Document:

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                                                                   EXHIBIT 10.26

We have omitted certain portions of this document and filed them separately
with the Commission. These portions are marked with an asterisk (*).

                  SOFTWARE LICENSING AND DISTRIBUTION AGREEMENT

         This Software Licensing and Distribution Agreement ("Agreement") is
made by and between HealthStream, Inc., a Tennessee corporation having its
principal place of business at 209 10th Avenue South, Suite 450, Nashville,
Tennessee 37203 ("HealthStream") and MedicaLogic, Inc., having its principal
place of business at 20500 N.W. Evergreen Parkway, Hillsboro, OR 97124
("Distributor").

                                   BACKGROUND

         WHEREAS, Distributor delivers Internet healthcare services targeted at
the healthcare community and consumers among others;

         WHEREAS, HealthStream has developed and marketed and continues to
develop and market a computer-based education system known as the Training
Navigator(R) ("T.NAV(R)") that delivers and monitors World Wide Web based
content;

         WHEREAS, Distributor and HealthStream wish to enter into a cooperative
effort to 1) deploy HealthStream branded educational offerings utilizing
T.NAV(R) technology and Distributor's distribution channels and 2) market the
goods and services incorporated therein;

         WHEREAS, Distributor wishes to acquire a license and HealthStream has
agreed to grant a license to Distributor for the utilization of T.NAV(R) with
Distributor's Internet healthcare services;

         WHEREAS, Distributor and HealthStream wish to provide appropriate
consideration for those efforts that each party has agreed to undertake;

         WHEREAS, Distributor and HealthStream each acknowledge the sufficiency
and adequacy of the value, concessions, and recitations set forth herein;

         NOW THEREFORE, Distributor and HealthStream agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

For purposes of this Agreement, the terms below shall have the following
meanings:

1.1.     "Course" means healthcare related Internet based curricula designed to
         be delivered by T.NAV(R).

1.2.     "Distributor" means MedicaLogic, Inc. and any affiliated entity of
         Distributor.

1.3.     "Distributor Courses" means interactive courses that are the
         proprietary property of Distributor including training and education
         content including, but not limited to OSHA and JCAHO mandated training,
         continuing medical education, and office training.

1.4.     "Effective Date" means the later of the dates on which the parties sign
         this Agreement.

1.5.     "HealthStream" means HealthStream, Inc. and any Subsidiary of
         HealthStream, Inc.

1.6.     "HealthStream Courses" means interactive courses that are the
         proprietary property of HealthStream or Third Party Content including
         training and educational content including, but not limited to OSHA and
         JCAHO mandated training, continuing medical education, and office
         training.

1.7.     "Internet" means the international network of computers and computer
         networks accessible by the public at large of which the World Wide Web
         is a subset.

1.8.     "Intranet" means an internal network protected from unauthorized users
         by a firewall and accessible only by individuals within the
         organization serving the network.

1.9.     "Launch Date" means the date on which the co-branded site becomes
         available to users via www.medicalogic.com, or its successor website.

1.10.    "Net Revenue" means gross revenue derived by Distributor or
         HealthStream from Transactions Fees less discounts, rebates, and
         refunds.

                                                    Distributor and HealthStream
                                                                    Page 1 of 13
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1.11.    "Subsidiary" means a company in which, on a class-by-class basis, more
         than fifty percent (50%) of the stock entitled to vote for the election
         of directors is owned or controlled by another company, but only so
         long as such ownership or control exists.

1.12.    "Third Party Content" means interactive content that is the proprietary
         property of a third party to this Agreement.

1.13.    "T.NAV(R)" is a registered trademark of HealthStream and is a computer
         based training product that delivers and monitors World Wide Web based
         content.

1.14.    "T.NAV(R)" means HealthStream's computer based training product that
         delivers and monitors World Wide Web based Content. T.NAV(R) is
         available in multiple configurations, each containing common core
         functionality with unique features applicable for a given application's
         distribution and access requirements, e.g. Internet eCommerce,
         Intranet, local area networks, etc. T.NAV(R) is a registered trademark
         of HealthStream. T.NAV(R) is also branded as Training Navigator(R), a
         registered trademark of HealthStream.

1.15.    "Transaction Fees" means fees received by HealthStream for HealthStream
         Courses or Distributor Courses delivered over the Internet via the
         T.NAV(R) on Distributor's World Wide Web site.

                                    ARTICLE 2

                             STRATEGIC RIGHTS GRANTS

2.1. During the term of this Agreement, Distributor shall:

         2.1.1.   include on Distributor's World Wide Web site a logo of the
                  HealthStream trademark and a hyperlink to the HealthStream
                  section of Distributor's World Wide Web site; and

         2.1.2.   work closely with HealthStream to develop a specific promotion
                  plan within ninety (90) days of the Effective Date, which will
                  include a minimum of one (1) marketing initiative per quarter.
                  Marketing initiatives may include, but are not limited to,
                  industry trade shows and exhibitions, seminars, direct
                  mailings, advertising in third-party publications, online
                  banner advertisement placements, and press releases. The
                  parties will work together in good faith to prepare a mutually
                  acceptable press release to announce this Agreement within
                  five (5) days of the Effective Date. Distributor will include
                  HealthStream in the marketing campaign for MedicaLogic.com's
                  member services launch. Distributor will include the
                  HealthStream name and, in its sole discretion and where it
                  deems appropriate, will include the use of the HealthStream
                  trademark logo on all Distributor marketing materials that
                  reference the Courses and education services being provided by
                  HealthStream.

2.2.     During the term of this Agreement, HealthStream shall:

         2.2.1.   include on the partners page of its World Wide Web site a logo
                  of the Distributor trademark and a hyperlink to the
                  Distributor's World Wide Web site;

         2.2.2.   not include hyperlinks on the co-branded Web site to third
                  parties that directly compete with Distributor;

         2.2.3.   provide standard Personalization for Distributor, as defined
                  in Exhibit A;

         2.2.4.   work with Distributor to provide a mutually agreeable login
                  procedure for Distributor's users to access T.NAV, taking into
                  consideration Distributor's security and privacy needs,
                  HealthStream's new user registration needs and provision of an
                  overall good user experience, among other things; and

                                                    Distributor and HealthStream
                                                                    Page 2 of 13
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         2.2.5.   work closely with Distributor to develop the specific
                  promotion plan described in Section 2.1.2 herein within ninety
                  (90) days of the Effective Date, which will include a minimum
                  of one (1) marketing initiative per quarter. Marketing
                  initiatives may include, but are not limited to, industry
                  trade shows and exhibitions, seminars, direct mailings,
                  advertising in third party publications, online banner
                  advertisement placements, and press releases. The parties will
                  work together in good faith to prepare a mutually acceptable
                  press release to announce this Agreement within five (5) days
                  of the Effective Date.

                                    ARTICLE 3

                                 LICENSE GRANTS

3.1.     HealthStream grants the Distributor non-exclusive, royalty-free,
         worldwide rights for T.NAV(R) to deliver HealthStream Courses over the
         Internet.

3.2.     Subject to the payment of the consideration set forth in Article 4,
         Distributor grants HealthStream non-exclusive worldwide rights to
         provide and host HealthStream Courses and Third Party Content and
         education services on the co-branded portion of Distributor's World
         Wide Web site, as determined by Distributor.

3.3.     Any and all rights not expressly granted by either of the parties to
         the other are reserved by the respective party claiming reservation of
         that right.

                                    ARTICLE 4

                                PRICE AND PAYMENT

4.1.     During the term of this Agreement, HealthStream shall pay to
         Distributor * of all Net Revenue derived from Transaction Fees. If the
         number of Distributor-referred HealthStream new users exceeds * by the
         first anniversary of the Launch Date, then HealthStream will pay
         Distributor * of all Net Revenue derived from the Transaction Fees for
         the * new user and each additional new user.

4.2.     HealthStream agrees to deliver monthly sales statements that detail Net
         Revenue and payment according to the percentages outlined in this
         Article 4 to Distributor within forty five (45) days after the end of
         each calendar month. These monthly reports shall indicate the total
         number of Transactions for which either party derives revenue.
         HealthStream shall submit monthly reports even if no royalties or other
         amounts are due for such month. A monthly finance charge based on an
         annual rate of prime plus 2% will be assessed on all amounts that are
         paid later than forty five (45) days after the end of the last month.

4.3.     Distributor and HealthStream will meet as necessary to review pricing,
         discounting policy and the rationale behind any discounts granted for
         HealthStream Courses and HealthStream Intranet products and services.

                                    ARTICLE 5

                                INDEMNIFICATION

5.1.     HealthStream represents and warrants that to the best of its knowledge:

         5.1.1.   T.NAV(R) does not infringe any copyright or patent enforceable
                  under the laws of any country; and

         5.1.2.   T.NAV(R) does not violate the trade secret rights of any third
                  party; and

         5.1.3.   HealthStream is the sole proprietor of the HealthStream
                  Courses and owns the copyright or otherwise has secured the
                  appropriate rights by license or otherwise to publish the
                  HealthStream Courses and Third-Party Content; and

                                                    Distributor and HealthStream
                                                                    Page 3 of 13
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         5.1.4.   HealthStream has full power and authority, free of any rights
                  of any nature by any other person, to enter into this
                  Agreement and to grant the rights that are granted to
                  Distributor in this Agreement.

5.2.     HealthStream agrees to indemnify, hold harmless, and defend Distributor
         from any and all damages, costs, and expenses, including reasonable
         attorneys' fees, incurred in connection with a claim that constitutes a
         breach of the warranties set forth in Section 5.1 (hereinafter claims
         under Subsections 5.1.1 through 5.1.4 shall collectively be referred to
         as "Infringement Claims"); provided, HealthStream is notified promptly
         in writing of an Infringement Claim and has sole control over its
         defense or settlement, and Distributor provides reasonable assistance,
         at HealthStream's expense, in the defense of the same.

5.3.     HealthStream shall have no liability for any Infringement Claim based
         on Distributor's:

         5.3.1.   use or distribution of T.NAV(R) after HealthStream's written
                  notice that Distributor should cease use or distribution of
                  T.NAV(R) due to an Infringement Claim, or

         5.3.2.   combination of T.NAV(R) with a non-HealthStream program or
                  data if such Infringement Claim would have been avoided by the
                  exclusive use of T.NAV(R).

5.4.     For all Infringement Claims arising under Section 5.3, Distributor
         agrees to indemnify and defend HealthStream from and against all
         damages, costs, and expenses, including reasonable attorneys' fees but
         only to the extent such continued use or combination by Distributor is
         the cause of such Infringement Claim or additional damages. In the
         event HealthStream notifies Distributor that it should cease
         distribution of T.NAV(R) due to an Infringement Claim, Distributor may
         terminate this Agreement.

5.5.     Except to the extent that Distributor is responsible under Section 5.6
         herein, HealthStream shall also indemnify, hold harmless and defend
         Distributor from and against any and all claims, liabilities, losses,
         damages, expenses and costs (including reasonable attorneys' fees and
         costs) arising out of or relating to: (a) a breach of HealthStream's
         representations or warranties under this Agreement; (b) the use and
         functionality of the HealthStream Courses and Third Party Content as it
         interfaces with the co-branded portion of Distributor's World Wide Web
         site; (c) other information supplied or managed by HealthStream for the
         co-branded portion of Distributor's World Wide Web site; (d) any
         services or products available under HealthStream's World Wide Web site
         not provided by Distributor under this Agreement and (e) the negligence
         or intentional wrongdoing of HealthStream. HealthStream will pay
         resulting costs, damages and legal fees finally awarded in such action
         in a court or in a settlement which are attributable to such claim
         provided that: (i) Distributor promptly notifies HealthStream in
         writing of any such claim; (ii) HealthStream has sole control of the
         defense and all related settlement negotiations, and (iii) Distributor
         cooperates with HealthStream, at HealthStream's expense, in defending
         or settling such claim.

5.6.     Except to the extent that HealthStream is responsible under Section 5.5
         herein, Distributor shall indemnify, hold harmless and defend
         HealthStream from and against any and all claims, liabilities, losses,
         damages, expenses and costs (including reasonable attorneys' fees and
         costs) arising out of or relating to: (a) a breach of Distributor's
         representations or warranties under this Agreement; (b) any content
         provided by Distributor to HealthStream for use in the co-branded
         portion of the Distributor's World Wide Web site in accordance with
         this Agreement; (c) any services or products available under
         Distributor's World Wide Web site not provided by HealthStream under
         this Agreement; and (d) the negligence or intentional wrongdoing of
         Distributor. Distributor will pay resulting costs, damages and legal
         fees finally awarded in such action in a court or in a settlement that
         are attributable to such claim provided that: (i) HealthStream promptly
         notifies Distributor in writing of any such claim; (ii) Distributor has
         sole control of the defense and all related settlement negotiations,
         and (iii) HealthStream cooperates with Distributor, at Distributor 's
         expense, in defending or settling such claim.

                                                    Distributor and HealthStream
                                                                    Page 4 of 13
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                                    ARTICLE 6

                        INTELLECTUAL PROPERTY PROVISIONS

6.1.     Both parties will cause to appear on all marketing or promotional
         materials concerning the healthcare related training courses, the other
         party's copyright, trademark, or patent notices, as appropriate,
         subject to such parties trademark usage guidelines, if any.

6.2.     The parties agree that ownership of any invention conceived or
         developed during the course of this Agreement shall vest in accordance
         with the patent rules governing inventorship.

6.3.     To the extent that source code is written by either party, title shall
         vest in the party who has written such code.

6.4.     Each party is responsible for protecting, documenting, and maintaining
         its own intellectual property. Except as expressly set forth herein,
         this Agreement does not grant either party any proprietary rights of
         any type in the other party's materials, services or content.

6.5.     Both parties acknowledge that, except as otherwise provided herein,
         each party owns and retains all right, title and interest in and to its
         own content provided to the other party.

6.6.     HealthStream acknowledges that Distributor owns and retains all right,
         title and interest in and to Distributor's World Wide Web site and all
         Distributor's products, services and derivatives thereof arising from
         the performance of this Agreement.

6.7.     Distributor acknowledges that, except for the license granted to
         Distributor in Section 3.1 herein, HealthStream owns and retains all
         right, title and interest in and to T.NAV(R), the T.NAV(R) source code,
         and the T.NAV(R) object code.

                                    ARTICLE 7

                  PROHIBITION AGAINST ASSIGNMENT AND SUBLICENSE

This Agreement, and any rights or obligations hereunder, shall not be assigned
or sublicensed (except as permitted in this Article 7) by either party.
Notwithstanding the foregoing, this Agreement may be assigned to a successor in
interest to all of a party's assets or substantially all of a party's assets and
shall inure to the benefit of and be binding upon successors or purchasers of
substantially all of either party's assets.

                                    ARTICLE 8

                                TERM OF AGREEMENT

Provided this Agreement has been properly executed by an officer of Distributor
and by an officer of HealthStream, the term of this Agreement ("Term") shall run
from the Effective Date until one (1) year after the Launch Date, and thereafter
be automatically extended for additional one (1) year periods unless either
party provides thirty (30) days written notice of termination to the
non-terminating party.

                                    ARTICLE 9

                             DEFAULT AND TERMINATION

9.1.     The non-defaulting party may terminate this Agreement in its entirety
         if any of the following events of default occur:

         9.1.1.   if the defaulting party materially fails to perform or comply
                  with this Agreement or any provision hereof;

         9.1.2.   if the defaulting party fails to strictly comply with the
                  provisions of Article 12, 17.1, or makes an assignment in
                  violation of Article 7;

                                                    Distributor and HealthStream
                                                                    Page 5 of 13
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         9.1.3.   if a party becomes insolvent or admits in writing its
                  inability to pay its debts as they mature, or makes an
                  assignment for the benefit of creditors;

         9.1.4.   if a petition under any foreign, state, or United States
                  bankruptcy act, receivership statute, or the like, as they now
                  exist, or as they may be amended, is filed by a party; or

         9.1.5.   if such a petition is filed by any third party, or an
                  application for a receiver of a party is made by anyone and
                  such petition or application is not resolved favorably or
                  discharged to such party within ninety (90) days.

9.2.     Termination due to a breach of Articles 7 or 12 or 17.1, shall be
         effective upon notice. In all other cases termination shall be
         effective sixty (60) days after notice of termination to the defaulting
         party if the defaults have not been cured within such sixty (60) day
         period. Unless otherwise stated in this Agreement, the rights and
         remedies of the parties provided herein shall not be exclusive and are
         in addition to any other rights and remedies provided by law or this
         Agreement.

                                   ARTICLE 10

                          OBLIGATIONS UPON TERMINATION

10.1.    From and after termination or expiration of this Agreement, Distributor
         shall not employ T.NAV(R) or any portion thereof that is owned by
         HealthStream, as part or portion of any product that Distributor may
         use, sell, assign, lease, license, or transfer to third parties. Both
         parties shall cease and desist from all use of the other party's names
         and associated trademarks and, upon request, deliver to the other party
         or its authorized representatives or destroy all material upon which
         those names and the associated trademarks appear.

10.2.    Articles 5, 6, 10, 11, 13, 14, Section 15.1, and Article 17 shall
         survive termination or expiration of this Agreement.

                                   ARTICLE 11

                WARRANTIES, LIMITATION OF LIABILITY AND REMEDIES

HealthStream represents and warrants that T.NAV(R) shall operate and perform
according to specifications included herein. EXCEPT AS EXPRESSLY SET FORTH IN
THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER WARRANTIES. ANY AND ALL OTHER
IMPLIED WARRANTIES OF ANY KIND WHATSOEVER, INCLUDING THOSE FOR MERCHANTABILITY
AND/OR FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY EXCLUDED. NEITHER PARTY
SHALL BE LIABLE FOR ANY CONSEQUENTIAL (INCLUDING WITHOUT LIMITATION LOST
PROFITS, UNLIQUIDATED INVENTORY, ETC.), INCIDENTAL, INDIRECT, ECONOMIC, OR
PUNITIVE DAMAGES EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES. EXCEPT FOR BREACH OF THE CONFIDENTIALITY AND THE INDEMNITY
PROVISIONS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY'S LIABILITY TO
THE OTHER PARTY FOR DAMAGES ARISING FROM PERFORMANCE OR NONPERFORMANCE UNDER
THIS AGREEMENT SHALL EXCEED IN THE AGGREGATE THE TOTAL AMOUNTS PAID TO
DISTRIBUTOR BY HEALTHSTREAM DURING THE 12 MONTH PERIOD PRIOR TO SUCH CLAIM.

                                   ARTICLE 12

                              SECURITY AND PRIVACY

12.1.    The parties acknowledge that Distributor must at all times provide a
         private and secure web site and linking environment for users of
         Distributor's services including the co-branded site and links.
         HealthStream may gather information from users of Distributor's
         services in accordance with HealthStream's privacy statement located on
         HealthStream's Web site and attached hereto as

                                                    Distributor and HealthStream
                                                                    Page 6 of 13
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         Exhibit C and incorporated herein by this reference. Other than as set
         forth in Exhibit C hereto, security measures used in association with
         the co-branded site shall be consistent with the guidelines stated in
         Distributor's security white paper attached hereto as Exhibit B and
         incorporated herein by this reference. At a minimum, the parties agree
         to implement security measures consisting of digital certificates and
         SSL encryption or both, as applicable. Where third-party links outside
         the secure co-branded site exist, Distributor will have the option to
         have those links removed with HealthStream's mutual consent. Due to
         security and privacy risks posed by the inclusion of third-party links
         outside the secure co-branded site, Distributor reserves the right to
         implement a warning screen or other form of alert to be presented to
         Distributor's users as they move from the Distributor's site to the
         co-branded site and HealthStream agrees to cooperate and assist
         Distributor with such implementation, if reasonably required.
         Distributor, in consultation with HealthStream, shall have sole
         discretion over the content and form of such warning. The parties also
         agree as follows:

         12.1.1.  Other than for the limited business purposes outlined in
                  Exhibit C attached hereto, HealthStream shall in no way
                  attempt to ascertain, store, or collect any information
                  relating to the identity of Distributor's users and the
                  Distributor's applications being run by these users.
                  Prohibited actions, other than as outlined in Exhibit C
                  attached hereto, include, but shall not be limited to:

                  (i)      any investigation of the Distributor user's IP
                           address including, but not limited to, reverse DNS,
                           traceroute, and whois information;

                  (ii)     requesting from the Distributor's users, or retrieval
                           (i.e. through system processes), of personal
                           information including, but not limited to, the
                           Distributor's user's e-mail address, mailing address,
                           telephone number, and social security number;

                  (iii)    requesting from the Distributor's user, or retrieval
                           (i.e. through system processes) of any
                           Distributor-specific authentication information
                           including, but not limited to, user identifications
                           and passwords, and digital certificates; and

                  (iv)     requesting or retrieval (i.e. through system
                           processes) of any Distributor cookies or other system
                           process information including, but not limited to,
                           Java scripts and parent frame content.

12.2.    Distributor, or a third-party entity retained by Distributor, shall be
         entitled to audit the security measures implemented for the co-branded
         site by HealthStream to determine compliance with the provisions of
         this Article 12. If it is determined by audit or otherwise, that
         HealthStream is not in compliance with the provisions of this section,
         Distributor may terminate this Agreement immediately.

                                   ARTICLE 13

                                     AUDITS

13.1.    During the term of this Agreement, the parties hereto agree to keep all
         usual and proper records and books of account and all usual and proper
         entries relating to each T.NAV(R) licensed consistent with generally
         accepted accounting principles.

13.2.    HealthStream may cause an audit to be made of the applicable
         Distributor records that pertain to this Agreement for the sole purpose
         of verifying royalty reports issued by Distributor to HealthStream and
         prompt adjustment shall be made to compensate for any errors or
         omissions disclosed by such audit. Any such audit shall be conducted by
         an independent certified public

                                                    Distributor and HealthStream
                                                                    Page 7 of 13
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         accountant of national stature (e.g., Deloitte) selected by
         HealthStream (other than on a contingent fee basis) and shall be
         conducted during regular business hours at Distributor's offices and in
         such a manner as not to interfere with Distributor's normal business
         activities. Any such audit shall occur no more than once per calendar
         year and within six (6) months of the end of the calendar year.
         HealthStream shall pay for any such audit unless Material discrepancies
         are disclosed. "Material" shall mean the lesser of Five Thousand
         Dollars (US$5,000.00) or five percent (5%) of the amount that should
         have been reported. If Material discrepancies are disclosed,
         Distributor agrees to pay HealthStream the costs associated with the
         audit not to exceed Five Thousand Dollars (US$5,000.00). The auditor
         shall only disclose the correct data and amounts as called for on the
         royalty reports. The auditor shall be bound by a signed nondisclosure
         agreement in substantial form as the Mutual Confidential Disclosure
         Agreement entered into by the parties to this Agreement on July 28th,
         1999 and the auditor shall treat all information disclosed during the
         course of the audit as confidential information as defined in such
         nondisclosure agreement.

13.3.    Distributor may cause an audit to be made of the applicable
         HealthStream records and facilities for the sole purpose of verifying
         any reports issued by HealthStream to Distributor, and prompt
         adjustment shall be made to compensate for any errors or omissions
         disclosed by such audit. Any such audit shall be conducted by an
         independent certified public accountant of national stature (e.g.,
         Deloitte) selected by Distributor (other than on a contingent fee
         basis) and shall be conducted during regular business hours at
         HealthStream's offices and in such a manner as not to interfere with
         HealthStream's normal business activities. Any such audit shall be paid
         for by Distributor unless Material discrepancies are disclosed.
         "Material" shall mean the lesser of Five Thousand Dollars (US$5,000.00)
         or five percent (5%) of the amount that should have been reported. If
         Material discrepancies are disclosed, HealthStream agrees to pay
         Distributor for the costs associated with the audit not to exceed Five
         Thousand Dollars (US$5,000.00). In no event shall audits be made more
         frequently than annually unless the immediately preceding audit
         disclosed a Material discrepancy. The auditor shall only disclose the
         correct data and amounts as called for on the royalty reports. The
         auditor shall be bound by a signed nondisclosure agreement in
         substantial form as the Mutual Confidential Disclosure Agreement
         entered into by the parties to this Agreement on July 28, 1999 and the
         auditor shall treat all information disclosed during the course of the
         audit as confidential information as defined in such nondisclosure
         agreement.

13.4.    Any statement shall affect neither the right to examine and audit nor
         the right to receive an adjustment to the contrary, appearing on checks
         or otherwise, unless expressly agreed to in writing by the party having
         such right.

13.5.    In the event that either party makes any claim with respect to an
         audit, upon the audited party's written request the party who has
         requested such audit will make available to the audited party the
         records and reports pertaining to such audit prepared by the
         independent auditor who performed such audit.

                                   ARTICLE 14

                              NOTICES AND REQUESTS

All notices, authorizations, and requests in connection with this Agreement
shall be deemed given on the day they are deposited in the U.S. mails, postage
prepaid, certified or registered, return receipt requested, or sent by air
express courier, charges prepaid; and addressed as follows:

DISTRIBUTOR:               MedicaLogic, Inc.
                           Attn:    Jeffrey R. Sang
                           Business Development Manager
                           cc: General Counsel
                           101 Green Street
                           San Francisco, CA 94111

                                                    Distributor and HealthStream
                                                                    Page 8 of 13
<PAGE>   9

HEALTHSTREAM:              HealthStream, Inc.
                           Attn:    Robert H. Laird, Jr.
                           General Counsel
                           209 10th Avenue South
                           Suite 450
                           Nashville, Tennessee 37203

or to such other address as the party to receive the notice or request so
designates by written notice to the other.

                                   ARTICLE 15

                                 CONTROLLING LAW

15.1.    This Agreement shall be construed and controlled by the laws of the
         State of California.

15.2.    Neither this Agreement, nor any terms and conditions contained herein,
         shall be construed as creating a partnership, joint venture or agency
         relationship or as granting a franchise as defined in 16 CFR Section
         436.2(a). The price and payment described in Article 4 of this
         Agreement shall not be construed as a franchise fee.

                                   ARTICLE 16

                                 ATTORNEYS' FEES

If either HealthStream or Distributor employs attorneys to enforce any rights
arising out of or relating to this Agreement, the prevailing party in any
proceeding shall be entitled to recover its reasonable attorneys' fees, costs
and other expenses.

                                   ARTICLE 17

                                     GENERAL

17.1.    All disclosures of proprietary and confidential information in
         connection with this Agreement as well as the contents of this
         Agreement shall be governed by the terms of the Mutual Confidential
         Disclosure Agreement entered into between HealthStream and Distributor
         on July 28, 1999.

17.2.    This Agreement does not constitute an offer by HealthStream and it
         shall not be effective until signed by both parties. Upon execution by
         both parties, this Agreement shall constitute the entire agreement
         between the parties with respect to the subject matter hereof and
         replaces and supplants all prior and contemporaneous communications. It
         shall not be modified except by a written agreement signed on behalf of
         Distributor and HealthStream by their respective duly authorized
         representatives. Unless agreed to in a separate writing signed by both
         parties, any statement appearing as a restrictive endorsement on a
         check or other document which purports to modify a right, obligation or
         liability of either party shall be of no force and effect.

17.3.    If any provision of this Agreement shall be held by a court of
         competent jurisdiction to be illegal, invalid, or unenforceable, the
         remaining provisions shall remain in full force and effect. If this
         Agreement as it relates to any product(s) licensed hereunder shall be
         held by a court of competent jurisdiction to be invalid, illegal, or
         unenforceable or if this Agreement is terminated as to particular
         product(s), this Agreement shall remain in full force and effect as to
         the remaining product(s).

17.4.    No waiver of any breach of any provision of this Agreement shall
         constitute a waiver of any prior, concurrent or subsequent breach of
         the same or any other provisions hereof, and no waiver shall

                                                    Distributor and HealthStream
                                                                    Page 9 of 13
<PAGE>   10

         be effective unless made in writing and signed by an authorized
         representative of the waiving party.

17.5.    The Article headings used in this Agreement and the attached Exhibits
         are intended for convenience only and shall not be deemed to supersede
         or modify any provisions.

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
last date set forth below. All signed copies of this Agreement shall be deemed
originals.

MedicaLogic, Inc.                     HealthStream, Inc.

By: /s/                               By:  /s/ Robert A. Frist, Jr.
   ------------------------------         ---------------------------------
Title: COO                            Title: CEO
      ---------------------------           -------------------------------
Date:  2/8/00                         Date:  2/8/00
      ---------------------------           -------------------------------

                                                    Distributor and HealthStream
                                                                   Page 10 of 13
<PAGE>   11

                                    EXHIBIT A

                              PERSONALIZATION ITEMS

HealthStream's online education Web site and T.NAV systems can be personalized
to reflect Distributor's brand image. The following items are standard elements
of that Personalization:

1.       Left navigation bar light color
2.       Left navigation bar dark color
3.       The color that is the background of the main logo in the upper left
4.       The color for the ad banner section
5.       The light color for the catalog listing
6.       The dark color for the catalog listing
7.       The light color for the Your Menu listing
8.       The dark for the Your Menu listing
9.       The logo to display in the upper left
10.      The name to display in the site (i.e. "Healthstream@medicalogic.com")
11.      The phone number of technical support
12.      The email for tech support
13.      The address for tech support
14.      The first custom link to display
15.      The second custom  link to display
16.      The third custom link to display
17.      The fourth custom link to display
18.      The fifth custom link to display
19.      The people support link to display
20.      Code to pre-populate the discount field
21.      Text to display on page for custom link 1
22.      Text to display for custom link 2
23.      Text to display for custom link 3
24.      Text to display for custom link 4
25.      Text to display for custom link 5
26.      Text to display for the people support link
27.      Default background color
28.      The path and file to call when doing an auto-logoff
29.      The background color for the title bar

                                                    Distributor and HealthStream
                                                                   Page 11 of 13
<PAGE>   12

                                    EXHIBIT B

                        MEDICALOGIC SECURITY WHITE PAPER

                                [INSERT DOCUMENT]

                                                    Distributor and HealthStream
                                                                   Page 12 of 13
<PAGE>   13

                                    EXHIBIT C

                         HEALTHSTREAM PRIVACY STATEMENT

HealthStream University may ask you to register and provide information that
personally identifies you ("Personal Information"), including when you register
for online courses. We use your Personal Information for two primary purposes:

-         To target specific education to you on HealthStream University.
-         To track and manage your continuing education credits.

Although HealthStream University does not provide your e-mail address, phone
number, or other personal information to third parties, we may aggregate
information from all of the HealthStream University users and create reports for
third parties.

To ensure Personal Information you provided to HealthStream University is
correct and current, you may review and update this information at any time at
the Personal Information section of your references. There, you can view and
edit Personal Information you already have given us.

HealthStream University uses cookies to authenticate users. We use cookies to
make sure our users are who they say they are.

A cookie is a small data file that certain Web sites write to your hard drive
when you visit them. A cookie file can contain information such as a user ID
that the site uses to track the pages you've visited. But the only personal
information a cookie can contain is information you supply yourself. A cookie
can't read data off your hard disk or read cookie files created by other sites.

If you've set your browser to warn you before accepting cookies, you will
receive the warning message with each cookie. Your browser needs to accept these
cookies for the HealthStream University site to function properly.

If for some reason you believe HealthStream University has not adhered to these
principles, please notify us by e-mail at webmaster@healthstream.com and we will
use commercially reasonable efforts to promptly determine and correct the
problem.

                                                    Distributor and HealthStream
                                                                   Page 13 of 13<PAGE>   1
                                                                   EXHIBIT 10.27

We have omitted certain portions of this document and filed them separately with
the Commission. These portions are marked with an asterisk (*).

                     JOINT MARKETING AND LICENSING AGREEMENT
                      BETWEEN HEALTHSTREAM & SCRIPPS CLINIC

         This Joint Marketing and Licensing Agreement ("Agreement") is entered
as of November 22, 1999 ("Effective Date") by and between HealthStream, Inc., a
Tennessee corporation having its principal place of business at 209 10th Avenue
South, Suite 450, Nashville, Tennessee 37203 ("HealthStream") Scripps Clinic,
having its principal place of business 10666 North Torrey Pines Road, LaJolla,
California 92037, ("Licensor").

                                   BACKGROUND

         WHEREAS, Licensor is a large multi-specialty medical clinic which has
developed and continues to develop Continuing Medical Education ("CME") content
for Physicians;

         WHEREAS, Licensor conducts an annual Dermatology conference, the next
of which is titled Melanoma 2000: 10th Annual Cutaneous Malignancy Update
("Melanoma 2000 Conference") and will take place in January of 2000;

         WHEREAS, HealthStream has developed and marketed and continues to
develop and market a computer-based education system known as the Training
Navigator ("T.NAV(R)") that delivers and monitors World Wide Web based content;

         WHEREAS, Licensor and HealthStream wish to enter into a cooperative
effort to deploy Licensor's educational offerings utilizing HealthStream's
T.NAV(R) technology on the World Wide Web;

         WHEREAS, HealthStream wishes to acquire a license and Licensor has
agreed to grant a license to HealthStream for the delivery of Scripps' Melanoma
2000 Conference, by HealthStream's T.NAV(R);

         WHEREAS, Licensor and HealthStream wish to provide appropriate
consideration for those efforts that each party has agreed to undertake;

         WHEREAS, Licensor and HealthStream each acknowledge the sufficiency and
adequacy of the value, concessions, and recitations set forth herein;

         NOW THEREFORE, Licensor and HealthStream agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

For purposes of this Agreement, the terms below shall have the following
meanings:

1.1.     "ACCME" means the Accreditation Council for Continuing Medical
         Education.

1.2.     "CME Courses" means those educational courses that have been reviewed
         for continuing education units by an ACCME accredited professional
         organization. Those individuals completing the courses may receive
         credit toward continuing education requirements.

1.3.     "Course" means healthcare related Internet based curricula designed to
         be delivered by T.NAV(R) through HealthStream Sites.

1.4.     "Educational Activity" means a single module of the Education Product,
         specifically, a self-contained lesson consisting of Licensor Content,
         learning objectives, a posttest, and an evaluation. Each individual
         Educational Activity, when properly completed is eligible for CME
         credit.

1.5      "Educational Product" means the adaptation of the Licensor Content into
         Educational Activities contained in the Melanoma 2000 Conference,
         including but not limited to conversion to a format appropriate for
         delivery over the World Wide Web, definition of education objective, a
         post test

                                                        Scripps and HealthStream
                                                                    Page 1 of 11
<PAGE>   2

         and an evaluation form for each segment in accordance with CFCE
         policies and the ACCME Essentials and Guidelines for Accreditation of
         Sponsors of Continuing Medical Education and Standards for Commercial
         Support and Enduring Materials attached as Exhibit B hereto.

1.6      "HealthStream" means HealthStream, Inc. and any Subsidiary of
         HealthStream, Inc.

1.7      "HealthStream Sites" means those HealthStream managed and hosted
         Internet sites that deliver educational and other content via the
         T.NAV(R). HealthStream Sites may be available via the World Wide Web or
         through a private Intranet.

1.8      "Internet" means the international network of computers and computer
         networks accessible by the public at large of which the World Wide Web
         is a subset.

1.9      "Intranet" means an internal network protected from unauthorized users
         by a firewall and accessible only by individuals within the
         organization serving the network.

1.10     "Launch Date" means the date on which the Educational Product becomes
         available to the public on the Internet, not to exceed ninety (90) days
         beyond January 20, 2000, the Melanoma 2000 Conference date.

1.11     "Licensor Content" means the information contained in Scripps' Melanoma
         2000 Conference including, but not limited to text and images that are
         the proprietary property of Licensor that consist of CME in the modules
         listed in Exhibit A or in modules that Licensor develops during the
         Term as defined in Article 9 herein.

1.12     "Net Revenue" means gross revenue derived by HealthStream from
         Transactions Fees less discounts, refunds, and payments to distribution
         partners.

1.13     "Subsidiary" means a company in which, on a class-by-class basis, more
         than fifty percent (50%) of the stock entitled to vote for the election
         of directors is owned or controlled by another company, but only so
         long as such ownership or control exists.

1.14     "T.NAV(R)" means HealthStream's computer based training product that
         delivers and monitors World Wide Web based Content. T.NAV(R) is
         available in multiple configurations, each containing common core
         functionality with unique features applicable for a given application's
         distribution and access requirements, e.g. Internet eCommerce,
         Intranet, local area networks, etc. T.NAV(R) is a registered trademark
         of HealthStream. T.NAV(R) is also branded as Training Navigator(R), a
         trademark of HealthStream.

1.15     "Transactions" means those purchases of Educational Activities by
         customers on HealthStream Sites.

1.16     "Transaction Fees" means fees received by HealthStream for
         Transactions.

                                    ARTICLE 2

                                 LICENSE GRANTS

2.1      Subject to the payment of the consideration set forth in Article 3,
         Licensor grants to HealthStream worldwide license to deliver the
         Educational Product on the World Wide Web.

2.2      Upon notice from Licensor that an Educational Activity is no longer
         appropriate for use because, for example, it contains erroneous or
         outdated information, or in other ways is no longer appropriate for the
         awarding of CME credit, HealthStream shall cease to represent that the
         Educational Activity being so delivered is CME accredited. During the
         term of this agreement, Licensor shall restructure the Licensor
         Educational Activity for CME accreditation at its own expense or shall
         provide an equivalent number of CME hours of content at no expense to
         HealthStream. After this Agreement terminates, HealthStream may, at its
         option and expense,

                                                        Scripps and HealthStream
                                                                    Page 2 of 11
<PAGE>   3
         seek to have Licensor update the Educational Activity. HealthStream may
         also seek permission from Licensor to continue to broadcast the
         Educational Activity without CME credit.

2.3      Licensor shall retain the ownership to all Educational Content,
         including but not limited to, text, images, and audio that have been
         copyrighted by Licensor under permissions and releases granted by the
         authors.

2.4      HealthStream shall retain the copyright to the Educational Activities
         it produces under this agreement.

2.5      Any and all rights not expressly granted by either of the parties to
         the other are reserved by the respective party claiming reservation of
         that right.

                                    ARTICLE 3

                                PRICE AND PAYMENT

3.1      During the Term as defined in Article 9 herein, HealthStream shall pay
         to Licensor * of all Net Revenue derived from Transaction Fees.

3.2      HealthStream agrees to deliver quarterly sales statements that detail
         Net Revenue and payment according to the percentages outlined in this
         Article 3 to Licensor within thirty (30) days after the end of each
         calendar quarter. These quarterly reports shall indicate the total
         number of Transactions for which Licensor derives revenue. HealthStream
         shall submit quarterly reports even if no royalties or other amounts
         are due for such quarter. A monthly finance charge based on an annual
         rate of prime plus 2% will be assessed on all amounts that are paid
         later than thirty (30) days after the end of the last quarter.

                                    ARTICLE 4

                    HEALTHSTREAM RESPONSIBILITIES TO LICENSOR

4.1      HealthStream will designate a project manager with sufficient
         experience and training to resolve issues related to the production,
         review and credentialling issues required by this project.

4.2      HealthStream will fund the costs to develop the Educational Product.

4.3      HealthStream will submit to Licensor a draft version of each
         Educational Activity it has converted to the Web for review and
         approval by Licensor. Licensor will have twenty (20) working days to
         conduct its reviews. Any approvals shall not be unreasonably withheld
         by Licensor.

4.4      HealthStream agrees to make all changes requested by Licensor in a
         timely manner.

4.5      HealthStream will incorporate into each Educational Activity:

         4.5.1    an accreditation statement to be provided by Licensor;

         4.5.2    objectives to be created and provided by Licensor;

         4.5.3    faculty disclosure information about actual or potential
                  conflicts of interest to be provided by Licensor;

         4.5.4    Educational Activity evaluation to be provided by Licensor;
                  and

         4.5.5    a post test to be provided by Licensor.

4.6      HealthStream shall be responsible for issuing to qualified physicians a
         document recognizing the attainment of CME credit. HealthStream shall
         develop a system to bar issuance of such documentation unless the
         participating physician has answered eighty percent (80%) of the post
         test questions correctly.

                                                        Scripps and HealthStream
                                                                    Page 3 of 11
<PAGE>   4

4.7      HealthStream shall maintain a database of all users of the Educational
         Activity and shall provide the following information quarterly to
         Licensor:

         4.7.1    number of users of each Educational Activity;

         4.7.2    demographic information;

         4.7.3    names of physicians who were issued letters of CME
                  accreditation for each Educational Activity; and

         4.7.4    results of evaluations.

4.8      HealthStream shall submit for Licensor approval the format and content
         of advertising, if any, so that Licensor can assure the requirements of
         ACCME Standards For Commercial Support are met. Licensor will have ten
         (10) working days to review and approve the format and content of such
         advertising.

4.9      HealthStream shall submit for Licensor approval all promotional
         activities related to this project. Licensor will have ten (10) working
         days to review and approve such promotional activities.

                                    ARTICLE 5

                    LICENSOR RESPONSIBILITIES TO HEALTHSTREAM

5.1      Licensor will designate a project manager with sufficient experience
         and training to resolve issues related to the production, review and
         credentialling issues required by this project.

5.2      Licensor agrees to accredit each Educational Activity produced under
         this Agreement if, in its sole judgment, Licensor policies and the
         ACCME's Essentials and Guidelines for Accreditation of Sponsors Of
         Continuing Medical Education And Standards For Commercial Support and
         Enduring Materials substantially in the form as in Exhibit B hereto
         have been complied with in all material aspects.

5.3      Licensor agrees to provide initial accreditation for each Educational
         Activity for two (2) years, with one (1) year extensions possible as
         long as, in Licensor's judgment, the material is still current. At its
         sole discretion, in accordance with its responsibilities to the ACCME's
         Essentials and Guidelines for Accreditation of Sponsors Of Continuing
         Medical Education And Standards For Commercial Support and Enduring
         Materials as set forth in Exhibit B hereto, Licensor may determine at
         any time that one or more Educational Activity is no longer appropriate
         for CME accreditation. In the event the Center for Continuing Education
         finds one or more Educational Activities of this Educational Product no
         longer appropriate for CME accreditation, HealthStream agrees to
         withdraw the Educational Activities, in accordance with Article 2.2.

5.4      For each Educational Activity, Licensor shall provide a title,
         objectives, post test, and an evaluation form in a timely fashion.

                                    ARTICLE 6

                           WARRANTIES AND INDEMNITIES

6.1.     Licensor represents and warrants that:

         6.1.1.   Licensor Content does not infringe any copyright or patent
                  enforceable under the laws of any country;

         6.1.2.   Licensor Content does not violate the trade secret rights of
                  any third party; and

                                                        Scripps and HealthStream
                                                                    Page 4 of 11

<PAGE>   5

         6.1.3.   Licensor Content represents the then existing reasonable
                  standards of care.

6.2.     Each party agrees to indemnify, hold harmless, and defend the other
         from any and all damages, costs, and expenses, including reasonable
         attorneys' fees, incurred in connection with a claim which constitutes
         a breach of the warranties set forth in Section 6.1 provided, the
         charged party is notified promptly in writing of a claim and has sole
         control over its defense or settlement, and the party not charged
         provides reasonable assistance in the defense of the same.

6.3.     Licensor shall have no liability for any claim based on HealthStream's:

         6.3.1.   use or distribution of Licensor Content after Licensor's
                  written notice that HealthStream should cease use or
                  distribution of Licensor Content due to a claim, or

         6.3.2.   combination of Licensor Content with a non-Licensor program or
                  data if such claim would have been avoided by the exclusive
                  use of Licensor Content.

6.4.     For all claims arising under Section 6.3, HealthStream agrees to
         indemnify and defend Licensor from and against all damages, costs, and
         expenses, including reasonable attorneys' fees. In the event Licensor
         notifies HealthStream that it should cease distribution of Licensor
         Content due to a claim, HealthStream may terminate this Agreement.

                                    ARTICLE 7

                        INTELLECTUAL PROPERTY PROVISIONS

7.1.     HealthStream will cause to appear on all marketing or promotional
         materials concerning the Licensor Content, Licensor's copyright,
         trademark, or patent notices.

7.2.     The parties agree that ownership for any invention conceived or
         developed during the course of this Agreement shall vest in accordance
         with the patent rules governing inventorship.

7.3.     To the extent that source code is written by either party title shall
         vest in the party who has written such code.

7.4.     Each party is responsible for protecting, documenting, and maintaining
         its own intellectual property. Except as expressly set forth herein,
         this Agreement does not grant either party any proprietary rights of
         any type in the other party's materials, services or Content.

7.5.     Both parties acknowledge that, except as otherwise provided herein,
         each party owns and retains all right, title and interest in and to its
         own Content provided to the other party.

7.6.     HealthStream acknowledges that Licensor owns and retains all right,
         title and interest in and to Licensor Content and all Licensor's
         products and services arising from the performance of this Agreement.

7.7.     Licensor acknowledges that HealthStream owns and retains all right,
         title and interest in and to T.NAV(R) Commerce, the T.NAV(R) Commerce
         source code, the T.NAV(R) Commerce object code, any derivatives of
         T.NAV(R) Commerce and the interface templates designed by HealthStream
         used to present and deliver the Licensor Content.

                                    ARTICLE 8

                  PROHIBITION AGAINST ASSIGNMENT AND SUBLICENSE

This Agreement, and any rights or obligations hereunder, shall not be assigned
or sublicensed (except as permitted in this Article 6) by either party.
Notwithstanding the foregoing, this Agreement may be assigned to a successor in
interest to all of a party's assets or substantially all of a party's assets and
shall inure to

                                                        Scripps and HealthStream
                                                                    Page 5 of 11

<PAGE>   6

the benefit of and be binding upon successors or purchasers of substantially
all of either party's assets.

                                    ARTICLE 9

                                TERM OF AGREEMENT

Provided this Agreement has been properly executed by an officer of Licensor and
by an officer of HealthStream, the term of this Agreement shall run from the
Launch Date until three (3) years after the Launch Date ("Term"), and thereafter
be automatically extended for additional one (1) year periods unless either
party provides thirty (30) days written notice to the non-terminating party.

                                   ARTICLE 10

                             DEFAULT AND TERMINATION

10.1.    The non-defaulting party may terminate this Agreement in its entirety
         if any of the following events of default occur:

         10.1.1.  if the defaulting party materially fails to perform or comply
                  with this Agreement or any provision hereof;

         10.1.2.  if the defaulting party fails to strictly comply with the
                  provisions of Article 11, or makes an assignment in violation
                  of Article 6;

         10.1.3.  if a party becomes insolvent or admits in writing its
                  inability to pay its debts as they mature, or makes an
                  assignment for the benefit of creditors;

         10.1.4.  if a petition under any foreign, state, or United States
                  bankruptcy act, receivership statute, or the like, as they now
                  exist, or as they may be amended, is filed by a party; or

         10.1.5.  if such a petition is filed by any third party, or an
                  application for a receiver of a party is made by anyone and
                  such petition or application is not resolved favorably or
                  discharged to such party within ninety (90) days.

10.2.    Termination due to a breach of Articles 8 or 13 shall be effective upon
         notice. In all other cases termination shall be effective sixty (60)
         days after notice of termination to the defaulting party if the
         defaults have not been cured within such sixty (60) day period. The
         rights and remedies of the parties provided herein shall not be
         exclusive and are in addition to any other rights and remedies provided
         by law or this Agreement.

                                   ARTICLE 11

                          OBLIGATIONS UPON TERMINATION

11.1.    From and after termination or expiration of this Agreement,
         HealthStream shall not employ Licensor Content or portions thereof
         which is owned by Licensor, as part or portion of any product that
         HealthStream may use, sell, assign, lease, license, or transfer to
         third parties. Both parties shall cease and desist from all use of the
         other party's name(s) and associated trademark(s) and, upon request,
         deliver to the other party or its authorized representatives or destroy
         all material upon which those name(s) and the associated trademarks
         appear.

11.2.    Articles 6, 7, 11, 12, 13, 14, 15, and Sections 16.2 through 16.6 shall
         survive termination or expiration of this Agreement.

                                                        Scripps and HealthStream
                                                                    Page 6 of 11
<PAGE>   7

                                   ARTICLE 12

                WARRANTIES, LIMITATION OF LIABILITY AND REMEDIES

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER
WARRANTIES. ANY AND ALL OTHER IMPLIED WARRANTIES OF ANY KIND WHATSOEVER,
INCLUDING THOSE FOR MERCHANTABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE, ARE
EXPRESSLY EXCLUDED. NEITHER PARTY SHALL BE LIABLE FOR ANY CONSEQUENTIAL
(INCLUDING WITHOUT LIMITATION LOST PROFITS, UNLIQUIDATED INVENTORY, ETC.),
INCIDENTAL, INDIRECT, ECONOMIC, OR PUNITIVE DAMAGES EVEN IF THE OTHER PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

                                   ARTICLE 13

                             NONDISCLOSURE AGREEMENT

13.1.    HealthStream expressly undertakes to retain in confidence all
         information and know-how transmitted to HealthStream by Licensor that
         Licensor has identified as being proprietary and/or confidential or
         that, by the nature of the circumstances surrounding the disclosure,
         ought in good faith to be treated as proprietary and/or confidential,
         and will make no use of such information and know-how except under the
         terms and during the existence of this Agreement. HealthStream shall
         not disclose, disseminate or distribute any such confidential
         information or know how to any third party without Licensor's prior
         written consent. HealthStream agrees to use the same degree of care to
         protect Licensor confidential information as HealthStream takes to
         protect its own confidential information of like importance. However,
         HealthStream shall have no obligation to maintain the confidentiality
         of information that:

         13.1.1.  it received rightfully from another party prior to its receipt
                  from Licensor;

         13.1.2.  Licensor has disclosed to a third party without any obligation
                  to maintain such information in confidence; or

         13.1.3.  has been or is independently developed by HealthStream.

13.2.    Further, HealthStream may disclose confidential information as required
         by governmental or judicial order, provided HealthStream gives Licensor
         prompt notice of such order and complies with any confidentiality or
         protective order (or equivalent) imposed on such disclosure.
         HealthStream shall treat the terms and conditions of this Agreement as
         confidential; however, HealthStream may disclose such information in
         confidence to its immediate legal and financial consultants as required
         in the ordinary course of HealthStream's business. HealthStream's
         obligation under this Article 12 shall extend to the earlier of such
         time as the information protected hereby is in the public domain
         through no fault of HealthStream or five (5) years following
         termination or expiration of this Agreement. HealthStream shall not
         disclose any information on Licensor's unannounced products to
         HealthStream's employees or any third party.

13.3.    Licensor shall have the same obligations in Sections 11.1 and 11.2
         above with respect to HealthStream's information and know-how.

13.4.    Both parties shall prepare a mutually acceptable press release, if any,
         to announce this Agreement.

                                                        Scripps and HealthStream
                                                                    Page 7 of 11

<PAGE>   8

                                   ARTICLE 14

                                     AUDITS

14.1.    During the term of this Agreement, the parties hereto agree to keep all
         usual and proper records and books of account and all usual and proper
         entries relating to Licensor Content licensed consistent with generally
         accepted accounting principles.

14.2.    Licensor may cause an audit to be made of the applicable HealthStream
         records that pertain to this Agreement for the sole purpose of
         verifying royalty reports issued by HealthStream to Licensor and prompt
         adjustment shall be made to compensate for any errors or omissions
         disclosed by such audit. Any such audit shall be conducted by an
         independent certified public accountant of national stature (e.g.,
         Deloitte) selected by HealthStream (other than on a contingent fee
         basis) and shall be conducted during regular business hours at
         HealthStream's offices and in such a manner as not to interfere with
         HealthStream's normal business activities. Any such audit shall occur
         no more than once per calendar year and within six (6) months of the
         end of the calendar year. Licensor shall pay for any such audit unless
         Material discrepancies are disclosed. "Material" shall mean the lesser
         of Five Thousand Dollars (US$5,000.00) or five percent (5%) of the
         amount that should have been reported. If Material discrepancies are
         disclosed, HealthStream agrees to pay Licensor the costs associated
         with the audit not to exceed Five Thousand Dollars (US$5,000.00). The
         auditor shall only disclose the correct data and amounts as called for
         on the royalty reports.

14.3.    Any statement shall affect neither the right to examine and audit nor
         the right to receive an adjustment to the contrary, appearing on checks
         or otherwise, unless expressly agreed to in writing by the party having
         such right.

14.4.    In the event that either party makes any claim with respect to an
         audit, upon the audited party's written request the party who has
         requested such audit will make available to the audited party the
         records and reports pertaining to such audit prepared by the
         independent auditor who performed such audit.

                                   ARTICLE 15

                              NOTICES AND REQUESTS

All notices, authorizations, and requests in connection with this Agreement
shall be deemed given on the day they are deposited in the U.S. mails, postage
prepaid, certified or registered, return receipt requested, or sent by air
express courier, charges prepaid; and addressed as follows:

LICENSOR:                  Scripps Clinic
                           Roger Cornell, MD
                           Vice President of Academic Affairs
                           Drop GEN2
                           Department of Academic Affairs
                           10666 North Torrey Pines Rd.
                           LaJolla, California 92037

HEALTHSTREAM:              HealthStream, Inc.
                           Robert H. Laird, Jr.
                           General Counsel
                           209 10th Avenue South
                           Suite 450
                           Nashville, Tennessee 37203

or to such other address as the party to receive the notice or request so
designates by written notice to the other.

                                                        Scripps and HealthStream
                                                                    Page 8 of 11
<PAGE>   9

                                   ARTICLE 16
                                     GENERAL

16.1.    This Agreement does not constitute an offer by HealthStream and it
         shall not be effective until signed by both parties. Upon execution by
         both parties, this Agreement shall constitute the entire agreement
         between the parties with respect to the subject matter hereof and
         replaces and supplants all prior and contemporaneous communications. It
         shall not be modified except by a written agreement signed on behalf of
         Partner and HealthStream by their respective duly authorized
         representatives. Unless agreed to in a separate writing signed by both
         parties, any statement appearing as a restrictive endorsement on a
         check or other document which purports to modify a right, obligation or
         liability of either party shall be of no force and effect.

16.2.    If either HealthStream or Partner employs attorneys to enforce any
         rights arising out of or relating to this Agreement, the prevailing
         party in any proceeding shall be entitled to recover its reasonable
         attorneys' fees, costs and other expenses.

16.3.    This Agreement, and the rights of the parties hereto, shall be governed
         by and construed in accordance with the laws of the State of Tennessee,
         without regard to such state's conflict of laws provisions.

16.4.    Neither this Agreement, nor any terms and conditions contained herein,
         shall be construed as creating a partnership, joint venture or agency
         relationship or as granting a franchise as defined in 16 CFR Section
         436.2(a). The price and payment described in Article 4 of this
         Agreement shall be construed as a royalty fee for the rights granted in
         Article 3 of this Agreement, and not as a franchise fee.

16.5.    If any provision of this Agreement shall be held by a court of
         competent jurisdiction to be illegal, invalid, or unenforceable, the
         remaining provisions shall remain in full force and effect. If this
         Agreement as it relates to any product(s) licensed hereunder shall be
         held by a court of competent jurisdiction to be invalid, illegal, or
         unenforceable or if this Agreement is terminated as to particular
         product(s), this Agreement shall remain in full force and effect as to
         the remaining product(s).

16.6.    No waiver of any breach of any provision of this Agreement shall
         constitute a waiver of any prior, concurrent or subsequent breach of
         the same or any other provisions hereof, and no waiver shall be
         effective unless made in writing and signed by an authorized
         representative of the waiving party.

16.7.    The Article headings used in this Agreement and the attached Exhibits
         are intended for convenience only and shall not be deemed to supersede
         or modify any provisions.

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

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date. All signed copies of this Agreement shall be deemed originals.

           /s/ R. Cornell                              /s/ Robert A. Frist, Jr.
         --------------------------------------       --------------------------
         Scripps Clinic                               HealthStream, Inc.
         Roger Cornell, MD                            Robert A. Frist, Jr.
         Director of Academic Affairs                 Chief Executive Officer

           /s/ RCC
         --------------------------------------

                                                        Scripps and HealthStream
                                                                    Page 9 of 11
<PAGE>   10

                                    EXHIBIT A
                            EXISTING LICENSOR CONTENT

Melanoma 2000:  10th Annual Cutaneous Malignancy Update

                                                        Scripps and HealthStream
                                                                   Page 10 of 11
<PAGE>   11

                                    EXHIBIT B
                      THE ACCME'S ESSENTIALS AND GUIDELINES
          FOR ACCREDITATION OF SPONSORS OF CONTINUING MEDICAL EDUCATION
           AND STANDARDS FOR COMMERCIAL SUPPORT AND ENDURING MATERIALS

                                                        Scripps and HealthStream
                                                                   Page 11 of 11

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