Document:

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                                                                    Exhibit 10.3

                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT (as amended, supplemented or
modified from time to time, the "Registration Rights Agreement") is made as of
the 20th day of December 2000, by and between HEALTHCARE.COM CORPORATION, a
Georgia corporation (the "Company"), and SILICON VALLEY BANK ("SVB").

                              W I T N E S S E T H:

         WHEREAS, the Company and SVB have entered into that certain Loan and
Security Agreement, dated as of the 20th day of December 2000 (the "Financing
Agreement");

         WHEREAS, pursuant to the Financing Agreement, the Company also has
agreed to issue and sell to SVB a warrant (the "Warrant") to purchase 25,000
shares of the Common Stock (as adjusted from time to time in accordance with the
Warrant, the "Warrant Shares"; and

         WHEREAS, in order to induce SVB to enter into the Financing Agreement,
the Company has agreed to provide SVB with certain rights with respect to the
registration of the Common Stock to be issued to SVB pursuant to SVB's exercise
of the Warrant Shares.

         NOW, THEREFORE, in consideration of the premises, the terms and
conditions herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         Section 1. DEFINITIONS.

         "AFFILIATE" of any Person means any other Person directly or indirectly
         controlling, controlled by or under direct or indirect common control
         with such Person. For purposes of this definition, a Person shall be
         deemed to control another Person if such first Person possesses
         directly or indirectly the power to (i) vote 10% or more of the
         securities having ordinary voting power for the selection of directors
         of such Person or (ii) direct, or cause the direction of, the
         management and policies of the second Person, whether through the
         ownership of voting securities, by contract or otherwise.

         "COMMISSION" shall mean the Securities and Exchange Commission and any
         successor federal agency having similar powers.

         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
         amended, and the rules and regulations thereunder.

         "HOLDERS" shall mean SVB, and all other Persons holding Registrable
         Securities so long as SVB or such other Person holds Registrable
         Securities. Unless otherwise provided in this Agreement, in each
         instance that a Holder is required to request or consent to or

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         otherwise approve an action, such Holder will be deemed to have
         requested or consented to or otherwise approved such action if the
         Holders of a majority-in-interest of the Registrable Securities so
         request, consent or otherwise approve.

         "PERSON" this term shall be interpreted broadly to include any
         individual, sole proprietorship, partnership, joint venture, trust,
         unincorporated organization, association, corporation, company,
         institution, entity, party, or government (whether national, federal,
         state, county, city, municipal, or otherwise, including, without
         limitation, any instrumentality, division, agency, body, or department
         of any of the foregoing).

         "REGISTER," "REGISTERED," AND "REGISTRATION" refer to a registration
         effected by preparing and filing a registration statement in compliance
         with the Securities Act, and the declaration or ordering of the
         effectiveness of such registration statement.

         "REGISTRABLE SECURITIES" means (i) the Warrant Shares, and (ii) any
         Common Stock or other securities of the Company issued as (or issuable
         upon the conversion or exercise of any warrant, right or other security
         which is issued as) a dividend or other distribution with respect to,
         or in exchange for or in replacement of, the Warrant Shares.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended, and
         the rules and regulations thereunder.

         Section 2. PIGGYBACK REGISTRATION.

                  (a) If the Company proposes to register any Common Stock to be
issued by it or held by any other person in a public offering under the
Securities Act, on a form and in a manner which would permit registration of
Common Stock for sale to the public under the Securities Act (specifically
excluding any registration by the Company in connection with (1) a dividend
reinvestment, stock option, stock purchase or similar plan, (2) a transaction
pursuant to Rule 145 under the Securities Act, or (3) a merger, acquisition or
exchange offer on Form S-4 or any successor form), on each such occasion, the
Company shall as promptly as practicable but in no event later than ten (10)
days prior to the proposed filing date of the registration statement give
written notice (the "Notice") to the Holders of its intention to effect such
registration, and the Holders shall be entitled, on each such occasion, to
request to have all or a portion of the Registrable Securities included in such
registration statement. Upon the written request of the Holders that the Company
include any Registrable Securities in such registration statement (which request
shall state the number of Registrable Securities for which registration is
sought), given within ten (10) days after the giving of the Company's Notice,
the Company, shall use its reasonable efforts to cause such Registrable
Securities to be so included in the offering covered by such registration
statement, subject to the limitations hereinafter set forth. Any registration
statement filed by the Company may be withdrawn at any time at the discretion of
the Company upon a determination by its Board of Directors in good faith that
such withdrawal is in the best interest of the Company.

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                  (b) The registration of some or all of such Registrable
Securities pursuant to this Section 2 may be conditioned or reduced if, in the
case of a registration statement which also includes shares to be sold for the
account of the Company in an underwritten offering, in the judgment of the
managing underwriter of such proposed offering, inclusion thereof in such
registration statement will have an adverse impact on the marketing of the
securities to be offered by the Company and such condition or reduction applies
pro rata to all holders of the Company's securities having contractual rights to
include such securities in such registration statement who have requested
thereof under such registration statement. The amount of Registrable Securities
to be offered for the accounts of all Holders requesting to be included may
reduced proportionately to the extent necessary to reduce the total amount of
securities to be included in the offering to the amount recommended by such
managing underwriter (which may be zero, if recommended by such managing
underwriter); provided, however, that any such reduction shall be applied first
to any shares proposed to be sold by management of the Company in such
underwritten offering.

                  (c) The Company shall not be obligated to honor any request by
a Holder under this Section 2 if the Holder could then sell in a single
transaction under Rule 144 promulgated under the Securities Act the number of
Registrable Securities the Holder proposes to have registered under Section 2,
provided that the Company shall take reasonable actions to assist Holder in
effecting sales pursuant to Rule 144.

         Section 3. REGISTRATION PROCEDURES AND OBLIGATIONS.

                  (a) If and whenever the Company is obligated hereunder to
effect the registration of any Registrable Securities under the Securities Act,
the Company shall:

                           (i) Prepare and file with the Commission a
                  registration statement with respect to such securities on such
                  form as the Company deems appropriate and is permitted or
                  qualified to use and shall use all reasonable efforts to cause
                  such registration statement to become effective as soon a
                  practicable and to keep such registration effective until the
                  earlier of (A) the date when all Registrable Securities
                  covered by the registration statement have been sold or (B)
                  ninety (90) days from the effective date of the registration
                  statement plus any period during which the Holders of
                  Registrable Securities are obligated to refrain from selling
                  pursuant to Section 4(b) hereof; provided, that the
                  preparation and filing of the registration statement may be
                  delayed in the sole discretion of the Company, without
                  prejudice to the rights of the Holders pursuant to Section 2
                  upon determination by its Board of Directors in good faith
                  that such delay is in the best interests of the Company.

                           (ii) Furnish to the Holders at a reasonable time
                  prior to the filing thereof with the Commission a copy of the
                  registration statement in the form in which the Company
                  proposes to file the same; not later than one day prior to the
                  filing thereof, a copy of any amendment (including any
                  post-effective amendment) to such registration statement; and
                  promptly following the

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                  effectiveness thereof, a conformed copy of the registration
                  statement as declared effective by the Commission and of each
                  post-effective amendment thereto, including financial
                  statements and all exhibits and reports incorporated therein
                  by reference.

                           (iii) Furnish to the Holders such number of copies of
                  such registration statement, each amendment thereto, the
                  prospectus included in such registration statement (including
                  each preliminary prospectus), each supplement thereto and such
                  other documents as they may reasonably request in order to
                  facilitate the disposition of the Registrable Securities owned
                  by them.

                           (iv) Use all reasonable efforts to register and
                  qualify the Registrable Securities covered by the registration
                  statement under such other securities laws of such
                  jurisdictions as shall be reasonably requested by the Holders
                  and do any and all other acts and things which may be
                  reasonably necessary or advisable to enable the Holders to
                  consummate the disposition of the Registrable Securities owned
                  by the Holders in such jurisdictions; provided, however, that
                  the Company shall not be required in connection therewith or
                  as a condition thereto to qualify to transact business or to
                  file a general consent to service of process in any such
                  states or jurisdictions, or to maintain the effectiveness of
                  any such registration or qualification for any period during
                  which it is not required to maintain the effectiveness of the
                  related registration statement under the Securities Act.

                           (v) Promptly notify the Holders of the happening of
                  any event as a result of which the prospectus included in such
                  registration statement contains an untrue statement of a
                  material fact or omits any fact necessary to make the
                  statements therein not misleading and, at the request of the
                  Holders, and subject to the further provisions of Section
                  4(b), the Company will prepare a supplement or amendment to
                  such prospectus so that, as thereafter delivered to the
                  purchasers of such Registrable Securities, such prospectus
                  will not contain an untrue statement of a material fact or
                  omit to state any fact necessary to make the statements
                  therein not misleading.

                           (vi) Enter into such customary agreements in form and
                  substance satisfactory to the Company and take such other
                  customary actions as may be reasonably requested in order to
                  expedite or facilitate the disposition of such Registrable
                  Securities.

                           (vii) Make reasonably available for inspection by the
                  Holders pursuant to such registration statement and any
                  attorney or accountant retained by the Holders, all financial
                  and other records, pertinent corporate documents and
                  properties of the Company, and use all reasonable efforts to
                  cause the officers, directors, employees and independent
                  accountants of the Company to supply all information
                  reasonably requested by the Holders, its attorney or its
                  accountant in connection with such registration statement, in
                  each case as and to the extent

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                  necessary to permit the Holders to conduct a reasonable
                  investigation within the meaning of the Securities Act. To
                  minimize disruption and expense to the Company during the
                  course of the registration process, the Holders shall, to the
                  extent practicable, coordinate investigation and due diligence
                  efforts hereunder and, to the extent practicable, will act
                  through a single set of counsel and a single set of
                  accountants and will enter into confidentiality agreements
                  with the Company in form and substance reasonably satisfactory
                  to the Company and the Holders prior to receiving any
                  confidential or proprietary information of the Company.

                           (viii) Promptly notify the Holders of the following
                  events and (if requested by the Holders) confirm such
                  notification in writing: (w) the filing of the prospectus or
                  any prospectus supplement and the registration statement and
                  any amendment or post-effective amendment thereto and, with
                  respect to the registration statement or any post-effective
                  amendment thereto, the declaration of the effectiveness of
                  such documents, (x) any requests by the Commission for
                  amendments or supplements to the registration statement or the
                  prospectus or for additional information, (y) the issuance or
                  threat of issuance by the Commission of any stop order
                  suspending the effectiveness of the registration statement or
                  the initiation of any proceedings for that purpose, and (z)
                  the receipt by the Company of any notification with respect to
                  the suspension of the qualification of the Registrable
                  Securities for sale in any jurisdiction or the initiation or
                  threat of initiation of any proceeding for such purpose.

                           (ix) Cooperate with the Holders to facilitate the
                  timely preparation and delivery of certificates representing
                  the Registrable Securities to be sold and not bearing any
                  restrictive legends, and enable such Registrable Securities to
                  be in such lots and registered in such names as the Holders
                  may request at least two (2) business days prior to any
                  delivery of the Registrable Securities to the purchaser.

                           (x) Prior to the effectiveness of the registration
                  statement and any post-effective amendment thereto, (A) make
                  such representations and warranties to the Holders and the
                  underwriters, if any, with respect to the Registrable
                  Securities and the registration statement as are customarily
                  made by issuers in similar underwritten offerings; (B) deliver
                  such documents and certificates as may be reasonably requested
                  (1) by the Holders, and (2) by the underwriters, if any, to
                  evidence compliance with clause (A) above and with any
                  customary conditions contained in the underwriting agreement
                  or other agreement entered into by the Company; and (C) obtain
                  opinions of counsel to the Company (which counsel and which
                  opinions shall be reasonably satisfactory to the underwriters,
                  if any), covering the matters customarily covered in opinions
                  requested in underwritten offerings.

                           (xi) Otherwise use its best efforts to comply with
                  all applicable rules and regulations of the Commission, and
                  make generally available to its security

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                  holders an earnings statement satisfying the provisions of
                  Section 11(a) of the Securities Act, no later than forty-five
                  (45) days after the end of any twelve-month period (or no
                  later than ninety (90) days, if such twelve-month period is a
                  fiscal year) beginning with the first month of the fiscal
                  quarter of the Company commencing after the effective date of
                  the registration statement, which statements shall cover such
                  twelve-month periods.

                           (xii) Use all reasonable efforts to list the
                  Registrable Securities on the Nasdaq Stock Market (or other
                  exchange on which the common stock of the Company is then
                  traded) and to thereafter. The Company shall pay all fees and
                  expenses of such listing.

                  (b) The Company's obligations with respect to and compliance
with the registration statement provisions set forth herein shall be expressly
conditioned upon the Holder's compliance with the following:

                          (i) the Holders shall cooperate with the Company in
                  connection with the preparation of the registration statement,
                  and for so long as the Company is obligated to keep the
                  registration statement effective, shall provide to the
                  Company, in writing, for use in the registration statement,
                  all such information regarding the Holders and the plan(s) of
                  distribution of the Registrable Securities as may be necessary
                  to enable the Company to prepare the registration statement
                  and prospectus covering the Registrable Securities, to
                  maintain the currency and effectiveness thereof and otherwise
                  to comply with all applicable requirements of law in
                  connection therewith.

                          (ii) During such time as the Holders may be engaged in
                  a distribution of the Registrable Securities, the Holders
                  shall comply with Regulation M promulgated under the
                  Securities Exchange Act of 1934, as amended (the "Exchange
                  Act"), and pursuant thereto, shall, among other things: (A)
                  not engage in any stabilization activity in connection with
                  the securities of the Company in contravention of the rules
                  comprising Regulation M; (B) distribute the Registrable
                  Securities solely in the manner described in the registration
                  statement; (C) cause to be furnished to each broker through
                  whom the Registrable Securities may be offered, or to the
                  offeree if an offer is not made through a broker, such copies
                  of the prospectus and any amendment or supplement thereto and
                  documents incorporated by reference therein as may be required
                  by law; and (D) not bid for or purchase any securities of the
                  Company or attempt to induce any person to purchase any
                  securities of the Company other than as permitted under the
                  Exchange Act.

                  (c) The Company shall bear the expenses of registration of the
Registrable Securities pursuant to Section 2; provided, however, that each of
the Holders shall be responsible for the fees and expenses of its own counsel,
its own accountants and other experts retained by it with respect to such
registration and resales, all underwriting discounts or brokerage fees or

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commissions relating to the sale of the Registrable Securities, and all transfer
taxes and other similar expenses of the sale of the Registrable Securities.

         Section 4. HOLDBACK AGREEMENTS.

                  (a) Notwithstanding any provision herein to the contrary, in
the event the Company notifies the Holders, in writing and no later than ten
(10) days prior to the proposed filing date that the Company intends to file a
registration statement in connection with an underwritten offering of any of its
capital stock for its own account, the Holders shall refrain from selling or
otherwise distributing any Registrable Securities (other than Registrable
Securities included in such registration statement) within the period beginning
up to seven days prior to the effective date of such registration statement (or
on such later date that the Company notifies the Holders, in writing, that such
period has begun) and ending no later than 120 days after such effective date
(or on such earlier date that the Company notifies the Holders that such period
has ended) (the "Offering Restricted Period").

                  (b) Notwithstanding anything set forth herein to the contrary,
if the registration statement filed by the Company pursuant to Section 2 hereof
is a shelf registration statement, each of the Holders agrees that it will give
the Company prior oral notice, directed to its Chief Executive Officer or its
Chief Financial Officer, confirmed immediately in writing by facsimile
transmission, of its intention to sell any Registrable Securities under such
shelf registration statement, which notice shall be given not less than two (2)
days in advance of any such proposed sale. In the event that the Company
thereafter informs the Holders that there exist bona fide financing, acquisition
or other plans of the Company or other matters which would require disclosure by
the Company of information, the premature disclosure of any of which would
adversely affect or otherwise be detrimental to the Company, or that the Company
desires to amend the registration statement or to supplement the prospectus in
order to disclose material information required to be disclosed in the
prospectus in order to correct an untrue statement of a material fact or to
disclose an omitted fact that is required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances then
existing, the Holders shall refrain from selling Registrable Securities until
the earlier to occur of the date (x) the Company notifies the Holders that it
has filed with the Commission an amendment or supplement to the prospectus
included in the shelf registration statement, or (y) the Company notifies the
Holders that the potentially disclosable event no longer exists and that the
prospectus included in the shelf registration statement does not contain an
untrue statement of material fact or omit to state any fact necessary to make
the statements therein not misleading (each of which is a "Disclosure Restricted
Period"). The Company's obligation under Section 2 to keep a shelf registration
statement filed pursuant to Section 2 current and effective shall be extended
for a number of days equal to the Disclosure Restricted Period, or, if earlier,
until the date on which all of the Registrable Securities have been disposed of.

         Section 5. INDEMNIFICATION AND CONTRIBUTION.

                  (a) BY THE COMPANY. In connection with the registration under
the Securities Act of the Registrable Securities, the Company shall indemnify
and hold harmless the Holder(s)

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and each other person, if any, who controls any of the Holder(s) within the
meaning of Section 15 of the Securities Act ("controlling persons"), against any
expenses, losses, claims, damages, liabilities or costs (including without
limitation court costs and attorneys' fees), joint or several (or actions in
respect thereof) ("Losses"), to which each such indemnified party may become
subject, under the Securities Act or otherwise, but only to the extent such
Losses arise out of or are based upon (i) any untrue statement or alleged untrue
statement of any material fact contained, on the effective date thereof, in any
registration statement under which the Registrable Securities were registered
under the Securities Act, in any preliminary prospectus (if used prior to the
effective date of such registration statement) or in any final Prospectus or in
any post-effective amendment or supplement thereto (if used during the period
the Company is required to keep the registration statement effective) (the
"Disclosure Documents"), or (ii) any omission or alleged omission to state in
any of the Disclosure Documents a material fact required to be stated therein or
necessary to make the statements made therein not misleading, or (iii) any
violation of any federal or state securities laws or rules or regulations
thereunder committed by the Company in connection with the performance of its
obligations under this Agreement; and the Company will reimburse each such
indemnified party for all legal and other expenses reasonably incurred by such
party in investigating or defending against any such claims, whether or not
resulting in any liability, or in connection with any investigation or
proceeding by any governmental agency or instrumentality with respect to any
offering of securities pursuant to this Agreement; PROVIDED, HOWEVER, that the
Company shall not be liable to an indemnified party or any other Holder(s) or
controlling person of any other Holder(s) in any such case to the extent that
any such Losses arise out of or are based upon (i) an untrue statement or
omission or alleged omission (x) made in any such Disclosure Documents in
reliance upon and in conformity with written information furnished to the
Company by such indemnified party for use therein, or (y) made in any
preliminary prospectus if a copy of the final Prospectus was not delivered to
the person alleging any loss, claim, damage or liability for which Losses arise
at or prior to the written confirmation of the sale of the Registrable
Securities to such person and the untrue statement or omission concerned had
been corrected in such final Prospectus and copies thereof had timely been
delivered by the Company to such indemnified party; or (ii) the use of any
Prospectus after such time as the Company has advised such indemnified party in
writing that the filing of a post-effective amendment or supplement thereto is
required, except the Prospectus as so amended or supplemented, or the use of any
Prospectus after such time as the obligation of the Company to keep the same
current and effective has expired.

                  (b) BY THE HOLDER(S). In connection with the registration
under the Securities Act of the Registrable Securities of the Holder(s) pursuant
to this Agreement, the Holder(s) of such Registrable Securities shall,
severally, indemnify and hold harmless the Company, each of its directors, each
of its officers who have signed such registration statement and each other
person, if any, who controls the Company within the meaning of Section 15 of the
Securities Act, and each other Holder(s) and each controlling person of such
Holder(s) against any Losses to which such indemnified party may become subject
under the Securities Act or otherwise, but only to the extent such Losses arise
out of or are based upon (i) any untrue statement or alleged untrue statement of
any material fact contained in any of the Disclosure Documents or any omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, if the
statement or omission was made

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in reliance upon and in conformity with written information furnished to the
Company by such indemnifying party for use therein; (ii) the use by such
indemnifying party of any Prospectus after such time as the Company has advised
such indemnifying party in writing that the filing of a post-effective amendment
or supplement thereto is required, except the Prospectus as so amended or
supplemented, or after such time as the obligation of the Company to keep the
registration statement effective and current has expired, or (iii) any
information given or representation made by such indemnifying party in
connection with the sale of the Registrable Securities which is not contained in
and not in conformity with the Prospectus (as amended or supplemented at the
time of the giving of such information or making of such representation); and
such indemnifying party shall reimburse each such indemnified party for all
legal and other expenses reasonably incurred by such party in investigating or
defending against any such claims, whether or not resulting in any liability, or
in connection with any investigation or proceeding by any governmental agency or
instrumentality relating to any such claims with respect to any offering of
securities pursuant hereto; provided, that the total amount for which any Holder
shall be liable under this Section 5 shall not in any event exceed the aggregate
net proceeds received by such Holder from the sale of Registrable Securities
held by such Holder in such registration.

                  (c) ACTIONS COMMENCED. If a third party commences any action
or proceeding against an indemnified party related to any of the matters subject
to indemnification under subsections (a) or (b) hereof, such indemnified party
shall promptly give notice to the indemnifying party in writing of the
commencement thereof, but failure so to give notice shall not relieve the
indemnifying party from any liability which it may have hereunder unless the
indemnifying party is prejudiced thereby.

                           The indemnifying party shall be entitled to control
the defense or prosecution of such claim or demand in the name of the
indemnified party, with counsel reasonable satisfactory to the indemnified
party, if it notifies the indemnified party in writing of its intention to do so
within 20 days of its receipt of the notice from the indemnified party without
prejudice, however, to the right of the indemnified party to participate therein
through counsel of its own choosing, which participation shall be at the
indemnified party's expense unless (i) the indemnified party shall have been
advised by its counsel that use of the same counsel to represent both the
indemnifying party and the indemnified party would represent a conflict of
interest (which shall be deemed to include any case where there may be a legal
defense or claim available to the indemnified party which is different from or
additional to those available to the indemnifying party), in which case the
indemnifying party shall not have the right to direct the defense of such action
on behalf of the indemnified party, or (ii) the indemnifying party shall fail
vigorously to defend or prosecute such claim or demand within a reasonable time.
Whether or not the indemnifying party chooses to defend or prosecute such claim,
the parties hereto shall cooperate in the prosecution or defense of such claim
and shall furnish such records, information and testimony and attend such
conferences, discovery proceedings, hearings, trials and appeals as may be
requested in connection therewith. The indemnifying party shall not, in the
defense of such claim or any litigation resulting therefrom, consent to entry of
any judgment against the indemnified party (or settle any claim involving an

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admission of fault on the part of the indemnified party), except with the
consent of the indemnified party (which consent shall not be unreasonably
withheld).

                  (d) CONTRIBUTION. If the indemnification provided for in
subsections (a) or (b) is unavailable to or insufficient to hold the indemnified
party harmless under subsections (a) or (b) above in respect of any Losses
referred to therein for any reason other than as specified therein, then the
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such Losses in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the one
hand and such indemnified party on the other in connection with the statements
or omissions which resulted in such Losses, as well as any other relevant
equitable considerations. The relative fault shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact
relates to information supplied by (or omitted to be supplied by) the Company or
the Holder(s) and the parties' relative intent, knowledge, access to information
and opportunity to correct or prevent such statement or omission. The amount
paid or payable by an indemnified party as a result of the Losses referred to
above in this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation.

         Section 6. AVAILABLE INFORMATION. The Company shall at all times take
such reasonable action and file such information, documents and reports as shall
be required by the Commission as a condition to the availability of Rule 144 and
Rule 144A promulgated under the Securities Act, or any successor provisions.

         Section 7. AMENDMENTS AND WAIVERS. Any provision of this Registration
Rights Agreement may be amended, supplemented, waived, discharged or terminated
by a written instrument signed by the Company and the Holders of not less than a
majority of the aggregate outstanding Registrable Securities, voting as a single
group.

         Section 8. SPECIFIC PERFORMANCE. The parties agree that irreparable
damage will result in the event that the obligations of the Company under this
Registration Rights Agreement are not specifically enforced, and that any
damages available at law for a breach of any such obligations would be
inadequate. Therefore, the Holders of the Registrable Securities shall have the
right to specific performance by the Company of the provisions of this
Registration Rights Agreement, and appropriate injunctive relief may be applied
for and granted in connection therewith. The Company hereby irrevocably waives,
to the extent that it may do so under applicable law, any defense based on the
adequacy of a remedy at law which may be asserted as a bar to the remedy of
specific performance in any action brought against the Company for specific
performance of this Registration Rights Agreement by the Holders of Registrable
Securities. Such remedies and all other remedies provided for in this
Registration Rights Agreement shall, however, be cumulative and not exclusive
and shall be in addition to any other remedies which may be available under this
Registration Rights Agreement.

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         Section 9. NOTICES.

         (a) Any notice or demand to be given or made by the Holders of
Registrable Securities to or on the Company pursuant to this Registration Rights
Agreement shall be sufficiently given or made if sent by registered mail, return
receipt requested, postage prepaid, addressed to the Company at 1850 Parkway
Place, Suite 1100, Marietta, Georgia 30067-8274, Attention: President.

         (b) Any notice to be given by the Company to the Holders of Registrable
Securities shall be sufficiently given or made if sent by registered mail,
return receipt requested, postage prepaid, addressed to such holder as such
Holder's name and address shall appear on the warrant register or the register
for the Common Stock, as the case may be.

         Section 10. BINDING EFFECT. This Registration Rights Agreement shall be
binding upon and inure to the sole and exclusive benefit of the Company, its
successors and assigns, and the registered Holders from time to time of the
Registrable Securities.

         Section 11. COUNTERPARTS. This Registration Rights Agreement may be
executed in one or more separate counterparts and all of said counterparts taken
together shall be deemed to constitute one and the same instrument.

         Section 12. GEORGIA LAW. THIS REGISTRATION RIGHTS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

                  [Remainder of page intentionally left blank]

                                      -11-
<PAGE>   12

         IN WITNESS WHEREOF the parties hereto have caused this Registration
Rights Agreement to be duly executed and delivered by their proper and duly
authorized officers, as of the date and year first above written.

                                     HEALTHCARE.COM CORPORATION

                                     By:
                                         ---------------------------------------
                                          Secretary
                                          Joseph A. Blankenship

                                     SILICON VALLEY BANK

                                     By:
                                         ---------------------------------------
                                         Name:
                                               ---------------------------------
                                         Title:
                                               ---------------------------------

                                      -12-<PAGE>   1

       -------------------------------------------------------------------

                             DISTRIBUTION AGREEMENT
                                     BETWEEN
                           LOUISVILLE BEDDING COMPANY
                                       AND
                       SPAN-AMERICA MEDICAL SYSTEMS, INC.

       -------------------------------------------------------------------

                                  March 1, 1999

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<PAGE>   2

                                TABLE OF CONTENTS

SECTION                                                                     PAGE

1. General Terms...............................................................1
     1.1  Appointment and Acceptance...........................................1
     1.2  Exclusivity of Distributorship.......................................2
     1.3  Exclusivity of Manufacturer..........................................2

2.  Orders, Pricing and Shipping...............................................2
     2.1  Orders and Acceptance................................................2
     2.2  Order Acceptance and Processing......................................2
     2.3  Price Lists..........................................................3
     2.4  Delivery; Shipping Cost; Risk of Loss................................3
     2.5  Terms of Payment.....................................................3

3.  Obligations of Manufacturer................................................4
     3.1  Registration for Intellectual Property...............................4
     3.2  Product Warranty; Limitations; Remedies..............................4
     3.3  Intellectual Property Warranty.......................................4
     3.4  Infringement Actions.................................................5
     3.5  Insurance............................................................5
     3.6  Confidential Information.............................................6
     3.7  Indemnification By Manufacturer......................................6

4.  Obligations of Distributor.................................................7
     4.1  Sales of Products....................................................7
     4.2  Conduct of Sales Activities; Qualification to do Business............7
     4.3  Confidential Information.............................................7
     4.4  Indemnification by Distributor.......................................7

5.  Representations and Warranties of the Parties..............................8
     5.1  Representations and Warranties of Manufacturer.......................8
     5.2  Representations and Warranties of Distributor........................9

6.  Term      ................................................................10

7.  Default and Termination...................................................10
     7.1  Termination by Manufacturer Without Notice..........................10
     7.2  Termination by Manufacturer with Notice.............................11
     7.3  Termination by Distributor Without Notice...........................11

8.  Rights and Obligations Upon Termination of Agreement .....................12

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                                       -i-

<PAGE>   3

                                TABLE OF CONTENTS

SECTION                                                                     PAGE

9.  Independent Contractor Relationship.......................................13

10.  Miscellaneous Provisions.................................................13
     10.1  Force Majeure......................................................13
     10.2  Notices............................................................13
     10.3  Entire Agreement; Amendment........................................14
     10.4  Severability.......................................................14
     10.5  Assignability......................................................14
     10.6  No Implied Waivers.................................................14
     10.7  Governing Law......................................................15
     10.8  Construction and Interpretation of the Agreement...................15
     10.9  Counterparts.......................................................15

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                                      -ii-

<PAGE>   4

                             DISTRIBUTION AGREEMENT

     THIS DISTRIBUTION AGREEMENT is entered into and effective as of March 1,
1999, by and between LOUISVILLE BEDDING COMPANY ("Distributor"), a Delaware
corporation, and SPAN- AMERICA MEDICAL SYSTEMS, INC. ("Manufacturer"), a South
Carolina corporation.

     RECITALS:

     A. Manufacturer manufactures a line of foam products marketed under various
trademarks and sells its products to retailers and all segments of the health
care market.

     B. Distributor desires to serve as the exclusive distributor for the
products listed on Exhibit A to this Agreement (the "Products"), to those
general retail merchandisers that sell to general consumers, including stores
such as Target, Dillards, J.C. Penney and Sears (collectively, "General
Merchandisers") who are located in the United States, Canada and Mexico
(collectively, the "Territory"), but excluding specialty merchandisers that
market and sell durable medical products and equipment in the health care market
and Park Place Corporation and its subsidiaries (the "Specialty Merchandisers"),
upon the terms set forth in this Agreement.

     AGREEMENT:

     NOW, THEREFORE, the parties hereby agree as follows:

1. GENERAL TERMS.

     1.1 APPOINTMENT AND ACCEPTANCE. Upon the terms and subject to the
conditions set forth in this Agreement, Manufacturer hereby appoints Distributor
as its distributor for the sale, marketing and distribution of the Products to
General Merchandisers located within the Territory.

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<PAGE>   5

Distributor accepts such appointment and shall act in such a capacity as
described in this Agreement.

     1.2 EXCLUSIVITY OF DISTRIBUTORSHIP. During the "Term" (as defined in
Section 6), Manufacturer shall not appoint any other distributor, agent,
partner, consignee or representative, or otherwise sell, distribute, represent,
promote or make available the Products to any General Merchandiser located
within the Territory. Manufacturer, however, may for itself, or may authorize
others to, sell, distribute, represent, promote or make available the Products
within the Territory solely to the Specialty Merchandisers.

     1.3 EXCLUSIVITY OF MANUFACTURER. During the Term, Distributor shall not
sell, distribute, represent, promote or otherwise make available any foam
related products that are similar to the Products ("Competitive Products") and
are manufactured or produced by any person or entity other than Manufacturer.
Nothing herein shall limit the right of Distributor to sell, distribute,
represent, or promote, within the territory, products which are not Competitive
Products.

2.  ORDERS, PRICING AND SHIPPING.

     2.1 ORDERS AND ACCEPTANCE. The parties shall cooperate to establish
standards and protocols for electronically transmitting orders, acceptances and
related data in a way that is satisfactory to both parties, including the use of
third party service providers, systems operations, security procedures and
transmission procedures. Manufacturer and Distributor shall abide by the
communication standards to which they agree and such standards shall be subject
to the terms of this Agreement.

     2.2 ORDER ACCEPTANCE AND PROCESSING. Upon acceptance of an order by
Manufacturer in the manner that the parties have agreed for Electronic Data
Interchange ("EDI"), such order shall be binding on Manufacturer. If a dispute
arises regarding the time of the formation of a contract due to discrepancies
between Manufacturer's and Distributor's computer records, the parties shall
promptly designate representatives to meet and in good faith attempt to resolve
the dispute in a

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                                       -2-

<PAGE>   6

manner satisfactory to both parties. Manufacturer shall employ its reasonable
best efforts to fill Distributor's orders within 15 days of acceptance and shall
allot available inventories to permit Distributor to have first priority in
filling its respective orders to customers located in the Territory. Distributor
will provide Manufacturer with forecasts of its expected orders on a quarterly
basis, or at such other time as Manufacturer shall reasonably request, so that
Manufacturer will have a basis to determine its production needs. Distributor
and Manufacturer agree that all shipping dates shall be firm and shall be
computed from the date that an order is accepted by Manufacturer.

     2.3 PRICE LISTS. Manufacturer shall maintain and publish a wholesale price
list for the Products. The price list shall remain firm for 180 days.
Manufacturer may adjust the price list from time to time during the Term upon 30
days' prior notice to Distributor. The new prices shall be effective on the
later of (a) the 30th day following the date of the notice, or (b) the effective
date set forth in the notice. Any orders placed by Distributor prior to the
effective date for the new prices will be at the lower of (a) price in effect
prior to the effective date of the notice, or the (b) the price set forth in the
notice.

     2.4 DELIVERY; SHIPPING COST; RISK OF LOSS. Manufacturer shall ship the
Products with UCC128 labeling provided by Distributor. In connection with
shipments, Manufacturer shall provide Advance Shipment Notices upon
implementation of EDI transactions. All prices set forth on the product list
will be F.O.B. Greeneville, South Carolina and Norwalk, California, or such
other locations as may become additional manufacturing locations.

     2.5 TERMS OF PAYMENT. Distributor shall pay for all Products purchased by
it from Manufacturer within 30 days following the receipt of Manufacturer's
invoice. If Distributor credits a customer who returns any of the Products due
to manufacturing defects, Manufacturer shall credit Distributor with the amount
of such return within five days of return of the defective products to
Manufacturer.

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                                       -3-

<PAGE>   7

3.  OBLIGATIONS OF MANUFACTURER.

     3.1 REGISTRATION FOR INTELLECTUAL PROPERTY. Manufacturer shall register the
patents, know-how, trade secrets, and other proprietary information
(collectively, "Patents") and trademarks ("Trademarks") that Manufacturer uses
in connection with the Products with all appropriate governmental agencies.
Manufacturer shall bear all expenses relating to the registration of Patents and
Trademarks as well as the making of any filing or obtaining any approvals for
the use of such Patents and Trademarks by Distributor. Manufacturer shall grant
Distributor a license to use its Trademark and Patents.

     3.2 PRODUCT WARRANTY; LIMITATIONS; REMEDIES. Manufacturer warrants to
Distributor that the Products shall be free from defects in materials and
workmanship. Manufacturer shall repair or replace any defective Products. All
authorized warranty repairs and service will be performed by Manufacturer in a
timely manner. OTHER THAN THE EXPRESS WARRANTY SET FORTH ABOVE, MANUFACTURER
MAKES NO OTHER WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, AS TO
MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSE, OR ANY OTHER MATTER WITH
RESPECT TO THE PRODUCTS.

    3.3  INTELLECTUAL PROPERTY WARRANTY.

            (a) Manufacturer represents and warrants to Distributor that
Manufacturer lawfully possesses and owns all Patents and Trademarks and other
intellectual properties, or has otherwise obtained a license to use such rights
in connection with the Products and to perform all its obligations under this
Agreement free and clear of any limitations on the ownership or other
restrictions that would in any manner prevent Distributor, or any of its
respective customers from using the Products without payment of any obligation
to any third-party.

            (b) Manufacturer shall indemnify Distributor, its sub-distributors
and their respective directors, officers and employees (collectively, the
"Indemnitees") against, and hold all of the

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                                       -4-

<PAGE>   8

Indemnitees harmless from, any loss, claim, liability, deficiency, action,
arbitration, audit, hearing, investigation, litigation, or suit (whether civil,
criminal, administrative, investigative, or informal), demand, assessments,
orders, costs and other expenses (including reasonable attorneys' and accounting
fees) of any nature and of any kind whatsoever, arising out of or resulting from
any Indemnitee's use of any of the Patents and Trademarks of Manufacturer in the
Territory. If litigation involving the Patents or Trademarks is instituted or
threatened against any of the Indemnitees for its use thereof within the
Territory, Distributor shall notify Manufacturer promptly. Manufacturer, at its
expense, shall diligently defend against any such claim or litigation.
Distributor agrees to execute any documents, and to render any assistance
(exclusive of monetary assistance) as reasonably may be reasonably requested in
conducting the defense of any such claim or litigation related to the Patents or
Trademarks.

    3.4 INFRINGEMENT ACTIONS. If Distributor discovers or learns of any
infringing use of Patents or Trademarks, Distributor shall notify Manufacturer
promptly and Manufacturer shall prosecute any such infringing use of the Patents
or Trademarks. In the prosecution of such infringing use, Manufacturer shall
make prompt demand upon the infringer to cease and desist the infringing use of
the Patents or Trademarks. In such event, Distributor agrees to execute any
documents and to render any assistance (exclusive of monetary assistance) as may
reasonably be requested in conducting the prosecution of any such claim or
litigation, but all costs and expenses related thereto shall be borne entirely
by Manufacturer.

    3.5 INSURANCE. Manufacturer, at its expense, shall procure and maintain in
full force and effect during the Term an insurance policy or policies protecting
Distributor and Manufacturer, and Distributor's officers, directors and
employees, against any loss, liability, product liability, personal injury,
death, and for one year afterwards, property damage or expense whatsoever
arising or occurring upon or in connection with the acts or omissions of
Manufacturer, the use and operation of the Products, or its employees and agents
in connection with the performance of its obligations under this Agreement.
Distributor shall be named as an additional insured on such policy or policies,
as its interest may appear. To the extent obtainable, all policies shall contain
a provision that such policies shall not be canceled except on 30 days' prior
notice to Distributor.

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                                       -5-

<PAGE>   9

Such policy or policies shall be written by a responsible insurance company
satisfactory to Distributor in such amounts and with such deductibles as are
reasonably acceptable to Distributor.

    3.6 CONFIDENTIAL INFORMATION. During the term, Manufacturer shall hold in
confidence and not use for any purpose or disclose to any person except as
otherwise reasonably required to perform its obligations hereunder, any
proprietary secret or confidential information relating to Distributor,
Distributor's marketing activities, processes, products, machinery, apparatus or
trade secrets or any other confidential information given to, obtained or
learned by Manufacturer, its agents or employees in the course of or as a result
of performing its obligations under this Agreement (the "Distributor
Confidential Information"). Manufacturer shall instruct its employees of the
obligation of confidence imposed by this Agreement. The obligations of
confidentiality shall not apply to information that: (a) was known by
Manufacturer at the time of receipt; (b) was in the public domain at the time of
receipt; (c) becomes public through no fault of Manufacturer; (d) Manufacturer
legitimately learns from third parties who are under no obligation of
confidentiality with respect to the information, or (e) is required by
applicable law to be divulged.

    3.7 INDEMNIFICATION BY MANUFACTURER. Manufacturer shall indemnify
Distributor, its officers, directors, employees, agents and assigns against, and
hold all of them harmless from, (a) all liabilities, obligations, losses,
damages, judgments, claims, deficiencies, penalties, taxes and other charges
incurred by Distributor arising out of or resulting from Manufacturer's perfor
mance of Manufacturer's obligations under this Agreement, including, but not
limited to, claims under product warranty, product liability or infringements on
Patents and Trademarks, or from any default in the performance by Manufacturer
of Manufacturer's obligations hereunder and (b) all costs and expenses
reasonably related to the foregoing, including attorneys', accountants' and
expert witnesses' fees, costs of investigations, court costs and other
litigation expenses.

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                                       -6-

<PAGE>   10

4.  OBLIGATIONS OF DISTRIBUTOR.

    4.1 SALES OF PRODUCTS. Distributor will use commercially reasonable means
during the Term to actively promote, sell and distribute the Products within the
Territory.

    4.2 CONDUCT OF SALES ACTIVITIES; QUALIFICATION TO DO BUSINESS. Distributor
shall conduct all sales activity in connection with the Products in a lawful
manner, consistent with commercially reasonable standards of fair trade, fair
competition and business ethics.

    4.3 CONFIDENTIAL INFORMATION. During the Term, Distributor shall hold in
confidence and not use for any purpose or disclose to any person except as
otherwise reasonably required to perform its obligations hereunder, any
proprietary secret or confidential information relating to Manufacturer or the
Products, Manufacturer's marketing activities, processes, Products, machinery,
apparatus or trade secrets or any other confidential information given to,
obtained or learned by Distributor, its agents or employees in the course of or
as a result of performing its obligations under this Agreement (the
"Manufacturer Confidential Information"). Distributor shall instruct its
employees of the obligation of confidence imposed by this Agreement. The
obligations of confidentiality shall not apply to any information that: (a) was
known by Distributor at the time of receipt; (b) was in the public domain at the
time of receipt; (c) becomes public through no fault of Distributor; (d)
Distributor legitimately learns from third parties who are under no obligation
of confidentiality with respect to the information, or; (e) is required by
applicable law to be divulged.

    4.4 INDEMNIFICATION BY DISTRIBUTOR. Distributor shall indemnify
Manufacturer, its officers, directors, employees, agents and assigns against,
and hold all of them harmless from, (a) all liabilities, obligations, losses,
damages, judgments, claims, deficiencies, penalties, taxes and other charges
incurred by Manufacturer arising out of or resulting from Distributor's
performance of Distributor's obligations under this Agreement or from any
default in the performance by Distributor of Distributor's obligations hereunder
and (b) all costs and expenses reasonably related

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                                       -7-

<PAGE>   11

to the foregoing, including attorneys', accountants' and expert witnesses' fees,
costs of investigations, court costs and other litigation expenses.

5. REPRESENTATIONS AND WARRANTIES OF THE PARTIES.

    5.1 REPRESENTATIONS AND WARRANTIES OF MANUFACTURER. Manufacturer hereby
represents and warrants to Distributor as follows:

            (a) Manufacturer is duly organized, validly existing and in good
standing under the Laws of South Carolina.

            (b) This Agreement has been duly executed and delivered by
Manufacturer and constitutes its legal, valid and binding obligation enforceable
in accordance with the terms of this Agreement. Manufacturer has full power and
authority, corporate or otherwise, to enter into and deliver this Agreement and
perform the transactions described herein.

            (c) All consents, approvals, resolutions, authorizations, actions or
orders, including those which must be obtained from governmental agencies or
authorities, required of Manufac turer for the authorization, execution and
delivery of, and for the performance by Manufacturer of the obligations set
forth in this Agreement have been obtained.

            (d) This Agreement and Manufacturer's fulfillment of and compliance
with this Agreement's terms and provisions hereof do not (1) conflict with or
violate any (A) judicial or administrative order, award, judgment or decree
applicable to Manufacturer, (B) any term, condition or provision of the
corporate charter, by-laws or regulations governing the organization or
existence of Manufacturer, or (C) any instrument, mortgage, agreement, contract
or restriction to which Manufacturer is a party, or by which it is bound, or (2)
require the approval, consent or authorization of any court, tribunal or
judicial authority, or any creditor of Manufacturer, or any other person or
entity.

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                                       -8-

<PAGE>   12

            (e) Manufacturer is not under any legal obligation, requirement or
restriction to any competitor of Distributor or others that might conflict in
any manner with the terms of this Agreement or the performance of Manufacturer's
obligations hereunder.

    5.2 REPRESENTATIONS AND WARRANTIES OF DISTRIBUTOR. Distributor hereby
represents and warrants to Manufacturer as follows:

            (a) Distributor is duly organized, validly existing and in good
standing under the Laws of the State of Delaware.

            (b) This Agreement has been duly executed and delivered by
Distributor and constitutes its legal, valid and binding obligation enforceable
in accordance with the terms of this Agreement. Distributor has full power and
authority, corporate or otherwise, to enter into and deliver this Agreement and
perform the transactions described herein.

            (c) All consents, approvals, resolutions, authorizations, actions or
orders, including those which must be obtained from governmental agencies or
authorities, required of Distributor for the authorization, execution and
delivery of, and for the performance by Distributor of the obligations set forth
in this Agreement have been obtained.

            (d) This Agreement and Distributor's fulfillment of and compliance
with this Agreement's terms and provisions hereof do not (1) conflict with or
violate any (A) judicial or administrative order, award, judgment or decree
applicable to Distributor, (B) any term, condition or provision of the corporate
charter, by-laws or regulations governing the organization or existence of
Distributor, or (C) any instrument, mortgage, agreement, contract or restriction
to which Distributor is a party, or by which it is bound, or (2) require the
approval, consent or authorization of any court, tribunal or judicial authority,
or any creditor of Distributor, or any other person or entity.

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                                       -9-

<PAGE>   13

            (e) Distributor is not under any legal obligation, requirement or
restriction to any competitor of Manufacturer or others that might conflict in
any manner with the terms of this Agreement or the performance of Distributor's
obligations hereunder.

6. TERM. The term of this Agreement shall commence on the date hereof and expire
on the third anniversary of such date, unless terminated sooner as provided in
this Agreement (the "Initial Term"), and shall automatically be renewed for
consecutive renewal periods of three years ("Successive Terms") unless either
party delivers notice at least 60 days prior to the expiration of the Initial
Term or any Successive Term of the notifying party's intent not to renew the
Agreement. Notwithstanding anything to the contrary, the parties agree to a
one-time review of the relationship established under this Agreement after the
first year and, should either party notify the other party of its desire to
terminate this Agreement, to in good faith negotiate terms for winding up the
relationship and terminating this Agreement; provided, however, that this
Agreement shall remain in effect until the terms are agreed upon by the parties.
The Initial Term and each Successive Term for which this Agreement has been
renewed is hereinafter referred to as the "Term."

7.  DEFAULT AND TERMINATION.

    7.1 TERMINATION BY MANUFACTURER WITHOUT NOTICE. Distributor shall be in
default under this Agreement, and all rights granted Distributor under this
Agreement (except for those rights and obligations set forth in Section 8) shall
automatically terminate without notice to Distributor if:

            (a) Distributor makes a general assignment for the benefit of
creditors;

            (b) A petition in bankruptcy is filed by Distributor or such a
petition is filed against and consented to by Distributor and remains in effect
for at least 60 days;

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                                      -10-

<PAGE>   14

            (c) A bill in equity or other proceeding for the appointment of a
receiver of Distributor or any custodian for Distributor's business or assets is
filed and consented to by Distributor and remains in effect for at least 60
days; and

            (d) A proceeding for the composition with creditors under any state
or federal law should be instituted by or against Distributor and remains in
effect for at least 60 days.

    7.2 TERMINATION BY MANUFACTURER WITH NOTICE. Distributor shall be in default
and Manufacturer may terminate this Agreement and all rights granted Distributor
under this Agreement (except for those rights and obligations set forth in
Section 8) upon delivery of notice to Distributor upon the occurrence of any of
the following events:

            (a)  If Distributor ceases to operate or otherwise abandons its
business; or

            (b) If Distributor materially fails to perform any of its
obligations under this Agreement and fails to remedy such deficiency within 30
days, or such longer period as applicable law may require, after its receipt
from Manufacturer of a notice, which specifies the deficiencies and lists the
steps that must be taken by Distributor to correct such deficiency.

    7.3 TERMINATION BY DISTRIBUTOR WITHOUT NOTICE. Manufacturer shall be in
default under this Agreement, and all rights granted Manufacturer under this
Agreement (except for those rights and obligations set forth in Section 8) shall
automatically terminate without notice to Manufacturer if:

            (a) Manufacturer makes a general assignment for the benefit of
creditors;

            (b) A petition in bankruptcy is filed by Manufacturer or such a
petition is filed against and consented to by Manufacturer and remains in effect
for at least 60 days;

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                                      -11-

<PAGE>   15

            (c) A bill in equity or other proceeding for the appointment of a
receiver of Manufacturer or any custodian for Manufacturer's business or assets
is filed and consented to by Span America and remains in effect for at least 60
days; and

            (d) A proceeding for the composition with creditors under any state
or federal law should be instituted by or against Manufacturer and remains in
effect for at least 60 days.

    7.4 TERMINATION BY DISTRIBUTOR WITH NOTICE. Manufacturer shall be in default
and Distributor may terminate this Agreement, and all rights granted Distributor
under this Agreement (except for those rights and obligations set forth in
Section 8) upon delivery of notice to Manufacturer upon the occurrence of any of
the following events:

            (a) If Manufacturer ceases to operate or otherwise abandons its
business; or

            (b) If Manufacturer materially fails to perform any of its
obligations under this Agreement and fails to remedy such deficiency within 30
days or such longer period as applicable law may require, after its receipt from
Distributor of a notice, which specifies the deficiencies and lists the steps
that must be taken by Manufacturer to correct such deficiency.

8. RIGHTS AND OBLIGATIONS UPON TERMINATION OF AGREEMENT . Upon early termination
or expiration of this Agreement, all orders for Products that were accepted by
Manufacturer prior to termination or expiration shall be binding on the parties.
Upon early termination or expiration of this Agreement, Manufacturer may
negotiate with Distributor for the repurchase of any remaining Products held by
Distributor at the time of termination or expiration. Notwithstanding the
foregoing, in the event the Manufacturer does not repurchase the Products in
Distributor's possession within 15 days following the termination or expiration
of this Agreement for any reason, Distributor shall have the right to sell the
remaining inventory of the Products for 12 months. Distributor shall also have
the right to use the Patents and Trademarks and Manufacturer Confidential
Information associated with the Products during this period.

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<PAGE>   16

9. INDEPENDENT CONTRACTOR RELATIONSHIP. Distributor agrees that, regarding all
matters relating to this Agreement, it shall be deemed to be an independent
contractor and shall bear all of its own expenses in connection with this
Agreement. Distributor shall have no authority, whether express or implied, to
assume or create any obligation on behalf of Manufacturer nor shall Distributor
issue or cause to be issued any quotation or draft of any letters or documents
over the name of Manufacturer, but rather shall use its own name for such
purposes. Nothing contained in this Agreement shall be construed to (a) give
either party the power to direct and control the day-to-day activities of the
other, (b) constitute the parties as partners, joint venturers, co-owners or
otherwise as participants in a joint or common undertaking, or (c) constitute
Distributor, its agents or employees as the agents or employees of Manufacturer
or grant them any power or authority to act for, bind or otherwise create or
assume any obligation on behalf of Manufacturer for any purpose whatever.

10.  MISCELLANEOUS PROVISIONS.

    10.1 FORCE MAJEURE. The performance of each party's obligations under this
Agreement is subject to all contingencies beyond the control of the party or its
suppliers, including force majeure, strikes, labor disputes, floods, fire, civil
commotion, embargoes, quotas, shortage of labor, or government action, including
price controls, currency controls, and the parties accordingly are relieved of
any obligation to each other for damages that may result from such
contingencies; provided, however, that the parties shall perform their
obligations to the maximum extend and as soon as possible.

    10.2 NOTICES. All notices, requests, demands and other communications
required or permitted to be given or made under this Agreement shall be in
writing, and shall be deemed to have been given (a) on the date of personal
delivery or transmission by confirmed facsimile transmission, or (b) on the
third business day following the date of deposit in the United States mail,
postage prepaid, by registered or certified mail, return receipt requested, or
(c) on the first business day following the date of delivery to a
nationally-recognized overnight courier service,

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<PAGE>   17

in each case, addressed as follows, or to such other person or entity as either
party shall designate by notice to the other in accordance herewith:

                                If to Manufacturer:   Jim Ferguson, President
                                                      Span-America
                                                      70 Commerce Center
                                                      Greenville, S.C. 29615

                                If to Distributor:    Christian F. Rapp
                                                      Louisville Bedding Company
                                                      10400 Bunsen Way
                                                      Louisville, KY  40299

    10.3 ENTIRE AGREEMENT; AMENDMENT. This Agreement contains the entire
understanding between the parties regarding its subject matter. It supersedes
all prior or contemporaneous written or oral negotiations and agreements between
them regarding its subject matter. This Agreement may be amended only in
writing, signed by Manufacturer and Distributor.

    10.4 SEVERABILITY. If any provision of this Agreement is determined to be
invalid or unenforceable, the provision held invalid or unenforceable shall be
deemed to be severable from the remainder of the Agreement and shall not cause
the invalidity or unenforceability of the remainder of the Agreement.

    10.5 ASSIGNABILITY. Neither this Agreement, nor any of the rights or duties
of either party hereunder, may be assigned by either of the parties hereto
without prior written consent of the other party. Any merger, reorganization or
consolidation of Distributor shall not be deemed an assignment.

    10.6 NO IMPLIED WAIVERS. No waiver by either party of any failure of the
other party to keep or perform any provision, covenant or condition of this
Agreement shall be deemed to be a waiver of any preceding or succeeding breach
of the same provision or a waiver of any other provision, covenant or condition.
All rights and remedies granted herein or referred to in this

                                                                           DRAFT
                                                                  APRIL 27, 1999

                                      -14-

<PAGE>   18

Agreement are cumulative. If any party resorts to any one remedy, it shall not
be precluded from resorting to any other right or remedy provided it by law.

    10.7 GOVERNING LAW. This Agreement, and the parties' respective rights
hereunder, shall be governed exclusively by, and construed and enforced in
accordance with, the Laws of the Commonwealth of Kentucky.

    10.8 CONSTRUCTION AND INTERPRETATION OF THE AGREEMENT.

            (a) All captions in this Agreement are intended solely for the
convenience of the parties, and none shall be deemed to affect the meaning or
construction of any provision hereof.

            (b) All references herein to the masculine, neuter, or singular
shall be construed to include the masculine, feminine, neuter, or plural, where
applicable.

            (c) When used in this Agreement, the word "including" shall have its
normal, common meaning and any list of items following such word shall not be
deemed to represent a complete list of the contents of the referent of the
subject.

    10.9 COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

    IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
date first written above.

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                                                                  APRIL 27, 1999

                                      -15-

<PAGE>   19

                                            LOUISVILLE BEDDING COMPANY

                                            By: /s/ Christian H. Rapp
                                                --------------------------------
                                            Title: Sr. V.P. & CFO
                                                   -----------------------------
                                                        ("Distributor")

                                            SPAN-AMERICA MEDICAL SYSTEMS, INC.

                                            By: /s/ James D. Ferguson
                                                --------------------------------
                                            Title: President/CEO
                                                   -----------------------------
                                                         ("Manufacturer")

                                                                           DRAFT
                                                                  APRIL 27, 1999

                                      -16-

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