
following: 
  
 (a) all of the Seller Technology
Assets, in intangible form; 
  
 (b) all
Documentation primarily or exclusively used in connection with the Business and copies of all other Documentation, in both cases in intangible form; 
  
 (c) any and all copies in tangible medium and any and all other tangible embodiments of all of the Seller Technology Assets and all
Documentation primarily or exclusively used in connection with the Business and copies of all other Documentation; 
  
 (d) all Intellectual Property Rights owned by Seller, used in or related to the Purchased Assets, including all patents, rights in patent
applications and invention rights listed in the Patent Assignment, all copyrights listed in the Copyright Assignment, all marks listed in the Mark Assignment and all domain names listed in the Domain Name Assignment; 
  
 (e) all Books and Records primarily or exclusively used in
connection with the Business and copies of all other Books and Records; 
  

 11 

 (f) to the extent lawfully transferable and applicable exclusively or primarily to the
Business, all Governmental Permits; 
  
 (g) the
Contracts listed on Schedule 2.2(g) attached hereto (collectively, the “Assigned Agreements”); provided, however that to the extent any Contract related to the Business existing on the Agreement Date that has not been
disclosed to Buyer is discovered after the Agreement Date or after the Closing Date, Buyer will have the right to elect whether or not such Contract shall be deemed an Assigned Agreement. Assigned Agreements will also include any Contract with a
customer related to the Business entered into after the Agreement Date without violation of Section 5.2 of this Agreement. 
  
 (h) such Accounts Receivable of Seller arising out of or in connection with the Business that are mutually selected by Seller and Buyer
five Business Days prior to the Closing Date in an outstanding amount (net of any reserves established or required under GAAP) equal to the Deferred Revenue of Seller that is assumed pursuant to Section 2.5(b); provided, however, that if the
amount of such Accounts Receivable is less than the amount of such Deferred Revenue, Seller will provide to Buyer cash in an amount equal to the difference between the amount of such Accounts Receivable and the amount of such Deferred Revenue;

  
 (i) all prepaid expenses, deposits and
similar prepaid items relating to the Business existing on the Closing Date, of the type set forth on Schedule 2.2(i) attached hereto (collectively, the “Prepaid Assets”), which exhibit will be updated to reflect the
Prepaid Assets outstanding as of the Closing Date at least one Business Day prior to the Closing Date, but excluding those prepaid expenses, deposits and similar prepaid items set forth on Schedule 2.2(i) attached hereto; 
  
 (j) a complete list of all Seller Customers and prospect
lists of the Business (whether current or prior), and Seller Customer account histories, correspondence, notes and plans for Seller Customers or prospective customers of the Business, including all data regarding such Seller Customers, and all other
marketing, promotional, Seller Customer and sales information, whether stored in written form, magnetic or electronic media or in any other form, in each case only to the extent any such Seller Customer or prospect list is with respect to the
Business (collectively, the “Seller Customer Assets”); 
  
 (k) all rights, claims, credits, causes of action or rights of setoff of Seller against third parties arising out of the Purchased Assets
or the Business, whether liquidated or unliquidated, fixed or contingent, and all rights of Seller arising out of the Purchased Assets or the Business, under or pursuant to all warranties, representations and guarantees made by suppliers,
manufacturers, contractors and other third parties, other than those related primarily or exclusively to the Excluded Assets; 
  
 (l) all tangible assets listed on Schedule 2.2(l) attached hereto (collectively, the “Seller Tangible Personal
Property”); 
  
 (m) all policy
rights and proceeds payable under any insurance policy covering the Purchased Assets for damage to the Purchased Assets or other insurable or covered event affecting the condition of the Purchased Assets occurring prior to the Closing;
provided, however that to the extent any policy rights and proceeds payable under any insurance policy covering the Purchased Assets for damage to the Purchased Assets also relate to any Excluded Assets, then such policy rights and
proceeds will be apportioned based on the value of the Purchased Assets covered under any such insurance policy versus the value of the Excluded Assets covered under any such insurance policy; 
  

 12 

 (n) all goodwill associated with the Purchased Assets and the Business, together with the
right to represent to third parties that Parent is the successor to the Business; and 
  
 (o) all proceeds from the Summit trade show to be held in October 2003, net of any expenses incurred by Seller prior to Closing in
connection with hosting such trade show, which expenses must be consistent with Seller’s past practices in hosting similar trade shows. 
  
 2.3 Excluded Assets Defined. As used in this Agreement, the term “Excluded Assets” means all assets of Seller that are not
expressly stated herein to be Purchased Assets, including those assets related to or otherwise necessary for the conduct of the Business by Seller as of the date of this Agreement that are listed on Schedule 2.3 to the Seller Disclosure
Letter and which shall be licensed by Seller to Parent and Buyer pursuant to the Software Distribution and License Agreements (the “Licensed Excluded Assets”). Subject to this Section 2.3, all Excluded Assets will be retained
by Seller or its licensors and will not be sold, assigned, transferred or conveyed to Buyer. 
  
 2.4 Asset Transfer; Passage of Title; Delivery. 
  
 (a) Title Passage. Upon the Closing, all of the right, title and interest of Seller in and to all of the Purchased Assets shall
pass to Buyer, and Seller shall deliver to Buyer possession or control of all of the Purchased Assets and shall further deliver to Buyer proper assignments, conveyances and bills of sale sufficient to convey to Buyer good (and in the case of
tangible assets, marketable) title to all of the Purchased Assets, free and clear of all Encumbrances, as well as such other instruments of conveyance as Buyer may reasonably determine are necessary (both at and after the Closing) to effect or
evidence the transfers contemplated hereby. 
  
 (b) Method of Delivery of Assets. At the Closing, Seller shall deliver or cause to be delivered to Buyer all of the Purchased Assets, which shall be delivered to Buyer in the form and to the location to be determined by Buyer in its
reasonable discretion before the Closing Date at Buyer’s cost and expense; provided, that (i) Seller shall deliver all of Seller’s tangible personal property at their current locations in Portland, ME and Stratford, CT and (ii) all
other Purchased Assets shall be delivered through electronic delivery or in another manner reasonably acceptable to Buyer. Except as otherwise provided in Section 2.2 and Section 5.15, Seller shall not retain any copy of any Purchased Asset
following the Closing. 
  
 (c) Nontransferable
Assets. Notwithstanding any other provision of this Agreement or any of the Seller Ancillary Agreements, to the extent that any of the Assigned Agreements or any other assets constituting part of the Purchased Assets are not assignable or
otherwise transferable to Buyer without the consent, approval or waiver of another party thereto or any third party (including any Governmental Authority), or if such assignment or transfer would constitute a breach thereof or a violation of any
Applicable Legal Requirement or agreement with any third party, then neither this Agreement nor such Seller Ancillary Agreements shall constitute an assignment or transfer (or an attempted assignment or transfer) thereof until such consent, approval
or waiver of such party or parties has been duly obtained. 
  
 2.5
Assumption of Specified Liabilities; Exclusion of Liabilities. Upon and subject to the terms the conditions of this Agreement, Parent shall cause Buyer, effective at the time of the Closing, to pay, perform and discharge when due only the
following liabilities (collectively, the “Assumed Liabilities”): 
  
 (a) subject to Section 2.4(c), the Liabilities of Seller under the Assigned Agreements, but only to the extent that such Liabilities
accrued or arose after the Closing Date for reasons other than any breach, violation or default by Seller of any of the terms of any of the Assigned Agreements; 
  

 13 

 (b) the Liabilities of the Seller under the Assigned Agreements if and to the extent that
such Liabilities are included in the Deferred Revenue of Seller arising out of or associated with the Business that is outstanding as of the Closing Date; 
  
 (c) subject to Section 2.4(c), the Liabilities of Seller under the leases set forth on Schedule 2.5(c) attached hereto, but only to
the extent that such Liabilities accrued or arose after the Closing Date for reasons other than any breach, violation or default by Seller of any of the terms of any of such leases; 
  
 (d) any and all Liabilities in respect of the operation of the Business or the Purchased Assets, but only to
the extent that such Liabilities accrued or arose after the Closing Date and did not accrue or arise as a result of any (or represent a) breach by Seller of any representation or warranty contained in Article 3, “Representations and Warranties
of Seller”; 
  
 (e) any and all Liabilities
under the Governmental Permits included among the Purchased Assets, but only to the extent that such Liabilities accrued or arose after the Closing Date; 
  
 (f) any and all Liabilities for Taxes for which the Parent or the Buyer is liable pursuant to Article 6, “Tax Matters”; and

  
 (g) any and all Liabilities of the Seller to
its customers for the repair, replacement or return of products sold or services provided prior to the Closing, relating primarily or exclusively to the Business, but only to the extent that such Liabilities (i) did not accrue or arise as a result
of any (or represent a) breach by Seller of any representation or warrants contained in Article 3, “Representations and Warranties of Seller,” or as a result of the infringement of any Intellectual Property Right of any other Person, (ii)
arose under a Contract listed on Schedule 3.22 and (iii) do not require a refund, payment under a warranty provision or any similar payment of a portion or all of the purchase price therefore; provided, however, that with
respect to any Liability for the repair of products sold or services provided prior to the Closing that would otherwise become an Excluded Liability pursuant to clauses (i), (ii) or (iii) of this Section 2.5(g), Parent must first use its
commercially reasonable efforts to repair such products or services before such Liability will be deemed to be an Excluded Liability. 
  
 2.6 No Other Liabilities Assumed. As a material consideration and inducement to Buyer to enter into this Agreement, Seller will retain, and will be
solely responsible for paying, performing and discharging when due, and Parent and Buyer will not assume or otherwise have or acquire any obligation, responsibility or liability for, any Excluded Liabilities. The term “Excluded
Liabilities” means any and all Liabilities of Seller, whether now existing or hereafter arising, other than the Assumed Liabilities, including, by way of example and not by way of limitation: 
  
 (a) except as provided in Article 6, “Tax
Matters,” any and all Taxes now or hereafter due and payable by Seller or any Affiliate of Seller; 
  
 (b) any and all trade payables incurred or accrued by Seller or any of Seller’s Affiliates, whether or not relating to the Business,
and any related Liabilities of Seller and its Affiliates; 
  
 (c) except as provided in Section 2.5(g), any and all Liabilities now or hereafter arising from or with respect to the sale, license, provision, performance or delivery of any products or 

  

 14 

 
services of, by or for Seller or any of its Affiliates, including, but not limited to, all past sales and licenses of the products and services in connection
with the Business by Seller or any of its Affiliates; or any Liability under claims based on rights of privacy and/or copyrights in third-party content sourced from the World Wide Web (including claims of contributory infringement); 
  
 (d) any and all Liabilities arising from any breach or
default by Seller or any of its Affiliates of any Contract of Seller or any of its Affiliates, including, but not limited to, any breach, violation or default by Seller or any of its Affiliates of any of the Assigned Agreements that occurred or
first arose prior to the Closing; 
  
 (e) any and
all Liabilities under any Contract that is not an Assigned Agreement; 
  
 (f) any and all Liabilities arising under the Employee Plans of Seller and any and all Liabilities to current or former employees or consultants of Seller related to or arising from or with respect to any act or
omission of Seller, including any Liabilities to such employees and consultants for the payment of any and all wages or accrued and unused vacation time or for the reimbursement of any expenses incurred by such employees and consultants; 

 
 (g) any and all Liabilities arising from the termination
by Seller or any of its Affiliates of the employment of any current, former or future employees or consultants of Seller, any other claims brought against Seller arising from the employment by Seller or any of its Affiliates of any person, or
arising from any duties or obligations under any Employee Plans of Seller or any of its Affiliates; 
  
 (h) any and all present or future Liabilities of Seller or any of its Affiliates to employees or consultants of Seller under ERISA, COBRA,
the WARN Act or the rulings and regulations promulgated thereunder, or any severance pay obligations of Seller; 
  
 (i) any and all Liabilities relating to or arising out of any of the Excluded Assets; 
  
 (j) any and all Liabilities arising from any claim, action,
demand, lawsuit, investigation or proceeding instituted by or against Seller or from the actual or alleged infringement or misappropriation by Seller of any Intellectual Property Rights of a third party; 
  
 (k) all costs and expenses, including fees and disbursements
of counsel, financial advisors and accountants, incurred by Seller in connection with this Agreement and the transactions contemplated hereby; 
  
 (l) any Environmental Liability; 
  
 (m) any and all Liabilities arising from the violation (or alleged violation) by Seller or any of its Affiliates of any statute, law,
ordinance, regulation, order, judgment or decree of any Governmental Authority or any jurisdiction (other than Assumed Liabilities); and 
  
 (n) any and all Liabilities arising as a result of any failure to comply with any “bulk sales,” “bulk transfer” or
similar laws in connection with the transactions contemplated by this Agreement. 
  
 2.7 Purchase Price and Escrow. In consideration of the sale, assignment, transfer and conveyance of all the Purchased Assets (free and clear of all Encumbrances) to Buyer at the Closing, Buyer shall (i) pay
Seller $10.0 million in cash and (ii) issue to Seller shares of Parent Common Stock 

  

 15 

 
(collectively, the “Purchase Price”), which shares of Parent Common Stock shall be issued in the following amount and manner:

  
 (a) At the Closing, Buyer shall issue such
number of shares of Parent Common Stock as shall be equal to the quotient (rounded down to the nearest whole number) of (A) $10.0 million divided by (B) the Parent Average Stock Price (the “Closing Shares”). Of the aggregate
number of Closing Shares to be issued by Parent at the Closing, 20% of such Closing Shares (rounded up to the nearest whole number) (the “Escrow Shares”) will be deposited in an account with the Escrow Agent. The Escrow Agent
will hold the Escrow Shares as collateral to secure Seller’s indemnification obligations hereunder for a period of one year from the Closing Date (the “Escrow Period”) and will release amounts in accordance with the
Escrow Agreement and Article 7, “Indemnification.” The portion of the Closing Shares that are not Escrow Shares are referred to herein as “Guaranteed Shares.” 
  
 (b) Contingent upon the occurrence of the conditions and in
accordance with the provisions of the Earnout Schedule during the period from the Closing Date through and including the Earnout Period, Seller has the opportunity to earn up to an additional number of shares (the “Earnout
Shares”) of Parent Common Stock as shall be equal to the quotient of (A) $5.0 million divided by (B) the Parent Average Stock Price. Any Earnout Shares that may be earned by Seller during the Earnout Period will be issued by Parent to
Seller in the manner prescribed in the Earnout Schedule. 
  
 (c) Notwithstanding anything to the contrary herein or in the Earnout Schedule, the maximum aggregate number of Shares that Parent may be required to issue to Seller hereunder or thereunder shall not exceed that
number of shares of Parent Common Stock as shall equal 19.9% of the total number of shares of Parent Common Stock outstanding on the Closing Date (the “Shares Cap”). In the event that the number of Shares otherwise issuable
hereunder would exceed the Shares Cap, Parent will issue to Seller that number of Shares as shall equal the Shares Cap, and Parent shall pay Seller the balance of the consideration in cash in an amount equal to the value of the unissued Shares that
exceeded the Share Cap. 
  
 2.8 Closing. Subject to the
terms and conditions of this Agreement, the sale and purchase of the Purchased Assets contemplated hereby will take place at a closing (the “Closing”) at the offices of Fenwick & West LLP, 801 California Street,
Mountain View, California at 10:00 a.m., Pacific Time, within two Business Days after all of the conditions to Closing set forth in Article 8, “Conditions to Closing,” have been satisfied and/or waived in accordance with this Agreement, or
at such other time and date, and at such other place, as may be agreed to by the Buyer and Seller (the “Closing Date”). 
  
 2.9 Closing Deliveries by Seller. At the Closing, in addition to Seller’s delivery of the items, documents and certificates to be delivered by
Seller at the Closing pursuant to Section 8.2, Seller will deliver or cause to be delivered to Parent and Buyer the following items, documents and certificates, against delivery to Seller of the items, payments, documents and certificates to be
delivered to Seller by Parent and Buyer at the Closing pursuant to Section 2.10 and Section 8.1: 
  
 (a) counterparts of each of the Bill of Sale and Assumption Agreement, in substantially the form of Exhibit D attached
hereto (the “Bill of Sale and Assumption Agreement”), the Escrow Agreement and the Software Distribution and License Agreements, each executed on Seller’s behalf by an authorized officer of Seller; 
  
 (b) the Purchased Assets, which shall be delivered to Buyer
in accordance with Section 2.4; 
  

 16 

 (c) assignments from Seller to Buyer of any and all patent rights, rights in patent
applications and invention rights, registered and unregistered copyrights, trademarks, service marks and domain names included in the Purchased Assets and all pending applications for registration or recordation of any copyrights, trademarks,
service marks and domain names included in the Purchased Assets, duly executed on behalf of Seller by an authorized officer of Seller and notarized, in a form acceptable for recording with the United States Patent and Trademark Office, the United
States Copyright Office, or InterNIC Registration Services (or other applicable registrar), as applicable, and in substantially the forms of Exhibit E attached hereto (the “Patent Assignment”), Exhibit
F attached hereto (the “Copyright Assignment”) or Exhibit G attached hereto (the “Mark Assignment”), as applicable; 
  
 (d) copies of resolutions of the board of directors of Seller authorizing the execution, delivery and
performance by Seller of this Agreement, each of the Seller Ancillary Agreements, and the consummation of the sale, assignment and delivery of the Purchased Assets hereunder and all other transactions contemplated hereby and thereby, certified as
true and correct on the Closing Date by the Secretary of Seller; 
  
 (e) certificates from the Secretary of State of the States of Connecticut, Delaware, New Jersey and Maine, dated as of a date that is no more than three Business Days before the Closing Date regarding the corporate
good standing of Seller with each such agency as of such date, in each case with such good standing confirmed verbally with each such agency on the Closing Date; and 
  
 (f) evidence of Seller’s receipt of all consents, waivers and approvals from third parties and
Governmental Authorities, if any, that are necessary to effect the assignment and transfer to Buyer of good (and, in the case of tangible assets, marketable) title to all of the Purchased Assets, and the assignment to Buyer of all Assigned
Agreements, in each case free and clear of all Encumbrances. 
  
 2.10 Closing Deliveries by Parent and Buyer. At the Closing, in addition to Parent’s and Buyer’s respective delivery of the items, documents and certificates to be delivered by them at the Closing pursuant to Section 8.1,
Parent and Buyer will deliver or cause to be delivered to Seller the following items, documents and certificates, against delivery to Parent and Buyer of the items, documents and certificates to be delivered to them at the Closing pursuant to
Section 2.9 and Section 8.2: 
  
 (a) counterparts
of each of the Escrow Agreement, the Software Distribution and License Agreements and the Bill of Sale and Assumption Agreement, each executed on Parent’s or Buyer’s behalf by an authorized officer of Parent or Buyer, as the case may be;

  
 (b) payment of $10.0 million in cash by wire
transfer to the account designated in writing by Seller at least two days prior to the Closing Date; 
  
 (c) a stock certificate of Parent registered in the name of the Seller representing the Guaranteed Shares; 
  
 (d) a copy of resolutions of the respective boards of
directors of Parent and Buyer authorizing the execution, delivery and performance by Parent and Buyer of this Agreement and each of the Buyer Ancillary Agreements, certified as true and correct on the Closing Date by the Secretary of Parent and the
Secretary of Buyer, respectively; and 
  
 (e)
certificates from the Secretary of State of the States of Delaware and California, as applicable, dated as of a date that is no more than three Business Days before the Closing Date, regarding the corporate good standing of each of Parent and Buyer
with that agency as of such date, in each case with such good standing confirmed verbally with each such agency on the Closing Date. 
  

 17 

 2.11 Securities Law Compliance. Pursuant to Section 5.3, the parties hereto intend that Parent
shall issue the Shares pursuant to a permit approving the fairness of this Agreement and the Asset Purchase pursuant to Section 25121 of California Securities Law such that the issuance of the Shares shall be exempt pursuant to Section 3(a)(10) of
the Securities Act from the registration requirements of Section 5 of the Securities Act (the “Permit”). The Shares may, under certain circumstances pursuant to Section 5.3(c), be issued in a transaction exempt from
registration under the Securities Act under Section 4(2) thereof and/or Regulation D promulgated under the Securities Act and the exemptions from qualification under applicable state securities laws. 
  
 2.12 Seller Options and Seller Warrants Not Assumed. Buyer is not
assuming, and shall not assume the Seller Options or Seller Warrants or any obligations or Liabilities under the Employee Plans of Seller. 
  
 ARTICLE 3 
 REPRESENTATIONS AND
WARRANTIES OF SELLER 
  
 Seller represents and warrants to
Parent and Buyer that, except as specifically set forth in the letter addressed to Parent and Buyer from Seller and dated as of date hereof (including all Schedules thereto), which letter has been delivered by Seller to Parent and Buyer concurrently
with the parties’ execution of this Agreement (the “Seller Disclosure Letter”), each of the representations, warranties and statements contained in the following sections of this Article 3 is true and correct as of the
date hereof and will be true and correct as of the Closing Date (other than such representations and warranties that are expressly made as of another date, in which case such representations and warranties are true and correct as of such other
specified date). For all purposes of this Agreement, the statements contained in the Seller Disclosure Letter and its Schedules shall also be deemed to be part of the representations and warranties made and given by Seller to Parent and Buyer
pursuant to this Article 3. 
  
 3.1 Organization and Good
Standing. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Seller has the corporate power and authority and all necessary governmental licenses, authorizations and permits to
own, operate and lease its properties and to carry on its business as now conducted, except where such failure would not have a Material Adverse Effect on the Business or the Purchased Assets. Seller is qualified to transact business, and is in good
standing, in each jurisdiction where the character of the properties owned, leased or operated by it or the nature of its activities make such qualification necessary, except where such failure would not have a Material Adverse Effect on the
Business or the Purchased Assets. Seller has made available to Parent and Parent’s legal counsel copies of its Certificate of Incorporation and Bylaws, each as currently in effect. Seller is not in violation of its Certificate of Incorporation
or Bylaws, each as currently in effect. Schedule 3.1 to the Seller Disclosure Letter lists every Subsidiary of Seller. 
  
 3.2 Power, Authorization and Validity. 
  
 (a) Power and Authority; Due Authorization. Seller has all requisite corporate power and authority to enter into, execute, deliver
and, subject only to the approval by the holders of Seller Common Stock set forth in Section 3.2(b), perform its obligations under this Agreement and each of the Seller Ancillary Agreements, to sell the Purchased Assets to Buyer and to consummate
all other transactions contemplated hereby and thereby (the “Asset Purchase”). The execution, delivery and performance by Seller of this Agreement and each of the Seller Ancillary Agreements, and the sale of the Purchased
Assets to Buyer, have been duly and validly approved and authorized by all necessary corporate action on the part of Seller, subject only to the approval and adoption of this Agreement and the approval of the Asset Purchase, by the holders of Seller
Common Stock as set forth in Section 3.2(b). 
  

 18 

 (b) Stockholder Consents. Seller has determined to obtain the vote of a majority
of the holders of Seller Common Stock (the “Requisite Stockholder Approval”) to adopt this Agreement and approve the Asset Purchase. Except as provided in the preceding sentence, no other action or approval on the part of the
holders of any of Seller’s securities is required in order to validly approve and adopt this Agreement and approve the Asset Purchase. 
  
 (c) Other Consents. No consent, approval, order or authorization of, notification to, action by or registration, declaration or
filing with, any Governmental Authority, or any other person, governmental or otherwise, is necessary or required to be made or obtained by Seller to enable Seller to lawfully enter into, execute, deliver and perform its obligations under this
Agreement and each of the Seller Ancillary Agreements, or to consummate the transactions contemplated hereby or thereby, including Seller’s sale, assignment, transfer, conveyance and delivery of the Purchased Assets, except for the approvals of
the holders of Seller Common Stock as set forth in Section 3.2(b), the filing of a Current Report on Form 8-K and the Seller Proxy Statement with the SEC in accordance with the Exchange Act and the consents set forth on Schedule 3.2(c) to the
Seller Disclosure Letter. 
  
 (d)
Enforceability. This Agreement has been duly executed and delivered by Seller. This Agreement and each of the Seller Ancillary Agreements are, or when duly executed and delivered by Seller shall be, valid and binding obligations of Seller,
enforceable against Seller in accordance with their respective terms, subject only to the effect, if any, of (i) applicable bankruptcy and other similar laws affecting the rights of creditors generally or (ii) rules of law and equity governing
specific performance, injunctive relief and other equitable remedies. 
  
 3.3 No Conflict. Neither the execution and delivery of this Agreement or any of the Seller Ancillary Agreements by Seller, nor the consummation of the transactions contemplated hereby or thereby, will conflict with, or (with or
without notice or lapse of time, or both) result in a termination, breach, impairment or violation of, or constitute a default under: (i) any provision of the Certificate of Incorporation or Bylaws of Seller, each as currently in effect; (ii) any
Applicable Legal Requirements or (iii) any Contract (whether oral or in writing) to which Seller is a party or by which Seller or any of the Purchased Assets are bound, except in the cases of clauses (ii) and (iii), where such conflict, termination,
breach, impairment, violation or default would not have a Material Adverse Effect on the Business or any of the Purchased Assets. Neither Seller’s entering into this Agreement or any of the Seller Ancillary Agreements nor the consummation of
the transactions contemplated hereby or thereby will result in the creation of any Encumbrance on any of the Purchased Assets or give rise to, or trigger the application of, a right or claim of any third party with respect to the Business or the
Purchased Assets that would have a Material Adverse Effect on Seller, the Business or the Purchased Assets. 
  
 3.4 Litigation. There is no litigation, including, without limitation, any claim, action, suit, investigation or proceeding of any nature pending
or, to the knowledge of Seller, threatened, at law or in equity, by way of arbitration or before any court or other Governmental Authority that: (i) would reasonably be expected to adversely affect, contest or challenge Seller’s authority,
right or ability to sell or convey any of the Purchased Assets or the Business to Buyer and Parent under this Agreement or to otherwise perform Seller’s obligations under this Agreement or any of the Seller Ancillary Agreements, as applicable;
(ii) challenges or contests Seller’s right, title or ownership in any of the Purchased Assets or asserts any Encumbrance on any of the Purchased Assets; (iii) seeks to enjoin, prevent or hinder the consummation of any of the transactions
contemplated by this Agreement or any of the Seller Ancillary Agreements; (iv) is pending against Seller and would impair or have an adverse effect on Buyer’s or Parent’s right or ability to own, use, commercialize or otherwise exploit any
of the Purchased Assets or impair or have an adverse effect on the value of any of the Purchased Assets; or (v) involves a wrongful termination, harassment or other employment-related claim by any Business Employee or that would adversely affect or
prevent Buyer or Parent from hiring or employing any Business Employee. To 

  

 19 

 
Seller’s knowledge, there is no reasonable basis for any person to assert a claim against Parent, Buyer or Seller with respect to the matters set forth
in the preceding sentence. There are no judgments, decrees, injunctions or orders of any Governmental Authority or arbitrator binding on Seller which (i) adversely affect any of the Purchased Assets or the Business, (ii) would enjoin, prevent,
hinder or conflict with any of the transactions contemplated by this Agreement or (iii) would impair or adversely affect Buyer’s or Parent’s rights in any of the Purchased Assets at any time on or after the Closing. 
  
 3.5 Taxes. No Tax liens are currently in effect against any of the
Purchased Assets or the Business, except liens for Taxes not yet due and payable or for Taxes set forth on Schedule 3.5 to the Seller Disclosure Letter, which are being contested in good faith by appropriate proceedings. 
  
 3.6 Seller Exchange Act Documents; Seller Financial Statements.

  
 (a) Seller has filed all forms, reports and
documents (together with any required amendments thereto) required to be filed by Seller with the SEC since December 31, 2000. All such required forms, reports and documents (including those that Seller may file subsequent to the Agreement Date) are
referred to herein as the “Seller Exchange Act Documents.” As of their respective dates, the Seller Exchange Act Documents (i) were prepared in accordance with the requirements of the Securities Act or the Exchange Act, as
the case may be, and the rules and regulations of the SEC thereunder applicable to such Seller Exchange Act Documents and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on
the date of such filing) contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading, except to the extent corrected prior to the date of this Agreement by a subsequently filed Seller Exchange Act Document. The Seller Exchange Act Documents, taken as a whole, together with any press release that is broadly
disseminated after the date of the most recent Seller Exchange Act Documents and the date of this Agreement, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in the light of the circumstances under which they were made, not misleading. None of Seller’s Subsidiaries is required to file any forms, reports or other documents with the SEC. 
  
 (b) Each of the consolidated financial statements
(including, in each case, any related notes thereto) contained in the Seller Exchange Act Documents (the “Seller Financial Statements”), including each Seller Exchange Act Document filed after the Agreement Date until the
Closing, (i) complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto, (ii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as
may be indicated in the notes thereto or, in the case of unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q, Form 8-K or any successor form under the Exchange Act) and (iii) fairly presented the consolidated
financial position of Seller and its Subsidiaries as at the respective dates thereof and the consolidated results of Seller’s operations and cash flows for the periods indicated, except that the unaudited interim financial statements may not
contain footnotes and were or are subject to normal and recurring year-end adjustments. The balance sheet of Seller contained in Seller’s Annual Report on Form 10-K for the year ended December 31, 2002 is hereinafter referred to as the
“SellerBalance Sheet.” Except as disclosed in the Seller Financial Statements, since the date of the Seller Balance Sheet, neither Seller nor any of its Subsidiaries has any liabilities required under GAAP to be
set forth on a balance sheet (absolute, accrued, contingent or otherwise) which are, individually or in the aggregate, material to the business, results of operations or financial condition of Seller and its Subsidiaries taken as a whole, except for
(i) liabilities for accrued expenses incurred since the date of the Seller Balance Sheet in the ordinary course of business consistent with past practices and liabilities incurred in connection with this Agreement and (ii) liabilities for which
neither Parent nor Buyer will be liable pursuant to this Agreement or operation of law. Seller has 

  

 20 

 
delivered to Buyer its current projections (as of the Agreement Date) for the Business for the fiscal year ending December 31, 2003. Such projections were
made or given in good faith and, in Seller’s judgment, are based on reasonable assumptions. 
  
 (c) Seller has heretofore furnished to Buyer and Parent a complete and correct copy of any amendments or modifications, which have not yet
been filed with the SEC but which are required to be filed, to agreements, documents or other instruments which previously had been filed by Seller with the SEC pursuant to the Securities Act or the Exchange Act. 
  
 3.7 Absence of Certain Changes. Since the date of the Seller Balance
Sheet, Seller has operated the Business in the ordinary course consistent with its past custom and practice, and since such date there has not been with respect to Seller any: 
  
 (a) occurrence that has had or would reasonably be expected to have a Material Adverse Effect on the
Business or the Purchased Assets; 
  
 (b)
incurrence, creation or assumption by Seller of any Liability relating to or in respect of the Business, other than (i) Assumed Liabilities, (ii) Liabilities for which neither Parent nor Buyer will be liable pursuant to this Agreement or operation
of law and (iii) accounts payable in the ordinary course of business; 
  
 (c) purchase, license, sale, assignment, grant of right under or other disposition or transfer, or any Contract for the purchase, license, sale, assignment or other disposition or transfer, of any of Seller IP Rights,
any assets used in or relating to the Business, or any Purchased Assets, other than (i) the Assigned Agreements and the Contracts listed in Schedule 3.9 to the Seller Disclosure Letter and (ii) agreements with Seller’s customers granted
in the ordinary course of business; 
  
 (d)
amendment of, relinquishment, termination or non-renewal by Seller of any Assigned Agreement, other than such Assigned Agreements as may expire pursuant to their own terms, or a right or obligation set forth in any Assigned Agreement, or any written
or, to Seller’s actual knowledge, oral indication or assertion by the other party thereto of any material problems with Seller’s products, services or performance under any Assigned Agreement or its desire to so amend, relinquish,
terminate or not renew any Assigned Agreement (or a right or obligation set forth therein); 
  
 (e) change or increase, or agreement to change or increase, the compensation payable or to become payable to any Business Employees or in
any bonus, pension, severance, retention, insurance or other benefit payment or arrangement (including stock awards, stock option grants, stock appreciation rights or stock option grants) made to or with any of such Business Employees, or any other
change in the terms of employment of any Business Employee. 
  
 (f) amendment of, relinquishment or termination by Seller of any Contract relating to the employment of any Business Employees or any other type of Contract with any such Business Employees; 
  
 (g) capital expenditure, or commitment for a capital
expenditure, for additions or improvements to property, plant and equipment used by Seller in the Business; 
  
 (h) material delay in paying any accounts payable of Seller relating to the Business, or failure to pay any such account payable in an
amount more than $25,000 beyond its due date; 
  

 21 

 (i) other material occurrence, event, incident, action, failure to act, or transaction by
Seller outside the ordinary course involving the Business or the Purchased Assets; or 
  
 (j) commitment to any of the foregoing with respect to the Business or the Purchased Assets. 
  
 3.8 Title to and Condition of Purchased Assets; Sufficiency of Assets;
Warranties. 
  
 (a) Seller has good (and, in
the case in tangible assets, marketable) title to all of the Purchased Assets free and clear of all Encumbrances. Title to all of the Purchased Assets is transferable from Seller to Buyer, free and clear of all Encumbrances, without obtaining the
consent or approval of any person, except that the consents set forth on Schedule 3.2(c) to the Seller Disclosure Letter are required for Seller to assign the Assigned Agreements to Buyer. Upon consummation of the transactions contemplated
hereby, Buyer will have acquired good (and, in the case in tangible assets, marketable) title in and to, or a valid leasehold interest in, each of the Purchased Assets, free and clear of all Encumbrances. 
  
 (b) Except as set forth in Schedule 3.8(b) to the
Seller Disclosure Letter, the Purchased Assets and the rights granted under the Software Distribution and License Agreements constitute all the Intellectual Property Rights that are related to the Business or otherwise necessary and all the other
assets, properties and rights that are owned by Seller that are necessary to enable Parent and Buyer, following the Closing, to own, conduct, operate and continue the Business substantially as presently conducted and to continue to sell and
otherwise use and create derivative works based on the products and services that are provided in connection with the Business in the same manner as Seller as of the Closing Date without: (i) the need for Parent or Buyer to acquire or license any
other intangible asset, intangible property or Intellectual Property Right and (ii) the breach or violation of any Contract or commitment. Except as set forth in Schedule 3.8(b) to the Seller Disclosure Letter, none of the Purchased Assets is
licensed or leased from any third party, and no royalties, license fees or similar payments are due or payable (or may become due or payable) to any third party under any license, lease or other agreement of, to or affecting the Purchased Assets and
none of the Purchased Assets are licensed to any third party other than pursuant to standard non-exclusive licenses to Seller’s customers, clients and business partners granted in the ordinary course of business. 
  
 (c) All tangible personal property included in the Purchased
Assets is in good operating condition and repair, normal wear and tear excepted. Schedule 3.8(c)(1) to the Seller Disclosure Letter contains a true and complete list of all Seller Tangible Personal Property as of the date of this Agreement
having a greater than nominal book value (which schedule will be updated to reflect Seller Tangible Personal Property as of the Closing Date by Seller and delivered to Buyer at least one Business Day prior to the Closing Date). Schedule
3.8(c)(2) to the Seller Disclosure Letter contains a true and complete list of all Prepaid Assets of Seller as of the date of this Agreement (which schedule will be updated to reflect Prepaid Assets of Seller as of the Closing Date by Seller and
delivered to Buyer at least one Business Day prior to the Closing Date). 
  
 (d) Schedule 3.8(d) to the Seller Disclosure Letter sets forth each lease or sublease of real property used in the Business or on which any of the Purchased Assets are located (and each amendment or supplement
thereof). All such leases afford Seller peaceful and undisturbed possession of the subject matter of the lease. All leases of real property and personal property related to the Business or the Purchased Assets are in good standing, in full force and
effect and are valid, binding and enforceable in accordance with their respective terms against Seller and, to Seller’s knowledge, the other party thereto and, to the knowledge of Seller, there does not exist under any such lease any default or
any event which with notice or lapse of time or both would constitute a default under such lease. 
  

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 (e) Each product manufactured, sold, licensed, leased or delivered by Seller in
connection with the Business has been in substantial conformity with all applicable contractual commitments and all express warranties made by Seller and there is, to Seller’s knowledge, no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, or demand pending or threatened with respect to any such contractual commitments or express warranties for replacement or repair thereof or other damages in connection therewith. No product manufactured, sold, licensed,
leased or delivered by Seller in connection with the Business is subject to any guaranty, warranty, or other indemnity beyond Seller’s applicable standard terms and conditions of sale, lease or licensing or beyond that imposed by Applicable
Legal Requirements. 
  
 3.9 Contracts and Commitments/Licenses
and Permits. Schedule 3.9 to the Seller Disclosure Letter sets forth a list of each of the following types of Contracts (other than the Assigned Agreements) to which Seller is a party and which relates to any of the Purchased Assets or
the Business (the “Seller Agreements”): 
  
 (a) any Contract providing for payments (whether fixed, contingent or otherwise) by or to Seller in an aggregate amount of $10,000 or more; 
  
 (b) any Contract with any dealer, distributor, OEM (original equipment manufacturer), VAR (value added
reseller), sales representative or similar party under which any third party is authorized to sell, sublicense, lease, distribute, market or take orders for, any product, service or technology of Seller which is included in the Purchased Assets or
which relates to the Business; 
  
 (c) any
Contract providing for the development of any software, content (including textual content and visual, photographic or graphics content), technology or intellectual property for (or for the benefit or use of) Seller, or providing for the purchase or
license of any software, content (including textual content and visual, photographic or graphics content), technology or intellectual property to (or for the benefit or use of) Seller, which software, content, technology or intellectual property is
in any manner used or incorporated (or is presently contemplated by Seller to be used or incorporated) in connection with any aspect or element of any product, service or technology of Seller which is included in the Purchased Assets or which
relates to the Business (other than software generally available to the public at a per copy license fee of less than $500 per copy); 
  
 (d) any joint venture, investment or partnership Contract that has involved, or is reasonably expected to involve, a sharing of profits,
expenses or losses with any other party or the joint development of any product, service, software or other technology with any third party; 
  
 (e) any Contract with any Business Employee, including any Contract for or relating to the employment of such Business Employee or
providing for any bonus or severance payment to such Business Employee; 
  
 (f) any Contract under which Seller is lessee of or holds or operates any items of tangible personal property or real property owned by any third party; 
  
 (g) any Contract (i) that restricts Seller from freely setting prices for Seller’s products, services
or technologies (including most favored customer pricing provisions) or that grants any exclusive rights to any party or (ii) containing any covenant (A) limiting in any respect the right of the Seller to engage in any line of business, to make use
of any Intellectual Property Rights, develop, market or distribute products or services or compete with any person or (B) otherwise limiting the right of Seller to sell, distribute or manufacture any products or services or to purchase or otherwise
obtain any Software or services; 
  

 23 

 (h) any Seller IP Rights Agreement, other than standard non-exclusive licenses to
Seller’s customers granted in the ordinary course of business; 
  
 (i) any Contract with or commitment to any labor union; 
  
 (j) any Governmental Permit; 
  
 (k) any Contract obligating Seller to indemnify any person, except for any licenses of commercial off-the-shelf computer software under
shrink-wrap agreements and standard form agreements and except for standard non-exclusive licenses to Seller’s customers granted in the ordinary course of business; 
  
 (l) any website hosting, collocation, linking, content or data sharing, data feed, information exchange,
order or transaction processing or similar arrangement relating to the Business; and 
  
 (m) any other Contract or other instrument not specified above which is material to the Purchased Assets or the Business. 
  
 A true and complete copy of each of the Seller Agreements has been delivered
to or otherwise made available to Parent’s legal counsel. 
  
 3.10 No Default; No Restrictions. 
  
 (a) Each Assigned Agreement and Governmental Permit is in full force and effect. Seller is not, nor to Seller’s knowledge is any other party, in material breach or default under any Assigned Agreement or Governmental Permit. No event
has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time, or both) will, or to Seller’s knowledge, would reasonably be expected to, (i) result in a material violation or breach by Seller or, to
Seller’s knowledge, any other party of any of the provisions of any Assigned Agreement or (ii) give any third party, to Seller’s knowledge, (A) the right to declare a default or exercise any remedy for breach under any Assigned Agreement,
(B) the right to a rebate, chargeback or penalty under any Assigned Agreement (C) the right to accelerate the maturity or performance of any obligation of Seller under any Assigned Agreement or (D) the right to cancel, terminate or modify any
Assigned Agreement. No violation, breach or default of any of the provisions of any Seller Agreement that is not an Assigned Agreement shall result in any Liability to Parent, Buyer or any of their respective Subsidiaries. Seller has not received
any written notice or other communication, or, to Seller’s knowledge, oral notice or other communication regarding any material violation or breach of, or default under, any Assigned Agreement that has not been cured by Seller or waived by the
other party thereto. Seller has no material Liability for renegotiation of any government Contracts included in the Assigned Agreements. 
  
 (b) None of the Purchased Assets, is bound or affected by any judgment, injunction, order, decree or Contract (noncompete or otherwise)
that, restricts or prohibits, or purports to restrict or prohibit, Seller or, following the Closing, Parent, Buyer or any of their respective Subsidiaries, from freely engaging in the Business by Seller of exclusive rights or licenses. 

 
 3.11 Intellectual Property. 
  
 (a) Seller owns or has the valid right or license to use,
possess, develop, sell, license, copy, distribute, market, advertise and/or dispose of, under all Intellectual Property Rights used in the conduct of the Business as presently conducted, including that portion of the Business involving products
under development (such ownership and Intellectual Property Rights being hereinafter collectively 

  

 24 

 
referred to as the “Seller IP Rights”). Such Seller IP Rights are sufficient for such conduct of the Business. As used herein, the
term “Seller-Owned IP Rights” means Seller IP Rights that are owned by or exclusively licensed to Seller; and “Seller-Licensed IP Rights”means Seller IP Rights that are not Seller-Owned IP
Rights. 
  
 (b) Neither the execution, delivery
and performance of this Agreement and the Seller Ancillary Agreements, nor the consummation of the transactions contemplated by this Agreement and/or by the Seller Ancillary Agreements will, in accordance with their terms: (i) constitute a material
breach of or default under any Contract governing any Seller IP Right (collectively, the “Seller IP Rights Agreements”); (ii) cause the forfeiture or termination of, or give rise to a right of forfeiture or termination of,
any Seller IP Right or (iii) materially impair the right of Seller (prior to Closing), and following the Closing, Parent, Buyer or any of their respective Subsidiaries, to use, possess, sell or license any Seller-Owned IP Right or to use, possess,
or license any Seller-Licensed IP Rights (other than commercially available software with a retail purchase price of five hundred ($500) dollars or less) or portion thereof included in or related to the development, operation or maintenance the
Purchased Assets. Except as set forth in Schedule 3.11(b) to the Seller Disclosure Letter, there are no royalties, honoraria, fees or other payments payable by Seller to any third person (other than salaries payable to employees and
independent contractors not contingent on or related to use of their work product) as a result of the ownership, use, possession, license-in, sale, marketing, advertising or disposition of any Seller IP Rights by Seller to the extent necessary for
the conduct of the Business or to be able to hold and use the Purchased Assets, and none will become payable as a result of the consummation of the transactions contemplated hereby. 
  
 (c) The use, development, manufacture, marketing, license, sale, or furnishing of the Purchased Assets,
including portions of the Purchased Assets under development, does not violate any Contract between Seller and any third party or, to Seller’s knowledge, infringe or misappropriate any Intellectual Property Right of any other party, including
copyrights in third-party content sourced from the World Wide Web. There is no pending or, to Seller’s actual knowledge, threatened claim or litigation contesting the validity, ownership or right of Seller to exercise any Seller IP Right, nor
to Seller’s knowledge, is there any legitimate basis for any such claim, nor has Seller received any written notice or, to Seller’s actual knowledge, any oral notice asserting that any Seller IP Right or the proposed (as stated or
represented to Parent, Buyer or any third party) use, sale, license or disposition thereof conflicts or will conflict with the rights of any other party, nor, to Seller’s knowledge, is there any legitimate basis for any such assertion. There is
no pending or, to Seller’s actual knowledge, threatened claim or litigation with respect to or relating to the Purchased Assets or the Business asserting infringement (including contributory infringement) of any copyrights in third-party
content that is posted or distributed through the Seller’s websites before the Closing. 
  
 (d) To Seller’s knowledge, no current or former employee, consultant or independent contractor of Seller who performs or performed
services in connection with or relating to the Business or the Purchased Assets: (i) is in material violation of any term or covenant of any employment Contract, patent disclosure agreement, invention assignment agreement, nondisclosure agreement,
noncompetition agreement or any other Contract with any other party by virtue of such employee’s, consultant’s or independent contractor’s being employed by, or performing services for, Seller in connection with or relating to the
Business or the Purchased Assets or using without permission trade secrets or proprietary information of others in Seller’s possession or otherwise disclosed to Seller; or (ii) has developed any technology, software or other copyrightable,
patentable, or otherwise proprietary work for Seller in connection with or relating to the Business or the Purchased Assets that is subject to any agreement under which such employee, consultant or independent contractor has assigned or otherwise
granted to any third party any rights (including Intellectual Property Rights) in or to such technology, software or other copyrightable, patentable or otherwise proprietary work. Neither the employment of any employee by Seller in the Business, nor
the use by Seller in the Business of the services of any consultant or 

  

 25 

 
independent contractor prior to Closing, subjects Seller to any Liability to any third party for improperly soliciting such employee, consultant or
independent contractor to work for Seller, whether such Liability is based on contractual or other legal obligations to such third party. 
  
 (e) Except as otherwise set forth in Schedule 3.11(e), Seller has taken all necessary and appropriate steps to protect, preserve
and maintain the secrecy and confidentiality of the Seller IP Rights and to preserve and maintain all of the interests and proprietary rights of Seller in the Seller IP Rights. All current and former officers, employees, consultants and actual or
potential customers or business partners of Seller having access to confidential information of Seller with respect to the Business, its customers or business partners and inventions owned by Seller with respect to the Business, have executed and
delivered to Seller an agreement regarding the protection of such confidential information and except for Seller’s customers and business partners, have executed and delivered the assignment of inventions to Seller (in the case of confidential
information of Seller’s customers and business partners, to the extent required by such customers and business partners); and copies of all such agreements have been made available to Buyer. Seller has secured valid written assignments from all
current and former consultants, contractors and employees of Seller who were involved in, or who contributed to, the creation or development of any Seller-Owned IP Rights, of the rights to such contributions that may be owned by such persons or that
Seller does not already own by operation of law. No current or former employee, officer, director, consultant or independent contractor of Seller has any right, license, claim or interest whatsoever in or with respect to any Seller-Owned IP Rights.

  
 (f) Schedule 3.11(f) to the Seller
Disclosure Letter contains a true and complete list with respect to the Business of: (i) all registrations, made by or on behalf of Seller with any governmental or quasi-governmental authority anywhere in the world, of any patents, copyrights, mask
works, trademarks, service marks, Internet domain names or Internet or World Wide Web URLs or addresses and (ii) all applications for any such registrations. To Seller’s actual knowledge, all such registered patents, copyrights, trademarks,
service marks, or rights in Internet or World Wide Web domain names or URLs or addresses owned by Seller are valid, enforceable and subsisting. 
  
 (g) Seller owns all right, title and interest in and to all Seller-Owned IP Rights free and clear of all Encumbrances and licenses (other
than licenses, rights and restrictions contained in the agreements listed in Schedule 3.11(h) to the Seller Disclosure Letter and standard non-exclusive licenses granted to Seller’s customers in the ordinary course of business). To
Seller’s actual knowledge, Seller’s right, license and interest in and to all Seller-Licensed IP Rights are free and clear of all Encumbrances and licenses (other than licenses, rights and restrictions contained in the agreements listed in
Schedule 3.11(h) to the Seller Disclosure Letter and standard non-exclusive licenses granted to Seller’s customers in the ordinary course of business). 
  
 (h) Schedule 3.11(h) to the Seller Disclosure Letter contains a true and complete list of: (i) all
licenses, sublicenses and other contracts, agreements, arrangements, commitments and undertakings as to which Seller is a party and pursuant to which any person is authorized to use any Seller IP Rights, other than standard non-exclusive licenses to
Seller’s customers granted in the ordinary course of business, and (ii) all licenses, sublicenses and contracts, agreements, arrangements, commitments and undertakings with respect to the Business or relating to the Purchased Assets as to which
Seller is a party and pursuant to which Seller is authorized to use any third party Intellectual Property Rights. 
  
 (i) Except as set forth in Schedule 3.11(i)(a) to Seller Disclosure Letter, neither Seller nor any other party acting on its
behalf, has disclosed or delivered to any party, or permitted the disclosure or delivery to any escrow agent or other party of, any Seller Source Code. Schedule 3.11(i)(a) to the Seller Disclosure Letter identifies each Contract pursuant to
which Seller has provided, or is or may be required to provide, Seller Source Code other than as a deposit of such Seller Source Code into escrow. 

  

 26 

 
No event has occurred, and no circumstance or condition exists, that (with or without notice or lapse of time, or both) will, or would reasonably be expected
to, nor will the consummation of the transactions contemplated hereby, result in the disclosure or delivery by Seller or any other party acting on Seller’s behalf to any party of any Seller Source Code. Schedule 3.11(i) to the Seller
Disclosure Letter identifies each Contract pursuant to which Seller has deposited, or is or may be required to deposit, with an escrow holder or any other party, any Seller Source Code and further describes whether the execution of this Agreement or
the consummation of the transactions contemplated hereby, in and of themselves, would reasonably be expected to result in the release from escrow of any Seller Source Code. Except as listed in Schedule 3.11(i)(a), Seller has not granted: (i)
any rights to any third party with respect to Seller Source Code other than rights granted to licensees of Seller Source Code to modify, adapt or merge the Seller Source Code solely for such licensee’s internal use; and (ii) any right to any
third party to distribute any Seller Source Code or any derivative works thereof. “Seller Source Code” means, collectively, any human-readable software source code, or any material portion or aspect of such source code, or
any material proprietary information or algorithm contained in or relating to any such source code, that constitutes Seller-Owned IP Rights. 
  
 (j) To Seller’s knowledge, there is no unauthorized use, disclosure, infringement or misappropriation of any Seller IP Rights by any
third party, including any employee or former employee of Seller. Except with respect to indemnity obligations to Seller’s customers, Seller has not agreed to indemnify any person for any infringement of any Intellectual Property Right of any
third party by the Purchased Assets. 
  
 (k)
Seller is in conformance in all material respects with all applicable contractual commitments, express and implied warranties, product specifications and product documentation and with respect to any representations relating to all Software
developed by Seller and licensed by Seller to customers of the Business and all services provided by or through Seller to customers under an Assigned Agreement of the Business on or before the Closing Date and Seller has no material Liability (and,
to Seller’s knowledge, there is no legitimate basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand against Seller or Buyer giving rise to any material Liability relating to the
Assigned Agreements) for replacement or repair thereof or other damages in connection therewith in excess of any reserves therefor reflected in the Seller Financial Statements. Seller has made available to Buyer all documentation and notes relating
to the testing of Seller’s software products related to the Business and plans and specifications for software products related to the Business currently under development by Seller. Seller has taken such actions as are necessary, or
appropriate by the standard of a reasonably competent programmer, to document the software products related to the Business and any software used in the development, compilation, maintenance and support of the software products related to the
Business, such that the materials comprising such software, including the source code and documentation, have been written in a clear and professional manner so that they may be understood, modified and maintained in an efficient manner by
reasonably competent programmers. 
  
 (l) No
government funding; facilities of a university, college, other educational institution or research center; or funding from third parties (other than funds received in consideration for capital stock of Seller) was used in the development of the
computer software programs or applications owned by Seller and used in connection with the Business or relating to the Purchased Assets. No current or former employee, consultant or independent contractor of Seller, who was involved in, or who
contributed to, the creation or development of any Seller IP Rights, has performed services for the government, university, college, or other educational institution or research center during a period of time during which such employee, consultant
or independent contractor was also performing services for Seller. 
  

 27 

 (m) Schedule 3.11(m) of the Seller Disclosure Letter lists Open Source Materials
that Seller has used in any way in connection with the Business or in, with or otherwise relating to the Purchased Assets and describes the manner in which such Open Source Materials have been used, including, without limitation, whether and how the
Open Source Materials have been modified and/or distributed by Seller. Except as set forth on Schedule 3.11(m), Seller has not (i) incorporated Open Source Materials into, or combined Open Source Materials with, any of the Purchased Assets;
(ii) distributed Open Source Materials in conjunction with any Purchased Asset; or (iii) used Open Source Materials that create, or purport to create, obligations for Seller with respect to any of the Purchased Assets or grant, or purport to grant,
to any third party, any rights or immunities under Intellectual Property Rights (including, but not limited to, using any Open Source Materials that require, as a condition of use, modification and/or distribution of such Open Source Materials that
other software incorporated into, derived from or distributed with such Open Source Materials be (a) disclosed or distributed in source code form, (b) be licensed for the purpose of making derivative works, or (c) be redistributable at no charge).
“Open Source Materials” means all software or other material that is distributed as “free software”, “open source software” or under a similar licensing or distribution model, including, but not limited
to, the GNU General Public License (GPL), GNU Lesser General Public License (LGPL), Mozilla Public License (MPL), BSD licenses, the Artistic License, the Netscape Public License, the Sun Community Source License (SCSL) the Sun Industry Standards
License (SISL) and the Apache License. 
  
 3.12 Compliance with
Laws. Seller has complied in all material respects with all Applicable Legal Requirements that are applicable or relevant to the Business. Seller holds all material permits, licenses and approvals from, and has made all material filings with,
Governmental Authorities, that are necessary for Seller to conduct the Business without any material violation of Applicable Legal Requirements (“Governmental Permits”), which Governmental Permits are set forth on Schedule
3.12 to the Seller Disclosure Letter, and all such Governmental Permits are in full force and effect. Seller has not received any written notice or other written communication from any Governmental Authority regarding (i) any actual or possible
violation of Applicable Legal Requirements that are applicable or relevant to the Business or any Governmental Permit or any failure to comply with any term or requirement of any Governmental Permit or (ii) any actual or possible revocation,
withdrawal, suspension, cancellation, termination or modification of any Governmental Permit. 
  
 3.13 Certain Transactions and Agreements. None of the officers and directors of Seller, and, to the knowledge of Seller, none of the Business Employees or Affiliates of Seller or any member of the immediate
families of such officers, directors, Business Employees or Affiliates, has any direct ownership interest in any firm or corporation that competes with, or does business with, or has any Contract with, the Business (except with respect to any
interest in less than one percent (1%) of the stock of any corporation whose stock is publicly traded). None of said officers, directors, Business Employees, Affiliates or family members has any interest in any of the Purchased Assets or any
property that is used in or pertains to the Business. 
  
 3.14
Employee Matters. 
  
 (a) General.
Seller is in compliance in all material respects with all Applicable Legal Requirements that are applicable or relevant to the Business regarding employment practices, terms and conditions of employment, and wages and hours (including ERISA, the
WARN Act or any similar national, state or local law) and has correctly classified Business Employees as exempt employees and non-exempt employees under the Fair Labor Standards Act. Seller has no Contract with Business Employees currently in effect
that are not terminable at will (other than agreements with the sole purpose of providing for the confidentiality of proprietary information or assignment of inventions). Each of the Business Employees is legally permitted to be employed by Seller
in the jurisdiction in which such 

  

 28 

 
Business Employee is employed. Seller, with respect to the Business: (i) has never been and is not now subject to a union organizing effort; (ii) is not
subject to any collective bargaining agreement with respect to any Business Employee; (iii) is not subject to any other Contract with any trade or labor union, employees’ association or similar organization and (iv) has no current labor
disputes and has had no material labor disputes or claims of unfair labor practices. To Seller’s knowledge, Seller has good labor relations with the Business Employees, and Seller has no knowledge of any facts indicating that the consummation
of the transactions provided for herein will adversely affect such labor relations, and Seller has no knowledge that any Business Employee intends to leave Seller’s employ or to decline to accept employment with Parent or Buyer following the
Closing. No Business Employee has given written notice that such Business Employee intends to terminate his or her employment with Seller. There are no strikes, material slowdowns, work stoppages or lockouts, or threats thereof by or with respect to
any Business Employees. 
  
 (b) Employee
Plans. Schedule 3.14(b) to the Seller Disclosure Letter contains a list of all employment and consulting agreements and Employee Plans. Seller has made available true and complete copies or descriptions of all the Employee Plans to
Buyer’s legal counsel. No Employee Plan is a “multiemployer plan” within the meaning of Section 3(37) or ERISA, and no Employee Plan is subject to Title IV of ERISA or Section 412 of the Code. Neither Seller nor any of its Affiliates
has incurred any Liability under Title IV of ERISA arising in connection with the termination of any plan covered or previously covered by Title IV of ERISA or Section 412 of the Code that could become, after the Closing Date, an obligation of Buyer
or any of its Affiliates. Each Employee Plan which is intended to be qualified under Section 401(a) of the Code is so qualified and has been so qualified during the period from its adoption to date, and each trust forming a part thereof is exempt
from Tax pursuant to Section 501(a) of the Code. No Business Employee will become entitled to any retirement, severance or similar benefit or enhanced benefit solely as a result of the transactions contemplated hereby. In addition, within the past
five years, Seller has never been a participant in any “prohibited transaction,” within the meaning of Section 406 of ERISA with respect to any employee pension benefit plan (as defined in Section 3(2) of ERISA) which it sponsors as
employer or in which it participates as an employer, which was not otherwise exempt pursuant to Section 408 of ERISA (including any individual exemption granted under Section 408(a) of ERISA), or which could result in an excise Tax under the Code.
No Employee Plan provides, or has any liability to provide, retiree life insurance, retiree health or other retiree employee welfare benefits to any person for any reason, except as may be required by COBRA or other applicable statute, and Seller
has never represented, promised or contracted (whether in oral or written form) to any Business Employee (either individually or to Business Employees as a group) or any other person that such Business Employee(s) or other person would be provided
with retiree life insurance, retiree health or other retiree employee welfare benefit, except to the extent required by statute. Each Employee Plan has been established, maintained and administered in material compliance with its terms and
conditions and with the requirements prescribed by any and all statutory or regulatory laws that are applicable to such Employee Plan. 
  
 (c) Immigration Law Compliance. No Business Employee holds any visa from the United States government, and Seller is not sponsoring
any Business Employees with respect to any visa or other authorization. All Business Employees were hired in compliance with all laws, statutes, regulations and requirements for the lawful hiring of employees who are not citizens of the United
States of America. 
  
 (d) Effect of
Transaction. Except as expressly contemplated by this Agreement, the execution of this Agreement and the consummation of the transactions contemplated hereby will not (either alone or upon the occurrence of any additional or subsequent events)
constitute an event under any Employee Plan, trust or loan that will or may result in any payment (whether of severance pay or 

  

 29 

 
otherwise), acceleration, forgiveness of indebtedness, vesting, distribution, increase in benefits or obligation to fund benefits with respect to any
Business Employee. 
  
 (e) No Employment
Agreements. To Seller’s knowledge, no Business Employee is in material violation of any term of any employment Contract or any restrictive covenant relating to the right of any such Business Employee to be employed by Seller or to use trade
secrets or proprietary information of others, and the employment of any Business Employee does not subject Seller to any liability to any third party. 
  
 (f) Employee List. Schedule 3.14(f) to the Seller Disclosure Letter contains a complete and accurate list of the Business
Employees. As to all such Business Employees, Seller has provided Parent and Buyer with a writing setting forth the locations at which such Business Employees are working as of the Agreement Date, their date of hire and current base salary together
with a complete and accurate list of all written employment contracts (if any) related to any of such Business Employees. 
  
 (g) Continuation of Coverage; COBRA. The group health plans (as defined in Section 4980B(g) of the Code) that benefit Business
Employees are in compliance, in all material respects, with the continuation coverage requirements of Section 4980B of the Code. There are no material outstanding, uncorrected violations under COBRA with respect to any of the Employee Plans that
could materially adversely affect the Business or the Purchased Assets after the Closing Date. 
  
 (h) No Representations to Employees or Consultants of Seller. Seller has made no representations to any Business Employee
concerning the length of time (if any) that the Business Employee’s work or employment with Parent or Buyer may continue or the compensation or benefits or other terms or conditions of employment (if any) with Parent or Buyer to be offered to
Business Employees by Parent or Buyer. 
  
 3.15 No Brokers.
Except for fees payable to First Albany Corporation, Seller is not obligated for the payment of any fees or expenses of any investment banker, broker, finder or similar party in connection with the origin, negotiation or execution of this Agreement
and the Seller Ancillary Agreements or in connection with the transactions contemplated hereby and thereby. Neither Parent nor Buyer will incur any Liability, either directly or indirectly, to any such investment banker, broker, finder or similar
party as a result of any Contract entered into by Seller relating to this Agreement, any of the Seller Ancillary Agreements, the transactions contemplated hereby and thereby or any act or omission of Seller, any of its employees, officers,
directors, stockholders, agents or Affiliates. 
  
 3.16 Books
and Records. 
  
 (a) The books, records and
accounts of Seller relating to the Business, the Purchased Assets or Assumed Liabilities (i) are in all material respects true, complete and correct, (ii) have been maintained in all material respects in accordance with good business practices on a
basis consistent with prior years, (iii) are stated in all material respects in reasonable detail and accurately and fairly reflect the transactions and dispositions of the assets of Seller in all material respects and (iv) accurately and fairly
reflect the basis for the Seller Financial Statements. 
  
 (b) Seller has devised and maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization; (ii)
transactions are recorded as necessary (A) to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements and (B) to maintain accountability for assets and (iii) the amount recorded for
assets on the 

  

 30 

 
books and records of Seller is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

  
 3.17 [Intentionally Omitted]. 
  
 3.18 Fairness of Consideration. Seller’s Board of Directors has
determined that the Purchase Price (including Buyer’s assumption of the Assumed Liabilities) represents fair and reasonably equivalent consideration for the Purchased Assets and title thereto to be transferred to Buyer at the Closing under this
Agreement. Seller’s Board of Directors has received a written opinion from First Albany Corporation, dated as of the date hereof, to the effect that, as of the date hereof, the Asset Purchase is fair to Seller from a financial point of view.

  
 3.19 Privacy. Seller’s collection, use, storage,
transfer and disclosure of any personally identifiable information (“Privacy Practices”), and use by third parties having authorized access to the Seller’s websites or other records, in each case as it relates to the
Business or Purchased Assets, does conform, and at all times has conformed, in all material respects to all Applicable Legal Requirements, and all contractual commitments of Seller to its customers and the viewers of the Seller’s websites,
relating to such practices. With respect to the Purchased Assets and Business, Seller’s Privacy Practices have been consistent with all statements or representations made to customers, potential customers and third parties, whether orally or in
writing, regarding such practices. To the extent applicable to the Business or Purchased Assets, Seller has taken all necessary and appropriate steps to be in compliance with 45 C.F.R. §160 and §164 and the Transaction and Code Set
Standards as promulgated by the U.S. Department of Health and Human Services. 
  
 3.20 No Other Negotiations. During the period from May 20, 2003 through and including June 24, 2003, neither Seller nor any of its officers, directors, stockholders, employees, Affiliates, attorneys, financial
advisors or other agents or representatives has, directly or indirectly, solicited, initiated, sought, facilitated, encouraged, entertained, discussed, supported, or negotiated any inquiry, proposal or offer from, furnished any information to, or
participated in any discussions or negotiations with, any party (other than Parent or Buyer) regarding any (i) acquisition of Seller, (ii) merger, consolidation or similar transaction with or involving Seller or (iii) disposition of all or any
substantial portion of the Business, assets or securities of Seller, including any of the Purchased Assets, or an exclusive license of any technology of Seller, other than in the ordinary course of business (other than with respect to any
discussions, proposals or offers with respect to the possible disposition of Seller’s Foodmark Subsidiary) (each, an “Acquisition Transaction”). 
  
 3.21 Disclosure.  
  
 (a) Neither this Agreement, any of the Seller Ancillary Agreements nor the Seller Disclosure Letter (including all Schedules thereto)
delivered by Seller to Parent and Buyer under this Agreement, taken together, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make any statement contained herein or therein, in light of the
circumstances under which any such statement was made, not misleading. 
  
 (b) The information (i) supplied by Seller for inclusion or incorporation by reference in the Permit Application, the Hearing Notice and the Information Statement, at the time each is filed with the California
Commissioner, and in the case of the Hearing Notice and Information Statement, at the time each is mailed to the holders of Seller Common Stock, and (ii) supplied by Seller for inclusion or incorporation by reference in the Seller Proxy Statement,
at the time it is filed with the SEC, at the time it is mailed to the holders of Seller Common Stock and at the time of the meeting of Seller’s stockholders to consider adoption of this Agreement and approval of the Asset Purchase (the
“Seller Stockholder 

  

 31 

 
Meeting”), and in all cases at all times subsequent thereto (through and including the Closing), shall not contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not false or misleading; or omit to state any material
fact necessary to correct any statement in any earlier communication with respect to the solicitation of proxies for the Seller Stockholder Meeting which has become false or misleading. If at any time prior to the Closing Date any event relating to
Seller or any of its Affiliates, officers or directors should be discovered by Seller which is required to be set forth in a supplement to the Permit Application or Seller Proxy Statement, Seller shall promptly inform Parent and Buyer. 

 
 3.22 Seller Customers. Schedule 3.22 to the Seller
Disclosure Letter is a true and complete list of each customer, client or licensee of the Business for which Seller is currently performing services, or has provided services or sold or licensed products to since January 1, 2000 (the
“Seller Customers”) and, with respect to each such Seller Customer, states what products or services were sold, licensed or provided to and the fees charged for each such Seller Customer through the Agreement Date. The Seller
Customer Assets are accurate and complete in all material respects. Seller has no outstanding material disputes concerning its products and services with any Seller Customers, and Seller has no actual knowledge of any material dissatisfaction on the
part of any such Seller Customer. Seller has not received any written, or, to Seller’s actual knowledge, oral information from any Seller Customer, and has no reason to believe, that such Seller Customer shall not continue as a customer of
Parent or Buyer after the Closing or intends to terminate or materially modify existing Contracts with Seller. 
  
 3.23 Environmental Compliance. Seller has at all times prior to the date of this Agreement and prior to the Closing Date complied in all material
respects with all applicable Environmental Laws both in respect of the Business as carried on from time to time and in respect of any of the facilities at which the Business is now conducted or at which any Purchased Assets are located (each, a
“Facility”) and any prior facility or site at which the Business or at which any Purchased Assets have been located (each, a “Prior Facility”). Seller is not aware of any circumstances that may cause
Seller to be in material non-compliance or violation of any Environmental Laws and Seller is not aware of any circumstances affecting the Business that would reasonably be expected to justify the imposition of any requirement by a competent
authority in accordance with such authority’s powers and obligations under the Environmental Laws which would, if the requirement were not complied with, result in there being a material non-compliance or violation of any Environmental Laws.
There are no past, pending or, to Seller’s knowledge, threatened proceedings, claims or actions against Seller brought under any Environmental Laws before any court, arbitrator or other body which have had or which would, in the event of a
judgment, decision, ruling or order being unfavorable to Seller, have a Material Adverse Effect on the Business or any of the Purchased Assets. To Seller’s knowledge, no part of any Facility or any Prior Facility has been contaminated (whether
by the deposit, spillage, disposal, discharge, release or leaching) in any material respect by any Hazardous Substances that represents a material hazard to health or to the environment. 
  
 3.24 Accounts Receivable. All of the Seller Receivables as of the date hereof are set forth on Schedule 3.24
to the Seller Disclosure Letter (the “Receivables List”). The Receivables List contains a true, correct and complete aging list of all of the Seller Receivables, including the amount of each such Seller Receivable as of the
Agreement Date (which Receivables List will be updated to reflect the Seller Receivables as of the Closing Date and be delivered to Buyer at least one Business Day prior to the Closing Date). All of the Seller Receivables (i) represent sales
actually made or services actually provided by Seller in the ordinary course of business consistent with its past practices, (ii) are current, valid and genuine, (iii) represent a binding obligation of the account party in the book amounts thereof
and (iv) are not subject to any discounts, right of offset or defense against payment of any amount thereof. 
  

 32 

 3.25 Investment Representations. To the extent Shares become issuable pursuant to Section 5.3(c),
Seller represents and warrants that: 
  
 (a)
Purchase for Own Account. The Shares to be purchased by Seller hereunder shall be acquired for investment for Seller’s own account, not as a nominee or agent, and not with a view to the public resale or distribution thereof within the
meaning of the Securities Act, and Seller has no intention of selling, granting any participation in, or otherwise presently distributing the same in violation of the Securities Act or any applicable federal or state securities law and the rules and
regulations thereunder. 
  
 (b) Disclosure of
Information. At no time was Seller presented with or solicited by any publicly issued or circulated newspaper, mail, radio, television or other form of general advertising or solicitation in connection with the offer, sale and issuance of the
Shares. Seller has received or has had full access to all of the information it considers necessary or appropriate to make an informed investment decision with respect to the Shares to be issued to Seller under this Agreement. Seller further has had
an opportunity to ask questions and receive answers from Parent and Buyer regarding the terms and conditions of the offering of the Shares and to obtain additional information (to the extent Parent or Buyer possessed such information or could
acquire it without unreasonable effort or expense) necessary to verify any information furnished to Seller or to which Seller had access. The foregoing, however, does not in any way limit or modify the representations and warranties made by Parent
and Buyer in Article 4, “Representations and Warranties of Parent and Buyer.” 
  
 (c) Accredited Investor Status. Seller is an “accredited investor” within the meaning of Regulation D under the
Securities Act. Seller is a corporation, not formed for the purpose of acquiring the Shares. 
  
 (d) Investment Experience. Seller understands that an investment in the Shares involves substantial risk. Seller acknowledges that
Seller is able to fend for itself, Seller can bear the economic risk of Seller’s investment in the Shares and Seller’s board of directors has such knowledge and experience in financial or business matters that Seller is capable of
evaluating the merits and risks of this investment in the Shares and protecting its own interests in connection with this investment. 
  
 (e) Restricted Securities. Seller understands that the Shares are characterized as “restricted securities” under the
Securities Act inasmuch as they are being acquired in a transaction not involving a public offering and that under the Securities Act such securities may be resold without registration under the Securities Act only in certain limited circumstances.
In this connection, Seller represents that Seller is familiar with Rule 144 of the Securities and Exchange Commission, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. Seller understands that
Parent is under no obligation to register any of the Shares except as provided in Section 5.3. 
  
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF PARENT AND BUYER 
  
 Parent and Buyer, jointly and severally, represent and warrant to Seller
that, except as set forth in the letter from Parent and Buyer addressed to Seller and dated as of the date hereof, which letter has been delivered by Parent and Buyer to Seller concurrently with the parties’ execution of this Agreement (the
“Parent Disclosure Letter”), each of the representations, warranties and statements contained in the following sections of this Article 4 is true and correct as of the date hereof and will be true and correct as of the
Closing Date (other than such representations and warranties that are expressly made as of another 

  

 33 

 
date, in which case such representations and warranties are true and correct as of such other specified date). 
  
  
 4.1 Organization and Good Standing. Each of Parent and Buyer is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Each of Parent and Buyer has the corporate power and
authority to own, operate and lease its properties and to carry on its business as now conducted and as presently proposed to be conducted, and is qualified to conduct business, and is in good standing, in each jurisdiction in which the character of
the properties owned, leased or operated by it or the nature of its activities makes such qualification necessary, except where such failure would not have a Material Adverse Effect on Parent or Buyer. 
  
 4.2 Power; Authorization and Validity. 
  
 (a) Power and Authority; Due Authorization. Each of
Parent and Buyer has all requisite corporate power and authority to enter into, execute, deliver and perform its obligations under this Agreement and each of the Buyer Ancillary Agreements and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by each of Parent and Buyer of this Agreement and each of the Buyer Ancillary Agreements, and the purchase of the Purchased Assets by Buyer, have been duly and validly approved and authorized by all
necessary corporate action on the part of Parent and Buyer. 
  
 (b) Consents. No consent, approval, order or authorization of, notification to, action by or registration, declaration or filing with, any Governmental Authority, or any other person, governmental or otherwise,
is necessary or required to be made or obtained by Parent or Buyer to enable each of Parent and Buyer to lawfully enter into, execute, deliver and perform its respective obligations under this Agreement and each of the Buyer Ancillary Agreements, or
to consummate the transactions contemplated hereby or thereby. 
  
 (c) Enforceability. This Agreement has been duly executed and delivered by Parent and Buyer. This Agreement and each of the Buyer Ancillary Agreements are, or when duly executed and delivered by Parent and
Buyer shall be, valid and binding obligations of Parent and/or Buyer, as applicable, enforceable against Parent and/or Buyer, as applicable, in accordance with their respective terms, subject only to the effect, if any, of (i) applicable bankruptcy
and other similar laws affecting the rights of creditors generally and (ii) rules of law and equity governing specific performance, injunctive relief and other equitable remedies. 
  
 4.3 Parent Exchange Act Documents. 
  
 (a) Parent has filed all forms, reports and documents (together with any required amendments thereto)
required to be filed by Parent with the SEC since December 31, 2000. All such required forms, reports and documents (including those that Parent may file subsequent to the date hereof) are referred to herein as the “Parent Exchange Act
Documents.” As of their respective dates, the Parent Exchange Act Documents (i) were prepared in accordance with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC
thereunder applicable to such Parent Exchange Act Documents and (ii) did not at the time they were filed (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing) contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, except to the extent corrected prior to
the date of this Agreement by a subsequently filed Parent Exchange Act Document. The Parent Exchange Act Documents, taken as a whole, together with any press release that is broadly disseminated after the date of the most recent Parent Exchange Act

  

 34 

 
Documents and the date of this Agreement, do not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. None of Parent’s Subsidiaries is required to file any forms, reports or other documents with the SEC.

  
 (b) Each of the consolidated financial
statements (including, in each case, any related notes thereto) contained in the Parent Exchange Act Documents (the “Parent Financial Statements”), including each Parent Exchange Act Document filed after the Agreement Date
until the Closing, (i) complied as to form in all material respects with the published rules and regulations of the SEC with respect thereto, (ii) was prepared in accordance with GAAP applied on a consistent basis throughout the periods involved
(except as may be indicated in the notes thereto or, in the case of unaudited interim financial statements, as may be permitted by the SEC on Form 10-Q, Form 8-K or any successor form under the Exchange Act) and (iii) fairly presented the
consolidated financial position of Parent and its Subsidiaries as at the respective dates thereof and the consolidated results of Seller’s operations and cash flows for the periods indicated, except that the unaudited interim financial
statements may not contain footnotes and were or are subject to normal and recurring year-end adjustments. The balance sheet of Parent contained in Parent’s Annual Report on Form 10-K for the year ended December 31, 2002 is hereinafter referred
to as the “Parent Balance Sheet.” Except as disclosed in the Parent Financial Statements, since the date of the Parent Balance Sheet, neither Parent nor any of its Subsidiaries has any liabilities required under GAAP to be
set forth on a balance sheet (absolute, accrued, contingent or otherwise) which are, individually or in the aggregate, material to the business, results of operations or financial condition of Parent and its Subsidiaries taken as a whole, except for
liabilities for accrued expenses incurred since the date of the Parent Balance Sheet in the ordinary course of business consistent with past practices and liabilities incurred in connection with this Agreement. 
  
 (c) Parent has heretofore furnished to Seller a complete and
correct copy of any amendments or modifications, which have not yet been filed with the SEC but which are required to be filed, to agreements, documents or other instruments which previously had been filed by Parent with the SEC pursuant to the
Securities Act or the Exchange Act. 
  
 4.4 Capitalization.

  
 (a) The authorized capital stock of Parent
consists of 300,000,000 shares of Parent Common Stock and 5,000,000 shares of Parent Preferred Stock. The rights and privileges of each class of Parent’s capital stock are set forth in the Parent’s Certificate of Incorporation. As of the
close of business on July 15, 2003, 18,983,880 shares of Parent Common Stock were issued and outstanding and no shares of Parent Preferred Stock were issued or outstanding. No material change in such capitalization has occurred since July 15, 2003.

  
 (b) Schedule 4.4(b) of the Parent
Disclosure Letter sets forth a complete and accurate list, as of the Agreement Date, of: (i) all stock option plans or other stock or equity-related plans of Parent (the “Parent Stock Plans”), indicating for each Parent Stock Plan the
number of shares of Parent Common Stock issued to date under such Plan, the number of shares of Parent Common Stock subject to outstanding options under such Plan and the number of shares of Parent Common Stock reserved for future issuance under
such Plan; and (ii) the number of shares of Parent capital stock, and the class or series of such shares, subject to any outstanding warrants or other contractual rights to purchase or acquire capital stock of the Parent. Except as set forth in this
Section 4.4 or the Parent Disclosure Letter, as of the Agreement Date, (i) no subscription, warrant, option, convertible security or other right (contingent or otherwise) to purchase or acquire any shares of capital stock of Parent is authorized or
outstanding, (ii) Parent has no obligation (contingent or otherwise) to issue any subscription, warrant, option, convertible security or other such right, or to issue or distribute to holders of any shares of its 

  

 35 

 
capital stock any evidences of indebtedness or assets of Parent, (iii) Parent has no obligation (contingent or otherwise) to purchase, redeem or otherwise
acquire any shares of its capital stock or any interest therein or to pay any dividend or to make any other distribution in respect thereof, and (iv) there are no outstanding or authorized stock appreciation, phantom stock or similar rights with
respect to Parent. 
  
 4.5 No Conflict. Neither the
execution and delivery of this Agreement or any of the Buyer Ancillary Agreements by Parent or Buyer, nor the consummation of the transactions contemplated hereby or thereby, will conflict with, or (with or without notice or lapse of time, or both)
result in a termination, breach, impairment or violation of, or constitute a default under: (i) any provision of the Certificate of Incorporation or Bylaws of Parent or Buyer, each as currently in effect; (ii) any Applicable Legal Requirements or
(iii) any Contract (whether oral or in writing) to which Parent or Buyer is a party or by which Parent or Buyer is bound, except in the cases of clauses (ii) and (iii), where such conflict, termination, breach, impairment, violation or default would
not have a Material Adverse Effect on Parent or Buyer. 
  
 4.6
Litigation. Except as required to be disclosed in the Parent Exchange Act Documents, there is no claim, action, suit, arbitration, mediation, investigation or proceeding of any nature in progress or pending or, to Parent’s knowledge,
threatened against Parent (or against any officer, director, employee or agent of Parent in their capacity as such or relating to their employment, services or relationship with Parent) before any court, Governmental Authority, arbitrator or
mediator. Except as required to be disclosed in the Parent Exchange Act Documents, there is no judgment, decree, injunction, rule or order of any court, Governmental Authority or arbitrator pending or binding against Parent. To Parent’s
knowledge, there is no reasonable basis for any person to assert a claim against Parent, Buyer or Seller based upon Parent and Buyer entering into this Agreement or any of the Buyer Ancillary Agreements or consummating the transactions contemplated
hereby or thereby. 
  
 4.7 No Brokers. Neither Parent nor
Buyer, nor any Affiliate of Parent or Buyer, is obligated for the payment of any fees or expenses of any investment banker, broker, finder or similar party in connection with the origin, negotiation or execution of this Agreement and the Buyer
Ancillary Agreements or in connection with the transactions contemplated hereby and thereby. Seller will not incur any Liability, either directly or indirectly, to any such investment banker, broker, finder or similar party as a result of any
Contract entered into by Parent or Buyer relating to this Agreement, any of the Buyer Ancillary Agreements, the transactions contemplated hereby and thereby or any act or omission of Parent or Buyer, or any of its respective employees, officers,
directors, stockholders, agents or Affiliates. 
  
 4.8 Valid
Issuance of Stock. The Shares, when issued and delivered as provided in this Agreement, shall be duly authorized and validly issued, fully paid and nonassessable and will be free of restrictions on transfer, other than restrictions on transfer
pursuant to this Agreement and/or pursuant to federal and state securities laws. 
  
 4.9 Nasdaq Requirements. Parent shall comply with all applicable requirements of the National Association of Securities Dealers, Inc. with respect to the issuance of the Shares and the listing thereof on The
Nasdaq National Market. 
  
 4.10 Absence of Certain
Changes. Since the date of the Parent Balance Sheet, Parent has operated its business in the ordinary course consistent with its past custom and practice, and since such date there has not been with respect to Parent any Material Adverse Change
with respect to Parent. 
  
 4.11 Registration Obligations.
Parent has not committed to (i) register any Parent Common Stock under the Securities Act or (ii) issue shares pursuant to a permit in connection with a hearing to be held by the California Commissioner pursuant to Section 25142 of the California
Securities Law and 

  

 36 

 
conducted in compliance with Section 3(a)(10) of the Securities Act, in each case to the extent such commitment could prevent, prior to the Termination Date,
Parent’s issuance of the Shares to be issued to Seller in accordance with Section 5.3 of this Agreement. 
  
 ARTICLE 5 
 OTHER COVENANTS AND AGREEMENTS 
  
 5.1 Advice of Changes. Seller covenants and agrees that, during the
Pre-Closing Period, it shall promptly advise Parent in writing of any Material Adverse Change in the Purchased Assets or the Business. Each of Seller, on the one hand, and Parent and Buyer, on the other hand, shall give prompt written notice to the
other of: (i) any event occurring after the date hereof that would render any representation or warranty of such party contained in this Agreement or any of the Seller Ancillary Agreements or Buyer Ancillary Agreements, as the case may be, if made
on or as of the date of such event or the Closing Date, untrue or inaccurate in any material respect (except for any representation or warranty that is only made as of a particular date); (ii) any breach of any covenant or obligation of such party
pursuant to this Agreement or any of the Seller Ancillary Agreements or Buyer Ancillary Agreements, as the case may be; (iii) any notice or other communication from any person not listed on Schedule 3.2(c) of the Seller Disclosure Letter
alleging that the consent of such person is or may be required in connection with the transactions contemplated by this Agreement, any of the Seller Ancillary Agreements or any of the Buyer Ancillary Agreements; (iv) any notice or other
communication from any Governmental Authority in connection with the transactions contemplated by this Agreement, any of the Seller Ancillary Agreements or any of the Buyer Ancillary Agreements and (v) any litigation relating to, involving or
otherwise relating to the consummation of the transactions contemplated by this Agreement, any of the Seller Ancillary Agreements or any of the Buyer Ancillary Agreements. 
  
 5.2 Conduct of Business Prior to the Closing. Seller covenants and agrees that, from the period beginning on the date
hereof and continuing until the earlier of the termination of this Agreement pursuant to its terms or the Closing (the “Pre-Closing Period”), Seller shall continue to conduct the Business in the ordinary course consistent
with past practice, and it will use its commercially reasonable best efforts to preserve the Business and relationships with Seller Customers, suppliers, licensors, licensees, Business Employees, consultants and others with whom it has business
dealings in connection with the Business. During the Pre-Closing Period, if any Seller Knowledge Party becomes aware of a deterioration in the relationship with any Seller Customer listed on Schedule 5.2(a) of the Seller Disclosure Letter (a
“Material Seller Customer”) or a material deterioration in the relationship with any supplier, licensor, licensee, Business Employee, consultant or business partner in connection with the Business, it will promptly bring such
information to Parent’s and Buyer’s attention in writing and, if requested by Parent or Buyer, will exert its commercially reasonable efforts to promptly restore the relationship. During the Pre-Closing Period, if any Parent Knowledge
Party becomes aware of a deterioration in the relationship with any Material Seller Customer it will promptly bring such information to Seller’s attention in writing. During the Pre-Closing Period, if any Parent Knowledge Party becomes aware of
a deterioration in the relationship with any customer of Parent listed on Schedule 5.2(b) of the Parent Disclosure Letter, it will promptly bring such information to Seller’s attention in writing and, if requested by Seller, will exert
its commercially reasonable efforts to promptly restore the relationship. During the Pre-Closing Period, Seller shall not, with respect to the Business without Parent’s prior written consent: 
  
 (a) take any action that would reasonably be expected to
result in any breach of any representation or warranty of Seller set forth in Article 3, “Representations and Warranties of Seller”; 
  
 (b) take any action which would reasonably be expected to result in a Material Adverse Change with respect to the Business as currently
conducted or the Purchased Assets; 
  

 37 

 (c) sell, transfer, assign, convey, lease, encumber, move, relocate or otherwise dispose
of any of the Purchased Assets; 
  
 (d) take any
action that could reasonably be expected to result in the incurrence, creation or assumption by Seller of (i) any Encumbrance on any of the Purchased Assets, (ii) any Liabilities or any indebtedness for borrowed money, in each case, that would be an
Assumed Liability or (iii) any contingent Liability that would be an Assumed Liability as a guarantor or surety with respect to the obligations of others; 
  
 (e) enter into any material transaction or agreement or take any other action, in each case not in the ordinary course of business
consistent with past practice; 
  
 (f) amend or
terminate any Assigned Agreement, except such Assigned Agreements that expire upon their terms; 
  
 (g) enter into any Contract with a customer with respect to the Purchased Assets or Business (i) that does not permit assignment of such
Contract to Purchaser or Buyer, (ii) involving payments of $250,000 or more in license fees or (iii) involving payments of less than $250,000 in license fees if such Contract is on terms inconsistent with the past conduct of Seller’s business
in the ordinary course, including any Contract that includes (A) material pricing discounts based on the prices that Seller has historically charged customers for similar products or services, (B) guaranteed refund rights or (C) specific performance
metrics that Seller must satisfy in order to receive full payment under the Contract; provided, however, that Parent will be deemed to have consented to any such Contract in the event that either (i) Parent does not respond to
Seller’s written request for approval of such Contract within five days of receiving such written request or (ii) Parent does not respond to Seller’s written request for approval of such Contract within 48 hours of receiving such written
request in the event that Seller makes such written request during the last two weeks of a fiscal quarter; provided, further, that Parent will not unreasonably withhold its written consent with respect to any Contract subject to this
Section 5.2(g) submitted for Parent’s approval by Seller; 
  
 (h) waive or release any material right or claim with respect to the Purchased Assets or Business; 
  
 (i) license any of its technology or Intellectual Property Rights, or acquire any Intellectual Property Rights or any license thereto from
any third party, other than pursuant to standard non-exclusive licenses to Seller’s customers granted in the ordinary course of business; 
  
 (j) fail to maintain its equipment and other assets that are Purchased Assets in good working condition and repair according to the
standards it has maintained to the date hereof, subject only to ordinary wear and tear; 
  
 (k) terminate the employment of any Business Employees, except for cause so long as prior written notice is provided to Parent;

  
 (l) with respect to any Business Employee,
increase or modify in any material respect the rate of remuneration or any other benefit or consideration (including benefits payable under Employee Plans and whether payable in cash, stock, equity securities, property or otherwise), or any other
terms of employment, or grant any severance or termination pay in cash or otherwise except pursuant to written agreements outstanding as of the Agreement Date and as disclosed and provided to Parent and Buyer, or policies existing, on the Agreement
Date and as previously disclosed in writing or made 

  

 38 

 
available to Parent and Buyer, or adopt any new severance plan, amend or modify or alter in any manner any severance plan, agreement or arrangement existing
on the Agreement Date hereof or grant any bonus, payment or equity-based compensation to any Business Employee (except as expressly permitted by this Agreement), whether payable in cash, stock or other securities; 
  
 (m) amend its Certificate of Incorporation or Bylaws in a
manner inconsistent with the terms of this Agreement, the Seller Ancillary Agreement or the transactions contemplated hereby and thereby; 
  
 (n) materially change the pricing or other material terms of Seller’s products or services related to the Business; or 
  
 (o) agree to do any of the things described in the preceding
clauses (a) through (o). 
  
 5.3 Permit; Fairness Hearing.

  
 (a) As soon as practicable after the
Agreement Date, and in any event within ten Business Days after the Agreement Date, (i) Parent and Buyer shall prepare, with the cooperation of Seller, (A) an application for the Permit (the “Permit Application”) in
connection with the hearing held by the California Commissioner, pursuant to Section 25142 of the California Securities Law and conducted in compliance with Section 3(a)(10) of the Securities Act, to consider the terms and conditions of this
Agreement and the Asset Purchase and the fairness of such terms and conditions (the “Hearing”) and (B) the notice of the Hearing (the “Hearing Notice”) to be sent to Seller pursuant to, and meeting the
requirements of, the California Administrative Code, Title 10, Chapter 3, Subchapter 1, Article 2, as amended, concerning the Hearing, and (ii) Seller shall prepare, with the cooperation of Parent and Buyer, an information statement relating to this
Agreement and the transactions contemplated hereby (the “Information Statement”) which Information Statement may, at Seller’s option if permitted by Applicable Legal Requirements, be combined with the Seller Proxy
Statement described in Section 5.4. Each of Seller, Parent and Buyer shall use its reasonable best efforts to cause the Permit Application, the Hearing Notice and the Information Statement to comply with all Applicable Legal Requirements, including
all applicable federal and state securities laws. 
  
 (b) Each of Parent, Buyer and Seller shall use its reasonable best efforts (i) to cause the Permit Application, the Hearing Notice and the Information Statement to be filed with the California Commissioner, as soon as practicable following
the Agreement Date, (ii) to deliver the Hearing Notice to Seller, as soon as permitted by the California Commissioner, (iii) to obtain, as soon as practicable thereafter, the Permit and (iv) to deliver the Information Statement to Seller as soon as
practicable following the issuance, if any, of the Permit. 
  
 (c) In the event that Parent and Seller determine in writing that the Permit cannot be obtained, or cannot reasonably be expected to be obtained, in time to permit the Closing to occur on or before the Termination
Date, or if the California Commissioner notifies Parent, Buyer or Seller of the California Commissioner’s determination not to grant the Hearing, not to permit the mailing of the Hearing Notice and/or not to issue the Permit, then Parent shall
issue the Shares in a transaction exempt from registration under the Securities Act under Section 4(2) thereof and/or Regulation D promulgated under the Securities Act and the exemptions from qualification under applicable state securities laws. If
the Shares are issued pursuant to Section 4(2) and/or Regulation D, the Shares may not be reoffered or resold other than pursuant to the registration requirements of the Securities Act or an exemption therefrom. The certificates issued by Parent
with respect to the Shares shall, if issued pursuant to Section 4(2) and/or Regulation D, be legended to the effect described above and shall include such additional legends as necessary to comply with Applicable Legal Requirements, including all
applicable federal and 

  

 39 

 
state securities laws, and such other restrictions as shall be deemed necessary and appropriate by Parent. If the Shares are issued pursuant to Section 4(2)
and/or Regulation D, then Parent agrees that at such time as it is eligible to use a registration statement on Form S-3 to register Parent Common Stock under the Securities Act, Parent shall use its reasonable best efforts to promptly prepare and
file a registration statement with the SEC covering the resale of such Shares; provided, however, that if Parent has not filed with the SEC a registration statement on Form S-3 by January 15, 2004, then Parent will promptly prepare and
file a registration statement on Form S-1 with the SEC covering the resale of such Shares (the registration statement filed with the SEC on Form S-1 or Form S-3, the “Resale Registration Statement”). Parent shall use its
reasonable best efforts to cause such registration statement to become effective as promptly as practicable after filing and to keep such Resale Registration Statement continuously effective until all the Shares are saleable within a three-month
period pursuant to Rule 144 of the Securities Act. 
  
 (d) Parent and Seller will bear, pay and be responsible in equal proportions for all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred by it in connection with the Hearing.

  
 5.4 Seller Stockholder Meeting. 
  
 (a) As soon as practicable after the Agreement Date, Seller
shall prepare, with the cooperation of Parent and Buyer, a proxy statement satisfying the requirements of Regulation 14A under the Exchange Act (the “Seller Proxy Statement”) in connection with the solicitation of the holders
of Seller Common Stock of adoption of this Agreement and approval of the Asset Purchase. Each of Seller, Parent and Buyer shall use its reasonable best efforts to cause the Seller Proxy Statement to comply with all Applicable Legal Requirements,
including all applicable federal and state securities laws. 
  
 (b) Seller shall use its reasonable best efforts (i) to cause to be filed with the SEC, the Seller Proxy Statement in preliminary form, as soon as practicable following the Agreement Date and (ii) to mail the Seller
Proxy Statement in definitive form to all holders of Seller Common Stock entitled to receive such Seller Proxy Statement under the Delaware General Corporation Law, as promptly as practicable. 
  
 (c) Seller shall take all such other necessary action in
accordance with Delaware General Corporation Law, its Certificate of Incorporation and its Bylaws to call, convene and hold the Seller Stockholder Meeting. Seller shall take such action as soon as practicable after the date (i) the California
Commissioner issues the Permit, (ii) Parent and Seller determine in writing that the Permit cannot be obtained, or cannot reasonably be expected to be obtained, in time to permit the Closing to occur on or before the Termination Date or (iii) the
California Commissioner notifies Parent, Buyer or Seller of the California Commissioner’s determination not to grant the Hearing, not to permit the mailing of the Hearing Notice and/or not to issue the Permit. Seller, after consultation with
Parent, may postpone or adjourn the Seller Stockholder Meeting to the extent necessary to ensure that any required supplement or amendment to the Seller Proxy Statement is provided to the Seller’s stockholders or, if as of the time for which
the Seller Stockholder Meeting is originally scheduled there are insufficient shares of Seller Common Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business of the Seller Stockholder Meeting.
Subject to Section 5.5(c), Seller shall use its reasonable best efforts to solicit from stockholders of Seller such proxies as are required to adopt this Agreement and approve the Asset Purchase and shall take all other action necessary or advisable
to secure the vote of holders of Seller Common Stock required to effect each of the transactions contemplated by this Agreement. 
  

 40 

 5.5 No Other Negotiations.  
  
 (a) Seller covenants and agrees that during the Pre-Closing Period, it will not, and will not authorize or
permit any of its officers, directors, employees, Affiliates, attorneys, financial advisors or any other persons acting on its behalf to, directly or indirectly, solicit, initiate, seek, facilitate, encourage, entertain, discuss, support, negotiate
or accept any inquiry, proposal or offer from, furnish any information to, or participate in any discussions (except discussions to elicit information concerning an unsolicited proposal for an Acquisition Transaction that may be required by the
Board of Directors of Seller in the exercise of their fiduciary duties to determine whether such proposal will constitute a Superior Offer) or negotiations with, or enter into any agreement with, any party (other than Parent or Buyer) regarding any
Acquisition Transaction; provided, however, that Seller and its officers, directors, employees, Affiliates, attorneys, financial advisors or any other persons acting on its behalf may solicit, initiate, seek, facilitate, encourage, entertain,
discuss, support, negotiate or accept any inquiry, proposal or offer from, furnish any information to, or participate in any discussions or negotiations with, or enter into any agreement with, any party regarding (i) an acquisition of the Excluded
Assets or of Seller that does not include the Purchased Assets or (ii) a merger, consolidation or similar transaction with or involving Seller, in both cases that would not prevent the consummation, prior to the Termination Date, of the transactions
contemplated by this Agreement. Each of Seller, Parent and Buyer covenants and agrees that during the Pre-Closing Period, it will not enter into any transaction that would prevent the consummation, prior to the Termination Date, of the transactions
contemplated by this Agreement, except as otherwise determined by each of the respective Boards of Directors of Parent and Buyer in its exercise of its fiduciary duties. 
  
 (b) Seller covenants and agrees that during the Pre-Closing Period, it will notify Parent promptly, and in
any event within 24 hours, after the receipt by Seller or any of its officers, directors, employees, Affiliates, attorneys, financial advisors or any other persons acting on its behalf of any proposal for, or inquiry with respect to, an Acquisition
Transaction or any request for information in connection with such a proposal or inquiry, or for access to the properties, books and records of Seller by any person or entity that informs or has informed Seller that it is considering making or has
made such a proposal or inquiry. Seller shall notify Parent of the identity of the person or group making such a proposal or inquiry and shall provide the material terms and conditions of such proposal or inquiry. Seller agrees to keep Parent
informed on an on-going basis regarding the status of any such proposal or inquiry. 
  
 (c) The Board of Directors of Seller shall be permitted to modify its recommendation in favor of the adoption of this Agreement and the
approval of this Asset Purchase if (i) Seller receives an unsolicited Superior Offer and such Superior Offer is not withdrawn, (ii) Seller shall have provided written notice (a “Notice of Superior Offer”) to Parent advising
that Seller has received a Superior Offer, summarizing the material terms and conditions of such Superior Offer and identifying the party making such Superior Offer (provided that Seller shall not be required to provide Parent with any such Notice
of Superior Offer if Seller received the Superior Offer from a third-party with which it entered into a confidentiality agreement prior to May 20, 2003 and the terms of such confidentiality agreement explicitly prohibit Seller from providing to
Parent the information required to be set forth in the Notice of Superior Offer), (iii) Parent shall not have made, within two Business Days of its receipt of the Notice of Superior Offer, an offer that the Board of Directors of Seller determines in
its good faith judgment by a majority vote (after consultation with its financial advisor) to be at least as favorable to the holders of Seller Common Stock as such Superior Offer (it being agreed that the Board of Directors of Seller shall convene
a meeting to consider any such offer by Parent promptly following the receipt thereof), (iv) the Board of Directors of Seller concludes in good faith, after consultation with its outside legal counsel, that, in light of such Superior Offer, the
failure to modify such recommendation would be inconsistent with the fiduciary duties of the Board of Directors of Seller to the holders of Seller Common Stock under all Applicable Legal Requirements and (v) Seller shall not have knowingly or
materially violated any of the restrictions set forth in this Section 5.5. Seller shall provide Parent with at least two Business Days notice 

  

 41 

 
(or such lesser prior notice as provided to the members of the Board of Directors of Seller) of any meeting of the Board of Directors of Seller at which the
Board of Directors of Seller is reasonably expected to consider any Acquisition Transaction to determine whether such Acquisition Transaction is a Superior Offer. Nothing contained in this Section 5.5(c) shall limit Seller’s obligation to
convene the Seller Stockholder Meeting (regardless of whether the recommendation of the Board of Directors of Seller shall have been modified). As used in this Agreement, the term “Superior Offer” means an unsolicited, bona
fide written offer made by a third party to consummate an Acquisition Transaction on terms that the Board of Directors of Seller determines, in its good faith judgment (after consultation with its financial advisor) to be more favorable to the
holders of Seller Common Stock than the Asset Purchase (taking into account any written proposals made by Parent after receipt of the Notice of Superior Offer to modify the terms of the Asset Purchase); provided, however, that any such offer
shall not be deemed to be a “Superior Offer” if any financing required to consummate the transaction contemplated by such offer is not committed and is not likely in the good faith determination of the Board of Directors of Seller (after
consultation with its financial advisor) to be obtained by such third party on a timely basis. 
  
 5.6 Access to Information; Right to Use Purchased Assets. 
  

(a) Seller covenants and agrees that, during the Pre-Closing Period, it will allow Parent, Buyer and their agents access at reasonable
times to the files, books, records, technology, contracts, personnel and offices of Seller pertaining to the Business, subject to the terms of this Agreement. If, before or after the Closing, in order to properly operate the Purchased Assets or the
Business or to properly prepare documents required to be filed with Governmental Authorities or its financial statements, it is necessary that Parent or Buyer be furnished with additional information relating to Seller, the Purchased Assets or the
Business, and such information is in Seller’s possession, Seller agrees to use all reasonable efforts to furnish such information to Parent or Buyer. If, before or after the Closing, in order to properly prepare documents required to be filed
with Governmental Authorities or its financial statements, it is necessary that Seller be furnished with additional information relating to the Purchased Assets or the Business, and such information is in Parent’s or Buyer’s possession,
Parent and Buyer agree to use all reasonable efforts to furnish such information to Seller. 
  
 (b) Each party hereto agrees that in the event any party is actively contesting or defending against any action, suit, proceeding,
hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction contemplated under this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act, or transaction on or prior to the Closing Date involving the Business or the Purchased Assets, the other party will cooperate with the contesting or defending party and its counsel by making available its personnel and
providing such testimony and access to its books and records as shall be necessary in connection with the contest or defense, all at the sole cost and expense of the contesting or defending party (unless the contesting or defending party is entitled
to indemnification therefor under Article 7). 
  
 (c) Except as permitted by the Software Distribution and License Agreements, during the Restricted Period, Seller will not take any action that is intended to have the effect of discouraging any lessor, licensor, customer, supplier, or
other business associate of the Business from maintaining the same business relationships with the Buyer after the Closing as it maintained with Seller prior to the Closing. Except as permitted by the Software Distribution and License Agreements,
during the Restricted Period, Seller will refer all customer inquiries relating to the Business to the Buyer from and after the Closing. 
  

 42 

 5.7 Employment Matters. 
  
 (a) Selected Employees. Within 45 days after the Agreement Date, Parent and Buyer, in their sole
discretion, will determine and inform Seller of the identity of the Business Employees, if any, to whom Parent or Buyer will offer employment (the “Selected Employees”), and the terms and conditions of any such offer.
Notwithstanding the foregoing, neither Parent nor Buyer shall have any obligation to employ any of the employees of Seller, including any Selected Employee. Seller will not take any action, before or after the Closing, directly or indirectly, to
prevent or discourage any Selected Employee from being employed by Parent or Buyer. Seller will retain, and Parent and Buyer will not assume, any employer or employment-related obligations of Seller to the Selected Employees or any other liability
of Seller related to any Selected Employee that arises or accrues on or before the Closing Date, including, without limitation: (i) accrued personal time off (including sick leave); (ii) any obligation to provide health, medical, disability, life or
other insurance benefits or any stock, stock option rights, or pension savings plan or similar benefits pursuant to any Seller employee benefit plan, plans, agreement or arrangement; (iii) any government-mandated employee or employment-related
payments; (iv) workers’ compensation and disability insurance premiums (if any) paid or payable by Seller on behalf of Selected Employees who are on workers’ compensation or disability leave as of the Closing Date; or (v) any bonuses
accrued or earned by any of the Selected Employees on or prior to the Closing Date. Any Liabilities to any of the employees of Seller resulting from Parent’s or Buyer’s failure to offer employment to any such employee will be, and will
remain, Seller’s sole responsibility. 
  
 (b) No Third Party Beneficiaries. Notwithstanding any possible inferences to the contrary, Parent, Buyer and Seller do not intend for this Section 5.7 to create any rights or obligations except as between Buyer and Seller, and no
past, present or future employee of Seller, Parent or Buyer shall be treated as a third party beneficiary of this Agreement. 
  
 (c) Waiver of Noncompetition Agreements. Seller shall execute and deliver agreements and instruments, in such form as may be
reasonably satisfactory to Parent, releasing those Selected Employees who accept employment with Parent or Buyer from any obligations of such Selected Employees to Seller that may first arise after the Closing with respect to the Business under
employment agreements, confidentiality agreements, invention agreements or other similar agreements to the extent that such obligations would restrict or inhibit such Selected Employees’ performance of their duties as employees of Parent or
Buyer. 
  
 (d) COBRA. Seller shall comply
with all requirements and assume all obligations under COBRA, the Health Insurance Portability and Accountability Act of 1996, the Women’s Health and Cancer Rights Act of 1998 and the Family Medical Leave Act of 1993 with respect to the
termination of any Business Employees in connection with the transactions contemplated by the Asset Purchase. 
  
 (e) Termination of Employment. Seller agrees to comply with the provisions of the WARN Act and any other federal, state or local
statute or regulation regarding termination of employment in connection with the Asset Purchase and to perform all obligations that might otherwise be required by Seller with respect to the cessation of any operations of the Business or the
termination of any Business Employee in connection with the transactions contemplated by the Asset Purchase. 
  
 (f) General Matters. Seller, Parent and Buyer agree to cooperate fully with respect to the actions which are necessary or
reasonably desirable to accomplish the transactions contemplated hereunder, including, without limitation, the provision of records and information as each may reasonably request and the making of all appropriate filings under ERISA and the Internal
Revenue Code. 
  
 5.8 Satisfaction of Conditions Precedent.
Seller covenants and agrees that, subject to Section 5.5(c), during the Pre-Closing Period, it will use its diligent efforts to (i) satisfy or cause to be satisfied all the conditions precedent set forth in Section 8.2 and (ii) cause the
transactions contemplated hereby to be 

  

 43 

 
consummated in accordance with this Agreement. Each of Parent and Buyer covenants and agrees that, during the Pre-Closing Period, it will use its diligent
efforts to (i) satisfy or cause to be satisfied all the conditions precedent set forth in Section 8.1 and (ii) cause the transactions contemplated hereby to be consummated in accordance with this Agreement. Notwithstanding anything in this Agreement
to the contrary, neither Parent, Buyer nor any of their respective Affiliates shall be under any obligation to make proposals, execute or carry out agreements or submit to orders providing for the sale or other disposition or holding separate
(through the establishment of a trust or otherwise) of any assets or categories of assets of Parent, Buyer or any of their respective Affiliates or the holding separate of any of the Purchased Assets or imposing or seeking to impose any limitation
on the ability of Parent, Buyer or any of their respective Affiliates to conduct their business or the Business or own the Purchased Assets upon and after the Closing. 
  
 5.9 Public Disclosure. 
  
 (a) Parent and Seller will consult with each other, and to the extent practicable, agree, before issuing any press release or otherwise
making any public statement with respect to the Asset Purchase or this Agreement, and will not issue any such press release or make any such public statement prior to such consultation, except as may be required by law or any listing agreement with
a national securities exchange. The parties have agreed to the text of the press releases to be issued by the parties announcing the signing of this Agreement. 
  

(b) If Parent or Seller determines that it is required by law to file any agreement with the Securities and Exchange Commission which
contains a reference to the other party, then Parent or Seller, as applicable, shall at a reasonable time before making any such filing, provide written notice to the other party regarding such filing and seek confidential treatment for such
portions of the agreement as may be reasonably requested by such party. 
  
 5.10 Further Actions. From and after the Closing, Seller will (i) file any notice, statement or other communication, (ii) obtain and provide to Parent and Buyer (and will promptly prepare all filings and applications, requests and
notices preliminary to obtaining) all approvals and consents, (iii) execute and deliver all such other and additional instruments, notices, releases, undertakings and documents and (iv) do all such other acts and things, all as may be reasonably
requested by Parent or Buyer as necessary to assure to Buyer all the rights and interests granted under this Agreement, in each case with any material out-of-pocket expense to Seller to be reimbursed by Parent or Buyer. From and after the Closing,
Seller shall take or cause to be taken such other reasonable actions as Parent or Buyer may require (a) more effectively to transfer, convey and assign to, and vest in, Buyer, and put Buyer in possession of, the Purchased Assets as contemplated
hereby and (b) to carry out Seller’s obligations under this Agreement or any other agreements required to be entered into by Seller pursuant to this Agreement and give effect to the transactions contemplated hereby and such other agreements.
From and after the Closing, Parent and Buyer shall take or cause to be taken such other reasonable actions as Seller may require to carry out Parent’s and Buyer’s obligations under this Agreement or any other agreements required to be
entered into by Parent and Buyer pursuant to this Agreement and give effect to the transactions contemplated by this Agreement and such other agreements. 
  
 5.11 Consents; Cooperation. 
  
 (a) Each of Parent, Buyer and Seller shall, promptly after the Agreement Date, apply for or otherwise seek, and use its reasonable best
efforts to obtain, all governmental consents, waivers and approvals required to be obtained by it for the consummation of the Asset Purchase. 
  

 44 

 (b) Seller shall use commercially reasonable efforts to obtain prior to the Closing, and
deliver to Buyer at or prior to the Closing, all consents, waivers and approvals under each Assigned Agreement listed or described on Schedule 3.2(c) to the Seller Disclosure Letter; provided, however, that Seller shall not be required to
make any payment (other than (i) reimbursement of reasonable out-of-pocket expenses of any third party incurred in connection with the review of such consent, approval or waiver request and (ii) refund of any prepaid fees triggered by such
assignment or transfer pursuant to the terms of the Assigned Agreements, which Assigned Agreements are listed on Schedule 5.11(b)(1) to the Seller Disclosure Letter) or agree to any material undertakings in connection therewith. To the extent
that Seller is unable to obtain such required consents, waivers and approvals, then Seller shall use commercially reasonable efforts, without breaching such Assigned Agreement, to enforce, for the account of Buyer, any rights of Seller arising from
any such Assigned Agreement (including the right to elect to terminate such Assigned Agreement in accordance with the terms thereof upon the advice of Buyer). Buyer agrees to cooperate with Seller and supply relevant information to such party or
parties or such third party in order to assist Seller in its obligations under this 5.11(b). Any Contracts of Seller to be terminated prior to Closing are listed or described on Schedule 5.11(b)(2) of the Seller Disclosure Letter, and Seller
shall use its reasonable best efforts to terminate such Contracts prior to the Closing and deliver evidence of such termination to Buyer at or prior to the Closing. Any Contracts of Seller to be amended prior to Closing are listed or described on
Schedule 5.11(b)(3) of the Seller Disclosure Letter, and Seller shall use its reasonable best efforts to amend such Contracts prior to the Closing and deliver evidence of such amendment to Buyer at or prior to the Closing, in the manner
described on such exhibit with respect to each such Contract. 
  
 (c) (i) Any Assigned Agreements that provide for payment of maintenance or support fees by a Seller Customer to Seller are listed on Schedule 5.11(c) of the Seller Disclosure Letter, which schedule shall set
forth with respect to each such Assigned Agreement: (A) the name of the Seller Customer; (B) the date of such agreement; (C) whether such agreement is listed on Schedule 3.2(c) of the Seller Disclosure Letter (each such agreement, a
“Required Consent Maintenance Agreement”) and (D) the amount of unrecognized maintenance or support fees under such agreement. The total amount of maintenance or support fees that remain to be paid under all of the Assigned
Agreements listed on Schedule 5.11(c) of the Seller Disclosure Letter is herein referred to as the “Total Maintenance Fees,” while the total amount of maintenance or support fees that remain to be paid under all of the
Required Consent Maintenance Agreements is herein referred to as the “Total Required Consent Maintenance Fees.” Schedule 5.11(c) shall be updated by Seller at least one Business Day prior to Closing. 
  
 (ii) Seller shall use commercially reasonable efforts to
obtain prior to the Closing, and deliver to Buyer at or prior to the Closing, all consents, waivers and approvals under each Required Consent Maintenance Agreement to permit the assignment to Buyer or Parent of all such Required Consent Maintenance
Agreements (each Required Consent Maintenance Agreement for which Seller obtains the requisite consents, waivers and approvals subsequent to the Closing Date, a “Consented Maintenance Agreement”). In the event that Seller is
unable to secure such necessary consents, waivers and approvals as of the Closing Date, then with respect to each such unassigned Required Consent Maintenance Agreement, Seller will (A) subcontract to Parent the right to provide all maintenance and
support under such unassigned Required Consent Maintenance Agreement and (B) promptly remit to Parent all payments received by Seller from all such Seller Customers for maintenance or support fees. After the Closing Date, Seller will continue to use
commercially reasonable efforts to obtain all consents, waivers and approvals to permit the assignment to Buyer or Parent of each Required Consent Maintenance Agreement that remains unassigned to Parent or Buyer as of the Closing Date. 

 
 (iii) In the event that Seller is able to obtain prior to
December 31, 2003 the requisite consents, waivers and approvals under Required Consent Maintenance Agreements to permit the assignment to Buyer or Parent of such Required Consent Maintenance Agreements, then Seller shall be 

  

 45 

 
entitled to receive a collection fee from Parent calculated in accordance with the following formula: the product of (A) the product of (1) 0.05 and (2) the
Total Required Consent Maintenance Fees as of the Closing Date and (B) the quotient of (1) the portion of the Total Required Consent Maintenance Fees that is attributable to Required Consent Maintenance Agreements that become Consented Maintenance
Agreements on or prior to December 31, 2003 and (2) the Total Required Consent Maintenance Fees as of the Closing Date. By way of example, if (1) Total Required Consent Maintenance Fees as of the Closing Date equals $2.0 million and (2) the portion
of the Total Required Consent Maintenance Fees that is attributable to Required Consent Maintenance Agreements that become Consented Maintenance Agreements on or prior to December 31, 2003 equals $1.5 million, then Parent would pay to Seller a
collection fee of $75,000: 
  
 (0.05 * $2.0 million) * ($1.5
million ÷ $2.0 million) = $75,000 
  
 (iv)
In the event that Seller is unable to obtain the necessary consents, waivers and approvals to permit the assignment to Buyer or Parent of any Required Consent Maintenance Agreements, then Seller will not be permitted to renew the term of such
Required Consent Maintenance Agreements prior to the expiration of such agreement; provided, however that the foregoing shall not prevent a Seller Customer from exercising any renewal right existing under a Required Consent Maintenance
Agreement as of the Agreement Date, provided, further, that Seller shall discourage any Seller Customer from so exercising any such renewal right. 
  
 (d) (i) Any Assigned Agreements that provide for payment of professional services fees by a Seller Customer
to Seller are listed on Schedule 5.11(d) of the Seller Disclosure Letter, which schedule shall set forth with respect to each such Assigned Agreement: (A) the name of the Seller Customer; (B) the date of such agreement; (C) whether such
agreement is listed on Schedule 3.2(c) of the Seller Disclosure Letter (each such agreement, a “Required Consent Services Agreement”) and (D) the estimate of the professional services fees that remain to be paid for
work remaining to be performed under such agreement as set forth on the applicable statement of work. The total amount of professional services fees that remain to be paid under all of the Assigned Agreements listed on Schedule 5.11(d) of the
Seller Disclosure Letter is herein referred to as the “Total Services Fees,” while the total amount of professional services fees that remain to be paid under all of the Required Consent Services Agreements is herein referred
to as the “Total Required Consent Services Fees.” Schedule 5.11(d) shall be updated by Seller at least one Business Day prior to Closing. 
  
 (ii) Seller shall use commercially reasonable efforts to obtain prior to the Closing, and deliver to Buyer
at or prior to the Closing, all consents, waivers and approvals under each Required Consent Services Agreement to permit the assignment to Buyer or Parent of all such Required Consent Services Agreements (each Required Consent Services Agreement for
which Seller obtains the requisite consents, waivers and approvals subsequent to the Closing Date, a “Consented Services Agreement”). In the event that Seller is unable to secure such necessary consents, waivers and approvals
as of the Closing Date, then with respect to each such unassigned Required Consent Services Agreement, Seller will (A) subcontract to Parent the right to provide all professional services under such unassigned Required Consent Services Agreement and
(B) promptly remit to Parent all payments received by Seller from all such Seller Customers for professional services fees. After the Closing Date, Seller will continue to use commercially reasonable efforts to obtain all consents, waivers and
approvals to permit the assignment to Buyer or Parent of each Required Consent Services Agreement that remains unassigned to Parent or Buyer as of the Closing Date. 
  
 (iii) In the event that Seller is able to obtain prior to December 31, 2003 the requisite consents, waivers
and approvals under Required Consent Services Agreements to permit the assignment to Buyer or Parent of such Required Consent Services Agreements, then Seller shall be 

  

 46 

 
entitled to receive a collection fee from Parent calculated in accordance with the following formula: the product of (A) the product of (1) 0.05 and (2) the
Total Required Consent Services Fees as of the Closing Date and (B) the quotient of (1) the portion of the Total Required Consent Services Fees that is attributable to Required Consent Services Agreements that become Consented Services Agreements on
or prior to December 31, 2003 and (2) the Total Required Consent Services Fees as of the Closing Date. By way of example, if (1) Total Required Consent Services Fees as of the Closing Date equals $300,000 and (2) the portion of the Total Required
Consent Services Fees that is attributable to Required Consent Services Agreements that become Consented Services Agreements on or prior to December 31, 2003 equals $200,000, then Parent would pay to Seller a collection fee of $10,000: 

 
 (0.05 * $300,000) * ($200,000 ÷ $300,000) = $10,000 
  
 (iv) In the event that Seller is unable to obtain the
necessary consents, waivers and approvals to permit the assignment to Buyer or Parent of any Required Consent Services Agreements, then Seller will not be permitted to renew the term of such Required Consent Services Agreements prior to the
expiration of such agreement; provided, however that the foregoing shall not prevent a Seller Customer from exercising any renewal right existing under a Required Consent Services Agreement as of the Agreement Date, provided,
further, that Seller shall discourage any Seller Customer from so exercising any such renewal right. 
  
 (e) (i) In the event that Seller is able to obtain prior to December 31, 2003 (A) the requisite consents, waivers and approvals under
Required Consent Maintenance Agreements to permit the assignment to Buyer or Parent of Required Consent Maintenance Agreements representing 5% of Total Maintenance Fees and (B) the requisite consents, waivers and approvals under Required Consent
Services Agreements to permit the assignment to Buyer or Parent of Required Consent Services Agreements representing 5% of Total Services Fees, then in the event that the aggregate collection fee that would otherwise be payable by Parent to Seller
pursuant to Sections 5.11(c)(iii) and 5.11(d)(iii) is less then $25,000, then the aggregate collection fee to be paid to Seller pursuant to Sections 5.11(c)(iii) and 5.11(d)(iii) will equal $25,000. 
  
 (ii) Parent shall calculate the collection fee, if any, owed
to Seller pursuant to Sections 5.11(c)(iii), 5.11(d)(iii) and 5.11(e)(i) by January 31, 2004, and shall report any such amount in writing, together with the data supporting such calculation, to Seller. In the event of any dispute concerning the
amount of any collection fee owed to Seller, Seller shall notify Parent in writing (the “Dispute Notice”), setting forth in reasonable detail the basis of the dispute, within 15 days of receiving such calculation. Seller
shall have the right, at its expense, to have its independent public accountants audit the books and records of Parent to determine the collection fee, if any, owed to Seller, and Parent will allow Seller access at reasonable times during normal
business hours to such books and records and personnel of Parent as is necessary for purposes of conducting such audit. If Seller does not provide Parent with a Dispute Notice within such 15-day period, Seller shall be deemed to have accepted such
calculation as correct and final. In the event that any amount of the collection fee is disputed and Seller provides Parent with a Dispute Notice, then Parent and Seller shall confer in good faith for a period of up to 10 days following the delivery
of any Dispute Notice concerning the subject matter of the Dispute Notice in an attempt to resolve it. If, after such 10-day period, Parent and Seller cannot resolve such dispute, then Parent and Seller shall resolve all disputes over any collection
fee owed to Seller through binding arbitration in the same manner provided for resolution of Contested Claims under Section 7.5(d) of this Agreement. In the event of any such unresolved dispute, Parent will be under no obligation to make any payment
of a disputed portion of any collection fee until such dispute is resolved as provided herein. 
  

 47 

 (iii) Subject to the final sentence of Section 5.11(e)(ii), any collection fee owed to
Seller pursuant to Sections 5.11(c)(iii), 5.11(d)(iii) and 5.11(e)(i) of this Agreement shall be paid to Seller either (i) if Seller does not elect to audit Parent’s calculation of such collection fee, by January 31, 2004 or (ii) if Seller does
elect to audit Parent’s calculation of such collection fee, within 5 Business Days of the completion of such audit by Seller and any subsequent good faith conference between the parties regarding the calculation of such collection fee if the
parties are able to resolve the subject matter of the Dispute Notice. If any collection fee owed to Seller is determined by binding arbitration as contemplated by Section 5.11(e)(ii) above, then in the event that the Final Award determines that a
collection fee is owed to Seller, then such collection fee shall be paid to Seller not later than 5 Business Days following the date of such Final Award. 
  
 (f) To the extent that the Seller (1) is unable to obtain the requisite consents, approvals and waivers under any Required Consent
Maintenance Agreement or Required Consent Services Agreement such that it becomes a Consented Maintenance Agreement or Consented Services Agreement, as applicable, and (2) does not have the right to subcontract to Parent the right to provide all
maintenance and support or professional services under such unassigned Required Consent Maintenance Agreements or Required Consent Services Agreement, as applicable, and the related Seller Customer does not permit Seller to subcontract to Parent the
provision of such services, then Seller will perform any remaining services under such unassigned Required Consent Maintenance Agreement or Required Consent Services Agreement (at Seller’s request, Buyer shall make its employees available to
Seller (without cost or expense to Seller) to perform the required work under the applicable Required Consent Maintenance Agreement and Required Consent Services Agreement) and Seller will promptly remit to Parent any payments received by Seller
from all such Seller Customers for the provision of such services. 
  
 (g) Seller shall use its best efforts to obtain prior to the Closing, and deliver to Buyer at or prior to the Closing, the necessary consents, waivers and approvals to permit the assignment to Buyer or Parent of any
real property lease listed on Schedule 3.2(c) to the Seller Disclosure Letter. In connection with such best efforts by Seller, Parent agrees that it will agree to enter into a three-month extension of any such real property lease listed on
Schedule 3.2(c) to the Seller Disclosure Letter provided that such extension is on terms reasonably consistent with the terms of the existing lease. 
  
 (h) In the event that Seller is unable to obtain the consent of the party listed on Schedule 5.11(h) of the Seller Disclosure
Letter (the “Significant Customer”) to the assignment of the related Assigned Agreements with the Significant Customer (the “Significant Customer Agreements”) to Parent and Buyer prior to the Closing,
then Seller agrees that it will not work with the Significant Customer, nor with any employee or Affiliate of the Significant Customer, until such time as either (1) Seller obtains the consent of the Significant Customer to the assignment of the
Significant Customer Agreements to Parent and Buyer or (2) the Significant Customer Agreements are amended either (A) on terms that are identical in substance to the current terms of the Significant Customer Agreements except that the exclusive
industries/markets set forth in the Significant Customer Agreements relating primarily or exclusively to the Business will be allocated to Parent and the other exclusive industries/markets will be allocated to Seller or (B) in a manner that is
acceptable to Parent. 
  
 5.12 Lock-Up of Guaranteed
Shares. 
  
 (a) Seller agrees that, following
the Closing, it shall not (i) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase or otherwise
transfer or dispose of, directly or indirectly, including by operation of law or otherwise, any Guaranteed Shares or (ii) enter into any swap or other arrangement that transfers, in whole or in part, any of the economic consequences of ownership of
the Guaranteed Shares, whether any such transaction described in the foregoing clauses is to 

  

 48 

 
be settled by delivery of the Guaranteed Shares, in cash or otherwise. The restrictions on transferability of the Guaranteed Shares set forth in the
preceding sentence will lapse according to the following schedule: 
  

	Lock-Up Period	 	Transferability of Guaranteed Shares
		
	Period from the Closing Date until the three-month anniversary of the Closing Date	 	No Guaranteed Shares may be transferred
		
	Period from the three-month anniversary of the Closing Date until the six-month anniversary of the Closing Date	 	The restrictions on transferability will lapse with respect to an aggregate of one-third of the Guaranteed Shares (rounded up to the nearest whole number)
		
	Period from the six-month anniversary of the Closing Date until the nine-month anniversary of the Closing Date	 	The restrictions on transferability will lapse with respect to an aggregate of two-thirds of the Guaranteed Shares (rounded up to the nearest whole number)
		
	Beginning after the nine-month anniversary of the Closing Date	 	The restrictions on transferability will lapse with respect to all of the Guaranteed Shares

  
 In order to enforce
the foregoing covenant, Parent may place restrictive legends to such effect on the certificate(s) representing the Guaranteed Shares and shall have the right to impose stop transfer instructions with respect to the Guaranteed Shares. Notwithstanding
the foregoing, the restrictions on transferability set forth in this Section 5.12 will not apply to a distribution by Seller of the Guaranteed Shares to holders of Seller Common Stock to the extent such distribution is made pursuant to a
declaration, setting aside or payment of a dividend. The Earnout Shares and the Escrow Shares shall not be subject to this Section 5.12. 
  
 (b) Notwithstanding the provisions of Section 5.12(a) above, (A) in the event that the number of shares of Parent Common Stock issued to
Seller at the Closing is equal to or greater than 10% of the outstanding Parent Common Stock, such that the Seller shall become a reporting person for purposes of Section 16 under the Exchange Act, then the restrictions on transferability set forth
in Section 5.12(a) above will not preclude Seller from selling prior to December 31, 2003 the minimum number of shares of Parent Common Stock necessary such that as a result of the issuance to Seller of any Earnout Shares, Seller would not violate
Section 16(b) of the Exchange Act if it were to sell shares of Parent Common Stock immediately following any such issuance of the Earnout Shares (and in the event that such shares of Parent Common Stock have not been issued pursuant to the Permit,
Parent will assist Seller (but only to the extent Parent may provide such assistance without being deemed an underwriter, broker or dealer under the Securities Act) in selling such minimum number of shares of Parent Common Stock in a private
transaction prior to December 31, 2003); and (B) in the event that the disposition of shares of Parent Common Stock to Parent under Article VII hereof and the Escrow Agreement pursuant to an indemnification obligation would constitute a violation of
Section 16 under the Exchange Act, Seller shall have the right to satisfy such indemnification obligation in the form of cash rather than Parent Common Stock to the extent necessary to avoid any such violation. 
  

 49 

 5.13 Confidentiality. 
  
 (a) The parties acknowledge that Parent and Seller have previously executed that certain Mutual
Nondisclosure Agreement, dated as of February 27, 2003 (the “Confidentiality Agreement”), which Confidentiality Agreement will continue in full force and effect in accordance with its terms. Each party hereto agrees that all
confidential information of another party that is disclosed to such party in the course of negotiating the transactions contemplated by this Agreement or conducting due diligence in connection herewith will be held in confidence in accordance with
the terms of the Confidentiality Agreement. Notwithstanding the foregoing, each of the parties may disclose to any and all persons, without limitation of any kind, the U.S. federal Tax treatment and Tax structure of the transaction and all materials
of any kind (including opinions or other Tax analyses) that are provided to the parties relating to such Tax treatment and Tax structure. Seller will take all reasonable precautions to prevent any trading in the securities of Parent by officers,
directors, employees and agents of Seller, having knowledge of any material information regarding Parent provided hereunder, including, without limitation, the existence of the transactions contemplated by this Agreement until the information in
question has been publicly disclosed. Parent will take all reasonable precautions to prevent any trading in the securities of Seller by officers, directors, employees and agents of Parent, having knowledge of any material information regarding
Seller provided hereunder, including, without limitation, the existence of the transactions contemplated by this Agreement until the information in question has been publicly disclosed. 
  
 (b) All copies of financial information, marketing and sales information, pricing, marketing plans, business
plans, financial and business projections, customer lists, methodologies, inventions, software, know-how, product designs, product specifications and drawings, and other confidential and/or proprietary information of the Seller related to the
Business or any of the Purchased Assets, including but not limited to the Software, the Documentation and the Seller Technology Assets (collectively, “Seller Confidential Information”) will be held by Seller in strict
confidence and, at all times following the Closing, will not be used or disclosed by Seller to any third party. After the Closing, (i) Seller will continue to hold all Seller Confidential Information that is primarily or exclusively related to the
Business or Purchased Assets that Seller is permitted to retain pursuant to Section 5.15 as confidential, will treat such Seller Confidential Information in the same manner that Seller treats its other confidential information and will only use such
Seller Confidential Information to enforce its rights and fulfill its obligations under this Agreement, including, without limitation, in connection with the performance of any Assumed Liabilities and Excluded Liabilities and (ii) Buyer and Parent
will hold all Seller Confidential Information that does not relate primarily or exclusively to the Business or the Purchased Assets as confidential and will treat such Seller Confidential Information in the same manner that Parent and Buyer treat
their other confidential information. It is agreed that Seller Confidential Information will not include information that is now, or later becomes, part of the general public knowledge or literature in the art, other than as a result of a
breach of this Agreement by Seller, Parent or Buyer, or any other information that is used by Seller in any of its other businesses, without violation of Section 5.18. 
  
 5.14 Nasdaq Listing. To the extent required by the rules and regulations of The Nasdaq Stock Market, Parent shall
apply to list, and shall use all requisite commercially reasonable efforts to have authorized for listing, on The Nasdaq Stock Market the Shares issuable in connection with the Asset Purchase, subject to official notice of issuance. 
  
 5.15 Post-Closing Retention. Immediately after the Closing, in
addition to copies of the Purchased Agreements delivered to Buyer as part of the transactions contemplated by this Agreement, Seller shall deliver to Buyer or destroy copies of any Purchased Assets in Seller’s possession or control that are
primarily or exclusively related to the Business, whether such copies are in paper form, on 

  

 50 

 
computer media or stored in another form; provided, however, that Seller may retain copies of the Assigned Agreements. Except as otherwise provided in
Section 2.2(f) and to the extent lawfully transferrable, all Governmental Permits may be retained by Seller. 
  
 5.16 Information Provided. Each of Seller, Parent and Buyer shall provide promptly to the other such information concerning its business and
financial statements and affairs as, in the reasonable judgment of the providing party or its counsel, may be required or appropriate for inclusion in the Permit Application, the Hearing Notice, the Information Statement or the Seller Proxy
Statement, or in any amendments or supplements thereto, and to cause its counsel and auditors to cooperate with the other’s counsel and auditors in the preparation of the Permit Application, the Hearing Notice, the Information Statement and the
Seller Proxy Statement. Subject to Section 5.5(c), the Information Statement and the Seller Proxy Statement shall include the unqualified recommendation of the Board of Directors of Seller in favor of adoption of this Agreement and approval of the
Asset Purchase and the conclusion of the Board of Directors of Seller that the terms and conditions of this Agreement and the Asset are fair, just, reasonable, equitable, advisable and in the best interests of Seller and its stockholders. Anything
to the contrary contained herein notwithstanding, Seller shall not include in the Information Statement or Seller Proxy Statement any information with respect to Parent, Buyer or their Affiliates or associates, without the prior approval of Parent
of the form and content of such information; provided, however, that Parent shall not withhold approval of any information required to be included by Applicable Legal Requirements, including any applicable federal and state securities
laws, the SEC or the California Commissioner. Each of Seller, Parent and Buyer shall use its reasonable best efforts to cause the information relating to Seller, Parent and Buyer, respectively, included in (i) the Permit Application, the Hearing
Notice, and the Information Statement, at the time each is filed with the California Commissioner, and, in the case of the Hearing Notice and Information Statement, at the time each is mailed to the holders of Seller Common Stock, and (ii) the
Seller Proxy Statement, at the time it is filed with the SEC, at the time it is mailed to the holders of Seller Common Stock and at the time of the Seller Stockholder Meeting, and in all cases at all times subsequent thereto (through and including
the Closing), not to contain any untrue statement of a material fact nor omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. Seller shall promptly advise Parent, and Parent and Buyer shall promptly advise Seller, in writing if at any time prior to the Closing either Seller, Parent or Buyer shall obtain knowledge of any facts that might make it necessary or
appropriate to amend or supplement the Permit Application, Hearing Notice, the Information Statement and/or the Seller Proxy Statement, in order to make the statements contained or incorporated by reference therein not misleading or to comply with
Applicable Legal Requirements. Each of Seller, Parent and Buyer shall cooperate in (i) filing any such amendment or supplement with the California Commissioner and/or the SEC and/or any other government officials and (ii) delivering any amendment or
supplement to holders of Seller Common Stock. 
  
 5.17 No
Solicitation of Vote by Seller. Except for the delivery of the Information Statement and Seller Proxy Statement in accordance with the terms hereof, Seller shall not, and shall cause each of its Subsidiaries not to, directly or indirectly,
solicit the vote of any holder of Seller Common Stock in connection with the Asset Purchase in violation of any Applicable Legal Requirements, including all applicable federal and state securities laws. 
  
 5.18 Non-Compete. As a material inducement and consideration for
Parent and Buyer to enter into this Agreement, for a period from the Closing Date until the third anniversary of the Closing Date (the “Restricted Period”), Seller shall not without the prior written consent of Parent and
Buyer, directly or indirectly, sell or otherwise distribute any products or services in the Life Sciences Market, nor shall it cause or permit any third party to do so. Notwithstanding the foregoing, Seller shall not be prohibited from acquiring or
owning less than 5% (by voting power) of the outstanding capital stock of any publicly 

  

 51 

 
traded company in the Life Sciences Market. In the event of a breach of any of the covenants set forth in this Section 5.18, Seller agrees that the damage to
Parent and Buyer would be irreparable and that Parent and Buyer shall be entitled to seek an injunction against the Seller restraining such breach in addition to any other remedies provided by law or equity. In the event that any covenant in this
Section 5.18 is held to be invalid, illegal or unenforceable by any court of competent jurisdiction or any other governmental authority, the parties agree and understand that such covenant shall not be voided but rather shall be construed to impose
limitations upon Seller’s activities no greater than allowable under then Applicable Legal Requirements. 
  
 5.19 Blue Sky Laws. Parent shall take such steps as may be necessary to comply with the securities and Blue Sky laws of all jurisdictions which are
applicable to the issuance of the Shares. Seller shall use its reasonable best efforts to assist Parent as may be necessary to comply with the securities and Blue Sky laws of all jurisdictions which are applicable in connection with the issuance of
the Shares. 
  
 5.20 Furnishing of Outstanding Business
Proposals. Prior to or concurrently with the Closing, Seller will furnish Parent and Buyer with copies of all business proposals (including names and status of discussions with prospective customers and strategic partners) that are pending or
outstanding with respect to the Business. 
  
 5.21 Purchase
Price Allocation. Each party agrees that within 60 days of the Closing, the parties shall mutually agree upon the allocation of the Purchase Price to the Purchased Assets. Each party covenants that it shall not to take any position that varies
from or is inconsistent with such allocation in any Tax Return or other filing made by such party with the IRS or with any other Governmental Authority. Nothing contained herein shall impose on either party the duty or obligation to contest any
action which the IRS or any other Governmental Authority may take or any adjustment or change in such allocation which the IRS or any other Governmental Authority may make or propose. 
  
 5.22 Transfer of Additional Seller Technology. If, within one (1) year after the Closing, Buyer or Parent identifies
in writing to Seller any Seller Technology owned by Seller (other than any Retained Seller Technology Asset) that is not included in the Purchased Assets or licensed to Buyer and Parent under the Software Distribution and License Agreements and that
is required to render the representation of Seller set forth in the first sentence of Section 3.8(b) true as of the Closing Date, Seller shall promptly (a) if such Seller Technology was primarily or exclusively used in the Business as of the Closing
Date, convey such Seller Technology to Buyer as if such Seller Technology were a Purchased Asset under this Agreement or (b) if such Seller Technology was not primarily or exclusively used in the Business as of the Closing Date, grant Buyer and
Parent a license to such Seller Technology on terms and conditions consistent with the terms and conditions of the Software Distribution and License Agreements. Buyer and Parent shall not make any claim for any breach of Seller’s representation
contained in the first sentence of Section 3.8(b) unless Seller shall breach its obligations under this Section 5.22. 
  
 5.23 Collection of Accounts Receivable. Seller agrees that it shall forward promptly to Buyer any monies, checks or instruments received by Seller
after the Closing with respect to the accounts receivable purchased by Buyer from Seller pursuant to this Agreement. Buyer and Parent agree that they will forward promptly to Seller any monies, checks or instruments received by Buyer or Parent after
the Closing with respect to the accounts receivable retained by Seller pursuant to this Agreement.  
  
 5.24 Performance of Contractual Obligations. Seller agrees that, with respect to each Contract listed on Schedule 5.24 of the Seller
Disclosure Letter for which Seller will have continuing product delivery obligations subsequent to the Closing Date, it will perform each of the obligations it is required to perform under such Contract if the failure to so perform such obligations
could result in a refund of part or all of the fees paid to Seller under such Contract. 
  

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 5.25 Cooperation with Respect to Unallocated Assets. Parent, Buyer and Seller agree that with
respect to the assets listed on Schedule 5.25 of the Seller Disclosure Letter (the “Unallocated Assets”), the parties will cooperate in good faith subsequent to the Agreement Date to allocate the Unallocated Assets
amongst the parties in an equitable manner, and Seller shall update Schedule 5.25 at least two Business Days prior to the Closing Date to reflect such allocation. Seller will permit Parent unrestricted access (to the extent that such access
does not unreasonably interfere with Seller’s business operations) to Seller’s offices at 511 Congress Street in Portland, Maine from the Closing Date until the expiration date of the related real property lease to enable Parent to have
access to the Unallocated Assets that become Purchased Assets. 
  
 ARTICLE 6 
 TAX MATTERS 
  
 6.1 Taxes Relating to Sale of Purchased Assets. Any transfer, documentary, sales, use, registration, value-added and other similar Taxes directly
applicable to the conveyance and transfer from Seller to Buyer of the Purchased Assets shall be paid equally by Seller and Buyer (collectively “Transaction Taxes”). To the extent required by law, Seller shall be responsible
for preparing and filing any Tax Return relating to such Transaction Taxes imposed on Seller and shall promptly provide a copy of such Tax Return to Buyer. To the extent required by law, Buyer shall be responsible for preparing and filing any Tax
Return relating to such Transaction Taxes imposed on Buyer and shall promptly provide a copy of such Tax Return to Seller. Seller and Buyer each agree to pay and indemnify the other for any Transaction Taxes paid by Seller or Buyer that exceeds 50%
of the aggregate amount of Transaction Taxes imposed collectively on Seller and Buyer. The parties shall cooperate with each other to the extent reasonably requested and legally permitted to minimize any such Taxes. 
  
 6.2 Property Taxes. Any property Taxes applicable to the Purchased
Assets for a taxable period that includes but does not end on the Closing Date shall be paid by Buyer or Seller, as required by law, and such Taxes shall be apportioned between Buyer and Seller based on the number of days in the portion of the
taxable period that ends on the Closing Date (the “Seller Tax Period”) and the number of days in the entire taxable period. Seller shall pay Buyer an amount equal to any such Taxes payable by Buyer which are attributable to
the Seller Tax Period, and Buyer shall pay Seller an amount equal to any such Taxes payable by Seller which are not attributable to the Seller Tax Period. Such payments shall be made on or prior to the Closing Date (or thereafter, promptly after
request by Buyer or Seller if such Taxes are not identified by Buyer or Seller on or prior to the Closing Date). 
  
 6.3 Other Taxes. Seller will be responsible for and will pay any and all Taxes with respect to the Purchased Assets relating to all periods (or
portions thereof) ending on or before the Closing Date, and Buyer will be responsible for and will pay any and all Taxes with respect to the Purchased Assets relating to all periods (or portions thereof) beginning after the Closing Date. On the
Closing Date, neither Seller, Parent nor Buyer shall take any action outside the ordinary course of business with respect to the Purchased Assets. 
  
 6.4 Treatment of Indemnity Payments. All payments made by Seller to or for the benefit of Buyer pursuant to any indemnification obligations under
this Agreement, will be treated as adjustments to the Purchase Price for Tax purposes and such agreed treatment will govern for purposes of this Agreement, unless otherwise required by law. 
  
 6.5 Cooperation. To the extent relevant to the Purchased Assets, each
party shall (i) provide the other such assistance as may be reasonably requested in connection with the preparation of any Tax Return or the conduct of any audit or examination or other proceeding and (ii) for a period of six years following the
Closing retain and provide the other with information that may be relevant to the 

  

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preparation of a Tax Return, or the conduct of an audit, examination or other proceeding relating to Taxes. 
  
 ARTICLE 7 
 INDEMNIFICATION 
  
 7.1 Survival of Representations and Warranties and Indemnification Obligations and Indemnification Obligations. All representations and warranties of Seller, Parent and Buyer contained in this Agreement and the
indemnification obligations of Seller, Parent and Buyer pursuant to this Article 7 will remain operative and in full force and effect, regardless of any investigation made by or on behalf of any of the parties to this Agreement, until the earlier of
(i) the termination of this Agreement in accordance with its terms and (ii) the expiration of the Escrow Period; provided, however, that any Indemnified Person shall be entitled to seek recovery (i) until the expiration of the
applicable statute of limitations for any claim which seeks recovery of Damages for fraud by Seller, Parent or Buyer, as the case may be and (ii) until the second anniversary of the Closing Date for any claim which seeks recovery of Damages for
willful misrepresentation or willful misconduct by Seller, Parent or Buyer, as the case may be. Each of the covenants set forth in Article 5, “Other Covenants and Agreements” and Article 6, “Tax Matters” shall survive the
Closing, and all other covenants of the parties shall survive according to their respective terms. 
  
 7.2 Indemnification Obligations of Seller. Subject to the provisions and limitations set forth in Section 7.4, Seller (the “Seller
Indemnifying Person”), will defend, indemnify and hold harmless Parent, Buyer and their respective Affiliates, officers, directors, agents, representatives, stockholders and employees (collectively, the “Parent Indemnified
Persons” and each individually, a “Parent Indemnified Person”) from and against Damages directly or indirectly incurred, resulting from or arising out of: 
  
 (a) any inaccuracy, misrepresentation, or default in, or
breach of, any of the representations or warranties given or made by Seller in this Agreement, any of the Seller Ancillary Agreements or the Seller Disclosure Letter (including all Schedules thereto); 
  
 (b) any breach of any of the covenants of Seller in this
Agreement or the Seller Ancillary Agreements; 
  
 (c) any of the Excluded Assets or any of the Excluded Liabilities; 
  
 (d) the operation of the Business by Seller at any time or times on or before the Closing Date; 
  
 (e) any Liability arising from any noncompliance with any bulk sales, bulk transfer or similar laws applicable to the transactions
contemplated hereby or any claims asserting that any transaction contemplated hereby constitutes a fraudulent conveyance, a preferential transfer or any claim of a similar nature; 
  
 (f) any Taxes, assessments and other governmental charges of any kind or nature whatsoever, including any
withholding, social security or unemployment levies, arising out of the Business through the Closing or payable with respect to Seller or by Seller for the transactions contemplated hereby; and 
  
 (g) any demand, claim, debt, suit, cause of action,
arbitration or other proceeding that is made or asserted against Seller (including a warranty claim, a product liability claim or any other 

  

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claim), including any such action that is made or asserted against Seller by any stockholder of Seller, whether arising before or after the Closing, unless
such demand, claim, debt, suit, cause of action, arbitration or other proceeding arises from any Assumed Liability or action taken by Parent or Buyer with respect to the Purchased Assets or the Business after the Closing. 
  
 7.3 Indemnification Obligations of Parent. Subject to the provisions
and limitations set forth in Section 7.4, Parent (the “Parent Indemnifying Person”) will defend, indemnify and hold harmless Seller and its Affiliates, officers, directors, agents, representatives, stockholders and employees
(collectively, the “Seller Indemnified Persons” and each individually, a “Seller Indemnified Person”) from and against any Damages directly or indirectly incurred, resulting from or arising out of:

  
 (a) any inaccuracy, misrepresentation, or
default in, or breach of, any of the representations or warranties given or made by Parent or Buyer in this Agreement, any of the Buyer Ancillary Agreements or the Parent Disclosure Letter (including all Schedules thereto); 
  
 (b) any breach of the covenants of Parent or Buyer in this
Agreement or the Buyer Ancillary Agreements; 
  
 (c) any of the Assumed Liabilities; 
  
 (d) the operation of the Business by Buyer or Parent at any time after the Closing Date, but only to the extent that such Damages do not relate to or involve any breach by Seller of any of the representations or warranties contained in
Article 3, “Representations and Warranties of Seller”; 
  
 (e) any Taxes, assessments and other governmental charges of any kind or nature whatsoever, including any withholding, social security or unemployment levies, arising out of the Business after the Closing or payable
with respect to Parent or Buyer or the transactions contemplated hereby; and 
  
 (f) any demand, claim, debt, suit, cause of action, arbitration or other proceeding (including a warranty claim, a product liability claim or any other claim) that is made or asserted by any third party that relates
to the Purchased Assets and that arises from any act or omission of Parent or Buyer. 
  
 7.4 Limitations on Indemnification Obligations.  
  
 (a) From and after the Closing, the sole and exclusive remedy of the Parent Indemnified Persons against the Seller Indemnifying Persons
for any Damages directly or indirectly incurred, resulting from or arising out of this Agreement, any of the Buyer Ancillary Agreements or any of the Seller Ancillary Agreements is set forth in this Article 7 and the Escrow Agreement. The Liability
of the Seller Indemnifying Persons under Section 7.2(a) of this Agreement shall be limited to recourse to (i) first the Escrow Shares (which shall constitute a partial security for such indemnification obligations) and (ii) if the Escrow Shares are
insufficient to satisfy the indemnification obligations of the Seller Indemnifying Persons, then an amount of cash up to an additional $1,000,000 (collectively, the “Indemnification Cap”). 
  
 (b) From and after the Closing, the sole and exclusive
remedy of the Seller Indemnified Persons against the Parent Indemnifying Person for any Damages directly or indirectly incurred, resulting from or arising out of this Agreement, any of the Buyer Ancillary Agreements or any of the Seller Ancillary
Agreements is set forth in this Article 7. The Liability of the Parent Indemnifying Person under Section 7.3(a) of this Agreement shall be limited to recourse to, at Parent’s option, (i) 

  

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Parent’s issuance of shares of Parent Common Stock having a maximum aggregate value equal to the total value of the Indemnification Cap or (ii) cash in
an aggregate amount equal to the total value of the Indemnification Cap. Any shares issued by Parent pursuant to this Article 7 shall be “Indemnification Shares.” The value of the Indemnification Shares will be
determined by utilizing the applicable Parent Average Stock Price. 
  
 (c) Neither Parent Indemnified Persons nor Seller Indemnified Persons, respectively, shall have any right to indemnification under Section 7.2(a) or Section 7.3(a), respectively until such claims, in the aggregate,
equal or exceed $100,000 of Damages, in which case, indemnification shall be available for all claims in excess of $100,000. 
  
 (d) Notwithstanding anything contained herein to the contrary, the foregoing limitations on indemnification under this Article 7 shall not
apply to any indemnification claim by any Parent Indemnified Person that arises from or as a result of (i) any fraudulent conduct or fraudulent misrepresentation on the part of Seller or its personnel, (ii) any breach by Seller of its
representations or warranties contained in Section 3.11 of this Agreement relating to any infringement by Seller of any Intellectual Property Right of any other Person, (iii) any refund or similar payment of the purchase price relating to any
products sold by Seller prior to Closing or (iv) any breach by Seller of its representations or warranties contained in Section 3.2(c) of this Agreement. In the event that any Parent Indemnified Person makes any indemnification claim that arises
from or as a result of any infringement by Seller of any Intellectual Property Right of any other Person covered by clause (ii) of the preceding sentence, then under such circumstances, and solely for the purposes of any such claims, the
Indemnification Cap will be equal to $10.0 million; provided, however, that a Parent Indemnified Person shall only be entitled to seek recovery for any such infringement by Seller of any Intellectual Property Right of any other Person
until the second anniversary of the Closing Date. In the event that any Parent Indemnified Person makes any indemnification claim that arises from or as a result of any refund or similar payment covered by clause (iii) of the first sentence of this
Section 7.4(d), then Seller will promptly reimburse Parent in cash in the amount of any such refund or similar payment made by Parent to a third party, without regard to the provisions of Section 7.4(c). In the event that any Parent Indemnified
Person makes any indemnification claim that arises from or as a result of any refund or similar payment covered by clause (iii) of the first sentence of this Section 7.4(d) or that arises from or as a result of any breach by Seller of its
representations or warranties contained in Section 3.2(c) of this Agreement, then under such circumstances, and solely for the purposes of any such claims, the Indemnification Cap will be equal to $5.0 million; provided, further, that
with respect to any such indemnification claim made by any Parent Indemnified Person, such Parent Indemnified Person will be entitled to recover for Damages first from the $3.0 million cash portion of the Indemnification Cap, and second, to the
extent that such Damages exceed $3.0 million, from the Escrow Shares. 
  
 (e) In no event shall any Indemnified Person (as hereinafter defined) be responsible or liable for any Damages or other amounts under this Article 7 that are (a) consequential damages for lost profits or diminution in
the value of property, (b) special or punitive damages or (c) otherwise not actual damages, except (i) with respect to a breach by Seller of the covenants set forth in Section 5.24 or (ii) in the event a court, arbitrator or Governmental Agency
requires such Indemnified Party to pay special or punitive damages to a third party. Each Indemnified Person shall (and shall cause its Affiliates to) use reasonable commercial efforts to pursue such material legal rights and remedies available
which such Indemnified Person believes in its good faith to be reasonable under the circumstances in order to mitigate the Damages for which indemnification is provided to it under this Article 7; provided, however, that a breach by an
Indemnified Person of its obligations under this sentence shall not relieve any Indemnifying Person from any of their respective obligations under this Article 7. 
  

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 (f) The amount of Damages recoverable by any Indemnified Person under this Article 7 with
respect to an indemnity claim shall be reduced by (i) the amount of any payment received by such Indemnified Person (or an Affiliate thereof), with respect to the Damages to which such indemnity claim relates, from an insurance carrier, and (ii) the
amount of any Tax benefit actually realized by such Indemnified Person (or an Affiliate thereof) which is attributable to the Damages to which such indemnity claim relates. Each Indemnified Person shall use reasonable commercial efforts to pursue,
and to cause its Affiliates to pursue, all insurance claims and Tax benefits to which it may be entitled in connection with any Damages it incurs, and the parties shall cooperate with each other in pursuing insurance claims with respect to any
Damages or any indemnification obligations with respect to Damages. If an Indemnified Person (or an Affiliate) receives any insurance payment in connection with any claim for Damages for which it has already received an indemnification payment from
the Indemnifying Person (as hereinafter defined), it shall pay to the Indemnifying Person, within 30 days of receiving such insurance payment, an amount equal to the excess of (A) the amount previously received by the Indemnified Person under this
Article 7 with respect to such claim plus the amount of the insurance payments received, over (B) the amount of Damages with respect to such claim which the Indemnified Person has become entitled to receive under this Article 7. 
  
 7.5 Indemnification Procedures. 
  
 (a) Notice of Claim. As used herein,
“Claim” means a claim for indemnification of any Parent Indemnified Person or Seller Indemnified Person, as applicable (each, an “Indemnified Person”) for Damages under this Article 7. Parent or
Seller, as applicable, shall give a written notice of a Claim executed by an officer of Parent or Seller, as applicable (a “Notice of Claim”), whether for its own Damages or for Damages incurred by any other Indemnified
Person. Parent or Seller, as applicable, may deliver a Notice of Claim based on, arising from, relating to or caused by: (i) the items specified in Section 7.2 or Section 7.3, as applicable; or (ii) the assertion, whether orally or in writing,
against any Indemnified Person of a claim, demand, suit, action, cause of action, dispute, arbitration, investigation, inquiry or proceeding brought by a third party against such Indemnified Person that is based on, arises out of or relates to any
item specified in Section 7.2 or Section 7.3, as applicable (in each such case, a “Third-Party Claim”). No delay on the part of Parent or Seller, as applicable, in giving Seller or Parent, respectively, a Notice of Claim
shall relieve any Indemnifying Person from any of their respective obligations under this Article 7 unless (and then only to the extent) that the Indemnifying Person is materially prejudiced thereby. Each Notice of Claim shall be delivered no later
than the expiration of the Escrow Period, and if delivered by such date, such Claim shall survive the expiration of the Escrow Period until final resolution thereof. 
  
 (b) Contents of Notice of Claim. Each Notice of Claim by Parent or Seller, as applicable, given
pursuant to Section 7.5(a) shall contain the following information: 
  
 (i) that the Indemnified Person has incurred, paid or accrued (in accordance with GAAP) or, in good faith, believes it shall have to incur, pay or accrue (in accordance with GAAP), Damages in an aggregate stated
amount arising from such Claim (which amount may be the amount of damages claimed by a third party in a Third-Party Claim); and 
  
 (ii) a brief description, in reasonable detail (to the extent reasonably available to the Indemnified Person), of the facts, circumstances
or events giving rise to the alleged Damages based on the Indemnified Person’s good faith belief thereof, including the identity and address of any third-party claimant (to the extent reasonably available to the Indemnified Person) and copies
of any formal demand or complaint, the amount of Damages, the date each such item was incurred, paid or 

  

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accrued, or the basis for such anticipated Liability, and the specific nature of the breach to which such item is related. 
  
 (c) Defense of Third-Party Claims. 
  
 (i) The Parent Indemnifying Person or the Seller
Indemnifying Person (each, an “Indemnifying Person”), as applicable, shall be entitled, at its expense, to participate in the defense of any Third-Party Claim and to receive copies of all pleadings, notices and communications
with respect to any Third-Party Claim (to the extent that such participation and receipt of documents by the Indemnifying Person does not affect any privilege relating to the Indemnified Person) and, at its option (subject to the limitations set
forth in this Section 7.5(c)), shall be entitled to assume control of such defense. 
  
 (ii) Notwithstanding the foregoing, the Indemnifying Person shall not have the right to assume control (or the Indemnified Person shall
have the right to take back control, as the case may be) of such defense and shall pay the fees and expenses of counsel retained by the Indemnified Person if the Third-Party Claim which the Indemnifying Person seeks to assume control (A) seeks only
non-monetary relief or (B) involves criminal or quasi-criminal allegations. 
  
 (iii) If, pursuant to the terms of this Section 7.5(c), the Indemnifying Person is permitted to assume control of the defense of a Third-Party Claim and elects to do so, the Indemnified Person shall be entitled to
receive copies of all pleadings, notices and communications with respect thereto (to the extent that such participation and receipt of documents by the Indemnified Person does not affect any privilege relating to the Indemnifying Person) and shall
have the right to employ counsel separate from counsel employed by the Indemnifying Person in any such action and to participate in the defense thereof, but the fees and expenses of counsel employed by the Indemnified Person shall be at the expense
of the Indemnified Person unless (A) the employment and payment of the Indemnified Person’s counsel has been specifically authorized by the Indemnifying Person in writing or (B) the Indemnified Person has been advised in writing by its counsel
that a reasonable likelihood exists of a conflict of interest between the Indemnified Person and the Indemnifying Person. If the Indemnifying Person controls the defense of a Third-Party Claim in accordance with Section 7.5(c)(i) and Section
7.5(c)(ii), then the Indemnifying Person shall not enter into any settlement of such Third-Party Claim or cease to defend such Third-Party Claim without obtaining the prior written consent of the Indemnified Person if, pursuant to or as a result of
such settlement or cessation, (A) any injunction or other equitable relief shall be imposed against the Indemnified Person or (B) the Indemnified Person shall not be expressly and unconditionally released, with prejudice, from any and all
Liabilities with respect to such Third-Party Claim and all other claims arising out of the same or similar facts and circumstances. 
  
 (iv) If, pursuant to this Section 7.5(c), the Indemnifying Person is not permitted to assume control of the defense of a Third-Party Claim
or does not elect to do so, then the Indemnified Person shall control such defense and the costs and expenses incurred by the Indemnified Person in connection with such defense (including reasonable attorney’s fees, other professionals’
and experts’ fees and court or arbitration costs) shall be included in the Damages for which the Indemnified Person may seek indemnification pursuant to a Claim made by such Indemnified Person hereunder. No Indemnified Person shall enter into
any settlement of a Third-Party Claim without the prior written consent of the Indemnifying Person (which consent shall not be unreasonably withheld or delayed); provided, however, that if the Indemnifying Person shall have consented
in writing to any such settlement (or a portion thereof if such settlement also relates to a matter or matters for which indemnification is not provided hereunder) then the Indemnifying Person shall have no power or authority to object to any Claim
by any Indemnified Person for indemnification under Section 7.2 or Section 7.3 for the amount of such settlement and the Indemnifying Person shall remain responsible for indemnifying the Indemnified 

  

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Persons for all Damages incurred, resulting from, arising out of or caused by the Third-Party Claim to the fullest extent provided in this Article 7.

  
 (d) Resolution of Notice of Claim. Any
Notice of Claim delivered by Parent or the Seller, as applicable, shall be resolved as follows: 
  
 (i) Uncontested Claims. If, within 20 days after a Notice of Claim is received, Parent or Seller, as applicable, does not contest
such Notice of Claim in writing to Seller or Parent, respectively, then Parent or Seller, as applicable, shall be conclusively deemed to have consented, on behalf of the Parent Indemnifying Person or the Seller Indemnifying Person, as applicable, to
the recovery by the Seller Indemnified Person or the Parent Indemnified Person, as applicable, of the full amount of the Claim specified in the Notice of Claim, including, in the case of a Claim made by a Parent Indemnified Person, the forfeiture of
the Escrow Shares (as provided in Section 7.3) and, without further notice, to have stipulated to the entry of a final judgment for damages against the Parent Indemnifying Person or the Seller Indemnifying Person, as applicable, for such amount in
any court having jurisdiction over the matter where venue is proper. 
  
 (ii) Contested Claims. If, within 20 days after a Notice of Claim is received, Parent or Seller, as applicable, contests such Notice of Claim in writing to Seller or Parent, respectively (a
“Contested Claim”), then such Contested Claim shall be resolved by either (A) a written settlement agreement executed by Parent and Seller or (B) in the absence of such a written settlement agreement, by binding arbitration
between Parent and Seller in accordance with the terms and provisions of Section 10.1. 
  
 7.6 Survival of Claims. Notwithstanding anything contained herein to the contrary, if, before the applicable survival date specified in Section 7.1 or the expiration of the applicable statute of limitations
with respect to fraud, willful misrepresentation or willful misconduct as provided in Section 7.1, as applicable, an Indemnified Person sustains Damages and issues a Notice of Claim with respect to an inaccuracy, misrepresentation or default in, or
breach of, any representation or warranty or other claim hereunder, then the Indemnified Person’s rights hereunder shall survive any expiration of such representation or warranty or indemnification obligation with respect to the matter claimed.

  
 ARTICLE 8 
 CONDITIONS TO CLOSING 
  
 8.1 Conditions to Obligations of Seller. Seller’s obligations to consummate the sale, transfer and delivery of the Purchased Assets to Buyer
and the other transactions contemplated hereby are subject to the fulfillment or satisfaction, on and as of the Closing, of each of the following conditions (any one or more of which may be waived by Seller in writing): 
  
 (a) Accuracy of Representations and Warranties. The
representations and warranties of Parent and Buyer set forth in Article 4, “Representations and Warranties of Parent and Buyer,” (i) that are qualified as to materiality or Material Adverse Effect will be true and correct and (ii) that are
not qualified as to materiality or Material Adverse Effect shall be true and correct in all material respects, in each case on and as of the Closing with the same force and effect as if they had been made on the Closing Date (except for any such
representations or warranties that, by their terms, speak only as of a specific date or dates, in which case such representations and warranties (i) that are qualified as to materiality or Material Adverse Effect shall be true and correct and (ii)
that are not qualified as to materiality or Material Adverse Effect shall be true and correct in all material respects, on and as of such specified date or dates), and at the Closing Seller will have received a certificate to such effect executed by
a duly authorized officer of Parent; provided, however, that if any representation or warranty is true and correct 

  

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as provided in the foregoing clause on the date of this Agreement, but such representation or warranty ceases to be so true and correct thereafter and (A)
Parent or Buyer notifies Seller in reasonable detail of the facts and circumstances as a result of which such representation or warranty ceases to be true and correct in all material respects and (B) the ceasing of such representation or warranty to
be so true and correct does not have or represent a Material Adverse Effect with respect Parent or Buyer, then for purposes of this Section 8.1(a) only (and not for purposes of any other Section or Article hereunder, including Article 7,
“Indemnification”), such representation or warranty shall be deemed to be so true and correct as of the Closing Date. 
  
 (b) Covenants. Each of Parent and Buyer will have performed and complied in all material respects with all of its covenants
contained in Article 5, “Covenants and Other Agreements” on or before the Closing (to the extent that such covenants require performance by Parent or Buyer on or before the Closing), and at the Closing Seller will have received a
certificate to such effect signed by a duly authorized officer of Parent. 
  
 (c) No Material Adverse Change. Since the date of this Agreement, there shall have been no Material Adverse Change in Parent, and at the Closing, Seller shall have received a certificate to such effect executed
by a duly authorized officer of Parent. 
  
 (d)
Compliance with Law; No Legal Restraints; No Litigation. There will not be issued, enacted or adopted, or threatened in writing by any Governmental Authority, any order, decree, temporary, preliminary or permanent injunction, legislative
enactment, statute, regulation, action or proceeding, or any judgment or ruling by any Governmental Authority that prohibits or renders illegal or imposes limitations on the material transactions contemplated by this Agreement, any Buyer Ancillary
Agreement or any Seller Ancillary Agreement. No litigation or proceeding will be pending for the purpose or with the probable effect of enjoining or preventing the consummation the material transactions contemplated hereby. 
  
 (e) Seller Stockholder Approval. Each of this
Agreement, the Seller Ancillary Agreements, and the Asset Purchase, shall have been approved and adopted by the Requisite Stockholder Approval. 
  
 (f) Securities Exemptions. In the event that the Shares become issuable pursuant to Section 5.3(c) of this Agreement, then such
issuance of the Shares by Parent to Seller pursuant to this Agreement shall be exempt from the registration requirements of the Securities Act and shall be made in compliance with Applicable Legal Requirements. 
  
 (g) Other Deliveries. Buyer will have made the other
deliveries required by Section 2.10. 
  
 8.2 Conditions to
Obligations of Parent and Buyer. Parent’s and Buyer’s obligations to consummate the purchase of the Purchased Assets from Seller and the other transactions contemplated hereby are subject to the fulfillment or satisfaction, on and as
of the Closing, of each of the following conditions (any one or more of which may be waived by Parent or Buyer, as applicable, in writing): 
  
 (a) Accuracy of Representations and Warranties. The representations and warranties of Seller set forth in Article 3,
“Representations and Warranties of Seller,” (i) that are qualified as to materiality or Material Adverse Effect will be true and correct and (ii) that are not qualified as to materiality or Material Adverse Effect shall be true and correct
in all material respects, in each case on and as of the Closing with the same force and effect as if they had been made on the Closing Date (except for any such representations or warranties that, by their terms, speak only as of a specific date or
dates, in 

  

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which case such representations and warranties (i) that are qualified as to materiality or Material Adverse Effect shall be true and correct and (ii) that
are not qualified as to materiality or Material Adverse Effect shall be true and correct in all material respects, on and as of such specified date or dates), and at the Closing Buyer will have received a certificate to such effect executed by an
authorized officer of Seller; provided, however, that if any representation or warranty is true and correct as provided in the foregoing clause on the date of this Agreement, but such representation or warranty ceases to be so true and
correct thereafter and (A) Seller notifies Parent and Buyer in reasonable detail of the facts and circumstances as a result of which such representation or warranty ceases to be true and correct in all material respects and (B) the ceasing of such
representation or warranty to be so true and correct does not have or represent a Material Adverse Effect with respect the Business or the Purchased Assets, then for purposes of this Section 8.2(a) only (and not for purposes of any other Section or
Article hereunder, including Article 7, “Indemnification”), such representation or warranty shall be deemed to be so true and correct as of the Closing Date. 
  
 (b) Covenants. Seller will have performed and complied in all material respects with all of its
covenants contained in Article 5, “Covenants and Other Agreements,” on or before the Closing (to the extent that such covenants require performance by Seller on or before the Closing), and at the Closing Buyer will have received a
certificate to such effect signed by an authorized officer of Seller. 
  
 (c) No Material Adverse Change. There will not have been any Material Adverse Change in the Purchased Assets or the Business, and at the Closing, Buyer will have received a certificate to such effect signed by
an authorized officer of Seller. 
  
 (d)
Compliance with Law; No Legal Restraints; No Litigation. There will not be issued, enacted or adopted, or threatened in writing by any Governmental Authority, any order, decree, temporary, preliminary or permanent injunction, legislative
enactment, statute, regulation, action or proceeding, or any judgment or ruling by any Governmental Authority that prohibits or renders illegal or imposes limitations on the material transactions contemplated by this Agreement, any Seller Ancillary
Agreement or any Buyer Ancillary Agreement. No litigation or proceeding will be pending for the purpose or with the probable effect of enjoining or preventing the consummation the material transactions contemplated hereby or that could be reasonably
expected to have a Material Adverse Effect on the Purchased Assets or the Business. 
  
 (e) Requisite Approvals. Each of this Agreement and the Asset Purchase shall have been approved and adopted by the Requisite
Stockholder Approval. All covenants by which Seller is bound, which covenants, if not waived, would be breached by Seller as a result of the transactions contemplated by this Agreement, shall have been validly waived pursuant to the provisions of
thereof. 
  
 (f) Acceptance of Offers of
Employment. At least 90% of the Selected Employees shall have accepted Buyer’s or Parent’s offers of employment in a writing signed by them on terms satisfactory to Buyer; provided, however, that if a Selected Employee
refuses to accept Buyer’s or Parent’s offer of employment because the terms of such offer include either (i) compensation that is materially less than the Selected Employee’s current rate of compensation or (ii) benefits that are not
substantially similar to the benefits provided by Parent to its other employees holding a similar position to that offered to such Selected Employee, then such Selected Employee will not be counted for purposes of this Section 8.2(f) when
calculating the percentage of Selected Employees that have accepted Buyer’s offers of employment. 
  
 (g) Securities Exemptions. In the event that the Shares become issuable pursuant to Section 5.3(c) of this Agreement, then such
issuance of the Shares by Parent to Seller pursuant to this 

  

 61 

 
Agreement shall be exempt from the registration requirements of the Securities Act and shall be made in compliance with Applicable Legal Requirements.

  
 (h) Certificate as to Accounts Receivable
and Deferred Revenue. Seller shall have provided a certificate, in form and substance reasonably satisfactory to Parent, signed by the Chief Financial Officer of Seller, derived from and in accordance with the books and records of Seller,
setting forth and certifying (i) the Accounts Receivable (together with the aging thereof by customer) as of the Closing Date and (ii) the Deferred Revenue by customer, in both cases with such other information as may be reasonably requested by
Parent. 
  
 (i) Other Deliveries. Seller
will have made the other deliveries required by Section 2.9. 
  
 ARTICLE 9 
 TERMINATION OF AGREEMENT 
  
 9.1 Termination by Mutual Consent. This Agreement may be terminated at any time before the Closing by the mutual
written consent of Parent and Seller. 
  
 9.2 Unilateral
Termination. 
  
 (a) Either Parent or Seller,
by giving written notice to the other, may terminate this Agreement if a court of competent jurisdiction or other Governmental Authority shall have issued a nonappealable final order, decree or ruling or taken any other action, in each case having
the effect of permanently restraining, enjoining or otherwise prohibiting the transactions contemplated hereby. 
  
 (b) Either Parent or Seller, by giving written notice to the other, may terminate this Agreement if the Closing shall not have occurred by
5 p.m. Pacific Time on November 30, 2003 (the “Termination Date”); provided, however, that the right to terminate this Agreement pursuant to this Section 9.2(b) shall not be available to any party whose failure
to perform in any material respect any of its obligations or covenants under this Agreement results in the failure of any condition set forth in Article 8, “Conditions to Closing” or if the failure of such condition results from facts or
circumstances that constitute a material breach of a representation or warranty or covenant made under this Agreement by such party. 
  
 (c) Seller may terminate this Agreement at any time before the Closing (i) upon a breach of any representation, warranty, covenant or
agreement on the part of Parent or Buyer set forth in this Agreement or any Buyer Ancillary Agreement, or if any representation or warranty of Parent or Buyer shall have become untrue, in either case such that the conditions set forth in Section
8.1(a) or Section 8.1(b) would not be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue or (ii) if the condition in Section 8.1(c) would not be satisfied at any time before the
Closing, provided that if such inaccuracy in Parent’s or Buyer’s representations and warranties or breach by Parent or Buyer or the Material Adverse Change to Parent is curable by Parent, then Seller may not terminate this Agreement under
this Section 9.2(c) for 15 days after delivery of written notice from Seller to Parent of such breach or Material Adverse Change to Parent, provided Parent continues to exercise reasonable efforts to cure such breach or Material Adverse Change to
Parent (it being understood that Seller may not terminate this Agreement pursuant to this Section 9.2(c) if such breach by Parent or Buyer or Material Adverse Change to Parent is cured during such 15-day period, or if Seller shall have materially
breached this Agreement). 
  

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 (d) Parent may terminate this Agreement at any time before the Closing (i) upon a breach
of any representation, warranty, covenant or agreement on the part of Seller set forth in this Agreement or any Seller Ancillary Agreement, or if any representation or warranty of Seller shall have become untrue, in either case such that the
conditions set forth in Section 8.2(a) or Section 8.2(b) would not be satisfied as of the time of such breach or as of the time such representation or warranty shall have become untrue or (ii) if the condition in Section 8.2(c) would not be
satisfied at any time before the Closing, provided that if such inaccuracy in Seller’s representations and warranties or breach by Seller or the Material Adverse Change to the Purchased Assets or the Business is curable by Seller, then Parent
may not terminate this Agreement under this Section 9.2(d) for 15 days after delivery of written notice from Parent to Seller of such breach or Material Adverse Change to the Purchased Assets or the Business, provided Seller continues to exercise
reasonable efforts to cure such breach or Material Adverse Change to the Purchased Assets or the Business (it being understood that Parent may not terminate this Agreement pursuant to this Section 9.2(d) if such breach by Seller or Material Adverse
Change to the Purchased Assets or the Business is cured during such 15-day period, or if Parent shall have materially breached this Agreement). 
  
 (e) Either Seller or Parent, by given written notice to the other, may terminate this Agreement if this Agreement and the Asset Purchase
are not approved and adopted by the Requisite Stockholder Approval at a meeting of Seller stockholders duly convened therefor or at any adjournment thereof; provided, however, that the right to terminate this Agreement under this Section
9.2(e) shall not be available to Seller where the failure to obtain the approval of Seller’s stockholders shall have been caused by the action or failure to act of Seller and such action or failure to act constitutes a material breach by Seller
of this Agreement. 
  
 (f) Parent may terminate
this Agreement at any time before the Closing if a Triggering Event shall have occurred. For the purposes of this Agreement, a “Triggering Event” shall be deemed to have occurred if: (i) the Board of Directors of Seller or
any committee thereof shall for any reason have withdrawn or shall have amended or modified its recommendation in favor of the Seller stockholders approving the Agreement and the Asset Purchase; or (ii) the Board of Directors of Company or any
committee thereof shall have approved or publicly recommended any Alternative Proposal. 
  
 9.3 Notice of Termination; Effect of Termination. Any proper termination of this Agreement under Section 9.1 or Section 9.2 shall be effective immediately upon the delivery of written notice of the terminating
party to the other parties hereto (or, if all of the conditions therefor are satisfied, upon the expiration of any relevant cure period provided for in the relevant paragraphs of Section 9.1 or Section 9.2). In the event of the termination of this
Agreement as provided in Section 9.1 or Section 9.2, this Agreement shall be of no further force or effect, except (i) as set forth in Section 9.4 and Article 10, “General Provisions,” each of which shall survive the termination of this
Agreement and (ii) nothing herein shall relieve any party from Liability for any willful breach of any covenant of this Agreement or for any intentional or willful act or omission by a party which renders any representations or warranties of such
party untrue. 
  
 9.4 Fees. 
  
 (a) In the event that this Agreement is terminated by Parent
pursuant to Section 9.2(f), Seller shall promptly, but in no event later than ten Business Days after the date of such termination, pay Parent a fee in cash equal to $800,000 (which is equal to 4% of the guaranteed Purchase Price payable under this
Agreement) in immediately available funds (the “SellerTermination Fee”). 
  
 (b) In the event that this Agreement is terminated by Parent or Seller, as applicable, pursuant to clause (i) of the initial sentence of
Section 9.2(c) or clause (i) of the initial sentence of 

  

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Section 9.2(d), then if such termination is caused by the willful breach of any representation, warranty or covenant by the non-terminating party, the
non-terminating party shall promptly, but in no event later than ten Business Days after the date of such termination, pay the terminating party a fee in cash equal to $800,000 (which is equal to 4% of the guaranteed Purchase Price payable under
this Agreement) in immediately available funds (the “BreachTermination Fee”). 
  
 (c) Seller and Parent acknowledge that the agreements contained in this Section 9.4(a) are an integral part of the transactions
contemplated by this Agreement, and that, without these agreements, neither Seller nor Parent would enter into this Agreement. Accordingly, if either Seller or Parent fails to pay in a timely manner the amounts due pursuant to this Section 9.4, and,
in order to obtain such payment, Seller or Parent makes a claim that results in a judgment against the other party for the amounts set forth in this Section 9.4, the paying party shall pay to the receiving party its reasonable costs and expenses
(including reasonable attorneys’ fees and expenses) in connection with such suit, together with interest on the amounts set forth in this Section 9.4 at the prime rate of The Chase Manhattan Bank in effect on the date such payment was required
to be made. Payment of the fees described in this Section 9.4 shall not be in lieu of, and shall not limit any claim for, damages incurred in the event of fraud or willful breach of this Agreement. 
  
 9.5 Liquidated Damages. The Seller Termination Fee or the Breach
Termination Fee when paid to the receiving party in the manner herein provided shall constitute liquidated damages to the receiving party and the paying party shall have no further liability in respect thereof, except with respect to fraud or
willful breach of this Agreement. The parties agree that such damages are difficult to estimate and that such amounts are reasonable approximations of actual damages. 
  
 ARTICLE 10 
 GENERAL PROVISIONS 
  
 10.1 Dispute
Resolution. Any Contested Claim shall be settled by arbitration in (i) Santa Clara County, California with respect to any Claim made by Seller and (ii) in New York, New York, with respect to any Claim made by Parent or Buyer, and, except as
herein specifically stated, in accordance with the commercial arbitration rules (the “AAA Rules”) of the American Arbitration Association or its successor (“AAA”) then in effect. In the event AAA
ceases to provide arbitration service, then the term “AAA” shall thereafter mean and refer to J.A.M.S./ENDISPUTE (“J.A.M.S.”), and the arbitration will be conducted in accordance with the provisions of
J.A.M.S.’ Streamlined Arbitration Rules and Procedures (with the term “AAA Rules” thereafter meaning and referring to J.A.M.S.’ Streamlined Arbitration Rules and Procedures). However, in all events, the arbitration provisions of
this Section 10.1 shall govern over any conflicting rules that may now or hereafter be contained in the AAA Rules. Any judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction over the subject matter
thereof. The arbitrator shall have the authority to grant any equitable and legal remedies that would be available in any judicial proceeding instituted to resolve a Contested Claim. 
  
 (a) Compensation of Arbitrator. Any such arbitration will be conducted before a single arbitrator who
will be compensated for his or her services at a rate to be determined by the parties or by the AAA, but based upon reasonable hourly or daily consulting rates for the arbitrator in the event the parties are not able to agree upon his or her rate of
compensation. 
  
 (b) Selection of
Arbitrator. The AAA will have the authority to select an arbitrator from a list of arbitrators who are lawyers familiar with Delaware contract law; provided, however, that (i) such lawyers cannot work for a firm then performing
services for either party, (ii) each party will have the opportunity to make such reasonable objection to any of the arbitrators listed as such party may wish and (iii) the AAA will select the arbitrator from the list of arbitrators as to whom
neither party makes any 

  

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such objection. In the event that the foregoing procedure is not followed, each party will choose one person from the list of arbitrators provided by the AAA
(provided that such person does not have a conflict of interest), and the two persons so selected will select from the list provided by the AAA the person who will act as the arbitrator. 
  
 (c) Payment of Costs. The parties will bear the expense of deposits and advances required by the
arbitrator in equal proportions, but either party may advance such amounts, subject to recovery as an addition or offset to any award. The arbitrator will award to the prevailing party, as determined by the arbitrator, all costs, fees and expenses
related to the arbitration, including reasonable fees and expenses of attorneys, accountants and other professionals incurred by the prevailing party. 
  
 (d) Burden of Proof. For any Contested Claim submitted to arbitration, the burden of proof will be as it would be if the claim were
litigated in a judicial proceeding. 
  
 (e)
Award. Upon the conclusion of any arbitration proceedings hereunder, the arbitrator shall render findings of fact and conclusions of law and a final written arbitration award setting forth the basis and reasons for any decision reached (the
“Final Award”) and shall deliver such documents to Parent and Seller, together with a signed copy of the Final Award. The Final Award shall constitute a conclusive determination of all issues in question, binding upon the
Indemnified Persons, the Indemnifying Persons and Seller, and shall include an affirmative statement to such effect. To the extent that the Final Award determines that an Indemnified Person has actually incurred Damages in connection with the
Contested Claim through the date of the Final Award (“Incurred Damages”), the Final Award shall set forth and award to the Indemnified Person the amount of such Incurred Damages. Awards of Damages shall be subject to Section
7.4. 
  
 (f) Terms of Arbitration. The
arbitrator chosen in accordance with this Section 10.1 will not have the power to alter, amend or otherwise affect the provisions of this Agreement, including the terms of these arbitration provisions. 
  
 (g) Exclusive Remedy. Except as specifically
otherwise provided herein, arbitration will be the sole and exclusive remedy of the parties for any Contested Claim arising out of this Agreement. 
  
 10.2 Expenses. Except as provided in Section 5.3(d), Article 6 and Section 10.1 with regard to fees and expenses in connection with the respective
matters set forth therein, each party hereto will bear, pay and be responsible for all costs and expenses, including fees and disbursements of counsel, financial advisors and accountants, incurred by it in connection with this Agreement and the
transactions contemplated hereby. 
  
 10.3 Notices.
All notices and other communications required or permitted under this Agreement will be in writing and will be either hand delivered in person, sent by facsimile, sent by certified or registered first-class mail, postage pre-paid, or sent by
nationally recognized express courier service. Such notices and other communications will be effective upon receipt if hand delivered or sent by facsimile (with receipt confirmed), five days after mailing if sent by mail, and one day after dispatch
if sent by express courier, to the following addresses, or such other addresses as any party may notify the other parties in writing in accordance with this Section 10.3. 
  
 To Parent and Buyer: 
 Neoforma, Inc. 
 3061 Zanker Road 
 San Jose, California, 95134 
  

 65 

 Attention: General Counsel 
 Facsimile: 408-468-4040 
  
 with
a copy to: 
 Fenwick & West LLP 
 275 Battery Street, Suite 1500 
 San Francisco, California 94111 
 Attention: David Michaels 
 Facsimile: (415)
281-1350 
  
 To Seller: 
 I-many, Inc. 
 399 Thornall Street,
12th Floor 
 Edison, New Jersey 08837 
 Attention: President 
 Facsimile: 732-452-1511 
  
 with
a copy to: 
 Hale and Dorr LLP 
 60 State Street 
 Boston, Massachusetts 02109 
 Attention: Jeffrey Stein 
 Facsimile: (617) 526-5000 
  
 10.4 Headings. The headings contained in this Agreement are for
reference purposes only and will not affect in any way the meaning or interpretation of this Agreement. 
  
 10.5 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement will nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to
any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 
  
 10.6 Entire Agreement. This Agreement (including all Schedules and exhibits attached hereto), the Seller Ancillary
Agreements, the Buyer Ancillary Agreements, the Seller Disclosure Letter (including all Schedules thereto) and the Parent Disclosure Letter (including all Schedules thereto) constitute the entire agreement of the parties hereto with respect to the
subject matter hereof and supersede all prior agreements and undertakings with respect to the subject matter hereof, both written and oral. The express terms of this Agreement control and supersede any course of performance or usage of the trade
inconsistent with any of the terms hereof. 
  
 10.7
Assignment. This Agreement may not be assigned by any party hereto without the prior written consent of the other party and any purported assignment without such consent will be void. No such assignment by Parent or Buyer shall relieve Parent
or Buyer of any of its respective obligations under this Agreement. 
  
 10.8 No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their permitted assigns and nothing herein, express or implied, is intended to or will confer upon any 

  

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other person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement, except for the indemnification
rights of the Indemnified Persons under Article 7. 
  
 10.9
Amendment; Waiver. This Agreement may not be amended or modified except by an instrument in writing signed by each of the parties hereto. Waiver of any term or condition of this Agreement will only be effective if and to the extent documented
in a writing signed by the party making or granting such waiver and will not be construed as a waiver of any subsequent breach or waiver of the same term or condition, or a waiver of any other term or condition, of this Agreement. The failure of any
party to enforce any provision hereof will not be construed to be a waiver of the right of such party thereafter to enforce such provisions. 
  
 10.10 Counterparts. This Agreement may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each
of which when executed will be deemed to be an original but all of which taken together will constitute one and the same agreement. 
  
 10.11 Construction of Agreement. When a reference is made in this Agreement to Exhibits, such reference shall be to an Exhibit to this Agreement
unless otherwise indicated. When a reference is made in this Agreement to Sections, such reference shall be to a Section of this Agreement unless otherwise indicated. When a reference is made in this Agreement to an Article, such reference shall be
to an Article of this Agreement. This Agreement has been negotiated by Parent, Buyer and Seller and their attorneys and the language hereof will not be construed for or against either party. Unless otherwise indicated, the words “include,”
“includes” and “including” when used herein will be deemed in each case to be followed by the words “without limitation.” Each reference herein to a law, statute, regulation, document or agreement will be deemed in each
case to include all amendments thereto. 
  
 10.12
Attorneys’ Fees. Except as otherwise provided herein, should suit be brought to enforce or interpret any part of this Agreement, the prevailing party will be entitled to recover, as an element of the costs of suit and not as damages,
reasonable attorneys’ fees to be fixed by the court (including costs, expenses and fees on any appeal). The prevailing party will be entitled to recover its costs of suit, regardless of whether such suit proceeds to final judgment. 

 
 10.13 Specific Performance. Parent, Buyer and Seller each
acknowledge that, in view of the uniqueness of the Purchased Assets, the Business and the transactions contemplated by this Agreement, the Seller Ancillary Agreements and the Buyer Ancillary Agreements, a party would not have an adequate remedy at
law for money damages if this Agreement, any Seller Ancillary Agreement or any Buyer Ancillary Agreement is not performed in accordance with its respective terms. Each party to this Agreement therefore agrees that the other party hereto shall be
entitled to seek specific enforcement of the terms of this Agreement, any Seller Ancillary Agreement and any Buyer Ancillary Agreement in addition to any other remedy to which it may be entitled, at law or in equity. 
  
 10.14 Passage of Title and Risk of Loss. Legal title, equitable title
and risk of loss with respect to the Purchased Assets shall not pass to Buyer until the property or right is transferred at the Closing and possession thereof (in the case of tangible assets) is delivered to Buyer. 
  
 10.15 Governing Law; Forum. This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware, without giving effect to laws concerning choice of law or conflicts of law. Subject to Section 10.1, all disputes arising out of this Agreement or the obligations of the parties
hereunder, including disputes that may arise following termination of this Agreement, shall be subject to the exclusive jurisdiction and venue of the Delaware State courts (or, if there is federal jurisdiction, then the exclusive jurisdiction of the
United States District Court for the District of Delaware). EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENTS TO 

  

 67 

 
THE PERSONAL AND EXCLUSIVE JURISDICTION AND VENUE OF SAID COURTS AND WAIVES TRIAL BY JURY AND ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF
ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME. 
  
 [The remainder of this page is intentionally left blank.] 
  

 68 

 IN WITNESS WHEREOF, the parties have caused this Asset Purchase Agreement to be executed as of the date
first written above by their respective officers thereunto duly authorized. 
  

	I-MANY, INC.	 	 	 	NEOFORMA, INC.
					
	By:	 	 	 	 	 	By:	 	 
	 	
	 	 	 	 	

	 Name:
	 	 	 	 	 	 Name:
	 	 
	 	
	 	 	 	 	

	 Title:
	 	 	 	 	 	 Title:
	 	 
	 	
	 	 	 	 	

  

	 	 	 	 	NEOCARS CORPORATION
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 Title:
	 	 
	 	 	 	 	 	 	 	

  
 [Signature Page to
Asset Purchase Agreement]

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