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in the circuit court of jackson county, missouri, at independence

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after perform<strong>in</strong>g diligence over <strong>the</strong> executive summary <strong>of</strong><br />

MSCI’s bus<strong>in</strong>ess plan and affirm<strong>in</strong>g MSCI would be able to<br />

repay <strong>the</strong> mortgage based on MSCI’s value proposition and<br />

<strong>the</strong> opportunity <strong>in</strong> <strong>the</strong> market for an <strong>in</strong>dependent hospital<br />

supply electronic marketplace on <strong>the</strong> <strong>in</strong>ternet.<br />

214. L<strong>at</strong>er, GE Medical and its former president Jeffrey R.<br />

Immelt, now CEO <strong>of</strong> GE learned th<strong>at</strong> GE corpor<strong>at</strong>e had<br />

capitalized MSCI’s entry <strong>in</strong>to <strong>the</strong> hospital supply<br />

marketplace when GE’s former CEO Jack Welch had<br />

specifically <strong>in</strong>structed Jeffrey R. Immelt to distribute GE<br />

Medical’s equipment and supplies on <strong>the</strong> <strong>in</strong>ternet first <strong>in</strong><br />

GE’s electronic marketplace Global Exchange and <strong>the</strong>n to<br />

form GHX,LLC as an electronic marketplace, both because<br />

Jack Welch feared an <strong>in</strong>dependent hospital supplier cre<strong>at</strong><strong>in</strong>g<br />

an electronic marketplace th<strong>at</strong> would provide lower prices<br />

sell<strong>in</strong>g supplies from GE’s competitors.<br />

215. GHX, L.L.C. was capitalized by and rema<strong>in</strong>s under <strong>the</strong><br />

control <strong>of</strong> GE and Jeffrey R. Immelt which reta<strong>in</strong>s a<br />

directorship on <strong>the</strong> board <strong>of</strong> <strong>the</strong> priv<strong>at</strong>ely held company.<br />

216. With GE and Jeffrey R. Immelt’s approval GHX, L.L.C.<br />

had subsequently formed a jo<strong>in</strong>t venture with <strong>the</strong> rema<strong>in</strong><strong>in</strong>g<br />

electronic marketplace for hospital supplies, Ne<strong>of</strong>orma,<br />

Inc. part <strong>of</strong> a healthcare technology company capitaliz<strong>at</strong>ion<br />

syndic<strong>at</strong>e with US BANCORP’s Piper Jaffray and toge<strong>the</strong>r <strong>in</strong><br />

42

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