Document:

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                                                                   EXHIBIT 10.15

                        SEVERANCE COMPENSATION AGREEMENT

         THIS SEVERANCE COMPENSATION AGREEMENT (the "Agreement") is between
First Acceptance Corporation, a Delaware corporation ("First Acceptance
Corporation"), and Charles David Hamilton, an individual (the "Executive").
First Acceptance Corporation and its majority-owned subsidiaries are hereinafter
collectively referred to as the "Companies."

                                    RECITALS:

         The Executive is currently employed by one of the Companies in an at
will employment relationship. First Acceptance Corporation has offered to expand
protection to the Executive in the form of severance benefits payable on
termination of employment under certain circumstances in consideration of
Executive's agreement to continue his employment under the terms of this
Agreement. The Executive desires to continue employment with the Companies under
such terms and conditions, and with the protection afforded to the Executive by
this Agreement.

                                    AGREEMENT

         NOW, THEREFORE, These Premises Considered, and in consideration of the
mutual covenants and promises in this Agreement, the sufficiency of which is
hereby acknowledged, the parties agree as follows:

         1. Term of Agreement. This Agreement shall continue in effect for a
period of three years from date hereof (the "Initial Term"). Thereafter, this
Agreement shall automatically be extended for successive terms of one year (a
"Renewal Term"), except this Agreement may be terminated after the Initial Term
upon delivery of written notice of the termination of this

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Agreement by any of the Companies at least six months prior to the commencement
of any Renewal Term. If the Executive's employment is terminated during the term
of the Agreement, the date on which the Executive's employment terminates shall
be referred to as the "Date of Termination."

         2. Severance Benefits. If during the term of this Agreement the
Executive leaves the employment of the Companies for Good Reason, as explained
in Section 3 of this Agreement, and the Executive signs the release (the
"Release") that is attached to and incorporated in this Agreement, the Executive
shall receive the following benefits (the "Severance Benefits"):

                  (a) An amount equal to the Executive's annual base salary. The
         "annual base salary" of the Executive shall be defined as the
         Executive's base rate of compensation in effect as of the Date of
         Termination, but in no event less than the Executive's base rate of
         compensation in effect as of the end of the last calendar quarter
         preceding the Date of Termination;

                  (b) Payment of the Executive's monthly COBRA premiums for
         continued health and dental insurance coverage for the shorter of the
         following: (i) 12 months after the Date of Termination; (ii) until the
         Executive no longer has coverage under COBRA; or (iii) until the
         Executive becomes eligible for substantially similar coverage under a
         subsequent employer's group health plan; and

                  (c) Outplacement services that are customary to Executive's
         position.

         Subject to the delivery of the executed Release by Executive, the
severance benefits described in subparagraphs (a) and (b) above shall be paid in
cash or good funds in equal monthly installments during the period that the
covenants set forth in Section 6 shall be in effect

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commencing on the first day of the calendar month that occurs thirty (30) days
after the Date of Termination; provided that the obligation of the Companies to
pay such severance benefits to the Executive shall be subject to termination
under the provisions of Section 6 hereof in the event the Executive should
violate the covenants set forth therein; and provided further that the payment
of such severance benefits shall be accelerated and payable in lump sum by the
Companies upon a breach of this Agreement as a result of the failure of a
successor (herein defined) to assume this Agreement as required in Section 9 of
this Agreement. The Companies shall withhold from any amounts payable under this
Agreement all federal, state, city or other income and employment taxes that
shall be required.

         The Executive shall be entitled to the following in addition to and not
in limitation of the Severance Benefits: (i) accrued and unpaid base salary as
of the Date of Termination; (ii) accrued vacation and sick leave, if any, on
Date of Termination in accordance with the then current policy of the Companies
with respect to terminated employees generally; and (iii) vested benefits under
the Companies' employee benefit plans in which the Executive was a participant
on Date of Termination, which vested benefits shall be paid or provided for in
accordance with the terms of said employee benefit plans; and (iv) all optioned
shares not previously vested shall immediately become fully vested and
exercisable for all purposes as of the date of this termination.

         The Executive shall not be entitled to receive Severance Benefits if
employment with the Companies is terminated by reason of death of Executive,
retirement of Executive as permitted under a retirement plan as then in effect
for the Companies, the Executive having reached the age of mandatory retirement
(if such requirement then exists for bona fide executives); or Disability of
Executive (herein defined); or by reason of termination of employment by the
Executive

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without Good Reason (herein defined); or by reason of termination of employment
by the Companies with Cause (herein defined).

         The Executive shall be under no duty or obligation to seek or accept
other employment and shall not be required to mitigate the amount of the
Severance Benefits provided under the Agreement by seeking employment or
otherwise; provided, however, that the Executive shall be required to notify the
Companies if the Executive becomes covered by a health or dental care program
providing substantially similar coverage, at which time health or dental care
continuation coverage provided under this Agreement shall cease.

         3. Good Reason for Termination. In the event that the Executive's
employment relationship with the Companies is terminated for any of the reasons
described in this Section 3, the Executive shall be entitled to Severance
Benefits, subject to and described in Section 2 of this Agreement. "Good Reason"
shall constitute any of the following circumstances if they occur without the
Executive's express written consent during the term of this Agreement:

         (a) The Executive no longer holds an executive level position with
executive level responsibilities with the Companies consistent with the
Executive's training and experience;

         (b) The Companies require that the Executive's primary location of
employment be more than 50 miles from the location of the Executive's primary
location of employment on date of this Agreement;

         (c) The failure of the Companies to provide the Executive, at a level
commensurate with the Executive's position, the incentive compensation
opportunities and employee benefits that are provided to other executives of
comparable rank with the Companies;

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         (d) A breach by the Companies of any provision of this Agreement.
including without limitation, the failure of a successor to assume this
Agreement as required in Section 9 hereof;

         (e) The termination of the Executive's employment by the Companies for
a reason other than: (i) death; (ii) retirement pursuant to a retirement plan as
then in effect for the Companies; (iii) Disability as explained in Section 4 of
this Agreement; (iv) the Executive has reached the age of mandatory retirement
(if such requirement then exists for bona fide executives); (v) for Cause, as
explained in Section 5 of this Agreement;

         (f) A reduction by the Companies in the Executive's base salary in
effect as of the date of this Agreement; or

         (g) The termination or non-renewal of this Agreement by the Companies.

         The Executive must provide the Companies with written notice no later
than 45 calendar days after the Executive knows or should have known that Good
Reason has occurred. Following the Executive's Notice, the Companies shall have
45 calendar days to rectify the circumstances causing the Good Reason. If the
Companies fail to rectify the event(s) causing the Good Reason within the 45 day
period after the Executive's Notice, or if any of the Companies delivers to the
Executive written notice stating that the circumstances cannot or shall not be
rectified, the Executive shall be entitled to assert Good Reason and terminate
employment on or before 90 days after the delivery of the Executive's Notice.
Should Executive fail to provide the required Notice in a timely manner, Good
Reason shall not be deemed to have occurred as a result of that event. The
Initial Term or a Renewal Term shall not be deemed to have expired

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during the Notice period, however, as long as the Executive has provided Notice
within the Term.

         4. Disability. For purposes of this Agreement, Disability means a
serious injury or illness that requires the Executive to be under the regular
care of a licensed medical physician and renders the Executive incapable of
performing the essential functions of the Executive's position for 12 months as
determined by the Board of Directors of the Companies in good faith and upon
receipt of and in reliance on competent medical advice from one or more
individuals selected by the Board of Directors, who are qualified to give
professional medical advice.

         5. Cause. If the Executive's employment relationship with the Companies
is terminated by the Companies for Cause, as described below in this Section,
the Executive shall not be eligible for Severance Benefits and all rights of the
Executive and obligations of the Companies under this Agreement shall expire.
Cause means:

            (a) The Executive has been convicted in a federal or state court of
a crime classified as a felony;

            (b) Action or inaction by the Executive (i) that constitutes
embezzlement, theft, misappropriation or conversion of assets of the Companies
which alone or together with related actions or inactions involve assets of more
than a de minimis amount, or that constitutes fraud, gross malfeasance of duty,
or conduct grossly inappropriate to Executive's office; and (ii) such action or
inaction has adversely affected or is likely to adversely affect the business of
the Companies or has resulted or is intended to result in direct or indirect
gain or personal enrichment of the Executive to the detriment of the Companies;

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            (c) The Executive has been grossly inattentive to, or in a grossly
negligent manner failed to competently perform, Executive's job duties and the
failure was not cured within 45 days after written notice from the Companies.

         Any termination of the Executive's employment by the Companies for
Cause shall be communicated by a notice of termination (the "Notice of
Termination") to the Executive. The Notice of Termination shall be a written
notice indicating the specific termination provision of this Agreement relied
upon and shall set forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive's employment under
this provision.

         6. Non-Competition.

            (a) The Executive will not during the Restricted Period (herein
defined):

                  (i) become employed by a competitor company at any location
         and directly solicit or sell non-standard personal automobile insurance
         to any person or entity that was insured by any of the Companies within
         one year prior to the Date or Termination, or directly provide services
         related to non-standard personal automobile insurance to any such
         person or entity; or

                  (ii) receive or earn compensation of any type directly arising
         out of the purchase of non-standard personal automobile insurance by
         any person or entity that was insured by the Companies at any time
         within one year prior to the Date of Termination; or

                  (iii) solicit or induce any other employees of the Companies
         to leave such employment or accept employment with any other person or
         entity, or solicit or induce any insurance agent of the Companies to
         offer, sell or market non-standard

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         personal automobile insurance for a competitor company in the primary
         market of the Companies.

                           "Competitor company" means an insurance company,
                  insurance agency, business, for profit or not for profit
                  organization (other than the Companies) that provides, or
                  offers to provide non-standard personal automobile insurance
                  to individuals or institutions.

                           "Non-standard personal automobile insurance" means
                  automobile insurance sold to individuals or institutions that
                  based primarily on their inability or unwillingness to obtain
                  coverage from standard carriers due to various factors,
                  including their need for monthly payment plans, their failure
                  to maintain continuous insurance coverage or their driving
                  record, and who in most cases are required by law to buy a
                  minimum amount (or limits) of automobile insurance coverage.

                            "Primary market area" means any state in which the
                  Companies derived more than $5 million in direct written
                  premiums from the sale of non-standard personal automobile
                  insurance to individuals or institutions in the most recent
                  complete fiscal year prior to the Date of Termination.

                           "Restricted Period" means a period of 12 months from
                  the Date of Termination.

                           "Employed" includes activities as an owner,
                  proprietor, employee, agent, solicitor, partner, member,
                  manager, principal, shareholder (owning more than 1% of the
                  outstanding stock), consultant, officer, director or
                  independent contractor.

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                           "Companies" means any company that is a subsidiary of
                  First Acceptance Corporation, now or in the future, and any
                  other company that has succeeded to the business of any of the
                  Companies.

            (b) If the Executive is deemed to have materially breached the
non-competition covenants set forth in Section 6 of this Agreement, the
Companies may, in addition to seeking an injunction or any other remedy they may
have, withhold or cancel any remaining payments or benefits due to the Executive
pursuant to Section 2 of this Agreement. The Companies shall give prior or
contemporaneous written notice of such withholding or cancellation of payments
in accordance with Section 2 hereof. If the Executive violates any of these
restrictions, the Companies shall be further entitled to an immediate
preliminary and permanent injunctive relief, without bond, in addition to any
other remedy which may be available to the Companies.

            (c) Both parties agree that the restrictions in this Agreement are
fair and reasonable in all respects, including the geographic and temporal
restrictions, and that the benefits described in this Agreement, to the extent
any separate or special consideration is necessary, are fully sufficient
consideration for the Executive's obligations under this Agreement.

         7. Confidentiality. Executive will remain obligated under any
confidentiality or nondisclosure agreement with the Companies (or any of them)
that is currently in effect or to which the Executive may in the future be
bound. In the event that the Executive is at any time not the subject of a
separate confidentiality or nondisclosure agreement with the Companies (or any
of them), Executive expressly agrees that Executive shall not use for the
Executive's personal benefit, or disclose, communicate or divulge to, or use for
the direct or indirect benefit of any person, firm, association or company any
confidential or competitive material or

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information of the Companies or their subsidiaries, including without
limitation, any information regarding insureds or other customers, actual or
prospective, and the contents of their files; marketing, underwriting or
financial plans or analyses which is not a matter of public record; claims
practices or analyses which are not matters of public record; pending or past
litigation in which the Companies have been involved and which is not a matter
of public record; and all other strategic plans, analyses of operations,
computer programs, personnel information and other proprietary information with
respect to the Companies which are not matters of public record. Executive shall
return to the Companies promptly, and in no event later than the Date of
Termination, all items, documents, lists and other materials belonging to the
Companies or their subsidiaries, including but not limited to, credit, debit or
service cards, all documents, computer tapes, or other business records or
information, keys and all other items in the Executive's possession or control.

         8. Successors of First Acceptance Corporation. First Acceptance
Corporation will require any successor (herein defined) to assume expressly and
agree to perform this Agreement in the same manner and to the same extent that
the Companies would be required to perform this Agreement if no such succession
had taken place. Failure of First Acceptance Corporation to obtain such
agreement prior to the effectiveness of any such succession shall be a breach of
this Agreement and shall entitle the Executive to terminate employment for Good
Reason and receive Severance Benefits as provided in Section 2 hereof. Reference
to the Companies in this Agreement shall include any successor which assumes and
agrees to perform this Agreement by operation of law or otherwise.

         The term "successor" means any Person, as defined by Section 3(a)(9) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that
either (i) becomes the Beneficial

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Owner, as defined by Rule 13d-3 of the General Rules and Regulations under the
Exchange Act, directly or indirectly, of the securities of First Acceptance
Corporation representing more than 50.1% of the combined voting power of the
then outstanding securities of First Acceptance Corporation; (ii) purchases or
otherwise acquires substantially all of the assets of the Companies such that
the Companies cease to function on a going forward basis as an insurance holding
company system that provides non-standard personal automobile insurance; or
(iii) survives a merger, consolidation or reorganization that results in less
than 50.1% of the combined voting power of First Acceptance Corporation or such
surviving entity being owned by stockholders of First Acceptance Corporation
immediately preceding such merger, consolidation or reorganization.

         9. Notice. For purposes of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered by hand or commercial courier or
mailed by certified or registered mail, return receipt requested, postage
prepaid, addressed to the respective addresses as set forth below or to such
other address as one party may have furnished to the other in writing in
accordance herewith.

                  Notice to the Executive:

                           Charles D. Hamilton
                           9212 Apache Trail
                           Brentwood, TN 37027

                  Notice to the Companies:

                           First Acceptance Corporation
                           Mailing Address:
                           3813 Green Hills Village Dr.
                           Nashville, Tennessee 37215
                           Attention: President and Chief Executive Officer

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         10. Claims Procedure.

             (a) The administrator for purposes of this Agreement shall be First
Acceptance Corporation ("Administrator"), whose address is 3813 Green Hills
Village Dr., Nashville, Tennessee, 37215, Telephone: (615) 844-2900. The "Named
Fiduciary" as defined in Section 402(a)(2) or ERISA, also shall be First
Acceptance Corporation. First Acceptance Corporation shall have the right to
designate one or more employees of the Companies as the Administrator and the
Named Fiduciary at any time, and to change the address and telephone number of
the same. First Acceptance Corporation shall give the Executive written notice
of any change in the Administrator and Named Fiduciary, or in the address or
telephone number of the same.

            (b) The Administrator shall make all determinations as to the right
of any person to receive benefits under the Agreement. Any denial by the
Administrator of a claim for benefits by the Executive ("the claimant") shall be
stated in writing by the Administrator and delivered or mailed to the claimant
within ten (10) days after receipt of the claim, unless special circumstances
require an extension of time for processing the claim. If such an extension is
required, written notice of the extension shall be furnished to the claimant
prior to the termination of the initial 10-day period. In no event shall such
extension exceed a period of ten (10) days from the end of the initial period.
Any notice of denial shall set forth the specific reasons for the denial,
specific reference to pertinent provisions of this Agreement upon which the
denial is based, a description of any additional material or information
necessary for the claimant to perfect the claim, with an explanation of why such
material or information is necessary, and any explanation of claim review
procedures, written to the best of the Administrator's ability in a manner that
may be understood without legal or actuarial counsel.

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            (c) A claimant whose claim for benefits has been wholly or partially
denied by the Administrator may request, within ten (10) days following the
receipt of such denial, in a writing addressed to the Administrator, a review of
such denial. The claimant shall be entitled to submit such issues or comments in
writing or otherwise, as the claimant shall consider relevant to a determination
of the claim, and the claimant may include a request for a hearing in person
before the Administrator. Prior to submitting the request, the claimant shall be
entitled to review such documents as the Administrator shall agree are pertinent
to the claim. The claimant may, at all stages of review, be represented by
counsel, legal or otherwise, of the claimant's choice. All requests for review
shall be promptly resolved. The Administrator's decision with respect to any
such review shall be set forth in writing and shall be mailed to the claimant
not later than ten (10) days following receipt by the Administrator of the
claimant's request unless special circumstances, such as the need to hold a
hearing, require an extension of time for processing, in which case the
Administrator's decision shall be so mailed not later than twenty (20) days
after receipt of such request.

         11. Arbitration. The parties to this Agreement agree that final and
binding arbitration shall be the sole recourse to settle any claim or
controversy arising out of or relating to a breach or the interpretation of this
Agreement, except as either party may be seeking injunctive relief. Either party
may file for arbitration. A claimant seeking relief on a claim for benefits,
however, must first follow the procedure in Section 11 hereof and may file for
arbitration within sixty (60) days following claimant's receipt of the
Administrator's written decision on review under Section 11(c) hereof, or if the
Administrator fails to provide any written decision under Section 11 hereof,
within 60 days of the date on which such written decision was required to be
delivered to the claimant as therein provided. The arbitration shall be held at
a mutually agreeable

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location, and shall be subject to and in accordance with the arbitration rules
then in effect of the American Arbitration Association; provided that if the
location cannot be agreed upon the arbitration shall be held in Nashville,
Tennessee. The arbitrator may award any and all remedies allowable by the cause
of action subject to the arbitration, but the arbitrator's sole authority shall
be to interpret and apply the provisions of this Agreement. In reaching its
decision the arbitrator shall have no authority to change or modify any
provision of this Agreement or other written agreement between the parties. The
arbitrator shall have the power to compel the attendance of witnesses at the
hearing. Any court having jurisdiction may enter a judgment based upon such
arbitration. All decisions of the arbitrator shall be final and binding on the
parties without appeal to any court. Upon execution of this Agreement, the
Executive shall be deemed to have waived any right to commence litigation
proceedings regarding this Agreement outside of arbitration or injunctive relief
without the express consent of First Acceptance Corporation. The Companies shall
pay all arbitration fees and the arbitrator's compensation. If the Executive
prevails in the arbitration proceeding, the Companies shall reimburse to the
Executive the reasonable fees and expenses of Executive's personal counsel for
his or her professional services rendered to the Executive in connection with
the enforcement of this Agreement.

         12. Miscellaneous. Except insofar as this provision may be contrary to
applicable law, no sale, transfer, alienation, assignment, pledge,
collateralization or attachment of any benefits under this Agreement shall be
valid or recognized by the Companies.

             (a) This Agreement is an unfunded deferred compensation arrangement
for a member of a select group of the Companies' management and any exemptions
under ERISA, as applicable to such arrangement, shall be applicable to this
Agreement. Nothing in this Agreement shall require or be deemed to require the
Companies or any of them to segregate,

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earmark or otherwise set aside any funds or other assets to provide for any
payments made or required to be made hereunder.

         (b) Nothing in this Agreement shall be deemed to create an employment
agreement between the Executive and the Companies or any of them providing for
Executive's employment for any fixed duration, nor shall it be deemed to modify
or undercut the Executive's at will employment status with the Companies.

         (c) Neither the provisions of this Agreement nor the severance benefits
provided hereunder shall reduce any amounts otherwise payable, or in any way
diminish the Executive's rights as an employee of the Companies, whether
existing now or hereafter, under any benefit, incentive, retirement, stock
option, stock bonus or stock purchase plan, or any employment agreement or other
plan or arrangement.

         (d) This Agreement sets forth the entire agreement between the parties
with respect to the matters set forth herein. This Agreement may not be modified
or amended except by written agreement intended as such and signed by all
parties.

         (e) This Agreement shall benefit and be binding upon the parties and
their respective directors, officers, employees, representatives, agents, heirs,
successors, assigns, devisees, and legal or personal representatives.

         (f) The Companies, from time to time, shall provide government agencies
with such reports concerning this Agreement as may be required by law, and shall
provide Executive with such disclosure concerning this Agreement as may be
required by law or as the Companies may deem appropriate.

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         (g) Executive and the Companies respectively acknowledge that each of
them has read and understand this Agreement, that they have each had adequate
time to consider this Agreement and discuss it with each of their attorneys and
advisors, that each of them understands the consequences of entering into this
Agreement, that each of them is knowingly and voluntarily entering into this
Agreement, and that they are each competent to enter into this Agreement.

         (h) If any provision of this Agreement is determined to be
unenforceable, at the discretion of First Acceptance Corporation the remainder
of this Agreement shall not be affected but each remaining provision shall
continue to be valid and effective and shall be modified so that it is
enforceable to the fullest extent permitted by law. Moreover, in the event this
Agreement is determined to be unenforceable against any of the Companies, it
shall continue to be valid and enforceable against the other Companies.

         (i) This Agreement will be interpreted as a whole according to its fair
terms. It will not be construed strictly for or against either party.

         (j) Except to the extent that federal law controls, this Agreement is
to be construed according to Tennessee law.

IN WITNESS WHEREOF, the parties have duly executed this Agreement effective as
of the 24th day of August, 2004.

                                         EXECUTIVE:

                                            /s/ Charles D. Hamilton
                                         ---------------------------------------

                                         Name:  Charles D. Hamilton
                                              ----------------------------------

                                   FIRST ACCEPTANCE CORPORATION

Dated: August 24, 2004             By: /s/ Stephen J. Harrison
      ----------------------          ------------------------------------------
                                      Its: President and Chief Executive Officer

                                       16EX-10.1 EMPLOYMENT AGREEMENT (KEVIN CAMERON)

 

Exhibit 10.1

CONFORMED COPY

EMPLOYMENT AGREEMENT

          EMPLOYMENT
AGREEMENT (the “Agreement”) dated as of September 23, 2004
between WEBMD CORPORATION, a Delaware corporation (the “Company”), and Kevin Cameron (“Executive”).

          WHEREAS, Executive and the Company are party to an Employment Agreement
dated as of April 4, 2000 (the “Original Employment Agreement”); and

          WHEREAS, the Company and Executive desire to amend and restate in its
entirety the Original Employment Agreement on the terms set forth herein;

          NOW, THEREFORE, in consideration of the mutual covenants in this
Agreement, the parties agree as follows:

          1. Effectiveness of Agreement and Employment of Executive.

          1.1. Effectiveness of Agreement. This Agreement shall become effective as
of the date first written above (the “Effective Date”).

          1.2. Employment by the Company; Directorship. (a) The Company hereby
employs Executive as the Chief Executive Officer of the Company and Executive
hereby accepts such employment with the Company as of October 1, 2004.
Executive shall report to the Board of Directors of the Company (the
“Board”), and perform such duties and services for the Company
and its subsidiaries and affiliates (such subsidiaries and affiliates
collectively, “Affiliates”), commensurate with
Executive’s position as may be
designated from time to time, by the Board. Executive shall use his best and most diligent efforts to promote
the interests of the Company and the Affiliates, and shall devote all of his
business time and attention to his employment under this Agreement; provided,
however, that, subject to Sections 1.3, 1.4, 1.5 and 1.7, Executive shall be
permitted to continue to devote an insubstantial portion of his business time
to his family business previously disclosed to the Company in writing and to manage his
personal, financial and legal affairs that may from time to time require
insubstantial portions of his working time, so long as such activities would
not singularly or in the aggregate interfere or be inconsistent with his duties
and obligations under this Agreement.

          (b) The Company shall, subject to its fiduciary duties, use its best
efforts to appoint Executive to the Board or to include Executive in
management’s nominees for election, and recommend the election of Executive as
a member of the Board. In the event that the employment of Executive with the
Company is terminated for any reason, Executive agrees that he will promptly
resign from the Board.

          1.3. Confidentiality. Executive understands and acknowledges that in the
course of his employment, he will have access to and will learn information
that is proprietary to, or confidential to the Company and its Affiliates that
concerns the operation and methodology of the Company and its Affiliates,
including, without limitation, business strategy and plans, financial
information, protocols, proposals, manuals, clinical procedures and guidelines,
technical data, computer source codes, programs, software, know-how and
specifications,

 

 

copyrights, trade secrets, market information, Developments (as
hereinafter defined), and customer information (collectively, “Proprietary
Information”). Executive agrees that, at all times (including following
termination of this Agreement), he will keep confidential and will not disclose
directly or indirectly any such Proprietary Information to any third party,
except as required to fulfill his duties hereunder, and will not misuse,
misappropriate or exploit such Proprietary Information in any way. The
restrictions contained herein shall not apply to any information which
Executive can demonstrate by written record (a) was already available to the
public at the time of disclosure, or subsequently becomes available to the
public, other than by breach of this Agreement, (b) was the subject of a
court order for Executive to disclose, or (c) was information which was in the
possession of the Executive prior to his employment with the Company. Upon any
termination of this Agreement, Executive shall immediately return to the
Company all copies of any Proprietary Information in his possession.

          1.4. Restrictions on Solicitation. During the period beginning on the
Effective Date and ending on the second anniversary of the date of cessation of
the employment of the Executive for any reason whatsoever (the “Restricted
Period”), Executive shall not, directly or indirectly, without the prior
written approval of the Company, solicit or contact any customer, or any
prospective customer (with whom the Executive has had contact during the last
12 months of the term of this Agreement), of the Company or any of the
Affiliates for any commercial pursuit which Executive knows, or should know, is
in competition with the Company or any of the Affiliates, or that is
contemplated from time to time by the Business Plan (as defined below) or take
away or interfere or attempt to interfere with any custom, trade, business or
patronage of the Company or any of the Affiliates, or induce, or attempt to
induce, any employees, agents or consultants of or to the Company or any of the
Affiliates to do anything from which Executive is restricted by reason of this
Agreement nor shall Executive, directly or indirectly, offer or aid others to
offer employment to or interfere or attempt to interfere with any employees,
agents or consultants of the Company or any of the Affiliates (or any employee,
agents or consultants who were employed or provided services to the Company or
its Affiliates during the one year period prior to the date of termination of
Executive’s employment). For purposes of this Agreement, “Business Plan” shall
mean, at any point in time, the then current business plan of the Company and
the Affiliates and any business plans of the Company and the Affiliates in
effect during the prior 18 months.

          1.5. Restrictions on Competitive Employment. (a) During the Restricted
Period, Executive shall not (as principal, agent, employee, consultant or
otherwise), anywhere in the United States, directly or indirectly, without the
prior written approval of the Company, (i) engage in direct or indirect
competition with the Company or any of the Affiliates, (ii) conduct a business
of the type and character engaged in by the Company or any of the Affiliates
(or contemplated by the Business Plan), or (iii) develop products or services
competitive with those of the Company or any of the Affiliates (collectively,
“Competitive Business”). Notwithstanding the foregoing, Executive may have an
interest consisting of publicly traded securities constituting less than 5
percent of any class of publicly traded securities in any public company
engaged in a Competitive Business so long as he is not employed by and does not
consult with, or become a director of or otherwise engage in any activities
for, such company.

          (b) For purposes of the covenant not to compete set forth in paragraph (a)
above, Executive acknowledges that the Company and its Affiliates presently
conduct their

2

 

businesses throughout the United States. Executive agrees that the
Restricted Period and the geographical areas encompassed by such covenant are
necessary and reasonable in order to protect the Company and its Affiliates in
the conduct of their businesses. The parties intend that the foregoing
covenant of Executive shall be construed as a series of separate covenants, one
for each geographic area specified. Except for geographic coverage, each such
separate covenant shall be deemed identical in terms to the covenant set forth
in paragraph (a) above. To the extent that the foregoing covenant or any
provision of this Section 1.5 shall be deemed illegal or unenforceable by a
court or other tribunal of competent jurisdiction with respect to (i) any
geographic area, (ii) any part of the time period covered by such covenant,
(iii) any activity or capacity covered by such covenant or (iv) any other term
or provision of such covenant, such determination shall not affect such
covenant with respect to any other geographic area, time period, activity or
other term or provision covered by or included in such covenant.

          1.6. Extension of Restricted Period. The Restricted Period shall be
extended by the length of any period during which Executive is in breach of the
terms of this Section 1.

          1.7. Assignment of Developments. All Developments that are at any time
made, conceived or suggested by Executive, whether acting alone or in
conjunction with others, arising out of or as a result of Executive’s
employment with the Company shall be the sole and absolute property of the
Company and the Affiliates, free of any reserved or other rights of any kind on
Executive’s part. During Executive’s employment and, if such Developments were
made, conceived or suggested by Executive during or as a result of Executive’s
employment under this Agreement or any prior employment with the Company or the
Affiliates, thereafter, Executive shall promptly make full disclosure of any
such Developments to the Company and, at the Company’s cost and expense, do all
acts and things (including, among others, the execution and delivery under oath
of patent and copyright applications and instruments of assignment) deemed by
the Company to be necessary or desirable at any time in order to effect the
full assignment to the Company and the Affiliates of Executive’s right and
title, if any, to such Developments. For purposes of this Agreement, the term
“Developments” shall mean all data, discoveries, findings, reports, designs,
inventions, improvements, methods, practices, techniques, developments,
programs, concepts, and ideas, whether or not patentable, relating to the
present or planned activities, or future activities of which Executive is
aware, or the products and services of the Company or any of the Affiliates.

          1.8. Remedies. Executive acknowledges and agrees that damages for a
breach or threatened breach of any of the covenants set forth in Sections 1.1
through 1.7 will be difficult to determine and will not afford a full and
adequate remedy, and therefore agrees that the Company, in addition to seeking
actual damages in connection therewith, may seek specific enforcement of any
such covenant in any court of competent jurisdiction, including, without
limitation, by the issuance of a temporary or permanent injunction.

          2. Compensation and Benefits.

          2.1.
Salary. Commencing on October 1, 2004, the Company shall pay Executive for services during the term
of this Agreement a base salary at the annual rate of $660,000 (as it may be
increased, “Base Salary”). Any and all increases to Executive’s Base Salary
shall be determined by the Compensation Committee of the Board (the
“Compensation Committee”) in its sole discretion.

3

 

Such Base Salary shall be payable in equal installments, no less
frequently than monthly, pursuant to the Company’s customary payroll policies
in force at the time of payment, less any required or authorized payroll
deductions.

          (a) Bonus Executive shall be eligible to receive an annual bonus of up
to 100% of his Base Salary. For the fiscal years ending December 31, 2004 and
December 31, 2005, the amount of such bonus shall be determined in the sole
discretion of the Compensation Committee. For future fiscal years during the
Employment Period, Executive’s bonus shall be subject to the attainment of
certain specified performance goals. Payment of the bonus, if any, shall be
made at the same time that other executive officer bonuses are paid generally,
but in no event later than April 30 of the following year, so long as Executive
remains in the employ of the Company on December 31 of the applicable year.
The performance goals shall be established by the Compensation Committee in
consultation with the Executive. The determination as to whether the
performance goals have been attained shall be made by the Compensation
Committee in its sole and absolute discretion to the extent the performance
goals are not quantifiable and on the basis of the Company’s audited financial
statements, to the extent the performance goals are quantifiable. Equitable
adjustments shall be made by the Compensation Committee to the targets to
reflect the effect of acquisitions/divestitures.

          2.2. Benefits; Car Allowance. (a) During the Employment Period,
Executive shall be entitled to participate, on the same basis and at the same
level as other similarly situated senior executives of the Company, in any
group insurance, hospitalization, medical, health and accident, disability,
fringe benefit and tax-qualified retirement plans or programs or vacation leave
of the Company now existing or hereafter established to the extent that he is
eligible under the general provisions thereof.

          (b) During the Employment Period, the Company shall provide Executive with
a car allowance in accordance with Company policy.

          2.3. Expenses. Pursuant to the Company’s customary policies in force at
the time of payment, Executive shall be promptly reimbursed, against
presentation of vouchers or receipts therefore, for all authorized expenses
properly and reasonably incurred by him on behalf of the Company or its
Affiliates in the performance of his duties hereunder. The Company shall pay
the reasonable expenses of Davis & Gilbert incurred in connection with the
negotiation of this Agreement upon presentment of appropriate invoices, not to
exceed $10,000.

          3. Employment Period.

          Executive’s employment under this Agreement shall commence as of the
Effective Date, and shall terminate on the fifth anniversary thereof, unless
terminated earlier pursuant to Section 4 (the “Initial Employment Period”).
Unless written notice of either party’s desire to terminate this Agreement has
been given to the other party prior to the expiration of the Initial Employment
Period (or any one-month renewal thereof contemplated by this sentence), the
term of this Agreement shall be automatically renewed for successive one-month
periods.

4

 

          4. Termination.

          4.1. Termination by the Company for Cause. (a) Executive’s employment
with the Company may be terminated at any time by the Company for Cause. Upon
such a termination, the Company shall have no obligation to Executive other
than the payment of Executive’s earned and unpaid compensation to the effective
date of such termination.

          (b) For purposes of this section of the Agreement, the term “Cause” shall
mean any of the following:

     (i) Any willful misconduct by Executive relating, directly or
indirectly, to the Company or any of its Affiliates, which breach, if
susceptible to cure, is not cured by Executive within 30 days following
written notice from the Company detailing such breach;

     (ii) Any breach by Executive of any material provision contained in
this Agreement or any material policy, which breach, if susceptible to
cure, is not cured by Executive within 30 days following written notice
from the Company detailing such breach; or

     (iii) Executive’s conviction of a felony or crime involving moral
turpitude.

          4.2. Permanent Disability; Death. If during the term of this Agreement,
Executive shall become ill, mentally or physically disabled, or otherwise
incapacitated so as to be unable regularly to perform the duties of his
position for a period in excess of 90 consecutive days or more than 120 days in
any consecutive 12 month period (“Permanent Disability”), then the Company
shall have the right to terminate Executive’s employment with the Company upon
written notice to Executive. In the event the Company terminates Executive’s
employment as a result of his Permanent Disability or death, Executive or
Executive’s estate shall be entitled to (i) a continuation of the Base Salary
for a period of three years from the date of termination, (ii) continued
participation in the Welfare Plans (as defined below) (subject to the proviso
in Section 4.4 (ii)) for a period of three years from the date of termination
and (iii) any Existing Equity (as defined in Section 5.2) shall remain
outstanding and continue to vest, and shall otherwise be treated for purposes
of the terms and conditions thereof, as if Executive remained in the employ of
the Company through the third anniversary of the date of termination, in each
case subject to the provisos and conditions following clause (iii) in Section
4.4; provided, however, that the Company shall have no other obligation to
Executive or Executive’s estate pursuant to this Agreement in the event that
Executive’s employment with the Company is terminated by the Company pursuant
to this Section 4.2.

          4.3. Resignation by the Executive. If the Executive terminates his
employment with the Company other than in accordance with Sections 4.5 and 4.6,
the Company shall have no obligation to Executive other than the payment of
Executive’s earned and unpaid compensation to the effective date of such
termination and any options to purchase the Company’s common stock shall remain
outstanding for the post-termination exercise period specified in the
applicable option agreement.

5

 

          4.4. Termination by the Company Without Cause. Executive’s employment
with the Company may be terminated at any time by the Company without Cause.
If the Company terminates Executive’s employment without Cause (including upon
notice of the Company pursuant to Section 3 of its desire not to renew this
Agreement) prior to a Change of Control (as defined in Section 4.5), the
Company shall have the following obligations to Executive (but excluding any
other obligation to Executive pursuant to this Agreement):

     (i) The greater of (A) a continuation of his base salary in effect
immediately prior to the Effective Date ($450,000) for a period
commencing on the date of termination and ending two years from the date
of termination and (B) a continuation of the Base Salary for six months
for each six month period from the Effective Date through the date of
termination (the period during which Executive is receiving severance
under this Section is referred to herein as the “Applicable Period”);
provided, however, that in no event shall the Applicable Period exceed
three years for any purpose under this Agreement (payable in accordance
with the third sentence of Section 2.1);

     (ii) Executive shall be eligible to continue to participate during
the Applicable Period (but in no event less than two years) on the same
terms and conditions that would have applied had he remained in the
employ of the Company during such period, in all health, medical, dental,
life and disability plans provided to Executive at the time of such
termination and which are provided by the Company to its employees
generally following the date of termination (“Welfare Plans”), provided
that the Company may require the Executive to elect COBRA and, in such
case, the Company shall pay that portion of the COBRA premium that the
Company pays for active employees with the same coverage for the period
that Executive is eligible for COBRA; and

     (iii) Any Existing Equity (as defined in Section 5.2) shall remain
outstanding and continue to vest, and shall otherwise be treated for
purposes of the terms and conditions thereof, as if Executive remained in
the employ of the Company through the Applicable Period (but in no event
less than two years);

provided, however, that the continuation of such salary and benefits and the
continued vesting of the Existing Equity and exercisability of the Existing
Stock Options shall cease on the occurrence of any circumstance or event that
would constitute Cause under Section 4.1 of this Agreement (including any
material breach of the covenants contained in Sections 1.3-1.7 above), provided
further, however, that Executive’s eligibility to participate in the Welfare
Plans shall cease at such time as Executive is offered comparable coverage with
a subsequent employer. If Executive is precluded from participating in any
Welfare Plan by its terms or applicable law, the Company shall provide
Executive with benefits that are reasonably equivalent in the aggregate to
those which Executive would have received under such plan had he been eligible
to participate therein, provided that the Company’s liability shall in no event
exceed three times what the Company would have been required to incur if
Executive participated in the Company’s plan. In the event that Executive’s
employment is terminated by the Company without Cause on or after a Change of
Control, Executive shall be entitled to all of the benefits described in
Section 4.5.

          4.5. Change of Control. In the event of a Change of Control (as defined
below), the Executive may terminate his employment with the Company upon 30
days’ written

6

 

notice to the Company at any time after a 11 month period following the
occurrence of the Change of Control (or such shorter period to the extent the
acquiring company does not request the services of the Executive for such 11
month period). In the event of such a termination by Executive, Executive will
be entitled to the (i) the greater of (such period being the “Change of Control
Payment Period”) (A) the continuation of the Base Salary for a period of three
years from the date of termination or (B) a continuation of the Base Salary
through September 22, 2009, (ii) annual bonus payments (pro rated for partial
years) during the Change in Control Payment Period calculated as follows: (A)
if the date of termination occurs prior to the calculation of the bonus for the
fiscal year ending December 31, 2005, such bonus shall be 50% of the Base
Salary or (B) if the termination occurs after such date, the bonus shall be the
amount of the bonus for the prior fiscal year or, if greater, the bonus paid to
Executive for the fiscal year immediately prior to the Change in Control
(payable at such time as bonus payments are made generally to officers in no
event later than April 30 of the following year), (iii) the benefits described
in Section 4.4(ii) for the duration of the Change of Control Payment Period and (iv) all
Existing Equity held by the Executive shall immediately vest and the Existing
Stock Options will remain outstanding as if Executive remained in the employ of
the Company until such Existing Stock Options would have expired under the
terms of the applicable stock option plan and agreement, in each case subject
to the provisos and conditions in Section 4.4. For the purposes of this
Agreement, a “Change of Control” shall be deemed to have occurred if:

     (a) any person, entity or group shall have acquired at least 50% of
the voting power of the outstanding voting securities of the Company; or

     (b) a reorganization, merger or consolidation or sale or other
disposition, in each case involving all or substantially all of the
assets of the Company shall have occurred; or

     (c) a complete liquidation or dissolution of the Company shall have
occurred.

          For the avoidance of doubt, no sale, disposition or other transaction
involving the WebMD Health Division (or the assets thereof), including, without
limitation, a spin-off or split-off, will constitute a Change in Control.

          4.6. Termination by the Executive For Good Reason. Executive’s employment
with the Company may be terminated by the Executive for Good Reason on 30 days
written notice to the Company, which notice shall detail the specific basis for
such termination. The Company shall be given the opportunity to cure the basis
for such termination within such 30 day period. For the purpose of this
Section of this Agreement, the term “Good Reason” means any of the following:
(1) a material breach by the Company of its obligations to the Executive under
this Employment Agreement, which, if susceptible to cure, remains uncured, (2)
a material demotion of his position with the Company, and (3) if Executive is
required by the Company to relocate from his present residence or is required
to commute, on a regular basis, to the Company’s headquarters and such
headquarters is outside of the New York City metropolitan area. If the
Executive terminates his employment under this Section, the Executive shall be
entitled to receive the same salary and benefit continuation and continued
vesting of the Existing Equity and exercisability of the Existing Stock Options
as if his employment had been terminated by the Company without Cause under
Section 4.4.

7

 

          4.7. Liquidated Damages. Executive acknowledges that any payments and
benefits under Section 4 resulting from a termination of Executive’s employment
with the Company are in lieu of any and all claims that the Executive may have
against the Company and the Affiliates (other than benefits under the Company’s
employee benefit plans that by their terms survive termination of employment
and benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended and rights to indemnification under certain indemnification
arrangements for officers of the Company), and represent liquidated damages
(and not a penalty). The Company may request that the Executive confirm such
acknowledgment in writing prior to the receipt of such benefits.

          5. Equity.

          5.1 Option. On October 1, 2004, Executive shall be granted a nonqualified
option to purchase 1,500,000 shares of the Company’s common stock under the
Company’s 2000 Long Term Incentive Plan (the “New Option”). The per share
exercise price shall be the closing price of the Company’s common stock on
October 1, 2004 and the New Option shall vest subject to Executive’s continued
employment on the applicable vesting dates (except as set forth in Section 4)
in annual installments as follows: 17% of the New Option shall vest on October
1, 2005; an additional 18.5% of the New Option shall vest on October 1, 2006;
an additional 20% on October 1, 2007; an additional 21.5% of the New Option
shall vest on the October 1, 2008; and the remaining 23% of the New Option
shall vest on October 1, 2009 (the “Vesting Schedule”). The New Option will
have a term of ten years, subject to earlier expiration in the event of
termination of employment. Subject to the terms of this Agreement, the New
Option shall be evidenced by the Company’s standard form of option agreement.
To the extent permitted by Company policy and applicable law, Executive may
exercise options by means of a cashless exercise through a broker. For
purposes of this Agreement, “Existing Stock Options” shall mean all options
granted to Executive prior to the Effective Date and the New Option.

          5.2 Restricted Stock. On October 1, 2004, Executive shall be granted
275,000 shares of Restricted Stock (the “Restricted Shares”) under the terms of
the 2000 Long Term Incentive Plan and a restricted stock agreement to be
entered into between Executive and the Company (which subject to the terms of
this Agreement shall be the standard agreement for executives of the Company).
The Restricted Shares shall vest and the restrictions thereon lapse in the same
manner applicable to the New Option subject to Executive’s continued employment
on the applicable dates, except as set forth in Section 4. For purposes of
this Agreement, “Existing Restricted Stock” shall mean the Restricted Shares
and the restricted stock previously granted to Executive in March 2004 and
“Existing Equity” shall mean, collectively, the Existing Stock Options and
Existing Restricted Stock.

          6. Certain Additional Payments By The Company

          6.1 Gross-Up Payment. Anything in this Agreement to the contrary or any
termination of this Agreement notwithstanding, in the event it shall be
determined that any payment or distribution or benefit received or to be
received by Executive pursuant to the terms of this Agreement or any other
payment or distribution or benefit made or provided by the Company or any of
its Affiliates, to or for the benefit of Executive (whether pursuant to this
Agreement or otherwise and determined without regard to any additional payments
required

8

 

under this Section 6) (a “Payment”) would be subject to the excise tax
imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), or any interest or penalties are incurred by Executive with respect to
such excise tax (such excise tax, together with any such interest and
penalties, is hereinafter collectively referred to as the “Excise Tax”), then
Executive shall be entitled to receive from the Company an additional payment (a “Gross-Up
Payment”) in an amount such that after payment by Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including, without limitation, any income and employment taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, Executive retains an amount of the Gross-Up Payment
equal to the sum of (x) the Excise Tax imposed upon the Payments and (y) the
product of any deductions actually disallowed under Section 68 of the Code
solely as a direct result of the inclusion of the Gross-Up Payment in the
Executive’s adjusted gross income and the highest applicable marginal rate of
federal income taxation for the calendar year in which the Gross-Up Payment is
to be made. For purposes of determining the amount of the Gross-Up Payment,
the Executive shall be deemed to (i) pay federal income taxes at the highest
marginal rates of federal income taxation for the calendar year in which the
Gross-Up Payment is to be made and (ii) pay applicable state and local income
taxes at the highest marginal rate of taxation for the calendar year in which
the Gross-Up Payment is to be made, net of the maximum reduction in federal
income taxes which could be obtained from deduction of such state and local
taxes.

          6.2 Gross-Up Payment Calculation. Subject to the provision of Sections
6.1 and 6.3, all determinations required to be made under this Section 6,
including whether and when a Gross-Up Payment is required and the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by the Company’s certified public accounting firm
(the “Accounting Firm”), which shall provide detailed supporting calculations
both to the Company and Executive within 15 business days of the receipt of
notice from Executive or the Company that there has been a Payment, or such
earlier time as is requested by the Company. All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 6, shall be paid by the Company to
Executive within five days of the receipt of the Accounting Firm’s
determination. Any determination by the Accounting Firm shall be binding upon
the Company and Executive. As a result of the uncertainty in the application
of Section 4999 of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Gross-Up Payments which will not
have been made by the Company should have been made (“Underpayment”),
consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 6.3 and Executive
thereafter is required to make a payment of any Excise Tax, the Accounting Firm
shall determine the amount of the Underpayment that has occurred and any such
Underpayment shall be promptly paid by the Company to or for the benefit of
Executive.

          6.3 Claim by the IRS. Executive shall notify the Company in writing of
any claim by the U.S. Internal Revenue Service (the “IRS”) that, if successful,
would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten
business days after Executive is informed in writing of such claim and shall
apprise the Company of the nature of such claim and the date on which such
claim is requested to be paid. Executive shall not pay such claim prior to the
expiration of the 30-day period following the date on which Executive gives
such notice to the Company (or such

9

 

shorter period ending on the date that any payment of taxes with respect
to such claim is due). If the Company notifies Executive in writing prior to
the expiration of such period that it desires to contest such claim, Executive
shall:

     (i) give the Company any information reasonably requested by the
Company relating to such claim;

     (ii) take such action in connection with contesting such claim as
the Company shall reasonably request in writing from time to time,
including, without limitation, accepting legal representation with
respect to such claim by an attorney reasonably selected by the Company;
and

     (iii) cooperate with the Company in good faith in order effectively
to contest such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold Executive harmless, on an
after-tax basis, for any Excise Tax or income and employment tax (including
interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 6.3, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forgo any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct Executive to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and Executive shall
agree to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that if the Company
directs Executive to pay such claim and sue for a refund, the Company shall, to
the extent permitted by law, advance the amount of such payment to Executive,
on an interest-free basis and indemnify and hold Executive harmless, on an
after-tax basis, from any Excise Tax or income and employment tax (including
interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and
provided further, that any extension of the statute of limitations relating to
payment of taxes for the taxable year of Executive with respect to which such
contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
Executive shall be entitled to settle or contest, as the case may be, any other
issue raised by the IRS or any other taxing authority.

          6.4 Entitlement to Refund. If, after the receipt by Executive of an
amount advanced by the Company pursuant to Section 6.3, Executive becomes
entitled to receive any refund with respect to such claim, Executive shall
(subject to the Company’s complying with the requirements of Section 6.3)
promptly pay to the Company the amount of such refund (together with any
interest paid or credited thereon after taxes applicable thereto). If, after
the receipt by Executive of an amount advanced by the Company pursuant to
Section 6.3, a determination is made that Executive shall not be entitled to
any refund with respect to such claim and the Company does not notify Executive
in writing of its intent to contest such denial of refund prior

10

 

to the expiration of 30 days after such determination, then such advance
shall be forgiven and shall not be required to be repaid and the amount of such
advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.

          7. Notices. Any notice or communication given by either party hereto to
the other shall be in writing and personally delivered or mailed by registered
or certified mail, return receipt requested, postage prepaid, to the following
addresses:

	 	(a)	 	if to the Company:
	 
	 	 	 	WebMD Corporation

River Drive Center 2

669 River Drive

Elmwood Park, New Jersey 07407-1361
	 
	 	 	 	Attention: General Counsel
	 
	 	(b)	 	if to the Executive at the address specified in
the personnel files of the Company.
	 
	 	 	 	With a copy to:
	 
	 	 	 	Mark E. Bokert, Esq.

Davis & Gilbert LLP

1740 Broadway

New York, NY 10019

Any notice shall be deemed given when actually delivered to such address, or
two days after such notice has been mailed or sent by Federal Express,
whichever comes earliest. Any person entitled to receive notice may designate
in writing, by notice to the other, such other address to which notices to such
person shall thereafter be sent.

          8. Miscellaneous.

          8.1. Entire Agreement. This Agreement and the agreements relating to the
Existing Equity contain the entire understanding of the parties in respect of
their subject matter and supersede upon their effectiveness all other prior
agreements and understandings between the parties with respect to such subject
matter (including, without limitation, the Original Employment Agreement). To
the extent that there is a conflict between this Agreement and the agreements
relating to the Existing Equity with respect to vesting or exercisability only,
the provisions that are more favorable to the Executive shall prevail.

          8.2. Amendment; Waiver. This Agreement may not be amended, supplemented,
canceled or discharged, except by written instrument executed by the party
against whom enforcement is sought. No failure to exercise, and no delay in
exercising, any right, power or privilege hereunder shall operate as a waiver
thereof. No waiver of any breach of

11

 

any provision of this Agreement shall be deemed to be a waiver of any
preceding or succeeding breach of the same or any other provision.

          8.3. Binding Effect; Assignment. The rights and obligations of this
Agreement shall bind and inure to the benefit of any successor of the Company
by reorganization, merger or consolidation, or any assignee of all or
substantially all of the Company’s business and properties. The Company may
assign its rights and obligations under this Agreement to any of its Affiliates
without the consent of the Executive. Executive’s rights or obligations under
this Agreement may not be assigned by Executive, except that the rights
specified in Section 4.2 or, in the event of the death of Executive while he is
receiving payments and benefits thereunder, Sections 4.4, 4.5 of 4.6 shall pass
upon the Executive’s death to Executive’s executor or administrator.

          8.4. Headings. The headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this
Agreement.

          8.5. Governing Law; Interpretation. This Agreement shall be construed in
accordance with and governed for all purposes by the laws and public policy
(other than conflict of laws principles) of the State of New Jersey applicable
to contracts executed and to be wholly performed within such State.

          8.6. Further Assurances. Each of the parties agrees to execute,
acknowledge, deliver and perform, and cause to be executed, acknowledged,
delivered and performed, at any time and from time to time, as the case may be,
all such further acts, deeds, assignments, transfers, conveyances, powers of
attorney and assurances as may be reasonably necessary to carry out the
provisions or intent of this Agreement.

          8.7. Severability. The parties have carefully reviewed the provisions of
this Agreement and agree that they are fair and equitable. However, in light
of the possibility of differing interpretations of law and changes in
circumstances, the parties agree that if any one or more of the provisions of
this Agreement shall be determined by a court of competent jurisdiction to be
invalid, void or unenforceable, the remainder of the provisions of this
Agreement shall, to the extent permitted by law, remain in full force and
effect and shall in no way be affected, impaired or invalidated. Moreover, if
any of the provisions contained in this Agreement is determined by a court of
competent jurisdiction to be excessively broad as to duration, activity,
geographic application or subject, it shall be construed, by limiting or
reducing it to the extent legally permitted, so as to be enforceable to the
extent compatible with then applicable law.

          IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first above written.

	 	 	 	 	 
	 	WEBMD CORPORATION

 	 
	 	By: /s/ Charles A. Mele	 
	 	 	
	 
	 	 	Name: Charles A. Mele	 
	 	 	Title: Executive Vice
President - General Counsel	 
	 

	 	 	 	 	 
	 	EXECUTIVE

/s/ Kevin Cameron

Kevin Cameron

 	 

12

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