Document:

Amendment No. 3 to Credit Agreement

  
 Exhibit 10(i)

  
 AMENDMENT NO. 3 TO CREDIT AGREEMENT

  
 THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT (this
“Amendment”) is made and entered into as of December 18, 2003 by and among NDCHealth Corporation, a Delaware corporation (the “Borrower”), the lenders (the “Lenders”) party hereto, Merrill Lynch
Capital, a division of Merrill Lynch Business Financial Services Inc., as Administrative Agent (in such capacity, the “Administrative Agent”) and Swing Line Lender (in such capacity, the “Swing Line Lender”), Credit
Suisse First Boston, as Syndication Agent (in such capacity, the “Syndication Agent”), Bank of America, N.A., as Documentation Agent (in such capacity, the “Documentation Agent”) and LaSalle Bank National
Association, as L/C Issuer (in such capacity, the “L/C Issuer”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Borrower, the Lenders, the Administrative Agent, the Swing Line Lender, the Syndication Agent, the Documentation Agent and the L/C Issuer are
parties to that certain Credit Agreement, dated as of November 26, 2002, as amended by Letter Amendment and Waiver No. 1, dated as of May 27, 2003, and as amended by Letter Amendment No. 2, dated as of August 26, 2003 (as so amended and otherwise
modified, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders, the Swing Line Lender and the L/C
Issuer have made certain financial accommodations available to the Borrower; 
  
 WHEREAS, the Borrower desires to create a new class of Term Loans under the Credit Agreement (the “Term A Loans”) having identical terms with, having the same rights and obligations under the Loan
Documents as, and in the same aggregate principal amounts as, the Term Loans, as set forth in the Loan Documents, except as such terms are amended hereby; 
  
 WHEREAS, each Term Lender who executes and delivers this Amendment shall be deemed, on and concurrently with the occurrence of the Amendment No. 3
Effective Date (as defined herein), to have exchanged its Term Commitment and Term Loans (which Term Commitment and Term Loans shall thereafter be deemed terminated and refinanced in full) for a Term A Commitment (a “Term A
Commitment”) and Term A Loans in at least the same aggregate principal amount as such Lender’s outstanding Term Loans and as set forth in Schedule I to this Amendment, and such Lender shall thereafter become a Term A Lender (each, a
“Term A Lender”); 
  
 WHEREAS, each Person who
executes and delivers this Amendment as an Additional Term A Lender (each, an “Additional Term A Lender”), will make a Term A Loan on the Amendment No. 3 Effective Date (as defined herein) (each, an “Additional Term A
Loan”) to the Borrower in an aggregate principal amount equal to the amount set forth opposite its name on Schedule I to this Amendment, the proceeds of which will be used by the Borrower to 

  

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refinance in full the outstanding principal amount of Term Loans of Term Lenders, if any, who do not execute and deliver this Amendment; 
  
 WHEREAS, the Borrower shall pay to each Term Lender all accrued and unpaid
interest on its Term Loans to (but not including) the Amendment No. 3 Effective Date on the Amendment No. 3 Effective Date; 
  
 WHEREAS, the Borrower desires to create a new class of Revolving Credit Loans under the Credit Agreement (the “Revolving Credit A Loans”)
having identical terms with, having the same rights and obligations under the Loan Documents as, and in the same aggregate principal amounts as, the Revolving Credit Loans, as set forth in the Loan Documents, except as such terms are amended hereby;

  
 WHEREAS, each Revolving Credit Lender who executes and
delivers this Amendment shall be deemed, on and concurrently with the occurrence of the Amendment No. 3 Effective Date, to have exchanged its Revolving Credit Commitment and its Revolving Credit Loans (which Revolving Credit Commitment and Revolving
Credit Loans shall thereafter be deemed terminated and refinanced in full) for a Revolving Credit A Commitment (a “Revolving Credit A Commitment”) and Revolving Credit A Loans in at least the same respective aggregate principal
amounts as such Lender’s outstanding Revolving Credit Commitments and Revolving Credit Loans and as respectively set forth in Schedule I to this Amendment, and such Lender shall thereafter become a Revolving Credit A Lender (each, a
“Revolving Credit A Lender”); 
  
 WHEREAS, each
Person who executes and delivers this Amendment as an Additional Revolving Credit A Lender (each, an “Additional Revolving Credit A Lender”), will have a Revolving Credit A Commitment and will make a Revolving Credit A Loan on the
Amendment No. 3 Effective Date (each, an “Additional Revolving Credit A Loan”) to the Borrower in the respective aggregate principal amounts equal to the respective amounts set forth opposite its name on Schedule I to this
Amendment, the proceeds of such Revolving Credit A Loans being used by the Borrower to refinance in full the outstanding principal amount of Revolving Credit Loans (and such Revolving Credit A Commitments to replace the Revolving Credit Commitments)
of Revolving Credit Lenders, if any, who do not execute and deliver this Amendment; 
  
 WHEREAS, the Borrower shall pay to each Revolving Credit Lender all accrued and unpaid interest on its Revolving Credit Loan to (but not including) the Amendment No. 3 Effective Date on the Amendment No. 3 Effective
Date; and 
  
 WHEREAS, to effectuate the foregoing and a number of
other modifications to the Credit Agreement (including, without limitation, to eliminate the floor for Eurodollar Rate Loans), the Borrower has requested that the Lenders, the Administrative Agent, the Swing Line Lender, the Syndication Agent, the
Documentation Agent and the L/C Issuer amend certain provisions of the Credit Agreement and waive certain Events of Default, and subject to the terms and conditions hereof, the Lenders, the Administrative Agent, the Swing Line Lender, the
Syndication Agent, the Documentation Agent and the L/C Issuer are willing to do so; 
  

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 NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt of all of which are
acknowledged, the Borrower, the Lenders, the Administrative Agent, the Swing Line Lender, the Syndication Agent, the Documentation Agent and the L/C Issuer agree as follows: 
  
 1. Amendments. 
  
 (a) Section 1.01 of the Credit Agreement is hereby amended by replacing the definition of “Applicable Rate” in its entirety with the following
definition: 
  
 “Applicable Rate” means (a) with
respect to Term Loans, a percentage per annum equal to (i) for Eurodollar Rate Loans, the Eurodollar Rate then in effect for such Term Loans plus 2.75%; and (ii) for Base Rate Loans, the Base Rate then in effect for such Term Loans plus 1.75%; (b)
with respect to Revolving Credit Loans (including Letters of Credit), a percentage per annum equal to, from time to time, the following percentages per annum, based upon the Consolidated Total Leverage Ratio as set forth below and (c) with respect
to the Commitment Fee, a percentage per annum equal to 0.50%: 
  

	 Applicable Rate

	 
	 	  	 	  	Eurodollar
Rate +

	 	 	 	 
	 Pricing
Level

	  	 Consolidated
 Total Leverage
Ratio

	  	Letters of
Credit

	 	 	Base
Rate

	 
	 I
	  	Greater than or equal to 3.00:1.00	  	2.75	%	 	1.75	%
	 II
	  	Greater than or equal to 2.50:1.00 but less than Level I	  	2.50	%	 	1.50	%
	 III
	  	Greater than or equal to 2.00:1.00 but less than Level II	  	2.25	%	 	1.25	%
	 IV
	  	Less than 2.00:1.00	  	2.00	%	 	1.00	%

  

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 The Applicable Rate for each Revolving Credit Loan, commissions on Letters of Credit and Commitment Fees
shall be determined by reference to the Consolidated Total Leverage Ratio in effect from time to time; provided, that if at any time the actual or implied rating of the Borrower’s senior long-term unsecured debt is at or above Ba2 from
Moody’s and at or above BB from S&P, then, for Revolving Credit Loans and commissions on Letters of Credit, the Applicable Rate for Revolving Credit Loans and commissions on Letters of Credit shall be the percentage per annum specified in
the grid above minus 0.25%; provided, however, that (A) no change in the Applicable Rate shall be effective until five Business Days after the date on which the Administrative Agent receives the financial statements required to
be delivered pursuant to Section 6.01(a) or (b), as the case may be, and a duly completed Compliance Certificate signed by a Responsible Officer of the Borrower demonstrating such Consolidated Total Leverage Ratio and (B) the
Applicable Rate shall be at Pricing Level I for so long as the Borrower has not submitted to the Administrative Agent the information described in clause (A) of this proviso as and when required under Section 6.01(a) or (b), as the
case may be, and, in the case of Revolving Credit Loans and Letters of Credit, for so long as an Event of Default shall have occurred and be continuing if requested by the Required Lenders. 
  
 (b) Section 1.01 of the Credit Agreement is hereby further amended by
amending the definition of “Change of Control” to delete the following phrase from the beginning of the first sentence of clause (c) thereof: 
  
 “the Borrower shall have entered into a contract or arrangement that, upon consummation thereof, will result in” 
  
 (c) Section 1.01 of the Credit Agreement is hereby further amended by
replacing the definition of “NDC Plaza Transaction” in its entirety with the following definition: 
  
 “NDC Plaza Transaction” means the potential sale or sale and leaseback of the NDC Plaza Property or any portion thereof. 
  
 (d) Section 1.01 of the Credit Agreement is hereby further amended by
inserting the following new definitions therein in the appropriate alphabetical order: 
  
 “Additional Revolving Credit A Borrowing” means a borrowing consisting of simultaneous Additional Revolving Credit A Loans of the same Type made by the Additional Revolving Credit A Lenders.

  
 “Additional Revolving Credit A Commitment”
means, with respect to an Additional Revolving Credit A Lender, the commitment of such Additional Revolving Credit A Lender to make Revolving Credit A Loans that are Additional Revolving Credit A Loans from and after the Amendment No. 3 Effective
Date, in an amount in Dollars set forth next to 

  

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the name of such Additional Revolving Credit A Lender under the heading “Revolving Credit A Commitment” on Schedule I to Amendment No. 3. The
aggregate amount of the Additional Revolving Credit A Commitments shall equal the amount of the Revolving Credit Commitments of Revolving Credit Lenders that do not execute and deliver Amendment No. 3 on or prior to the Amendment No. 3 Effective
Date. 
  
 “Additional Revolving Credit A Lender”
means a Person with an Additional Revolving Credit A Commitment to make Additional Revolving Credit A Loans to the Borrower from and after the Amendment No. 3 Effective Date. 
  
 “Additional Revolving Credit A Loan” means a revolving credit loan or revolving credit loans in Dollars
made pursuant to Section 2.04A of this Agreement from and after the Amendment No. 3 Effective Date, such Loans being a subset of the Revolving Credit A Loans. 
  
 “Additional Term A Borrowing” means a borrowing consisting of simultaneous Additional Term A Loans of the
same Type made by the Additional Term A Lenders. 
  
 “Additional Term A Commitment” means, with respect to an Additional Term A Lender, the commitment of such Additional Term A Lender to make Additional Term A Loans on the Amendment No. 3 Effective Date, in an amount in
Dollars set forth next to the name of such Additional Term A Lender on Schedule I to Amendment No. 3. The aggregate amount of the Additional Term A Commitments shall equal the outstanding principal amount of Term Loans of Term Lenders that do not
execute and deliver Amendment No. 3 on or prior to the Amendment No. 3 Effective Date. 
  
 “Additional Term A Lender” means a Person with an Additional Term A Commitment to make Additional Term A Loans to the Borrower on the Amendment No. 3 Effective Date. 
  
 “Additional Term A Loan” means a term loan or term loans in
Dollars made pursuant to Section 2.02A of this Agreement on the Amendment No. 3 Effective Date, such Loans being a subset of the Term A Loans. 
  
 “Amendment No. 3” means Amendment No. 3, dated as of December 18, 2003 to this Agreement among the Borrower, the Lenders, the
Administrative Agent, the Swing Line Lender, the Syndication Agent, the Documentation Agent and the L/C Issuer. 
  
 “Revolving Credit A Borrowing” means a borrowing consisting of simultaneous Revolving Credit A Loans of the same Type made by the
Revolving Credit A Lenders. 
  

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 “Revolving Credit A Commitment” means, with respect to a Revolving Credit Lender, the
agreement of such Revolving Credit Lender to exchange its Revolving Credit Commitments for an equal aggregate amount of Revolving Credit A Commitments on the Amendment No. 3 Effective Date, as evidenced by such Revolving Credit Lender executing and
delivering Amendment No. 3; provided, that each such Revolving Credit Lender’s Revolving Credit Commitment shall be deemed terminated concurrently with the exchange for its Revolving Credit A Commitment, if any, on and concurrently with
the occurrence of the Amendment No. 3 Effective Date. 
  
 “Revolving Credit A Facility” means, at any time, the aggregate amount of the Revolving Credit A Lenders’ Commitments at such time. 
  
 “Revolving Credit A Lender” means, collectively, (a) each Revolving Credit Lender that executes and
delivers Amendment No. 3 on or prior to the Amendment No. 3 Effective Date and (b) each Additional Revolving Credit A Lender. 
  
 “Revolving Credit A Loan” means a revolving credit loan or revolving credit loans in Dollars made pursuant to Sections 2.03A or
2.04A of this Agreement on or after the Amendment No. 3 Effective Date. 
  
 “Revolving Credit A Note” means a promissory note of the Borrower payable to the order of any Revolving Credit A Lender, in substantially the form of Exhibit C-1 hereto, evidencing the indebtedness of
the Borrower to such Lender resulting from the Revolving Credit A Loan made by such Lender, as amended, endorsed or otherwise modified from time to time. 
  
 “Revolving Credit A Outstandings” means the aggregate Outstanding Amount of all Revolving Credit A Loans, all L/C Obligations and all
Swing Line Loans. 
  
 “Term A Borrowing” means a
borrowing consisting of simultaneous Term A Loans of the same Type made by the Term A Lenders. 
  
 “Term A Commitment” means, with respect to a Term Lender, the agreement of such Term Lender to exchange its Term Loans for an equal
aggregate principal amount of Term A Loans on the Amendment No. 3 Effective Date, as evidenced by such Term Lender executing and delivering Amendment No. 3; provided, that each such Term Lender’s Term Loan shall be deemed refinanced
concurrently with the exchange for its Term A Loans, if any, on and concurrently with the occurrence of the Amendment No. 3 Effective Date. 
  

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 “Term A Facility” means, at any time, the aggregate amount of the Term A Lenders’
and Additional Term A Lenders’ Commitments at such time. 
  
 “Term A Lender” means, collectively, (a) each Term Lender that executes and delivers Amendment No. 3 on or prior to the Amendment No. 3 Effective Date and (b) each Additional Term A Lender. 
  
 “Term A Loan” means a term loan or term loans in Dollars
made pursuant to Sections 2.01A or 2.02A of this Agreement on the Amendment No. 3 Effective Date. 
  
 “Term A Note” means a promissory note of the Borrower payable to the order of any Term A Lender in substantially the form of Exhibit C-2
hereto, evidencing the indebtedness of the Borrower to such Lender resulting from the Term A Loan made by such Lender, as amended, endorsed or otherwise modified from time to time. 
  
 “Term A Outstandings” means, on any date, the aggregate outstanding principal amount of all Term A Loans
after giving effect to any borrowings and prepayments or repayments of Term A Loans occurring on such date. 
  
 (e) Section 2.02(a) of the Credit Agreement is hereby amended by replacing the fourth and fifth sentences thereof in their entirety with the following
sentences: 
  
 “Each Committed Borrowing of, conversion to
or continuation of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole multiple of $250,000 in excess thereof. Except as provided in Section 2.03(c), each Committed Borrowing of or conversion to Base Rate Loans shall be in
a principal amount of $250,000 or a whole multiple thereof in excess thereof.” 
  
 (f) Section 2.05(a) of the Credit Agreement is hereby amended by replacing the first sentence thereof in its entirety with the following sentence: 
  
 “(a) The Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay
Loans in whole or in part and such prepayments shall be without premium or penalty (but subject to Section 3.05); provided that (i) such notice must be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days
prior to any date of prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal amount of $250,000 or a whole multiple thereof in excess thereof; and
(iii) any prepayment of Base Rate Loans shall be in a principal amount of $250,000 or a whole multiple thereof in excess thereof or, in each case, if less, the entire principal amount thereof then outstanding.” 
  

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 (g) Section 2.06 of the Credit Agreement is hereby amended by: 
  
 (i) replacing clause (b)(iii) thereof in its entirety with
the following: 
  
 “(iii) the sale or
issuance by any Loan Party or any of its Subsidiaries of any Equity Interests (including, without limitation, receipt of any capital contribution and excluding issuances of Equity Interests by the Borrower generating up to $100,000,000 in Net Cash
Proceeds; provided, that the first $70,000,000 of the Net Cash Proceeds thereof are applied to prepay the Senior Subordinated Notes; and provided further, that up to an additional $30,000,000 in such Net Cash Proceeds are used
to make Investments permitted under Section 7.02).”; and 
  
 (ii) adding at the end thereof the following new subsection (h) to read as follows: 
  
 “(h) Notwithstanding any provision to the contrary contained in this Section 2.06, all prepayments of principal under
Section 2.06(b)(ii) (including by reason of exchanges or roll-overs or re-tranching) shall be in an amount equal to 101% of the principal amount so prepaid (or exchanged, rolled-over or re-tranched) if such prepayment (exchange, roll-over or
re-tranching) is made within one year after the Amendment No. 3 Effective Date.” 
  
 (h) Article II of the Existing Credit Agreement is hereby amended by adding the following new Sections 2.01A through 2.05A thereto: 
  
 “SECTION 2.01A. Term Loan Exchange. Subject to the terms and conditions hereof, each Term Lender
with a Term A Commitment severally agrees to exchange its Term Loan for at least a like principal amount in Dollars of Term A Loans on the Amendment No. 3 Effective Date, and from and after the Amendment No. 3 Effective date such Term Loan shall be
deemed refinanced in full. 
  
 “SECTION
2.02A Additional Term A Loans. Subject to the terms and conditions hereof, each Additional Term A Lender severally agrees to make Additional Term A Loans in Dollars to the Borrower on the Amendment No. 3 Effective Date in a principal amount
not to exceed its Additional Term A Commitment on the Amendment No. 3 Effective Date. The Borrower shall refinance all Term Loans of Term Lenders that do not execute and deliver the Amendment No. 3 on the Amendment No. 3 Effective Date with the
gross proceeds of the Additional Term A Loans. 
  
 SECTION 2.03A Revolving Credit Loan Exchange. Subject to the terms and conditions hereof, each Revolving Credit Lender with a Revolving Credit A Commitment severally agrees to exchange its Revolving Credit Loans outstanding on the
Amendment No. 3 Effective Date for at least a like principal amount in Dollars of Revolving Credit A Loans on and concurrently with the 

  

 8 

 
occurrence of the Amendment No. 3 Effective Date, and from and after the Amendment No. 3 Effective Date (a) such Revolving Credit Loans shall be deemed
refinanced in full and (b) the Revolving Credit A Lenders agree to make Loans to the Borrower from time to time on any Business Day during the Availability Period in an aggregate amount not to exceed such Lender’s Revolving Credit A Commitment;
provided, however, that after giving effect to any Revolving Credit A Borrowing, (i) the Revolving Credit A Outstandings (including all Additional Revolving Credit A Loans) shall not exceed the Revolving Credit A Facility and (ii) the
aggregate Outstanding Amount of the Revolving Credit A Loans of any Revolving Credit A Lender plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations plus such Lender’s Pro Rata Share of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Revolving Credit A Commitment. Within the limits of each Revolving Credit A Lender’s Revolving Credit A Commitment, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.03A, prepay under Section 2.05 of this Agreement, and reborrow under this Section 2.03A. Revolving Credit A Loans may be Base Rate Loans or Eurodollar Rate Loans, as further
provided herein. 
  
 SECTION 2.04A. Additional
Revolving Credit A Loans. Subject to the terms and conditions hereof, each Additional Revolving Credit A Lender severally agrees to make Additional Revolving Credit A Loans in Dollars to the Borrower on the Amendment No. 3 Effective Date in a
principal amount not to exceed its Additional Revolving Credit A Commitment on the Amendment No. 3 Effective Date. The Borrower shall refinance all Revolving Credit Loans of Revolving Credit Lenders that do not execute and deliver the Amendment No.
3 on the Amendment No. 3 Effective Date with the gross proceeds of the Additional Revolving Credit A Loans. From and after the Amendment No. 3 Effective Date, the Additional Revolving Credit A Lenders agree to make Loans to the Borrower from time to
time on any Business Day during the Availability Period in an aggregate amount not to exceed such Lender’s Additional Revolving Credit A Commitment; provided, however, that after giving effect to any Additional Revolving Credit A
Borrowing, (i) the Revolving Credit A Outstandings, together with the Outstandings under Section 2.03A, shall not exceed the Revolving Credit A Facility and (ii) the aggregate Outstanding Amount of the Additional Revolving Credit A Loans of any
Additional Revolving Credit A Lender plus such Lender’s Pro Rata Share of the Outstanding Amount of all L/C Obligations plus such Lender’s Pro Rata Share of the Outstanding Amount of all Swing Line Loans shall not exceed such
Additional Lender’s Revolving Credit A Commitment. Within the limits of each Additional Revolving Credit A Lender’s Additional Revolving Credit A Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow
under this Section 2.04A, prepay under Section 2.05 of this Agreement, and reborrow under this Section 2.04A. Additional Revolving Credit A Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

  

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 SECTION 2.05A Refinancing ; Interest, Etc. On the Amendment No. 3 Effective Date
the Borrower shall use (a) 100% of the proceeds of all Term A Loans to refinance the Term Loans and the Borrower shall pay all accrued and unpaid interest due and payable on the Term Loans on the Amendment No. 3 Effective Date to the Term Lenders
and (b) 100% of the proceeds of all Revolving Credit A Loans to refinance the Revolving Credit Loans and the Borrower shall pay all accrued and unpaid interest due and payable on the Revolving Credit Loans on the Amendment No. 3 Effective Date to
the Revolving Credit Lenders. In addition, on the Amendment No. 3 Effective Date, the Borrower shall pay any breakage loss or expense owing to such Term Lenders and Revolving Credit Lenders pursuant to Section 10.04 of this Agreement.”

  
 (i) Section 7.02 of the Credit Agreement is hereby amended by
deleting the word “and” at the end of subsection (f), renumbering subsection (g) as new subsection (h) and inserting after subsection (f) a new subsection (g) to read in full as follows: 
  
 “(g) Investments in (i) ArcLight Systems, LLC, (ii) the
OmniLink Product Line of McKesson Corporation and (iii) InstantDX, LLC, in an amount not to exceed $50,000,000 for any such Investment and in an aggregate amount invested not to exceed $75,000,000 for all such Investments; provided that, in
any event, with respect to Investments made under this clause (g): (A) any newly acquired or organized Subsidiary of the Borrower or any of its Subsidiaries shall be a wholly-owned Subsidiary thereof; (B) immediately before and after giving effect
thereto, no Default shall have occurred and be continuing or would result therefrom; (C) any company or business acquired or invested in pursuant to this clause (g) shall be in the same line of business as the business of the Borrower or any of its
Subsidiaries; (D) immediately after giving effect to the acquisition of a company or business pursuant to this clause (g), the Borrower shall be in pro forma compliance with the covenants contained in Section 7.11, calculated based on the
financial statements most recently delivered to the Lenders pursuant to Section 6.01 and as though such acquisition had occurred at the beginning of the four-quarter period covered thereby, as evidenced by a certificate of a Responsible
Officer of the Borrower delivered to the Lenders demonstrating such compliance; and (E) the Borrower and such Subsidiary shall comply with the provisions of Section 6.12.” 
  
 (j) Section 7.02(h) (as renumbered) of the Credit Agreement is hereby amended by replacing each reference to “this
clause (g)” therein with a reference to “this clause (h)”, by replacing the amount $15,000,000” appearing in clause (i) thereof with the amount “$20,000,000” and by replacing the amount “$25,000,000” appearing
in clause (ii) thereof with the amount “$50,000,000”. 
  

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 (k) Section 7.03 of the Credit Agreement is hereby amended by deleting the word “and” at the
end of subsection (j), replacing the “.” at the end of subsection (k) with “; and”, and adding the following new subsection (l) thereof: 
  
 “(l) without duplication of Section 7.13(a), Indebtedness of any Person that becomes a Subsidiary after the date of this Agreement;
provided, that (i) such Indebtedness exists at the time that such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary, (ii) no Default shall have occurred and be
continuing or would result from the acquisition of such Person and (iii) immediately after giving effect to the acquisition of such Person, the Borrower shall be in pro forma compliance with the covenants contained in Section 7.11, calculated
based on the financial statements most recently delivered to the Lenders pursuant to Section 6.01 and as though such acquisition of such Person had occurred at the beginning of the four-quarter period covered thereby, as evidenced by a
certificate of a Responsible Officer of the Borrower delivered to the Lenders demonstrating such compliance.” 
  
 (l) Section 7.05 of the Credit Agreement is hereby amended by replacing subsection (g) of such Section in its entirety with the following: 
  
 “Dispositions by the Borrower of National Data Corporation of Canada,
NDC Health Limited, Infopharm Ltd., HealthTran LLC and MedPrint; for fair value and at least 75% in cash, with the Net Cash Proceeds thereof to be applied pursuant to Section 2.06(b).” 
  
 (m) Section 7.11 of the Credit Agreement is hereby amended by replacing
subsections (a), (b) and (c) of such Section in their entirety with the following: 
  
 “(a) Maximum Consolidated Total Leverage Ratio. Permit at any time a Consolidated Total Leverage Ratio of more than the amount set forth below during each period set forth below: 
  

	 Quarter Ending

	  	Ratio

	 February 28, 2004
	  	3.00:1.00
	 May 31, 2004
	  	3.00:1.00
	 August 31, 2004 and thereafter
	  	2.75:1.00

  
 (b) Maximum
Consolidated Senior Leverage Ratio. Permit at any time a Consolidated Senior Leverage Ratio of more than the amount set forth below during each period set forth below: 
  

	 Quarter Ending

	  	Ratio

	 February 28, 2004
	  	1.75:1.00
	 May 31, 2004 and thereafter
	  	1.75:1.00

  

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 (c) Minimum Consolidated Fixed Charge Coverage Ratio. Permit at any time a Consolidated Fixed
Charge Coverage Ratio of less than the amount set forth below during each period set forth below: 
  

	 Quarter Ending

	  	Ratio

	 February 28, 2004
	  	1.25:1.00
	 May 31, 2004
	  	1.25:1.00
	 August 31, 2004
	  	1.25:1.00
	 November 30, 2004
	  	1.25:1.00
	 February 28, 2005
	  	1.25:1.00
	 May 31, 2005
	  	1.25:1.00
	 August 31, 2005
	  	1.50:1.00
	 November 30, 2005
	  	1.50:1.00
	 February 28, 2006
	  	1.50:1.00
	 May 31, 2006 and thereafter
	  	1.50:1.00

  
 (n) Section 7.12 of
the Credit Agreement is hereby amended by replacing the table therein in its entirety with the following table: 
  

	 Fiscal Year

	  	Amount

	 2003
	  	$	45,000,000
	 2004
	  	$	60,000,000
	 2005
	  	$	70,000,000
	 2006
	  	$	80,000,000
	 2007
	  	$	90,000,000
	 2008
	  	$	100,000,000

  
 (o) Section 7.13 of
the Credit Agreement is hereby restated in its entirety to read as follows: 
  
 “Lease Obligations. Create, incur, assume or suffer to exist any obligations as lessee (a) for the rental or hire of real or personal property of any kind under leases or agreements to lease (excluding
capital leases) having an original term of one year or more that would cause the direct and contingent liabilities of the Borrower and its Subsidiaries, on a Consolidated basis, in respect of all such obligations to exceed $20,000,000 payable in any
Fiscal Year or (b) for up to an additional $5,000,000 in any Fiscal Year for any such obligations as lessee, to the extent arising from (i) lease obligations of any Person that becomes a Subsidiary after the date of this Agreement (but in any case
without duplication of Section 7.03(l)); provided, that such lease obligation of such Person exists at the time that such Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a
Subsidiary and (ii) the rental or hire of real or personal property in connection with any sale and leaseback transaction, except for the NDC Plaza Transaction.” 
  
 (p) Section 7.21 of the Credit Agreement is hereby amended by replacing the phrase “impair the value of the interest or
rights of any Loan Party thereunder or that would 

  

 12 

 
impair the interest or rights of any Agent or any Lender” at the end thereof in its entirety with the following: 
  
 “reasonably be expected to have a Material Adverse Effect.”

  
 2. Conditions to Effectiveness of this
Amendment. This Amendment and the amendments contained herein shall become effective on the date (the “Amendment No. 3 Effective Date”) when each of the conditions set forth below shall have been fulfilled to the
satisfaction of the Administrative Agent: 
  
 (a) The
Administrative Agent shall have received counterparts of this Amendment, duly executed and delivered on behalf of each of (i) the Borrower, (ii) the Administrative Agent, (iii) the Guarantors, (iv) the Required Lenders, (v) each Term A Lender, or in
lieu of one or more Term A Lenders, one or more Additional Term A Lenders providing Additional Term A Commitments in an amount sufficient to refinance all of the principal of the Term Loans owed to the non-consenting Term Lenders and (vi) each
Revolving Credit A Lender, or in lieu of one or more Revolving Credit A Lenders, one or more Additional Revolving Credit A Lenders providing Additional Revolving Credit A Commitments in an amount sufficient to refinance all of the principal of the
Revolving Credit Loans owed to the non-consenting Revolving Credit Lenders, or as to any of the foregoing parties, advice reasonably satisfactory to the Administrative Agent that each of the foregoing parties has executed a counterpart of this
Amendment; 
  
 (b) The Borrower shall have provided the
Administrative Agent with a notice in accordance with the requirements of Section 2.05(a) of the Credit Agreement three Business Days prior to the Amendment No. 3 Effective Date with respect to the refinancing in full of any Term Loans and Revolving
Credit Loans from the proceeds of Additional Term A Loans and Additional Revolving Credit A Loans made by Additional Term A Lenders and Additional Revolving Credit A Lenders; 
  
 (c) The Borrower shall have provided the Administrative Agent with a Committed Loan Notice in accordance with the
requirements of Section 2.02(a) of the Credit Agreement three Business Days prior to the Amendment No. 3 Effective Date with respect to the borrowing of the Term A Loans and Revolving Credit A Loans to be made on the Amendment No. 3 Effective Date;

  
 (d) The Borrower shall have paid (i) all reasonable costs and
expenses (including the reasonable fees, charges and disbursements of counsel to the Administrative Agent) incurred in connection with the preparation, negotiation and execution of this Amendment and (ii) all fees previously agreed with the
Administrative Agent; 
  
 (e) Each Term A Lender and Revolving
Credit A Lender shall have received, if requested, one or more Notes payable to the order of such Lender duly executed by the Borrower in substantially the form of Exhibits C-1 and C-2 respectively to the Credit Agreement, as modified by this
Amendment, evidencing the Term A Loans and the Revolving Credit A Loans; 
  
 (f) The Borrower shall have paid to all the Term Lenders and all the Revolving Credit Lenders all accrued and unpaid interest on the Term Loans and the Revolving Credit 

  

 13 

 
Loans to (but not including) the Amendment No. 3 Effective Date plus any breakage, loss or expense due pursuant to Section 10.04 of the Credit Agreement;

  
 (g) The Administrative Agent shall have received certified
copies of (i) the resolutions of the Board of Directors of each Loan Party evidencing approval for this Amendment and all matters contemplated hereby and (ii) all documents evidencing other necessary corporate action and governmental and other third
party approvals and consents if any, with respect to this Amendment and the matters contemplated hereby; 
  
 (h) The Administrative Agent shall have received favorable opinions of (i) David Oles, senior attorney of the Loan Parties, and (ii) King & Spalding,
special counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to the matters set forth in this Amendment (and the Credit Agreement as amended hereby) and such other matters concerning the Loan Parties, the Loan
Documents and this Amendment as the Administrative Agent or Lenders may reasonably request; and 
  
 (i) The Administrative Agent shall have received a certificate signed by a Responsible Officer of the Loan Parties certifying (i) the identity, authority
and capacity of each Responsible Officer of the Loan Parties authorized to sign this Amendment and the other documents to be delivered hereunder, (ii) that no authorization or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body, or any third party to any agreements and instruments of any Loan Party is required for the due execution, delivery or performance by the Loan Parties of this Amendment, (iii) that the representations and
warranties contained in this Amendment are true and correct as of the Amendment No. 3 Effective Date and (iv) that no event has occurred and is continuing that constitutes a Default. 
  
 3. Replacement. Immediately upon the satisfaction of the conditions precedent set forth in Section 2, the
following shall be given effect, all of which shall be deemed to occur simultaneously: 
  
 (a) All Term Commitments of Term Lenders executing this Amendment shall be converted into Term A Commitments; all Term Loans held by Term Lenders executing this Amendment shall be converted into Term A
Loans; 
  
 (b) The Additional Term A Commitments
shall be effective; Additional Term A Loans shall be funded by Additional Term A Lenders, and proceeds of such Additional Term A Loans shall be applied to refinance the Term Loans of Term Lenders not executing this Amendment, leaving no Term Loans
or Term Commitments outstanding;  
  
 (c) All
Revolving Credit Commitments of Revolving Credit Lenders executing this Amendment shall be converted into Revolving Credit A Commitments; all Revolving Credit Loans held by Revolving Credit Lenders executing this Amendment shall be converted into
Revolving Credit A Loans; 
  
 (d) The Additional Revolving
Credit A Commitments shall be effective; Additional Revolving Credit A Loans shall be funded by Additional Revolving Credit A Lenders, and the proceeds of such Additional Revolving Credit A Loans shall be applied to 

  

 14 

 
refinance in full the Revolving Credit Loans of Revolving Credit Lenders not executing this Amendment, leaving no Revolving Credit Loans outstanding; 

  
 (e) All Letters of Credit and Swing Line Loans shall be
deemed to be outstanding under the Revolving Credit A Commitments, rather than under the Revolving Credit Commitments; 
  
 (f) The Revolving Credit Commitments of Revolving Lenders not executing this Amendment shall terminate; 
  
 (g) The Term A Loans shall have the same terms, rights and obligations
as the Term Loans as set forth in the Loan Documents, except as modified by this Amendment, and all references to “Term Borrowing”, “Term Commitment”, “Term Facility”, “Term Lender”, “Term Loan”,
“Term Note” and “Term Outstandings” in the Loan Documents shall be deemed to be references to “Term A Borrowing”, “Term A Commitment”, “Term A Facility”, “Term A Lender”, “Term A
Loan”, “Term A Note” and “Term A Outstandings”, respectively; 
  
 (h) The Revolving Credit A Commitments and Revolving Credit A Loans shall have the same terms, rights and obligations as the Revolving Credit Commitments and Revolving Credit Loans as set forth in the Loan
Documents, except as modified by this Amendment, and all references to “Revolving Credit Borrowing”, “Revolving Credit Commitment”, “Revolving Credit Facility”, “Revolving Credit Lender”, “Revolving
Credit Loan”, “Revolving Credit Note” and “Revolving Credit Outstandings” in the Loan Documents shall be deemed to be references to “Revolving Credit A Borrowing”, “Revolving Credit A Commitment”,
“Revolving Credit A Facility”, “Revolving Credit A Lender”, “Revolving Credit A Loan”, “Revolving Credit A Note” and “Revolving Credit A Outstandings”, respectively.  
  
 4. Representations and Warranties. To induce the Lenders and
the Administrative Agent to enter into this Amendment, each Loan Party hereby represents and warrants to the Lenders and the Administrative Agent that: 
  
 (a) The execution, delivery and performance by such Loan Party of this Amendment have been duly authorized by all necessary corporate or other
organizational action, and do not and will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in any breach or contravention of or default under, or the creation of any Lien under or require
any payment to be made under, (i) any material Contractual Obligation to which such Person is a party or affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any
Governmental Authority or any arbitral award to which such Person or its property is subject; or (c) violate any Law; 
  
 (b) This Amendment has been duly executed and delivered for the benefit of or on behalf of each Loan Party and constitutes a legal, valid and binding
obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms except as the enforceability hereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other laws affecting creditors’ rights
generally; and 
  

 15 

 (c) After giving effect to this Amendment, the representations and warranties contained in the Credit
Agreement and the other Loan Documents are true and correct in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material
respects as of such earlier date (provided that, for this purpose, (i) the reference to the Borrower’s May 31, 2002 Audited Financial Statements in Section 5.05(a) of the Credit Agreement shall be deemed a reference to the Borrower’s May
31, 2003 Audited Financial Statements and (ii) the reference to the date August 31, 2002 in Section 5.05(b) of the Credit Agreement shall be deemed a reference to August 31, 2003) and no Default or Event of Default has occurred and is continuing as
of the date hereof. 
  
 5. Reaffirmations of
Guaranty. Each Guarantor consents to the execution and delivery by the Borrower of this Amendment and jointly and severally in all respects ratifies and confirms the terms of the Guaranty with respect to the indebtedness now or hereafter
outstanding under the Credit Agreement as amended hereby and all promissory notes issued thereunder. Each Guarantor acknowledges that, notwithstanding anything to the contrary contained herein or in any other document evidencing any indebtedness of
the Borrower to the Lenders or any other obligation of the Borrower, or any actions now or hereafter taken by the Lenders with respect to any obligation of the Borrower, the Guaranty (i) is and shall continue to be a primary obligation of the
Guarantors, (ii) is and shall continue to be an absolute, unconditional, joint and several, continuing and irrevocable guaranty of payment, and (iii) is and shall continue to be in full force and effect in accordance with its terms. Nothing
contained herein to the contrary shall release, discharge, modify, change or affect the original liability of the Guarantors under the Guaranty. 
  
 6. Effect of Amendment. Except as set forth expressly herein, all terms of the Credit Agreement, the Notes and each of the other Loan
Documents as amended hereby, shall be and remain in full force and effect, are hereby ratified and confirmed and shall continue to constitute the legal, valid, binding and enforceable obligations of the Borrower to the Lenders and the Administrative
Agent. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of the Obligations of the Loan Parties under the Loan Documents, in each case
as amended by this Amendment. The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under the Credit Agreement or any
other Loan Document, nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document. This Amendment shall constitute a Loan Document for all purposes of the Credit Agreement. 
  
 On and after the effectiveness of this Amendment, each reference in the
Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the Credit
Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment. 
  
 7. Governing Law. This Amendment shall be governed by, and
construed in accordance with, the internal laws of the State of New York and all applicable federal laws of the United States of America. 
  

 16 

 8. No Novation. This Amendment is not intended by the parties to be, and shall not be
construed to be, a novation of the Credit Agreement or an accord and satisfaction in regard thereto. 
  
 9. Fees, Costs and Expenses. The Borrower agrees to pay on demand all fees, costs and expenses of the Administrative Agent in connection
with the preparation, execution and delivery of this Amendment, including, without limitation, the reasonable fees and expenses of outside counsel for the Administrative Agent with respect thereto. 
  
 10. Counterparts. This Amendment may be executed by one or more
of the parties hereto in any number of separate counterparts, each of which shall be deemed an original and all of which, taken together, shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of this
Amendment by facsimile transmission or by electronic mail shall be as effective as delivery of a manually executed counterpart hereof. 
  
 11. Binding Nature. This Amendment shall be binding upon and inure to the benefit of the parties hereto, their respective successors,
successors-in-titles, and assigns. 
  
 12. Entire
Understanding. This Amendment sets forth the entire understanding of the parties with respect to the matters set forth herein, and shall supersede any prior negotiations or agreements, whether written or oral, with respect thereto.

  
 [Signature Pages To Follow] 
  

 17 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective
authorized officers as of the day and year first above written. 
  

	BORROWER:
	
	 NDCHEALTH CORPORATION

		
	By:	 	 
	 	

	 	 	 Name:
 Title:

	 	 	 
	GUARANTORS:
	
	 NDC HEALTH INFORMATION
 SERVICES
(ARIZONA) INC.

		
	By:	 	 
	 	

	 	 	 Name:
 Title:

	
	 NDC OF CANADA, INC.

		
	By:	 	 
	 	

	 	 	 Name:
 Title:

	
	 [UPDATE GUARANTORS]

  

	LENDERS:
	
	MERRILL LYNCH CAPITAL, a division of Merrill Lynch Business Financial Services Inc., as Administrative Agent, Swing Line Lender and as a Lender
		
	By:	 	 
	 	

	 Name:
 Title:
	 	 
	 	 	 
	
	CREDIT SUISSE FIRST BOSTON, acting through its Cayman Islands Branch, as Syndication Agent and as a Lender
		
	By:	 	 
	 	

	 Name:
 Title:
	 	 
	 	 	 
		
	By:	 	 
	 	

	 Name:
 Title:
	 	 
	 	 	 
	 BANK OF AMERICA, N.A., as
 Documentation Agent and as a Lender

		
	By:	 	 
	 	

	 Name:
 Title:
	 	 
	 	 	 
	LASALLE BANK NATIONAL ASSOCIATION, as L/C Issuer and as a Lender
		
	By:	 	 
	 	

	 	 	 Name:
 Title:

  

	Lenders:
	
	                                       
                          , as a Lender
 [Insert Name of Financial Institution]

		
	By	 	 
	 	

	 	 	 Title:

  

  
 Schedule I 

To Amendment No. 3 
  
 List of Lenders and Loan Commitments and Loan Outstanding Percentages and AmountsNDC Exclusive License Agreement

  
 Exhibit 10 (ii)

  
 EXCLUSIVE LICENSE AGREEMENT 
  
 THIS EXCLUSIVE LICENSE AGREEMENT (the “Agreement”) is made
and entered into this 31st day of December, 2003, by and between NDCHEALTH CORPORATION, a Delaware corporation (“NDCHealth”), and ARCLIGHT SYSTEMS LLC, a Delaware limited liability company (“Arclight”). 

 
 BACKGROUND: 
  
 A. Arclight receives Member Data from each Arclight Member and has certain data
processing protocols and products relating to such Member Data. 
  
 B.
NDCHealth receives similar pharmacy retail data from certain Arclight Members and from other sources and has similar data processing protocols and products relating to such data. 
  
 C. NDCHealth desires to license on an exclusive basis certain data, products, trademarks and technology from Arclight, and Arclight
desires to grant such license to NDCHealth, all subject to and in accordance with the terms and conditions contained in this Agreement. 
  
 NOW, THEREFORE, FOR AND IN CONSIDERATION of the premises, the mutual promises, covenants and agreements contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
  
 1. DEFINITIONS. 
  
 “Additional Contingent Exclusivity Fee” shall have the meaning specified in Section 8.2. 
  
 “Affiliate” shall mean, with respect to any Person, any
other Person which directly or indirectly controls, is controlled by or is under common ownership or control with such Person. As used herein, “control” means the power to direct the management and affairs of a Person, and
“ownership” means the beneficial ownership of 50% or more of the voting equity securities or other equivalent voting interests of the Person. 
  
 “Agreement to be Bound” shall have the meaning specified in Section 3.2. 
  
 “Annual Term” shall have the meaning specified in Section 6.2. 
  
 “Applicable Percentage” shall have the meaning specified in
Section 8.5. 
  
 “Arclight” shall have the
meaning set forth in the preamble. 
  
 “Arclight
Data” shall mean all Member Data provided to Arclight (or to NDCHealth on Arclight’s behalf) by all Arclight Members at any time prior to the termination or expiration of this Agreement (including all Member Data provided prior to the
date hereof). 
  

 “Arclight Member” shall mean all current equity owner members of Arclight. The Arclight
Members as of the date hereof are listed on Exhibit A. 
  
 “Arclight Product” shall mean each of the Arclight products listed on Exhibit B. 
  
 “Arclight Representative” shall have the meaning specified in Section 6.2. 
  
 “Arclight System” shall mean the system to be established by NDCHealth (at its sole cost and expense) and
located within its data center in Atlanta, Georgia, designed to receive and perform initial processing of Arclight Data as contemplated by Exhibit F, and which system shall (i) be separate and independent from NDCHealth’s Information
Management Business and (ii) be operated and maintained by personnel who are neither employed by nor subject to the management control of the Information Management Business. 
  
 “Arclight Technology” shall mean all copyrights and copyright applications, copyrightable works, mask
works, patents and patent applications, processes, inventions, computer programs, trade secrets, confidential information and materials, goodwill and other intellectual property owned by Arclight (and all specifications, functionality requirements
and instructions therefor and all Improvements thereto owned by Arclight pursuant to Section 2.6), including its data quality control process (which encompasses receipt, edits and cleansing for accuracy and reporting consistency), its projection and
statistical analysis methodology, its database and report production process, its encryption technology, and its process which matches prescription data to de-identified patients across Arclight Members other than Wal-Mart (and matches prescription
data to de-identified patients within Wal-Mart), but specifically excluding (i) all intellectual property rights licensed to Arclight and (ii) all Arclight Technology relating exclusively to the ScriptLine business previously operated by Arclight.

  
 “Arclight Trademarks” shall mean the
trademarks, service marks, logos, trade dress and trade names set forth on Exhibit J and any applications and registrations therefor. 
  
 “Average Closing Price” shall have the meaning specified in Section 8.1. 
  
 “Closing” shall have the meaning specified in Section 17.1. 
  
 “Closing Date” shall mean the date and time on which the
Closing actually occurs. 
  
 “Confidential
Information” shall mean the proprietary and confidential data or information of a party, other than its Trade Secrets, which is of tangible or intangible value to such party and is not generally known by or available to the competitors of
such party. Notwithstanding the foregoing, Confidential Information shall not include any data or information used in accordance with the terms of this Agreement which (i) at the time of disclosure to the receiving party is in the public domain or
thereafter enters the public domain through no wrongful act or omission of the receiving party; (ii) is already known by the receiving party at the time of disclosure by the disclosing party and such data or information is not otherwise subject to
confidentiality obligations of the receiving party; (iii) is received from a third party who, to the receiving party’s knowledge, may disclose such data or information without violation of any confidentiality obligation; or (iv) is
independently developed by the 

  

 2 

 
receiving party without reference to the disclosing party’s Confidential Information or Trade Secrets. 
  
 “Coordinating Committee” shall have the meaning specified in
Section 6.1.  
  
 “Core Product” shall
mean each of the NDCHealth products listed on Exhibit C. 
  
 “Data Contribution Agreements” shall mean those certain Data Contribution Agreements listed on Exhibit D pursuant to which the Arclight Members who are parties thereto deliver Member Data to Arclight. 
  
 “Data Delivery Agreement” shall mean that certain Data
Delivery Agreement between NDCHealth and Arclight dated as of May 29, 2002, as amended from time to time. 
  
 “DDA Amendment” shall have the meaning specified in Section 7. 
  
 “Dispute” shall have the meaning specified in Section 19.1. 
  
 “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended (together with the rules and regulations promulgated thereunder). 
  
 “First Committee Meeting” shall have the meaning specified in Section 6.3. 
  
 “Fiscal Year” shall mean NDCHealth’s fiscal year which begins on the Saturday closest to June 1 of a particular year and ends on the
Friday closest to June 1 of the following year. NDCHealth’s 2005 Fiscal Year means May 29, 2004, through May 27, 2005. 
  
 “GAAP” shall have the meaning specified in Section 10.4. 
  
 “HIPAA” shall have the meaning specified in Section 9. 
  
 “HSR Act” shall mean the Hart-Scott Rodino Antitrust
Improvements Act of 1976, as amended (together with the rules and regulations promulgated thereunder). 
  
 “Improvements” shall have the meaning specified Section 2.6. 
  
 “Information Management Business” shall mean the information management business which provides
decision-support solutions to pharmaceutical manufacturers based on data from retail pharmacies, drug wholesalers and pharmaceutical manufacturers operated by NDCHealth Information Services (Arizona), Inc. (or any successor thereto), which entity
performs, except as set forth in the proviso below, (i) all direct sales activities and (ii) all customer service and relationship management for NDCHealth’s information management business; provided, however, the parties acknowledge that
certain administrative and management functions with respect to NDCHealth’s information management business are performed by NDCHealth’s senior executive officers located at NDCHealth’s headquarters in Atlanta, Georgia. 
  
 “Initial Exclusivity Fee” shall have the meaning specified
in Section 8.1. 
  
 “Initial NDCHealth Shares”
shall have the meaning specified in Section 11.4. 
  

 3 

 “Licensed Items” shall mean the Arclight Data, the Arclight Products, the Arclight
Technology and the Arclight Trademarks. 
  
 “Longitudinal
Product” shall mean any product which matches prescription data to de-identified patients across a group of retail pharmacies. 
  
 “Material Adverse Effect” shall mean any event, change or effect that individually or when taken together with all other such events,
changes or effects is or could reasonably be expected (as far as can be foreseen at the time) to be materially adverse to the business, assets, liabilities, financial condition, or results of operations of NDCHealth. 
  
 “Member Data” shall mean all prescription and related data
provided to Arclight (or to NDCHealth on Arclight’s behalf) by any Arclight Member at any time prior to the termination or expiration of this Agreement (including all such data provided prior to the date hereof). The data elements and format of
Member Data as of the date hereof are set forth on Exhibit E. 
  
 “NDCHealth” shall have the meaning specified in the preamble. 
  
 “NDCHealth Common Stock” shall mean the $0.01 par value common stock of NDCHealth. 
  
 “NDCHealth Representative” shall have the meaning specified in Section 6.2. 
  
 “NDCHealth Products” shall mean Core Products, Non-Core Products and R&C Studies. 
  
 “Net Revenue” shall mean NDCHealth’s consolidated gross
revenues from the sale of NDCHealth Products, less any applicable sales allowances and discounts, all determined in accordance with generally accepted accounting principles (in the manner applied by NDCHealth in its SEC Documents as of the date of
this Agreement). 
  
 “Non-Core Product” shall
mean any product (including all Longitudinal Products) other than a Core Product which is sold by NDCHealth or any of its Affiliates to any third party and into which Arclight Data (whether or not such data is also purchased by NDCHealth pursuant to
separate agreements with Arclight Members or third party aggregators) is commingled, combined, aggregated or disaggregated or in connection with which any other Licensed Item (excluding all Arclight Technology other than Arclight’s longitudinal
data linking processes) is used, but specifically excluding R&C Studies. 
  
 “NYSE” shall mean the New York Stock Exchange, Inc. 
  
 “Person” shall mean any individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company,
trust, unincorporated organization or other entity. 
  
 “Potential Infringement” shall have the meaning specified in Section 2.9(a). 
  
 “R&C Studies” shall mean de-identified patient research and tracking studies which are sold by NDCHealth or any of its Affiliates to
any third party and into which Arclight Data (whether or not such data is also purchased by NDCHealth pursuant to separate agreements with 

  

 4 

 
Arclight Members or third party aggregators) is commingled, combined, aggregated or disaggregated or in connection with which any other Licensed Item
(excluding all Arclight Technology other than Arclight’s longitudinal data linking processes) is used. 
  
 “Registration Rights Agreement” shall mean that certain Registration Rights Agreement, dated as of the Closing Date, by and between
Arclight and NDCHealth, substantially in the form attached hereto as Exhibit K. 
  
 “SEC” shall mean the Securities and Exchange Commission, including any governmental authority or agency succeeding to the functions thereof. 
  
 “SEC Documents” shall have the meaning specified in Section
10.3. 
  
 “Securities Act” shall mean the
Securities Act of 1933, as amended (together with the rules and regulations promulgated thereunder). 
  
 “Trade Secret” shall mean each “trade secret” of a party as defined under applicable law. 
  
 “Transaction” shall have the meaning specified in Section
15.4. 
  
 “Transition Agreement” shall mean that
certain Transition Agreement, dated as of the Closing Date, by and between NDCHealth and Arclight, substantially in the form attached hereto as Exhibit I. 
  
 “VAN” shall mean NDCHealth’s “value-added network” pursuant to which NDCHealth provides
pharmacies with transaction-based services. 
  
 “Wal-Mart” shall mean Wal-Mart Stores, Inc. 
  
 “Warrant Agreement” shall mean that certain Warrant Agreement, dated as of the Closing Date, by and between NDCHealth and Arclight, substantially in the form attached hereto as Exhibit L. 
  
 2. LICENSES. 
  
 2.1 Arclight Data. Subject to the terms and conditions of this Agreement, Arclight hereby licenses to NDCHealth, and
NDCHealth hereby accepts from Arclight an exclusive, perpetual (with respect to Arclight Data received prior to the termination of this Agreement), worldwide right and license to use, collect, organize, re-format, translate, analyze, copy, sell,
sublicense, exploit, modify, and create derivative works of all Arclight Data received by NDCHealth pursuant to this Agreement to enable NDCHealth to: (a) integrate such Arclight Data into one or more Core Products and/or Non-Core Products in
connection with the marketing, license or sale of such products; (b) develop one or more Non-Core Products; and (c) use such Arclight Data in connection with the conduct and commercialization of R&C Studies. 
  
 2.2 Arclight Products. Subject to the terms and conditions of this
Agreement, Arclight hereby licenses to NDCHealth, and NDCHealth hereby accepts from Arclight, an exclusive, worldwide right and license to use, sell (either directly or through its distribution 

  

 5 

 
channels), modify, sublicense (but only within its distribution channels and to its customers) and create derivative works of all Arclight Products during
the term of this Agreement. 
  
 2.3 Arclight Technology.
Subject to the terms and conditions of this Agreement, Arclight hereby licenses to NDCHealth, and NDCHealth hereby accepts from Arclight, an exclusive, worldwide right and license to use, copy, modify and create derivative works of all Arclight
Technology during the term of this Agreement. Upon the request of Arclight in each instance, NDCHealth shall file and prosecute patent applications (or continue to prosecute pending patent applications) on behalf of, in the name of and in accordance
with the instructions of Arclight for any portion of the Arclight Technology; provided, however, Arclight shall be responsible for all out-of-pocket costs and expenses incurred by NDCHealth in connection therewith. 
  
 2.4 Limitations on Use by NDCHealth. Notwithstanding anything else
contained herein to the contrary, NDCHealth shall not: (a) present or report outside of the Arclight System any identifiable Arclight Member or Arclight Member pharmacy-specific information, data or derivatives thereof; or (b) disassemble, modify,
isolate or separate any Arclight Data to learn the market share or sales volume or other non-public information of Arclight’s individual or collective data sources; provided, however, NDCHealth shall have the right to deliver Arclight Member
data and store identifiable data to the Arclight Member who provided the underlying Member Data, but only to the extent permitted in any written agreement between NDCHealth and such Arclight Member. Notwithstanding anything else contained herein to
the contrary, NDCHealth shall not commingle, combine, aggregate or disaggregate any Arclight Data in any Non-Core Product or any R&C Studies product suite offered for license or sale by NDCHealth or its Affiliates without the approval required
by Section 6.4. 
  
 2.5 Exclusivity. Notwithstanding
anything else contained herein to the contrary, except as set forth on Schedule 2.5, Arclight hereby covenants and agrees not to use and not to license, transfer, sell, assign or give to any person or entity (other than NDCHealth) during the
term of this Agreement any of the Licensed Items (or any rights therein), without the prior written consent of NDCHealth in each instance (which consent may be granted or withheld by NDCHealth in its sole discretion). 
  
 2.6 Ownership. Except for the limited rights expressly granted herein,
all right, title and interest in and to the Licensed Items are reserved by Arclight, and, except as expressly granted herein, nothing contained in this Agreement shall be construed as conferring any right, title, interest or license with respect to
the Licensed Items upon NDCHealth, by implication, estoppel or otherwise. As between Arclight and NDCHealth, Arclight shall own all right, title and interest, including all intellectual property rights, in and to the Licensed Items. Any and all
improvements, updates, modifications, revisions, variants and derivative works to any Licensed Items (and all intellectual property rights therein and thereto) (collectively “Improvements”) shall be owned by the party hereto which
developed them; provided, however, NDCHealth hereby grants Arclight a non-exclusive, worldwide, perpetual, royalty-free, irrevocable right and license to use, copy, sell (either directly or through its distribution channels), sublicense (but only
within its distribution channels and to its customers), modify and create derivative works of all NDCHealth-owned Improvements; provided further, that Arclight shall not exercise such right and license until the expiration or termination of this
Agreement. 
  

 6 

 2.7 Marketing and Sales. NDCHealth shall use commercially reasonable efforts to promote, market
and sell the NDCHealth Products during the term of this Agreement, including, (i) issuing a public announcement of the transactions contemplated hereby after the Closing (jointly sponsored and agreed upon with Arclight and any Arclight Member
referenced in such announcement), (ii) continuation of NDCHealth’s current level of sales and marketing efforts (including participation in trade shows), and (iii) cooperation with certain Arclight Members in sales and marketing activities (to
the extent deemed appropriate by NDCHealth and such Arclight Members). 
  
 2.8 Arclight Trademarks. 
  
 (a)
Arclight hereby grants to NDCHealth an exclusive, worldwide right and license to use, modify, sublicense (but only within its distribution channels) the Arclight Trademarks during the term of this Agreement. 
  
 (b) All uses of the Arclight Trademarks by NDCHealth shall
materially conform to the standards and specifications used by Arclight as of the Closing. At the reasonable request of Arclight from time to time, NDCHealth shall, at its sole cost and expense, submit to Arclight samples of its uses of the Arclight
Trademarks. NDCHealth shall (a) comply with all reasonable requests made by Arclight to maintain the quality standards and goodwill of all products and services containing the Arclight Trademarks sold or provided by NDCHealth in keeping with
Arclight’s use of the Arclight Trademarks prior to the execution of this Agreement and (b) consult with Arclight regarding the maintenance of such quality standards and goodwill. NDCHealth agrees that services and products provided in
connection with the Arclight Trademarks shall be of high quality, reflecting the prestige of the Arclight Trademarks and maintaining Arclight’s image at the same level and prestige as heretofore maintained. 
  
 (c) NDCHealth shall be solely responsible for ensuring that
all products and services containing the Arclight Trademarks sold or provided by NDCHealth comply with all applicable laws and regulations and have received any required governmental approvals. 
  
 (d) All uses of the Arclight Trademarks by NDCHealth, and
all goodwill generated by such uses, shall inure to the benefit of Arclight. 
  
 (e) NDCHealth shall affix or cause to be affixed to all uses of the Arclight Trademarks such trademark or service mark notices as may be supplied by Arclight or as may otherwise be reasonably directed by Arclight.

  
 (f) NDCHealth shall not at any time contest
Arclight’s right, title or interest in the Arclight Trademarks or, at any time during the term of this Agreement or after the expiration or termination hereof, use, register or apply for any trade name, domain name or any other name, mark or
trade dress that is the same as or confusingly similar to or which dilutes any of the Arclight Trademarks. 
  

 7 

 2.9 Infringement. 
  
 (a) NDCHealth shall promptly notify the Coordinating Committee in the event NDCHealth determines that any
Arclight Trademark or Arclight Technology is being infringed, misappropriated, violated or adversely affected by any unauthorized or unlawful use by any third party (each, a “Potential Infringement”). The Coordinating Committee shall then
meet as soon as reasonably practicable to discuss such Potential Infringement. 
  
 (b) In the event both NDCHealth and Arclight elect to take action to prevent such Potential Infringement and to prosecute the Person(s)
responsible therefor, then the parties shall cooperate in good faith with respect thereto and share equally the costs thereof and all recoveries therefrom (except to the extent otherwise agreed by the parties). 
  
 (c) In the event Arclight, but not NDCHealth, elects to take
action to prevent such Potential Infringement and to prosecute the Person(s) responsible therefor, then all costs thereof shall be borne by Arclight, and all recoveries therefrom shall be the sole and exclusive property of Arclight. NDCHealth shall,
upon the request of and at the cost of Arclight, assist Arclight to the extent reasonably necessary in any action taken pursuant to this Section 2.9(c). 
  
 (d) In the event NDCHealth, but not Arclight, elects to take action to prevent such Potential Infringement and to prosecute the Person(s)
responsible therefor, then all costs thereof shall be borne by NDCHealth, and all recoveries therefrom shall be the sole and exclusive property of NDCHealth. Arclight shall, upon the request of and at the cost of NDCHealth, assist NDCHealth to the
extent reasonably necessary in any action taken pursuant to this Section 2.9(d). Notwithstanding the foregoing, NDCHealth shall not take any action pursuant to this Section 2.9(d) unless and until it delivers to Arclight written advice of outside
counsel that the Potential Infringement is reasonably likely to materially impair NDCHealth’s rights under this Agreement. 
  
 (e) Notwithstanding anything to the contrary set forth in this Section 2.9, NDCHealth shall not settle any suits or actions in any matter
relating to a Potential Infringement or any of the Licensed Items without obtaining the prior written consent of Arclight, which consent shall not be unreasonably withheld or delayed. Arclight shall not settle any suits or actions in any manner
relating to a Potential Infringement or any of the Licensed Items without the prior written consent of NDCHealth, which consent shall not be unreasonably withheld or delayed. 
  
 3. COMPOSITION OF ARCLIGHT DATA. 
  
 3.1 Arclight Members. Arclight hereby warrants to NDCHealth, as of the date hereof, that each of the Arclight Members listed on Schedule 3.1
has agreed in writing to continue to provide its Member Data to Arclight royalty-free until December 31, 2013. In addition, during the period from the date hereof until the Closing, Arclight shall use its commercially reasonable efforts to obtain
the agreement of each Arclight Member not listed on Schedule 3.1 (excluding the Arclight Members listed on Schedule 8.5(a)) to continue to provide its Member Data to Arclight royalty-free until December 31, 2013. Upon the request of

  

 8 

 
NDCHealth, Arclight shall provide to NDCHealth copies of any documents evidencing the agreements contemplated by this Section 3.1. 
  
 3.2 Wal-Mart. During the period from the date hereof until the
Closing, Arclight shall in good faith cooperate with NDCHealth in connection with any discussions between NDCHealth and Wal-Mart regarding the continued provision of Wal-Mart’s Member Data to Arclight. In addition, in the event Wal-Mart resigns
as an Arclight Member in accordance with the terms of the Agreement To Be Bound, dated as of April 16, 2001 (the “Agreement To Be Bound”), between Arclight and Wal-Mart at any time during the term of this Agreement, then, (a) Arclight
shall not terminate Wal-Mart’s Data Contribution Agreement pursuant to Section 4 of the Agreement To Be Bound without NDCHealth’s prior written consent; and (b) NDCHealth shall reimburse Arclight for the cost of any Wal-Mart Member Data
provided to Arclight pursuant to Section 3(a) of Wal-Mart’s Data Contribution Agreement (as modified by Section 1(c) of the Agreement To Be Bound) after the date of Wal-Mart’s resignation. Notwithstanding anything else contained herein to
the contrary, NDCHealth shall have no obligation to reimburse Arclight for any amounts owed by Arclight to Wal-Mart pursuant to Section 3(a)(ii) of Wal-Mart’s Data Contribution Agreement (as modified by Section 1(c) of the Agreement To Be
Bound). 
  
 3.3 Waiver of Certain Rights. With respect to
the period of time beginning at the Closing and continuing until any termination or expiration of this Agreement, Arclight hereby waives its rights to require NDCHealth to comply with Sections 8.4(a) and 8.4(c) of that certain Asset Purchase
Agreement, dated as of May 29, 2002, between NDCHealth and Arclight (and Arclight hereby acknowledges and agrees that any failure by NDCHealth to comply therewith as contemplated hereby shall not constitute a breach or default thereof by NDCHealth).

  
 4. TRANSMISSION OF ARCLIGHT DATA. 
  
 4.1 Security. In connection with its use of the Arclight Data
hereunder, NDCHealth shall implement the security measures set forth on Exhibit F, and such other measures as may be necessary for NDCHealth to comply with applicable laws and regulations. In addition, upon the request of Arclight or any
Arclight Member (but no more frequently than once per quarter, regardless of who requests it), NDCHealth shall, at its sole cost and expense, engage an independent third party to perform a security audit with respect to NDCHealth’s use of
Arclight Data. Arclight and any Arclight Member may participate in any such audit and shall hold all Confidential Information and Trade Secrets of NDCHealth obtained during any such audit in confidence, except to the extent reasonably necessary for
Arclight or any Arclight Member to enforce its rights under this Agreement or as otherwise required to be disclosed by law. Arclight or any Arclight Member shall give NDCHealth at least five (5) business days advance written notice of any requested
audit. The parties shall cooperate in the conduct of the audit, and Arclight and any Arclight Member shall comply with the reasonable security procedures of NDCHealth in connection therewith. Any such audit shall be conducted during normal business
hours and in a manner that does not interfere unreasonably with NDCHealth’s operations. 
  
 4.2 Quality Control. Arclight hereby represents and warrants to NDCHealth that, as of the date hereof, Exhibit G sets forth the quality control procedures applicable to each Arclight Member with respect
to the Member Data it provides. 
  

 9 

 5. DATA CONTRIBUTION AGREEMENTS. The parties hereto hereby acknowledge that Arclight has certain obligations
pursuant to the Data Contribution Agreements to de-identify and aggregate the Member Data it receives pursuant to such agreements. In connection with the transactions contemplated by this Agreement, Arclight hereby authorizes, empowers and engages
NDCHealth to, and NDCHealth agrees to, encrypt all source and patient identification data embedded in all Member Data received by it hereunder from any Arclight Member and aggregate all such Member Data with the Member Data received by it hereunder
from other Arclight Members (provided NDCHealth shall also have the right to aggregate all such Arclight Data with data received by it from other sources in accordance with the terms of this Agreement). 
  
 6. COORDINATING COMMITTEE. 
  
 6.1 General. The parties hereto shall establish and, during the term
of this Agreement, maintain a “Coordinating Committee” to periodically review the relationship between the parties and their respective performance of this Agreement, all as contemplated by this Section 6. 
  
 6.2 Composition of Coordinating Committee. The Coordinating Committee
shall be comprised of the managers of Arclight (each such manager an “Arclight Representative” and, together, the “Arclight Representatives”) and at least three (3) representatives of NDCHealth (each an “NDCHealth
Representative” and, together, the “NDCHealth Representatives”), and each party may change its representatives on the Coordinating Committee on an annual basis (an “Annual Term”) or as otherwise agreed by the parties;
provided, that, if any Arclight Representative or any NDCHealth Representative resigns voluntarily or is otherwise unable to serve, the party appointing such representative shall designate a replacement therefor to serve for the remainder of the
then-applicable Annual Term; provided, further, that the Chief Executive Officer of NDCHealth shall be an NDCHealth Representative during each and every Annual Term. The initial chairperson of the Coordinating Committee shall be Brendan A. Ford, who
shall, among other things, facilitate and organize the First Committee Meeting (as defined in Section 6.3). 
  
 6.3 Meetings. The Coordinating Committee shall meet on a quarterly basis to review the prior quarter’s activities and royalties (as provided
in Section 8.3), to discuss activities in future periods and to consider such other matters as may be reasonably requested by a majority of the Arclight Representatives or a majority of the NDCHealth Representatives. At the last quarterly meeting
during each Fiscal Year, NDCHealth shall make a presentation to the Coordinating Committee regarding its operating plan with respect to NDCHealth Products for the following Fiscal Year. The first meeting of the Coordinating Committee shall be held
within ninety (90) days after the Closing (the “First Committee Meeting”), and, at such meeting, the Coordinating Committee shall adopt appropriate procedures to govern the conduct of its meetings.  
  
 6.4 Approval Rights. Notwithstanding anything else contained herein to
the contrary, NDCHealth shall not commingle, combine, aggregate or disaggregate any Arclight Data in any Non-Core Product or R&C Studies product suite offered for license or sale by NDCHealth to any third party without the prior approval of a
majority of the Arclight Representatives then serving 

  

 10 

 
on the Coordinating Committee, either in writing or at a duly convened meeting of the Coordinating Committee. 
  
 7. OTHER AGREEMENTS. The Data Delivery Agreement shall not be affected by this
Agreement and shall continue in full force and effect according to its terms; provided, however, that at the Closing, the parties shall enter into an amendment to the Data Delivery Agreement (the “DDA Amendment”). The DDA Amendment shall
provide that: (a) in the event this Agreement is still in effect at the end of the Initial Term (as such term is defined in the Data Delivery Agreement, i.e., May 29, 2005), the term of the Data Delivery Agreement shall be extended to be
co-terminus with this Agreement; (b) for a period of three (3) years after the Closing, Arclight shall continue to pay to NDCHealth in cash all fees owed by Arclight to NDCHealth pursuant to Section 5.1 of the Data Delivery Agreement; (c) for all
years subsequent to the third anniversary of the Closing, Arclight shall pay no such fees to NDCHealth, and NDCHealth instead shall reduce the royalties it pays to Arclight pursuant to Section 8.3 hereof, by an amount equal to the amount Arclight
otherwise would be required to pay to NDCHealth pursuant to Section 5.1 of the Data Delivery Agreement; (d) notwithstanding anything in this Agreement to the contrary, beginning with NDCHealth’s Fiscal Year 2005 and continuing with respect to
each Fiscal Year thereafter, Arclight shall not be required to pay (or be deemed to pay as contemplated by subsection (c) above) any fees to NDCHealth pursuant to Section 5.1 of the Data Delivery Agreement to the extent any such fees would exceed
the royalties paid by NDCHealth to Arclight pursuant to Section 8.3 hereof with respect to such Fiscal Year; (e) the timing of payments to be made pursuant to the Data Delivery Agreement will be changed from monthly to quarterly beginning with
NDCHealth’s 2005 Fiscal Year; and (f) notwithstanding the provisions of Section 2.1 of the Data Delivery Agreement, NDCHealth shall not have the right after the Closing to add any new “NDCHealth Data Providers” (as defined in the Data
Delivery Agreement), without the prior written consent of Arclight. 
  
 8. COMPENSATION. 
  
 8.1 Initial Exclusivity
Fee. At the Closing, NDCHealth shall issue to Arclight as the “Initial Exclusivity Fee” a number of shares of unregistered NDCHealth Common Stock equal to the quotient resulting from (a) $10,000,000, divided by (b) the average
closing price of NDCHealth Common Stock for the twenty (20) trading days immediately preceding the third trading day prior to the Closing (the “Average Closing Price”). In addition, at the Closing NDCHealth and Arclight shall enter into:
(y) the Registration Rights Agreement, pursuant to which NDCHealth shall grant, with respect to the shares of NDCHealth Common Stock to be received by Arclight pursuant to this Agreement or upon its exercise of the Warrant Agreement: (i) piggyback
registration rights and (ii) one (1) demand registration, which shall only be exercisable if Arclight terminates this Agreement pursuant to Section 18.2 or 18.3 within the nine (9) month period beginning as of the Closing; and (z) the Warrant
Agreement, pursuant to which NDCHealth shall grant to Arclight the right to purchase, in exchange for an aggregate exercise price of $10,000,000, the same number of shares of NDCHealth Common Stock as are issued to Arclight at the Closing as the
Initial Exclusivity Fee pursuant to this Section 8.1; provided, however, Arclight shall not have the right to exercise its purchase rights under the Warrant Agreement until the third anniversary of the Closing, and the Warrant Agreement shall expire
on the fifth anniversary of the Closing. As soon as reasonably practicable after the Closing, NDCHealth shall, to the extent required by the rules of the NYSE, file with the NYSE a 

  

 11 

 
listing application or other notice as may be required with respect to the shares of NDCHealth Common Stock issued to Arclight at the Closing as the Initial
Exclusivity Fee and use its commercially reasonable efforts to obtain approval for the listing of such shares. 
  
 8.2 Additional Contingent Exclusivity Fee. Provided that each of the following conditions is satisfied on or before the third anniversary of the
Closing, then on such date, NDCHealth shall issue or pay (as the case may be) to Arclight the “Additional Contingent Exclusivity Fee” (as hereinafter defined): 
  
 (a) the term of this Agreement is extended until December 31, 2013, pursuant to Section 18.1; and

  
 (b) Wal-Mart has not resigned as an Arclight
Member in accordance with the terms of the Agreement To Be Bound. 
  
 For purposes
of this Agreement, and subject to Section 8.5, the “Additional Contingent Exclusivity Fee” shall mean, at Arclight’s election: (y) a number of unregistered shares of NDCHealth Common Stock equal to the quotient resulting from (i)
$10,000,000, divided by (ii) the average closing price for NDCHealth Common Stock for the twenty (20) trading days immediately preceding the third trading day prior to December 31, 2006; or (z) a cash fee in the amount of $10,000,000 (such amount to
be paid via wire transfer of immediately available funds to the bank account specified by Arclight and in lieu of any shares of NDCHealth Common Stock). Notwithstanding the foregoing, in the event Arclight elects to receive the Additional Contingent
Exclusivity Fee pursuant to subsection (y) above, Arclight shall deliver to NDCHealth an investment letter in form reasonably acceptable to NDCHealth addressing the same matters set forth in Section 11.4, but with respect to the NDCHealth Common
Stock to be issued as the Additional Contingent Exclusivity Fee. As soon as reasonably practicable after the issuance thereof, NDCHealth shall to the extent required by the rules of the NYSE, file with NYSE a listing application or other notice as
may be required with respect to any shares of NDCHealth Common Stock issued to Arclight as the Additional Contingent Exclusivity Fee and use its commercially reasonable efforts to obtain approval for the listing of such shares. 
  
 8.3 Royalties. NDCHealth shall also pay to Arclight royalties
calculated and paid in accordance with Exhibit H. 
  
 8.4
Audit Rights Regarding Royalties. Arclight shall have the right, (i) once per calendar year and (ii) at any such time as Arclight reasonably believes that NDCHealth has violated Section 8.3 of this Agreement, at its sole cost and expense, to
engage an independent accounting firm to audit NDCHealth’s applicable books, records and computer systems for verification of the royalties paid by NDCHealth pursuant to Section 8.3 hereof. Arclight and its auditors shall hold all Confidential
Information and Trade Secrets of NDCHealth obtained during any such audit in confidence, except to the extent reasonably necessary for Arclight to enforce its rights under this Agreement or as otherwise required to be disclosed by law. Arclight
shall give NDCHealth at least five (5) business days advance written notice of any requested audit. The parties shall cooperate in the conduct of the audit, and Arclight and its auditors shall comply with the reasonable security procedures of
NDCHealth in connection therewith. Any such audit shall be conducted during normal business hours and shall not interfere unreasonably with 

  

 12 

 
NDCHealth’s operations. If, as a result of any such audit, it is determined that NDCHealth has underpaid Arclight, NDCHealth shall promptly pay the past
due amount, plus interest accruing on such amount from the date such payment became due until the time such payment is made (the interest rate to be determined by the prime rate as published in the Wall Street Journal on the date such payment
became due). If any such audit reveals NDCHealth underpaid Arclight by an amount greater than or equal to five percent (5%) of the amount owed for the period audited, then NDCHealth shall reimburse Arclight for its reasonable out-of-pocket costs
associated with such audit. 
  
 8.5 Adjustment Based on Member
Data. In the event any Arclight Member, other than any Arclight Member set forth on Schedule 8.5(a), ceases to provide (on a royalty-free basis) its Member Data to Arclight for inclusion in the Arclight Data prior to the third anniversary
of the Closing, then: (a) Arclight shall, at its election, either (I) pay to NDCHealth in immediately available funds, within thirty (30) days thereafter an amount equal to the “Applicable Percentage” (as defined below) of $10,000,000 or
(II) transfer to NDCHealth (together with stock powers duly executed in blank), within 30 days thereafter an amount equal to the Applicable Percentage of the shares of NDCHealth Common Stock received by Arclight pursuant to Section 8.1(a); and (b)
the references to $10,000,000 (or such lesser amount as may have been previously determined pursuant hereto) contained in Sections 8.2 (y)(i) and 8.2(z) shall be changed to an amount equal to (i) $10,000,000 (or such lesser amount as may have been
previously determined pursuant hereto) less (ii) an amount equal to the Applicable Percentage of $10,000,000. Notwithstanding the foregoing, no adjustment pursuant to subsections (a) and (b) above shall be made in the event an Arclight Member
ceases to provide (on a royalty-free basis) its Member Data to Arclight because NDCHealth refused for any reason to extend the term of, or enter into a replacement agreement with respect to (which extension or replacement may be on new or different
terms), any written agreement in effect as of the date hereof between NDCHealth and such Arclight Member (or, if applicable, a third party aggregator) pursuant to which NDCHealth purchases prescription data generated by such Arclight Member (either
directly or through such third party aggregator) comparable to the Member Data. For purposes of this Agreement, “Applicable Percentage” shall mean, with respect to any Arclight Member: (x) in the event Wal-Mart has not then previously
resigned as an Arclight Member in accordance with the Agreement To Be Bound, the current applicable percentage with respect to such Arclight Member set forth on Part I of Schedule 8.5(b); and (z) in the event Wal-Mart has then previously
resigned as an Arclight Member in accordance with the Agreement To Be Bound, the applicable percentage (excluding Wal-Mart) with respect to such Arclight Member set forth on Part II of Schedule 8.5(b). Notwithstanding anything else contained herein
to the contrary, but subject to Section 18.3(b), the remedy provided pursuant to this Section 8.5 shall be NDCHealth’s sole and exclusive remedy in the event an Arclight Member ceases to provide its Member Data to Arclight on a royalty-free
basis for any reason at any time after the date hereof. Except as set forth in Section 3.2(b), Arclight shall not be required to purchase data from an Arclight Member to comply with its obligations hereunder. 
  
 9. COMPLIANCE WITH LAWS. In the performance of this Agreement, each party shall comply
with all applicable federal, state and local laws, rules and regulations, including the Health Insurance Portability and Accountability Act of 1996, as amended (“HIPAA”). 
  

 13 

 10. NDCHEALTH WARRANTIES. NDCHealth represents and warrants to Arclight on the date hereof as follows: 

 
 10.1 Power and Authority. (a) It is duly organized, validly
existing and in good standing under the laws of the State of Delaware. (b) It has full corporate power and authority to execute, deliver and perform this Agreement. (c) This Agreement, once validly executed by both parties, is a valid and binding
obligation of NDCHealth, enforceable in accordance with its terms. (d) The execution, delivery and performance of this Agreement by NDCHealth shall not result in any violation of any formation or governing documents of NDCHealth or any applicable
law, rule, regulation, order, writ, judgment, decree of any court or governmental or regulatory agency or authority, or any agreement, document or instrument to which NDCHealth is a party, by which it is bound or to which it is subject. (e) All
shares of NDCHealth Common Stock issued hereunder, when issued in accordance with the terms hereof, shall be duly authorized, validly issued, fully paid and nonassessable. 
  
 10.2 Rights In NDCHealth Products. (a) All Core Products perform in accordance with all applicable laws and
regulations in existence as of the date hereof, except to the extent any nonperformance would not materially impair NDCHealth’s ability to meet the Net Revenue minimum thresholds set forth on Exhibit H. (b) No Core Product infringes,
misappropriates or violates any rights or claimed rights of any third party, including copyrights, patents, trademarks, service marks, trade secrets and other proprietary rights. (c) As of the Closing, it will hold or have obtained, as applicable,
all licenses, consents and authorizations required to perform its obligations under this Agreement. 
  
 10.3 SEC Documents. NDCHealth has made available to Arclight (a) its annual report on Form 10-K for its fiscal year ended May 30, 2003, (b) its
quarterly report on Form 10-Q for its quarter ended August 29, 2003, (c) its proxy or information statements relating to meetings of, or actions taken without a meeting by, the stockholders of NDCHealth since May 30, 2003, and (d) all of its other
reports, statements, schedules and registration statements filed with the SEC since May 30, 2003 (all of the documents in subsections (a) - (d) being referred to herein collectively as the “SEC Documents”). As of its filing date,
each SEC Document complied in all material respects with the Securities Act or Exchange Act, as the case may be, and the rules and regulations of the SEC thereunder. None of the SEC Documents contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, except to the extent any such misstatement or omission has
been superseded by a subsequent report or other document filed with the SEC prior to the date hereof. 
  
 10.4 Financial Statements. As of the applicable filing date, the consolidated financial statements (including, in each case, any related notes) of
NDCHealth included in the SEC Documents complied as to form and substance in all material respects with applicable accounting requirements of the SEC and the published rules and regulations of the SEC or other applicable SEC or NYSE rules and
regulations with respect thereto. Such financial statements were prepared in accordance with generally accepted accounting principles of the United States (“GAAP”) applied on a consistent basis during the periods involved (except (i) as
may be otherwise indicated in such financial statements or the notes thereto or (ii) in the case of unaudited interim statements, to the extent that they may include footnotes, may be condensed or 

  

 14 

 
summary statements) and fairly presented in all material respects, the financial position of NDCHealth as of the respective dates thereof and the results of
operations and cash flows for the periods indicated (subject, in the case of unaudited statements, to normal year-end audit adjustments). 
  
 10.5 Absence of Material Adverse Effect. Since August 29, 2003, no Material Adverse Effect has occurred or exists and to NDCHealth’s
knowledge, no event or circumstance has occurred that, with notice or passage of time or both, is reasonably likely to result in a Material Adverse Effect with respect to NDCHealth. 
  
 10.6 HSR. NDCHealth is its own sole “ultimate parent entity” (as defined in 16 C.F.R. § 801.1(a)(3)).
The fair market value of the assets deemed to be acquired under the HSR Act pursuant to this Agreement have, within the sixty (60) day period prior to the Closing, been determined in good faith to be $50 million or less, by the Board of Directors of
NDCHealth or by an entity delegated that function by such Board of Directors. 
  
 11. ARCLIGHT WARRANTIES. Arclight represents and warrants to NDCHealth as of the date hereof as follows: 
  
 11.1 Power and Authority. (a) It is duly organized, validly existing and in good standing under the laws of the State of Delaware; (b) It has full
limited liability company power and authority to execute, deliver and perform this Agreement; (c) This Agreement, once validly executed by both parties, is a valid and binding obligation of Arclight, enforceable in accordance with its terms; and (d)
Except as set forth on Schedule 11.1, the execution, delivery and performance of this Agreement by Arclight shall not result in any violation of any formation or governing document of Arclight or any applicable law, rule, regulation, order,
writ, judgment, decree of any court or governmental or regulatory agency or authority, or any agreement, document or instrument to which Arclight is a party, by which it is bound or to which it is subject. 
  
 11.2 Data Contribution Agreements. (a) Exhibit D contains a
correct and complete list of all Data Contribution Agreements. (b) Except as set forth on Schedule 11.2, each Data Contribution Agreement is in full force and effect, is valid and enforceable in accordance with its terms, and constitutes a
legal and binding obligation of each party thereto. (c) Arclight has neither given nor received any notice of default, termination or partial termination under any Data Contribution Agreement to which an Arclight Member is a party, and, except as
set forth on Schedule 11.2, there is no existing or continuing default by Arclight or, to its knowledge, any other party in the performance of any obligation under any such Data Contribution Agreement which would give rise to any right to
terminate such Data Contribution Agreement. (d) Arclight has complied with the provisions of each Data Contribution Agreement, except to the extent its failure to comply would not give rise to any right to terminate such Data Contribution Agreement.

  
 11.3 Rights in Licensed Items. (a) All Licensed Items
perform in accordance with all applicable laws and regulations in existence as of the date hereof, except to the extent any nonperformance would not have a material adverse effect on NDCHealth’s ability to use the Licensed Items or give rise to
a material obligation of NDCHealth. (b) No Licensed Item 

  

 15 

 
infringes, misappropriates or violates any rights or claimed rights of any third party enforceable in the United States, including copyrights, patents,
trademarks, service marks, trade secrets and other proprietary rights. (c) No Licensed Item contains (i) any software code that is designed to be capable of disrupting, disabling or self-limiting the computer hardware or software associated with
performing, or used in connection with, the Licensed Items, including locks, time bombs, and trap doors, (ii) any malicious software code that is designed to disrupt, cause damage to or deplete the resources of any computer hardware or software
associated with performing the Licensed Items by self-duplicating, altering any files or otherwise, including viruses, Trojan horses, or worms, or (iii) any hidden communication capacity not reflected in this Agreement, except in the case of
subsection (i), (ii) or (iii) above, to the extent it would not have a material adverse effect on NDCHealth’s ability to use the Licensed Items or give rise to a material obligation of NDCHealth. (d) Except as set forth on Schedule
11.3(d), as of the Closing, it will hold or have obtained, as applicable, all licenses, consents and authorizations required to perform its obligations under this Agreement. 
  
 11.4 Investment Intent. Arclight understands and acknowledges that the shares of NDCHealth Common Stock to be issued
to it as the Initial Exclusivity Fee (the “Initial NDCHealth Shares”): (a) will not have been registered under the Securities Act or under any state securities laws; and (b) must be held indefinitely, unless and until subsequently
registered or an exemption from registration becomes available (and the certificate(s) representing such shares shall bear an appropriate restrictive legend noting the same). Arclight is acquiring the Initial NDCHealth Shares for its own account,
for investment purposes only, and not with a view to any distribution or resale thereof. Arclight has received the SEC Documents and all other information about NDCHealth requested by it in order to evaluate the merits and risks inherent in holding
the Initial NDCHealth Shares. Arclight is a sophisticated investor with knowledge and experience in financial matters, is capable of evaluating the merits and risks of an investment in the Initial NDCHealth Shares, has the capacity to protect its
own interests in connection with the transactions contemplated by this Agreement, is able to bear the economic risk of its investment in the Initial NDCHealth Shares, is presently able to afford the complete loss of such investment, and is an
“accredited investor” (as defined in Rule 501 of Regulation D promulgated under the Securities Act). 
  
 12. EXCLUSION OF OTHER WARRANTIES. THE WARRANTIES CONTAINED IN SECTIONS 10 AND 11 ABOVE ARE IN LIEU OF ANY AND ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, WRITTEN OR ORAL (INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, ACCURACY OF THE DATA, TITLE AND NON-INFRINGEMENT) OF EITHER PARTY HERETO. THIS DISCLAIMER SHALL NOT AFFECT OR DIMINISH IN ANY WAY THE OBLIGATION OF EITHER PARTY TO COMPLY WITH THE PRIVACY AND
SECURITY REQUIREMENTS ENACTED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES UNDER HIPAA. 
  

 16 

 13. INDEMNIFICATION. 
  
 13.1 Indemnification by NDCHealth. NDCHealth shall indemnify, defend and hold Arclight and its Affiliates, and their respective officers,
directors, managers, agents and employees, harmless from and against any and all liabilities, damages, losses, expenses, claims, demands, suits, fines or judgments, including reasonable attorneys’ fees, and costs and expenses incidental
thereto, which may be suffered by, accrued against, charged to or recoverable from Arclight or any of its Affiliates, or any of their respective officers, directors, managers, agents or employees, arising out of or resulting from: (a) the marketing,
license or sale of NDCHealth Products (excluding any matter for which Arclight is providing indemnification hereunder); (b) NDCHealth’s use of the Licensed Items, other than as permitted by this Agreement; (c) any breach of any representation,
warranty, covenant or agreement in this Agreement by NDCHealth (other than any willful breach for which NDCHealth shall indemnify Arclight in accordance with subsection (e) below); (d) NDCHealth’s violation of any applicable federal, state,
local or other laws, regulations, rules, ordinances or codes (including any violation of HIPAA or similar state privacy laws) in the performance of this Agreement, except to the extent caused by Arclight or any Arclight Member (but only to the
extent such violation is caused by the failure of any Arclight Member to comply with the terms of its respective Data Contribution Agreement); or (e) the gross negligence or willful misconduct of NDCHealth. 
  
 13.2 Indemnification by Arclight. Arclight shall indemnify, defend and
hold NDCHealth and its Affiliates, and their respective officers, directors, managers, agents and employees, harmless from and against any and all liabilities, damages, losses, expenses, claims, demands, suits, fines or judgments, including
reasonable attorneys’ fees, and costs and expenses incidental thereto, which may be suffered by, accrued against, charged to or recoverable from NDCHealth or any of its Affiliates, or any of their respective officers, directors, managers,
agents or employees, arising out of or resulting from: (a) any breach of any representation, warranty, covenant or agreement in this Agreement by Arclight (other than any willful breach for which Arclight shall indemnify NDCHealth in accordance with
subsection (d) below); (b) a third party claim that Arclight has insufficient rights to provide any Arclight Data to NDCHealth in the manner required by this Agreement and/or to allow NDCHealth to use the same as permitted hereunder; (c)
Arclight’s violation of any applicable federal, state, local or other laws, regulations, rules, ordinances or codes in the performance of this Agreement; or (d) the gross negligence or willful misconduct of Arclight. 
  
 13.3 Indemnification Process. The indemnification obligations
hereunder shall require that promptly after either party receives a threat of any such action, or a notice of the commencement or filing of any action which may be subject to the provisions of this Section 13, NDCHealth or Arclight, as applicable,
shall notify the indemnifying party and tender the matter to the indemnifying party for resolution or litigation, at the indemnifying party’s sole cost and expense. The failure to notify the indemnifying party shall not relieve it from any
liability which it may have under this Section 13, except to the extent it has been materially prejudiced by such failure. The indemnifying party shall keep the other party reasonably apprised of the continuing status of the claims or actions
covered by this Section, including any lawsuits resulting therefrom, and shall permit the other party, upon its written request, to participate (at the indemnified party’s own expense) in the defense or settlement of any such claim or action.
Each indemnified party, as a condition of the indemnity obligations contained in this Section 13 shall 

  

 17 

 
cooperate with the indemnifying party in the defense and settlement of any such claim or action. In any claim or action, the defense of which is controlled
by the indemnifying party, the indemnifying party shall not, without the indemnified party’s prior written consent (which consent shall not be unreasonably withheld, delayed or conditioned), compromise or settle such claim if: (a) such
compromise or settlement would: (i) impose an injunction or other equitable relief upon the indemnified party (except with regard to the use of any infringing intellectual property); and/or (ii) result in any finding, admission or the like with
respect to the indemnified party or its business, assets or properties; or (b) such compromise or settlement does not include a release of the indemnified party (fully funded under this Section 13 by the indemnifying party) from all liability
relating to such claim for which the indemnified party is entitled to be indemnified. 
  
 14. DAMAGES AND LIMITATION OF LIABILITY. 
  
 14.1
EXCEPT FOR CLAIMS ARISING OUT OF A BREACH OF CONFIDENTIALITY PROVIDED FOR IN ARTICLE 15 AND FOR INDEMNIFICATION PURSUANT TO SECTIONS 13.1(a), 13.1(b), 13.1(e), 13.2(b), or 13.2(d), IN NO EVENT SHALL NDCHEALTH OR ARCLIGHT BE LIABLE FOR ANY PUNITIVE,
INCIDENTAL, CONSEQUENTIAL, OR ANY OTHER INDIRECT LOSS OR DAMAGE, INCLUDING LOST PROFITS, ARISING OUT OF THIS AGREEMENT OR ANY OBLIGATION RESULTING THEREFROM, WHETHER IN AN ACTION FOR OR ARISING OUT OF ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF
ACTION, WHETHER IN CONTRACT, TORT INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE. NO ACTION OR PROCEEDING HEREUNDER OR RELATING HERETO MAY BE COMMENCED MORE THAN TWO YEARS AFTER THE DATE THE INJURED PARTY BECOMES AWARE OF THE CAUSE OF ACTION.

  
 14.2 EXCEPT FOR (a) CLAIMS ARISING OUT OF A BREACH OF
CONFIDENTIALITY PROVIDED FOR IN SECTION 15 AND FOR INDEMNIFICATION PURSUANT TO SECTIONS 13.1(a), 13.1(b), 13.1(c) (BUT ONLY WITH RESPECT TO A BREACH OF THE REPRESENTATIONS CONTAINED IN SECTION 10.6)), 13.1(d), 13.1(e), 13.2(b), 13.2(c), and 13.2(d),
AND (b) ANY PAYMENT OBLIGATIONS AS SET FORTH IN THIS AGREEMENT (OTHER THAN PURSUANT TO SECTION 13), EACH OF NDCHEALTH’S AND ARCLIGHT’S CUMULATIVE AGGREGATE LIABILITY ARISING UNDER THIS AGREEMENT, FOR ANY AND ALL CLAIMS, LOSSES, DAMAGES, OR
EXPENSES, FROM ANY CAUSE WHATSOEVER, REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT OR TORT INCLUDING NEGLIGENCE, STRICT LIABILITY OR OTHERWISE, SHALL BE LIMITED TO DIRECT, PROVEN DAMAGES IN AN AMOUNT NOT TO EXCEED TWO MILLION DOLLARS
($2,000,000); PROVIDED, HOWEVER, ARCLIGHT SHALL BE LIABLE FOR UP TO AN ADDITIONAL EIGHT MILLION DOLLARS ($8,000,000) OF DAMAGES WITH RESPECT TO ANY CLAIM UNDER SECTION 13.2(a) FOR ANY BREACH OF SECTION 11.3(b); PROVIDED FURTHER, NDCHEALTH SHALL ONLY
BE ENTITLED TO OFFSET ANY SUCH DAMAGES AGAINST THE ROYALTIES OWED BY IT PURSUANT TO SECTION 8.3. 
  

 18 

 14.3 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY DAMAGES, HOWEVER DESIGNATED, FOR FAILURE TO PERFORM
UNDER THIS AGREEMENT TO THE EXTENT SUCH FAILURE TO PERFORM WAS CAUSED BY ANY ACT OR OMISSION TO ACT BY THE OTHER PARTY OR SUCH OTHER PARTY’S EMPLOYEES, AGENTS, REPRESENTATIVES OR MEMBERS (IN THEIR CAPACITY AS SUCH). 
  
 15. CONFIDENTIALITY. 
  
 15.1 Confidentiality Obligations. In recognition of the other party’s need to protect its legitimate business
interests, each party hereto hereby covenants and agrees that it shall regard and treat each item of information or data constituting a Trade Secret or Confidential Information of the other party as strictly confidential and wholly owned by such
other party and that it will not use, distribute, disclose, reproduce or otherwise communicate any such item of information or data to any Person for any purpose other than in connection with its performance of this Agreement (and in accordance with
the terms of this Article 15). The covenant contained in the preceding sentence shall apply: (i) with respect to Confidential Information, at all times during the term of this Agreement and for a period of three (3) years thereafter; and (ii) with
respect to Trade Secrets, at all times such data or information constitutes a “trade secret” under applicable law. 
  
 15.2 Permitted Disclosure. Each party may disclose Confidential Information and Trade Secrets of the other party to those of its officers,
directors, employees, agents, independent contractors and advisors who need to know such Confidential Information or Trade Secrets in order to enable such party to perform its obligations under this Agreement or any other document or instrument
executed in connection with the consummation of the transactions contemplated hereby. Notwithstanding anything in this Agreement to the contrary, Arclight shall be permitted to disclose this Agreement and all matters related hereto to the Arclight
Members; provided, however: (a) Arclight shall not disclose any Confidential Information or Trade Secrets of NDCHealth regarding any agreement between NDCHealth and an Arclight Member to any other Arclight Member; and (b) Arclight shall not disclose
any Confidential Information or Trade Secrets of NDCHealth to any Arclight Member unless and until such Arclight Member has agreed in writing to maintain the confidentiality thereof on terms no less favorable than those contained in this Section 15.
Each party shall be responsible for ensuring the continued confidentiality of all Trade Secrets and Confidential Information of the other party known by, disclosed or made available to such of its officers, directors, employees, agents, independent
contractors and advisors, including, without limitation, instructing its officers, employees, independent contractors, agents and advisors to maintain the confidentiality of such Confidential Information and Trade Secrets. 
  
 15.3 Required Disclosure. Subject to Section 15.4 below, if a party
becomes legally compelled to disclose any Confidential Information or Trade Secrets of the other party (whether by judicial or administrative order, applicable law, rule or regulation, or otherwise), such party will use its reasonable efforts to
provide the other party with prior notice thereof so that the other party may seek a protective order or other appropriate remedy to prevent such disclosure; provided, however, that such party will use its reasonable efforts (at the other
party’s expense) to maintain the confidentiality of such Confidential Information and Trade Secrets. If such protective order or other remedy is not obtained prior to the time such disclosure is required, 

  

 19 

 
such party will only disclose that portion of such Confidential Information and Trade Secrets which it is legally required to disclose. 
  
 15.4 Tax Treatment and Tax Structure. Notwithstanding anything to the
contrary set forth herein, except as reasonably necessary to comply with applicable securities laws, any parties to the transactions contemplated by this Agreement (referred to in this paragraph as the “Transaction”) (and each employee,
representative, or other agent of such parties) may disclose to any and all persons, without limitation of any kind, the Tax Treatment and Tax Structure of the Transaction and all materials of any kind (including opinions or other tax analyses) that
are provided to it relating to such Tax Treatment and Tax Structure. For purposes of this provision, “Tax Treatment” is strictly limited to the purported or claimed U.S. federal income tax treatment of the Transaction contemplated by this
Agreement and “Tax Structure” is strictly limited to any fact that may be relevant to understanding the purported or claimed U.S. federal income tax treatment of the Transaction, and neither term includes information relating to the
identity of any party to the Transaction or any of such party’s representatives, the existence and status of negotiations between the parties, or financial, business, legal or other information regarding a party (or any of its Representatives),
to the extent not related to the Tax Treatment or Tax Structure of the Transaction. This authorization of tax disclosure is retroactively effective to the commencement of the first discussions between the parties regarding the Transaction
contemplated herein. These provisions are meant to be interpreted so as to prevent the Transaction from being treated as offered under “conditions of confidentiality” within the meaning of the Internal Revenue Code and the Treasury
Regulations thereunder. 
  
 15.5 Return of Information.
Upon termination of this Agreement, or promptly upon receipt of written notice from the other party, each party shall return to the other party all copies, versions or abstracts of written or descriptive materials of any kind that contain or discuss
any Confidential Information or Trade Secrets of such other party, and the confidentiality obligations of this Agreement shall continue in full force and effect. 
  
 16. CONDITIONS TO CLOSING. 
  
 16.1 Arclight Conditions to Closing. The obligations of Arclight under this Agreement are subject to the fulfillment prior to or at the Closing of
each of the following conditions: 
  
 (a) Each of
the representations and warranties of NDCHealth contained in this Agreement that is qualified by materiality shall be true and correct on and as of the Closing as if made on such date and each of the representations and warranties that is not so
qualified shall be true and correct in all material respects on and as of the Closing as if made on and as of such date; 
  
 (b) NDCHealth shall have performed and complied with all agreements and conditions required by this Agreement to be performed or complied
with by it prior to or at the Closing; and 
  
 (c) The Managers of Arclight shall have approved this Agreement and the transactions contemplated hereby. 
  

 20 

 16.2 NDCHealth Conditions to Closing. The obligations of NDCHealth under this Agreement are
subject to the fulfillment prior to or at the Closing of each of the following conditions: 
  
 (a) Each of the representations and warranties of Arclight contained in this Agreement that is qualified by materiality shall be true and
correct on and as of the Closing as if made on such date and each of the representations and warranties that is not so qualified shall be true and correct in all material respects on and as of the Closing as if made on and as of such date;

  
 (b) Arclight shall have performed and
complied with all agreements and conditions required by this Agreement to be performed or complied with by it prior to or at the Closing; 
  
 (c) The Board of Directors of NDCHealth shall have approved this Agreement and the transactions contemplated hereby; 
  
 (d) The Arclight Members (other than any Arclight Member set
forth on Schedule 8.5(a)) shall have agreed in writing to continue to provide their respective Member Data to Arclight on a royalty-free basis until December 31, 2013, as contemplated by Section 3.1; and 
  
 (e) Arclight shall have obtained all required consents to
transfer and assign to NDCHealth the agreements listed on Schedule 16.2 pursuant to the terms of the Transition Agreement. 
  
 16.3 Reasonable Efforts. Each party hereto shall use all reasonable efforts to take or cause to be taken all actions and to do or cause to be done
all things necessary, proper or advisable to enable the Closing to occur as soon as reasonably practical after the date hereof. 
  
 17. CLOSING AND DELIVERIES AT CLOSING. 
  
 17.1 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall be held as soon as reasonably
practicable (but in any event within five (5) business days) after the satisfaction of the conditions contained in Section 16 on such date and at such time and place as the parties shall mutually agree. 
  
 17.2 Arclight Deliveries at Closing. At the Closing, Arclight shall
deliver to NDCHealth each of the following, in form and substance reasonably satisfactory to NDCHealth: 
  
 (a) The Registration Rights Agreement, duly executed by Arclight. 
  
 (b) The Warrant Agreement, duly executed by Arclight. 
  
 (c) The Transition Agreement, duly executed by Arclight.

  
 (d) The DDA Amendment, duly executed by
Arclight. 
  

 21 

 (e) Any other information, documents or certificates reasonably requested by NDCHealth to
give effect to the transactions contemplated hereby. 
  
 17.3
NDCHealth Deliveries at Closing. At the Closing, NDCHealth shall deliver to Arclight each of the following, in form and substance reasonably satisfactory to Arclight: 
  
 (a) The Initial Exclusivity Fee as contemplated by Section 8.1. 
  
 (b) The Registration Rights Agreement, duly executed by
NDCHealth. 
  
 (c) The Warrant Agreement, duly
executed by NDCHealth. 
  
 (d) The Transition
Agreement, duly executed by NDCHealth. 
  
 (e)
The DDA Amendment, duly executed by NDCHealth. 
  
 (f) Any other information, documents or certificates reasonably requested by Arclight to give effect to the transactions contemplated hereby. 
  
 18. TERM AND TERMINATION. 
  
 18.1 Term. The term of this Agreement shall commence as of the date hereof and continue until December 31, 2010; provided, however, that the
provisions of Section 2 shall not become effective until the Closing; provided, further, the term of this Agreement shall be automatically extended to December 31, 2013, in the event NDCHealth is required to pay aggregate royalties to Arclight
pursuant to Section 8.3 in excess of $3,700,000 with respect to the periods ending on or before December 31, 2005. 
  
 18.2 Termination for Breach. Either party may terminate this Agreement by delivering a written termination notice to the other party in the event
such other party fails to correct or cure any material breach of any covenant or agreement contained herein to be performed by such other party after the Closing within ninety (90) days after its receipt of written notice of such breach from such
party. 
  
 18.3 Special Termination Rights. 
  
 (a) Notwithstanding anything else contained herein to the
contrary, in the event (i) NDCHealth materially breaches in an intentional, reckless or grossly negligent manner the provisions contained in Sections 2.4, 5 or 9 (but, with respect to Section 9, only as it relates to a violation of HIPAA or similar
state privacy laws and except to the extent caused by Arclight or any Arclight Member), (ii) Arclight does not earn royalties pursuant to Section 8.3 (without regard to any offset thereto or reduction thereof contemplated by this Agreement) in an
amount equal to at least $1,000,000 with respect to NDCHealth’s 2005 Fiscal Year or at least $2,000,000 with respect to any Fiscal Year thereafter, or (iii) there is a sale, lease, license, combination or other disposition by NDCHealth of any
material asset(s) used in its Information Management Business to any Person not an Affiliate of NDCHealth (whether by sale of stock or assets, merger, consolidation or otherwise) which would adversely affect Net Revenues, then, in each 

  

 22 

 
case, Arclight shall have the right to terminate this Agreement upon delivery of a written termination notice to NDCHealth (which, in the case of clause
(ii), must be made within 120 days after the end of the applicable Fiscal Year). 
  
 (b) Notwithstanding anything else contained herein to the contrary, in the event Arclight is required to pay to NDCHealth at least
$5,000,000 in the aggregate pursuant to Section 8.5(a), then NDCHealth shall also have the right to terminate this Agreement upon delivery of a written termination notice to Arclight (which notice must be delivered to Arclight within 120 days after
NDCHealth becomes aware thereof). 
  
 18.4 Insolvency.
Either party may terminate this Agreement by written notice to the other party, effective immediately upon receipt, if the other party (a) shall file a petition in bankruptcy, (b) shall be adjudicated as bankrupt, (c) shall take advantage of the
insolvency laws of any jurisdiction to which it is subject, (d) shall make an assignment for the benefit of creditors, (e) shall be voluntarily or involuntarily dissolved, (f) shall admit in writing its inability to pay debts as they come due, or
(g) shall have a receiver, trustee or other court officer appointed for its property. 
  
 18.5 Early Termination Right. Either party may terminate this Agreement by delivering a written termination notice to the other party in the event the Closing shall not have occurred on or before December 31,
2003; provided, however, a party shall not be entitled to exercise its rights pursuant to this Section 18.5 in the event the failure to close is caused by any breach of this Agreement by such party. If this Agreement is terminated prior to the
Closing, neither party shall have any further obligations under this Agreement (other than pursuant to Sections 15 and 20.16), provided that nothing herein shall relieve either party from liability for its willful breach of this Agreement.

  
 18.6 Consequences of Termination. Upon expiration or
termination of this Agreement after the Closing: 
  
 (a) NDCHealth shall deliver to Arclight copies of all NDCHealth-owned Improvements. With respect to NDCHealth-owned Improvements that are computer code, such Improvements shall be delivered in both source code and object code formats, and
together with any related documentation; 
  
 (b)
Arclight shall be deemed to have exercised the right and license granted by NDCHealth pursuant to Section 2.6 hereof; 
  
 (c) Each party hereto shall return the Confidential Information and Trade Secrets of the other party, in accordance with Section 15.5;

  
 (d) NDCHealth shall pay to Arclight all
unpaid fees due to Arclight in accordance with the terms hereof; and 
  
 (e) The following sections shall survive the termination or expiration of this Agreement for any reason: 2.1 (but only with respect to Arclight Data received prior to the termination of this Agreement), 2.4, 2.6, 2.9,
8.4 (for a period of six months after termination or expiration of this Agreement), 12, 13, 14, 15, 18.6, 19 and 20. 
  

 23 

 provided, that, if the Closing occurs and this Agreement is duly terminated by Arclight pursuant to Sections 18.2,
18.3(a) or 18.4 within nine (9) months thereafter, NDCHealth shall pay to Arclight an amount equal to $3,000,000 in immediately available funds within two (2) business days after such termination. 
  
 19. DISPUTE RESOLUTION. Disputes arising under this Agreement shall be resolved as
follows: 
  
 19.1 Negotiation between Representatives. If
the parties hereto are unable to agree on any substantive matter under this Agreement (a “Dispute”), the parties shall attempt to resolve the Dispute promptly by negotiations between the NDCHealth Representatives and the Arclight
Representatives for a period of 60 days after notification of a Dispute. 
  
 19.2 Preservation of Status Quo; Ongoing Performance. Notwithstanding anything to the contrary set forth herein, neither party shall be required to submit any Dispute regarding the interpretation of any
provision of this Agreement, the performance by either party of such party’s obligations under this Agreement or a default hereunder to the mechanism set forth above in connection with any temporary restraining order or other temporary or
preliminary relief to preserve the status quo pending final resolution of the Dispute pursuant to this Section 19. Each party agrees to continue performing its obligations under this Agreement pending the resolution of any Dispute that is being
resolved hereunder (including if the Dispute relates to the propriety of a termination by a party), unless and until such obligations are terminated or expire in accordance with the provisions of this Agreement. 
  
 20. MISCELLANEOUS. 
  
 20.1 Notices. 
  
 (a) All notices, consents, requests and other communications hereunder shall be in writing and shall be sent by hand delivery, by
certified or registered mail (return-receipt requested), or by a recognized national overnight courier service as set forth below: 
  

	 If to Arclight:
	  	Arclight Systems LLC
	 	  	c/o Brendan A. Ford
	 	  	Executive Vice President – Corporate Development
	 	  	Cardinal Health Inc.
	 	  	7000 Cardinal Place
	 	  	Dublin, Ohio 43017
		
	 with a copy to:
	  	Gary D. Gerstman
	 	  	Sidley Austin Brown & Wood LLP
	 	  	Bank One Plaza
	 	  	10 S. Dearborn Street
	 	  	Chicago, Illinois 60603

  

 24 

	 If to NDCHealth:
	  	NDCHealth Corporation
	 	  	NDC Plaza
	 	  	Atlanta, Georgia 30329-2010
	 	  	Attention: Chief Executive Officer
		
	 with a copy to:
	  	NDCHealth Corporation
	 	  	NDC Plaza
	 	  	Atlanta, Georgia 30329-2010
	 	  	Attention: General Counsel
		
	 and a copy to:
	  	Stephen E. Lewis
	 	  	Troutman Sanders LLP
	 	  	Bank of America Plaza
	 	  	600 Peachtree Street, NE - Suite 5200
	 	  	Atlanta, Georgia 30308-2216

  
 (b)
Notices delivered pursuant to Section 20.1(a) shall be deemed given: (i) at the time delivered, if personally delivered; (ii) at the time received, if mailed; and (iii) one (1) business day after timely delivery to the courier, if by overnight
courier service. 
  
 (c) Either party hereto may
change the address to which notice is to be sent by written notice to the other party in accordance with this Section 20.1. 
  
 20.2 Survival of Representations and Warranties. The representations and warranties of NDCHealth and Arclight in this Agreement (and any claims of
breach or misrepresentation with respect thereto) shall survive in full force and effect after the Closing; provided, however, the representations and warranties contained in Sections 10.3, 10.4, 10.5, 11.3(c), 11.3(d) and 11.4 shall only survive
for a period of one (1) year after the Closing. 
  
 20.3 Entire
Agreement; Third-Party Beneficiaries. This Agreement, including all Exhibits and Schedules hereto (all of which are incorporated herein by this reference), contains the entire agreement and understanding concerning the subject matter hereof
between the parties and specifically supersedes any other agreement or understanding among the parties related to the subject matter hereof. Except for (i) the Arclight Members (and only with respect to Sections 4.1, 13.1, 20.3 and 20.16) and (ii)
those persons entitled to indemnification under Section 13 (and only to the extent of such indemnification), who are expressly made third-party beneficiaries of this Agreement, nothing in this Agreement, express or implied, is intended to confer on
any Person, other than the parties hereto or their respective successors, any rights, remedies, obligations or liabilities. 
  
 20.4 Waiver; Amendment. No waiver, termination or discharge of this Agreement, or any of the terms or provisions hereof, shall be binding upon
either party unless confirmed in a writing signed by such party. No waiver by either party of any term or provision of this Agreement or of any default hereunder shall affect such party’s rights thereafter to enforce such term or provision or
to exercise any right or remedy in the event of any other default, whether or 

  

 25 

 
not similar. This Agreement may not be modified, amended or supplemented except through a writing signed by both parties. 
  
 20.5 Severability. If any provision of this Agreement shall be held
void, voidable, invalid or inoperative, no other provision of this Agreement shall be affected as a result thereof, and, accordingly, the remaining provisions of this Agreement shall remain in full force and effect as though such void, voidable,
invalid or inoperative provision had not been contained herein. The parties hereto further agree that, in the event such provision is an essential part of this Agreement, they will immediately begin good faith negotiations for a suitable replacement
provision. 
  
 20.6 Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of the State of Georgia, without regard to the principles of conflicts of laws. 
  
 20.7 Assignment. Neither party hereto may assign this Agreement, in whole or in part, without the prior written consent of the other party, and any
attempted assignment not in accordance herewith shall be null and void and of no force or effect. 
  
 20.8 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the parties and their respective successors and
permitted assigns. 
  
 20.9 Headings. The titles, captions
and headings contained in this Agreement are inserted for convenience of reference only and are not intended to be a part of or to affect in any way the meaning or interpretation of this Agreement. 
  
 20.10 Reference with Agreement. Numbered or lettered articles,
sections, paragraphs, subsections, schedules and exhibits herein contained refer to articles, sections, paragraphs, subsections, schedules and exhibits of this Agreement unless otherwise expressly stated. The words “herein,”
“hereof,” “hereunder,” “hereby,” “this Agreement” and other similar references shall be construed to mean and include this Agreement and all Exhibits and Schedules and all amendments to any of them unless the
context shall clearly indicate or require otherwise. The word “including” (and all derivations thereof) shall be construed to mean “including, without limitation.” 
  
 20.11 Enforcement. In the event of any litigation to enforce the terms of this Agreement, the prevailing party in
such dispute will have the right to recover its reasonable attorneys’ fees and litigation costs from the other party. 
  
 20.12 Interpretation. This Agreement shall not be construed more strictly against either party regardless of which party is responsible for its
preparation. 
  
 20.13 Relationship. It is expressly agreed
by the parties hereto that each is at all times acting and performing hereunder as an independent contractor and not as an agent for the other, and that no act of commission or omission of either party hereto shall be construed to make or render the
other party its principal, agent, joint venturer or associate, except to the extent specified herein. Neither party hereto shall have the authority to act in the other party’s name except as is expressly provided in this Agreement. 

 

 26 

 20.14 Further Assurances. Upon the reasonable request of the other party, each party agrees to
take any and all actions necessary or appropriate to give effect to the terms and conditions set forth in this Agreement. 
  
 20.15 Counterparts; Fax Signatures. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute the same Agreement. Any signature page of any such counterpart, or any electronic facsimile thereof, may be attached or appended to any other counterpart to complete a fully executed counterpart of this
Agreement, and any telecopy or other facsimile transmission of any signature shall be deemed an original and shall bind such party. 
  
 20.16 Public Announcements. Neither NDCHealth nor Arclight shall, without the prior written approval of the other, make any press release or other
public announcement concerning the transactions contemplated by this Agreement, except as and to the extent that NDCHealth or any of its Affiliates shall be so obligated by law or the rules of any stock exchange, in which case NDCHealth shall use
its commercially reasonable efforts to provide advance notice thereof to Arclight. NDCHealth shall not make any press release or other public announcement concerning the transactions contemplated by this Agreement that references any Arclight Member
without the prior written consent of such Arclight Member, except as and to the extent that NDCHealth or any of its Affiliates shall be so obligated by law or the rules of any stock exchange, in which case NDCHealth shall use its commercially
reasonable efforts to provide advance notice thereof to such Arclight Member. 
  
 20.17 Payment and Reimbursement of Expenses; Offsets. The parties acknowledge that the royalty payments owed by NDCHealth to Arclight pursuant to Section 8.3 may be subject to offset in accordance with the
terms of Sections 7 and 14.2 of this Agreement. Except as specifically provided in Sections 7 and 14.2, each party hereto shall reimburse the other for any amounts required to be reimbursed by such party pursuant to this Agreement within thirty (30)
days after its receipt of a written invoice therefor from such other party (together with any supporting documentation or other evidence therefor reasonably requested by such party). Except for any setoff pursuant to and in accordance with Sections
7 and 14.2 of this Agreement, it is understood and agreed by the parties that neither party shall be entitled to set off any amounts owing to the other party hereunder for any reason, unless and until any proposed offset (i) has been agreed to in
writing by such other party or (ii) has been finally determined by a court of competent jurisdiction. 
  

 27 

 IN WITNESS WHEREOF, the undersigned have caused their respective duly authorized representatives
to execute this Agreement as of the day and year first above written. 
  

	 “Arclight”
  
 ARCLIGHT SYSTEMS LLC

		
	By:	 	 
	 	

	 	 	Mike Buettner, Chief Financial Officer

  

	 “NDCHealth”
  
 NDCHEALTH CORPORATION

		
	By:	 	 
	 	

	 	 	 Randolph L.M. Hutto, Executive Vice
 President and Chief Financial Officer

  

 28

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