Document:

EXHIBIT 4.2

 

Exhibit 4.2

REGISTRATION RIGHTS AGREEMENT

BY AND BETWEEN

WEBMD CORPORATION

AND

WEBMD HEALTH CORP.

DATED AS OF [_______________], 2005

 

 

Table of Contents

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 1.
	 	Definitions	 	 	3	 
	 
	SECTION 2.
	 	Demand Registration	 	 	6	 
	 
	SECTION 3.
	 	Piggy-Back Registration	 	 	7	 
	 
	SECTION 4.
	 	Blackout Periods	 	 	8	 
	 
	SECTION 5.
	 	Registration Procedures	 	 	8	 
	 
	SECTION 6.
	 	Expenses	 	 	12	 
	 
	SECTION 7.
	 	Rule 144 and Rule 144A Information	 	 	12	 
	 
	SECTION 8.
	 	Indemnification and Contribution	 	 	13	 
	 
	SECTION 9.
	 	Certain Additional Limitations on Registration Rights	 	 	15	 
	 
	SECTION 10.
	 	Limitations on Registration of Other Securities; Representation	 	 	16	 
	 
	SECTION 11.
	 	No Inconsistent Agreements	 	 	16	 
	 
	SECTION 12.
	 	Selection of Managing Underwriters	 	 	16	 
	 
	SECTION 13.
	 	Term of Registration Rights	 	 	17	 
	 
	SECTION 14.
	 	Miscellaneous	 	 	17	 

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REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT, dated as of [___], 2005 (this “Agreement”),
between WebMD Health Corp., a Delaware corporation (the “Company”), and WebMD Corporation,
a Delaware corporation (the “Parent”).

RECITALS

          WHEREAS, the Company is a wholly owned subsidiary of Parent;

          WHEARAS, the authorized capital stock of the Company comprises 500 million shares of Class A
common stock, par value $.01 per share (the “Class A Common Stock”), 150 million shares of
Class B common stock, par value $.01 per share (the “Class B Common Stock”), and 50 million
shares of preferred stock (the “Preferred Stock”);

          WHEREAS, pursuant to the transactions contemplated by the registration statement of the
Company on Form S-1 (File No. 333-124832) filed with the Securities and Exchange Commission on May
12, 2005, as the same may be amended from time to time (the “IPO Registration Statement”),
the Company intends to offer newly issued shares of Company’s Class A common stock in an initial
public offering (the “Offering”);

          WHEREAS, upon completion of the Offering and as of the date hereof, Parent is the owner of all
of the outstanding Class B Common Stock, which is convertible into Class A Common Stock on a
one-for-one basis, subject to adjustment as provided in the Amended and Restated Certificate of
Incorporation of the Company.

          NOW, THEREFORE, in consideration of the premises and the covenants hereinafter contained and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound hereby, the Company and Parent, for themselves,
their successors, and assigns, hereby agree as follows:

          SECTION 1. Definitions. Capitalized terms used in this Agreement without definition
shall have the following meanings (such meanings being equally applicable to both the singular and
plural form of the terms defined):

          “Affiliate” shall mean, with respect to any specified Person, any other Person that
directly, or indirectly through one or more intermediaries, Controls, is Controlled by, or is under
common Control with, such specified Person.

          “Agreement” shall have the meaning set forth in the preamble of this Agreement.

          “Assignment and Acceptance” shall have the meaning set forth in Section 14(d) of this
Agreement.

          “Blackout Period” shall have the meaning set forth in Section 4 of this Agreement.

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          “Business Day” shall mean any day that is not a Saturday, a Sunday or a day on which
commercial banks are required or permitted by law to be closed in the City of New York in the State
of New York.

          “Class A Common Stock” shall have the meaning set forth in the recitals of this
Agreement.

          “Class B Common Stock” shall have the meaning set forth in the recitals of this
Agreement.

          “Commission” shall mean the Securities and Exchange Commission, or any successor
thereto.

          “Company” shall have the meaning set forth in the preamble of this Agreement.

          “Control” (including the terms “Controlled by” and “under common Control
with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, by contract or otherwise, including, without limitation, the
ownership, directly or indirectly, of securities having the power to elect a majority of the board
of directors or similar body governing the affairs of such Person.

          “Demand for Registration” shall have the meaning set forth in Section 2(d) of this
Agreement.

          “Demand Registration” shall have the meaning set forth in Section 2(a) of this
Agreement.

          “Demand Registration Statement” shall have the meaning set forth in Section 2(a) of
this Agreement.

          “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and all
rules and regulations promulgated thereunder.

          “Holder” shall mean the Parent and its successors by operation of law or by way of
merger.

          “IPO” shall mean the initial public offering of the Class A Common Stock pursuant to
the Offering.

          “IPO Registration Statement” shall have the meaning set forth in the recitals of this
Agreement.

          “Indemnified Party” shall have the meaning set forth in Section 8(d) of this
Agreement.

          “Indemnifying Party” shall have the meaning set forth in Section 8(d) of this
Agreement.

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          “Maximum Number of Securities” shall have the meaning set forth in Section 2(b) of
this Agreement.

          “NASD” shall mean the National Association of Securities Dealers, Inc., or any
successor entity thereof.

          “Notice of Election” shall have the meaning set forth in Section 2(a) of this
Agreement.

          “Offering” shall have the meaning set forth in the recitals of this Agreement.

          “Parent” shall have the meaning set forth in the preamble of this Agreement.

          “Person” shall mean any individual, corporation, limited liability company,
partnership, joint venture, firm, trust, unincorporated organization, government or any agency or
political subdivision thereof or other entity.

          “Piggy-Back Registration” shall have the meaning set forth in Section 3(a) of this
Agreement.

          “Piggy-Back Registration Statement” shall have the meaning set forth in Section 3(a)
of this Agreement.

          “Preferred Stock” shall have the meaning set forth in the recitals of this Agreement.

          “Registrable Securities” shall mean shares of Class A Common Stock issuable or issued
upon conversion of shares of Class B Common Stock. For purposes of this Agreement, (i) Registrable
Securities shall cease to be Registrable Securities when a Registration Statement covering such
Registrable Securities has been declared effective under the Securities Act by the Commission and
such Registrable Securities have been disposed of pursuant to such effective Registration Statement
and (ii) the Registrable Securities of a Holder shall not be deemed to be Registrable Securities at
any time when the entire amount of such Registrable Securities proposed to be sold by the Holder in
a single sale constitute less than 1% of the then outstanding shares of Class A Common Stock or, in
the opinion of counsel satisfactory to the Company and the Holder, each in their reasonable
judgment, may be distributed to the public pursuant to Rule 144 (or any successor provision then in
effect) under the Securities Act in any three-month period or any such Registrable Securities have
been sold in a sale made pursuant to Rule 144 (or any successor provision then in effect) of the
Securities Act.

          “Registration Statement” shall mean the Demand Registration Statement, the Piggy-Back
Registration Statement and/or the Shelf Registration Statement, as the case may be.

          “Securities Act” shall mean the Securities Act of 1933, as amended, and all rules and
regulations promulgated thereunder.

          “Shelf Registration” shall have the meaning set forth in Section 2(c) of this
Agreement.

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          “Shelf Registration Statement” shall have the meaning set forth in Section 2(c) of
this Agreement.

          SECTION 2. Demand Registration.

          (a) Commencing from the 365th day after the effective date of the IPO Registration
Statement, at any time and from time to time, upon receipt of a written request (such request
referred to in this Agreement as, the “Notice of Election”) from the Holder requesting that
the Company effect a registration (a “Demand Registration”) under the Securities Act
covering all or part of the Registrable Securities held by the Holder which specifies the number of
Registrable Securities that the Holder elects to include in such Demand Registration and the
intended method or methods of disposition thereof, the Company shall use its reasonable best
efforts, but in any event no later than 30 days (excluding any days which occur during a permitted
Blackout Period under Section 4 below) after receipt of the Notice of Election from the Holder
pursuant to this Section 2(a), file with the Commission and use its commercially reasonable efforts
to cause to be declared effective, a registration statement (a “Demand Registration
Statement”) relating to all shares of Registrable Securities which the Company has been so
requested to register by the Holder for sale, to the extent required to permit the disposition (in
accordance with the intended method or methods thereof, as aforesaid) of the Registrable Securities
so registered; provided, however, that the Company shall not be required to file a
Demand Registration Statement and otherwise comply with the provisions of this Section 2(a) unless
the aggregate number of the Registrable Securities requested to be registered (i) constitute at
least 5% of the Registrable Securities issued and outstanding as of the date of this Agreement or
(ii) have an aggregate minimum market value of at least $[___] based on the closing trading
price of the Class A Common Stock on the date the written demand to file such Demand Registration
Statement is made.

          (b) If the Holder in a Demand Registration relating to a public offering so request that the
offering be underwritten with a managing underwriter selected in the manner set forth in Section 12
below and such managing underwriter of such Demand Registration advises the Company in writing
that, in its opinion, the number of securities to be included in such offering is greater than the
total number of securities which can be sold therein without having a material adverse effect on
the distribution of such securities or otherwise having a material adverse effect on the
marketability thereof (the “Maximum Number of Securities”), then the Company shall include
in such Demand Registration the Registrable Securities that the Holder has requested to be
registered thereunder only to the extent the number of such Registrable Securities does not exceed
the Maximum Number of Securities. If the amount of such Registrable Securities does not exceed the
Maximum Number of Securities, the Company may include in such Registration any other securities of
the Company and other securities held by other security holders of the Company, as the Company may
in its discretion determine or be obligated to allow, in an amount which, together with the
Registrable Securities included in such Demand Registration, shall not exceed the Maximum Number of
Securities.

          (c) Any Demand Registration Statement may be required by the Holder to be in an appropriate
form under the Securities Act (a “Shelf Registration Statement”) relating to any or all of the Registrable Securities in accordance with the methods and distribution set forth in
the Shelf Registration Statement and Rule 415 under the Securities Act (the “Shelf
Registration”).

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Any such demand to file a Shelf Registration Statement shall require the use
of two Demand for Registration requests.

          (d) The Holder shall be entitled to an aggregate of 5 registrations of Registrable Securities
pursuant to this Section 2 (each, a “Demand for Registration”); provided, that a
registration requested pursuant to this Section 2 shall not be deemed to have been effected for
purposes of this Section 2(d) unless (i) a Registration Statement relating thereto has been
declared effective by the Commission, (ii) it has remained effective for the period set forth in
Section 5(a), (iii) the Company shall have complied with the provisions of Sections 2(a), 2(b) and
2(c), without giving effect to the proviso in Section 2(a), and (iv) the offering of Registrable
Securities pursuant to such Registration Statement is not subject to any stop order, injunction or
other order or requirement of the Commission (other than any such stop order, injunction, or other
requirement of the Commission prompted by act or omission of the Holder of Registrable Securities).

          (e) Notwithstanding anything to the contrary contained herein, the Company shall not be
required to prepare and file more than two Demand Registration Statements in any twelve-month
period.

          SECTION 3. Piggy-Back Registration.

          (a) If, at any time after the IPO, the Company proposes to file on its behalf and/or on behalf
of any holder of its securities (other than a holder of Registrable Securities) a registration
statement under the Securities Act on any form (other than a registration statement on Form S-4 or
S-8 or any successor form for securities to be offered in a transaction of the type referred to in
Rule 145 under the Securities Act or to employees of the Company pursuant to any employee benefit
plan, respectively) for the registration of any of its equity interests (a “Piggy-Back
Registration”), it will give written notice to the Holder at least 20 days before the initial
filing with the Commission of such piggy-back registration statement (a “Piggy-Back
Registration Statement”), which notice shall set forth the intended method of disposition of
the securities proposed to be registered by the Company. The notice shall offer to include in such
filing the aggregate number of shares of Registrable Securities as the Holder may request, subject
to the limits set forth in Section 3(c) below.

          (b) If the Holder desires to have Registrable Securities registered under this Section 3, it
shall advise the Company in writing within 10 days after the date of receipt of such offer from the
Company, setting forth the amount of such Registrable Securities for which registration is
requested. The Company shall thereupon include in such filing the number or amount of Registrable
Securities for which registration is so requested, subject to paragraph (c) below, and shall use
its commercially reasonable efforts to effect registration of such Registrable Securities under the
Securities Act.

          (c) If the Piggy-Back Registration relates to an underwritten public offering and the managing
underwriter of such proposed public offering advises in writing that, in its opinion, the amount of
Registrable Securities requested to be included in the Piggy-Back Registration in addition to the
securities being registered by the Company would be greater than the Maximum

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Number of Securities (having the same meaning as defined in Section 2 but replacing the term “Demand
Registration” with “Piggy-Back Registration”), then:

     (i) in the event the Company initiated the Piggy-Back Registration, the Company shall
include in such Piggy-Back Registration (A) the securities the Company proposes to register
and (B) the securities of all other selling security holders, including the Holder, to be
included in such Piggy-Back Registration in an amount which together with the securities the
Company proposes to register, shall not exceed the Maximum Number of Securities, such amount
to be allocated among such selling security holders on a pro rata basis (based on the number
of securities of the Company held by each such selling security holder); and

     (ii) in the event any holder of Securities of the Company initiated the Piggy-Back
Registration, the Company shall include in such Piggy-Back Registration (A) the securities
such initiating security holder proposes to register, (B) the securities of any other
selling security holders (including the Holder), in an amount which together with the
securities the initiating security holder proposes to register, shall not exceed the Maximum
Number of Securities, such amount to be allocated among such other selling security holders
on a pro rata basis (based on the number of securities of the Company held by each such
selling security holder) and (C) any securities the Company proposes to register, in an
amount which together with the securities the initiating security holder and the other
selling security holders propose to register, shall not exceed the Maximum Number of
Securities.

          SECTION 4. Blackout Periods. The Company shall have the right to delay the filing or
effectiveness of a Registration Statement required pursuant to Sections 2 or 3 hereof during no
more than two (2) periods aggregating to not more than 90 days in any twelve-month period (a
“Blackout Period”) in the event that (i) the Company would, in accordance with the advice
of its counsel, be required to disclose in the prospectus information not otherwise then required
by law to be publicly disclosed and (ii) in the judgment of the Company’s Board of Directors, there
is a reasonable likelihood that such disclosure, or any other action to be taken in connection with
the prospectus, would materially and adversely affect or interfere with any financing, acquisition,
merger, disposition of assets (not in the ordinary course of business), corporate reorganization or
other similar transaction in which the Company is engaged or in respect of which the Company
proposes to engage in discussions or negotiations with respect to, or has proposed or taken a
substantial step to commence, or there is an event or state of facts relating to the Company which
is material to the Company the disclosure of which would, in the reasonable judgment of the Company
be adverse to its interests; provided, however, that the Company shall delay during
such Blackout Period the filing or effectiveness of any Registration Statement required pursuant to
the registration rights of the holders of any securities of the Company. The Company shall promptly give the Holder written notice of such determination containing a general statement
of the reasons for such postponement and an approximation of the anticipated delay.

          SECTION 5. Registration Procedures. If the Company is required by the provisions of
Section 2 or 3 to use its commercially reasonable efforts to effect the registration of any of its
securities under the Securities Act, the Company will, as expeditiously as possible:

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     (a) prepare and file with the Commission a Registration Statement with respect to such
securities and use its commercially reasonable efforts to cause such Registration Statement
promptly to become and remain effective for a period of time required for the disposition of
such Securities by the holders thereof but not to exceed 30 days (except with respect to a
Shelf Registration Statement, which shall remain effective for a period not to exceed 180
days); provided, however, that before filing such Registration Statement or
any amendments thereto (for purposes of this subsection, amendments shall not be deemed to
include any filing that the Company is required to make pursuant to the Exchange Act), the
Company shall furnish the Holder with copies of all documents proposed to be filed, which
documents will be subject to the review of such counsel. The Company shall not be deemed to
have used its commercially reasonable efforts to keep a Registration Statement effective
during the applicable period if it voluntarily takes any action that would result in the
Holder of such Registrable Securities not being able to sell such Registrable Securities
during that period, unless such action is required under applicable law;

     (b) prepare and file with the Commission such amendments and supplements to such
Registration Statement and the prospectus used in connection therewith as may be necessary
to keep such Registration Statement effective and to comply with the provisions of the
Securities Act with respect to the sale or other disposition of all securities covered by
such Registration Statement until the earlier of such time as all of such securities have
been disposed of in a public offering or the expiration of 30 days (except with respect to
the Shelf Registration Statement, for which such period shall be 90 days);

     (c) furnish to such selling security holders such number of conformed copies of the
applicable Registration Statement and each such amendment and supplement thereto (including
in each case all exhibits), and of a summary prospectus or other prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, and such
other documents, as such selling security holders may reasonably request;

     (d) use its commercially reasonable efforts to register or qualify the securities
covered by such Registration Statement under such other securities or blue sky laws of such
jurisdictions within the United States as the Holder shall reasonably request, to keep such
registration or qualification in effect for so long as such Registration Statement remains
in effect, and to take any other action which may be reasonably necessary to enable such
seller to consummate the disposition in such jurisdictions of the securities owned by the
Holder (provided, however, that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business, subject
itself to taxation in or to file a general consent to service of process in any jurisdiction
wherein it would not but for the requirements of this paragraph (d) be obligated to do so;
and provided, further, that the Company shall not be required to qualify
such Registrable Securities in any jurisdiction in which the securities regulatory authority
requires that the Holder submit any shares of its Registrable Securities to the terms,
provisions and restrictions of any escrow, lockup or similar agreement(s) for consent to
sell Registrable Securities in such jurisdiction unless the Holder agrees to do so), and do
such other reasonable acts and things as may be required of it to enable the Holder to
consummate

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the disposition in such jurisdiction of the securities covered by such
Registration Statement;

     (e) furnish, at the request of the Holder requesting registration of Registrable
Securities pursuant to Section 2 or 3, if the method of distribution is by means of an
underwriting, on the date that the shares of Registrable Securities are delivered to the
underwriters for sale pursuant to such registration, or if such Registrable Securities are
not being sold through underwriters, on the date that the registration statement with
respect to such shares of Registrable Securities becomes effective, (i) a signed opinion,
dated such date, of the independent legal counsel representing the Company for the purpose
of such registration, addressed to the underwriters, if any, and if such Registrable
Securities are not being sold through underwriters, then to the Holder, as to such matters
as such underwriters or the Holder, as the case may be, may reasonably request and as would
be customary in such a transaction; and (ii) letters dated such date and the date the
offering is priced from the independent registered public accounting firm of the Company,
addressed to the underwriters, if any, and if such Registrable Securities are not being sold
through underwriters, then to the Holder making such request and, if such accountants refuse
to deliver such letters to the Holder, then to the Company (A) stating that they are
independent certified public accountants within the meaning of the Securities Act and that,
in the opinion of such accountants, the financial statements and other financial data of the
Company included in the Registration Statement or the prospectus, or any amendment or
supplement thereto, comply as to form in all material respects with the applicable
accounting requirements of the Securities Act and (B) covering such other financial matters
(including information as to the period ending not more than five Business Days prior to the
date of such letters) with respect to the registration in respect of which such letter is
being given as such underwriters or the Holder, as the case may be, may reasonably request
and as would be customary in such a transaction;

     (f) enter into customary agreements (including if the method of distribution is by
means of an underwriting, an underwriting agreement in customary form) and take such other
actions as are reasonably required in order to expedite or facilitate the disposition of
such Registrable Securities;

     (g) otherwise use its commercially reasonable efforts to comply with all applicable
rules and regulations of the Commission, and make earnings statements satisfying the
provisions of Section 11(a) of the Securities Act generally available to the Holder no later
than 45 days after the end of any twelve-month period (or 90 days, if such period is a fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Securities are sold to underwriters in an underwritten public offering, or (ii)
if not sold to underwriters in such an offering, beginning with the first month of the
Company’s first fiscal quarter commencing after the effective date of the Registration
Statement, which statements shall cover said twelve-month periods;

     (h) use its commercially reasonable efforts to cause all such Registrable Securities to
be listed on each securities exchange or quotation system on which the Class A Common Stock
is listed or traded;

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     (i) give written notice to the Holder:

     (i) when such Registration Statement or any amendment thereto has been filed
with the Commission and when such Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to such
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of such Registration Statement or the initiation of any proceedings
for that purpose;

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of any security of the Company
for sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and

     (v) of the happening of any event that requires the Company to make changes in
such Registration Statement or the prospectus in order to make the statements
therein not misleading (which notice shall be accompanied by an instruction to
suspend the use of the prospectus until the requisite changes have been made);

     (j) use its commercially reasonable efforts to prevent the issuance or obtain the
withdrawal of any order suspending the effectiveness of such Registration Statement at the
earliest possible time;

     (k) furnish to the Holder, without charge, at least one copy of such Registration
Statement and any post-effective amendment thereto, including financial statements and
schedules, and, if the Holder so requests in writing, all exhibits (including those, if any,
incorporated by reference);

     (l) upon the occurrence of any event contemplated by Section 5(i)(v) above, promptly
prepare a post-effective amendment to such Registration Statement or a supplement to the
related prospectus or file any other required document so that, as thereafter delivered to
the Holder, the prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. If the
Company notifies the Holder in accordance with Section 5(i)(v) above to suspend the use of
the prospectus until the requisite changes to the prospectus have been made, then the Holder
shall suspend use of such prospectus and use its reasonable efforts to return to the Company
all copies of such prospectus (at the Company’s expense) other than permanent file copies
then in the Holder’s possession, and the period of effectiveness of such Registration
Statement provided for above shall be extended by the number of days from and including the
date of the giving of such notice to the date the Holder shall have received such amended or
supplemented prospectus pursuant to this Section 5(l);

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     (m) make reasonably available for inspection by the Holder, any underwriter
participating in any disposition pursuant to such Registration Statement and any attorney,
accountant or other agent retained by such representative or any such underwriter all
relevant financial and other records, pertinent corporate documents and properties of the
Company and cause the Company’s officers, directors and employees to supply all relevant
information reasonably requested by such representative or any such underwriter, attorney,
accountant or agent in connection with the registration; and

     (n) use reasonable efforts to procure the cooperation of the Company’s transfer agent
in settling any offering or sale of Registrable Securities, including with respect to the
transfer of physical stock certificates into book-entry form in accordance with any
procedures reasonably requested by the Holder or the underwriters.

          It shall be a condition precedent to the obligation of the Company to take any action pursuant
to this Agreement in respect of the Securities which are to be registered at the request of the
Holder that the Holder shall furnish to the Company such information regarding the Securities held
by the Holder and the intended method of disposition thereof as the Company shall reasonably
request and as shall be required in connection with the action taken by the Company.

          SECTION 6. Expenses. All expenses incurred in connection with each registration
pursuant to Sections 2 and 3 of this Agreement, excluding underwriters’ discounts and commissions,
but including without limitation all registration, filing and qualification fees, word processing,
duplicating, printers’ and accounting fees (including the expenses of any special audits or
“comfort” letters required by or incident to such performance and compliance), fees of the NASD or
listing fees, messenger and delivery expenses, all fees and expenses of complying with state
securities or blue sky laws, fees and disbursements of counsel for the Company, fees and expenses
of the Company and the underwriters relating to “road show” investor presentations, including the
cost of any aircraft chartered for such purpose, and the fees and disbursements of one counsel for
the Holder, shall be paid by the Company, except that:

     (a) all such expenses in connection with any amendment or supplement to a Registration
Statement or prospectus filed more than 30 (or in the case of a Shelf Registration
Statement, 90 days) days after the effective date of such Registration Statement because the Holder has not effected the disposition of the Securities
requested to be registered shall be paid by the Holder;

     (b) the Holder shall bear and pay the (i) underwriting commissions and discounts
applicable to securities offered for their account in connection with any registrations,
filings and qualifications made pursuant to this Agreement and (ii) any fees and expenses
incurred in respect of counsel or other advisors to the Holder.

          SECTION 7. Rule 144 and Rule 144A Information. (a) With a view to making available
the benefits of certain rules and regulations of the Commission which may at any time permit the
sale of the Registrable Securities to the public without registration, at all times after 90 days
after any Registration Statement covering securities of the Company shall have become effective,
the Company agrees to:

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     (i) make and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act;

     (ii) use its commercially reasonable efforts to file with the Commission in a timely
manner all reports and other documents required of the Company under the Securities Act and
the Exchange Act; and

     (iii) furnish to the Holder of Registrable Securities forthwith upon request a written
statement by the Company as to its compliance with the reporting requirements of such Rule
144 and of the Securities Act and the Exchange Act, a copy of the most recent annual or
quarterly report of the Company, and such other reports and documents so filed by the
Company as the Holder may reasonably request in availing itself of any rule or regulation of
the Commission allowing the Holder to sell any Registrable Securities without registration.

          (b) At all times during which the Company is neither subject to the reporting requirements of
Section 13 or 15(d) of the Exchange Act, nor exempt from reporting pursuant to Rule 12g3-2(b) under
the Exchange Act, it will provide, upon the written request of the Holder of Registrable Securities
in written form (as promptly as practicable and in any event within 15 Business Days), to any
prospective buyer of such stock designated by the Holder, all information required by Rule
144A(d)(4)(i) of the General Regulations promulgated by the Commission under the Securities Act.

          SECTION 8. Indemnification and Contribution.

          (a) the Company shall indemnify and hold harmless the Holder, the Holder’s directors and
officers, if any, each person who participates in the offering of such Registrable Securities,
including underwriters (as defined in the Securities Act), and each person, if any, who controls
the Holder or participating person within the meaning of the Securities Act, against any losses,
claims, damages or liabilities, joint or several, to which they may become subject under the
Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or proceedings in respect thereof) arise out of or are based on any untrue or alleged untrue
statement of any material fact contained in such Registration Statement on the effective date
thereof (including any prospectus filed under Rule 424 under the Securities Act or any amendments
or supplements thereto) or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, and shall reimburse each the Holder, the Holder’s directors and officers, such
participating person or controlling person for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this Section 8
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Company (which consent shall not be
unreasonably withheld); provided, further, that the Company shall not be liable to
the Holder, the Holder’s directors and officers, participating person or controlling person in any
such case for any such loss, claim, damage, liability or action to the extent that it arises out of
or is based upon an untrue statement or alleged untrue statement or omission or alleged omission
made in connection with such Registration Statement, preliminary prospectus, final prospectus or

13

 

amendments or supplements thereto, in reliance upon and in conformity with written information
furnished expressly for use in connection with such registration by any the Holder, the Holder’s
directors and officers, participating person or controlling person. Such indemnity shall remain in
full force and effect regardless of any investigation made by or on behalf of the Holder, the
Holder’s directors and officers, participating person or controlling person, and shall survive the
transfer of such securities by the Holder.

          (b) The Holder requesting or joining in a registration severally and not jointly shall
indemnify and hold harmless the Company, each of its directors and officers, each person, if any,
who controls the Company within the meaning of the Securities Act, and each agent and any
underwriter for the Company (within the meaning of the Securities Act) against any losses, claims,
damages or liabilities, joint or several, to which the Company or any such director, officer,
controlling person, agent or underwriter may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or proceedings in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in such registration statement on the effective date thereof (including any prospectus
filed under Rule 424 under the Securities Act or any amendments or supplements thereto) or arise
out of or are based upon the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, in each case to
the extent, but only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission was made in such registration statement, preliminary or final
prospectus, or amendments or supplements thereto, in reliance upon and in conformity with written
information furnished by or on behalf of the Holder expressly for use in connection with such
registration; and the Holder shall reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, agent or underwriter in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this Section 8(b) shall not apply to
amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement
is effected without the consent of the Holder (which consent shall not be unreasonably withheld),
and provided, further, that the liability of the Holder hereunder shall be limited
to the proportion of any such loss, claim, damage, liability or expense which is equal to the proportion that the net proceeds from the sale of the shares sold by the
Holder under such registration statement bears to the total net proceeds from the sale of all
securities sold thereunder, but not in any event to exceed the net proceeds received by the Holder
from the sale of Registrable Securities covered by such registration statement.

          (c) If the indemnification provided for in this Section 8 from the indemnifying party is
unavailable to an indemnified party hereunder in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then the indemnifying party, in lieu of indemnifying
such indemnified party, shall contribute to the amount paid or payable by such indemnified party as
a result of such losses, claims, damages, liabilities or expenses in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and indemnified parties in
connection with the actions which resulted in such losses, claims, damages, liabilities or
expenses, as well as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified parties shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement of a material fact
or omission or alleged omission to state a material fact, has been made by, or relates

14

 

to information supplied by, such indemnifying party or indemnified parties, and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such action. The
amount paid or payable by a party as a result of the losses, claims, damages, liabilities and
expenses referred to above shall be deemed to include any legal or other fees or expenses
reasonably incurred by such party in connection with any investigation or proceeding. If the
allocation provided in this paragraph (c) is not permitted by applicable law, the parties shall
contribute based upon the relevant benefits received by the Company from the initial offering of
the Securities on the one hand and the net proceeds received by the Holder from the sale of
Securities on the other.

          The parties hereto agree that it would not be just and equitable if contribution pursuant to
this Section 8(c) were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in the immediately preceding
paragraph. No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the Securities Act) shall be entitled to contribution from any Person who was not guilty of such
fraudulent misrepresentation.

          (d) Any Person entitled to indemnification hereunder (the “Indemnified Party”) agrees
to give prompt written notice to the indemnifying party (the “Indemnifying Party”) after
the receipt by the Indemnified Party of any written notice of the commencement of any action, suit,
proceeding or investigation or threat thereof made in writing for which the Indemnified Party
intends to claim indemnification or contribution pursuant to this Agreement; provided, that
the failure so to notify the Indemnified Party shall not relieve the Indemnifying Party of any
liability that it may have to the Indemnifying Party hereunder unless such failure is materially
prejudicial to the Indemnifying Party. If notice of commencement of any such action is given to
the Indemnifying Party as above provided, the Indemnifying Party shall be entitled to participate
in and, to the extent it may wish, to assume the defense of such action at its own expense, with
counsel chosen by it and reasonably satisfactory to such Indemnified Party. The Indemnified Party
shall have the right to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be paid by the Indemnified Party unless
(i) the Indemnifying Party agrees to pay the same, (ii) the Indemnifying Party fails to assume the defense of such action, or (iii) the named parties to any such action (including
any impleaded parties) have been advised by such counsel that either (A) representation of such
Indemnified Party and the Indemnifying Party by the same counsel would be inappropriate under
applicable standards of professional conduct or (B) there are one or more legal defenses available
to it which are substantially different from or additional to those available to the Indemnifying
Party. No Indemnifying Party shall be liable for any settlement entered into without its written
consent, which consent shall not be unreasonably withheld.

          (e) The agreements contained in this Section 8 shall survive the transfer of the Registered
Securities by the Holder and sale of all the Registrable Securities pursuant to any registration
statement and shall remain in full force and effect, regardless of any investigation made by or on
behalf of the Holder or such director, officer or participating or controlling Person.

          SECTION 9. Certain Additional Limitations on Registration Rights. Notwithstanding the
other provisions of this Agreement, the Company shall not be obligated to

15

 

register the Registrable Securities of the Holder (i) if the Holder or any underwriter of such Registrable Securities shall
fail to furnish to the Company necessary information in respect of the distribution of such
Registrable Securities, or (ii) if such registration involves an underwritten offering, such
Registrable Securities are not included in such underwritten offering on the same terms and
conditions as shall be applicable to the other securities being sold through underwriters in the
registration or the Holder fails to enter into an underwriting agreement in customary form with the
underwriter or underwriters selected for such underwritten offering. In addition, the Holder
agrees not to effect any public sale or distribution of any Registrable Securities or of any
securities convertible into or exchangeable or exercisable for such Registrable Securities,
including a sale pursuant to Rule 144 under the Securities Act and to enter into a customary
lock-up agreement with the managing underwriter for an offering, during the 90-day period beginning
on the effective date of any Demand Registration Statement (initiated by the Holder) or Piggy-Back
Registration Statement or other underwritten offering (initiated by the Company) (except as part of
such registration), and the Company agrees to use its commercially reasonable efforts to cause its
directors and executive officers to enter into a lock-up agreement of the same term, in each case
if and to the extent requested by the managing underwriter for such offering and if the Company and
its directors, executive officers and other significant stockholders enter into similar agreements.

          SECTION 10. Limitations on Registration of Other Securities; Representation. From and
after the date of this Agreement, the Company shall not, without the prior written consent of the
Holder, enter into any agreement with any holder or prospective holder of any securities of the
Company giving the holder or prospective holder any registration rights the terms of which are as
or more favorable taken as a whole than the registration rights granted to the Holder hereunder
unless the Company shall also give such rights to the Holder hereunder.

          SECTION 11. No Inconsistent Agreements. The Company will not hereafter enter into any agreement with respect to its securities,
which is inconsistent in any material respects with the rights granted to the Holder in this
Agreement.

          SECTION 12. Selection of Managing Underwriters. In the event the Holder shall have
requested an underwritten offering, the underwriter or underwriters shall be selected by the
Holder, subject to approval by the Company, which approval shall not be unreasonably withheld or
delayed, provided, (i) that all of the representations and warranties by, and the other
agreements on the part of, the Company to and for the benefit of such underwriters shall also be
made to and for the benefit of the Holder, (ii) that any or all of the conditions precedent to the
obligations of such underwriters under such underwriting agreement shall be conditions precedent to
the obligations of the Holder, and (iii) that the Holder shall not be required to make any
representations or warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements regarding the Holder, the Registrable Securities of the
Holder, compliance with law and the Holder’s intended method of distribution and any other
representations required by law. Subject to the foregoing, if the Holder proposes to distribute
Registrable Securities through such underwritten offering, it shall enter into an underwriting
agreement in customary form with the underwriter or underwriters. Subject to the provisions of
Section 7(b), if the Holder of Registrable Securities disapproves of the terms of the underwriting,
the Holder may elect to withdraw all its Registrable Securities by written notice to the Company

16

 

and the managing underwriter. The securities so withdrawn shall also be withdrawn from
registration.

          SECTION 13. Term of Registration Rights. The rights of the Holder with respect to the
registration rights granted pursuant to this Agreement shall remain in effect, subject to the terms
hereof, so long as there are Registrable Securities or securities which are convertible or
exchangeable for Registrable Securities issued and outstanding.

          SECTION 14. Miscellaneous.

          (a) Specific Performance. The parties hereto agree that irreparable damage would
occur in the event any provision of the Agreement was not performed in accordance with the terms
hereof and that the parties hereto shall be entitled to specific performance of the terms hereof,
in addition to any other remedy at law or in equity.

          (b) Amendments and Waivers. (i) Any provision of this Agreement may be amended or
waived if, and only if, such amendment or waiver is in writing and signed, in the case of an
amendment, by the Company and the Holder or, in the case of a waiver, by the party or parties
against whom the waiver is to be effective.

          (ii) No failure or delay by any party in exercising any right, power or privilege hereunder
(other than a failure or delay beyond a period of time specified herein) shall operate as
a waiver thereof and no single or partial exercise thereof shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.

          (c) Notice Generally. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed to have been duly given upon
receipt) by delivery in person, by courier service, by fax or by registered or certified mail
(postage prepaid, return receipt requested) to the respective parties at the following addresses
(or at such other address for a party as shall be specified by notice given in accordance with this
Section 14(c):

          (i)      If to the Holder, to:

WebMD Corporation

669 River Drive, Center 2

Elmwood Park

New Jersey 07407-3400

Attention: Charles A. Mele

          (ii)     If to the Company, to

WebMD Health Corp.

111 Eighth Avenue

New York, New York 10011

Attention: Douglas W. Wamsley

or at such other address as may be substituted by notice given as herein provided.

17

 

          (d) Successors and Assigns; Third Party Beneficiaries. Holder may, in connection with
a sale or other transfer of Registrable Securities, assign to one or more persons or entities all
or a portion of rights and obligations under this Agreement with respect to those Registrable
Securities and the Company shall cooperate with Holder to provide the benefits of this Agreement to
such assignee; provided, however, that no such assignee shall be or be deemed a party to this
Agreement or a third party beneficiary of any of its terms or have any right to enforce any of its
terms, unless the Company, Holder and the assignee enter into a written agreement on terms and
conditions reasonably satisfactory to each of the Company and Holder (an “Assignment and
Acceptance”) that explicitly makes such assignee a party hereto (consent to entering into an
Assignment and Acceptance not to be unreasonably withheld by the Company). This Agreement shall
inure to the benefit of and be binding upon the parties hereto and their successors and any Person
that becomes a party by entering into an Assignment and Acceptance with the parties hereto. Except
as provided in Section 8, no Person other than the parties hereto and their successors is intended
to be a beneficiary of this Agreement.

          (e) Headings. The headings and subheadings in this Agreement are included for
convenience and identification only and are in no way intended to describe, interpret, define or
limit the scope, extent or intent of this Agreement or any provision hereof.

          (f) Governing Law; Dispute Resolution.

               (i) This Agreement shall be governed by and construed in accordance with the laws of the State
of New York.

               (ii) In an effort to resolve informally and amicably any claim or controversy arising out of
or related to this Agreement or the breach, termination, enforcement, interpretation or validity
thereof, Holder and the Company shall notify the other of any differences or dispute hereunder that
requires resolution. Holder and the Company shall each designate an executive officer to
investigate, discuss and seek to settle the matter between them. If settlement cannot be reached
through their efforts within 30 days, or such longer time period as they shall agree upon, either
party may initiate final and binding arbitration, in accordance with Paragraph (iii) of this
Section 14(f) to resolve such matter, which the parties agree are the sole and exclusive procedures
for any such dispute. All offers, promises, conduct and statements, whether oral or written, made
in the course of the settlement discussions contemplated by this Paragraph (ii) by any of the
parties, their agents, employees, experts and attorneys are confidential, privileged and
inadmissible for any purpose, including impeachment, in any arbitration or other proceeding
involving the parties, provided that evidence that is otherwise admissible or discoverable shall
not be rendered inadmissible or non-discoverable as a result of its use in the mediation.

               (iii) Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the determination
of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in
New York, New York before one arbitrator. The arbitration shall be administered by JAMS pursuant
to its Comprehensive Arbitration Rules and Procedures. Judgment on the award may be entered in any
court having jurisdiction. This clause shall not preclude parties from seeking provisional
remedies in aid of arbitration from a court of

18

 

appropriate jurisdiction. The parties shall share
the costs of the arbitrator and other costs of the arbitration equally and each party shall be
responsible for its own costs and expenses relating to the arbitration, including for fees and
expenses of its attorneys and other professionals that it retains. The arbitrator will have no
authority to award any special, punitive, exemplary, consequential, incidental or indirect losses
or damages and no authority to award a party any amounts for the costs and expenses of the
arbitration or for fees and expenses of attorneys and other professionals retained by a party.

          (g) Severability. If any term or other provision of this Agreement is held to be
invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions is not affected in any manner
materially adverse to any party. Upon a determination that any term or other provision is invalid,
illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as possible in a
mutually acceptable manner in order that the transactions contemplated hereby be consummated as
originally contemplated to the fullest extent possible.

          (h) Entire Agreement. This Agreement constitutes the entire agreement among the
parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and
understandings pertaining thereto.

          (i) Cumulative Remedies. The rights and remedies provided by this Agreement are
cumulative and the use of any one right or remedy by any party shall not preclude or waive its
right to use any or all other remedies. Said rights and remedies are given in addition to any
other rights the parties may have by law, statute, ordinance or otherwise.

          (j) Construction. Each party hereto acknowledges and agrees it has had the
opportunity to draft, review and edit the language of this Agreement and that no presumption for or
against any party arising out of drafting all or any part of this Agreement will be applied in any
dispute relating to, in connection with or involving this Agreement. Accordingly, the parties
hereto hereby waive the benefit of any rule of law or any legal decision that would require, in
cases of uncertainty, that the language of a contract should be interpreted most strongly against
the party who drafted such language.

19

 

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

	 	 	 	 	 
	 	 	WEBMD HEALTH CORP.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:

Title:
	 
	 	 	 	 
	 	 	WEBMD CORPORATION
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	By:	 	Name:

Title:

20EXHIBIT 10.27

 

Exhibit 10.27

FORM OF WEBMD HEALTH CORP.

2005 LONG-TERM INCENTIVE PLAN*

ARTICLE 1

PURPOSE

     1.1 GENERAL. The purpose of the WebMD Health Corp. 2005 Long-Term Incentive Plan (the
“Plan”) is to promote the success, and enhance the value, of WebMD Health Corp., a Delaware
Corporation (the “Corporation”), by linking the personal interests of its employees, officers,
directors and consultants to those of Corporation shareholders and by providing such persons with
an incentive for outstanding performance. The Plan is further intended to provide flexibility to
the Corporation in its ability to motivate, attract and retain the services of employees, officers,
directors and consultants upon whose judgment, interest and special effort the successful conduct
of the Corporation’s operation is largely dependent. Accordingly, the Plan permits the grant of
incentive awards from time to time to selected employees and officers, directors and consultants.

ARTICLE 2

EFFECTIVE DATE

     2.1 EFFECTIVE DATE. The Plan shall be effective as of the date upon which it shall be
approved by the Board and the shareholders of the Corporation (the “Effective Date”). In the
discretion of the Committee, Awards may be made to Covered Employees which are intended to
constitute qualified performance-based compensation under Section 162(m) of the Code.

ARTICLE 3

DEFINITIONS

     3.1 DEFINITIONS. When a word or phrase appears in this Plan with the initial letter
capitalized, and the word or phrase does not commence a sentence and is not otherwise defined in
the Plan, the word or phrase shall generally be given the meaning ascribed to it in this Section.
The following words and phrases shall have the following meanings:

               (a) “1933 Act” means the Securities Act of 1933, as amended from time to time.

               (b) “1934 Act” means the Securities Exchange Act of 1934, as amended from time to time.

               (c) “Affiliate” means any Parent or Subsidiary and any person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under
common control with, the Corporation.

 

			
	*	 	Subject to completion.

 

 

               (d) “Award” means any Option, Stock Appreciation Right, Restricted Stock Award,
Performance Share Award, Dividend Equivalent Award or Other Stock-Based Award, or any other
right or interest relating to Stock or cash, granted to a Participant under the Plan.

               (e) “Award Agreement” means any written agreement, contract or other instrument or
document evidencing an Award.

               (f) “Board” means the Board of Directors of the Corporation.

               (g) “Cause” as a reason for a Participant’s termination of employment or service shall
have the meaning assigned such term in the employment agreement, if any, between such
Participant and the Corporation or an affiliated company, provided, however,
that if there is no such employment agreement in which such term is defined, “Cause” shall
mean any of the following acts by the Participant, as determined by the Board: gross neglect
of duty, prolonged absence from duty without the consent of the Corporation, intentionally
engaging in any activity that is in conflict with or adverse to the business or other
interests of the Corporation, or willful misconduct, misfeasance or malfeasance of duty
which is reasonably determined to be detrimental to the Corporation.

               (h) “Change of Control” means and includes the occurrence of any one of the following
events:

               (i) individuals who, at the effective date of the Initial Public Offering,
constitute the Board (the “Incumbent Directors”) cease for any reason to constitute
at least a majority of the Board, provided that any person becoming a
director after the Effective Date and whose election or nomination for election was
approved by a vote of at least a majority of the Incumbent Directors then on the
Board (either by a specific vote or by approval of the proxy statement of the
Corporation in which such person is named as a nominee for director, without written
objection to such nomination) shall be an Incumbent Director; provided,
however, that no individual initially elected or nominated as a director of
the Corporation as a result of an actual or threatened election contest (as
described in Rule 14a-11 under the 1934 Act (“Election Contest”)) or other actual or
threatened solicitation of proxies or consents by or on behalf of any “person” (as
such term is defined in Section 3(a)(9) of the 1934 Act and as used in Section
13(d)(3) and 14(d)(2) of the 1934 Act) other than the Board (“Proxy Contest”),
including by reason of any agreement intended to avoid or settle any Election
Contest or Proxy Contest, shall be deemed an Incumbent Director;

               (ii) any person becomes a “beneficial owner” (as defined in Rule 13d-3 under
the 1934 Act), directly or indirectly, of securities of the Corporation representing
50% or more of the combined voting power of the Corporation’s then outstanding
securities eligible to vote for the election of the Board (the “Corporation Voting
Securities”); provided, however, that the event described in this
paragraph (ii) shall not be deemed to be a Change of Control of the Corporation by
virtue of any of the following acquisitions: (A) any acquisition by

2

 

a person who is on the Effective Date the beneficial owner of 50% or more of
the outstanding Corporation Voting Securities, (B) an acquisition by the Corporation
which reduces the number of Corporation Voting Securities outstanding and thereby
results in any person acquiring beneficial ownership of more than 50% of the
outstanding Corporation Voting Securities, provided that if after such
acquisition by the Corporation such person becomes the beneficial owner of
additional Corporation Voting Securities that increase the percentage of outstanding
Corporation Voting Securities beneficially owned by such person, a Change of Control
of the Corporation shall then occur, (C) an acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Corporation or any Parent or
Subsidiary, (D) an acquisition by an underwriter temporarily holding securities
pursuant to an offering of such securities or (E) an acquisition pursuant to a
Non-Qualifying Transaction (as defined in paragraph (iii)); or

               (iii) the consummation of a reorganization, merger, consolidation, statutory
share exchange or similar form of corporate transaction involving the Corporation
that requires the approval of the Corporation’s stockholders, whether for such
transaction or the issuance of securities in the transaction (a “Reorganization”),
or the sale or other disposition of all or substantially all of the Corporation’s
assets to an entity that is not an affiliate of the Corporation (a “Sale”), unless
immediately following such Reorganization or Sale: (A) more than 50% of the total
voting power of (x) the corporation resulting from such Reorganization or the
corporation which has acquired all or substantially all of the assets of the
Corporation (in either case, the “Surviving Corporation”) or (y) if applicable, the
ultimate parent corporation that directly or indirectly has beneficial ownership of
100% of the voting securities eligible to elect directors of the Surviving
Corporation (the “Parent Corporation”), is represented by the Corporation Voting
Securities that were outstanding immediately prior to such Reorganization or Sale
(or, if applicable, is represented by shares into which such Corporation Voting
Securities were converted pursuant to such Reorganization or Sale), and such voting
power among the holders thereof is in substantially the same proportion as the
voting power of such Corporation Voting Securities among the holders thereof
immediately prior to the Reorganization or Sale, (B) no person (other than (x) the
Corporation, (y) any employee benefit plan (or related trust) sponsored or
maintained by the Surviving Corporation or the Parent Corporation or (z) a person
who immediately prior to the Reorganization or Sale was the beneficial owner of 25%
or more of the outstanding Corporation Voting Securities) is the beneficial owner,
directly or indirectly, of 25% or more of the total voting power of the outstanding
voting securities eligible to elect directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) and (C) at least a
majority of the members of the board of directors of the Parent Corporation (or, if
there is no Parent Corporation, the Surviving Corporation) following the
consummation of the Reorganization or Sale were Incumbent Directors at the time of
the Board’s approval of the execution of the initial agreement providing for such
Reorganization or Sale (any Reorganization

3

 

or Sale which satisfies all of the criteria specified in (A), (B) and (C) above
shall be deemed to be a “Non-Qualifying Transaction”);

provided, however, that in no event shall a Change of Control be deemed to
have occurred so long as WebMD Corporation directly or indirectly beneficially owns at least
50% of the voting power represented by the securities of the Corporation entitled to vote
generally in the election of the Corporation’s directors; and provided
further, however, that under no circumstances shall a split-off, spin-off,
stock dividend or similar transaction as a result of which the voting securities of the
Corporation are distributed to shareholders of WebMD Corporation or its successors constitute
a Change of Control.

     Notwithstanding the foregoing, with respect to an Award that is subject to Section 409A
of the Code, and payment or settlement of such Award is to be accelerated in connection with
an event that would otherwise constitute a Change of Control, no event set forth in clause
(i), (ii) or (iii) will constitute a Change of Control for purposes of the Plan and any
Award Agreement unless such event also constitutes a “change in the ownership”, “change in
the effective control” or “change in the ownership of a substantial portion of the assets”
of the Corporation as defined under Section 409A of the Code and the Treasury guidance
promulgated thereunder.

     (i) “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
the regulations promulgated thereunder.

     (j) “Committee” means, subject to the last sentence of Section 4.1, the committee of
the Board described in Article 4.

     (k) “Covered Employee” means a covered employee as defined in Section 162(m)(3) of the
Code, provided that no employee shall be a Covered Employee until the deduction
limitations of Section 162(m) of the Code are applicable to the Corporation and any reliance
period under Treasury Regulation Section 1.162-27(f) has expired.

     (l)
“Disability” shall have the meaning ascribed thereto under
the long-term disability plan applicable to a participant. The Committee may require such medical or other evidence as it
deems necessary to judge the nature and permanency of the Participant’s condition.
Notwithstanding the above, (i) with respect to an Incentive Stock Option, Disability shall
mean Permanent and Total Disability as defined in Section 22(e)(3) of the Code and (ii) to
the extent an Award is subject to Section 409A of the Code, and payment or settlement of the
Award is to be accelerated solely as a result of the Participant’s Disability, Disability
shall have the meaning ascribed thereto under Section 409A of the Code and the Treasury
guidance promulgated thereunder.

     (m) “Dividend Equivalent” means a right granted to a Participant under Article 11.

4

 

     (n) “Effective Date” has the meaning assigned such term in Section 2.1.

     (o) “Fair Market Value”, on any date, means (i) if the Stock is listed on a securities
exchange or is traded over the Nasdaq National Market, the closing sales price on such
exchange or over such system on such date or, in the absence of reported sales on such date,
the closing sales price on the immediately preceding date on which sales were reported or
(ii) if the Stock is not listed on a securities exchange or traded over the Nasdaq National
Market, Fair Market Value will be determined by such other method as the Committee
determines in good faith to be reasonable. With respect to awards granted on the effective
date of the Corporation’s Initial Public Offering, Fair Market Value shall mean the price at
which the Stock is initially offered in the Initial Public Offering.

     (p) “Incentive Stock Option” means an Option that is intended to meet the requirements
of Section 422 of the Code or any successor provision thereto.

     (q) “Initial Public Offering” means the underwritten initial public offering of equity
securities of the Corporation pursuant to an effective registration statement under the 1933
Act.

     (r) “Non-Employee Director” means a member of the Board who is not an employee of the
Corporation or any Parent or Affiliate.

     (s) “Non-Qualified Stock Option” means an Option that is not an Incentive Stock Option.

     (t) “Option” means a right granted to a Participant under Article 7 to purchase Stock
at a specified price during specified time periods. An Option may be either an Incentive
Stock Option or a Non-Qualified Stock Option.

     (u) “Other Stock-Based Award” means a right, granted to a Participant under Article 12,
that relates to or is valued by reference to Stock or other Awards relating to Stock.

     (v) “Parent” means a corporation which owns or beneficially owns a majority of the
outstanding voting stock or voting power of the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Parent shall have the meaning set forth in
Section 424(e) of the Code.

     (w) “Participant” means a person who, as an employee, officer, consultant or director
of the Corporation or any Parent, Subsidiary or Affiliate, has been granted an Award under
the Plan.

     (x) “Performance Share” means a right granted to a Participant under Article 9, to
receive cash, Stock, or other Awards, the payment of which is contingent upon achieving
certain performance goals established by the Committee.

     (y) “Restricted Stock Award” means Stock granted to a Participant under Article 10 that
is subject to certain restrictions and to risk of forfeiture.

5

 

     (z) “Stock” means the $.01 par value Class A common stock of the Corporation and such
other securities of the Corporation as may be substituted for Stock pursuant to Article 15.

     (aa) “Stock Appreciation Right” or “SAR” means a right granted to a Participant under
Article 8 to receive a payment equal to the difference between the Fair Market Value of a
share of Stock as of the date of exercise of the SAR over the grant price of the SAR, all as
determined pursuant to Article 8.

     (bb) “Subsidiary” means any corporation, limited liability company, partnership or
other entity of which a majority of the outstanding voting equity securities or voting power
is beneficially owned directly or indirectly by the Corporation. Notwithstanding the above,
with respect to an Incentive Stock Option, Subsidiary shall have the meaning set forth in
Section 424(f) of the Code.

     (cc) “WebMd Corporation” means WebMD Corporation, a Delaware corporation.

ARTICLE 4

ADMINISTRATION

     4.1 COMMITTEE. The Plan shall be administered by a committee (the “Committee”)
appointed by the Board (which Committee shall consist of two or more directors) or, at the
discretion of the Board from time to time, the Plan may be administered by the Board. It is
intended that the directors appointed to serve on the Committee shall be “non-employee directors”
(within the meaning of Rule 16b-3 promulgated under the 1934 Act) and “outside directors” (within
the meaning of Section 162(m) of the Code) to the extent that Rule 16b-3 and, if necessary for
relief from the limitation under Section 162(m) of the Code and such relief is sought by the
Corporation, Section 162(m) of the Code, respectively, are applicable. However, the mere fact that
a Committee member shall fail to qualify under either of the foregoing requirements shall not
invalidate any Award made by the Committee which Award is otherwise validly made under the Plan.
The members of the Committee shall be appointed by, and may be changed at any time and from time to
time in the discretion of, the Board. During any time that the Board is acting as administrator of
the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the
Committee (other than in this Section 4.1) shall include the Board. Notwithstanding the foregoing,
(i) initial Awards granted to Participants in connection with the Initial Public Offering may be
determined, and (ii) to the extent determined by the Board, following the Initial Public Offering
the Plan may be administered, by the compensation committee of the board of directors of WebMD
Corporation and all references to such Committee in the Plan shall be deemed to refer to such
Committee for so long as it serves as the Plan administrator.

     4.2 ACTION BY THE COMMITTEE. For purposes of administering the Plan, the following
rules of procedure shall govern the Committee. A majority of the Committee shall constitute a
quorum. The acts of a majority of the members present at any meeting at which a quorum is present,
and acts approved unanimously in writing by the members of the Committee in lieu of a meeting,
shall be deemed the acts of the Committee. Each member of the Committee

6

 

is entitled to, in good faith, rely or act upon any report or other information furnished to
that member by any officer or other employee of the Corporation or any Parent or Affiliate, the
Corporation’s independent certified public accountants, or any executive compensation consultant or
other professional retained by the Corporation to assist in the administration of the Plan.

     4.3 AUTHORITY OF COMMITTEE. Except as provided below, the Committee has the exclusive
power, authority and discretion to:

     (a) Designate Participants;

     (b) Determine the type or types of Awards to be granted to each Participant;

     (c) Determine the number of Awards to be granted and the number of shares of Stock to
which an Award will relate;

     (d) Determine the terms and conditions of any Award granted under the Plan, including,
but not limited to, the exercise price, grant price or purchase price, any restrictions or
limitations on the Award, any schedule for lapse of forfeiture restrictions or restrictions
on the exercisability of an Award, and accelerations or waivers thereof, based in each case
on such considerations as the Committee in its sole discretion determines;

     (e) Accelerate the vesting or lapse of restrictions of any outstanding Award, based in
each case on such considerations as the Committee in its sole discretion determines;

     (f) Determine whether, to what extent, and under what circumstances an Award may be
settled in, or the exercise price of an Award may be paid in, cash, Stock, other Awards or
other property, or an Award may be canceled, forfeited or surrendered;

     (g) Prescribe the form of each Award Agreement, which need not be identical for each
Participant;

     (h) Decide all other matters that must be determined in connection with an Award;

     (i) Establish, adopt or revise any rules and regulations as it may deem necessary or
advisable to administer the Plan;

     (j) Make all other decisions and determinations that may be required under the Plan or
as the Committee deems necessary or advisable to administer the Plan; and

     (k) Amend the Plan or any Award Agreement as provided herein.

     4.4 DELEGATION OF AUTHORITY. To the extent not prohibited by applicable laws, rules
and regulations, the Board or the Committee may, from time to time, delegate some or all of its
authority under the Plan to a subcommittee or subcommittees thereof or to one or

7

 

more directors or executive officers of the Corporation as it deems appropriate under such
conditions or limitations as it may set at the time of such delegation or thereafter, except that
neither the Board nor the Committee may delegate its authority pursuant to Article 16 to amend the
Plan. For purposes of the Plan, references to the Committee shall be deemed to refer to any
subcommittee, subcommittees, directors or executive officers to whom the Board or the Committee
delegates authority pursuant to this Section 4.4.

     4.5 DECISIONS BINDING. The Committee’s interpretation of the Plan, any Awards granted
under the Plan, any Award Agreement and all decisions and determinations by the Committee with
respect to the Plan are final, binding and conclusive on all parties.

ARTICLE 5

SHARES SUBJECT TO THE PLAN

     5.1 NUMBER OF SHARES. Subject to adjustment as provided in Section 15.1, the
aggregate number of shares of Stock reserved and available for Awards or which may be used to
provide a basis of measurement for or to determine the value of an Award (such as with a Stock
Appreciation Right or Performance Share Award) shall be 7,150,000 shares (the “Maximum Number”).
Not more than the Maximum Number of shares of Stock shall be granted in the form of Incentive Stock
Options.

     5.2 LAPSED AWARDS. To the fullest extent permissible under Rule 16b-3 under the 1934
Act and Section 422 of the Code and any other applicable laws, rules and regulations, (i) if an
Award is canceled, terminates, expires, is forfeited or lapses for any reason without having been
exercised or settled, any shares of Stock subject to the Award will be added back into the Maximum
Number and will again be available for the grant of an Award under the Plan and (ii) shares of
Stock subject to SARs or other Awards settled in cash and the number of shares of Stock tendered or
withheld to satisfy a Participant’s tax withholding obligations shall be added back into the
Maximum Number and will be available for the grant of an Award under the Plan.

     5.3 STOCK DISTRIBUTED. Any Stock distributed pursuant to an Award may consist, in
whole or in part, of authorized and unissued Stock, treasury Stock or Stock purchased on the open
market.

     5.4 LIMITATION ON AWARDS. Notwithstanding any provision in the Plan to the contrary
(but subject to adjustment as provided in Section 15.1), the maximum number of shares of Stock with
respect to one or more Options and/or SARs that may be granted during any one calendar year under
the Plan to any one Participant shall be 412,500 (all of which may be granted as Incentive Stock
Options); provided, however, that in connection with his or her initial employment
with the Corporation, a Participant may be granted Options or SARs with respect to up to an
additional 412,500 shares of Stock (all of which may be granted as Incentive Stock Options), which
shall not count against the foregoing annual limit. The maximum Fair Market Value (measured as of
the date of grant) of any Awards other than Options and SARs that may be received by any one
Participant (less any consideration paid by the Participant for such Award) during any one calendar
year under the Plan shall be $5,000,000. The maximum number of shares of Stock that may be subject
to one or more Performance Share Awards (or used to provide a basis of measurement for or to
determine the value of Performance Share Awards) in

8

 

any one calendar year to any one participant (determined on the date of payment of settlement)
shall be 412,500.

ARTICLE 6

ELIGIBILITY

     6.1 GENERAL. Awards may be granted only to individuals who are employees, officers,
directors or consultants of the Corporation or a Parent or an Affiliate.

ARTICLE 7

STOCK OPTIONS

     7.1 GENERAL. The Committee is authorized to grant Options to Participants on the
following terms and conditions:

     (a) EXERCISE PRICE. The exercise price per share of Stock under an Option
shall be determined by the Committee at the time of the grant but in no event shall the
exercise price be less than 100% of the Fair Market Value of a share of Stock on the date of
grant.

     (b) TIME AND CONDITIONS OF EXERCISE. The Committee shall determine the time or
times at which an Option may be exercised in whole or in part, subject to Section 7.1(e).
The Committee also shall determine the performance or other conditions, if any, that must be
satisfied before all or part of an Option may be exercised. The Committee may waive any
exercise provisions at any time in whole or in part based upon factors as the Committee may
determine in its sole discretion so that the Option becomes exerciseable at an earlier date.

     (c) PAYMENT. Unless otherwise determined by the Committee, the exercise price
of an Option may be paid (i) in cash, (ii) by actual delivery or attestation to ownership of
freely transferable shares of stock already owned; provided, however, that
to the extent required by applicable accounting rules, such shares shall have been held by
the Participant for at least six months, (iii) by a combination of cash and shares of Stock
equal in value to the exercise price or (iv) by such other means as the Committee, in its
discretion, may authorize. In accordance with the rules and procedures authorized by the
Committee for this purpose, an Option may also be exercised through a “cashless exercise”
procedure authorized by the Committee that permits Participants to exercise Options by
delivering a properly executed exercise notice to the Corporation together with a copy of
irrevocable instructions to a broker to deliver promptly to the Corporation the amount of
sale or loan proceeds necessary to pay the exercise price and the amount of any required tax
or other withholding obligations.

     (d) EVIDENCE OF GRANT. All Options shall be evidenced by a written Award
Agreement between the Corporation and the Participant. The Award Agreement shall include
such provisions not inconsistent with the Plan as may be specified by the Committee.

9

 

     (e) EXERCISE TERM. In no event may any Option be exercisable for more than ten
years from the date of its grant.

     7.2 INCENTIVE STOCK OPTIONS. The terms of any Incentive Stock Options granted under
the Plan must comply with the following additional rules:

     (a) LAPSE OF OPTION. An Incentive Stock Option shall lapse under the earliest
of the following circumstances; provided, however, that the Committee may,
prior to the lapse of the Incentive Stock Option under the circumstances described in
paragraphs (3), (4) and (5) below, provide in writing that the Option will extend until a
later date, but if an Option is exercised after the dates specified in paragraphs (3), (4)
and (5) below, it will automatically become a Non-Qualified Stock Option:

     (1) The Incentive Stock Option shall lapse as of the option expiration date set
forth in the Award Agreement.

     (2) The Incentive Stock Option shall lapse ten years after it is granted,
unless an earlier time is set in the Award Agreement.

     (3) If the Participant terminates employment for any reason other than as
provided in paragraph (4) or (5) below, the Incentive Stock Option shall lapse,
unless it is previously exercised, three months after the Participant’s termination
of employment; provided, however, that if the Participant’s
employment is terminated by the Corporation for Cause, the Incentive Stock Option
shall (to the extent not previously exercised) lapse immediately.

     (4) If the Participant terminates employment by reason of his Disability, the
Incentive Stock Option shall lapse, unless it is previously exercised, one year
after the Participant’s termination of employment.

     (5) If the Participant dies while employed, or during the three-month period
described in paragraph (3) or during the one-year period described in paragraph (4)
and before the Option otherwise lapses, the Option shall lapse one year after the
Participant’s death. Upon the Participant’s death, any exercisable Incentive Stock
Options may be exercised by the Participant’s beneficiary, determined in accordance
with Section 14.5.

     Unless the exercisability of the Incentive Stock Option is accelerated as provided in
Article 14, if a Participant exercises an Option after termination of employment, the Option
may be exercised only with respect to the shares that were otherwise vested on the
Participant’s termination of employment.

     (b) INDIVIDUAL DOLLAR LIMITATION. The aggregate Fair Market Value (determined
as of the time an Award is made) of all shares of Stock with respect to which Incentive
Stock Options are first exercisable by a Participant in any calendar year may not exceed
$100,000.00.

10

 

     (c) TEN PERCENT OWNERS. No Incentive Stock Option shall be granted to any
individual who, at the date of grant, owns stock possessing more than ten percent of the
total combined voting power of all classes of stock of the Corporation or any Parent or
Affiliate unless the exercise price per share of such Option is at least 110% of the Fair
Market Value per share of Stock at the date of grant and the Option expires no later than
five years after the date of grant.

     (d) EXPIRATION OF INCENTIVE STOCK OPTIONS. No Award of an Incentive Stock
Option may be made pursuant to the Plan after the day immediately prior to the tenth
anniversary of the Effective Date.

     (e) RIGHT TO EXERCISE. During a Participant’s lifetime, an Incentive Stock
Option may be exercised only by the Participant or, in the case of the Participant’s
Disability, by the Participant’s guardian or legal representative.

     (f) DIRECTORS. The Committee may not grant an Incentive Stock Option to a
non-employee director. The Committee may grant an Incentive Stock Option to a director who
is also an employee of the Corporation or any Parent or Affiliate but only in that
individual’s position as an employee and not as a director.

ARTICLE 8

STOCK APPRECIATION RIGHTS

     8.1 GRANT OF STOCK APPRECIATION RIGHTS. The Committee is authorized to grant Stock
Appreciation Rights to Participants on the following terms and conditions:

     (a) RIGHT TO PAYMENT. Upon the exercise of a Stock Appreciation Right, the
Participant to whom it is granted has the right to receive the excess, if any, of:

     (1) The Fair Market Value of one share of Stock on the date of exercise; over

     (2) The grant price of the Stock Appreciation Right as determined by the
Committee, which shall not be less than the Fair Market Value of one share of Stock
on the date of grant.

     (b) OTHER TERMS. All awards of Stock Appreciation Rights shall be evidenced by
an Award Agreement. The terms, methods of exercise, methods of settlement, form of
consideration payable in settlement, and any other terms and conditions of any Stock
Appreciation Right shall be determined by the Committee at the time of the grant of the
Award and shall be reflected in the Award Agreement.

ARTICLE 9

PERFORMANCE SHARES

     9.1 GRANT OF PERFORMANCE SHARES. The Committee is authorized to grant Performance
Shares to Participants on such terms and conditions as may be selected by the Committee. The
Committee shall have the complete discretion to determine the number of

11

 

Performance Shares granted to each Participant, subject to Section 5.4. All Awards of
Performance Shares shall be evidenced by an Award Agreement.

     9.2 RIGHT TO PAYMENT. A grant of Performance Shares gives the Participant rights,
valued as determined by the Committee, and payable to, or exercisable by, the Participant to whom
the Performance Shares are granted, in whole or in part, as the Committee shall establish at grant
or thereafter. The Committee shall set performance goals and other terms or conditions to payment
of the Performance Shares in its discretion which, depending on the extent to which they are met,
will determine the number and value of Performance Shares that will be paid to the Participant.

     9.3 OTHER TERMS. Performance Shares may be payable in cash, Stock or other property,
and have such other terms and conditions as determined by the Committee and reflected in the Award
Agreement.

ARTICLE 10

RESTRICTED STOCK AWARDS

     10.1 GRANT OF RESTRICTED STOCK. The Committee is authorized to make Awards of
Restricted Stock to Participants in such amounts and subject to such terms and conditions as may be
selected by the Committee. All Awards of Restricted Stock shall be evidenced by a Restricted Stock
Award Agreement.

     10.2 ISSUANCE AND RESTRICTIONS. Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may impose (including,
without limitation, limitations on the right to vote Restricted Stock or the right to receive
dividends on the Restricted Stock). These restrictions may lapse separately or in combination at
such times, under such circumstances, in such installments, upon the satisfaction of performance
goals or otherwise, as the Committee determines at the time of the grant of the Award or
thereafter.

     10.3 FORFEITURE. Except as otherwise determined by the Committee at the time of the
grant of the Award or thereafter, upon termination of employment during the applicable restriction
period or upon failure to satisfy a performance goal during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions shall be forfeited and reacquired by
the Corporation; provided, however, that the Committee may provide in any Award
Agreement that restrictions or forfeiture conditions relating to Restricted Stock will be waived in
whole or in part in the event of terminations resulting from specified causes, and the Committee
may in other cases waive in whole or in part restrictions or forfeiture conditions relating to
Restricted Stock.

     10.4 CERTIFICATES FOR RESTRICTED STOCK. Restricted Stock granted under the Plan may
be evidenced in such manner as the Committee shall determine. If certificates representing shares
of Restricted Stock are registered in the name of the Participant, certificates must bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock.

12

 

ARTICLE 11

DIVIDEND EQUIVALENTS

     11.1 GRANT OF DIVIDEND EQUIVALENTS. The Committee is authorized to grant Dividend
Equivalents to Participants subject to such terms and conditions as may be selected by the
Committee. Dividend Equivalents shall entitle the Participant to receive payments (in cash, Stock
or other property) equal to dividends with respect to all or a portion of the number of shares of
Stock subject to an Award, as determined by the Committee. The Committee may provide that Dividend
Equivalents be paid or distributed when accrued, or be deemed to have been reinvested in additional
shares of Stock or otherwise reinvested.

ARTICLE 12

OTHER STOCK-BASED AWARDS

     12.1 GRANT OF OTHER STOCK-BASED AWARDS. The Committee is authorized, subject to
limitations under applicable law, to grant to Participants such other Awards that are payable in,
valued in whole or in part by reference to, or otherwise based on or related to shares of Stock, as
deemed by the Committee to be consistent with the purposes of the Plan, including, without
limitation, shares of Stock awarded purely as a “bonus” and not subject to any restrictions or
conditions, convertible or exchangeable debt securities, other rights convertible or exchangeable
into shares of Stock, stock units, phantom stock and other Awards valued by reference to book value
of shares of Stock or the value of securities of or the performance of specified Parents or
Subsidiaries. The Committee shall determine the terms and conditions of such Awards.

ARTICLE 13

ANNUAL AWARDS TO NON-EMPLOYEE DIRECTORS

     13.1 GRANT OF OPTIONS. Each Non-Employee Director who is serving in such capacity as
of January 1 of each year that the Plan is in effect shall be granted a Non-Qualified Option to
purchase 13,200 shares of Stock, subject to adjustment as provided in Section 15.1. In
addition, each Non-Employee Director who is serving in such capacity as of the effective date of
the Initial Public Offering shall be granted a Non-Qualified Stock
Option to purchase 13,200 shares of Stock on such date. Each such date that Options are to be granted under this Article 13
is referred to hereinafter as a “Grant Date”. In addition, the Committee may, in its sole
discretion, permit or require each Non-Employee Director to receive all or any portion of his or
her compensation for services as a director in the form of an Award under the Plan with such term
and conditions as may be determined by the Board in its sole discretion.

     If on any Grant Date, shares of Stock are not available under the Plan to grant to
Non-Employee Directors the full amount of a grant contemplated by the immediately preceding
paragraph, then each Non-Employee Director shall receive an Option (a “Reduced Grant”) to purchase
shares of Stock in an amount equal to the number of shares of Stock then available under the Plan
divided by the number of Non-Employee Directors as of the applicable Grant Date. Fractional shares
shall be ignored and not granted.

13

 

     If a Reduced Grant has been made and, thereafter, during the term of the Plan, additional
shares of Stock become available for grant, then each person who was a Non-Employee Director both
on the Grant Date on which the Reduced Grant was made and on the date additional shares of Stock
become available (a “Continuing Non-Employee Director”) shall receive an additional Option to
purchase shares of Stock. The number of newly available shares shall be divided equally among the
Options granted to the Continuing Non-Employee Directors; provided, however, that
the aggregate number of shares of Stock subject to a Continuing Non-Employee Director’s additional
Option plus any prior Reduced Grant to the Continuing Non-Employee Director on the applicable Grant
Date shall not exceed 13,200 shares (subject to adjustment pursuant to Section 15.1). If more
than one Reduced Grant has been made, available Options shall be granted beginning with the
earliest such Grant Date.

     13.2 OPTION PRICE. The option price for each Option granted under this Article 13
shall be the Fair Market Value on the date of grant of the Option.

     13.3 TERM. Each Option granted under this Article 13 shall, to the extent not
previously exercised, terminate and expire on the date ten (10) years after the date of grant of
the Option, unless earlier terminated as provided in Section 13.4.

     13.4 LAPSE OF OPTION. An Option granted under this Article 13 shall not automatically
lapse by reason of the Participant ceasing to qualify as a Non-Employee Director but remaining as a
member of the Board. An Option granted under this Article 13 shall lapse under the earliest of the
following circumstances:

     (1) The Option shall lapse ten years after it is granted.

     (2) If the Participant ceases to serve as a member of the Board for any reason other
than as provided in paragraph (3) or (4) below, the Option shall lapse unless it is
previously exercised, three months after the Participant’s termination as a member of the
Board; provided, however, that if the Participant is removed for cause
(determined in accordance with the Corporation’s bylaws, as amended from time to time), the
Option shall (to the extent not previously exercised) lapse immediately.

     (3) If the Participant ceases to serve as a member of the Board by reason of his or her
Disability, the Option shall lapse, unless it is previously exercised, one year after the
Participant’s termination as a member of the Board.

     (4) If the Participant dies while serving as a member of the Board, or during the
three-month period described in paragraph (2) or during the one-year period described in
paragraph (3) and before the Option otherwise lapses, the Option shall lapse one year after
the Participant’s death. Upon the Participant’s death, any exercisable Options may be
exercised by the Participant’s beneficiary, determined in accordance with Section 14.5.

     If a Participant exercises Options after termination of his or her service on the Board, he or
she may exercise the Options only with respect to the shares that were otherwise exercisable on the
date of termination of his service on the Board. Such exercise otherwise shall be subject to the
terms and conditions of this Article 13.

14

 

     13.5 CANCELLATION OF OPTIONS. Upon a Participant’s termination of service for any
reason other than death or Disability, all Options that have not vested in accordance with the Plan
shall be cancelled immediately.

     13.6 EXERCISABILITY. Each Option grant under this Article 13 shall be exercisable as
to twenty-five percent (25%) of the Option shares on each of the first, second, third and fourth
anniversaries of the Grant Date, such that the Options will be fully exercisable after four years
from the Grant Date.

     13.7 TERMINATION OF ARTICLE 13. No Options shall be granted under this Article 13
after January 1, 2015.

     13.8 NON-EXCLUSIVITY. Nothing in this Article 13 shall prohibit the Committee from
making discretionary Awards to Non-Employee Directors pursuant to the other provisions of the Plan
before or after January 1, 2015. Options granted pursuant to this Article 13 shall be governed by
the provisions of this Article 13 and by other provisions of the Plan to the extent not
inconsistent with the provisions of this Article 13.

ARTICLE 14

PROVISIONS APPLICABLE TO AWARDS

     14.1 STAND-ALONE, TANDEM, AND SUBSTITUTE AWARDS. Awards granted under the Plan may,
in the discretion of the Committee, be granted either alone or in addition to, in tandem with, or
in substitution for, any other Award granted under the Plan. If an Award is granted in
substitution for another Award, the Committee may require the surrender of such other Award in
consideration of the grant of the new Award. Awards granted in addition to or in tandem with other
Awards may be granted either at the same time as or at a different time from the grant of such
other Awards.

     14.2 TERM OF AWARD. The term of each Award shall be for the period as determined by
the Committee, provided that in no event shall the term of any Incentive Stock Option or a
Stock Appreciation Right granted in tandem with the Incentive Stock Option exceed a period of ten
years from the date of its grant (or, if Section 7.2(c) applies, five years from the date of its
grant).

     14.3 FORM OF PAYMENT FOR AWARDS. Subject to the terms of the Plan and any applicable
law or Award Agreement, payments or transfers to be made by the Corporation or a Parent or
Affiliate on the grant or exercise of an Award may be made in such form as the Committee determines
at or after the time of grant, including, without limitation, cash, Stock, other Awards or other
property, or any combination thereof, and may be made in a single payment or transfer, in
installments or on a deferred basis, in each case determined in accordance with rules adopted by,
and at the discretion of, the Committee.

     14.4 LIMITS ON TRANSFER. No right or interest of a Participant in any unexercised or
restricted Award may be pledged, encumbered or hypothecated to or in favor of any party other than
the Corporation or a Parent or Affiliate, or shall be subject to any lien, obligation, or liability
of such Participant to any other party other than the Corporation or a Parent or Affiliate. No
unexercised or restricted Award shall be assignable or transferable by a Participant other than

15

 

by will or the laws of descent and distribution or, except in the case of an Incentive Stock
Option, pursuant to a domestic relations order that would satisfy Section 414(p)(1)(A) of the Code
if such Section applied to an Award under the Plan; provided, however, that the
Committee may (but need not) permit other transfers where the Committee concludes that such
transferability (i) does not result in accelerated taxation or other adverse tax consequences, (ii)
does not cause any Option intended to be an Incentive Stock Option to fail to be described in
Section 422(b) of the Code, and (iii) is otherwise appropriate and desirable, taking into account
any factors deemed relevant, including, without limitation, state or federal tax or securities laws
applicable to transferable Awards.

     14.5 BENEFICIARIES. Notwithstanding Section 14.4, a Participant may, in the manner
determined by the Committee, designate a beneficiary to exercise the rights of the Participant and
to receive any distribution with respect to any Award upon the Participant’s death. A beneficiary,
legal guardian, legal representative or other person claiming any rights under the Plan is subject
to all terms and conditions of the Plan and any Award Agreement applicable to the Participant,
except to the extent the Plan and such Award Agreement otherwise provide, and to any additional
restrictions deemed necessary or appropriate by the Committee. If no beneficiary has been
designated or survives the Participant, payment shall be made to the Participant’s estate. Subject
to the foregoing, a beneficiary designation may be changed or revoked by a Participant at any time,
provided the change or revocation is filed with the Committee.

     14.6 STOCK CERTIFICATES. All Stock issuable under the Plan is subject to any
stop-transfer orders and other restrictions as the Committee deems necessary or advisable to comply
with federal or state securities laws, rules and regulations and the rules of any national
securities exchange or automated quotation system on which the Stock is listed, quoted or traded.
The Committee may place legends on any Stock certificate or issue instructions to the transfer
agent to reference restrictions applicable to the Stock.

     14.7 ACCELERATION UPON DEATH OR DISABILITY. Unless otherwise set forth in an Award
Agreement, upon the Participant’s death or Disability during his employment or service as a
director, all outstanding Options, Stock Appreciation Rights, Restricted Stock Awards and other
Awards in the nature of rights that may be exercised shall become fully exercisable and all
restrictions on outstanding Awards shall lapse. Any Option or Stock Appreciation Rights Awards
shall thereafter continue or lapse in accordance with the other provisions of the Plan and the
Award Agreement. To the extent that this provision causes Incentive Stock Options to exceed the
dollar limitation set forth in Section 7.2(b), the excess Options shall be deemed to be
Non-Qualified Stock Options.

     14.8 ACCELERATION OF VESTING AND LAPSE OF RESTRICTIONS. The Committee may, in its
sole discretion, at any time (including, without limitation, prior to, coincident with or
subsequent to a Change of Control) determine that (a) all or a portion of a Participant’s Options,
Stock Appreciation Rights and other Awards in the nature of rights that may be exercised shall
become fully or partially exercisable, and/or (b) all or a part of the restrictions on all or a
portion of the outstanding Awards shall lapse, in each case, as of such date as the Committee may,
in its sole discretion, declare; provided, however, that, with respect to Awards
that are subject to Section 409A of the Code, the Committee shall not have the authority

16

 

to accelerate or postpone the timing of payment or settlement of an Award in a manner that
would cause such Award to become subject to the interest and penalty provisions under Section 409A
of the Code. The Committee may discriminate among Participants and among Awards granted to a
Participant in exercising its discretion pursuant to this Section 14.8.

     14.9 OTHER ADJUSTMENTS. If (i) an Award is accelerated under Section 14.8 or (ii) a
Change of Control occurs (regardless or whether acceleration under Section 14.8 occurs), the
Committee may, in its sole discretion, provide (a) that the Award will expire after a designated
period of time after such acceleration or Change of Control, as applicable, to the extent not then
exercised, (b) that the Award will be settled in cash rather than Stock, (c) that the Award will be
assumed by another party to a transaction giving rise to the acceleration or a party to the Change
of Control, (d) that the Award will otherwise be equitably converted or adjusted in connection with
such transaction or Change of Control, or (e) any combination of the foregoing. The Committee’s
determination need not be uniform and may be different for different Participants whether or not
such Participants are similarly situated; provided, however, that, with respect to
Awards that are subject to Section 409A of the Code, the Committee shall not have the authority to
accelerate or postpone the timing of payment or settlement of an Award in a manner that would cause
such Award to become subject to the interest and penalty provisions under Section 409A of the Code.

     14.10 PERFORMANCE GOALS. In order to preserve the deductibility of an Award under
Section 162(m) of the Code, the Committee may determine that any Award granted pursuant to this
Plan to a Participant that is or is expected to become a Covered Employee shall be determined
solely on the basis of (a) the achievement by the Corporation or Subsidiary of a
specified target return, or target growth in return, on equity or assets, (b) the Corporation’s
stock price, (c) the Corporation’s total shareholder return (stock price appreciation plus
reinvested dividends) relative to a defined comparison group or target over a specific performance
period, (d) the achievement by the Corporation or a Parent or Subsidiary, or a business unit of any
such entity, of a specified target, or target growth in, net income, earnings per share, earnings
before income and taxes, and earnings before income, taxes, depreciation and amortization, or (e)
any combination of the goals set forth in (a) through (d) above. If an Award is made on such
basis, the Committee shall establish goals prior to the beginning of the period for which such
performance goal relates (or such later date as may be permitted under Section 162(m) of the Code
or the regulations thereunder), and the Committee has the right for any reason to reduce (but not
increase) the Award, notwithstanding the achievement of a specified goal. Any payment of an Award
granted with performance goals shall be conditioned on the written certification of the Committee
in each case that the performance goals and any other material conditions were satisfied.

     14.11 TERMINATION OF EMPLOYMENT. Whether military, government or other service or
other leave of absence shall constitute a termination of employment shall be determined in each
case by the Committee at its discretion, and any determination by the Committee shall be final and
conclusive. A termination of employment shall not occur (i) in a circumstance in which a
Participant transfers from the Corporation to one of its Parents or Subsidiaries, transfers from a
Parent or Affiliate to the Corporation, or transfers from one Parent or Affiliate to another Parent
or Affiliate, or (ii) in the discretion of the Committee as specified at or prior to such
occurrence, in the case of a split-off, spin-off, sale or other disposition of the

17

 

Participant’s employer from the Corporation or any Parent or Affiliate. To the extent that
this provision causes Incentive Stock Options to extend beyond three months from the date a
Participant is deemed to be an employee of the Corporation, a Parent or Affiliate for purposes of
Section 424(f) of the Code, the Options held by such Participant shall be deemed to be
Non-Qualified Stock Options.

     14.12 LOAN PROVISIONS. Subject to applicable laws, rules and regulations, including,
without limitation, Section 402 of the Sarbanes-Oxley Act of 2002, with the consent of the
Committee, the Corporation may make, guarantee or arrange for a loan or loans to a Participant with
respect to the exercise of any Option granted under this Plan and/or with respect to the payment of
the purchase price, if any, of any Award granted hereunder and/or with respect to the payment by
the Participant of any or all federal and/or state income taxes due on account of the granting or
exercise of any Award hereunder. The Committee shall have full authority to decide whether to make
a loan or loans hereunder and to determine the amount, terms and provisions of any such loan(s),
including the interest rate to be charged in respect of any such loan(s), whether the loan(s) are
to be made with or without recourse against the borrower, the collateral or other security, if any,
securing the repayment of the loan(s), the terms on which the loan(s) are to be repaid and the
conditions, if any, under which the loan(s) may be forgiven.

ARTICLE 15

CHANGES IN CAPITAL STRUCTURE

     15.1 GENERAL. In the event of a corporate transaction involving the Corporation
(including, without limitation, any stock dividend, stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, combination or
exchange of shares), the authorization limits under Section 5.1 and 5.4 shall be adjusted
proportionately, and the Committee may adjust Awards to preserve the benefits or potential benefits
of the Awards. Action by the Committee may include: (i) adjustment of the number and kind of
shares which may be delivered under the Plan; (ii) adjustment of the number and kind of shares
subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards; (iv)
adjustments to the type or form of Award, and (v) any other adjustments that the Committee
determines to be equitable. Without limiting the foregoing, in the event a stock dividend or stock
split is declared upon the Stock, the authorization limits under Section 5.1 and 5.4 shall be
increased proportionately, and the shares of Stock then subject to each Award shall be increased
proportionately without any change in the aggregate purchase price therefor.

ARTICLE 16

AMENDMENT, MODIFICATION AND TERMINATION

     16.1 AMENDMENT, MODIFICATION AND TERMINATION. The Board or the Committee may, at any
time and from time to time, amend, modify or terminate the Plan; provided, however,
that the Board or the Committee may condition any amendment or modification on the approval of
shareholders of the Corporation if such approval is necessary or deemed advisable with respect to
tax, securities or other applicable laws, policies or regulations.

     16.2 AWARDS PREVIOUSLY GRANTED. At any time and from time to time, the Committee may
amend, modify or terminate any outstanding Award or Award Agreement

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without approval of the Participant; provided, however, that, subject to the
terms of the applicable Award Agreement, such amendment, modification or termination shall not,
without the Participant’s consent, reduce or diminish the value of such Award determined as if the
Award had been exercised, vested, cashed in or otherwise settled on the date of such amendment or
termination; provided further, however, that the original term of any
Option may not be extended. No termination, amendment, or modification of the Plan shall adversely
affect any Award previously granted under the Plan, without the written consent of the Participant.
Notwithstanding any provision herein to the contrary, the Committee shall have broad authority to
amend the Plan or any outstanding Award under the Plan without approval of the Participant to the
extent necessary or desirable (i) to comply with, or take into account changes in, applicable tax
laws, securities laws, accounting rules and other applicable laws, rules and regulations or (ii) to
ensure that an Award is not subject to interest and penalties under Section 409A of the Code.

ARTICLE 17

GENERAL PROVISIONS

     17.1 NO RIGHTS TO AWARDS. No Participant or any eligible participant shall have any
claim to be granted any Award under the Plan, and neither the Corporation nor the Committee is
obligated to treat Participants or eligible participants uniformly.

     17.2 NO STOCKHOLDER RIGHTS. No Award gives the Participant any of the rights of a
shareholder of the Corporation unless and until shares of Stock are in fact issued to such person
in connection with the exercise, payment or settlement of such Award.

     17.3 WITHHOLDING. The Corporation or any Subsidiary, Parent or Affiliate shall have
the authority and the right to deduct or withhold, or require a Participant to remit to the
Corporation, an amount sufficient to satisfy federal, state, local and other taxes (including the
Participant’s FICA obligation) required by law to be withheld with respect to any taxable event
arising as a result of the Plan. With respect to withholding required upon any taxable event under
the Plan, the Committee may, at the time the Award is granted or thereafter, require or permit that
any such withholding requirement be satisfied, in whole or in part, by (i) withholding from the
Award shares of Stock or (ii) delivering shares of Stock that are already owned, having a Fair
Market Value on the date of withholding equal to the minimum amount (and not any greater amount)
required to be withheld for tax purposes, all in accordance with such procedures as the Committee
establishes. The Corporation or any Subsidiary, Parent or Affiliate, as appropriate, shall also
have the right to deduct from all cash payments made to a Participant (whether or not such payment
is made in connection with an Award) any applicable taxes required to be withheld with respect to
such payments.

     17.4 NO RIGHT TO CONTINUED SERVICE. Nothing in the Plan or any Award Agreement shall
interfere with or limit in any way the right of the Corporation or any Parent or Affiliate to
terminate any Participant’s employment or status as an officer, director or consultant at any time,
nor confer upon any Participant any right to continue as an employee, officer, director or
consultant of the Corporation or any Parent or Affiliate. In its sole discretion, the Board or the
Committee may authorize the creation of trusts or other arrangements to meet the obligations
created under the Plan to deliver shares of Stock with respect to awards hereunder.

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     17.5 UNFUNDED STATUS OF AWARDS. The Plan is intended to be an “unfunded” plan for
incentive and deferred compensation. With respect to any payments not yet made to a Participant
pursuant to an Award, nothing contained in the Plan or any Award Agreement shall give the
Participant any rights that are greater than those of a general creditor of the Corporation or any
Parent or Affiliate.

     17.6 INDEMNIFICATION. To the extent allowable under applicable law, each member of
the Committee shall be indemnified and held harmless by the Corporation from any loss, cost,
liability or expense that may be imposed upon or reasonably incurred by such member in connection
with or resulting from any claim, action, suit or proceeding to which such member may be a party or
in which he may be involved by reason of any action or failure to act under the Plan and against
and from any and all amounts paid by such member in satisfaction of judgment in such action, suit
or proceeding against him; provided such member shall give the Corporation an opportunity,
at its own expense, to handle and defend the same before such member undertakes to handle and
defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive
of any other rights of indemnification to which such persons may be entitled under the
Corporation’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any
power that the Corporation may have to indemnify them or hold such persons harmless.

     17.7 RELATIONSHIP TO OTHER BENEFITS. No payment under the Plan shall be taken into
account in determining any benefits under any pension, retirement, savings, profit sharing, group
insurance, welfare or benefit plan of the Corporation or any Parent or Affiliate unless provided
otherwise in such other plan.

     17.8 EXPENSES; APPLICATION OF FUNDS. The expenses of administering the Plan shall be
borne by the Corporation and its Parents or Subsidiaries. The proceeds received by the Corporation
from the sale of shares of Stock pursuant to Awards will be used for general corporate purposes.

     17.9 TITLES AND HEADINGS. The titles and headings of the Sections in the Plan are for
convenience of reference only, and in the event of any conflict, the text of the Plan, rather than
such titles or headings, shall control.

     17.10 GENDER AND NUMBER. Except where otherwise indicated by the context, any
masculine term used herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural.

     17.11 FRACTIONAL SHARES. No fractional shares of Stock shall be issued and the
Committee shall determine, in its discretion, whether cash shall be given in lieu of fractional
shares or whether such fractional shares shall be eliminated by rounding up or down.

     17.12 GOVERNMENT AND OTHER REGULATIONS. The obligation of the Corporation to make
payment of awards in Stock or otherwise shall be subject to all applicable laws, rules and
regulations, and to such approvals by government agencies as may be required. To the extent that
Awards under the Plan are awarded to individuals who are domiciled or resident outside of the
United States or to persons who are domiciled or resident in the United

20

 

States but who are subject to the tax laws of a jurisdiction outside of the United States, the
Committee may adjust the terms of the Awards granted hereunder to such person (i) to comply with
the laws of such jurisdiction and (ii) to avoid adverse tax consequences relating to an Award. The
authority granted under the previous sentence shall include the discretion for the Committee to
adopt, on behalf of the Corporation, one or more sub-plans applicable to separate classes of
Participants who are subject to the laws of jurisdictions outside of the United States.

     17.13 SECURITIES LAW RESTRICTIONS. An Award may not be exercised or settled and no
shares of Stock may be issued in connection with an Award unless the issuance of such shares of
Stock has been registered under the 1933 Act and qualified under applicable state “blue sky” laws
and any applicable foreign securities laws, or the Corporation has determined that an exemption
from registration and from qualification under such state “blue sky” laws is available. The
Corporation shall be under no obligation to register under the 1933 Act, or any state securities
act, any of the shares of Stock issued in connection with the Plan. The shares issued in
connection with the Plan may in certain circumstances be exempt from registration under the 1933
Act, and the Corporation may restrict the transfer of such shares in such manner as it deems
advisable to ensure the availability of any such exemption. The Committee may require each
Participant purchasing or acquiring shares of Stock pursuant to an Award under the Plan to
represent to and agree with the Corporation in writing that such Participant is acquiring the
shares of Stock for investment purposes and not with a view to the distribution thereof. All
certificates for shares of Stock delivered under the Plan shall be subject to such stock-transfer
orders and other restrictions as the Committee may deem advisable under the rules, regulations and
other requirements of the Securities and Exchange Commission, any exchange upon which the Stock is
then listed, and any applicable securities law, and the Committee may cause a legend or legends to
be put on any such certificates to make appropriate reference to such restrictions.

     17.14 SATISFACTION OF OBLIGATIONS. Subject to applicable law, the Corporation may
apply any cash, shares of Stock, securities or other consideration received upon exercise or
settlement of an Award to any obligations a Participant owes to the Corporation and its Parents,
Subsidiaries or Affiliates in connection with the Plan or otherwise, including, without limitation,
any tax obligations or obligations under a currency facility established in connection with the
Plan.

     17.15 SECTION 409A OF THE CODE. If any provision of the Plan or an Award Agreement
contravenes any regulations or Treasury guidance promulgated under Section 409A of the Code or
could cause an Award to be subject to the interest and penalties under Section 409A of the Code,
such provision of the Plan or any Award Agreement shall be modified to maintain, to the maximum
extent practicable, the original intent of the applicable provision without violating the
provisions of Section 409A of the Code. Moreover, any discretionary authority that the Board or
the Committee may have pursuant to the Plan shall not be applicable to an Award that is subject to
Section 409A of the Code to the extent such discretionary authority will contravene Section 409A of
the Code or the Treasury guidance promulgated thereunder.

     17.16 GOVERNING LAW. To the extent not governed by federal law, the Plan and all
Award Agreements shall be construed in accordance with and governed by the laws of the State of
Delaware.

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     17.17 ADDITIONAL PROVISIONS. Each Award Agreement may contain such other terms and
conditions as the Board or the Committee may determine, provided that such other terms and
conditions are not inconsistent with the provisions of this Plan. In the event of any conflict or
inconsistency between the Plan and an Award Agreement, the Plan shall govern and the Award
Agreement shall be interpreted to minimize or eliminate such conflict or inconsistency.

     The foregoing is hereby acknowledged as being the WebMD Health Corp. 2005 Long-Term Incentive
Plan as adopted by the Board on ___, 2005.

	 	 	 	 	 
	 	 	WebMD HEALTH CORP.
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
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                        ]
	 

	 	 	 	 

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