Document:

Exhibit
4.1

 

THIS
WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON THE EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED OR UNLESS THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT, THE SALE IS MADE IN ACCORDANCE
WITH RULE 144 UNDER SUCH ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL
THAT SUCH SALE, TRANSFER OR ASSIGNMENT IS EXEMPT FROM THE REGISTRATION AND
PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

WARRANT TO
PURCHASE COMMON STOCK

 

OF

 

HEALTHGATE
DATA CORP.

 

(void after April 27, 2005)

 

This
Warrant to Purchase Common Stock (this “Warrant”) is issued as of
October 27, 2003 (the “Effective Date”) and certifies that, for value
received, the Holder hereof (as defined below) is entitled to purchase the
Warrant Stock (as defined below) from HealthGate Data Corp., a Delaware
corporation (the “Company”), at any time during the Exercise Period (as defined
below) by the exercise or conversion of this Warrant in accordance with the
terms and subject to the conditions set forth in this Warrant.

 

1.
DEFINITIONS. As used in this Warrant, the following terms shall have the
definitions ascribed to them below:

 

(a)
“Board” shall mean the Board of Directors of the Company.

 

(b)
“Common Stock” shall mean the Common Stock, par value $0.03 per share, of the
Company.

 

(c)
“Exercise Period” shall mean the period commencing on the Effective Date and
ending at 5:00 p.m., Eastern Standard Time, on April 27, 2005.

 

(d)
“Fair Market Value,” with respect to a share of Warrant Stock shall mean, as
applicable, (A) if the Common Stock is publicly traded on a stock exchange or a
NASDAQ system or the over-the counter bulletin board (OTC-BB), the average
closing price (last trade) of Common Stock for the last ten (10) trading days
on which trades occurred immediately prior to the date of valuation or (B)
otherwise, the fair market value of one share of Common Stock, as determined in
good faith by the Board, provided that the Holder shall have the right to
demand that such fair market value be determined instead by a mutually
agreeable valuation firm or, if no firm can be mutually agreed upon, by a
nationally-recognized accounting firm selected by an arbitrator chosen pursuant
to the rules of the American Arbitration Association.

 

 

(e)
“Holder” shall mean each person or entity that validly holds this Warrant (or
any portion thereof) for so long as this Warrant (or any portion thereof) is so
held, the initial Holder being EBM Solutions, Inc.

 

(f)
“Warrant Price” shall mean $1.20 per share of Warrant Stock, subject to
adjustment as described in Section 4 below.

 

(g)
“Warrant Stock” shall mean 333,333 shares of the Common Stock, subject to
adjustment as described in Section 4 below.

 

2.
EXERCISE OF WARRANT. This Warrant may be exercised by the Holder with respect
to the Warrant Stock for which this Warrant, or any portion thereof, at any
time and from time to time during the Exercise Period. Whenever the Holder
desires to exercise this Warrant, or a portion hereof, the Holder shall
surrender, at the principle office of the Company, this Warrant, together with
the Notice of Exercise and the Investment Representation Statement in the forms
attached hereto as ATTACHMENTS 1 AND 3, respectively, duly completed and
executed, and accompanied by payment in full of the Warrant Price in cash or by
check with respect to the shares of Warrant Stock being purchased. To the
extent exercised, this Warrant shall be deemed to have been exercised
immediately prior to the close of business on the date of its surrender for
exercise as provided above, and the Holder, or its duly-appointed nominee,
shall be treated for all purposes as the holder of record of such Warrant Stock
as of the close of business on such date. As promptly as practicable after such
date but in any event within ten (10) business days thereafter, the Company
shall issue and deliver to the Holder or such nominee a certificate or
certificates for the number of full shares of Warrant Stock issuable upon such
exercise. If the Warrant shall be exercised for less than the total number of
shares of Warrant Stock then issuable upon exercise, promptly after surrender
of the Warrant upon such exercise the Company will execute and deliver a new
warrant dated the Effective Date, evidencing the right of the Holder to
purchase the balance of the Warrant Stock purchasable hereunder upon the same
terms and conditions set forth herein.

 

3.
CONVERSION (NET ELECTION). In lieu of exercising this Warrant (or any portion
hereof), the Holder shall have the right to convert this Warrant (or any
portion hereof) into Warrant Stock by executing and delivering to the Company
at its principal office the written Notice of Conversion and Investment
Representation Statement in the forms attached hereto as ATTACHMENTS 2 AND 3,
respectively, specifying the portion of the Warrant to be converted, and
accompanied by this Warrant. The number of shares of Warrant Stock to be issued
to the Holder upon such conversion shall be computed using the following
formula:

 

X
= (P) (Y) (A-B) /A

 

	
  where

  	
   

  	
  X

  	
   

  	
  =

  	
   

  	
  the
  number of shares of Warrant Stock to be issued to the Holder for the portion
  of the Warrant being converted.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  P

  	
   

  	
  =

  	
   

  	
  the
  portion of the Warrant being converted expressed as a decimal.

  

 

2

 

	
   

  	
   

  	
  Y

  	
   

  	
  =

  	
   

  	
  the
  total number of shares of Warrant Stock then issuable upon exercise of the
  Warrant in full.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  A

  	
   

  	
  =

  	
   

  	
  the
  Fair Market Value of one share of Warrant Stock as of the last business day
  immediately prior to the date the notice of conversion is received by the
  Company.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B

  	
   

  	
  =

  	
   

  	
  the
  Warrant Price on the date of conversion.

  

 

Any
portion of this Warrant that is converted shall be immediately canceled. This
Warrant, to the extent converted, shall be deemed to have been converted
immediately prior to the close of business on the date of its surrender for
conversion as provided above, and the Holder, or its duly-appointed nominee,
shall be treated for all purposes as the holder of record of such Warrant Stock
as of the close of business on such date. As promptly as practicable after such
date, but in any event within ten (10) business days thereafter, the Company
shall issue and deliver to the Holder or such nominee a certificate or
certificates for the number of full shares of Warrant Stock issuable upon such
conversion. If the Warrant shall be converted for less than the total number of
shares of Warrant Stock then issuable upon conversion, promptly after surrender
of the Warrant upon such conversion, the Company will execute and deliver a new
Warrant, dated the date hereof, evidencing the right of the Holder to purchase
the balance of the Warrant Stock purchasable hereunder upon the same terms and
conditions set forth herein.

 

4.
ADJUSTMENTS AND NOTICES.

 

(a)
SUBDIVISION, STOCK DIVIDENDS OR COMBINATIONS. In case the Company shall at any
time subdivide the outstanding shares of Common Stock or shall issue a dividend
in the form of Common Stock with respect to Common Stock, the Warrant Price in
effect immediately prior to such subdivision or the issuance of such dividend
shall be proportionately decreased, and the number of shares of Warrant Stock
purchasable immediately prior to such subdivision or issuance of dividend shall
be proportionately increased, effective at the close of business on the date of
such subdivision or dividend. In case the Company shall at any time combine the
outstanding shares of Common Stock the Warrant Price in effect immediately
prior to such combination shall be proportionately increased, and the number of
shares of Warrant Stock purchasable immediately prior to such combination shall
be proportionately decreased, effective at the close of business on the date of
such combination. The provisions of this Section 4(a) shall similarly
apply to successive subdivisions, dividends in Common Stock and combinations.

 

(b)
RECLASSIFICATION, EXCHANGE, SUBSTITUTION, ETC. In case of any capital
reorganization, reclassification, exchange, substitution or other event results
in a change of the rights, preferences or other terms of the Common Stock
(other than a liquidation, a change in par value or a change resulting from a
stock dividend or subdivision or combination of shares) (any of the foregoing,
a “Recapitalization Event”), the Company shall, as a condition to such event,
duly execute and deliver to the Holder a new warrant so that the Holder shall
have the right to

 

3

 

receive, at a total purchase price not to
exceed that payable upon the exercise of the unexercised portion of this
Warrant, and in lieu of the Warrant Stock theretofore issuable upon exercise of
this Warrant, the kind and amount of shares of stock, other securities, money
and property that would have been receivable by the Holder upon such event had
the Holder exercised this Warrant in full immediately prior to the effective
time of such event. Such new warrant shall provide for adjustments that shall
be as nearly equivalent as may be practicable to the adjustments provided for
in this Section 4. The provisions of this Section 4(b) shall
similarly apply to successive Recapitalization Events.

 

(c)
MERGER. In case of any merger or consolidation of the Company into or with
another corporation where the Company is not the surviving corporation, such
successor or purchasing corporation shall, as a condition to closing such
merger or consolidation, duly execute and deliver to the Holder a new warrant
so that the Holder shall have the right to receive, at a total purchase price
not to exceed that payable upon the exercise of the unexercised portion of this
Warrant, and in lieu of the Warrant Stock theretofore issuable upon exercise of
this Warrant, the kind and amount of shares of stock, other securities, money
and property that would have been receivable by the Holder pursuant to such
merger or consolidation had the Holder exercised this Warrant in full
immediately prior to the effective time of such event. In the event that all
holders of Common Stock do not receive the same kind and amount of
consideration pursuant to such merger or consolidation, the Holder shall have
the right to choose the kind and amount of consideration for which the new
warrant will be exercisable from among the combinations of kind and amount of
consideration offered to any holder of Common Stock pursuant to such merger or
consolidation. Such new warrant shall provide for adjustments that shall be as
nearly equivalent as may be practicable to the adjustments provided for in this
Section 4. The provisions of this Section 4(c) shall similarly apply
to successive mergers and consolidations.

 

(d)
SALE OF ASSETS. In case of any sale, transfer or lease (but not including a
transfer or lease by pledge or mortgage to a bona fide lender) of all or substantially
all of the assets of the Company, the Company shall, as a condition to closing
any such sale, transfer or lease, offer to the Holder for thirty (30) days a
new warrant entitling the Holder to receive, at a total purchase price not to
exceed that payable upon the exercise of the unexercised portion of this
Warrant, and in lieu of the Warrant Stock theretofore issuable upon exercise of
this Warrant, a pro rata portion of the kind and amount of shares of stock,
other securities, money and property receivable by the Company upon such sale,
transfer or lease, such pro rata portion to be a fraction, the numerator of
which is the number of shares of Warrant Stock for which this Warrant is then
exercisable and the denominator of which is the total number of shares of
Common Stock then issued and outstanding (assuming the conversion or exchange
of all equity securities, options and warrants (including this Warrant) then
convertible or exchangeable for Common Stock at the rate of conversion or
exchange then in effect). Such new warrant shall provide for adjustments that
shall be as nearly equivalent as may be practicable to the adjustments provided
for in this Section 4. In the event that the Holder does not accept such
offer of a new warrant within thirty (30) days of receiving notice of the
Company’s offer, the Company shall have the right to consummate the sale,
transfer or lease without delivering such new warrant to the Holder and this
Warrant shall continue in full force and effect, unaffected by such sale,
transfer or lease. If the Holder does accept such offer within such thirty (30)
day period, the Company shall duly execute and deliver

 

4

 

such new warrant to the Holder prior the
consummation of such sale, transfer or lease. The provisions of this
Section 4(d) shall similarly apply to successive such sales, transfers and
leases.

 

(e)
IN-KIND DIVIDEND OR DISTRIBUTION. Upon the payment of a dividend or the making
of a distribution with respect to Common Stock in securities, money or property
other than Common Stock, the Holder shall be entitled to receive, upon exercise
or conversion of this Warrant, both the Warrant Stock and the kind and amount
of shares of securities, money and property that would have been receivable by
the Holder upon the payment of such dividend or distribution had the Holder
exercised this Warrant in full immediately prior to the record date for such
dividend or distribution (such additional securities, money and property, all
proceeds thereof and any other property substituted therefore, the “Additional
Property”); provided, however, that no additional Warrant Price shall be
payable by the Holder upon the exercise or conversion of this Warrant in
respect of such Additional Property. In the event that this Warrant is
exercised or converted in part, but not in whole, the Holder shall be entitled
to the portion of the Additional Property that is attributable to the Warrant
Stock actually received by the Holder upon such exercise or conversion. Any new
warrant that is issued to the Holder in lieu of this Warrant pursuant to
Sections 4(b), 4(c) or 4(d) shall be exercisable for such Additional Property
in addition to the property specified in such sections; provided, however, that
any Additional Property that is convertible or exchangeable by its terms into
Common Stock shall be treated, for purposes of calculating the Holder’s pro
rata portion in Section 4(d), as the number of additional shares of Common
Stock as such Additional Property is convertible or exchangeable into shares of
Common Stock, and such Additional Property shall otherwise be excluded from the
subject matter of the new warrant issued pursuant to such Section 4(d).
The provisions of this Section 4(e) shall similarly apply to successive
such dividends and distributions.

 

(f)
NO IMPAIRMENT. The Company shall not, by amendment of its Certificate of
Incorporation or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities or any other voluntary action,
avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed under this Warrant by the Company, but shall at all times
in good faith assist in carrying out of all the provisions of this Warrant and
in taking all such action as may be necessary or appropriate to protect the
Holder’s rights under this Warrant against impairment. If the Company takes any
action other than as described above that adversely affects the Holder’s rights
under this Warrant, the Warrant Price shall be adjusted downward in an
equitable manner.

 

(g)
NOTICE. The Company shall give the Holder written notice of any event described
in this Section 4 as soon as the Company has actual knowledge of such
event but in no event later than the effective time of such event or such
earlier time as shall be otherwise required pursuant to this Section 4.
Such notice shall provide a brief summary of the event (including a reference
to the subsection of this Section 4 which describes such event) and
the Holder’s rights as a result thereof and shall set forth, as and if
applicable, the Warrant Price as adjusted, the increased or decreased number of
shares of Warrant Stock purchasable upon the exercise of this Warrant, and
reasonable detail regarding the method of calculation of each. The Company also
agrees to notify the Holder in writing of any proposed public offering of any
class of equity securities of the Company at least thirty (30) days prior to
the effective date thereof.

 

5

 

5. MISCELLANEOUS.

 

(a)
NO SHAREHOLDER RIGHTS. This Warrant, by itself, as distinguished from any
Warrant Stock purchased hereunder, shall not entitle its holder to any of the
rights of a shareholder of the Company.

 

(b)
FRACTIONAL SHARES. No fractional shares shall be issuable upon exercise or
conversion of the Warrant and the number of shares of Warrant Stock to be
issued upon such exercise or conversion shall be rounded down to the nearest
whole share. If a fractional share interest would otherwise have arisen upon
any exercise or conversion of the Warrant, the Company shall eliminate such
fractional share interest by paying the Holder an amount computed by
multiplying the fractional interest by the Fair Market Value of a full share of
Warrant Stock on the date of exercise or conversion.

 

(c)
REPRESENTATIONS OF THE COMPANY.

 

(i) This Warrant has been duly and validly
authorized, executed and delivered by the Company and constitutes a valid and
binding agreement of the Company enforceable against the Company in accordance
with its terms. The execution and delivery of this Warrant is not, and the
issuance of the Warrant Stock upon exercise of this Warrant in accordance with
the terms hereof will not be, inconsistent with the Company’s Certificate of
Incorporation or bylaws, does not and will not contravene any law, governmental
rule or regulation, judgment or order applicable to the Company, and does not
and will not conflict with or contravene any provision of, or constitute a
default under, any material indenture, mortgage, contract or other instrument
of which the Company is a party or by which it is bound or require the consent
or approval of, the giving of notice to, the registration or filing with or the
taking of any action in respect of or by, any Federal, state or local
government authority or agency or other person, except for the filing of
notices pursuant to federal and state securities laws, which filings will be
effected by the time required thereby.

 

(ii) All Warrant Stock which may be issued upon the
exercise or conversion of this Warrant shall, upon issuance in accordance with
the terms hereof, be duly authorized, validly issued, fully paid and
nonassessable, and free of any pre-emptive rights, liens and encumbrances,
except for restrictions on transfer provided for herein or under applicable
federal and state securities laws.

 

(d)
RESERVATION OF WARRANT STOCK. At all times during the Exercise Period prior to
the full exercise or conversion of this Warrant, the Company will reserve from
its authorized and unissued Common Stock a sufficient number of shares to
provide for the issuance of Warrant Stock upon the full exercise of this
Warrant. Issuance of this Warrant shall constitute full authority to the
Company’s officers who are charged with the duty of executing stock

 

6

 

certificates
to execute and issue the necessary certificates for shares of Warrant Stock
issuable upon the exercise or conversion of this Warrant.

 

(e)
TRANSFER OF WARRANT. This Warrant may be transferred or assigned by the Holder,
in whole or in part, provided that such transfer or assignment is in compliance
with any restrictive legend set forth hereon. Such transfer shall be effected
without charge to the Holder hereof upon surrender of this Warrant with a
properly executed assignment at the principal office of the Company and,
thereafter, the Company shall issue a new warrant registered in the name of the
transferee. If the Warrant is being transferred in part the Company shall issue
new warrants, in each case evidencing the right to purchase the appropriate
number of shares of Warrant Stock, registered in the names of the Holder and
the transferee, as applicable. Upon any transfer of all or any part of this
Warrant to any transferee, such transferee shall be deemed the “Holder” of such
warrant as such term is used herein and shall be deemed the owner thereof for
all purposes. Each Holder, by taking or holding this Warrant, consents and
agrees to be bound by the provisions of this Warrant and consents and agrees
that this Warrant, when endorsed in blank, shall be deemed negotiable, and that
the holder hereof, when this Warrant shall have been so endorsed, may be
treated by the Company, at the Company’s option, and all other persons dealing
with this Warrant as the absolute owner hereof for any purpose and as the
person entitled to exercise the rights represented by this Warrant, or to the
transfer hereof on the books of the Company any notice to the contrary
notwithstanding, but until such transfer on such books, the Company may treat
the registered owner hereto as the owner for all purposes.

 

(f)
LOSS, THEFT, DESTRUCTION OR MUTILATION OF WARRANT. Upon receipt by the Company
of evidence reasonably satisfactory to it of the loss, theft, destruction or
mutilation of this Warrant, and in case of loss, theft or destruction, of
indemnity reasonably satisfactory to it, and upon reimbursement to the Company
of all reasonable expenses incidental thereto, and upon surrender and
cancellation of this Warrant, if mutilated, the Company will make and deliver a
new Warrant of like tenor (but with no additional rights or obligations) and
dated as of such cancellation, in lieu of this Warrant.

 

(g)
HEADINGS. The headings in this Warrant are for purposes of convenience and
reference only, and shall not be deemed to constitute a part hereof.

 

(h)
SATURDAYS, SUNDAYS, HOLIDAYS, ETC. If the last or appointed day for the taking
of any action or the expiration of any right required or granted herein shall
be a Saturday or a Sunday or shall be a legal holiday in the Commonwealth of
Massachusetts, then such action may be taken or such right may be exercised on
the next succeeding day that is not a Saturday, Sunday or legal holiday in the
Commonwealth of Massachusetts.

 

(i)
AMENDMENT AND WAIVER. Neither this Warrant nor any term hereof may be changed
or waived orally, but only by an instrument in writing signed by the Company
and the Holder of this Warrant.

 

(j)
NOTICES. All notices and other communications from the Company to the Holder of
this Warrant shall be delivered personally or mailed by first class mail,
postage prepaid, to the

 

7

 

address furnished to the Company in writing
by the last Holder of this Warrant who shall have furnished an address to the
Company in writing, and if mailed shall be deemed given three days after
deposit in the United States mail.

 

(k)
GOVERNING LAW. This Warrant shall be governed by the laws of the State of
Delaware, as such laws are applied to contracts to be entered into and
performed entirely in Delaware by Delaware residents.

 

	
  ISSUED:

  	
  October 27,
  2003

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  HEALTHGATE
  DATA CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  William S. Reece

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  William
  S. Reece

  
	
   

  	
   

  	
   

  	
  President
  & Chief Executive Officer

  

 

8

 

Attachment 1

 

NOTICE OF EXERCISE

 

TO:                            HEALTHGATE DATA CORP.

25 Corporate Drive, Suite 310

Burlington, MA 01803

 

1.                                       The undersigned hereby elects to purchase
shares of the Common Stock, par value $0.03 per share, of HealthGate Data Corp.
pursuant to the terms of the attached Warrant, and tenders herewith payment of
the purchase price in full, together with all applicable transfer taxes, if
any.

 

2.                                       Please issue a certificate or certificates
representing said shares of Common Stock in the name of the undersigned or in
such other name as is specified below:

 

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  
	
   

  
	
  ,200

  	
   

  	
   

  
	
  (Date)

  	
  (Name
  of Warrant Holder)

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  (Title
  and signature of authorized person)

  
							

 

9

 

Attachment 2

 

NOTICE OF CONVERSION

 

TO:                            HEALTHGATE DATA CORP.

25 Corporate Drive, Suite 310

Burlington, MA 01803

 

1.                                       The undersigned hereby elects to acquire
                  
shares of the Common Stock, par value $0.03 per share, of HealthGate Data Corp.
pursuant to the terms of the attached Warrant, by conversion of
                  
percent (    %) of the Warrant.

 

2.                                       Please issue a certificate or certificates
representing said shares of Common Stock in the name of the undersigned or in
such other name as is specified below:

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  
	
   

  
	
   

  
	
  ,200

  	
   

  	
   

  
	
  (Date)

  	
  (Name
  of Warrant Holder)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  (Title and signature of authorized person)

  
							

 

10

 

Attachment 3

 

INVESTMENT REPRESENTATION STATEMENT

 

Shares of Common Stock

(as defined in the attached Warrant) of

HEALTHGATE DATA CORP.

 

In
connection with the purchase of the above-listed securities, the undersigned
hereby represents to HealthGate Data Corp. (the “Company”) as follows:

 

(a)
Unless the securities to be received upon the exercise of the Warrant (the
“Securities”) are immediately saleable under Rule 144 or other exemption
from registration, the Securities will be acquired for investment for the
undersigned’s own account, not as a nominee or agent, and not with a view to
the sale or distribution of any part thereof, and the undersigned has no
present intention of selling, granting participation in or otherwise
distributing the same, but subject, nevertheless, to any requirement of law
that the disposition of its property shall at all times be within its control.

 

(b)
The undersigned understands that the Securities issuable upon exercise of the
Warrant at the time of issuance may not be registered under the Securities Act
of 1933, as amended (the “Act”), and applicable state securities laws, on the
ground that the issuance of such securities is exempt pursuant to
Section 4(2) of the Act and state law exemptions relating to offers and
sales not by means of a public offering, and that the Company’s reliance on
such exemptions is predicated on the undersigned’s representations set forth
herein.

 

(c)
The undersigned agrees that in no event will it make a disposition of any
Securities acquired upon the exercise of the Warrant unless and until (i) it
shall have notified the Company of the proposed disposition and shall have
furnished the Company with a statement of the circumstances surrounding the
proposed disposition, and (ii) it shall have furnished the Company with an
opinion of counsel reasonably satisfactory to the Company and Company’s counsel
to the effect that (A) appropriate action necessary for compliance with the Act
and any applicable state securities laws has been taken or an exemption from
the registration requirements of the Act and such laws is available, and (B)
the proposed transfer will not violate any of said laws.

 

(d)
The undersigned acknowledges that an investment in the Company is highly
speculative and represents that the undersigned is able to fend for
himself/herself/itself in the transactions contemplated by this Statement, has
such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of the undersigned’s investments,
and has the ability to bear the economic risks (including the risk of a total
loss) of such investment.  The
undersigned represents that he/she/it has had the opportunity to ask questions
of the Company concerning the Company’s business and assets and to obtain any
additional information which it considered necessary, and has had all questions
which have been asked by it satisfactorily answered by the Company.

 

11

 

(e)
The undersigned acknowledges that the Securities issuable upon exercise of the
Warrant must be held indefinitely unless subsequently registered under the Act
or an exemption from such registration is available. The undersigned is aware
of the provisions of Rule 144 promulgated under the Act which permit limited
resale of shares purchased in a private placement subject to the satisfaction
of certain conditions, including, among other things, the existence of a public
market for the shares, the availability of certain current public information
about the Company, the resale occurring not less than one (1) year after a
party has purchased and paid for the security to be sold, the sale being
through a “broker’s transaction” or in transactions directly with a “market
makers” (as provided by Rule 144(f)) and the number of shares being sold during
any three-month period not exceeding specified limitations.

 

	
  Dated:

  	
  , 200

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Typed
  or Printed Name)

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

12Exhibit
4.2

 

REGISTRATION RIGHTS AGREEMENT

 

 

THIS AGREEMENT dated as of October 27, 2003 is
made between HealthGate Data Corp., a Delaware corporation (the “Company”), EBM
Solutions, Inc. (“EBM”) and the persons and entities listed on Schedule 1
hereto (collectively EBM and the persons and entities listed on Schedule 1
shall be referred to as the “Purchasers”).

 

WHEREAS, the Company and EBM have entered into an
Asset Purchase Agreement dated October 3, 2003 (the “Asset Purchase
Agreement”), pursuant to which the Company shall issue to EBM shares of the
Company’s Common Stock and a warrant for the purchase of 333,333 shares of the
Company’s Common Stock (the “Warrant”);

 

WHEREAS, the Company and certain of the Purchasers
have entered into a Stock Purchase Agreement dated October 3, 2003 (the
“Stock Purchase Agreement”) pursuant to which the Purchasers shall acquire
shares of the Company’s Common Stock;  and

 

WHEREAS, the Company and the Purchasers desire to
provide for certain arrangements with respect to the registration of shares of
capital stock of the Company under the Securities Act of 1933;

 

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

 

1.                                       Demand
Registrations.

 

(a)  Requests
for Registration.  At any time commencing January 1, 2005, the
holders of at least 40% of the Registrable Securities may request registration
under the Securities Act of all or part of their Registrable Securities on Form
S-1 or any similar or successor long-form registration (“Long-Form
Registrations”), and the holders of at least 25% of the Registrable Securities
may request registration under the Securities Act of all or part of their
Registrable Securities on Form S-3 or any similar or successor short-form
registration (“Short-Form Registrations”), if a Short-Form Registration is then
available to the Company. Within twenty business days after receipt of any such
request, the Company will give written notice of such requested registration to
all other holders of Registrable Securities and will include in such
registration all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within 15 days after the
receipt of the Company’s notice. All registrations requested pursuant to this
Section 1(a) are referred to herein as “Demand Registrations”.

 

(b)  Long-Form
Registration.  The holders of
Registrable Securities will be entitled to request one Long-Form Registration
in which the Company will pay all Registration Expenses; provided that the
aggregate offering value of the Registrable Securities requested to be
registered in the Long-Form Registration must equal at least $1,000,000.  A registration will not count as a

 

 

Long-Form Registration until it has become effective unless
discontinued at the request of the holders of the Registrable Securities
included therein.

 

(c)  Short-Form
Registrations.  In addition to the
Long-Form Registration provided pursuant to Section l(b), the holders of Registrable
Securities will be entitled to request not more than two Short-Form
Registrations in which the Company will pay all Registration Expenses; provided
that the offering value of the Registrable Securities requested to be
registered in any Short-Form Registration shall be at least $1,000,000 and not
more than one Short-Form Registration may be effected in any calendar year.
Demand Registrations will be Short-Form Registrations whenever the Company is
permitted to use any applicable short form.

 

(d)  Priority
on Demand Registrations.  If a
Demand Registration is an underwritten offering, and the managing underwriters
advise the Company in writing that in their opinion the number of Registrable
Securities and other securities entitled to be included exceeds the number of
Registrable Securities and other securities which can be sold in such offering,
then, the Company will include in such registration (i) first, securities with
senior registration rights under Existing Registration Rights Agreements, and
(ii) second, the Registrable Securities and other securities requested to be
included in such registration, pro rata among the holders of such securities on
the basis of the number of securities so requested to be included therein.  Any Persons other than holders of
Registrable Securities who participate in Demand Registrations must pay their
share of the Registration Expenses as provided in Section 5 unless otherwise
agreed to by the Company’s board of directors.

 

For the purpose of this Agreement, “Existing Registration
Rights Agreements” shall mean the following: (i) the Company’s Registration
Agreement with David Friend and William Nelson, dated March 16, 1995, (iii) the
Company’s Registration Agreement with Purchasers of Series C Shares, dated
August 21, 1996, (iv) the Company’s Registration Agreement with Blackwell
Science, Ltd., dated October 20, 1996, (v) the Company’s Registration Agreement
with Petra Capital, LLC, dated March 26, 1998.

 

(e)  Restrictions.  If, at the time of any request to register
Registrable Securities pursuant to this Section 1, the Company

 

(i)  has filed,
or has definite plans to file within 90 days after the time of the request, a
registered public offering as to which the holders may include Registrable
Securities pursuant to Section 2, or

 

(ii)  is
engaged in any other activity which, in the good faith determination of the
Company’s board of directors, would be adversely affected by the requested
registration to the material detriment of the Company,

 

then the Company’s board of directors may at its option direct that
such request be delayed for a period not in excess of six months from the
effective date of such offering or the date of commencement or compilation, as
applicable, of such other activity, as the case may be, and such right to delay
a requested registration may not be exercised by the Company more than once in
any

 

2

 

12-month period.  If the holders
of Registrable Securities included therein elect to discontinue a delayed
registration, the Company will pay all of the Registration Expenses in
connection therewith, and such registration will not count as one of the
permitted Demand Registrations. The Company will not in any event be obligated
to effect any Demand Registration within six months after the effective date of
a previous Demand Registration.

 

(f)  Selection
of Underwriters.  The holders of a
majority of the Registrable Securities included in any Demand Registration will
have the right to select the investment banker(s) and manager(s) to administer
the offering, subject to the Company’s approval which will not be unreasonably
withheld.

 

2.                                       Piggyback
Registrations.

 

(a)  Right
to Piggyback.  Whenever the Company
proposes to register any of its securities under the Securities Act (other than
pursuant to a Demand Registration) and the registration form to be used may be
used for the registration of Registrable Securities (a “Piggyback
Registration”), the Company will give prompt written notice to all holders of
Registrable Securities of its intention to effect such a registration and will
include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within 15 days
after the Company gives its notice.

 

(b)  Piggyback
Expenses.  The Registration Expenses
of the holders of Registrable Securities will be paid by the Company in all
Piggyback Registrations.

 

(c)  Priority
on Initial Public Offering Registration. 
If the Company goes private and subsequently a Piggyback Registration is
an underwritten primary registration on behalf of the Company which is an
initial public offering, and the managing underwriters advise the Company in
writing that in their opinion the number of securities requested to be included
in such registration exceeds the number which can be sold in such offering, the
Company will include in such registration (i) first, the securities the Company
proposes to sell, (ii) second, securities with senior registration rights under
Existing Registration Rights Agreements, (iii) third, the Registrable
Securities requested to be included in such registration, pro rata among the
holders of such Registrable Securities on the basis of the number of shares
owned by such holders, and (iv) fourth, other securities requested to be
included in such registration.

 

(d)  Priority
on Primary and Secondary Registrations. 
If a Piggyback Registration is an underwritten primary registration on
behalf of the Company which is not an initial public offering or a secondary
registration on behalf of holders of the Company’s securities, and the managing
underwriters advise the Company in writing that in their opinion the number of
securities requested to be included in such registration exceeds the number which
can be sold in such offering, the Company will include in such registration (i)
first, securities with senior registration rights under Existing Registration
Rights Agreements, and (ii) second, the Registrable Securities and other
securities requested to be included in such registration, pro rata among the
holders of such securities on the basis of the number of securities so
requested to be included therein.

 

3

 

(e)  Other
Registrations.  If the Company has
previously filed a registration statement with respect to Registrable
Securities pursuant to Section 1 or pursuant to this Section 2, and if such
previous registration has not been withdrawn or abandoned, the Company will not
file or cause to be effected any other registration of any of its equity
securities or securities convertible or exchangeable into or exercisable for
its equity securities under the Securities Act (except on Form S-8 or any
successor form), whether on its own behalf or at the request of any holder or
holders of such securities, until a period of at least three months has elapsed
from the effective date of such previous registration, except in the case that
the registration is a firm commitment underwriting, in which event the restrictions
contained in this Section 2(e) will terminate upon the closing of such firm
commitment underwriting.

 

3.  Holdback
Agreements.

 

(a)  Each
holder of Registrable Securities agrees not to effect any public sale or
distribution of equity securities of the Company, or any securities convertible
into or exchangeable or exercisable for such securities, during the seven days
prior to and the 180-day period beginning on the effective date of any
underwritten Demand Registration or any underwritten Piggyback Registration in
which Registrable Securities are included (except as part of such underwritten
registration) unless the underwriters managing such registered public offering
otherwise agree.

 

(b)  The
Company agrees (i) not to effect any public sale or distribution of its equity
securities, or any securities convertible into or exchangeable or exercisable
for such securities, during the seven days prior to and during the 180-day
period beginning on the effective date of any underwritten Demand Registration or
any underwritten Piggyback Registration in which Registrable Securities are
included (except as part of such underwritten registration or pursuant to
registrations on Form S-8 or any successor form) unless the underwriters
managing such registered public offering otherwise agree, and (ii) to use its
best efforts to cause each Person who holds at least 10% of the Common Stock of
the Company (on a fully-diluted basis), acquired at any time after the date of
this Agreement (other than in a registered public offering), to agree not to
effect any public sale or distribution of any such securities during such
period (except as part of such underwritten registration, if otherwise
permitted) unless the underwriters managing such registered public offering
otherwise agree.

 

4.  Registration
Procedures.  Whenever the holders of
Registrable Securities have requested that any Registrable Securities be
registered pursuant to this Agreement, the Company will use its best efforts to
effect the registration and the sale of such Registrable Securities in
accordance with the intended method of disposition thereof, and pursuant
thereto the Company will as expeditiously as possible:

 

(a)  prepare
and file with the Securities and Exchange Commission a registration statement
with respect to such Registrable Securities, and use its best efforts to cause
such registration statement to become effective (provided that before filing a
registration statement or prospectus or any amendments or supplements thereto,
the Company will furnish to the counsel selected by the holders of a majority
of the Registrable Securities covered by such registration statement copies of
all such documents proposed to be filed, which documents will be subject to the

 

4

 

review of such counsel);

 

(b)  prepare
and file with the Securities and Exchange Commission such amendments and
supplements to such registration statement and the prospectus used in
connection therewith as may be necessary to keep such registration statement
effective for a period of not less than 90 days and comply with the provisions
of the Securities Act with respect to the disposition of all securities covered
by such registration statement during such period in accordance with the
intended methods of disposition by the sellers thereof set forth in such
registration statement;

 

(c)  furnish to
each seller of such Registrable Securities such number of copies of such
registration statement, each amendment and supplement thereto, the prospectus
included in such registration statement (including each preliminary prospectus)
and such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by such seller;

 

(d)  use its
best efforts to register or qualify such Registrable Securities under such
other securities or blue sky laws of such jurisdictions as any seller
reasonably requests and do any and all other acts and things which may be
reasonably necessary or advisable to enable such seller to consummate the
disposition in such jurisdictions of the Registrable Securities owned by such
seller (provided, that the Company will not be required to (i) qualify
generally to do business in any jurisdiction where it would not otherwise be required
to qualify but for this subparagraph, (ii) subject itself to taxation in any
such jurisdiction or (iii) consent to general service of process in any such
jurisdiction);

 

(e)  notify
each seller of such Registrable Securities, at any time when a prospectus
relating thereto is required to be delivered under the Securities Act, of the
happening of any event as a result of which the prospectus included in such
registration statement contains an untrue statement of a material fact or omits
any fact necessary to make the statements therein not misleading, and, at the
request of any such seller, the Company will prepare a supplement or amendment
to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus will not contain an untrue statement of
a material fact or omit to state any fact necessary to make the statements
therein not misleading;

 

(f)  cause all
such Registrable Securities to be listed on each securities exchange on which
similar securities issued by the Company are then listed;

 

(g)  provide a
transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

 

(h)  enter into
such customary agreements (including an underwriting agreement in customary
form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably
request in order to expedite or facilitate the disposition of such Registrable
Securities; and 

 

(i)  make
available for inspection by any seller of such Registrable Securities, any

 

5

 

underwriter participating in any disposition pursuant to this
Agreement, and any attorney, accountant or other agent retained by any such
seller or underwriter, all financial and other records, pertinent corporate
documents and properties of the Company, and cause the Company’s officers,
directors and employees to supply all information reasonably requested by any
such seller, underwriter, attorney, accountant or agent in connection with such
registration statement.

 

In connection with any Demand Registration or Piggyback Registration,
the holders of Registrable Securities will expeditiously supply the Company with
all information and copies of all documents reasonably necessary to effect such
registration in compliance with the Securities Act and the rules and
regulations thereunder and shall otherwise cooperate with the Company and its
counsel in expediting the effectiveness of any such registration.

 

5.  Registration
Expenses.

 

(a)  All
expenses incident to the Company’s performance of or compliance with this
Agreement, including without limitation all registration and filing fees, fees
and expenses of compliance with securities or blue sky laws, printing expenses,
messenger and delivery expenses, and fees and disbursements of counsel for the
Company and all independent certified public accountants, underwriters
(excluding discounts and commissions and excluding legal fees and disbursements
of any counsel for the holders of Registrable Securities) and other Persons
retained by the Company (all such expenses being herein called “Registration
Expenses”) will be borne as provided in this Agreement, except that the Company
will, in any event, pay its internal expenses (including without limitation all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit, the expense of any
liability insurance and the expenses and fees for listing the securities to be
registered on each securities exchange on which similar securities issued by
the Company are then listed.

 

(b)  To the
extent Registration Expenses are not required to be paid by the Company, each
holder of securities included in any registration hereunder will pay those
Registration Expenses allocable to the registration of such holder’s securities
so included, and any Registration Expenses not so allocable will be borne by
all sellers of securities included in such registration in proportion to the
aggregate selling price of the securities to be so registered.

 

6.  Indemnification.

 

(a)  The
Company agrees to indemnify, to the extent permitted by law, each holder of
Registrable Securities and, as applicable, such holder’s officers and directors
and each Person who controls such holder (within the meaning of the Securities
Act) against all losses, claims, damages, liabilities and expenses caused by
any untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment
thereof or supplement thereto or any omission or alleged omission of a material
fact required to be stated therein or necessary to make the statements therein
not misleading, except insofar as the same are caused by or contained in any
information furnished in writing to the Company by such holder expressly for
use therein or by such holder’s failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after the
Company has

 

6

 

furnished such holder with a sufficient number of copies of the same.

 

(b)  In
connection with any registration statement in which a holder of Registrable
Securities is participating, each such holder will furnish to the Company in
writing such information and affidavits as the Company reasonably requests for
use in connection with any such registration statement or prospectus and, to
the extent permitted by law, will indemnify the Company, its directors and
officers and each Person who controls the Company (within the meaning of the
Securities Act) against all losses, claims, damages, liabilities and expenses
resulting from any untrue or alleged untrue statement of material fact
contained in the registration statement, prospectus or preliminary prospectus
or any amendment thereof or supplement thereto or any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading, but only to the extent that such untrue
statement or omission or alleged untrue statement or omission is contained in
any information or affidavit so furnished in writing by such holder; provided,
that the obligation to indemnify will be several, not joint and several, among
such holders of Registrable Securities participating in the registration and
the liability of each such holder of Registrable Securities will be in
proportion to and limited to the gross amount received by such holder from the
sale of Registrable Securities pursuant to such registration statement.

 

(c)  Any Person
entitled to indemnification hereunder will (i) give prompt written notice to
the indemnifying party of any claim with respect to which such person seeks
indemnification and (ii) unless in the reasonable judgment of counsel for such
indemnified party (given in writing) a conflict of interest between such
indemnified and indemnifying parties exists with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably
satisfactory to the indemnified party. If such defense is so assumed, the
indemnifying party will not be subject to any liability for any settlement made
by the indemnified party without the indemnifying party’s consent (but such
consent will not be unreasonably withheld). An indemnifying party who is not
entitled to, or elects not to, assume the defense of a claim will not be
obligated to pay the fees and expenses of more than one counsel for all parties
indemnified by such indemnifying party with respect to such claim, unless in
the reasonable judgment of any indemnified party a conflict of interest may
exist between such indemnified party and any other of such indemnified parties
with respect to such claim.

 

(d)  The
indemnification provided for under this Agreement will remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified
party or any officer, director or controlling Person of such indemnified party
and will survive the transfer of securities. The Company also agrees to make
such provisions for contribution to any indemnified party in the event the
Company’s indemnification is unavailable for any reason as are reasonably requested
by any indemnified party.

 

7.  Participation
in Underwritten Registrations.  No
Person may participate in any underwritten registration hereunder unless such
Person (a) agrees to sell such Person’s securities on the basis provided in the
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements and (b) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents required
under the terms of such

 

7

 

underwriting arrangements.

 

8.  Subordination
to Existing Registration Rights Agreements.  All the Company’s obligations and all Purchasers’ rights under
this Agreement are subject and subordinate to the Company’s obligations and
other stockholders rights under the Existing Registration Rights Agreement.

 

9.  Definitions.

 

(a)  The term
“Registrable Securities” means (i) any Common Stock issued (A) to EBM under the
Asset Purchase Agreement, (B) under the Warrant and (C) to Purchasers under the
Stock Purchase Agreement, (ii) any Common Stock issued or issuable
with respect to the Common Stock referred to in clause (i) by way of a stock
dividend or stock split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization, and (iii) any other shares of
Common Stock held by Persons holding securities described in clauses (i) or
(ii) above. As to any particular Registrable Securities, such securities will
cease to be Registrable Securities when they have ceased to be Restricted
Securities under the particular Purchase Agreement pursuant to which such
securities were issued; provided that any securities which cease to be
Restricted Securities solely because they have become eligible for transfer
pursuant to Rule 144 (or any similar rule then in force) will not cease to be
Registrable Securities until they have actually been sold in compliance with
Rule 144 (or any similar rule then in force). For purposes of this Agreement, a
Person will be deemed to be a holder of Registrable Securities whenever such
Person has the right to acquire such Registrable Securities (by conversion or
otherwise), but disregarding any legal restrictions upon the exercise of such
right), whether or not such acquisition has actually been effected.

 

(b)  Unless
otherwise stated, other capitalized terms contained herein have the meanings
set forth in the Purchase Agreement.

 

10.                                 Term.  This Agreement and all Purchaser’s rights
under this Agreement shall terminate on October 31, 2007.

 

11.                                 Miscellaneous.

 

(a)  No
Inconsistent Agreements.  The
Company will not hereafter enter into any agreement with respect to its
securities which is inconsistent with the rights granted to the holders of
Registrable Securities in this Agreement. 
The granting of piggy-back registration rights or demand registration
rights that are pari passu or subordinated to Purchasers’ rights hereunder
shall not be a breach of this Agreement by the Company.

 

(b)  Adjustments
Affecting Registrable Securities. 
The Company will not take any action, or permit any change to occur,
with respect to its securities which would materially and adversely affect the
ability of the holders of Registrable Securities to include such Registrable
Securities in a registration undertaken pursuant to this Agreement or which
would materially and adversely affect the marketability of such Registrable
Securities in any such registration (including,

 

8

 

without limitation, effecting a stock split or a combination of
shares).

 

(c)  Remedies.  Any Person having rights under any provision
of this Agreement will be entitled to enforce such rights specifically, to
recover damages caused by reason of any breach of any provision of this
Agreement and to exercise all other rights granted by law.

 

(d)  Amendments
and Waivers.  Except as otherwise
provided herein, the provisions of this Agreement may be amended and the
Company may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, only if the Company has obtained the
written consent of holders of a majority of the Registrable Securities.

 

(e)  Successors
and Assigns.  All covenants and
agreements in this Agreement by or on behalf of any of the parties hereto will
bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not; provided, however, that no
transferee of any Purchaser shall be entitled to any rights hereunder unless
such transferee is a member of the “affiliated group” of the Purchaser (as
defined below). The Company shall be given written notice by such Purchaser a
reasonable time after such transfer stating the name and address of the
transferee and identifying the securities with respect to which its rights
hereunder are being assigned. Any transferee to whom rights hereunder are
transferred shall, as a condition to such transfer, deliver to the Company a
written instrument by which the transferee agrees to be bound by the
obligations imposed upon such Purchaser hereunder to the same extent as if such
transferee were an original party hereto. Notwithstanding the foregoing, any
Purchaser which is a partnership, limited liability company or corporation may
transfer rights granted to it to any partner or stockholder thereof to whom
Registrable Securities are transferred and who delivers to the Company a
written instrument by which such transferee agrees to be bound by the
obligations imposed upon such Purchaser hereunder to the same extent as if such
transferee were an original party hereto. As used herein, the term “affiliated
group” includes a Purchaser’s spouse, parents, siblings and descendants
(whether natural or adopted) and any trust solely for the benefit of such
Purchaser and/or such Purchaser’s spouse, parents, siblings and/or descendants
and, in the case of a Purchaser which is a corporation, limited liability
company or partnership, any shareholder or partner thereof or any entity which
controls, is controlled by or is under common control with such corporation,
limited liability company or partnership.

 

(f)  Severability.  Whenever possible, each provision of this
Agreement will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision will be ineffective only to
the extent of such prohibition or invalidity, without invalidating the
remainder of this Agreement.

 

(g)  Counterparts.  This Agreement may be executed
simultaneously in two or more counterparts, any one of which need not contain
the signatures of more than one party, but all such counterparts taken together
will constitute one and the same Agreement.

 

(h)  Descriptive
Headings.  The descriptive headings
of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

 

9

 

(i)  Governing
Law.  The corporate law of the State
of Delaware will govern all issues concerning the relative rights of the
Company and its stockholders. All other questions concerning the construction,
validity and interpretation of this Agreement and the schedule hereto will be
governed by the internal law, and not the law of conflicts, of the Commonwealth
of Massachusetts.

 

(j)  Notices.  All notices, demands or other communications
to be given or delivered under or by reason of the provisions of this Agreement
will be in writing and will be deemed to have been given when delivered
personally or mailed by certified or registered mail, return receipt requested
and postage prepaid, to the recipient. Such notices, demands and other
communications will be sent

 

 

	
   

  	
  To the Company:

  	
  HealthGate Data Corp.

  25 Corporate Drive, Suite 310

  Suite 310

  Burlington, MA 01803

  Attention: William S. Reece, President

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
  Stephen M. Kane, Esq.

  Rich May, a Professional Corporation

  176 Federal Street

  Boston, MA 02110

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To The Purchaser:

  	
  At the address as maintained

  on the Company’s records.

  	
   

  	
   

  

 

or to such other address or to the attention of such other person as
the recipient party has specified by prior written notice to the sending party.

 

10

 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement on the date first written above.

 

	
   

  	
  HEALTHGATE
  DATA CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William S. Reece

  	
   

  
	
   

  	
   

  	
  Name: William S. Reece 

  Title: Chairman and Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  EBM
  SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Eric Thrailkill

  	
   

  
	
   

  	
   

  	
  Name:  Eric
  Thrailkill

  	
   

  
	
   

  	
   

  	
  Title: 
  President and Chief Operating Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  /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
  PARNTERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ E. Townes Duncan

  	
   

  
	
   

  	
   

  	
  Name: E. Townes Duncan

  
	
   

  	
   

  	
  Title: General Partner

  
							

 

11

 

	
   

  	
  VANDERBILT
  UNVERSITY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William T. Spitz

  	
   

  
	
   

  	
   

  	
  Name: William T. Spitz

  
	
   

  	
   

  	
  Title:  Vice
  Chancellor

  

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00057-of-00352.parquet"}]]