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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): October 13, 2008</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>Health Grades, Inc.<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

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    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
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    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-22019</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>62-1623449</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
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    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
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    <TD style="border-bottom: 1px solid #000000"><B>500 Golden Ridge Road, Suite 100<BR>Golden, Colorado<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>80401</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
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<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(303) 716-0041</B>


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    <TD nowrap style="border-bottom: 1px solid #000000"><B>&nbsp;</B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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<P align="center" style="font-size: 10pt; display: none">1
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<P align="justify" style="font-size: 10pt"><B>Item&nbsp;1.01. Entry into a Material Definitive Agreement.</B>


<P align="justify" style="font-size: 10pt">On October&nbsp;13, 2008, Health Grades, Inc., a Delaware corporation (&#147;HealthGrades&#148;), completed its acquisition of certain
of the assets of Adviware Pty Ltd., an Australian corporation (&#147;Adviware&#148;), pursuant to the Asset Purchase Agreement
(the &#147;Agreement&#148;) dated October&nbsp;13, 2008.


<P align="justify" style="font-size: 10pt">Under the terms of the Agreement, HealthGrades acquired all of the assets, tangible and intangible, owned by Adviware
that are used in, related to, or necessary for the conduct of its business, including without limitation: (i)&nbsp;all
assets, including all intellectual property, relating to the business of Adviware operated through the
<U>www.WrongDiagnosis.com</U> and <U>www.CureResearch.com</U> websites, subject to any obligations contained in
disclosed license agreements and all related intellectual property; (ii)&nbsp;any and all customer lists; and (iii)&nbsp;the
goodwill associated therewith (collectively, the &#147;Assets&#148;). HealthGrades will not assume any of Adviware&#146;s
liabilities, debts or obligations of any kind, other than obligations of Adviware accruing after the closing date under
any contracts or licenses specifically assigned to and assumed by HealthGrades.


<P align="justify" style="font-size: 10pt">The consideration paid to Adviware for the Assets consists of an upfront cash payment of $6,240,384 and contingent
consideration with an aggregate potential payout of $2,429,280. Contingent consideration is payable up to $1,214,640,
annually for 2009 and 2010 based upon certain levels of page views and revenue targets as specified in the Agreement.


<P align="justify" style="font-size: 10pt">This description of the Agreement is qualified in its entirety by the terms and conditions of the Agreement, which is
filed as Exhibit&nbsp;2.1 hereto, and is incorporated herein by reference.


<P align="justify" style="font-size: 10pt">HealthGrades will file with the Securities and Exchange Commission (the &#147;SEC&#148;) the financial statements and pro forma
financial information required to be filed pursuant to Rule&nbsp;3-05 of Regulation&nbsp;S-X and Article&nbsp;11 of Regulation&nbsp;S-X
under the Securities Act of 1933, as amended within 71&nbsp;days of the date on which this Current Report on Form 8-K was
required to be filed with the SEC.


<P align="justify" style="font-size: 10pt"><B>Item&nbsp;2.01. Completion of Acquisition or Disposition of Assets.</B>


<P align="justify" style="font-size: 10pt">See Item&nbsp;1.01 above. The closing of the Agreement took place on October&nbsp;13, 2008.


<P align="justify" style="font-size: 10pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits.</B>


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><U><I>Financial Statements of Business Acquired</I></U>.</DIV></TD>
</TR>

</TABLE>


<P align="justify" style="font-size: 10pt; text-indent: 4%">The financial statements required by Item&nbsp;9.01(a) of Form 8-K will be filed by amendment or otherwise within 71
calendar days after October&nbsp;17, 2008, the date by which this Current Report was required to be filed pursuant to
General Instruction B.1. of Form 8-K.

&nbsp;

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><U><I>Pro Forma Financial Information</I></U>.</DIV></TD>
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<P align="center" style="font-size: 10pt; display: none">2
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<P align="justify" style="font-size: 10pt; text-indent: 4%">The pro forma financial statements required by Item&nbsp;9.01(b) of Form 8-K will be filed by amendment or otherwise
within 71 calendar days after October&nbsp;17, 2008, the date by which this Current Report must be filed pursuant to General
Instruction B.1. of Form 8-K.


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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Exhibits</I></DIV></TD>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.1</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Asset Purchase Agreement dated October&nbsp;13, 2008 between Health Grades, Inc. and Adviware Pty Ltd.</DIV></TD>
</TR>

</TABLE>


<P align="justify" style="font-size: 10pt"><B>SIGNATURE</B>


<P align="justify" style="font-size: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt"><B>HEALTH GRADES, INC.</B>
<BR>
(Registrant)


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">By: <U><B>/</B>s/ ALLEN DODGE&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Allen Dodge<BR>
Executive Vice President<BR>
and Chief Financial Officer<BR>


<P align="justify" style="font-size: 10pt">Dated: October&nbsp;14, 2008

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<P align="center" style="font-size: 10pt"><B>EXHIBIT INDEX</B>


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    <TD width="87%">&nbsp;</TD>
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<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Exhibit No.</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">2.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Purchase Agreement dated October&nbsp;13, 2008 between Health
Grades, Inc. and Adviware Pty Ltd.</TD>
</TR>
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{"company-data": {"conformed-name": "HEALTH GRADES INC", "cik": "0001027915", "assigned-sic": "7389", "irs-number": "621623449", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-22019", "film-number": "081119847"}, "business-address": {"street1": "500 GOLDEN RIDGE RD", "street2": "SUITE 100", "city": "GOLDEN", "state": "CO", "zip": "80401", "phone": "3037160041"}, "mail-address": {"street1": "500 GOLDEN RIDGE RD", "street2": "SUITE 100", "city": "GOLDEN", "state": "CO", "zip": "80401"}, "former-company": [{"former-conformed-name": "HEALTHGRADES COM INC", "date-changed": "20000118"}, {"former-conformed-name": "SPECIALTY CARE NETWORK INC", "date-changed": "19961210"}]}
Filed by Bowne Pure Compliance
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 13, 2008
Health Grades, Inc.
(Exact name of registrant as specified in its charter)
Delaware
0-22019
62-1623449
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
500 Golden Ridge Road, Suite 100
Golden, Colorado
80401
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(303) 716-0041
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01. Entry into a Material Definitive Agreement.
On October 13, 2008, Health Grades, Inc., a Delaware corporation ("HealthGrades"), completed its acquisition of certain
of the assets of Adviware Pty Ltd., an Australian corporation ("Adviware"), pursuant to the Asset Purchase Agreement
(the "Agreement") dated October 13, 2008.
Under the terms of the Agreement, HealthGrades acquired all of the assets, tangible and intangible, owned by Adviware
that are used in, related to, or necessary for the conduct of its business, including without limitation: (i) all
assets, including all intellectual property, relating to the business of Adviware operated through the
www.WrongDiagnosis.com
and
www.CureResearch.com
websites, subject to any obligations contained in
disclosed license agreements and all related intellectual property; (ii) any and all customer lists; and (iii) the
goodwill associated therewith (collectively, the "Assets"). HealthGrades will not assume any of Adviware's
liabilities, debts or obligations of any kind, other than obligations of Adviware accruing after the closing date under
any contracts or licenses specifically assigned to and assumed by HealthGrades.
The consideration paid to Adviware for the Assets consists of an upfront cash payment of $6,240,384 and contingent
consideration with an aggregate potential payout of $2,429,280. Contingent consideration is payable up to $1,214,640,
annually for 2009 and 2010 based upon certain levels of page views and revenue targets as specified in the Agreement.
This description of the Agreement is qualified in its entirety by the terms and conditions of the Agreement, which is
filed as Exhibit 2.1 hereto, and is incorporated herein by reference.
HealthGrades will file with the Securities and Exchange Commission (the "SEC") the financial statements and pro forma
financial information required to be filed pursuant to Rule 3-05 of Regulation S-X and Article 11 of Regulation S-X
under the Securities Act of 1933, as amended within 71 days of the date on which this Current Report on Form 8-K was
required to be filed with the SEC.
Item 2.01. Completion of Acquisition or Disposition of Assets.
See Item 1.01 above. The closing of the Agreement took place on October 13, 2008.
Item 9.01. Financial Statements and Exhibits.
(a)
Financial Statements of Business Acquired
.
The financial statements required by Item 9.01(a) of Form 8-K will be filed by amendment or otherwise within 71
calendar days after October 17, 2008, the date by which this Current Report was required to be filed pursuant to
General Instruction B.1. of Form 8-K.
(b)
Pro Forma Financial Information
.
The pro forma financial statements required by Item 9.01(b) of Form 8-K will be filed by amendment or otherwise
within 71 calendar days after October 17, 2008, the date by which this Current Report must be filed pursuant to General
Instruction B.1. of Form 8-K.
(d)
Exhibits
2.1
Asset Purchase Agreement dated October 13, 2008 between Health Grades, Inc. and Adviware Pty Ltd.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
HEALTH GRADES, INC.
(Registrant)
By:
/
s/ ALLEN DODGE
Allen Dodge
Executive Vice President
and Chief Financial Officer
Dated: October 14, 2008
EXHIBIT INDEX
Exhibit No.
Description
2.1
Asset Purchase Agreement dated October 13, 2008 between Health
Grades, Inc. and Adviware Pty Ltd.