Document:

Exhibit
10.1

 

HEALTHGATE DATA CORP.

25 CORPORATE DRIVE, SUITE
310

BURLINGTON, MA 01803

 

October 27,  2003

 

Mr. Eric W. Thrailkill

625 Sparrow Court

Nashville, TN 37221

 

 

Dear Eric:

 

HealthGate Data Corp.
(the “Company”) is pleased to offer you a position as Chief Operating
Officer.  Your initial responsibilities
will be product development, product management and IT.  Additionally, you will be required to assist
in the sales effort for all HealthGate products.  You will report to the Chief Executive Officer. Your semi-monthly
salary will be $7,916.67, on an annualized basis, is equivalent to
$190,000.  You will also be eligible for
a discretionary bonus of up to 40% as determined HealthGate’s Compensation
Committee and Board of Directors.  Your
salary and discretionary bonus is subject to annual review and adjustment by
HealthGate’s Compensation Committee (which typically reviews salaries of
executive officers in January and February of each year).

 

1)              You
will be eligible to participate in HealthGate Data Corp’s 2004 Executive Bonus
Plan as determined by the HealthGate Compensation Committee.

 

2)              As
an employee of the Company, you are eligible to participate in the Company’s
benefit plan, in accordance with the enclosed documents for the plan year 2003.

 

3)              Upon
approval of the Board of Directors of the Company, you will be issued an
Incentive Stock Option with respect to 100,000 shares of Common Stock of the
Company, subject to the terms and conditions of the Company’s Incentive Stock
Option Plan.  The options will be
granted effective with the closing of HealthGate’s acquisition of the assets of
EBM Solutions, Inc. and have an exercise price equal to HealthGate’s quoted
price on the Over the Counter - Bulletin Board at that time.

 

4)              The
employment relationship established by this letter is at-will and nothing
contained in this letter shall be construed to constitute a contract of
employment.  As an employee of the
Company, you will enter into the enclosed Proprietary Information and Invention
Agreement.  Please execute and return
the Agreement with your acceptance of this offer letter.

 

5)              This
offer is conditional upon your acceptance of this offer by October 27,
2003 by 5:00 pm EST.

 

 

6)              The
foregoing offer is contingent upon your ability to comply with the requirements
of the U.S. Department of Justice, Immigration and Naturalization Service, with
respect to your employment by the Company.

 

7)              In
consideration of your services to date and your continuing services to
HealthGate, in the event that HealthGate terminates your employment without
“Cause” (as defined below), you shall be entitled to the following payments
from HealthGate:

 

(i)                                     all
amounts accrued and unpaid to you through the termination date, including any
base salary, and accrued but unused vacation, holiday or sick time; and

(ii)                                  Lump
sum severance payment comprising your then current base salary and your then
current health care coverage continuing for six (6) months from the date of
termination.  To the extent that health
care coverage cannot by its terms be continued, HealthGate shall reimburse you
for the actual premium costs of obtaining such coverage under COBRA or
comparable coverage under non-group insurance, if less.

 

Severance benefit
payment shall be made on a schedule consistent with HealthGate’s payroll
policies and shall be subject to applicable tax deductions and withholdings.

 

For the purposes
of this severance benefit, “Cause” means:

 

(i)                                     willful
breach or habitual neglect of the duties you are required or reasonably
requested to perform which are not cured by you within 10 days of written
notice from the Company of such breach or neglect;

(ii)                                  any
illegal act by you injurious to the business or reputation of the Company or
any of its affiliates;

(iii)                               your
engagement in misconduct injurious or potentially injurious to the business or
reputation of the Company or any of its affiliates;

(iv)                              your
commission of any crime which constitutes a felony in the jurisdiction
committed (whether or not involving the Company or any of its affiliates); or

(v)                                 a
material breach by Executive of Company policies or procedures.

 

8.               You
shall be eligible to receive severance as outlined in section 7(i) and
7(ii) if (a) you resign in connection with HealthGate’s assigning you to a
principal place of business outside the Nashville area, and (b) you provide
HealthGate a full release from all claims in connection with such resignation.

 

	
   

  	
  By:

  	
  /s/ William S. Reece

  	
   

  
	
   

  	
   

  	
  William S. Reece

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Accepted:

  	
   /s/ Eric
  Thrailkill

  	
   

  
	
   

  	
   

  	
  Eric W. Thrailkill

  
						

 

2Exhibit 10.2

 

STOCK PURCHASE AGREEMENT

 

This STOCK PURCHASE AGREEMENT (this “Agreement”), dated as
of October 3, 2003, is made by and among HealthGate Data Corp., a Delaware
corporation (the “Company”), and the investors listed on Exhibit
A (the “Schedule of Investors”) attached hereto (each an “Investor”
and collectively, the “Investors”).

 

RECITALS:

 

WHEREAS, each
Investor desires to purchase from the Company, and the Company desires to sell
to each Investor, the number of shares of Common Stock, par value $0.03 per
share, of the Company (the “Common Stock”) specified opposite such
Investor’s name on the Schedule of Investors;

 

NOW, THEREFORE, for and in consideration of the foregoing and the
mutual covenants of the parties as hereinafter set forth and other good and
valuable consideration, the receipt and sufficiency of which hereby are
acknowledged, the parties hereto hereby agree as follows:

 

ARTICLE I

SALE OF COMMON STOCK; CLOSING

 

1.1                                 Purchase
and Sale. On the terms and subject to the conditions of this Agreement, at
the Closing, the Company shall issue and sell to each Investor, and each
Investor will purchase from the Company, the number of shares of Common Stock
specified opposite such Investor’s name on the Schedule of Investors, at a
purchase price of $1.20 per share (the “Purchase Price”).  The shares of Common Stock to be purchased
by the Investors pursuant to this Agreement are hereinafter referred to,
collectively, as the “Shares.”

 

1.2                                 Payment
of Purchase Price into Escrow.  On
the terms and subject to the conditions of this Agreement, upon execution of
this Agreement by each Investor, each such Investor shall remit to Bass, Berry
& Sims PLC by wire transfer of funds the aggregate Purchase Price payable
for the Shares agreed to be purchased hereunder by such Investor as indicated
on the Schedule of Investors, with such amount to be held by Bass, Berry
& Sims PLC in escrow until the Closing.

 

1.3                                 Closing.
The closing for the purchase and sales of Shares contemplated under
Section 1.1 (the “Closing”) will take place at the
offices of Rich May, a Professional Corporation, 176 Federal Street, Boston,
Massachusetts, or at such other place as the Investors and the Company shall
mutually agree, at 10:00 A.M. local time, on October 27, 2003 (the “Closing Date”).  At the Closing, subject to the satisfaction
or waiver of the conditions precedent to Closing listed in Sections 5.1
and 5.2, Bass, Berry & Sims PLC, as escrow agent for, and on behalf
of, the Investors shall pay the aggregate Purchase Price by wire transfer of
funds to such accounts as the Company may reasonably direct by written notice
delivered to Bass, Berry & Sims PLC by the Company at least three (3)
Business Days before the Closing Date in the aggregate amount for the Shares
specified on the Schedule of Investors. 
Simultaneously, the Company will issue to each Investor the number of
Shares designated in the

 

 

Schedule of Investors to
be purchased by each Investor from the Company, free and clear of all liens, by
delivering to each Investor certificates, registered in the name of the
Investor, evidencing the Shares to be purchased by such Investor from the
Company as designated in the Schedule of Investors. At the Closing, there
shall also be delivered to the Company and each Investor the opinions,
certificates and other documents and instruments to be delivered under Article IV.

 

ARTICLE II

COMPANY REPRESENTATIONS AND WARRANTIES

 

The Company hereby represents and warrants to the Investors that,
except as set forth on the Schedule of Exceptions attached hereto,
specifically identifying the relevant sections of this Article II to which
each such exception relates, which exceptions shall be deemed to modify the
representations and warranties made hereunder:

 

2.1                                 Organization;
Power; Good Standing; Qualification. The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State
of Delaware, and has all requisite legal and corporate power and authority to
own and operate its properties and assets and to carry on its business as now
conducted, to execute and deliver this Agreement, to issue the Shares, and to
carry out the provisions of this Agreement. 
The Company is duly qualified and is authorized to transact business and
is in good standing as a foreign corporation in the Commonwealth of
Massachusetts and each other jurisdiction in which the failure to qualify would
have a material adverse effect on (a) the
business, assets or properties (including intangible assets or properties),
liabilities, results of operations or financial condition of the Company, or
(b) the ability of the Company to perform its obligations under this Agreement.

 

2.2                                 Authorization.
All corporate action on the part of the Company, its officers, directors and
stockholders necessary for the authorization, execution and delivery of this
Agreement, the performance of all obligations of the Company hereunder, and the
authorization, issuance and delivery of the Shares being issued hereunder has
been taken or will be taken prior to the Closing, and this Agreement, when
executed and delivered, will constitute the valid and legally binding
obligation of the Company, enforceable in accordance with its terms except as
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors’
rights generally.  The Company’s
execution, delivery and performance of this Agreement and the Company’s
consummation of the transactions contemplated hereby and thereby have been duly
and validly authorized by all corporate action required of the Company by
applicable law, its certificate of incorporation or bylaws.

 

2.3                                 Valid
Issuance of Shares. The Shares being issued to the Investors hereunder,
when issued and delivered in accordance with the terms of this Agreement, will
be validly issued, fully paid, and nonassessable, and will be free of all
encumbrances and restrictions on transfers other than those under applicable
federal and state securities laws.

 

2

 

2.4                                 Consents. No
consent, approval, qualification, order or authorization of, or filing with,
any local, state, or federal governmental authority or other person or third
party (other than the Company’s Board of Directors) is required on the part of
the Company in connection with the Company’s valid execution, delivery, or
performance of this Agreement or the issuance of the Shares by the Company,
except for filings pursuant to the Act and applicable blue sky laws, which filings
may properly be effected after the Closing.

 

2.5                                 Validity.
This Agreement has been duly executed and delivered by the Company and
constitutes the legal, valid and binding obligation of the Company, enforceable
in accordance with its terms except as may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws of general application
affecting enforcement of creditors’ rights generally.

 

2.6                                 Financial
Statements; SEC Reports.

 

(a)                                  Since
January 2000, Company has filed with the Securities and Exchange
Commission (“SEC”) all Annual Reports on Form 10-K, Quarterly Reports
on Form 10-Q, Current Reports on Form 8-K, proxy materials, registration
statements and other materials required to be filed by it pursuant to the
federal securities laws and has made all other filings with the SEC required to
be made (collectively, the “SEC Filings”).  The SEC Filings did not, as of their
respective filing dates, mailing dates or effective dates, as the case may be,
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
made therein, in light of the circumstances under which they were made, not
misleading.

 

(b)                                 The audited and unaudited consolidated
financial statements of Company included in the SEC Filings fairly present the
financial position of Company and its consolidated subsidiaries as of the
respective dates thereof and the consolidated results of their operations and
changes in financial position for the respective periods then ended in
conformity with generally accepted accounting principles applied on a
consistent basis (except as stated in such financial statements or notes
thereto).  The foregoing sentence is
subject, in the case of the unaudited financial statements, to normal year-end
audit adjustments.

 

(c)                                  Since June 30, 2003, there has not beenany change in the assets, liabilities, financial condition, or
operating results of the Company from that reflected in the financial statements
included in the Company’s Quarterly Report on Form 10-Q filed with the SEC for
the period ended June 30, 2003 (except changes in the ordinary course of
business or consistent with Company’s historical results) or any other event or
condition of any character that would have a material adverse effect on (a) the business, assets or properties (including
intangible assets or properties), liabilities, results of operations or
financial condition of the Company, or (b) the ability of the Company to perform
its obligations under this Agreement.

 

2.7                                 Private
Offering. Subject in part to the truth and accuracy of the representations
of the Investors set forth in this Agreement, the issuance of the Shares as
contemplated by this Agreement is exempt from the registration requirements of
the Act, and neither the Company nor

 

3

 

any authorized agent acting on
its behalf will take any action hereafter that would cause the loss of such
exemption.

 

2.8                                 Capitalization.  The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock and 10,000,000 shares of
preferred stock, par value $.01 per share (“Preferred Stock”).  All of the issued and outstanding shares of
Common Stock have been duly authorized and validly issued and are fully paid
and nonassessable and are not subject to preemptive rights.  As of the date of this Agreement, 4,261,606
shares of Common Stock were issued and outstanding, 1,112,915 shares of Common
Stock are issuable pursuant to outstanding stock options issued and an
additional 233,467  shares of Common Stock are reserved for
issuance under the Company’s Amended and Restated 1994 Stock Option Plan
(excluding options issuable to the directors, officers and employees of EBM Solutions,
Inc. upon the Closing of that certain Asset Purchase Agreement of even or near
even date herewith by and among EBM Solutions, Inc. and the Company (the “Asset
Purchase Agreement”)) and no shares of Preferred Stock were
issued and outstanding.  Except as
described in this Section 2.8, and except for a warrant issuable to
EBM Solutions, Inc. for 333,333 shares of Common Stock and a warrant issuable
to Duke University Medical Center for 30,000 shares of Common Stock, no shares
of capital stock or other equity securities of the Company are authorized and
there are no outstanding securities, options, warrants, calls, rights,
convertible or exchangeable securities, “phantom” stock rights, SARs,
stock-based performance units, commitments, agreements, arrangements or
undertakings of any kind to which the Company or any of its subsidiaries is a
party or by which any of them is bound obligating the Company or any of its
subsidiaries to issue, deliver or sell, or cause to be issued, delivered or
sold, additional shares of capital stock or other voting securities of the
Company or any of its subsidiaries or obligating the Company or any of its
subsidiaries to issue, grant, extend or enter into any such security, option,
warrant, call, right, unit, commitment, agreement, arrangement or undertaking.

 

2.9                                 Litigation.   Except as set forth in the SEC Filings,
there is no Litigation pending or, to the Company’s Knowledge, threatened
against the Company, including, without limitation, any Litigation: (a) that
questions the validity of this Agreement or the right of the Company to enter
into this Agreement, or to consummate the transactions contemplated hereby or
(b) that might result, either individually or in the aggregate, in any Material
Adverse Effect on the Company.  The
Company is not a party to or, to its Knowledge, named in or subject to, any
order, writ, injunction, judgment, or decree of any court, government agency,
or instrumentality. There is no Litigation by the Company currently pending or
that the Company currently intends to initiate. As used herein (i) the term “Litigation”
means any suit, action, cause of action (whether at law or in equity),
arbitration, claim, complaint, proceeding, investigation or criminal
prosecution, and (ii) the term “Knowledge” or “Known”
means those facts that are known or should reasonably have been known by any
officer of the Company, in each case after such inquiry as is reasonable in
connection with the transactions contemplated by this Agreement and with the
performance of his or her duties and responsibilities as an officer of the
Company.

 

2.10                           Brokers.  The Company has not sought the services of, engaged or paid, and
is not liable for any fees to, a broker, underwriter or a finder in connection
with the proposed sale or purchase of the Shares.

 

4

 

2.11                           Noncontravention.  Neither the execution and the delivery of
this Agreement nor the consummation of the transactions contemplated hereby
will (a) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge, or other restriction of any
government, governmental agency, or court to which the Company is subject or
any provision of its certificate of incorporation or bylaws or (b) conflict
with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any agreement, contract, lease,
license, instrument, or other arrangement to which the Company is a party or by
which it is bound or to which any of its assets is subject.

 

2.12                           Full Disclosure.  The Company has made available to the
Investors with all information which the Investors have requested for deciding
whether to enter into this Agreement. 
Neither this Agreement nor the Exhibits or schedules hereto contain any
untrue statement of a material fact or omit to state a material fact required
to be stated therein or necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE
INVESTORS

 

Each Investor, severally but not jointly,
hereby represents and warrants to the Company as follows:

 

3.1                                 Purchase
Entirely for Own Account. This Agreement is made with the Investors in
reliance upon the Investors’ representation to the Company, which by each
Investor’s execution of this Agreement such Investor hereby confirms, that such
Investor is acquiring the Shares for investment for such Investor’s own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, and that such Investor has no present
intention of selling, granting any participation in, or otherwise distributing
the same.  By executing this Agreement,
each Investor further represents that such Investor does not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or
grant participation to such person or to any third person, with respect to any
of the Shares.

 

3.2                                 Disclosure
of Information. The Company has provided the Investor with all information
the Investor has requested for deciding whether to acquire the Shares.  Each Investor further represents that it is
an “accredited investor” as such term is defined in Rule 501 of Regulation D of
the Securities Act of 1933, as amended (the “Act”) and has had an
opportunity to ask questions and receive answers from the Company regarding the
business, properties, prospects and financial condition of the Company.  The foregoing, however, does not limit or
modify the representations and warranties of the Company in Article II
of this Agreement or the right of the Investors to rely thereon.  Each Investor acknowledges that it is able
to fend for itself, can bear the economic risk of its investment, and has such
knowledge and experience in financial or business matters that it is capable of
evaluating the merits and risks of the investment in the Shares.

 

3.3                                 Restricted
Securities.  Each Investor
understands that the Shares are characterized as “restricted securities” under
the federal securities laws inasmuch as they are being acquired from the
Company in a transaction not involving a public offering and that under such
laws and 

 

5

 

applicable regulations such
securities may be resold without registration under the Act, only in certain
limited circumstances.

 

3.4                                 Further
Limitations on Disposition. Without in any way limiting the above, each
Investor agrees not to make any disposition of all or any portion of the Shares
unless, and until the transferee has provided in writing for the benefit of
Company representations substantially similar to those set forth in this Article III,
and:

 

(a)                                 There is then in effect a registration
statement under the Act covering such proposed disposition and such disposition
is made in accordance with such registration statement; or

 

(b)                                (i)                                     Such Investor shall have notified the Company
of the proposed disposition and shall have furnished the Company with a
detailed statement of the circumstances surrounding the proposed disposition,
and (ii) if reasonably requested by the Company, such Investor shall have
furnished the Company with an opinion of counsel, reasonably satisfactory to
the Company that such disposition will not require registration of such shares
under the Act.

 

3.5                                 Legend.
Each Investor acknowledges that the certificate evidencing the Shares shall
bear a legend substantially as follows:

 

“The shares
represented by this Certificate have been acquired for investment and have not
been registered under the Securities Act of 1933, as amended, and applicable
state securities laws.  Such shares may
not be sold or transferred in the absence of such registration or unless the
Company receives an opinion of counsel reasonably acceptable to it stating that
such sale or transfer is exempt from the registration and prospectus delivery
requirements of said Act, and applicable state securities laws.  Copies of the agreements covering the
purchase of these shares and restricting their transfer may be obtained at no
cost by written request made by the holder of record of this Certificate to the
Secretary of the Company at the principal executive offices of the Company.”

 

3.6                                 Brokers.
No Investor has not sought the services of, engaged or paid, and is not liable
for any fees to, a broker, underwriter or a finder in connection with the
proposed sale or purchase of the Shares.

 

3.7                                 Risk
of Loss.  Each Investor understands
that the operation of the Company’s business is subject to numerous risks and
that the Shares are a speculative investment that involves a high degree of
risk of loss of the entire investment therein. 
Each Investor is cognizant of and understand such risks, including
without limitation those risks described in the Company’s SEC Filings.

 

6

 

ARTICLE IV

DELIVERIES AT CLOSING

 

At or before the Closing, each of the
following shall be (or shall have been) delivered to the Investors:

 

4.1                                 Opinion of Counsel.  An opinion of Rich May, a Professional
Corporation, counsel to the Company, dated the Closing Date, in the form
attached hereto as Exhibit B.

 

4.2                                 Good
Standing Certificates. 
(a) Copies of the certificate of incorporation, including all
amendments thereto, of the Company certified by the Secretary of State of the
State of Delaware, and (b) certificates from the applicable Secretary of State
of the State of Delaware to the effect that the Company is in good standing or
subsisting in such jurisdiction.

 

4.3                                 Registration
Rights Agreement.  The Registration
Rights Agreement attached hereto as Exhibit C, executed by the Company
(the “Registration Rights Agreement”).

 

4.4                                 Delivery
of Certificates.  A copy of the
Company’s letter of instruction to its transfer agent directing such transfer
agent to issue to the Investors duly executed certificates representing the
Shares being purchased by the Investors.

 

4.5                                 Consents
and Approvals.    Evidence that the
Company have obtained all consents and approvals and completed all filings
under all statutes, laws, ordinances, regulations, rules, judgments, decrees
and orders of any court or governmental agency, board, bureau, body, department
or authority or of any other person required to be obtained by the Company in
connection with the execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby.

 

ARTICLE V

CONDITIONS PRECEDENT TO CLOSING

 

5.1                                 Conditions
to Each Party’s Obligation. The respective obligation of each party hereto
to effect the transactions contemplated hereby shall be subject to the
satisfaction as of the Closing of the following conditions: (i) no Litigation
by any third party or governmental authority with respect to the transactions
contemplated hereby shall be pending or threatened in writing; and (ii) no
injunction, restraining order or order of any nature shall have been issued by
or be pending before any court of competent jurisdiction or any governmental
authority challenging the validity or legality of the transactions contemplated
hereby or restraining or prohibiting the consummation of such transactions; and
(iii) the purchase and sale of assets and related transactions, other than the
purchase and sales of the Shares hereunder, contemplated under the Asset
Purchase Agreement shall have been consummated.

 

7

 

5.2                                 Conditions to
Obligations of the Investors. The obligations of each Investor to effect
the transactions contemplated hereby are subject to the satisfaction of the
following conditions, unless waived in writing by such Investor:

 

(a)                                  Conduct of
Business in Ordinary Course. The Company shall have carried on the Business
in the usual, regular and ordinary course in substantially the same manner as
heretofore conducted and use all reasonable efforts to preserve intact its
present business organization, keep available the services of its present
officers and employees and preserve its relationships with customers, suppliers
and others having business dealings with it to the end that its goodwill,
assets or business shall not be impaired in any material respect at the Closing
Date.

 

(b)                                 No
change, effect, matter, event, occurrence
or circumstance shall have occurred and be continuing with respect to
the Company that has or would reasonably be
expected to have a material adverse effect on (i) the business, assets or
properties (including intangible assets or properties), liabilities, results of
operations or financial condition of the Company, or (ii) the ability of the
Company to perform its obligations under this Agreement.

 

(c)                                  Representations
and Warranties. The representations and warranties of the Company set forth
in this Agreement shall be true and correct in all material respects as of the
date of this Agreement, and as of the Closing Date as though made on and as of
the Closing Date, and the Investor shall have received a certificate signed on
behalf of the Company to such effect and such certificate shall be deemed to be
a representation and warranty of the Company as of the time immediately
preceding the Closing.

 

(d)                                 Performance
of Obligations of the Company. The Company shall have performed in all
material respects all obligations required to be performed by it under this
Agreement at or prior to the Closing, and the Investor shall have received a
certificate signed on behalf of the Company to such effect.

 

(e)                                  Registration
Rights Agreement. The Company shall have entered into the Registration Rights
Agreement.

 

(f)                                    Delivery
of Other Closing Documents. The Investors shall have received all documents
and other items to be delivered under Article IV hereof.

 

5.3                                 Conditions
to Obligations of the Company. The obligations of the Company to effect the
transactions contemplated hereby are subject to the satisfaction of the
following conditions, unless waived in writing by the Company:

 

(a)                                  Representations
and Warranties. The representations and warranties of the Investors set
forth in this Agreement shall be true and correct in all material respects as
of the date of this Agreement, and as of the Closing Date as though made on and
as of the Closing Date.

 

(b)                                 Payment
of Purchase Price.  The Company
shall have received at or before the Closing the aggregate Purchase Price for
the Shares in immediately available funds.  

 

8

 

ARTICLE VI

MISCELLANEOUS

 

6.1                                 Notices,
Consents, etc. Any notices, consents or other communication required to be
sent or given hereunder by any of the parties shall in every case be in writing
and shall be deemed properly served if (a) delivered personally, (b) sent by
registered or certified mail, in all such cases with first class postage
prepaid, return receipt requested, (c) delivered by a recognized overnight
courier service, or (d) sent by facsimile transmission to the parties at the
addresses as set forth below or at such other addresses as may be furnished in
writing.

 

	
  (a)

  	
   

  	
  If to the Company:

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HealthGate Data Corp.

  	
   

  	
  Rich May, a Professional Corporation

  
	
   

  	
   

  	
  25 Corporate Drive

  	
   

  	
  176 Federal Street

  
	
   

  	
   

  	
  Burlington, Massachusetts 01803

  	
   

  	
  Boston, Massachusetts 02110

  
	
   

  	
   

  	
  Fax: (781) 685-4040

  	
   

  	
  Fax: (617) 556-3890

  
	
   

  	
   

  	
  Attention: William S. Reece

  	
   

  	
  Attention: Stephen M. Kane, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  If to the Investors: Such Investor’s address set forth on the
  Schedule of Investors.

  

 

Date of service of such notice shall be (i) the date such notice is
personally delivered, (ii) three (3) days after the date of mailing if sent by
certified or registered mail, (iii) one (1) day after date of delivery to the
overnight courier if sent by overnight courier or (iv) the next succeeding
business day after transmission by facsimile.

 

6.2                                 Severability.
The unenforceability or invalidity of any provision of this Agreement shall not
affect the enforceability or validity of any other provision.

 

6.3                                 Amendment
and Waiver. This Agreement may be amended, or any provision of this
Agreement may be waived, provided that any such amendment or waiver will be
binding on the Company only if such amendment or waiver is set forth in a
writing executed by the Company and Investors holding at least a majority of
the Shares. The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a waiver of any other breach.

 

6.4                                 Counterparts.
This Agreement may be executed simultaneously in two or more counterparts, each
of which shall be deemed an original but all of which together shall constitute
one and the same agreement and shall become effective when one or more
counterparts have been signed by each of the parties hereto and delivered to
the other.

 

6.5                                 Construction.
This Agreement and the transactions contemplated hereby will be governed and
construed by and enforced in accordance with the laws of the State of Delaware.

 

6.6                                 Assignment.
This Agreement will be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns, but will not be
assignable or

 

9

 

delegable by any party without
the prior written consent of the other party.

 

6.7                                 Entire
Agreement. This Agreement, the Recitals and all the Schedules and Exhibits
attached to this Agreement (all of which shall be deemed incorporated in the
Agreement and made a part hereof) set forth the entire understanding of the
parties with respect to the subject matter hereof, and shall not be modified or
affected by any offer, proposal, statement or representation, oral or written,
made by or for any party in connection with the negotiation of the terms
hereof, and may be modified only by instruments signed by all of the parties
hereto.

 

6.8                                 Expenses.
Except as otherwise specifically provided herein, each of the parties shall pay
all costs and expenses incurred or to be incurred by it in negotiating and
preparing this Agreement and in closing and carrying out the transactions
contemplated by this Agreement, including, without limitation, all legal and
accounting expenses related thereto.

 

6.9                                 Authority
to Act. Any individual executing this Agreement on behalf of a business
organization does hereby represent and warrant that he or she has implied or
express authority to enter into this Agreement on behalf of such business
organization which he or she represents.

 

6.10                           Attorneys’
Fees. In the event litigation is brought by either party in connection with
this Agreement, the prevailing party in such litigation shall be entitled to
recover from the other party all attorneys’ fees reasonably incurred by such
prevailing party in the litigation.

 

6.11                           No
Third Party Benefits.  This
Agreement is entered into solely for the benefit of the Company and the
Investors, and nothing in this Agreement will be construed as giving any person
other than the Company and the Investors, any right, remedy or claim under this
Agreement.  In furtherance and not in
limitation of the foregoing this agreement does not give any right or benefit
to any stockholder of the Company.

 

[REMAINDER
OF PAGE LEFT BLANK]

 

10

 

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

 

	
   

  	
  HEALTHGATE DATA
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Reece

  	
   

  
	
   

  	
   

  	
  Name: William S. Reece

  
	
   

  	
   

  	
  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  INVESTORS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Harry R.
  Jacobson

  	
   

  
	
   

  	
   

  	
  Harry R. Jacobson (individually)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  A.M. PAPPAS LIFE
  SCIENCE VENTURES I, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  AMP&A Management, LLC, its general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Ford S. Worthy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ford S. Worthy

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SOLIDUS COMPANY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ E. Townes Duncan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  E. Townes Duncan

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  SOLIDUS PARTNERS,
  L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ E. Townes Duncan

  	
   

  
	
   

  	
   

  	
  Name:

  	
  E. Townes Duncan

  
	
   

  	
   

  	
  Title:

  	
  General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VANDERBILT
  UNIVERSITY

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Spitz

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William T. Spitz

  
	
   

  	
   

  	
  Title:

  	
  Vice Chancellor

  
								

 

 

Signature Page to Stock Purchase Agreement

 

11

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