Document:

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                                                                  EXECUTION COPY

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                              AMENDED AND RESTATED

                      AGREEMENT AND PLAN OF REORGANIZATION

                         dated as of September 29, 2000

                                     BETWEEN

             HEALTHAXIS INC. (f/k/a PROVIDENT AMERICAN CORPORATION)

                              HEALTHAXIS.COM, INC.

                                       AND

                          HEALTHAXIS ACQUISITION CORP.

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                              AMENDED AND RESTATED
                      AGREEMENT AND PLAN OF REORGANIZATION

                                Table of Contents
                                                                            PAGE
                                                                            ----
SECTION 1:  DEFINED TERMS......................................................2
SECTION 2:  THE MERGER.........................................................6
SECTION 3:  REPRESENTATIONS OF HEALTHAXIS......................................6
       3.1    Organization.....................................................6
       3.2    Effect of Agreement..............................................6
       3.3    Capital Stock and Ownership......................................7
       3.4    Corporate Records................................................7
       3.5    Financial Statements; No Material Undisclosed Liabilities........8
       3.6    Taxes............................................................8
       3.7    Assets...........................................................9
       3.8    Obligations.....................................................10
       3.9    Operations Since June 30, 2000..................................10
       3.10   Tangible Property...............................................10
       3.11   Software and Other Intangibles..................................10
       3.12   Contracts.......................................................11
       3.13   Employees and Independent Contractors...........................12
       3.14   Employee Benefit Plans..........................................12
       3.15   Labor Matters...................................................14
       3.16   Environmental Matters...........................................15
       3.17   Material Suppliers..............................................16
       3.18   Proceedings and Judgments.......................................16
       3.19   Insurance.......................................................16
       3.20   Questionable Payments...........................................16
       3.21   Related Party Transactions......................................17
       3.22   Liens...........................................................17
       3.23   Vote Required...................................................17
       3.24   Brokerage Fees..................................................17
       3.25   Investment Company..............................................17
       3.26   Full Disclosure.................................................17
       3.27   Compliance with Law.............................................17
       3.28   Absence of Certain Changes......................................17
SECTION 4:  REPRESENTATIONS OF HAI AND NEWCO..................................18
       4.1    Organization....................................................18
       4.2    Effect of Agreement.............................................18
       4.3    Capital Stock and Ownership.....................................18
       4.4    Financial and Corporate Records.................................19
       4.5    Financial Statements; No Material Undisclosed Liabilities.......19
       4.6    Taxes...........................................................19
       4.7    SEC Filings.....................................................20
       4.8    Assets..........................................................20
       4.9    Obligations.....................................................21
       4.10   Operations Since June 30, 2000..................................21
       4.11   Tangible Property...............................................21
       4.12   Software and Other Intangibles..................................22
       4.13   Contracts.......................................................22
       4.14   Employees and Independent Contractors...........................23

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       4.15   Employee Benefit Plans..........................................23
       4.16   Labor Matters...................................................25
       4.17   Environmental Matters...........................................26
       4.18   Absence of Changes..............................................27
       4.19   Authorization for HAI Common Stock..............................27
       4.20   Proceedings and Judgments.......................................27
       4.21   Insurance.......................................................27
       4.22   Questionable Payments...........................................28
       4.23   Related Party Transactions......................................28
       4.24   Liens...........................................................28
       4.25   Vote Required...................................................28
       4.26   Brokerage Fees..................................................28
       4.27   Full Disclosure.................................................28
       4.28   Compliance with Law.............................................28
       4.29   Investment Matters..............................................29
       4.30   Investment Company..............................................29
       4.31   Other Matters...................................................29
SECTION 5:  CERTAIN OBLIGATIONS OF HEALTHAXIS PENDING CLOSING.................29
       5.1    Conduct of Business.............................................29
       5.2    Consents........................................................30
       5.3    Advice of Changes...............................................30
       5.4    Reasonable Best Efforts.........................................30
       5.5    Waivers.........................................................30
SECTION 6:  CERTAIN OBLIGATIONS OF HAI AND NEWCO PENDING CLOSING..............30
       6.1    Conduct of Business.............................................30
       6.2    Consents........................................................31
       6.3    SEC Reports.....................................................31
       6.4    Advice of Changes...............................................31
       6.5    Reasonable Best Efforts.........................................32
       6.6    NASDAQ Listing..................................................32
       6.7    Employee Benefits...............................................32
       6.8    Waivers.........................................................32
SECTION 7:  ADDITIONAL COVENANTS OF THE PARTIES...............................32
       7.1    Shareholders' Meetings..........................................32
       7.2    Registration Statement and Proxy Statement/Prospectus...........33
       7.3    Blue Sky Permits................................................34
       7.4    Tax Free Reorganization.........................................34
       7.5    Full Disclosure.................................................34
SECTION 8:  CONDITIONS PRECEDENT TO HEALTHAXIS' CLOSING OBLIGATIONS...........34
       8.1    HAI's and Newco's Representations...............................34
       8.2    HAI's and Newco's Performance...................................34
       8.3    Absence of Proceedings..........................................34
       8.4    Approval of HealthAxis and HAI Shareholders.....................35
       8.5    Board Seats.....................................................35
       8.6    Adverse Changes.................................................35
       8.7    Registration Statement..........................................35
       8.8    Listing of HAI Common Stock.....................................35
       8.9    Tax Opinion.....................................................35
SECTION 9:  CONDITIONS PRECEDENT TO HAI'S AND NEWCO'S CLOSING OBLIGATIONS.....35
       9.2    Approval of the HealthAxis and HAI Shareholders.................36

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       9.3    Dissenting and other HealthAxis Shareholders....................36
       9.4    HealthAxis' Representations.....................................36
       9.5    HealthAxis' Performance.........................................36
       9.6    Absence of Proceedings..........................................36
       9.7    Adverse Changes.................................................36
       9.8    [HealthAxis Net Worth...........................................36
SECTION 10: CLOSING...........................................................37
       10.1   Closing.........................................................37
       10.2   HealthAxis' Obligations at Closing..............................37
       10.3   HAI's and Newco's Obligations at Closing........................38
SECTION 11: CERTAIN OBLIGATIONS OF HAI AND THE SURVIVING CORPORATIONS AFTER
            CLOSING...........................................................39
       11.1   Final Tax Returns...............................................39
       11.2   Delivery of Certificates........................................40
SECTION 12: OTHER PROVISIONS..................................................40
       12.1   Survival........................................................40
       12.2   Termination.....................................................40
       12.3   Publicity.......................................................40
       12.4   Fees and Expenses...............................................41
       12.5   Notices.........................................................41
       12.6   Interpretation of Representations...............................41
       12.7   Reliance by HAI and Newco.......................................41
       12.8   Reliance by HealthAxis..........................................41
       12.9   Entire Understanding............................................41
       12.10  Parties in Interest.............................................41
       12.11  Waivers.........................................................42
       12.12  Severability....................................................42
       12.13  Counterparts....................................................42
       12.14  Section Headings................................................42
       12.15  References......................................................42
       12.16  Controlling Law.................................................42
       12.17  Jurisdiction and Process........................................42
       12.18  No Third-Party Beneficiaries....................................42
       12.19  Nature of Transactions..........................................43
       12.20  Bankruptcy Qualification........................................43
       12.21  Construction....................................................43

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                              AMENDED AND RESTATED

                      AGREEMENT AND PLAN OF REORGANIZATION

PARTIES:          HEALTHAXIS.COM, INC.
                  a Pennsylvania corporation ("HealthAxis")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

                  HEALTHAXIS INC. (F/K/A PROVIDENT AMERICAN CORPORATION)
                  a Pennsylvania corporation ("HAI")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

                  HEALTHAXIS ACQUISITION CORP.
                  a Pennsylvania corporation ("Newco")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

DATE: As of September 28, 2000

BACKGROUND: The parties previously executed and delivered an Agreement and Plan
of Reorganization, dated January 26, 2000, and Amendment No. 1 thereto, dated
March 27, 2000 (as so amended, the "Original Agreement"), which Original
Agreement contemplated that HealthAxis be merged with and into Newco (the
"Merger") on the terms and subject to the conditions set forth therein and the
Agreement and Plan of Merger dated as of January 26, 2000 and designated as
Exhibit A thereto (the "Original Plan").

         Subsequent to the execution and delivery of the Original Agreement,
Provident American Corporation changed its name to HealthAxis Inc.

         The parties hereto intend to amend and restate in its entirety the
terms of the Original Agreement and the Original Plan, as herein provided (this
"Agreement") and as set forth in the Amended and Restated Agreement and Plan of
Merger dated as of the date hereof and attached hereto as Exhibit A (the
"Plan"). As further provided in this Agreement and in the Plan attached hereto,
each share of common stock, no par value per share, of HealthAxis ("HealthAxis
Common Stock") issued and outstanding immediately before the Effective Date
(except for Dissenting Shares, as defined in Section 14 of the Plan) shall, by
virtue of the Merger and without any action on the part of the holder thereof,
be automatically converted into the right to receive 1.334 shares (the "Exchange
Ratio") of common stock of HAI, $0.10 par value per share ("HAI Common Stock").

         The parties intend that the Merger: (i) qualify as a tax -free
reorganization within the meaning of Section 368 of the Code, and (ii) be
accounted for as a purchase by HAI for financial accounting purposes.

         The Nonconflicted Directors (as defined herein) and the remainder of
the Board of Directors of HealthAxis have unanimously determined that the Merger
and the other transactions contemplated by this Agreement and the Plan
(collectively, the "Transactions") are in the best interests of HealthAxis and
its shareholders. The disinterested members of the respective Board of Directors
of HAI and Newco, a wholly owned subsidiary of HAI (consisting of those

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directors of HAI and Newco who are not affiliated in any way with HealthAxis on
the date of this Agreement), and the remainder of the members of each Board of
Directors have determined that the Transactions are in the best interests of HAI
and Newco and their respective shareholders.

         Concurrently with the execution of this Agreement, and as a condition
and inducement to HAI's willingness to enter into this Agreement, each affiliate
shareholder of HealthAxis identified in Schedule A is entering into an Affiliate
Letter attached hereto as Exhibit C.

         Intending to be legally bound, in consideration of the foregoing and
the mutual agreements contained herein and subject to the satisfaction of the
terms and conditions set forth herein, the parties hereto agree as follows:

                            SECTION 1: DEFINED TERMS

         Certain defined terms used in this Agreement and not specifically
defined in context are defined in this Section 1, as follows:

         1.1 "Accounts Receivable" means (a) any right to payment for goods
sold, leased or licensed or for services rendered, whether or not it has been
earned by performance, whether billed or unbilled, and whether or not it is
evidenced by any Contract (as defined in Section 1.7); (b) any note receivable;
or (c) any other receivable or right to payment of any nature.

         1.2  "Acquired Companies" means HealthAxis and its subsidiaries,
including but not limited to, HealthAxis.com Alabama, Inc., HealthAxis.com
Insurance Services, Inc., HealthAxis.com New Mexico, Inc., HealthAxis.com Texas,
Inc., HealthAxis.com Insurance Agency, Inc., HealthAxis Imaging Services LLC and
Satellite Image Systems (Jamaica) Ltd.

         1.3  "Acquiring Companies" means, collectively, HAI and Newco and their
respective subsidiaries, other than the Acquired Companies.

         1.4  "Asset" means any real, personal, mixed, tangible or intangible
property of any nature, including Cash Assets (as defined in Section 1.4),
prepayments, deposits, escrows, Accounts Receivable, Tangible Property (as
defined in Section 1.31), Real Property (as defined in Section 1.28), Software
(as defined in Section 1.30), Contract Rights (as defined in Section 1.8),
Intangibles (as defined in Section 1.17) and goodwill, and claims, causes of
action and other legal rights and remedies.

         1.5  "Cash Asset" means any cash on hand, cash in bank or other
accounts, readily marketable securities, and other cash-equivalent liquid assets
of any nature.

         1.6  "Code" means the Internal Revenue Code of 1986, as amended.

         1.7  "Consent" means any consent, approval, order or authorization of,
or any declaration, filing or registration with, or any application, notice or
report to, or any waiver by, or any other action (whether similar or dissimilar
to any of the foregoing) of, by or with, any Person (as defined in Section

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1.25), which is necessary in order to take a specified action or actions in a
specified manner and/or to achieve a specified result.

         1.8  "Contract" means any written or oral contract, agreement,
instrument, order, arrangement, commitment or understanding of any nature,
including sales orders, purchase orders, leases, subleases, data processing
agreements, maintenance agreements, license agreements, sublicense agreements,
loan agreements, promissory notes, security agreements, pledge agreements,
deeds, mortgages, guaranties, indemnities, warranties, employment agreements,
consulting agreements, sales representative agreements, joint venture
agreements, buy-sell agreements, options or warrants.

         1.9  "Contract Right" means any right, power or remedy of any nature
under any Contract, including rights to receive property or services or
otherwise derive benefits from the payment, satisfaction or performance of
another party's Obligations (as defined in Section 1.23), rights to demand that
another party accept property or services or take any other actions, and rights
to pursue or exercise remedies or options.

         1.10 "Disinterested HealthAxis Directors" means those members of the
Board of Directors of HealthAxis who are not members of the Board of Directors
of HAI or otherwise affiliated with HAI as of the date of this Agreement.

         1.11 "Disinterested HAI Directors" means those members of the Board of
Directors of HAI who are not members of the Board of Directors of HealthAxis or
otherwise affiliated with HealthAxis as of the date of this Agreement.

         1.12 "Employee Benefit Plan" means any employee benefit plan as defined
in Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), and any other plan, program, policy or arrangement for or
regarding bonuses, commissions, incentive compensation, severance, vacation,
deferred compensation, pensions, profit sharing, retirement, payroll savings,
stock options, stock purchases, stock awards, stock ownership, phantom stock,
stock appreciation rights, medical/dental expense payment or reimbursement,
disability income or protection, sick pay, group insurance, self insurance,
death benefits, employee welfare or fringe benefits of any nature; but not
including employment Contracts with individual employees.

         1.13 "Encumbrance" means any lien, security interest, pledge, right of
first refusal, mortgage, easement, covenant, restriction, reservation,
conditional sale, prior assignment, or other encumbrance, claim, burden or
charge of any nature.

         1.14 "Environmental Laws" means all applicable Laws (including consent
decrees and administrative orders) relating to pollution and the protection of
the environment, including common law and those governing the use, generation,
handling, storage, treatment and remedial actions or cleanup of Hazardous
Materials (as defined in Section 1.18), all as amended.

         1.15 "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

         1.16 "GAAP" means generally accepted accounting principles under
current United States accounting rules and regulations, consistently applied.

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         1.17 "HAI Common Stock" means shares of common stock, $.10 par value
per share, of HAI.

         1.18 "Hazardous Materials" means any substance, material or waste which
is regulated as hazardous or toxic by any public or governmental authority in
the jurisdictions in which the Person or its subsidiaries conducts business, or
the United States, including, without limitation, any material or substance
which is defined as a "hazardous waste," "hazardous material," "hazardous
substance," "extremely hazardous waste" or "restricted hazardous waste,"
"contaminant," "toxic waste" or "toxic substance" under any provision of
Environmental Law and shall also include, without limitation, petroleum,
petroleum products, asbestos, polychlorinated biphenyls and radioactive
materials.

         1.19 "HealthAxis Common Stock" means shares of common stock, no par
value per share, of HealthAxis.

         1.20 "including" means including but not limited to.

         1.21 "Insurance Policy" means any public liability, product liability,
general liability, comprehensive, property damage, vehicle, life, hospital,
medical, dental, disability, worker's compensation, key man, fidelity bond,
theft, forgery, errors and omissions, directors' and officers' liability, or
other insurance policy of any nature.

         1.22 "Intangible" means any name, corporate name, fictitious name,
trademark, trademark application, service mark, service mark application, trade
name, brand name, product name, slogan, trade secret, know-how, patent, patent
application, copyright, copyright application, design, logo, formula, invention,
product right, technology or other intangible asset of any nature, whether in
use, under development or design, or inactive.

         1.23 "Judgment" means any order, writ, injunction, citation, award,
decree or other judgment of any nature of any foreign, federal, state or local
court, governmental body, administrative agency, regulatory authority or
arbitration tribunal.

         1.24 "to the knowledge of HealthAxis" means that none of the directors
or officers of any of the Acquired Companies have any actual knowledge, after
due inquiry, that the statement made is incorrect.

         1.25 "to the knowledge of HAI" means that none of the directors or
officers of any of the Acquiring Companies have any actual knowledge, after due
inquiry, that the statement made is incorrect.

         1.26 "Law" means any provision of any foreign, federal, state or local
law, statute, ordinance, charter, constitution, treaty, code, rule or regulation
(including those of self-regulatory organizations such as the NASD (as defined
in Section 1.22)).

         1.27 "material adverse change" means, with respect to any Person (as
defined in Section 1.25), a material adverse change on the financial condition,
results of operations, business, assets or liabilities of such Person and its
subsidiaries, taken as a whole.

         1.28 "material adverse effect" shall mean, with respect to any Person
to this Agreement, any event, change, condition, fact or effect which has or
could reasonably be expected to have a material adverse effect on (i) the

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business, results of operations, or financial condition of such Person and its
subsidiaries taken as a whole or (ii) the ability of the Person to consummate
the transactions contemplated by this Agreement.

         1.29 "NASD" means the National Association of Securities Dealers, Inc.

         1.30 "Obligation" means any debt, liability or obligation of any
nature, whether secured, unsecured, recourse, nonrecourse, liquidated,
unliquidated, accrued, absolute, fixed, contingent, ascertained, unascertained,
known, unknown or otherwise.

         1.31 "Permit" means any license, permit, approval, waiver, order,
authorization, right or privilege of any nature, granted, issued, approved or
allowed by any foreign, federal, state or local governmental body,
administrative agency or regulatory authority.

         1.32 "Person" means any individual, sole proprietorship, joint venture,
partnership, corporation, limited liability company, partnership, association,
cooperative, trust, estate, governmental body, administrative agency, regulatory
authority or other entity of any nature.

         1.33 "Proceeding" means any demand, claim, suit, action, litigation,
investigation, arbitration, administrative hearing or other proceeding of any
nature.

         1.34 "Real Property" means any real estate, land, building,
condominium, town house, structure or other real property of any nature, all
shares of stock or other ownership interests in cooperative or condominium
associations or other forms of ownership interest through which interests in
real estate may be held, and all appurtenant and ancillary rights thereto,
including easements, covenants, water rights, sewer rights and utility rights.

         1.35 "Release" means any release, spill, effluence, emission, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, leaching, or
migration of Hazardous Material into the environment.

         1.36 "Remedial Action" means all actions, including, without
limitation, those involving any capital expenditures, required by a governmental
entity or required under any Environmental Law, or voluntarily undertaken to (w)
clean up, remove, treat, or in any other way mitigate the adverse effects of any
Hazardous Materials Released in the environment; (x) prevent the Release or
threat of Release, or minimize the further Release of any Hazardous Material so
it does not endanger or threaten to endanger the public health or welfare or the
environment; (y) perform preremedial studies and investigations or post-remedial
monitoring and care pertaining or relating to a Release or threat of Release; or
(z) bring the Merger Party into compliance with any Environmental Law.

         1.37 "SEC" means the United States Securities and Exchange Commission.

         1.38 "Software" means any computer program, operating system,
applications system, firmware or software of any nature, whether operational,
under development or inactive, including all object code, source code, technical
manuals, user manuals and other documentation therefor, whether in
machine-readable form, programming language or any other language or symbols,
and whether stored, encoded, recorded or written on disk, tape, film, memory
device, paper or other media of any nature.

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         1.39 "Tangible Property" means any furniture, fixtures, leasehold
improvements, vehicles, office equipment, computer equipment, other equipment,
machinery, tools, forms, supplies or other tangible personal property of any
nature.

         1.40 "Tax" means (a) any foreign, federal, state or local income,
earnings, profits, gross receipts, franchise, capital stock, net worth, sales,
use, value added, occupancy, general property, real property, personal property,
intangible property, transfer, fuel, excise, payroll, withholding, unemployment
compensation, social security, retirement or other tax of any nature; (b) any
foreign, federal, state or local organization fee, qualification fee, annual
report fee, filing fee, occupation fee, assessment, sewer rent or other fee or
charge of any nature; or (c) any deficiency, interest or penalty imposed with
respect to any of the foregoing.

                              SECTION 2: THE MERGER

         Subject to the terms and conditions of this Agreement and the Plan,
HealthAxis shall be merged with and into Newco with Newco being the surviving
corporation (the "Surviving Corporation") in accordance with the provisions of
this Agreement and the provisions of the Plan. The closing of the Merger and the
other Transactions shall take place on the Closing Date (as defined in Section
10.1) and shall be effective on the Effective Date (as defined in Section 10.1).

                    SECTION 3: REPRESENTATIONS OF HEALTHAXIS

         HealthAxis represents and warrants to HAI and Newco as of the date of
this Agreement and the Closing Date, and covenants with HAI and Newco, as set
forth below in each provision of this Section 3.

         3.1  Organization. Except as set forth on Schedule 3.1, each of the
Acquired Companies is a corporation duly organized and subsisting under the Laws
of the jurisdiction of its organization. HealthAxis possesses the full corporate
power and authority to enter into and perform this Agreement. Except as set
forth on Schedule 3.1, each of the Acquired Companies possesses the full
corporate power and authority to own its Assets and to conduct its business as
and where presently conducted. Each of the Acquired Companies is duly qualified
or registered to do business in each jurisdiction where the ownership or leasing
of properties or assets by it, or the operation of its business, requires such
qualification, except where the failure to qualify or register will not have a
material adverse effect on the business, financial condition or results of
operations of HealthAxis on a consolidated basis (a "HealthAxis Material Adverse
Effect"). Except as set forth on Schedule 3.1, HealthAxis has no subsidiaries.
Accurate and complete copies of articles or certificates of incorporation and
bylaws, (or similar organizational documents), each as amended to date, and all
Contracts relating to the acquisition of each of the Acquired Companies (or
their affiliates or predecessors) have been made available to HAI and Newco.

         3.2  Effect of Agreement. Subject to the approval by shareholders of
HealthAxis (the "HealthAxis Shareholders") of the Merger, HealthAxis'
consummation of the Transactions has been duly authorized by all necessary
corporate actions (including approval by the Disinterested HealthAxis Directors)
and does not constitute a violation of or default under its articles of
incorporation or bylaws (or similar organizational documents). For HealthAxis,
its execution, delivery and performance of this Agreement, and its consummation
of the Transactions, (a) does not constitute a default or breach (immediately or
after the giving of notice, passage of time or both) under any material Contract
to which it or any of the Acquired Companies is a party or by which it or any of
the Acquired Companies is bound, (b) does not constitute a material violation of

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any Law or Judgment that is applicable to it or any of the Acquired Companies,
or to the business or Assets of any of the Acquired Companies, or to the
Transactions, (c) does not accelerate or otherwise modify any material
Obligation of any of the Acquired Companies, (d) does not result in the creation
of any material Encumbrance upon, or give to any third party any interest in,
any of the business or Assets, or any of the capital stock of or interests in,
any of the Acquired Companies, and (e) except as stated on Schedule 3.2, does
not require the Consent of any Person. This Agreement constitutes the valid and
legally binding agreement of HealthAxis enforceable against it in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws
(including insurance related laws and regulations) relating to, or affecting
generally the enforcement of, creditors' rights and remedies or by other
equitable principles of general application. Except for the HealthAxis
shareholder agreements with AOL dated November 13, 1998 and UICI dated January
7, 2000, the AOL Stock Purchase Agreement dated November 13, 1998 and the
Amended and Restated Carrier Partner Agreement, as amended, with UICI dated
March 30, 1999, there exists no right of first refusal or other preemptive right
with respect to any of the Acquired Companies or the stock, business or Assets
of any of the Acquired Companies.

         3.3  Capital Stock and Ownership. As of the date of this Agreement, the
authorized capital stock of HealthAxis consists of: (i) 100,000,000 shares of
HealthAxis Common Stock, of which 42,477,449 shares are issued and outstanding;
(ii) 20,000,000 shares of Preferred Stock, par value $1.00 per share (the
"HealthAxis Preferred Stock") of which 3,031,191, shares are issued and
outstanding. Series of Preferred Stock have been designated as follows: Series A
Convertible Preferred Stock, Series B Convertible Preferred Stock, Series C
Convertible Preferred Stock, and Series D Convertible Preferred Stock
(collectively, the "HealthAxis Convertible Preferred Stock"). The HealthAxis
Common Stock and the HealthAxis Convertible Preferred Stock shall be referred to
collectively, as the "HealthAxis Stock". All of the issued and outstanding
shares of capital stock of each of the Acquired Companies have been duly
authorized and validly issued, and are fully paid and nonassessable, with no
liability or preemptive rights attaching to the ownership thereof. All issuances
and grants of all outstanding options, warrants and all offerings, sales and
issuances by each of the Acquired Companies of any shares of capital stock
complied in all material respects with all applicable federal and state
securities Laws, all applicable state corporation Laws and all requirements set
forth in applicable Contracts. Except as provided on Schedule 3.3, there are no
outstanding options, puts, calls, warrants, subscriptions, stock appreciation
rights, phantom stock, or other Contracts or Contract Rights relating to the
offering, sale, issuance, redemption or disposition of any shares of capital
stock, or other securities of, any of the Acquired Companies (the "Options").
Schedule 3.3 sets forth with respect to each of the Options the plan pursuant to
which the Option was granted, the name of the Optionee, the number of shares of
common stock subject to the Option, the exercise price, the date on which the
Option was granted, and the date on which the Option expired. Except as set
forth herein, there are no bonds, debentures, notes, or other indebtedness of
the Acquired Companies.

         3.4  Corporate Records. The books and records of each of the Acquired
Companies and Insurdata Incorporated ("Insurdata Inc.") are and have been
properly prepared and maintained in form and substance adequate for preparing
audited financial statements in accordance with GAAP, and such books and records
fairly and accurately reflect in all material respects all of the Assets and
Obligations of each of the Acquired Companies (including Insurdata Inc.) and all
Contracts and other transactions to which each of the Acquired Companies
(including Insurdata Inc.) is or was a party or by which each of the Acquired
Companies (including Insurdata Inc.) or the business or Assets of each of the
Acquired Companies (including Insurdata Inc.) is or was affected. Accurate and
complete copies of the contents of the minute books and stock books of each of
the Acquired Companies (including Insurdata Inc.) have been made available to
HAI and Newco. Such minute books and stock books include (a) minutes of all

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meetings of the HealthAxis Shareholders, board of directors and any committees
of the board of directors at which any material action was taken, which minutes
accurately record all material actions taken at such meetings, (b) accurate and
complete written statements of all actions taken by the HealthAxis Shareholders,
board of directors and any committees of the board of directors without a
meeting, and (c) accurate and complete records of the subscription, issuance,
transfer and cancellation of all shares of capital stock, and all other
securities since the date of incorporation or formation.

         3.5  Financial Statements; No Material Undisclosed Liabilities. The
consolidated financial statements of HealthAxis for the year ended December 31,
1999 and for the six months ended June 30, 2000 have been prepared in accordance
with GAAP applied on a consistent basis during the periods involved (except as
indicated in the notes thereto) and, except as set forth on Schedule 3.5, fairly
present, in accordance with the applicable requirements of GAAP, the
consolidated financial position of HealthAxis and its subsidiaries, as of the
dates thereof and the consolidated results of operations and cash flows for the
periods then ended (subject, in the case of unaudited statements, to normal
year-end audit adjustments). HealthAxis has no subsidiaries that are not
consolidated for accounting purposes. Except as reflected in Schedule 3.5, since
June 30, 2000, none of the Acquired Companies has incurred any liabilities,
absolute, accrued, contingent or otherwise, whether due or to become due (and
there is no basis for such liabilities) except: (i) liabilities arising in the
ordinary course of business consistent with past practice, which individually or
in the aggregate would not have a material adverse effect on HealthAxis; or (ii)
other liabilities which, individually or in the aggregate, together with those
liabilities referenced in subparagraph (i), would not have a material adverse
effect on HealthAxis.

         3.6  Taxes. Except as set forth in Schedule 3.6:

              (a) The Acquired Companies have (x) duly and timely filed (or
there have been filed on their behalf) with the appropriate taxing authorities
all Tax Returns required to be filed by them, and all such Tax Returns are true,
correct and complete in all material respects and (y) timely paid or there have
been paid on their behalf all Taxes shown to be due on such Returns.

              (b) The Acquired Companies have properly accrued on their
respective financial statements all Taxes due for which each of the respective
Acquired Companies may be liable, whether or not shown on any Tax Return as
being due (including by reason of being a member of an affiliated group or as a
transferee of the assets of, or successor to, any corporation, person,
association, partnership, joint venture or other entity). The Acquired Companies
have established (and until the Closing Date shall continue to establish and
maintain) on its books and records reserves that are adequate for the payment of
all Taxes not yet due and payable.

              (c) The Acquired Companies have complied in all material respects
with all applicable laws, rules and regulations relating to the payment and
withholding of Taxes, including Taxes required to have been withheld in
connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other third party and sales, gross receipts and use
taxes, and has, within the time and manner prescribed by law, withheld and paid
over to the proper governmental authorities all amounts required to be withheld
and paid over under all applicable laws, or such amounts are held in separate
bank accounts for such purpose.

                                       8
<PAGE>

              (d) There are no Liens for Taxes upon the assets or properties of
the Acquired Companies except for statutory liens for current Taxes not yet due.

              (e) The Acquired Companies have not requested any extension of
time nor has any such extension been requested on its behalf within which to
file any Tax Return in respect of any taxable year which has not since been
filed.

              (f) Based upon HealthAxis' knowledge, no federal, state, local or
foreign audits or other administrative proceedings or court proceedings
("Audits") exist with regard to any Taxes or Tax Returns of the Acquired
Companies and there has not been received any written notice that such an Audit
is pending or threatened with respect to any Taxes due from or with respect to
the Acquired Companies or any Tax Return filed by or with respect to the
Acquired Companies. No material issues have been raised in any examination by
any taxing authority with respect to the businesses and operations or the
Acquired Companies which (i) reasonably could be expected to result in an
adjustment to the liability for Taxes for such period examined or (ii), by
application of similar principles, reasonably could be expected to result in an
adjustment to the liability for Taxes for any other period not so examined.

              (g) None of the Acquired Companies is a party to any Tax
allocation or sharing agreement. None of the Acquired Companies (A) has been a
member of an affiliated group filing a consolidated federal income Tax Return
(other than a group the common parent of which was UICI or HAI) or (B) has any
liability for the Taxes of any other party (other than any of the Acquired
Companies) under Treasury Regulation Section 1.1502-6 (or any provision of
state, local or foreign law), as a transferee or successor, by contract or
otherwise.

         For purposes of this Agreement, (i) " Taxes" (including, with
correlative meaning, the term "Tax") shall mean all taxes, charges, fees,
levies, penalties or other assessments imposed by any federal, state, local or
foreign taxing authority, including, but not limited to, income, gross receipts,
excise, property, sales, transfer, franchise, payroll, withholding, social
security and other taxes, and shall include any interest, penalties or additions
attributable thereto, and (ii) " Tax Return" shall mean any return, report,
information return or other document (including any related or supporting
information) required to be prepared with respect to Taxes.

         3.7  Assets. Schedule 3.7 includes detailed lists of all Assets with a
current fair market value of not less than $100,000 of each of the Acquired
Companies which are reflected on the September 30, 1999 Balance Sheet, including
(a) Cash Assets, itemized by bank or other account, showing cost and market
value if different from cost; (b) Accounts Receivable, showing customer names,
individual invoice dates, individual invoice amounts and allowances for doubtful
accounts, or, in the case of earned but not billed receivables, customer names
and individual dates on which the receivables are billable; (c) other current
Assets, itemized by category and with appropriate explanation; (d) Tangible
Property, grouped as to type, showing cost, accumulated depreciation and net
book value; and (e) Software and Intangibles, showing cost or amount
capitalized, accumulated amortization and net book value. Each of the Acquired
Companies has good and valid title to all of its respective Assets which are
owned by it and has the right to transfer all rights, title and interest in such
Assets, free and clear of any Encumbrance, other than Encumbrances (a) for
taxes, assessments, levies, fees and other governmental and similar charges not
due and payable, mechanics' liens, or other "ordinary course" liens that do not
materially effect the value of the Assets; or (b) listed on Schedule 3.7.

                                       9
<PAGE>

         3.8  Obligations. Schedule 3.8 includes detailed lists of all material
Obligations of each of the Acquired Companies which are required by GAAP to be
reflected on the June 30, 2000 Balance Sheet, itemized by balance sheet account,
and with aggregate net balances equal to the balances on the June 30, 2000
Balance Sheet, including (a) accounts payable, (b) accrued expenses and
reserves, itemized by category and with appropriate explanation, (c) deferred
revenues, itemized by customer and time periods, and (d) other current and
long-term liabilities. None of the Acquired Companies has any material
Obligations other than (i) Obligations reflected on the June 30, 2000 Balance
Sheet, (ii) Obligations set forth in Schedule 3.17, (iii) Obligations under
Contracts of the type listed or not required to be listed on Schedule 3.19,
provided that as of June 30, 2000, no such Obligation consisted of or resulted
from a default under or violation of any such Contract, (iv) Obligations
incurred since June 30, 2000, in the ordinary course, consistent with past
practices, and not in breach of any of the representations and warranties made
in Section 3.11, and (v) Obligations not required by GAAP to be reflected on the
June 30, 2000 Balance Sheet. Except as described on Schedule 3.10, none of the
Obligations of any of the Acquired Companies are guaranteed by any Person.

         3.9  Operations Since June 30, 2000. Except as set forth on Schedule
3.9 or in the ordinary course of their respective businesses consistent with its
past practices, from June 30, 2000 to the date of this Agreement none of the
Acquired Companies has (i) created or assumed any Encumbrance upon any of its
business or Assets, (ii) incurred any Obligation, (iii) made any loan or advance
to any Person; (iv) assumed, guaranteed or otherwise become liable for any
Obligation of any Person; (v) committed for any capital expenditure; (vi)
purchased, leased, sold, abandoned or otherwise acquired or disposed of any
business or Assets; (vii) waived any right or canceled any debt or claim; (viii)
assumed or entered into any Contract other than this Agreement; or (ix)
increased, or authorized an increase in, the compensation or benefits paid or
provided to any of their directors, officers, employees, salesmen, agents or
representatives.

         3.10 Tangible Property. Each of the Acquired Companies has good and
valid title to all of its Tangible Property, free and clear of any Encumbrances
other than Encumbrances (a) for Taxes, assessments, levies, fees and other
governmental and similar charges not due and payable, mechanics' liens, or other
"ordinary course" liens that do not materially effect the value of the Tangible
Property; or (b) set forth in the June 30, 2000 Balance Sheet or Schedule 3.10.

         3.11 Software and Other Intangibles. Except for commercially available
Software, set forth on Schedule 3.11 is an accurate and complete list and
description of all Software and material Intangibles owned, marketed, licensed,
supported, maintained, used or under development by the Acquired Companies, and,
in the case of Software, a product description, the language in which it is
written and the type of hardware platform(s) on which it runs. Except as
explained on Schedule 3.11, each of the Acquired Companies has good and valid
title to, and has the full right to use, all of the Software and Intangibles
listed on Schedule 3.11, free and clear of any Encumbrance (except for use
restrictions contained in licensed commercially available Software). Except as
set forth in Schedule 3.11, all shrinkwrap and other commercially available
Software has been properly licensed and all related fees paid. To the knowledge
of HealthAxis, all application Software utilized in its business is year 2000
compliant. To the knowledge of HealthAxis, none of the Software or Intangibles
listed on Schedule 3.11, or their respective past or current uses, including the
preparation, distribution, marketing or licensing, has violated or infringed
upon, or is violating or infringing upon, any Software, technology, patent,
copyright, trade secret or other Intangible of any Person. To the knowledge of
HealthAxis, no Person is violating or infringing upon, or has violated or
infringed upon at any time, any of the Software or Intangibles listed on
Schedule 3.11. Except as set forth on Schedule 3.11, none of the Software or

                                       10
<PAGE>

Intangibles listed on Schedule 3.11 is owned by or registered in the name of any
current or former owner, shareholder, partner, director, executive, officer,
employee, salesman, agent, customer, representative or contractor of any of the
Acquired Companies or any of the HealthAxis Shareholders nor does any such
Person have any interest therein or right thereto, including the right to
royalty payments.

         3.12 Contracts. Schedule 3.12 is an accurate and complete list of all
of the following types of Contracts which involve either future Obligations of
$100,000 or more to which any of the Acquired Companies is a party or by which
any of the Acquired Companies is bound, or is otherwise material to any of the
Acquired Companies (collectively, the "Specified Contracts"), grouped into the
following categories: (a) customer, client or alliance partner Contracts; (b)
Contracts for the purchase or lease of Real Property or otherwise concerning
Real Property owned or used by any of the Acquired Companies; (c) loan
agreements, mortgages, notes, guarantees and other financing Contracts; (d)
Contracts for the purchase, lease and/or maintenance of computer equipment and
other equipment, Contracts for the purchase, license, lease and/or maintenance
of Software under which any of the Acquired Companies is the purchaser,
licensee, lessee or user, and other supplier Contracts; (e) employment,
consulting and sales representative Contracts (excluding Contracts which
constitute Employee Benefit Plans listed on Schedule 3.12, and excluding oral
Contracts with employees for "at will" employment); (f) Contracts under which
any rights in and/or ownership of any Software product, technology or other
Intangible of any of the Acquired Companies, or any prior version thereof, or
any part of the customer base, business or Assets of any of the Acquired
Companies, or any shares or other ownership interests in any of the Acquired
Companies (or any of their predecessors) was acquired; (g) Contracts pursuant to
which the Acquired Companies have agreed to indemnify or hold harmless any
Person (other than indemnifications or hold harmless covenants in the ordinary
course of business and consistent with past practice); and (h) other material
Contracts (excluding Contracts which constitute Insurance Policies listed on
Schedule 3.16 and excluding this Agreement and all other Contracts entered into
between any of the Acquired Companies and HAI, or among any of the Acquired
Companies, HAI and other parties in connection herewith). A description of each
oral Specified Contract is included on Schedule 3.12, and copies of each written
Specified Contract have been made available to HAI and Newco. Except as set
forth on Schedule 3.12, with respect to each of the Specified Contracts, none of
the Acquired Companies is in material default thereunder nor would be in
material default thereunder with the passage of time, the giving of notice, or
both. Except as set forth on Schedule 3.12, to the knowledge of HealthAxis, none
of the other parties to any Specified Contract is in material default thereunder
or would be in material default thereunder with the passage of time, the giving
of notice or both. Except as set forth on Schedule 3.12, none of the Acquired
Companies has given or received any notice of default or notice of termination
with respect to any Specified Contract, and to the knowledge of HealthAxis each
Specified Contract is in full force and effect in accordance with its terms.
Except as set forth on Schedule 3.12, there are no currently outstanding
proposals or offers submitted by any of the Acquired Companies to any customer,
prospect, supplier or other Person which, if accepted, would result in a legally
binding Contract of such company involving an amount or commitment exceeding
$100,000 in any single case or an aggregate amount or commitment exceeding
$500,000 in the aggregate.

         3.13 Employees and Independent Contractors. Schedule 3.13 is a list of
all of the employees with annual compensation in excess of $100,000 of the
Acquired Companies and (a) their titles or responsibilities; (b) their social
security numbers; (c) their dates of hire; (d) their current salaries or wages
and all bonuses, commissions and incentives paid at any time during the past
twelve months; (e) their last compensation changes and the dates on which such
changes were made; (f) any specific bonus, commission or incentive plans or
agreements for or with them; and (g) any outstanding loans or advances made to
them. Schedule 3.13 is a list of all sales representatives and material

                                       11
<PAGE>

independent contractors engaged by the Acquired Companies and their payment
arrangements (if not set forth in a Contract listed or described on Schedule
3.12). Except as limited by any employment Contracts listed on Schedule 3.12 and
except for any limitations of general application which may be imposed under
applicable employment Laws, each of the Acquired Companies has the right to
terminate the employment of each of its employees at will and to terminate the
engagement of any of its independent contractors without payment to such
employee or independent contractor other than for services rendered through
termination and without incurring any penalty or liability other than liability
for severance pay and benefits in accordance with such company's disclosed
severance pay policy and benefits due terminated employees. Neither the
Transactions, nor the termination of the employment of any employees of any of
the Acquired Companies prior to or following the consummation of the
Transactions could result in any of the Acquired Companies making or being
required to make any "excess parachute payment" as that term is defined in
Section 280G of the Code. To the knowledge of HealthAxis, each of the Acquired
Companies is in compliance in all material respects with all Laws respecting
employment practices. None of the Acquired Companies has ever been a party to or
bound by any union, collective bargaining or similar Contract, nor is any such
Contract currently in effect or being negotiated by or on behalf of any of the
Acquired Companies. Since January 1, 1998, none of the Acquired Companies has
experienced any labor problem that was or is material to it. Except as indicated
on Schedule 3.13, since January 1, 1999, to the knowledge of HealthAxis, no
employee of any of the Acquired Companies having an annual salary of $75,000 or
more has indicated an intention to terminate or has been terminated with respect
to his or her employment with such company.

         3.14 Employee Benefit Plans.

              (a) Schedule 3.14 sets forth a complete list of all (A) "employee
benefit plans" as defined in sections 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"); and (B) all retirement or deferred
compensation plans, incentive compensation plans, stock plans, unemployment
compensation plans, vacation pay, severance pay, bonus or benefit arrangement,
insurance or hospitalization program or any other fringe benefit arrangements
for any current or former employee, director, consultant or agent, whether
pursuant to contract, arrangement, custom or informal understanding, which does
not constitute an employee benefit plan as defined in section 3(3) of ERISA, and
(C) any employment agreement or consulting agreement, which Acquired Companies
or any trade or business, whether or not incorporated, that together with the
Acquired Companies would be deemed a "single employer" within the meaning of
Section 4001(b) of ERISA (a "HealthAxis ERISA Affiliate"), maintains, is a party
to, participates in or with respect to which has any liability or contingent
liability.

              (b) With respect to each HealthAxis Employee Benefit Plan, a
complete and correct copy of each of the following documents (if applicable) has
been provided or made available to HAI: (A) the most recent plan and related
trust documents, and all amendments thereto; (B) the most recent summary plan
description, and all related summaries of material modifications thereto; (C)
the most recent Form 5500 (including schedules and attachments); (D) the most
recent IRS determination letter or request therefor; and (E) the most recent
actuarial reports (including for purposes of Financial Accounting Standards
Board report no. 87, 106 and 112), if any; and there have been no material
changes in the financial condition in the respective plans from that stated in
the annual reports and actuarial reports supplied. In the case of any HealthAxis
Employee Benefit Plan which is not in written form, HAI has been supplied with
an accurate description of such HealthAxis Employee Benefit Plan as in effect on
the date hereof.

                                       12
<PAGE>

              (c) Except as set forth in Schedule 3.14, the HealthAxis Employee
Benefit Plans and their related trusts intended to qualify under Sections 401(a)
and 501(a) of the Code, respectively, have received favorable determination
letters from the Internal Revenue Service which cover all applicable law for
which the remedial amendment period (within the meaning of Section 401(b) of the
Code and applicable regulations) has expired; neither HealthAxis nor any of its
respective HealthAxis ERISA Affiliates is aware of any event or circumstance
that could reasonably be expected to result in the failure of such HealthAxis
Employee Benefit Plan or its related trust to be so qualified; and no event has
occurred which will or could give rise to disqualification of any such plan
under such sections or to a tax under section 511 of the Code.

              (d) Except as set forth in Schedule 3.14, the HealthAxis Employee
Benefit Plans have been maintained and administered in all material respects in
accordance with their terms and applicable laws, and no event has occurred which
will or could cause any such HealthAxis Employee Benefit Plan to fail to comply
with such requirements, except where the failure to comply would not have a
material adverse effect on the Acquired Companies on a consolidated basis and no
notice has been issued by any governmental authority questioning or challenging
such compliance.

              (e) Except as disclosed in Schedule 3.14, there are no pending
actions, claims or proceedings against or relating to any HealthAxis Employee
Benefit Plan other than routine benefit claims by persons entitled to benefits
thereunder. There are no investigations or audits of or relating to any
HealthAxis Employee Benefit Plan. HealthAxis has no knowledge of any facts which
could form the basis of any such investigation or audit.

              (f) Except as disclosed in Schedule 3.14, neither the execution
and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will (A) result in any payment becoming due to any employee
(current, former or retired) of HealthAxis, (B) increase any benefits under any
HealthAxis Employee Benefit Plan, or (C) result in the acceleration of the time
of payment of, vesting of or other rights with respect to any such benefits.

              (g) Actuarially adequate accruals for all obligations under the
HealthAxis Employee Benefit Plans are reflected in the financial statements of
HealthAxis and such obligations include a pro rata amount of the contributions
which would otherwise have been made in accordance with past practices and
applicable law for the plan years which include the Closing Date.

              (h) Except as described in Schedule 3.14, there have been no acts
or omissions by HealthAxis which have given rise to or may give rise to fines,
penalties, taxes or related charges under section 502 of ERISA or Chapters 43,
47 or 68 of the Code for which HealthAxis or any HealthAxis ERISA Affiliate may
be liable except where such fines, penalties or taxes would not have a material
adverse effect on the Acquired Companies on a consolidated basis.

              (i) Except as described in Schedule 3.14, none of the payments
payable under the HealthAxis Employee Benefit Plans as a result of the Merger
would, in the aggregate, constitute excess parachute payments (as defined in
section 280G of the Code (without regard to subsection (b)(4) thereof)).

              (j) No HealthAxis Employee Benefit Plan is subject to Title IV of
ERISA.

                                       13
<PAGE>

              (k) None of HealthAxis nor any HealthAxis ERISA Affiliate
contributes to, has contributed to, or has any liability or contingent liability
with respect to a multiemployer plan (as defined in section 3(37) of ERISA).

              (l) There has been no act or omission that would impair the
ability of HealthAxis and the HealthAxis ERISA Affiliates (or any successor
thereto) to unilaterally amend or terminate any HealthAxis Employee Benefit
Plan.

              (m) Except as described in Schedule 3.14, there are no
self-insured Employee Benefit Plans. With respect to each self-insured Employee
Benefit Plan, HealthAxis and/or its subsidiaries maintains a reserve of no less
than twenty-five percent (25%) of the aggregate claims paid with respect to the
most recently completed plan year.

              (n) Except as set forth in Schedule 3.14, each HealthAxis Employee
Benefit Plan is fully funded to the extent that a benefit has accrued thereunder
or that an account balance is maintained on behalf of an Employee
notwithstanding whether, under the terms of such Plan or as permitted by
applicable law, such Plan is not required to be funded. Except as set forth in
Schedule 3.14, each HealthAxis Employee Benefit Plan is fully funded to the
extent that a benefit has accrued thereunder or that an account balance is
maintained on behalf of an Employee notwithstanding whether, under the terms of
such Plan or as permitted by applicable law, such Plan is not required to be
funded.

         3.15 Labor Matters.

              (a) Except as set forth in Schedule 3.15, (A) none of the Acquired
Companies is a party to any labor or collective bargaining agreement and no
employees of the Acquired Companies are represented by any labor organization;
(B) within the preceding three years, there have been no representation or
certification proceedings, or petitions seeking a representation proceeding,
pending or, to the knowledge of HealthAxis, threatened in writing to be brought
or filed with the National Labor Relations Board or any other labor relations
tribunal or authority; and (C) within the preceding three years, to the
knowledge of HealthAxis, there have been no organizing activities involving the
Acquired Companies with respect to any group of employees of the Acquired
Companies.

              (b) There are no strikes, work stoppages, slowdowns, lockouts,
material arbitrations or material grievances or other material labor disputes
pending or threatened in writing against or involving the Acquired Companies.
There are no unfair labor practice charges, grievances or complaints pending or,
to the knowledge of HealthAxis, threatened in writing by or on behalf of any
employee or group of employees of the Acquired Companies. Each of the Acquired
Companies relations with its employees are currently on a good and normal basis.

              (c) Each of the Acquired Companies is in compliance with all laws,
regulations and orders relating to the employment of labor, including all such
laws, regulations and orders relating to wages, hours, Worker Adjustment
Retraining and Notification Act of 1988, as amended ("WARN Act"), collective
bargaining, discrimination, civil rights, safety and health, workers'
compensation and the collection and payment of withholding and/or social
security taxes and any similar tax, except where non-compliance would not have a
material adverse effect on the Acquired Companies taken as a whole.

                                       14
<PAGE>

              (d) Except as set forth in Schedule 3.15 and except for any
limitation of general application which may be imposed under applicable
employment laws, each of the Acquired Companies has the right to terminate the
employment of each of its employees at will and to terminate the engagement of
any of its independent contractors without payment to such employee or
independent contractor other than for services rendered through termination and
without incurring any penalty or liability other than for severance pay in
accordance with any severance pay policy of any of the Acquired Companies
disclosed to HAI.

              (e) Except as set forth in Schedule 3.15, since January 1, 1998,
no employee of any of the Acquired Companies having an annual salary of $100,000
or more has indicated an intention to terminate or has terminated his or her
employment with such company.

         3.16 Environmental Matters.

              (a) Except as set forth in Schedule 3.16:

                  (i)   The operations of each of the Acquired Companies have
been and, as of the Closing Date, will be, in material compliance with all
Environmental Laws, except for such noncompliance which would not individually
or in the aggregate have a Material Adverse Effect on HealthAxis;

                  (ii)  None of the Acquired Companies is subject to any
outstanding orders from, or agreements with, any Governmental Entity or other
person respecting (x) Environmental Laws, (y) Remedial Action or (z) any Release
or threatened Release of a Hazardous Material;

                  (iii) None of the Acquired Companies has received any written
communication alleging, with respect to any such party, the violation of or
potential liability under any Environmental Law;

                  (iv)  No judicial or administrative proceedings or
governmental investigations are pending or, to the knowledge of HealthAxis,
threatened against the Acquired Companies alleging the violation of or seeking
to impose liability pursuant to any Environmental Law; and

                  (v)   No environmental approvals, clearances or consents are
required under applicable law from any governmental entity or authority in order
to consummate the transactions contemplated herein.

              (b) This Section 3.16 sets forth the sole representations and
warranties of HealthAxis with respect to Environmental Laws.

         3.17 Material Suppliers. Except as set forth on Schedule 3.17, since
January 1, 1999, none of the material suppliers of the Acquired Companies has
given notice or otherwise indicated to such company that it will or intends to
terminate or not renew its Contract with such company before the scheduled
expiration date or otherwise terminate its relationship with such company. To
the knowledge of HealthAxis, the relationship of each of the Acquired Companies
with such material suppliers is currently on a good and normal basis and the
Transactions will not adversely affect these relations.

         3.18 Proceedings and Judgments. Except as disclosed on Schedule 3.18,
(a) no Proceeding is currently pending or, to the knowledge of HealthAxis,
threatened, nor has any Proceeding occurred at any time since January 1, 1998,

                                       15
<PAGE>

to which any of the Acquired Companies is or was a party, or by which any of the
Acquired Companies or any Assets or business of any of the Acquired Companies is
or was affected; (b) no Judgment is currently outstanding, nor has any Judgment
been outstanding at any time since January 1, 1998, against any of the Acquired
Companies, or by which any of the Acquired Companies or any Assets or business
of any of the Acquired Companies is or was affected; and (c) no material breach
of contract, breach of warranty, tort, negligence, infringement, product
liability, discrimination, wrongful discharge or other claim of any nature has
been asserted in any proceeding or, to the knowledge of HealthAxis, threatened
in writing by or against any of the Acquired Companies at any time since January
1, 1998, and, to the knowledge of HealthAxis, there is no basis for any such
claim.

         3.19 Insurance. Schedule 3.19 is an accurate and complete list of all
Insurance Policies (excluding Insurance Policies that constitute HealthAxis'
Employee Benefit Plans described on Schedule 3.14) owned or maintained by any of
the Acquired Companies and/or any of their predecessors at any time since
January 1, 1998. Except as indicated on Schedule 3.19, all such Insurance
Policies are or were on an "occurrence" rather than a "claims made" basis. None
of the Acquired Companies has received notice of cancellation with respect to
any such current Insurance Policy, and, to the knowledge of HealthAxis, there is
no basis for the insurer thereunder to terminate any such current Insurance
Policy. Accurate and complete copies of all Insurance Policies described on
Schedule 3.19 have been made available to HAI. Each such Insurance Policy is or
was in full force and effect during the period(s) of coverage indicated on
Schedule 3.19. There are no claims that are pending under any of the Insurance
Policies described in this section.

         3.20 Questionable Payments. None of the Acquired Companies or, to the
knowledge of HealthAxis, any of the HealthAxis Shareholders, nor any current or
former partners, owners, HealthAxis Shareholders, members, directors,
executives, officers, representatives, agents or employees of any of the
Acquired Companies (when acting in such capacity or otherwise on behalf of any
of the Acquired Companies or any of their predecessors), (a) has used or is
using any corporate funds (i) for any illegal contributions, gifts,
entertainment or other unlawful expenses relating to political activity or, (ii)
to the knowledge of HealthAxis, in violation of customer policies and/or rules;
(b) has used or is using any corporate funds for any direct or indirect unlawful
payments to any foreign or domestic government officials or employees; (c) has
established or maintained, or is maintaining, any unlawful or unrecorded fund of
corporate monies or other properties; (d) has made at any time since January 1,
1998, any false or fictitious entries on the books and records of any of the
Acquired Companies; (e) has made any bribe, unlawful rebate, payoff, influence
payment, kickback or other unlawful payment of any nature using corporate funds
or otherwise on behalf of any of the Acquired Companies; or (f) made any
material favor or gift that is not deductible for federal income tax purposes
using corporate funds or otherwise on behalf of any of the Acquired Companies.

         3.21 Related Party Transactions. To the knowledge of HealthAxis, except
as described on Schedule 3.21 and except for any Contracts listed on Schedule
3.17, there are no real estate leases, personal property leases, loans,
guarantees, Contracts, transactions, understandings or other arrangements of any
nature between or among any of the Acquired Companies and any current or former
partner, owner, shareholder, member, director, officer or controlling Person of
any of the Acquired Companies, other than UICI, HAI or its subsidiaries.

         3.22 Liens. Except as set forth in Schedule 3.22, none of the Acquired
Companies has granted, created or suffered to exist with respect to any of its
assets, any mortgage, pledge, charge, or hypothecation, collateral assignment,

                                       16
<PAGE>

lien (statutory or otherwise), encumbrances or security agreement of any kind or
nature whatsoever.

         3.23 Vote Required. The affirmative votes of the holders of a majority
of the outstanding shares of HealthAxis Common Stock and a majority of each
series of the HealthAxis Convertible Preferred Stock are the only votes of the
holder of any class or series of HealthAxis' capital stock necessary (under
applicable law) to approve the Merger and the Transactions.

         3.24 Brokerage Fees. Except as set forth on Schedule 3.24, no Person
acting on behalf of any of the Acquired Companies or any of the HealthAxis
Shareholders is or shall be entitled to any brokerage fee, finder's fee or
investment banking fee in connection with the Transactions.

         3.25 Investment Company. HealthAxis is not currently and upon
consummation of the Merger, HealthAxis will not be an investment company within
the meaning of the Investment Company Act of 1940, as amended.

         3.26 Full Disclosure. No representation or warranty made by HealthAxis
in this Agreement or pursuant hereto (a) contains any untrue statement of
material fact; or (b) omits to state any material fact that is necessary to make
the statements made, in light of the circumstances under which they are made,
not false or misleading in any respect. The copies of documents attached as
Schedules to this Agreement or otherwise delivered to HAI and Newco in
connection with the Transactions, are accurate and complete, and are not missing
any amendments, modifications, correspondence or other related papers which
would be material to HAI's or Newco's understanding thereof in any respect.

         3.27 Compliance with Law. The operations of each of the Acquired
Companies, the conduct of the business of each of the Acquired Companies, as and
where such business has been or presently is conducted, and the ownership,
possession and use of the Assets of each of the Acquired Companies have complied
and currently do comply with all applicable Laws and the articles and bylaws of
each entity except where the failure to comply will not have a material adverse
effect. Except as set forth on Schedule 3.27, each of the Acquired Companies has
obtained and holds all Permits required for the lawful operation of its business
or businesses as and where such business or businesses are presently conducted.
All Permits held by the Acquired Companies are listed on Schedule 3.27, and
copies of such Permits have been made available to HAI and Newco.

         3.28 Absence of Certain Changes. Except as disclosed in HAI SEC
Documents, since June 30, 2000, there has not been any material adverse change
as to HealthAxis and its subsidiaries taken as a whole.

                   SECTION 4: REPRESENTATIONS OF HAI AND NEWCO

         HAI and Newco, jointly and severally, represent and warrant to
HealthAxis and the HealthAxis Shareholders as of the date of this Agreement, and
covenant with HealthAxis and the HealthAxis Shareholders, as follows:

         4.1  Organization. HAI and Newco are each a corporation that is duly
organized and subsisting under the Laws of the Commonwealth of Pennsylvania. HAI
and Newco each possess the full corporate power and authority to own its Assets,

                                       17
<PAGE>

conduct its business as and where such business is presently conducted, and
enter into this Agreement and the Plan. Newco is a wholly owned subsidiary of
HAI. Except as set forth on Schedule 4.1 hereto, HAI has no other subsidiaries.
Each of the Acquiring Companies is duly qualified or registered to do business
in each jurisdiction where the ownership or leasing of properties or assets by
it, or the operation of its business, requires such qualification, except where
the failure to qualify or register will not have a material adverse effect on
the business, financial condition or results of operations of HAI on a
consolidated basis. Accurate and complete copies of articles or certificates of
incorporation and bylaws, (or similar organizational documents), each as amended
to date, and all Contracts relating to the acquisition of each of the Acquiring
Companies (or their affiliates or predecessors) have been made available to
HealthAxis. Newco has not engaged in any activities other than in connection
with its organization and this Agreement and has no liabilities.

         4.2  Effect of Agreement. Each of HAI's and Newco's execution, delivery
and performance of this Agreement, and its consummation of the Transactions, (a)
subject to approval by HAI shareholders ("HAI Shareholders") of HAI's issuances
of the HAI Common Stock in the Merger as required by the NASD and an amendment
to its articles of incorporation to increase its authorized shares, have been
duly authorized by all necessary corporate actions by their respective boards of
directors, and HAI Shareholders; (b) do not constitute a violation of or default
under their respective charters or bylaws; (c) do not constitute a default or
breach (immediately or after the giving of notice, passage of time or both)
under any Contract to which HAI or Newco is a party or by which HAI or Newco is
bound; (d) do not constitute a violation of any Law or Judgment that is
applicable to it or to their respective businesses or Assets, or to the
Transactions; and (e) except as stated on Schedule 4.2, do not require the
Consent of any Person. This Agreement constitutes the valid and legally binding
agreement of each of HAI and Newco, enforceable against each of them in
accordance with its terms, except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or
similar laws (including insurance related laws and regulation) relating to, or
affecting generally the enforcement of creditors' rights and remedies or by
other equitable principles of general application.

         4.3  Capital Stock and Ownership. The authorized capital stock of HAI
is 50,000,000 shares of HAI Common Stock, of which 13,097,618 shares were issued
and outstanding as of June 30, 2000, 20,000,000 shares of Class A Common Stock
par value $.10 per share, none of which are outstanding, and 20,000,000 shares
of preferred stock, $1.00 par value per share, none of which are outstanding.
All of the issued and outstanding shares of capital stock of HAI have been duly
authorized and validly issued, and are fully paid and nonassessable, with no
liability or preemptive rights attaching to the ownership thereof. All issuances
and grants of all outstanding options, warrants and all offerings, sales and
issuances by HAI of any shares of capital stock complied in all material
respects with all applicable federal and state securities Laws, all applicable
state corporation Laws and all requirements set forth in applicable Contracts.
Except as provided on Schedule 4.3, there are no outstanding options, puts,
calls, warrants, subscriptions, stock appreciation rights, phantom stock, or
other Contracts or Contract Rights relating to the offering, sale, issuance,
redemption or disposition of any shares of capital stock, or other securities of
HAI.

         4.4  Financial and Corporate Records. The books and records of each of
the Acquiring Companies are and have been properly prepared and maintained in
form and substance adequate for preparing audited financial statements in
accordance with GAAP, and such books and records fairly and accurately reflect
in all material respects all of the Assets and Obligations of each of the
Acquiring Companies and all Contracts and other transactions to which each of
the Acquiring Companies is or was a party or by which each of the Acquiring
Companies or the business or Assets of each of the Acquiring Companies is or was
affected. Accurate and complete copies of the contents of the minute books and

                                       18
<PAGE>

stock books of each of the Acquiring Companies have been made available to
HealthAxis. Such minute books and stock books include (a) minutes of all
meetings of the HAI Shareholders, board of directors and any committees of the
board of directors at which any material action was taken, which minutes
accurately record all material actions taken at such meetings, (b) accurate and
complete written statements of all actions taken by the HAI Shareholders, board
of directors and any committees of the board of directors without a meeting, and
(c) accurate and complete records of the subscription, issuance, transfer and
cancellation of all shares of capital stock, and all other securities since the
date of incorporation or formation.

         4.5  Financial Statements; No Material Undisclosed Liabilities. The
consolidated financial statements of HAI for the year ended December 31, 1999
and for the six months ended June 30, 2000 have been prepared in accordance with
GAAP applied on a consistent basis during the periods involved (except as
indicated in the notes thereto) and, except as set forth on Schedule 4.5, fairly
present, in accordance with the applicable requirements of GAAP, the
consolidated financial position of its subsidiaries, as of the dates thereof and
the consolidated results of operations and cash flows for the periods then ended
(subject, in the case of unaudited statement, to normal year-end audit
adjustments). HAI has no subsidiaries which are not consolidated for accounting
purposes. Except as reflected in Schedule 4.5, since June 30, 2000, none of the
Acquiring Companies has incurred any liabilities, absolute, accrued, contingent
or otherwise, whether due or to become due (and there is no basis for such
liabilities) except: (i) liabilities arising in the ordinary course of business
consistent with past practice, which individually or in the aggregate would not
have a material adverse effect on HAI; or (ii) other liabilities which,
individually or in the aggregate, together with those liabilities referenced in
subparagraph (i), would not have a material adverse effect on HAI.

         4.6  Taxes. Except as set forth in Schedule 4.6:

              (a) The Acquiring Companies have (x) duly and timely filed (or
there have been filed on their behalf) with the appropriate taxing authorities
all Tax Returns required to be filed by them, and all such Tax Returns are true,
correct and complete in all material respects and (y) timely paid or there have
been paid on their behalf all Taxes shown to be due on such Returns.

              (b) The Acquiring Companies have properly accrued on their
respective financial statements all Taxes due for which each of the respective
Acquiring Companies may be liable, whether or not shown on any Tax Return as
being due (including by reason of being a member of an affiliated group or as a
transferee of the assets of, or successor to, any corporation, person,
association, partnership, joint venture or other entity). The Acquiring
Companies have established (and until the Closing Date shall continue to
establish and maintain) on its books and records reserves that are adequate for
the payment of all Taxes not yet due and payable.

              (c) The Acquiring Companies have complied in all material respects
with all applicable laws, rules and regulations relating to the payment and
withholding of Taxes, including Taxes required to have been withheld in
connection with amounts paid or owing to any employee, independent contractor,
creditor, stockholder, or other third party and sales, gross receipts and use
taxes, and has, within the time and manner prescribed by law, withheld and paid
over to the proper governmental authorities all amounts required to be withheld
and paid over under all applicable laws, or such amounts are held in separate
bank accounts for such purpose.

                                       19
<PAGE>

              (d) There are no Liens for Taxes upon the assets or properties of
the Acquiring Companies except for statutory liens for current Taxes not yet
due.

              (e) The Acquiring Companies have not requested any extension of
time nor has any such extension been requested on its behalf within which to
file any Tax Return in respect of any taxable year which has not since been
filed.

              (f) Based upon HAI's knowledge, no Audits exist with regard to any
Taxes or Tax Returns of the Acquiring Companies and there has not been received
any written notice that such an Audit is pending or threatened with respect to
any Taxes due from or with respect to the Acquiring Companies or any Tax Return
filed by or with respect to the Acquiring Companies. No material issues have
been raised in any examination by any taxing authority with respect to the
businesses and operations or the Acquiring Companies which (i) reasonably could
be expected to result in an adjustment to the liability for Taxes for such
period examined or (ii), by application of similar principles, reasonably could
be expected to result in an adjustment to the liability for Taxes for any other
period not so examined.

              (g) None of the Acquiring Companies is a party to any Tax
allocation or sharing agreement. None of the Acquiring Companies (A) has been a
member of an affiliated group filing a consolidated federal income Tax Return
(other than a group the common parent of which was HAI) or (B) has any liability
for the Taxes of any other party (other than any of the Acquiring Companies)
under Treasury Regulation Section 1.1502-6 (or any provision of state, local or
foreign law), as a transferee or successor, by contract or otherwise.

         4.7  SEC Filings. Except as stated on Schedule 4.7, HAI has timely
filed all reports, proxy statements, forms and other documents required to be
filed with the SEC since January 1, 1996 and prior to the date of this Agreement
("HAI SEC Documents"). As of their respective dates, HAI SEC Documents complied
in all material respects with the requirements of the Securities Act of 1933, as
amended (the "Securities Act"), or the Exchange Act, as the case may be, and the
rules and regulations of the SEC promulgated thereunder applicable to such HAI
SEC Documents. As of their respective dates, the HAI SEC Documents (including
all exhibits and schedules thereto and documents incorporated by reference
therein) did not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

         4.8  Assets. Schedule 4.8 includes detailed lists of all Assets a
current fair market value of not less than $100,000 of each of the Acquiring
Companies which are reflected on the June 30, 2000 Balance Sheet, including (a)
Cash Assets, itemized by bank or other account, showing cost and market value if
different from cost; (b) Accounts Receivable, showing customer names, individual
invoice dates, individual invoice amounts and allowances for doubtful accounts,
or, in the case of earned but not billed receivables, customer names and
individual dates on which the receivables are billable; (c) other current
Assets, itemized by category and with appropriate explanation; (d) Tangible
Property, grouped as to type, showing cost, accumulated depreciation and net
book value; and (e) Software and Intangibles, showing cost or amount
capitalized, accumulated amortization and net book value. Each of the Acquiring
Companies has good and valid title to all of its respective Assets which are
owned by it and has the right to transfer all rights, title and interest in such
Assets, free and clear of any Encumbrance, other than Encumbrances (a) for
Taxes, assessments, levies, fees and other governmental and similar charges not

                                       20
<PAGE>

due and payable, mechanics' liens, or other "ordinary course" liens that do not
materially effect the value of the Assets; or (b) listed on Schedule 4.8.

         4.9  Obligations. Schedule 4.9 includes detailed lists of all material
Obligations of each of the Acquiring Companies which are required by GAAP to be
reflected on the June 30, 2000 Balance Sheet, itemized by balance sheet account,
and with aggregate net balances equal to the balances on the June 30, 2000
Balance Sheet, including (a) accounts payable, (b) accrued expenses and
reserves, itemized by category and with appropriate explanation, (c) deferred
revenues, itemized by customer and time periods, and (d) other current and
long-term liabilities. None of the Acquiring Companies has any material
Obligations other than (i) Obligations reflected on the June 30, 2000 Balance
Sheet, (ii) Obligations set forth in Schedule 4.11, provided that as of June 30,
2000, no such Obligation consisted of or resulted from a default under or
violation of any such Contract, (iii) Obligations incurred since June 30, 2000,
in the ordinary course, consistent with past practices, and not in breach of any
of the representations and warranties made in Section 4.12, and (iv) Obligations
not required by GAAP to be reflected on the June 30, 2000 Balance Sheet. Except
as described on Schedule 4.9, none of the Obligations of any of the Acquiring
Companies are guaranteed by any Person.

         4.10 Operations Since June 30, 2000. Except as disclosed in the HAI SEC
Documents, as set forth on Schedule 4.10 or in the ordinary course of their
respective businesses consistent with its past practices, from June 30, 2000 to
the date of this Agreement none of the Acquiring Companies has (i) created or
assumed any Encumbrance upon any of its business or Assets, (ii) incurred any
Obligation, (iii) made any loan or advance to any Person; (iv) assumed,
guaranteed or otherwise become liable for any Obligation of any Person; (v)
committed for any capital expenditure; (vi) purchased, leased, sold, abandoned
or otherwise acquired or disposed of any business or Assets; (vii) waived any
right or canceled any debt or claim; (viii) assumed or entered into any Contract
other than this Agreement; or (ix) increased, or authorized an increase in, the
compensation or benefits paid or provided to any of their directors, officers,
employees, salesmen, agents or representatives.

         4.11 Tangible Property. Each of the Acquiring Companies has good and
valid title to all of its Tangible Property, free and clear of any Encumbrances
other than Encumbrances (a) for taxes, assessments, levies, fees and other
governmental and similar charges not due and payable, mechanics' liens, or other
"ordinary course" liens that do not materially effect the value of the Tangible
Property; or (b) set forth in the June 30, 2000 Balance Sheet or Schedule 4.11.

         4.12 Software and Other Intangibles. Except for commercially available
Software, set forth on Schedule 4.12 is an accurate and complete list and
description of all Software and material Intangibles owned, marketed, licensed,
supported, maintained, used or under development by the Acquiring Companies,
and, in the case of Software, a product description, the language in which it is
written and the type of hardware platform(s) on which it runs. Except as
explained on Schedule 4.12, each of the Acquiring Companies has good and valid
title to, and has the full right to use, all of the Software and Intangibles
listed on Schedule 4.12, free and clear of any Encumbrance (except for use
restrictions contained in licensed commercially available Software). Except as
set forth in Schedule 4.12, all shrinkwrap and other commercially available
Software has been properly licensed and all related fees paid. To the knowledge
of HAI, all application Software utilized in its business is year 2000
compliant. To the knowledge of HAI, none of the Software or Intangibles listed
on Schedule 4.12, or their respective past or current uses, including the
preparation, distribution, marketing or licensing, has violated or infringed
upon, or is violating or infringing upon, any Software, technology, patent,
copyright, trade secret or other Intangible of any Person. To the knowledge of
HAI, no Person is violating or infringing upon, or has violated or infringed
upon at any time, any of the Software or Intangibles listed on Schedule 4.11.

                                       21
<PAGE>

Except as set forth on Schedule 4.12, none of the Software or Intangibles listed
on Schedule 4.11 is owned by or registered in the name of any current or former
owner, shareholder, partner, director, executive, officer, employee, salesman,
agent, customer, representative or contractor of any of the Acquiring Companies
or any of the HAI Shareholders nor does any such Person have any interest
therein or right thereto, including the right to royalty payments.

         4.13 Contracts. Schedule 4.13 is an accurate and complete list of all
of the following types of Contracts which involve either future Obligations of
$100,000 or more to which any of the Acquiring Companies is a party or by which
any of the Acquiring Companies is bound, or is otherwise material to any of the
Acquiring Companies (collectively, the "Specified Contracts"), grouped into the
following categories: (a) customer, client or alliance partner Contracts; (b)
Contracts for the purchase or lease of Real Property or otherwise concerning
Real Property owned or used by any of the Acquiring Companies; (c) loan
agreements, mortgages, notes, guarantees and other financing Contracts; (d)
Contracts for the purchase, lease and/or maintenance of computer equipment and
other equipment, Contracts for the purchase, license, lease and/or maintenance
of Software under which any of the Acquiring Companies is the purchaser,
licensee, lessee or user, and other supplier Contracts; (e) employment,
consulting and sales representative Contracts (excluding Contracts which
constitute Employee Benefit Plans listed on Schedule 4.15, and excluding oral
Contracts with employees for "at will" employment); (f) Contracts under which
any rights in and/or ownership of any Software product, technology or other
Intangible of any of the Acquiring Companies, or any prior version thereof, or
any part of the customer base, business or Assets of any of the Acquiring
Companies, or any shares or other ownership interests in any of the Acquiring
Companies (or any of their predecessors) was Acquiring; and (g) other material
Contracts (excluding Contracts which constitute Insurance Policies listed on
Schedule 4.22 and excluding this Agreement and all other Contracts entered into
between any of the Acquiring Companies and HealthAxis, or among any of the
Acquiring Companies, HealthAxis and other parties in connection herewith). A
description of each oral Specified Contract is included on Schedule 4.13, and
copies of each written Specified Contract have been made available to
HealthAxis. Except as set forth on Schedule 4.13, with respect to each of the
Specified Contracts, none of the Acquiring Companies is in material default
thereunder nor would be in material default thereunder with the passage of time,
the giving of notice, or both. Except as set forth on Schedule 4.13, to the
knowledge of HAI, none of the other parties to any Specified Contract is in
material default thereunder or would be in material default thereunder with the
passage of time, the giving of notice or both. Except as set forth on Schedule
4.13, none of the Acquiring Companies has given or received any notice of
default or notice of termination with respect to any Specified Contract, and to
the knowledge of HAI each Specified Contract is in full force and effect in
accordance with its terms. Except as set forth on Schedule 4.13, there are no
currently outstanding proposals or offers submitted by any of the Acquiring
Companies to any customer, prospect, supplier or other Person which, if
accepted, would result in a legally binding Contract of such company involving
an amount or commitment exceeding $100,000 in any single case or an aggregate
amount or commitment exceeding $500,000 in the aggregate.

         4.14 Employees and Independent Contractors. Schedule 4.14 is a list of
all of the employees with annual compensation in excess of $100,000 of the
Acquiring Companies and (a) their titles or responsibilities; (b) their social
security numbers; (c) their dates of hire; (d) their current salaries or wages
and all bonuses, commissions and incentives paid at any time during the past
twelve months; (e) their last compensation changes and the dates on which such
changes were made; (f) any specific bonus, commission or incentive plans or
agreements for or with them; and (g) any outstanding loans or advances made to
them. Schedule 4.14 is a list of all sales representatives and material

                                       22
<PAGE>

independent contractors engaged by the Acquiring Companies and their payment
arrangements (if not set forth in a Contract listed or described on Schedule
4.13). Except as limited by any employment Contracts listed on Schedule 4.13 and
except for any limitations of general application which may be imposed under
applicable employment Laws, each of the Acquiring Companies has the right to
terminate the employment of each of its employees at will and to terminate the
engagement of any of its independent contractors without payment to such
employee or independent contractor other than for services rendered through
termination and without incurring any penalty or liability other than liability
for severance pay and benefits in accordance with such company's disclosed
severance pay policy and benefits due terminated employees. Neither the
Transactions, nor the termination of the employment of any employees of any of
the Acquiring Companies prior to or following the consummation of the
Transactions could result in any of the Acquiring Companies making or being
required to make any "excess parachute payment" as that term is defined in
Section 280G of the Code. To the knowledge of HAI, each of the Acquiring
Companies is in compliance in all material respects with all Laws respecting
employment practices. None of the Acquiring Companies has ever been a party to
or bound by any union, collective bargaining or similar Contract, nor is any
such Contract currently in effect or being negotiated by or on behalf of any of
the Acquiring Companies. Since January 1, 1998, none of the Acquiring Companies
has experienced any labor problem that was or is material to it. Except as
indicated on Schedule 4.14, since January 1, 1999, to the knowledge of HAI, no
employee of any of the Acquiring Companies having an annual salary of $75,000 or
more has indicated an intention to terminate or has been terminated with respect
to his or her employment with such company.

         4.15 Employee Benefit Plans.

              (a) Schedule 4.15 sets forth a complete list of all (A) "employee
benefit plans" as defined in sections 3(3) of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"); and (B) all retirement or deferred
compensation plans, incentive compensation plans, stock plans, unemployment
compensation plan, vacation pay, severance pay, bonus or benefit arrangement,
insurance or hospitalization program or any other fringe benefit arrangements
for any current or former employee, director, consultant or agent, whether
pursuant to contract, arrangement, custom or informal understanding, which does
not constitute an employee benefit plan as defined in section 3(3) of ERISA, and
(C) any employment agreement or consulting agreement, which Acquiring Companies
or any trade or business, whether or not incorporated, that together with the
Acquiring Companies would be deemed a "single employer" within the meaning of
Section 4001(b) of ERISA (an "HAI ERISA Affiliate"), maintains, is a party to,
participates in or with respect to which has any liability or contingent
liability.

              (b) With respect to each HAI Employee Benefit Plan, a complete and
correct copy of each of the following documents (if applicable) has been
provided or made available to HealthAxis: (A) the most recent plan and related
trust documents, and all amendments thereto; (B) the most recent summary plan
description, and all related summaries of material modifications thereto; (C)
the most recent Form 5500 (including schedules and attachments); (D) the most
recent IRS determination letter or request therefor; and (E) the most recent
actuarial reports (including for purposes of Financial Accounting Standards
Board report no. 87, 106 and 112), if any; and there have been no material
changes in the financial condition in the respective plans from that stated in
the annual reports and actuarial reports supplied. In the case of any HAI
Employee Benefit Plan which is not in written form, HealthAxis has been supplied
with an accurate description of such HAI Employee Benefit Plan as in effect on
the date hereof.

                                       23
<PAGE>

              (c) Except as set forth in Schedule 4.15, the HAI Employee Benefit
Plans and their related trusts intended to qualify under Sections 401(a) and
501(a) of the Code, respectively, have received favorable determination letters
from the Internal Revenue Service which cover all applicable law for which the
remedial amendment period (within the meaning of Section 401(b) of the Code and
applicable regulations) has expired; neither HAI nor any of its respective HAI
ERISA Affiliates is aware of any event or circumstance that could reasonably be
expected to result in the failure of such HAI Employee Benefit Plan or its
related trust to be so qualified; and no event has occurred which will or could
give rise to disqualification of any such plan under such sections or to a tax
under section 511 of the Code.

              (d) Except as set forth in Schedule 4.15, the HAI Employee Benefit
Plans have been maintained and administered in all respects in accordance with
their terms and applicable laws, and no event has occurred which will or could
cause any such HAI Employee Benefit Plan to fail to comply with such
requirements and no notice has been issued by any governmental authority
questioning or challenging such compliance.

              (e) Except as disclosed in Schedule 4.15, there are no pending or,
to the knowledge of HAI, threatened actions, claims or proceedings against or
relating to any HAI Employee Benefit Plan other than routine benefit claims by
persons entitled to benefits thereunder. There are no investigations or audits
of or relating to any HAI Employee Benefit Plan. HAI has no knowledge of any
facts which could form the basis of any such investigation or audit.

              (f) Except as disclosed in Schedule 4.15, neither the execution
and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will (A) result in any payment becoming due to any employee
(current, former or retired) of HAI, (B) increase any benefits under any HAI
Employee Benefit Plan, or (C) result in the acceleration of the time of payment
of, vesting of or other rights with respect to any such benefits.

              (g) HAI has no knowledge of any oral or written statement made by
or on behalf of HAI or an HAI ERISA Affiliate regarding any HAI Employee Benefit
Plan that was not in accordance with such Employee Benefit Plan.

              (h) Actuarially adequate accruals for all obligations under the
HAI Employee Benefit Plans are reflected in the financial statements of HAI and
such obligations include a pro rata amount of the contributions which would
otherwise have been made in accordance with past practices and applicable law
for the plan years which include the Closing Date.

              (i) Except as described in Schedule 3.14, there have been no acts
or omissions by HAI which have given rise to or may give rise to fines,
penalties, taxes or related charges under section 502 of ERISA or Chapters 43,
47 or 68 of the Code for which HAI or any HAI ERISA Affiliate may be liable.

              (j) Except as described in Schedule 3.14, none of the payments
payable under the HAI Employee Benefit Plans as a result of the Merger would, in
the aggregate, constitute excess parachute payments (as defined in section 280G
of the Code (without regard to subsection (b)(4) thereof)).

              (k) No HAI Employee Benefit Plan is subject to Title IV of ERISA.

                                       24
<PAGE>

              (l) None of HAI nor any HAI ERISA Affiliate contributes to, has
contributed to, or has any liability or contingent liability with respect to a
multiemployer plan (as defined in section 3(37) of ERISA).

              (m) There has been no act or omission that would impair the
ability of HAI and the HAI ERISA Affiliates (or any successor thereto) to
unilaterally amend or terminate any HAI Employee Benefit Plan.

              (n) Except as described in Schedule 4.15, there are no
self-insured Employee Benefit Plans. With respect to each self-insured Employee
Benefit Plan, HAI and/or its subsidiaries maintains a reserve of no less than
twenty-five percent (25%) of the aggregate claims paid with respect to the most
recently completed plan year.

              (o) Except as set forth in Schedule 4.15, each HAI Employee
Benefit Plan is fully funded to the extent that a benefit has accrued thereunder
or that an account balance is maintained on behalf of an Employee
notwithstanding whether, under the terms of such Plan or as permitted by
applicable law, such Plan is not required to be funded. Except as set forth in
Schedule 4.15, each HAI Employee Benefit Plan is fully funded to the extent that
a benefit has accrued thereunder or that an account balance is maintained on
behalf of an Employee notwithstanding whether, under the terms of such Plan or
as permitted by applicable law, such Plan is not required to be funded.

         4.16 Labor Matters.

              (a) Except as set forth in Schedule 4.16, (A) none of the
Acquiring Companies is a party to any labor or collective bargaining agreement
and no employees of the Acquiring Companies are represented by any labor
organization; (B) within the preceding three years, there have been no
representation or certification proceedings, or petitions seeking a
representation proceeding, pending or, to the knowledge of HAI, threatened in
writing to be brought or filed with the National Labor Relations Board or any
other labor relations tribunal or authority; and (C) within the preceding three
years, to the knowledge of HAI, there have been no organizing activities
involving the Acquiring Companies with respect to any group of employees of the
Acquiring Companies.

              (b) There are no strikes, work stoppages, slowdowns, lockouts,
material arbitrations or material grievances or other material labor disputes
pending or threatened in writing against or involving the Acquiring Companies.
There are no unfair labor practice charges, grievances or complaints pending or,
to the knowledge of HAI, threatened in writing by or on behalf of any employee
or group of employees of the Acquiring Companies. Each of the Acquiring
Companies relations with its employees are currently on a good and normal basis.

              (c) Each of the Acquiring Companies is in compliance with all
laws, regulations and orders relating to the employment of labor, including all
such laws, regulations and orders relating to wages, hours, Worker Adjustment
Retraining and Notification Act of 1988, as amended (" WARN Act"), collective
bargaining, discrimination, civil rights, safety and health, workers'
compensation and the collection and payment of withholding and/or social
security taxes and any similar tax, except where non compliance would not
individually or in the aggregate adversely affect the Acquiring Companies taken
as a whole in any material respect.

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<PAGE>

              (d) Except as set forth in Schedule 4.16 and except for any
limitation of general application which may be imposed under applicable
employment laws, each of the Acquiring Companies has the right to terminate the
employment of each of its employees at will and to terminate the engagement of
any of its independent contractors without payment to such employee or
independent contractor other than for services rendered through termination and
without incurring any penalty or liability other than for severance pay in
accordance with any severance pay policy of any of the Acquiring Companies
disclosed to HealthAxis

              (e) Except as set forth in Schedule 4.16, since January 1, 1998,
no employee of any of the Acquiring Companies having an annual salary of
$100,000 or more has indicated an intention to terminate or has terminated his
or her employment with such company.

         4.17 Environmental Matters.

              (a) Except as set forth in Schedule 4.17:

                  (i)   The operations of each of the Acquiring Companies have
been and, as of the Closing Date, will be, in material compliance with all
Environmental Laws, except for such noncompliance which would not individually
or in the aggregate have a material adverse effect on HAI;

                  (ii)  None of the Acquiring Companies is subject to any
outstanding orders from, or agreements with, any Governmental Entity or other
person respecting (x) Environmental Laws, (y) Remedial Action or (z) any Release
or threatened Release of a Hazardous Material;

                  (iii) None of the Acquiring Companies has received any written
communication alleging, with respect to any such party, the violation of or
potential liability under any Environmental Law;

                  (iv)  No judicial or administrative proceedings or
governmental investigations are pending or, to the knowledge of HAI, threatened
against the Acquiring Companies alleging the violation of or seeking to impose
liability pursuant to any Environmental Law; and

                  (v)   No environmental approvals, clearances or consents are
required under applicable law from any governmental entity or authority in order
to consummate the transactions contemplated herein.

              (b) This Section 4.17 sets forth the sole representations and
warranties of HAI with respect to Environmental Laws.

         4.18 Absence of Changes. Except as disclosed in HAI SEC Documents,
since June 30, 2000, there has not been a material adverse change as to HAI and
its subsidiaries taken as a whole.

         4.19 Authorization for HAI Common Stock. HAI will take all necessary
action prior to the Closing Date to permit it to issue the number of shares of
HAI Common Stock required to be issued pursuant to this Agreement and the Plan,
including amending its Articles of Incorporation to increase the number of
authorized shares of common stock. All shares of HAI Common Stock issued
pursuant to this Agreement and the Plan will, when issued, be validly issued,
fully paid and nonassessable and no Person will have any preemptive right of

                                       26
<PAGE>

subscription or purchase in respect thereof. All shares of HAI Common Stock
will, when issued, be registered under the Securities Act and the Exchange Act
and registered or exempt from registration under any applicable state securities
laws and will, when issued, be listed for trading on the NASDAQ National Market
System or the NASDAQ SmallCap Market subject to official notice of issuance.

         4.20 Proceedings and Judgments. Except as disclosed on Schedule 4.20,
(a) no Proceeding is currently pending or, to the knowledge of HAI, threatened,
nor has any Proceeding occurred at any time since January 1, 1998, to which any
of the Acquiring Companies is or was a party, or by which any of the Acquiring
Companies or any Assets or business of any of the Acquiring Companies is or was
affected; (b) no Judgment is currently outstanding, nor has any Judgment been
outstanding at any time since January 1, 1998, against any of the Acquiring
Companies, or by which any of the Acquiring Companies or any Assets or business
of any of the Acquiring Companies is or was affected; and (c) no material breach
of contract, breach of warranty, tort, negligence, infringement, product
liability, discrimination, wrongful discharge or other claim of any nature has
been asserted in any proceeding or, to the knowledge of HAI, threatened in
writing by or against any of the Acquiring Companies at any time since January
1, 1998, and, to the knowledge of HAI, there is no basis for any such claim.

         4.21 Insurance. Schedule 4.22 is an accurate and complete list of all
Insurance Policies (excluding Insurance Policies that constitute HAI' Employee
Benefit Plans described on Schedule 4.15) owned or maintained by any of the
Acquiring Companies and/or any of their predecessors at any time since January
1, 1998. Except as indicated on Schedule 4.21, all such Insurance Policies are
or were on an "occurrence" rather than a "claims made" basis. None of the
Acquiring Companies has received notice of cancellation with respect to any such
current Insurance Policy, and, to the knowledge of HAI, there is no basis for
the insurer thereunder to terminate any such current Insurance Policy. Accurate
and complete copies of all Insurance Policies described on Schedule 4.21 have
been made available to HAI. Each such Insurance Policy is or was in full force
and effect during the period(s) of coverage indicated on Schedule 3.15. There
are no claims that are pending under any of the Insurance Policies described in
this section.

         4.22 Questionable Payments. None of the Acquiring Companies or, to the
knowledge of HAI, any of the HAI Shareholders, nor any current or former
partners, owners, HAI Shareholders, members, directors, executives, officers,
representatives, agents or employees of any of the Acquiring Companies (when
acting in such capacity or otherwise on behalf of any of the Acquiring Companies
or any of their predecessors), (a) has used or is using any corporate funds (i)
for any illegal contributions, gifts, entertainment or other unlawful expenses
relating to political activity or, (ii) to the knowledge of HAI, in violation of
customer policies and/or rules; (b) has used or is using any corporate funds for
any direct or indirect unlawful payments to any foreign or domestic government
officials or employees; (c) has established or maintained, or is maintaining,
any unlawful or unrecorded fund of corporate monies or other properties; (d) has
made at any time since January 1, 1998, any false or fictitious entries on the
books and records of any of the Acquiring Companies; (e) has made any bribe,
unlawful rebate, payoff, influence payment, kickback or other unlawful payment
of any nature using corporate funds or otherwise on behalf of any of the
Acquiring Companies; or (f) made any material favor or gift that is not
deductible for federal income tax purposes using corporate funds or otherwise on
behalf of any of the Acquiring Companies.

         4.23 Related Party Transactions. To the knowledge of HAI, except as
described on Schedule 4.23 and except for any Contracts listed on Schedule 4.13,
there are no real estate leases, personal property leases, loans, guarantees,
Contracts, transactions, understandings or other arrangements of any nature
between or among any of the Acquiring Companies and any current or former

                                       27
<PAGE>

partner, owner, shareholder, member, director, officer or controlling Person of
any of the Acquiring Companies, other than UICI or HAI or its subsidiaries.

         4.24 Liens. Except as set forth in Schedule 4.24, none of the Acquiring
Companies has granted, created or suffered to exist with respect to any of its
assets, any mortgage, pledge, charge, or hypothecation, collateral assignment,
lien (statutory or otherwise), encumbrances or security agreement of any kind or
nature whatsoever.

         4.25 Vote Required. The affirmative vote of the holders of 80% of the
outstanding shares of HAI Common Stock is the only vote of the holder of any
class or series of HAI's capital stock necessary (under applicable law) to
approve the Merger and the Transactions.

         4.26 Brokerage Fees. Except as set forth in Schedule 4.26, no Person
acting on behalf of any of the Acquiring Companies or any of the HAI
Shareholders is or shall be entitled to any brokerage fee, finder's fee or
investment banking fee in connection with the Transactions.

         4.27 Full Disclosure. No representation or warranty made by HAI in this
Agreement or pursuant hereto (a) contains any untrue statement of material fact;
or (b) omits to state any material fact that is necessary to make the statements
made, in light of the circumstances under which they are made, not false or
misleading in any respect. The copies of documents attached as Schedules to this
Agreement or otherwise delivered to HealthAxis by HAI in connection with the
Transactions, are accurate and complete, and are not missing any amendments,
modifications, correspondence or other related papers which would be pertinent
to HealthAxis' understanding thereof in any respect.

         4.28 Compliance with Law. The operations of each of the Acquiring
Companies, the conduct of the business of each of the Acquiring Companies, as
and where such business has been or presently is conducted, and the ownership,
possession and use of the Assets of each of the Acquiring Companies have
complied and currently do comply with all applicable Laws and the articles and
bylaws of each entity except where the failure to comply will not have a
material adverse effect. Except as set forth on Schedule 4.28, each of the
Acquiring Companies has obtained and holds all Permits required for the lawful
operation of its business or businesses as and where such business or businesses
are presently conducted. All Permits held by the Acquiring Companies are listed
on Schedule 4.28, and copies of such Permits have been made available to HAI and
Newco.

         4.29 Investment Matters. HAI is acquiring the HealthAxis Stock for its
own account for investment purposes only and not with a view to, or for sale in
connection with, any resale or distribution thereof.

         4.30 Investment Company. HAI is not currently and upon consummation of
the Merger, HAI will not be an investment company within the meaning of the
Investment Company Act of 1940, as amended.

         4.31 Other Matters. Without limiting the generality of the foregoing
representations and warranties, and except as set forth in Schedule 4.31, HAI
has timely filed with the SEC as required and has delivered to HealthAxis copies
of all material agreements entered into by HAI since June 30, 2000. Agreements
disclosed in Schedule 4.31 and not filed with the SEC will be filed promptly
with the SEC. Such agreements are accurate and complete and does not contain any

                                       28
<PAGE>

untrue statement of a material fact or omits to state any material fact that is
necessary to make the statements made, in light of the circumstances under with
they were made, not false or misleading.

          SECTION 5: CERTAIN OBLIGATIONS OF HEALTHAXIS PENDING CLOSING

         5.1  Conduct of Business. Between the date of this Agreement and the
Closing Date or termination of the Agreement, except with the prior written
consent of HAI:

              (1) Each of the Acquired Companies shall, (i) conduct their
respective businesses in the ordinary course consistent with past practice, (ii)
not make any material change in their business practices, and (iii) use their
reasonable best efforts to preserve their business organization intact, keeping
available the services of their current officers, employees, salesmen, agents
and representatives, and maintaining the goodwill of their customers, suppliers
and other Persons having business relations with the Acquired Companies.

              (2) Each of the Acquired Companies shall, maintain their corporate
existence and subsistence in their respective jurisdictions of incorporation and
their good standing in each jurisdiction where they are currently qualified as a
foreign corporation. None of the Acquired Companies shall amend their articles
of incorporation or bylaws.

              (3) None of the Acquired Companies shall, redeem, retire or
purchase, or create, grant or issue any options, warrants or other Contracts or
Contract Rights with respect to, any shares of HealthAxis Stock, or any other
capital stock or other securities of HealthAxis, or create, grant or issue any
stock options, stock appreciation rights, phantom shares or other similar
rights, except as may be consistent with past practices.

              (4) Except with respect to the conversion and/or exercise of
currently outstanding warrants, stock options and/or Preferred Stock, HealthAxis
shall not sell, assign, give, pledge or grant or otherwise transfer, dispose of
or encumber any shares of the HealthAxis Stock (or securities convertible,
exercisable or exchangeable for capital stock of HealthAxis), or any other
capital stock or other securities of HealthAxis owned or held by it.

              (5) None of the Acquired Companies shall transfer or advance any
funds to HAI or any affiliate of HAI unless (i) such transfer or advance is
approved by the Disinterested HealthAxis Directors and (ii) such transfer or
advance is evidenced by a promissory note issued by HAI to HealthAxis secured by
assets of HAI having a value of not less than 100% of the amount of the advance.
The Disinterested HealthAxis Directors shall have the sole authority to enforce
on behalf of HealthAxis this covenant and the covenant set forth in Section
6.1(6).

         The Acquired Companies shall not enter into any Contract that commits
it to take any action or omit to take any action that would be inconsistent with
any of the provisions of this Section 5.1 or any other provisions of this
Agreement or the Plan.

         5.2  Consents. Between the date of this Agreement and the Closing Date,
each of the Acquired Companies shall in good faith use their reasonable best
efforts to obtain all Consents and approvals of all lenders, lessors, vendors,
customers and other Persons necessary to permit the Merger and the other

                                       29
<PAGE>

Transactions to be consummated without violating any loan agreement, lease or
other material Contract to which any of the Acquired Companies is a party or by
which any of the Acquired Companies is bound, and to give the notices and make
the filings described on Schedule 3.2.

         5.3  Advice of Changes. Between the date of this Agreement and the
Closing Date, HealthAxis shall promptly advise HAI, in writing, of any fact of
which it obtains knowledge and that, if existing or known as of the date of this
Agreement, would have been required to be set forth or disclosed in or pursuant
to this Agreement (it being understood that such advice shall not be deemed to
modify the representations, warranties and covenants of HealthAxis contained in
this Agreement).

         5.4  Reasonable Best Efforts. HealthAxis shall use its reasonable best
efforts to consummate the Merger and the other Transactions as of the earliest
practicable date. HealthAxis shall not take, or cause to be taken, or to the
best of its ability permit to be taken, any action that would impair the
prospect of completing the Merger and the other Transactions.

         5.5  Waivers. Any waiver by HealthAxis of any covenant, condition or
termination right by HealthAxis under this Agreement shall be effective only if
approved by the Disinterested HealthAxis Directors.

         SECTION 6: CERTAIN OBLIGATIONS OF HAI AND NEWCO PENDING CLOSING

         6.1  Conduct of Business. Between the date of this Agreement and the
Closing Date or termination of the Agreement, except with the prior written
consent of HealthAxis:

              (1) HAI shall, (i) conduct its business in the ordinary course
consistent with past practice, (ii) not make any material change in its business
practices, and (iii) use its reasonable best efforts to preserve its business
organization intact, keeping available the services of its current officers,
employees, salesmen, agents and representatives, and maintaining the goodwill of
its customers, suppliers and other Persons having business relations with HAI.

              (2) HAI and Newco shall maintain their corporate existence and
subsistence in their respective jurisdictions of incorporation and their good
standing in each jurisdiction where they are currently qualified as a foreign
corporation. Neither HAI nor Newco shall amend their articles of incorporation
or bylaws.

              (3) Except in the ordinary course of its business consistent with
its past practices, HAI shall not redeem, retire or purchase, or create, grant
or issue any options, warrants or other Contracts or Contract Rights with
respect to, any shares of HAI Common Stock, or any other capital stock or other
securities of HAI, or create, grant or issue any stock options, stock
appreciation rights, phantom shares or other similar rights, except as may be
consistent with past practices.

              (4) Except with respect to the conversion and/or exercise of
currently outstanding warrants, stock options and/or Preferred Stock, HAI shall
not sell, assign, give, pledge or grant or otherwise transfer, dispose of or
encumber any shares of the HAI Common Stock (or securities convertible,
exercisable or exchangeable for capital stock of HAI), or any other capital
stock or other securities of HAI owned or held by it.

                                       30
<PAGE>

              (5) Neither HAI nor Newco shall enter into any Contract that
commits them to take any action or omit to take any action that would be
inconsistent with any of the provisions of this Section 6.1 of this Agreement or
the Plan.

              (6) HAI shall not receive or accept any transfer or advance of
funds from HealthAxis unless (i) such transfer or advance is approved by the
Disinterested HealthAxis Directors pursuant to Section 5.1(5), and (ii) such
transfer or advance is evidenced by a promissory note issued by HAI to
HealthAxis secured by assets of HAI having a value of not less than 100% of the
amount of the advance.

         6.2  Consents. Between the date of this Agreement and the Closing Date,
HAI and Newco shall in good faith use their reasonable best efforts to obtain
all Consents and approvals of all lenders, lessors, vendors, customers and other
Persons necessary to permit the Merger and the other Transactions to be
consummated without violating any loan agreement, lease or other material
Contract to which either HAI or Newco is a party or by which either HAI or Newco
is bound, and to give the notices and make the filings described on Schedule
4.2.

         6.3  SEC Reports. Between the date of this Agreement and the Closing
Date, HAI shall timely file all reports and other filings required to be filed
by it under the Exchange Act.

         6.4  Advice of Changes. Between the date of this Agreement and the
Closing Date, HAI shall promptly advise HealthAxis, in writing, of any fact of
which it obtains knowledge and that, if existing or known as of the date of this
Agreement, would have been required to be set forth or disclosed pursuant to a
representation or warranty in this Agreement (it being understood that such
advice shall not be deemed to modify the representations, warranties and
covenants of HAI and/or Newco contained in this Agreement).

         6.5  Reasonable Best Efforts. HAI and Newco shall use their reasonable
best efforts to consummate the Merger and the other Transactions as of the
earliest practicable date, and neither HAI nor Newco shall take, or cause to be
taken, or to the best of their ability permit to be taken, any action that would
impair the prospect of completing the Merger and the other Transactions.

         6.6  NASDAQ Listing. HAI shall use its best efforts to cause the shares
of HAI Common Stock constituting the Merger consideration to be listed on the
NASDAQ National Market System or NASDAQ SmallCap Market, as applicable, subject
to notice of official issuance thereof.

         6.7  Employee Benefits. Following the Effective Date, HAI shall cause
Newco to provide benefits to such employees which are comparable to those
provided to similarly situated employees of HAI from time-to-time.

         6.8  Waivers. Any waiver by HAI of any covenant, condition or
termination right by HAI under this Agreement shall be effective only if
approved by the Disinterested HAI Directors.

                 SECTION 7: ADDITIONAL COVENANTS OF THE PARTIES

         7.1  Shareholders' Meetings. (a) HAI shall cause a meeting of its
shareholders (including any postponements or adjournments thereto) (the "HAI
Shareholders' Meeting") to be duly called and held as soon as reasonably

                                       31
<PAGE>

practicable, but in any event within 30 business days after the mailing of the
Proxy Statement/Prospectus (as hereinafter defined), for the purpose of voting
on the approval of the issuance of the shares of HAI Common Stock to be issued
in connection with the Merger; provided, however, that notwithstanding anything
to the contrary contained in this Agreement, HAI may adjourn or postpone the HAI
Shareholders' Meeting to the extent necessary to ensure that any necessary
supplement or amendment to the Proxy Statement/Prospectus is provided to HAI's
Shareholders in advance of a vote on the issuance of HAI Common Stock in the
Merger or, if as of the time for which the HAI Shareholders' Meeting is
originally scheduled (as set forth in the Proxy Statement/Prospectus) there are
insufficient shares of HAI Common Stock represented (either in person or by
proxy) to constitute a quorum necessary to conduct the business of the HAI
Shareholders' Meeting. HealthAxis shall cause a meeting of its shareholders
(including any postponements or adjournments thereto) (the "HealthAxis
Shareholders' Meeting") (the HAI Shareholders' Meeting and the HealthAxis
Shareholders' Meeting shall collectively be referred to herein as, the
"Shareholders' Meetings") to be duly called and held as soon as reasonably
practicable, but in any event within 30 business days after the mailing of the
Proxy Statement/Prospectus (as hereinafter defined), for the purpose of voting
on the approval of the Merger.

              (b) As promptly as practicable following the date of this
Agreement, HAI and HealthAxis shall prepare a joint proxy statement/prospectus
with respect to the Shareholders' Meetings (which proxy statement/prospectus
will constitute the prospectus of HAI to be included in the Form S-4
Registration Statement to be filed by HAI pursuant to Section 7.2 hereof and a
proxy statement/prospectus on Schedule 14A) (such proxy statement, together with
any amendments thereof or supplements thereto, in each case in the form or forms
mailed to HAI's and HealthAxis' Shareholders, is herein called the "Proxy
Statement/Prospectus"). HAI will (i) as promptly as practicable following the
preparation of the Proxy Statement/Prospectus file the Proxy
Statement/Prospectus with the SEC, and use its reasonable best efforts to have
it cleared by the SEC and thereafter mail the Proxy Statement/Prospectus to its
shareholders; (ii) use its reasonable best efforts to obtain the necessary
approval by its shareholders of the issuance of the HAI Common Stock in the
Merger and the amendment of the Articles of Incorporation of HAI to increase the
number of authorized shares of Common Stock and (iii) otherwise comply with all
legal requirements applicable to its respective meeting. HealthAxis will (i)
promptly after the Proxy Statement/Prospectus is cleared by the SEC mail the
Proxy Statement/Prospectus to its shareholders; (ii) use its reasonable best
efforts to obtain the necessary approvals by its shareholders of the Merger and
(iii) otherwise comply with all legal requirements applicable to its respective
meeting. HAI agrees to provide HealthAxis with all comments or correspondence
received from the SEC as to the Proxy Statement/Prospectus and HAI and
HealthAxis shall prepare responses to any such comments or correspondence as
required to have the Proxy Statement/Prospectus cleared by the SEC. The Proxy
Statement/Prospectus shall include the recommendation of the HAI Board of
Directors that their respective shareholders approve the issuance of the HAI
Common Stock in the Merger. HAI shall send a Notification of the Merger to
HealthAxis Shareholders notifying them of the Effective Date.

              (c) The Boards of Directors of each of HAI and HealthAxis shall
recommend approval of the issuance of HAI Common Stock in the Merger and of the
Merger, as the case may be, by their respective shareholders and will agree to
vote the shares that they hold in favor of the Merger. HAI agrees to vote its
shares of HealthAxis common and preferred stock in favor of the Merger.

                                       32
<PAGE>

         7.2  Registration Statement and Proxy Statement/Prospectus.

              (a) The Form S-4 Registration Statement. The Form S-4 Registration
Statement and all amendments thereto do and will comply as to form in all
material respects with the provisions of the Securities Act and the rules and
regulations promulgated thereunder. Neither the Form S-4 Registration Statement,
nor any amendments thereof, will, on the date the Proxy Statement/Prospectus is
first mailed to HAI and HealthAxis Shareholders, at the time of the HAI and/or
HealthAxis Shareholders' meeting, at the Effective Date or at the time it
becomes effective, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading, provided, however, that HAI makes no representation or warranty
with respect to any information furnished to it by HealthAxis or any of
HealthAxis' accountants, counsel or other authorized representatives in writing
specifically for inclusion in the Form S-4 Registration Statement. None of the
information with respect to HAI or any affiliate of HAI (other than the Acquired
Companies) that is set forth in the Proxy Statement/Prospectus will, on the date
that the Proxy Statement/Prospectus is first mailed to HAI and HealthAxis
Shareholders, at the time of the HAI and/or HealthAxis Shareholder Meeting or at
the Effective Date, contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading.

              (b) HAI will, as promptly as practicable following the date of
this Agreement, continue the preparation and filing with the SEC of a
registration statement on Form S-4 (the "Form S-4 Registration Statement"),
containing the Proxy Statement/Prospectus, and the prospectus in connection with
the Merger and the other transactions contemplated hereby and the SEC as
promptly as practicable, HealthAxis will continue to cooperate with HAI in the
preparation and filing of the Proxy Statement/Prospectus and will provide HAI
with all financial and other data concerning HealthAxis as is necessary in order
for HAI to prepare the Proxy Statement/Prospectus.

         7.3  Blue Sky Permits. HAI shall use its reasonable efforts to obtain,
prior to the effective date of the Form S-4 Registration Statement, all
necessary state securities law or "blue sky" permits and approvals required to
ensure that the HAI Common Stock to be issued in the Merger will be registered
or qualified under such state securities Laws, and will pay all expenses
incident thereto; provided, however, that the foregoing shall not require HAI to
(i) submit generally to jurisdiction or require it to qualify to do business in
any jurisdiction where it is not presently required to submit to jurisdiction or
be qualified to do business; or (ii) file a general consent to service of
process in any jurisdiction.

         7.4  Tax Free Reorganization. HealthAxis and HAI agree not to take or
cause to be taken any actions that would adversely affect the treatment of the
Merger as a reorganization within the meaning of Section 368(a) of the Code.

                                       33
<PAGE>

         7.5  Full Disclosure. None of the information supplied or to be
supplied by or on behalf of the Acquired Companies for inclusion or
incorporation by reference in the Proxy Statement/Prospectus to be filed with
the SEC by HAI in connection with the HAI and/or HealthAxis Shareholders'
Meeting to be held by HAI and/or HealthAxis relating to the Merger did or will,
at the time the information was or is supplied, contain any untrue statement of
a material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances under which they were or are made, not misleading. If any such
information becomes untrue in any material respect prior to the filing of the
Proxy Statement/Prospectus, the mailing of the Proxy Statement/Prospectus to the
HAI and HealthAxis Shareholders or the time of the HAI and/or HealthAxis
Shareholders' Meeting, HealthAxis will promptly notify HAI.

       SECTION 8: CONDITIONS PRECEDENT TO HEALTHAXIS' CLOSING OBLIGATIONS

         Each obligation of HealthAxis to be performed on the Closing Date shall
be subject to the satisfaction of each of the conditions stated in this Section
8, except to the extent that such satisfaction is waived by HealthAxis in
writing.

         8.1  HAI's and Newco's Representations. Each of the representations and
warranties of HAI and/or Newco contained in this Agreement shall be true and
correct in all material respects, in each case on and as of the Closing Date as
if such representations and warranties were made on and as of the Closing Date;
provided, however, that any representation and warranty that contains a
materiality qualification shall be true and correct in all respects.

         8.2  HAI's and Newco's Performance. All of the terms and conditions of
this Agreement to be satisfied or performed by HAI and/or Newco on or before the
Closing Date (including, but not limited to, the obligations set forth in
Section 10.3) shall have been substantially satisfied or performed.

         8.3  Absence of Proceedings. No Proceeding shall have been instituted,
no Judgment shall have been issued, and no new Law shall have been enacted, on
or before the Closing Date, that seeks to or does prohibit or restrain, or that
seeks material damages as a result of, the consummation of the Merger or any of
the other Transactions.

         8.4  Approval of HealthAxis and HAI Shareholders. The Merger and the
issuance of the shares of HAI Common Stock in the Merger shall have been duly
approved by the affirmative vote of the HealthAxis and HAI Shareholders, as the
case may be, in accordance with applicable Law. The HAI Shareholders shall have
approved the amendment to the Articles of Incorporation of HAI to increase the
number of authorized shares of common stock and the amendment to the Articles of
Incorporation of HAI as set forth in Exhibit D hereto.

         8.5  Board Seats. The following individuals shall have been elected to
the Board of Directors of HAI effective as of the Effective Date of the Merger:
Patrick J. McLaughlin, Gregory T. Mutz and Dennis B. Maloney.

         8.6  Adverse Changes. There shall not have been any material adverse
change or material casualty loss affecting HAI or any of its subsidiaries. or
their respective businesses, Assets or financial condition, between the date of
this Agreement and the Closing Date, and there shall not have been any material
adverse change in the financial performance of HAI or its subsidiaries between
the date of this Agreement and the Closing Date.

                                       34
<PAGE>

         8.7  Registration Statement. The Form S-4 Registration Statement shall
have become effective in accordance with the provisions of the Securities Act,
and no order suspending such effectiveness shall have been issued and remain in
effect.

         8.8  Listing of HAI Common Stock. The shares of HAI Common Stock
issuable in accordance with the Merger shall have been approved for listing on
the NASDAQ National Market System or the NASDAQ SmallCap Market, as applicable,
subject to official notice of issuance.

         8.9  Tax Opinion. The parties shall have received an opinion of tax
counsel, in form and substance reasonably satisfactory to HAI and HealthAxis,
dated as of the Effective Date, substantially to the effect that on the basis of
facts, representations and assumptions set forth in such opinion which are
consistent with the state of facts then existing: (i) the Merger will constitute
a "reorganization" within the meaning of Section 368(a) of the Code and each of
HAI, HealthAxis and Newco will be a "party to a reorganization" within the
meaning of Section 368(b) of the Code. In rendering such opinion, such firm may
require and rely upon representations contained in the tax representation
letters delivered to it by HAI and HealthAxis, and such other certificates from
such other Persons as such firm may reasonably require; and (ii) the
consummation of the Merger will not adversely affect the qualification of the
merger between HealthAxis and Insurdata Inc., which occurred on January 7, 2000,
as a "reorganization" within the meaning of Section 368(a) of the Code. Such an
opinion may contain such further assumptions and qualifications as are customary
in legal opinions concerning federal income taxation.

    SECTION 9: CONDITIONS PRECEDENT TO HAI'S AND NEWCO'S CLOSING OBLIGATIONS

         Each obligation of HAI and Newco to be performed on the Closing Date
shall be subject to the satisfaction of each of the conditions stated in this
Section 9, except to the extent that such satisfaction is waived by HAI in
writing.

         9.1  Upon consummation of the Merger, HAI, Newco, UICI, Michael Ashker
and Alvin H. Clemens shall enter into a shareholder agreement in the form
attached hereto as Exhibit B.

         9.2  Approval of the HealthAxis and HAI Shareholders. The Merger and
the issuance of shares of HAI Common Stock in the Merger shall have been duly
approved by the affirmative vote of the Shareholders of HealthAxis and HAI
Shareholders, as the case may be, in accordance with applicable law, the
Articles of Incorporation and Certificates of Designation.

         9.3  Dissenting and other HealthAxis Shareholders. The aggregate number
of shares of HealthAxis Stock owned by those HealthAxis Shareholders (if any)
who shall have exercised (or given notice of their intent to exercise) the
rights of dissenting shareholders under the Pennsylvania Business Corporation
Law or any other applicable corporate law shall be less than ten percent (10%)
of the total number of outstanding shares of HealthAxis Stock.

         9.4  HealthAxis' Representations. Each of the representations and
warranties of HealthAxis contained in this Agreement shall be true and correct
in all material respects, in each case on and as of the Closing Date as if such

                                       35
<PAGE>

representations and warranties were made on and as of the Closing Date provided,
however, that any representation and warranty that contains a materiality
qualification shall be true and correct in all respects.

         9.5  HealthAxis' Performance. All of the terms and conditions of this
Agreement to be satisfied or performed by HealthAxis on or before the Closing
Date (including the Obligations set forth in Section 10.2) shall have been
substantially satisfied or performed.

         9.6  Absence of Proceedings. No Proceeding shall have been instituted,
no Judgment shall have been issued, and no new Law shall have been enacted, on
or before the Closing Date, that seeks to or does prohibit or restrain, or that
seeks damages as a result of, the consummation of the Merger or any of the other
Transactions.

         9.7  Adverse Changes. There shall not have been any material adverse
change or material casualty loss affecting the Acquired Companies, or their
respective businesses, Assets or financial condition, between the date of this
Agreement and the Closing Date, and there shall not have been any material
adverse change in the financial performance of any of the Acquired Companies
between the date of this Agreement and the Closing Date; provided however that
to the extent any such material adverse change or material casualty loss is
caused, directly or indirectly, by any action or inaction of HAI, such change or
loss shall not be deemed to be a material adverse change or material casualty
loss.

         9.8  HealthAxis Net Worth. Between the date of this Agreement and the
Closing Date, the net worth of the Acquired Companies on a consolidated basis as
determined in accordance with GAAP, but excluding goodwill and all other
intangible assets acquired as a result of HealthAxis' acquisition of Insurdata,
shall not be less than $20.0 million. To the extent that the Closing Date has
not occurred prior to the quarterly dates set forth below, the net worth as of
any previous quarterly date of the Acquired Companies on a consolidated basis as
determined in accordance with GAAP, but excluding goodwill and other intangible
assets acquired as a result of HealthAxis' acquisition of Insurdata, shall not
be less than: $50.0 million on March 31, 2000; $35.0 million on June 30, 2000;
and $20.0 million on September 30, 2000.

                               SECTION 10: CLOSING

         10.1 Closing. The closing of the Merger and the other Transactions (the
"Closing") shall take place at a mutually agreeable time and place on a date
designated by HAI (the "Closing Date"), which shall be no later than the second
business day after the satisfaction or waiver of the conditions set forth in
Sections 8 and 9. Contemporaneously with the Closing, the parties hereto shall
cause the Plan and properly executed Articles of Merger conforming to the
requirements of the Pennsylvania Business Corporation Law (the "Articles of
Merger") to be filed with the proper officers of the Commonwealth of
Pennsylvania, and the parties shall take such further actions as may be required
by the Commonwealth of Pennsylvania, and any other applicable Law, in connection
with consummation of the Merger. The Merger shall take effect at the time such
filing is made with the Commonwealth of Pennsylvania or at such later time as
may be specified in the Articles of Merger (the "Effective Date").

         10.2 HealthAxis' Obligations at Closing. At or prior to the Closing,
HAI and Newco shall have received the following:

                                       36
<PAGE>

              (1) All instruments or documents necessary to change the names of
the individuals who have access to or are authorized to make withdrawals from or
dispositions of all bank accounts, other accounts, certificates of deposits,
marketable securities, other investments, safe deposit boxes, lock boxes and
safes of HealthAxis described on Schedule 3.4 and all keys and combinations to
all safe deposit boxes, lock boxes and safes of HealthAxis and other
depositories described on Schedule 3.4.

              (2) A certificate, dated as of the Closing Date, in form and
substance satisfactory to HAI, signed by the President and Chief Financial
Officer of HealthAxis, certifying, that (i) each representation and warranty
made by HealthAxis in this Agreement is correct in all material respects (except
for any representation and warranty that contains a materiality qualification,
which shall be true and correct in all respects) as of the Closing Date, as if
made on and as of the Closing Date, except for changes contemplated or permitted
by this Agreement, (ii) all of the terms and conditions of this Agreement to be
satisfied or performed by HealthAxis on or before the Closing Date have been
substantially satisfied or performed, and (iii) there has not been any material
adverse change or material casualty loss affecting any of the Acquired
Companies, or their business, Assets or financial condition, between the date of
this Agreement and the Closing Date, and there has not been any material adverse
change in HealthAxis' financial performance between the date of this Agreement
and the Closing Date.

              (3) Articles of Merger for the Commonwealth of Pennsylvania, in
form and substance, acceptable to the parties ("Articles of Merger"), dated as
of the Closing Date and duly executed by HealthAxis.

              (4) The signed copies of all Consents listed on Schedule 3.2.

              (5) All of the original minute books and stock books of the
Acquired Companies (including original stock certificates evidencing HealthAxis'
100% ownership of each of the subsidiaries) and duly executed resignations,
dated as of the Effective Date, of all directors and officers of the Acquired
Companies other than as specified by HAI.

              (6) Good standing certificates for HealthAxis, dated no earlier
than ten (10) days before the Closing Date, from the Commonwealth of
Pennsylvania and from each other jurisdiction in which it is qualified or
registered to do business as a foreign corporation and good standing certificate
or equivalent from each of the other Acquired Companies from their respective
jurisdiction of incorporation.

              (7) A certificate of Secretary of HealthAxis as to the incumbency
and signatures of the officers of HealthAxis executing this Agreement.

              (8) Copies of the resolutions duly adopted by the board of
directors of HealthAxis, authorizing HealthAxis to execute, deliver and perform
this Agreement and the Plan and to consummate the Transactions, certified by an
officer of HealthAxis as in full force and effect, without modification or
rescission, on and as of the Closing Date.

              (9) A duly signed letter, from each affiliate of HealthAxis, in
form, attached hereto as Exhibit C, stating that such affiliate will not sell,
assign, give, pledge (except in connection with fully recourse bank loans) or
otherwise transfer, dispose of or reduce such affiliate's risk relating to any
of such affiliate's shares of capital stock or other securities of HAI without
compliance with the applicable federal and state securities laws.

                                       37
<PAGE>

              (10) The legal opinion of tax counsel described in Section 8.9.

              (11) A legal opinion of Blank Rome Comisky & McCauley LLP, as to
various corporate and related matters in connection with the Transactions and
reasonably acceptable to HAI.

              (12) Notice that all applicable waiting periods with respect to
the Transactions shall have expired under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended ("HSR Act"), and neither the Federal Trade
Commission nor the Antitrust Division of the Department of Justice shall have
(i) required any party to divest itself of any assets in order to consummate
such Transactions, or (ii) taken any actions to prohibit the consummation of
such Transactions.

              (13) All other agreements, certificates, instruments, financial
statement certifications, opinions of counsel and documents reasonably requested
by HAI in order to fully consummate the Transactions and carry out the purposes
and intent of this Agreement and the Plan.

              (14) Audited financial statements of each of HealthAxis and
Insurdata Inc. as of December 31, 1999.

         10.3 HAI's and Newco's Obligations at Closing. At the Closing,
HealthAxis shall have received the following:

              (1) The Articles of Merger duly executed by Newco.

              (2) A certificate, dated as of the Closing Date, in form and
substance satisfactory to HealthAxis, signed by an officer of HAI, certifying
that (i) each representation and warranty (except for any representation and
warranty that contains a materiality qualification, which shall be true and
correct in all respects) by HAI and/or Newco in this Agreement is correct in all
material respects as of the Closing Date, as if made on and as of the Closing
Date, except for changes contemplated or permitted by this Agreement, (ii) all
of the terms and conditions of this Agreement to be satisfied or performed by
HAI and/or Newco on or before the Closing Date have been substantially satisfied
or performed, and (iii) there has not been any material adverse change or
material casualty loss affecting HAI, or its business, Assets or financial
condition, between the date of this Agreement and the Closing Date, and there
has not been any material adverse change in HAI's financial performance between
the date of this Agreement and the Closing Date.

              (3) Good standing certificates for each of HAI and Newco, dated no
earlier than ten (10) days before the Closing Date, from the Commonwealth of
Pennsylvania.

              (4) Copies of the resolutions duly adopted by the board of
directors of HAI and by the board of directors and the sole shareholder of
Newco, authorizing HAI and Newco, respectively, to execute, deliver and perform
this Agreement and the Plan and to consummate the Transactions, certified by an
officer of HAI or Newco, respectively, as in full force and effect, without
modification or rescission, on and as of the Closing Date.

              (5) A certificate of Secretary of each of HAI and Newco as to the
incumbency and signatures of the officers of HAI and Newco executing this
Agreement.

                                       38
<PAGE>

              (6) The signed copies of all Consents listed on Schedule 4.2.

              (7) The legal opinion of tax counsel described in Section 8.9.

              (8) A legal opinion of Stradley Ronon Stevens & Young, LLP as to
various corporate and related matters in connection with the Transactions and
reasonably acceptable to HealthAxis.

              (9) Notice that all applicable waiting periods with respect to the
Transactions shall have expired under the HSR Act, and neither the Federal Trade
Commission nor the Antitrust Division of the Department of Justice shall have
(i) required any party to divest itself of any assets in order to consummate
such Transactions, or (ii) taken any actions to prohibit the consummation of
such Transactions.

              (10) All other agreements, certificates, instruments, opinions of
counsel and documents reasonably requested by HealthAxis in order to fully
consummate the Transactions and carry out the purposes and intent of this
Agreement and the Plan.

              (11) Audited financial statements of HAI as of December 31, 1999.

                 SECTION 11: CERTAIN OBLIGATIONS OF HAI AND THE
                       SURVIVING CORPORATION AFTER CLOSING

         11.1 Final Tax Returns. Newco shall timely prepare and file all
federal, state and other income tax returns required to be filed by HealthAxis
or its subsidiaries for the period from January 1, 2000 through the Closing
Date, and HAI shall fully cooperate with the Newco Corporation with respect
thereto.

         11.2 Delivery of Certificates. As soon as practicable, HAI shall
deliver to the HealthAxis Shareholders certificates representing the shares of
HAI Common Stock to which the HealthAxis Shareholders are entitled in accordance
with Section 2 and the Plan.

                          SECTION 12: OTHER PROVISIONS

         12.1 Survival. The covenants, agreements, representations and
warranties of the parties hereto contained in this Agreement shall not survive
the Closing; provided that the covenants and agreements that, by their terms,
are to have effect or be performed after the Closing Date shall survive in
accordance with their terms.

         12.2 Termination. At any time before the Closing, whether or not the
Merger has been approved by HealthAxis' Shareholders or HAI's Shareholders, this
Agreement may be terminated and the Merger abandoned in accordance with any of
the following methods:

              (1) By the mutual written consents of HAI and HealthAxis,
authorized by the Disinterested HealthAxis Directors and the Disinterested HAI
Directors.

              (2) By written notice from HAI to HealthAxis, or from HealthAxis
to HAI, if it becomes certain (for all practical purposes) that any of the
conditions to the closing obligations of the party giving such notice cannot be

                                       39
<PAGE>

satisfied on or before March 31, 2001, for a reason other than such party's
default, and such party is not willing to waive the satisfaction of such
condition.

              (3) By written notice from HAI to HealthAxis, or from HealthAxis
to HAI, if the Closing does not occur on or before March 31, 2001 for any reason
other than a breach of this Agreement by the party giving such notice.

              (4) By HealthAxis on and after October 31, 2000 if HAI shall not
have then been unconditionally and irrevocably released from that certain
Guarantee, dated December 29, 1998, as amended, with Hannover Life Reassurance
Company of America (formerly Reassurance Company of Hannover) on terms otherwise
acceptable to HealthAxis.

         Upon termination of the Agreement and abandonment of the Merger as
herein provided, HAI and Newco will, within not more than 45 days following such
termination, take all such steps as are appropriate and necessary to change
their respective corporate names to such names not utilizing "HealthAxis" or
derivatives thereof.

         12.3 Publicity. Without the prior written consent of HAI, HealthAxis
shall not make any public announcement regarding the Transactions, nor shall it
in any public manner disseminate any information regarding HealthAxis, HAI, the
Merger or the other Transactions. Unless required by Law or stock exchange
regulation, in the opinion of HAI's counsel, neither HAI nor Newco shall make
any public announcement regarding the Transactions without first consulting with
HealthAxis. With respect to any announcement that any of the parties is required
by Law or stock exchange regulation to issue, such party shall, to the extent
possible under the circumstances, review the necessity for the contents of the
announcement with the other party before issuing the announcement.

         12.4 Fees and Expenses. HAI shall pay all of the fees and expenses
incurred by it and/or Newco and HealthAxis shall pay all of the fees and
expenses incurred by it in negotiating and preparing this Agreement and the Plan
(and all other contracts and documents executed in connection herewith or
therewith) and in consummating the Transactions.

         12.5 Notices. All notices, consents or other communications required or
permitted to be given under this Agreement shall be in writing and shall be
deemed to have been duly given when delivered personally or one business day
after being sent by a nationally recognized overnight delivery service, postage
or delivery charges prepaid. Notices may also be given by prepaid facsimile and
shall be effective on the date transmitted if confirmed telephonically
immediately thereafter and within 48 hours thereafter by a signed original sent
in the manner provided in the preceding sentence. Notices to HealthAxis shall be
sent to HealthAxis' address stated on page one of this Agreement to the
attention of its president. Notices to HAI and/or Newco shall be sent to HAI's
address stated on page one of this Agreement to the attention of its General
Counsel, with a copy sent simultaneously to the same address to the attention of
its Chief Financial Officer. Any party may change its address for notice and the
address to which copies must be sent by giving notice of the new addresses to
the other parties in accordance with this Section 12.5, provided that any such
change of address notice shall not be effective unless and until received.

         12.6 Interpretation of Representations. Each representation and
warranty made in this Agreement or pursuant hereto is independent of all other
representations and warranties made by the same parties, whether or not covering

                                       40
<PAGE>

related or similar matters, and must be independently and separately satisfied.
Exceptions or qualifications to any such representation or warranty shall not be
construed as exceptions or qualifications to any other representation or
warranty.

         12.7 Reliance by HAI and Newco. Notwithstanding the right of HAI and
Newco to investigate the businesses, Assets and financial condition of the
Acquired Companies, and notwithstanding any knowledge determined or determinable
by HAI and Newco as a result of such investigation, HAI and Newco have the
unqualified right to rely upon, and have relied upon, each of the
representations and warranties made by HealthAxis in this Agreement or pursuant
hereto.

         12.8 Reliance by HealthAxis. Notwithstanding the right of HealthAxis to
investigate the businesses, Assets and financial condition of HAI and Newco, and
notwithstanding any knowledge determined or determinable by HealthAxis as a
result of such investigation, HealthAxis has the unqualified right to rely upon,
and has relied upon, each of the representations and warranties made by HAI and
Newco in this Agreement or pursuant hereto.

         12.9 Entire Understanding. This Agreement, together with the Exhibits
and Schedules hereto, and the Plan state the entire understanding among the
parties with respect to the subject matter hereof, and supersede all prior oral
and written communications and agreements, and all contemporaneous oral
communications and agreements, with respect to the subject matter hereof,
including without limitation all confidentiality letter agreements and letters
of intent previously entered into among some or all of the parties hereto. No
amendment or modification of this Agreement shall be effective unless in writing
and signed by the party against whom enforcement is sought.

         12.10 Parties in Interest. This Agreement shall bind, benefit, and be
enforceable by and against HealthAxis, HAI and Newco and their respective
successors and assigns. No party shall in any manner assign any of its rights or
obligations under this Agreement without the express prior written consent of
the other parties.

         12.11 Waivers. Except as otherwise expressly provided herein, no waiver
with respect to this Agreement shall be enforceable unless in writing and signed
by the party against whom enforcement is sought. Except as otherwise expressly
provided herein, no failure to exercise, delay in exercising, or single or
partial exercise of any right, power or remedy by any party, and no course of
dealing between or among any of the parties, shall constitute a waiver of, or
shall preclude any other or further exercise of, any right, power or remedy.

         12.12 Severability. If any provision of this Agreement is construed to
be invalid, illegal or unenforceable, then the remaining provisions hereof shall
not be affected thereby and shall be enforceable without regard thereto.

         12.13 Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original
hereof, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one counterpart hereof.

         12.14 Section Headings. Section and subsection headings in this
Agreement are for convenience of reference only, do not constitute a part of
this Agreement, and shall not affect its interpretation.

                                       41
<PAGE>

         12.15 References. All words used in this Agreement shall be construed
to be of such number and gender as the context requires or permits.

         12.16 Controlling Law. THIS AGREEMENT IS MADE UNDER, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF
PENNSYLVANIA APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY THEREIN,
WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW.

         12.17 Jurisdiction and Process. In any action between or among any of
the parties, whether arising out of this Agreement or otherwise, (a) each of the
parties irrevocably consents to the exclusive jurisdiction and venue of the
federal and state courts located in the Commonwealth of Pennsylvania, (b) if any
such action is commenced in a state court, then, subject to applicable law, no
party shall object to the removal of such action to any federal court located in
the Commonwealth of Pennsylvania, (c) each of the parties irrevocably waives the
right to trial by jury, and (d) each of the parties irrevocably consents to
service of process by first class certified mail, return receipt requested,
postage prepaid, to the address at which such party is to receive notice in
accordance with Section 12.5, and the prevailing parties shall be entitled to
recover their reasonable attorneys' fees and court costs from the other parties.

         12.18 No Third-Party Beneficiaries. No provision of this Agreement or
the Plan is intended to or shall be construed to grant or confer any right to
enforce this Agreement or the Plan, or any remedy for breach of this Agreement
or the Plan, to or upon any Person other than the parties hereto, including, but
not limited to, any customer, prospect, supplier, employee, contractor,
salesman, agent or representative of any of the Acquired Companies.

         12.19 Nature of Transactions. The parties intend that the Merger shall
constitute a purchase under GAAP and a tax-free reorganization under the
Internal Revenue Code of 1986, as amended.

         12.20 Bankruptcy Qualification. Each representation or warranty made in
or pursuant to this Agreement regarding the enforceability of any contract shall
be qualified to the extent that such enforceability may be effected by
bankruptcy, insolvency and other similar laws or equitable principles (but not
those concerning fraudulent conveyance) generally affecting creditors' rights
and remedies.

         12.21 Construction. The parties hereto agree that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting party shall not be applied in the construction or interpretation of
this Agreement or any agreements delivered in connection with the Transactions.

                        [Signatures Appear on Next Page]

                                       42
<PAGE>

         Witness the due execution and delivery hereof as of the date first
stated above.

<TABLE>
<CAPTION>
<S>                                                           <C>
HEALTHAXIS.COM, INC.                                          HEALTHAXIS INC.

By: /s/ Michael Ashker                                        By: /s/ Michael Ashker
    -------------------------------------------------             ----------------------------------------

Name:    Michael Ashker                                       Name:    Michael Ashker
      -----------------------------------------------               --------------------------------------

Title:   President and Chief Executive Officer                Title: President and Chief Executive Officer
      -----------------------------------------------                -------------------------------------

                                                              HEALTHAXIS ACQUISITION CORP.

                                                              By: /s/ Michael Ashker
                                                                  ----------------------------------------
                                                              Name:    Michael Ashker
                                                                    --------------------------------------
                                                              Title: President and Chief Executive Officer
                                                                     -------------------------------------
</TABLE>

                                       43
<PAGE>

                              HealthAxis Affiliates

                                   Schedule A

                                 MICHAEL ASHKER
                                ALVIN H. CLEMENS
                                 HENRY G. HAGER
                             EDWARD W. LeBARON, JR.
                                ANTHONY R. VERDI
                              PATRICK J. MCLAUGHLIN
                                 GREGORY T. MUTZ
                                  ANDREW FELDER
                                DENNIS B. MALONEY
                                MICHAEL BEAUSANG
                              MICHAEL G. HANKINSON
                                 JAMES W. McLANE
                                      UICI

<PAGE>

                                                                       Exhibit A

                              AMENDED AND RESTATED
                          AGREEMENT AND PLAN OF MERGER

PARTIES:          HEALTHAXIS.COM, INC.
                  a Pennsylvania corporation ("HealthAxis")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

                  HEALTHAXIS INC.
                  a Pennsylvania corporation ("HAI")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

                  HEALTHAXIS ACQUISITION CORP.
                  a Pennsylvania corporation ("Newco")
                  2500 DeKalb Pike
                  East Norriton, PA 19401

DATE:             As of September 29, 2000

BACKGROUND: Newco is a wholly owned subsidiary of HAI. HealthAxis, HAI and Newco
have entered into an Amended and Restated Agreement and Plan of Reorganization,
dated as of this date (the "Reorganization Agreement"), that contemplates the
consolidation and merger of HealthAxis with and into Newco (the "Merger") in
accordance with the provisions of the Reorganization Agreement and the
provisions of this Amended and Restated Agreement and Plan of Merger (this
"Plan").

         NOW, THEREFORE, in consideration of the mutual agreements contained
herein and subject to the satisfaction of the terms and conditions set forth
herein and in the Reorganization Agreement, the parties hereto, intending to be
legally bound, agree to amend and restate the Agreement and Plan of
Reorganization to read as follows:

         1.  Merger. On the Effective Date (as defined below), HealthAxis shall
be merged with and into Newco in accordance with the provisions of this Plan and
in compliance with the Pennsylvania Business Corporation Law ("BCL" or the
"Corporation Laws"), and the Merger shall have the effect provided for in the
Corporation Laws. Newco (sometimes referred to as the "Surviving Corporation")
shall be the surviving corporation of the Merger and shall continue to exist and
to be governed by the laws of the Commonwealth of Pennsylvania. The corporate
existence and identity of Newco, with its purposes and powers, shall continue
unaffected and unimpaired by the Merger, and Newco shall remain a wholly owned
subsidiary of HAI after the Effective Date. On the Effective Date, Newco shall
succeed to and be fully vested with the corporate existence and identity of
HealthAxis, and the separate corporate existence and identity of HealthAxis
shall cease.

                                       1
<PAGE>

         2.  Name. The name of the Surviving Corporation shall be
HealthAxis.com, Inc.

         3.  Charter. Immediately after the Merger, the Articles of
Incorporation of the Surviving Corporation shall be that of Newco immediately
before the Merger.

         4.  Bylaws. Immediately after the Merger, the Bylaws of the Surviving
Corporation shall be those of Newco immediately before the Merger.

         5.  Directors. Immediately after the Merger, the directors of the
Surviving Corporation shall be the following persons, who shall serve in
accordance with the Bylaws of the Surviving Corporation:

             Michael Ashker
             Alvin H. Clemens
             Henry G. Hagar
             Patrick J. McLaughlin
             Edward W. LeBaron, Jr.
             Gregory T. Mutz
             Dennis B. Maloney
             James W. McLane

         6.  Officers. Immediately after the Merger, the officers of the
Surviving Corporation shall be the following persons, who shall serve in
accordance with the Bylaws of the Surviving Corporation:

<TABLE>
<CAPTION>
<S>                                            <C>
             Michael Ashker                     President and Chief Executive Officer
             Alvin H. Clemens                   Chairman
             Anthony R. Verdi                   Treasurer and Chief Financial Officer
             Andrew Felder                      Executive Vice President - Corporate Development
             Dennis B. Maloney                  Chief Operating Officer
             Michael G. Hankinson               Secretary

</TABLE>

         7.  Conversion into HAI Stock. Subject to the possible adjustment
described in Section 9 of this Plan, on the Effective Date, each share of common
stock, no par value per share, of HealthAxis ("HealthAxis Common Stock") issued
and outstanding immediately before the Effective Date (except for Dissenting
Shares, as defined in Section 14 of this Plan) shall, by virtue of the Merger
and without any action on the part of the holder thereof, be automatically
converted into the right to receive 1.334 shares (the "Exchange Ratio") of
common stock of HAI, $0.10 par value per share ("HAI Stock").

         Prior to the Effective Date, all outstanding shares of HealthAxis
Series A Convertible Preferred Stock, Series B Convertible Preferred Stock,
Series C Convertible Preferred Stock and Series D Preferred Stock (collectively,
"HealthAxis Convertible Preferred Stock") shall have been converted into
HealthAxis Common Stock in accordance with their terms.

         The outstanding shares of Newco shall not be affected by the Merger.

         8.  Cancellation. On the Effective Date, all outstanding shares of
HealthAxis Common Stock owned by HAI or Newco or any subsidiary thereof shall,
by virtue of the Merger and without any action on the part of the holders

                                       2
<PAGE>

thereof, no longer be outstanding and shall be canceled and retired and shall
cease to exist, and each holder of a certificate representing any such shares of
HealthAxis Common Stock shall thereafter cease to have any rights with respect
to such shares of HealthAxis Common Stock and no consideration shall be
delivered in exchange therefor.

         9.  Possible Adjustment due to Recapitalization. Subject to the
conditions in the Agreement and Plan of Reorganization if, between the date of
the Reorganization Agreement and the Effective Date, there is a change in the
number of issued and outstanding shares of HAI Stock resulting from (i) a stock
split, reverse stock split, stock dividend, reclassification, exchange of shares
or similar recapitalization, or (ii) purchases or awards of stock, or similar
transactions under HAI's stock option, purchase and award plans, then the number
of shares of HAI Stock into which the respective shares of HealthAxis Common
Stock are converted, and any other applicable amounts set forth in this Plan,
shall be appropriately adjusted. Subject to the conditions in the Agreement and
Plan of Reorganization, the Exchange Ratio set forth in Section 7 and such other
amounts shall not be adjusted as a result of any other changes in the number of
issued and outstanding shares of HAI Stock, such as changes resulting from
acquisitions or offerings or changes resulting from exercises of employee stock
options under HAI's stock option, purchase and award plans.

         10. No Fractional Shares. No fractional shares of HAI Stock shall be
issued as a result of the Merger. In lieu of the issuance of fractional shares,
the number of shares of HAI Stock to be issued to each shareholder of HealthAxis
in accordance with this Plan shall be rounded down to the nearest whole number
of shares of HAI Stock and any such shareholder who would otherwise be entitled
to receive a fraction of a share of HAI Stock (after aggregating all fractional
shares of HAI Stock issuable to such shareholder) shall, in lieu of such
fraction of a share and, upon surrender of such shareholder's certificate(s)
representing shares of HealthAxis Common Stock, be paid in cash the dollar
amount (rounded to the nearest whole cent), without interest, determined by
multiplying such fraction by the closing sale price of a share of HAI Stock as
quoted on the Nasdaq National Market or the NASDAQ SmallCap Market, as
applicable on the Effective Date.

         11. Stock Options, Warrants and Other Rights. HealthAxis' 1998 Stock
Option Plan (the "Stock Plan") and all options to acquire shares of HealthAxis
Common Stock that are issued and outstanding under the Stock Plan immediately
before the Effective Date of which options to purchase 3,024,971 are outstanding
on the date hereof, 300,000 shares of Common Stock issuable upon the exercise of
warrants granted to America Online, Inc., 63,000 shares of Common Stock issuable
upon the exercise of the warrants granted to ING Baring Furman Selz LLC; up to
150,000 shares of Common Stock issuable upon the exercise of warrants granted to
Aetna/US HealthCare; 157,500 shares of Common Stock issuable upon the exercise
of warrants granted to UICI; up to 50,000 shares of Common Stock issuable upon
the exercise of the warrant granted to First Health Group Corp.; 75,000 shares
of Series D Preferred Stock which is subject to a proposed amendment to convert
the Series D Preferred Stock to Common Stock issuable upon the exercise of
warrants granted to Intel Corp.; up to 330,000 shares of Common Stock issuable
upon the exercise of warrants granted to Blue Cross/Blue Shield; and 426,930
shares of Common Stock subject to options to be issued as a result of the
conversion of options granted pursuant to the Insurdata 1999 Stock Option Plan
immediately before the Effective Date (collectively, the "Options"), shall
continue in effect, as an option plan of HAI or as options, warrants or rights
issued by HAI, as the case may be, in accordance with the terms and conditions
by which they are governed immediately before the Effective Date, subject to the
adjustments set forth in the next sentence. On the Effective Date, each Option
or Warrant shall, by virtue of the Merger and without any action on the part of
the holder thereof, be automatically adjusted to provide that (a) the number and
type of shares issuable upon exercise of such Option or Warrant shall be that

                                       3
<PAGE>

number of shares of HAI Stock (rounded down to the nearest whole number of
shares) equal to the number of shares of HealthAxis Common Stock issuable upon
exercise of such Option or Warrant immediately before the Effective Date,
multiplied by the Exchange Ratio, and (b) the exercise price per share of HAI
Stock under such Option or Warrant shall be that amount (rounded up to the
nearest whole cent) equal to the exercise price per share of HealthAxis Common
Stock under such Option immediately before the Effective Date, divided by the
Exchange Ratio.

         12. HealthAxis Stock held by HealthAxis. On the Effective Date, any
shares of HealthAxis Common Stock and HealthAxis Convertible Preferred Stock
(collectively, "HealthAxis Stock") that are held by HealthAxis (as treasury
shares) immediately before the Effective Date shall, by virtue of the Merger and
without any action on the part of the holder thereof, be automatically canceled
and return to the status of authorized and unissued common stock.

         13. Exchange Procedures for HealthAxis Stock. HAI shall designate its
transfer agent to act as the "Exchange Agent" under this Plan. As soon as is
practicable after the Effective Date, HAI or the Exchange Agent shall mail or
deliver, to each record holder of an outstanding certificate that immediately
before the Effective Date represented shares of HealthAxis Stock, instructions
for use in effecting the surrender of such certificate to the Exchange Agent.
Upon the surrender of such certificate to the Exchange Agent in accordance with
such instructions, the Exchange Agent shall exchange such certificate for a new
certificate representing such number of shares of HAI Stock into which the
shares of HealthAxis Stock represented by such certificate have been converted
in accordance with this Plan (and cash in lieu of any fractional share of
HealthAxis Stock), which shall be promptly delivered to the holder thereof (or
in accordance with instructions provided by the holder thereof). If applicable,
such certificates shall be accompanied by any distributions due with respect to
shares of HAI Stock that were paid to HAI's shareholders of record as of a date
between the Effective Date and the date of distribution of such certificates.
Until surrendered in accordance with the foregoing, each outstanding certificate
that immediately before the Effective Date represented shares of HealthAxis
Common Stock shall be deemed to evidence ownership of the number of shares of
HAI Stock into which the shares of HealthAxis Stock represented by such
certificate have been converted in accordance with this Plan.

<PAGE>

         14. Dissenting Shares.

             (a) Notwithstanding any other provisions of this Plan to the
contrary, shares of HealthAxis Stock which are outstanding immediately prior to
the Effective Date and which are held by shareholders of HealthAxis who shall
have not voted in favor of the Merger or consented thereto in writing and who
shall have demanded properly in writing appraisal for such shares (collectively,
the "Dissenting Shares") in accordance with Section 1571, et seq., of the BCL
(each a "Dissenting Shareholder" and collectively, the "Dissenting
Shareholders") shall not be converted into or represent the right to receive any
HAI Stock, such shareholders being entitled to receive payment of the appraised
value of such shares of HAI Stock held by them in accordance with the provisions
of such Section 1571, et seq., of the BCL, except that all Dissenting Shares
held by shareholders who shall have failed to perfect or shall have effectively
withdrawn or lost their rights to appraisal of such shares of HealthAxis Stock
in accordance with the provisions of Section 1571, et seq., of the BCL shall
thereupon be deemed to have been converted into and to have become exchangeable,
as of the Effective Date, for the right to receive HAI Stock in accordance with
Section 7 hereof, without interest thereon.

                                       4
<PAGE>

             (b) HealthAxis shall give HAI (i) prompt notice of any written
demands for payment or appraisal of any Dissenting Shares pursuant to Section
1571, et seq., of the BCL, attempted withdrawals of such demands, and any other
instruments served pursuant to the BCL and received by HealthAxis relating to
shareholders' rights to dissent and (ii) the opportunity to participate, at its
expense, in all negotiations and proceedings with respect to demands for payment
or appraisal under Section 1571, et seq., of the BCL. HealthAxis shall not,
without the prior written consent of HAI, voluntarily make any payment with
respect to any demands for payment or appraisals of the capital stock of
HealthAxis, offer to settle or settle any demands.

         15. Effective Date. As used in this Plan, the "Effective Date" shall
mean the date upon which this Plan and a proper Articles of Merger for the
Merger have been duly signed and filed with the proper officials of the
Commonwealth of Pennsylvania.

         16. Entire Understanding. This Plan, together with the Reorganization
Agreement (and the Exhibits and Schedules thereto) by and between HAI, Newco and
HealthAxis, states the entire understanding among the parties hereto with
respect to the subject matter hereof and supersedes all prior oral and written
communications and agreements, and all contemporaneous oral communications and
agreements, with respect to the subject matter hereof. No amendment or
modification of this Plan, and no waiver of any provision of this Plan, shall be
effective unless in writing and signed by the party against whom enforcement is
sought. HealthAxis may agree to any amendment or supplement to this Plan, or a
waiver of any provision of this Plan, either before or after the approval of
HealthAxis' shareholders is obtained (as contemplated by the Reorganization
Agreement) and without seeking further shareholder approval, so long as such
amendment, supplement or waiver does not result in a decrease in the Exchange
Ratio set forth in Section 7 of this Plan, or have a material adverse effect on
HealthAxis' shareholders. The obligations of the parties under this Plan shall
be subject to all of the terms and conditions of the Reorganization Agreement.
If the Reorganization Agreement is terminated in accordance with its terms, then
this Plan shall simultaneously terminate, and the Merger shall be abandoned
without further action by the parties hereto.

         17. Parties in Interest. This Plan shall bind, benefit and be
enforceable by and against the parties hereto and their respective successors
and assigns. No party hereto shall in any manner assign any of its rights or
obligations under this Plan without the express prior written consent of the
other parties. Nothing in this Plan or the Reorganization Agreement is intended
to confer, or shall be deemed to confer, any rights or remedies upon any persons
other than the parties hereto and their respective shareholders and directors.

         18. Severability. If any provision of this Plan is construed to be
invalid, illegal or unenforceable, then the remaining provisions hereof shall
not be affected thereby and shall be enforceable without regard thereto.

         19. Counterparts. This Plan may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original
hereof, and it shall not be necessary in making proof of this Plan to produce or
account for more than one counterpart hereof.

         20. Section Headings. Section and subsection headings in this Plan are
for convenience of reference only, do not constitute a part of this Plan, and
shall not affect its interpretation.

         21. References. All words used in this Plan shall be construed to be of
such number and gender as the context requires or permits.

                        [Signatures Appear on Next Page]

                                       5
<PAGE>

         IN TESTIMONY WHEREOF, each undersigned corporation has caused this
Agreement and Plan of Merger to be signed by a duly authorized officer as of the
date first stated above.

HEALTHAXIS.COM, INC.

By:/s/ Michael Ashker
   --------------------------------------------
   Name: Michael Ashker
   Title: President and Chief Executive Officer

HEALTHAXIS INC.

By:
   --------------------------------------------
   Name:
   Title:

HEALTHAXIS ACQUISITION CORP.

By:
   --------------------------------------------
   Name:
   Title:

                                       6
<PAGE>

                                                                       Exhibit B

                             Shareholders' Agreement

THIS SHAREHOLDERS' AGREEMENT (this "Agreement"), dated as of ________, 2000, is
by and among HealthAxis Inc., a Pennsylvania corporation (the "Company"), and
the Persons (as defined herein) set forth on the signature pages hereto.

                                    RECITALS

         WHEREAS, the Company, HealthAxis Acquisition Corp., a Pennsylvania
corporation ("Newco"), HealthAxis.com, Inc., a Pennsylvania corporation
("HealthAxis"), and UICI, a Delaware corporation ("UICI"), have entered into an
Amended and Restated Agreement and Plan of Merger, dated as of September __,
2000 (the "Merger Agreement");

         WHEREAS, pursuant to the Merger Agreement, it is contemplated that
certain of the Holders (as hereinafter defined) will acquire shares of the
Company's common stock, no par value (the "Common Stock");

         WHEREAS, it is a condition to the consummation of the transactions
contemplated by the Merger Agreement that the parties hereto enter into this
Agreement;

         WHEREAS, in consideration of the execution and delivery of this
Agreement by the Company, UICI is agreeing to terminate that certain
Shareholders' Agreement dated as of January 7, 2000 by and among HealthAxis, the
Company, UICI and the other parties thereto; and

         WHEREAS, the Holders and the Company wish to record their understanding
regarding certain matters relating to the management of the Company and certain
other matters.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
agreements set forth herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties hereto agree as follows:

         SECTION 1. Definitions. In addition to the capitalized terms defined
elsewhere in this Agreement, the following capitalized terms shall have the
following meanings when used in this Agreement:

             "Beneficial Owner" means any Person deemed to be a "beneficial
owner" of a security as defined in Rule 13d-3 under the Exchange Act. The terms
"Beneficially Own" and "Beneficial Ownership" have correlative meanings.

                                       7
<PAGE>

             "Board" means the Board of Directors of the Company.

             "Commission" means the Securities and Exchange Commission (or any
other governmental body succeeding to the functions of the Securities and
Exchange Commission).

             "Common Stock" has the meaning ascribed to such term in the
Recitals.

             "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

             "Fully Diluted Basis" with respect to any security, means all of
the issued shares of such security and includes, without limitation, (i) all of
the outstanding shares of such security (except shares then held by or for the
account of the issuer or its wholly owned subsidiaries), (ii) any and all shares
of such security issuable upon conversion of securities convertible into such
security, whether or not convertible at such time, and (iii) any and all shares
of such security issuable upon exercise of other exercisable rights to acquire
such security, including options, warrants and participation rights, whether or
not exercisable at such time.

             "Holder" means any holder of Securities who is a party to this
Agreement or who is a successor or assign or subsequent holder as contemplated
by Section 13.

             "Nominee" has the meaning ascribed to such term in Section 2(a).

             "Person" means any individual, corporation, proprietorship, firm,
partnership, limited partnership, limited liability company, trust, association
or other entity.

             "Securities" means Common Stock or shares of capital stock or other
securities, directly or indirectly, exercisable for or convertible into Common
Stock; provided, however, that Securities shall not include any securities which
have been sold (i) pursuant to a registration statement declared effective by
the Commission or (ii) pursuant to Rule 144 promulgated by the Commission under
the Securities Act.

             "Securities Act" means the Securities Act of 1933, as amended.

         SECTION 2.  Board of Directors; Management of the Company.

         (a) The Holders and the Company agree that the Board shall consist of
up to nine (9) members, and the parties hereto shall have the right to nominate
a number of persons (each such person, a "Nominee") to serve as directors on the
Board as follows: (i) UICI shall be entitled to nominate three (3) Nominees
(Patrick McLaughlin, Gregory T. Mutz and Dennis B. Maloney being the initial
UICI Nominees); (ii) the Company (acting by the vote of a majority of the

                                       8
<PAGE>

members of the Board that are not nominated by UICI pursuant to clause (i) or
agreed to by UICI pursuant to clause (iii)) shall be entitled to nominate three
(3) Nominees (Michael Ashker, Alvin H. Clemens and Edward W. LeBaron, Jr. being
the initial Provident Nominees); and (iii) UICI and the Company (acting by the
vote of a majority of the members of the Board that are not nominated by UICI
pursuant to clause (i) or agreed to by UICI pursuant to clause (iii)) shall
together agree mutually to nominate three (3) Nominees (with Henry Hager being
the initial Nominee agreed to by UICI and the Company). The Company and each
Holder agrees to take all actions necessary so as to cause the Nominees to be
elected to the Board including, without limitation, the voting of its shares of
stock of the Company and causing the vote of all shares of stock of the Company
Beneficially Owned by such Holder, the execution of written consents, the
calling of special meetings, the removal of directors, the filling of vacancies
on the Board, and the waiving of notice and the attending of meetings; provided,
however, that UICI shall have no obligation to vote or cause the vote of any
shares of stock of the Company Beneficially Owned by it which shares are subject
to the terms of that certain Voting Trust Agreement, dated as of February 11,
2000 among UICI and Michael Ashker, Edward W. LeBaron, Jr. and Dennis B.
Maloney, as trustees thereunder.

         (b) No party shall nominate any person to the Board if: (i) such
individual is employed by, or has investment interests, directly or indirectly,
in, any material competitor of the Company (unless such investment constitutes
less than two percent (2%) of the equity ownership in a public company and at
the time of purchase has a fair market value of less than $50,000); (ii) such
individual is not reasonably experienced in business, financial, insurance or
e-commerce industry matters; (iii) such individual has been convicted of, or has
pled nolo contendere to, a felony; (iv) the election of such individual would
violate any law; or (v) any event required to be disclosed pursuant to Item
401(f) of Regulation S-K of the Exchange Act has occurred with respect to such
individual.

         (c) A director elected pursuant to this Section 2 shall serve until (i)
his or her term expires as provided in the Company's articles of incorporation
and bylaws, (ii) he or she is removed pursuant to Section (2)(d) or (iii) the
party who nominated such director no longer has the right to nominate a
director, in which case the party so elected shall immediately resign and the
size of the Board shall be decreased accordingly.

         (d) In the event of the death, disability, removal or resignation of
any director designated pursuant to this Section 2, the party that designated
such director shall notify the Company and the other parties hereto, within 30
days after such death, disability, removal or resignation, of a successor
director who shall either (i) be appointed by the remaining directors then in
office to serve the unexpired term of such director or (ii) be elected by the
shareholders pursuant to the Company's bylaws. Each of the Company and UICI
agrees to take all actions necessary to elect any such successor Nominee in the
same manner as discussed in Section 2(a).

                                       9
<PAGE>

         (e) The Board may create committees to assist in governing the Company,
however, no executive committee may be formed without the consent of all of the
members of the Board that are Nominees of either UICI or of the Company.

         (f) So long as this Section 2 remains in effect, the Board nomination
rights of UICI hereunder shall supersede any rights UICI may have to nominate
Board members under any other agreement. After such time as UICI is no longer
entitled under this Section 2 to nominate persons to serve on the Board, the
rights of UICI under any such agreement to nominate Board members shall be
reinstated.

         (g) The rights of UICI under this Section 2 shall continue in effect
unless and until UICI Beneficially Owns less than 20% of the Common Stock of the
Company on a Fully Diluted Basis.

         SECTION 3.  Legend. The Company shall stamp or imprint each certificate
or other instrument representing Securities held by a Holder bound by any terms
of this Agreement, throughout the term of this Agreement, with a legend in
substantially the following form:

         "THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
         PROVISIONS, INCLUDING, AMONG OTHERS, RESTRICTIONS ON VOTING AND
         TRANSFER, SET FORTH IN A SHAREHOLDERS' AGREEMENT DATED AS OF
         _______________ 2000, AS IT MAY BE AMENDED, MODIFIED, SUPPLEMENTED OR
         RESTATED FROM TIME TO TIME, A COPY OF WHICH IS AVAILABLE AT THE
         PRINCIPAL OFFICE OF THE COMPANY."

         SECTION 4.  Approval Rights. In addition to all other rights set forth
in this Agreement, UICI shall, in its sole and absolute discretion, have the
right to approve, alter or prevent the calculation of the amount and the
amortization period of all goodwill and other intangibles recorded by the
Company in connection with the merger of Insurdata Incorporated, a Delaware
corporation, with and into HealthAxis, provided such calculation shall be
consistent with generally accepted accounting principles and approved by the
Company's independent auditors.

         SECTION 5.  Transfer Option.

         (a) Transfer Option. Subject to the terms and conditions in this
Section 5, the Company (acting by the vote of a majority of the members of the
Board that are not nominated by UICI pursuant to clause (i) of Section 2(a) or
agreed to by UICI pursuant to clause (iii) of Section 2(a)) shall have the right
(the "Transfer Option") to cause UICI to transfer to one or more third parties
unaffiliated with UICI, up to 1,414,385 shares of Common Stock owned by UICI at
a per share price equal to the greater of (i) $18.63 and (ii) the Closing Price
(as hereinafter defined). The Transfer Option shall be exercisable one time only

                                       10
<PAGE>

with respect to all such shares of Common Stock and may be exercised at any time
following the date hereof and ending on the first to occur of the following
events: (i) on January 7, 2003; (ii) the ninetieth (90th) day following the date
on which the Closing Price (as hereinafter defined) of shares of Common Stock
shall have been at least $23.96 per share for a period of sixty (60) consecutive
trading days; and (iii) the ninetieth (90th) day following the first date on
which UICI Beneficially Owns less than 40% of the shares of Common Stock on a
Fully Diluted Basis. For purposes hereof, "Closing Price" shall mean the
reported last sale price of a share of Common Stock, on a given day, regular
way, or, in case no such sale takes place on such day, the average of the
reported closing bid and asked prices regular way, in each case on the New York
Stock Exchange Composite Tape, or, if the security is not listed or admitted to
trading on such exchange, on the American Stock Exchange Composite Tape, or, if
the security is not listed or admitted to trading on such exchange, the
principal national securities exchange on which the security is listed or
admitted to trading, or, if the security is not listed or admitted to trading on
any national securities exchange, the closing sales price, or, if there is no
closing sales price, the average of the closing bid and asked prices, in the
over-the-counter market as reported by the National Association of Securities
Dealers Automated Quotation System, or, if not so reported, as reported by the
National Quotation Bureau, Incorporated, or any successor thereof, or, if not so
reported, the average of the closing bid and asked prices as furnished by any
member of the National Association of Securities Dealers, Inc. selected from
time to time by the Company for that purpose or, if no such prices are
furnished, the fair market value of the Common Stock as determined in good faith
by the board of directors of the Company, which determination shall be based
upon recent issuances or current offerings pursuant to bona fide private
offerings of the same class of security by the Company; provided, however, that
any determination of the "Closing Price" of any security hereunder shall be
based on the assumption that such security is freely transferable without
registration under the Securities Act.

         (b) Exercise of Transfer Option. The Company may exercise its rights
under Section 5(a) by giving UICI written notice of its exercise of the Transfer
Option prior to the expiration of the Transfer Option. Such notice shall state
that the Company intends to cause UICI to transfer such shares to one or more
third parties unaffiliated with UICI. Upon the closing of the transactions
contemplated by an exercise of the Transfer Option, UICI shall surrender its
shares of Common Stock, duly endorsed for transfer, to the Company or the
Persons purchasing such securities, in exchange for the net proceeds from such
transfer. The closing of the transactions upon the exercise of the Transfer
Option shall occur within ninety (90) days of the exercise thereof by the
Company.

         (c) Transfer to Third Parties. Any exercise by the Company of its
Transfer Option in which the Company elects to cause UICI to transfer shares of
Common Stock to one or more Persons unaffiliated with UICI shall be governed by
the following terms. The Company may elect to cause the transfer of shares
pursuant to this Section 5(c) in a private placement, in which case the

                                       11
<PAGE>

provisions of Section 5(c)(i) shall apply, or may elect to cause the shares to
be sold in a public offering, in which case the provisions of Section 5(c)(ii)
shall apply.

                  (i)   Private Placement. Upon any exercise of the Transfer
         Option in accordance with this Section 8(c) as to which the Company has
         elected to cause a transfer of shares in a private placement, the
         Company shall, as expeditiously as possible:

                        (A) prepare a private placement memorandum, together
                  with such amendments and supplements thereto as may be
                  necessary to comply with the provisions of the Securities Act
                  with respect to the sale or other disposition of all shares of
                  Common Stock covered by such private placement memorandum;

                        (B) use its reasonable efforts to perfect exemptions for
                  the shares of Common Stock covered by such private placement
                  memorandum under all applicable rules and regulations of the
                  Commission and such other securities or blue sky laws of such
                  jurisdictions as UICI shall request, and do any and all other
                  acts and things reasonably requested by UICI to permit UICI to
                  consummate the sale or other disposition in such jurisdictions
                  of such shares, except that the Company shall not for any such
                  purpose be required to qualify to do business as a foreign
                  corporation in any jurisdiction wherein it is not so qualified
                  or to file therein any general consent to service of process;

                        (C) enter into and perform its obligations under a
                  private placement agency agreement, in usual and customary
                  form, with a placement agent acceptable to UICI, including,
                  without limitation, to obtain an opinion of counsel to the
                  Company in the usual and customary form for such private
                  placement; and

                        (D) notify UICI, at any time when a private placement
                  memorandum is required to be delivered under the applicable
                  law, of the happening of any event of which it has knowledge
                  as a result of which the private placement memorandum, as then
                  in effect, includes an untrue statement of a material fact or
                  omits to state a material fact required to be stated therein
                  or necessary to make the statements therein not misleading in
                  the light of the circumstances then existing.

                  (ii)  Public Offering. Upon the exercise of the Transfer
         Option in accordance with this Section 5(c) as to which the Company has
         elected to cause the shares to be sold in a public offering, the
         Company shall, as expeditiously as possible:

                        (A) prepare and file with the Commission a registration
                  statement with respect to such shares of Common Stock and use
                  its reasonable efforts to cause such registration statement to
                  become effective and remain effective for as long as shall be

                                       12
<PAGE>

                  necessary to complete the distribution of the shares of Common
                  Stock so registered;

                        (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;

                        (C) furnish to UICI and any underwriters such numbers of
                  copies of a summary prospectus or other prospectus, including
                  a preliminary prospectus or any amendment or supplement to any
                  prospectus, in conformity with the requirements of the
                  Securities Act, and such other documents, as UICI or the
                  underwriters may reasonably request in order to facilitate the
                  public sale or other disposition of the securities covered by
                  such registration statement;

                        (D) use its reasonable efforts to register and qualify
                  the Common Stock covered by such registration statement under
                  such other securities or blue sky laws of such jurisdictions
                  as UICI or the underwriters shall request, and do any and all
                  other acts and things reasonably requested by UICI or the
                  underwriters to assist them to consummate the public sale or
                  other disposition in such jurisdictions of the Common Stock
                  covered by the registration statement, except that the Company
                  shall not for any such purpose be required to qualify to do
                  business as a foreign corporation in any jurisdiction wherein
                  it is not so qualified or to file therein any general consent
                  to service of process;

                        (E) otherwise use its reasonable efforts to comply with
                  all applicable rules and regulations of the Commission, and
                  make available to its security holders, as soon as reasonably
                  practicable, an earnings statement covering the period of at
                  least twelve months, beginning with the first fiscal quarter
                  beginning after the effective date of the registration
                  statement, which earnings statement shall satisfy the
                  provisions of Section 11(a) of the Securities Act;

                        (F) use its reasonable efforts to list such Common Stock
                  on any securities exchange or interdealer quotation system on
                  which any shares of the Company are then listed, if the
                  listing or quotation of such securities is then permitted
                  under the rules of such exchange or interdealer quotation
                  system;

                        (G) enter into and perform its obligations under an
                  underwriting agreement, in usual and customary form, with the
                  managing underwriter or underwriters selected by UICI of such
                  underwritten offering, including, without limitation, to

                                       13
<PAGE>

                  obtain an opinion of counsel to the Company and a "comfort
                  letter" from the independent public accountants to the Company
                  in the usual and customary form for such underwritten
                  offering;

                        (H) notify UICI, at any time when a prospectus relating
                  thereto covered by such registration statement is required to
                  be delivered under the Securities Act, of the happening of any
                  event of which it has knowledge as a result of which the
                  prospectus included in such registration statement, as then in
                  effect, contains an untrue statement of a material fact or
                  omits to state a material fact required to be stated therein
                  or necessary to make the statements therein not misleading in
                  the light of the circumstances then existing;

                        (I) make the Company's executive officers available to
                  participate in "road show" presentations for such periods and
                  in such places as the underwriters may reasonably request and
                  make the Company's executive officers available at the
                  Company's principal executive offices to discuss the affairs
                  of the Company at times that may be mutually and reasonably
                  agreed upon; and

                        (J) upon the request of UICI, take any and all other
                  actions which may be reasonably necessary to complete the
                  registration and thereafter to complete the distribution of
                  the Common Stock so registered.

                  (iii) Expenses. All expenses of any offering pursuant to a
         Transfer Option under this Section 5 shall be borne by the Company,
         except that UICI shall bear the cost of a reasonable customary
         underwriting commission or discount, brokerage commission or placement
         fee in the event of a successful offering.

         SECTION 6.  Termination. If any Holder shall be in default of its
obligations hereunder and any such default shall continue for a period of 30
days after any other Holder or the Company has given written notice thereof to
such defaulting Holder, then the rights (but not the obligations) under this
Agreement of such defaulting party shall terminate. This Agreement shall
terminate upon the written agreement of each of the parties hereto.

         SECTION 7.  Beneficial Ownership. Each of the Holders Beneficially Own
that number of shares of Common Stock on a Fully Diluted Basis set forth
opposite their respective names on Exhibit A hereto. Each Holder shall promptly
hereafter notify the Company of any changes to its respective Beneficial
Ownership of Common Stock. The Company shall be entitled to rely upon the
amounts set forth in Exhibit A or such notices without incurring any liability
to any other party hereunder. Each Holder shall respond promptly to any request
made by the Company to provide or confirm such Holder's Beneficial Ownership of
Common Stock.

                                       14
<PAGE>

         SECTION 8.  Acknowledgments. Each of the parties hereto acknowledges
that the restrictions, prohibitions and other provisions hereof are reasonable,
fair and equitable in scope, terms and duration, are necessary to protect the
legitimate business interests of each of the other parties hereto, and are a
material inducement to such party to enter into the transactions contemplated by
this Agreement.

         SECTION 9.  Expenses. Except as otherwise specifically provided in this
Agreement, each party hereto shall bear its own costs and expenses with respect
to the transactions contemplated hereby.

         SECTION 10. Remedies. Each of the parties to this Agreement shall be
entitled to enforce its rights under this Agreement specifically, to recover
damages by reason of any breach of any provision of this Agreement and to
exercise all other rights existing in its favor. The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of competent jurisdiction for specific performance or
injunctive relief in order to enforce or prevent any violations of the
provisions of this Agreement. The remedies provided in this Agreement shall be
cumulative and shall not preclude the assertion or exercise of any other rights
or remedies available by law, in equity or otherwise.

         SECTION 11. Notices. Any notice, request, instruction or other document
to be given hereunder shall be in writing and shall be deemed to have been given
(a) when received if given in person or by courier or a courier service, (b) on
the date of transmission if sent by facsimile or other wire transmission or (c)
three business days after being deposited in the U.S. mail, certified or
registered mail, postage prepaid, addressed as specified with respect to such
Holder in Exhibit A or to such other individual or address as a party hereto may
designate for itself by notice given as herein provided.

         SECTION 12. Amendments and Waivers. The provisions of this Agreement
may be amended or waived only upon the written agreement of each of the parties
hereto; provided, however, that amendments to Sections 2 and 5 may be made upon
the written agreement of both UICI and the Company and no other party. Any
waiver, permit, consent or approval of any kind or character of any provision or
condition of this Agreement must be made in writing and shall be effective only
to the extent specifically set forth in writing. Any amendment or waiver
effected in accordance with this Section 12 shall be binding upon the Company
and each Holder of Securities. Any determination by the Company pursuant to this
Section 12 shall be made by the Company acting by the vote of a majority of the
members of the Board that are not nominated by UICI pursuant to clause (i) of
Section 2(a) or agreed to by UICI pursuant to clause (iii) of Section 2(a).

                                       15
<PAGE>

         SECTION 13. Successors and Assigns. All covenants and agreements in
this Agreement by or on behalf of any of the parties hereto shall bind and inure
to the benefit of the respective successors and assigns of the parties hereto,
and each transferee of all or any portion of the Securities held by the parties
hereto, whether so expressed or not. Each Permitted Transferee of all or any
portion of the Securities held by any of the parties hereto shall execute and
deliver a written assumption agreement to the Company agreeing to be bound by
the provisions of this Agreement, in form and substance reasonably acceptable to
the Company. Notwithstanding the foregoing, except as specifically provided in
this Agreement, no assignment of any rights or obligations under this Agreement
may be made by any party.

         SECTION 14. Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be prohibited
by or invalid under applicable law, such provision shall be ineffective only to
the extent of such prohibition or invalidity, and the remainder of this
Agreement shall remain operative and in full force and effect. The parties shall
negotiate in good faith a replacement clause or provision as consistent with the
ineffective clause or provision as is practicable under law.

         SECTION 15. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE COMMONWEALTH OF PENNSYLVANIA,
WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS.

         SECTION 16. Entire Understanding. This Agreement sets forth the entire
agreement and understanding of the parties hereto with respect to the matters
set forth herein and supersedes any and all prior agreements, arrangements and
understandings among the parties.

         SECTION 17. Execution in Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, and such counterparts together shall constitute one
instrument. Transmission by facsimile of an executed counterpart of this
Agreement shall constitute due and sufficient delivery of this Agreement.

         SECTION 18. Interpretation. The headings preceding the Sections
included in this Agreement and the headings to Exhibits and Schedules attached
to this Agreement are for convenience only and shall not be deemed part of this
Agreement or be given any effect in interpreting this Agreement. The use of the
masculine, feminine or neuter gender herein shall not limit any provision of
this Agreement. The use of the terms "including" or "include" shall in all cases
herein mean "including, without limitation" or "include, without limitation",
respectively. Underscored references to Sections or Schedules shall refer to
those portions of this Agreement.

                                       16
<PAGE>

         SECTION 19. No Third Party Beneficiaries. This Agreement is solely for
the benefit of the parties hereto and no provision of this Agreement shall be
deemed to confer upon other third parties any remedy, claim, liability,
reimbursement, cause of action or other right.

         SECTION 20. Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE
LAW, THE PARTIES HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

         SECTION 21. No Presumption Against Drafter. Each of the parties hereto
has jointly participated in the negotiation and drafting of this Agreement. In
the event of any ambiguity or a question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by each of the parties
hereto and no presumptions or burdens of proof shall arise favoring any party by
virtue of the authorship of any of the provisions of this Agreement.

                  [Remainder of page intentionally left blank]

                                       17
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the date first above written.

                                            UICI

                                         By: ___________________________________

                                         Name:__________________________________

                                         Title:_________________________________

                                         HEALTHAXIS INC.

                                         By: ___________________________________

                                         Name:__________________________________

                                         Title:_________________________________

                                         ---------------------------------------
                                         Michael Ashker

                                         ---------------------------------------
                                         Alvin H. Clemens

                                       18
<PAGE>

                                    EXHIBIT A

                      Common Stock on a Fully Diluted Basis

<TABLE>
<CAPTION>
------------------------------------------ ---------------------------------- --------------------------------------
                                                    Number of Shares
                                                    of Common Stock                  Percentage of Shares of
                                                  Beneficially Owned                Common Stock Outstanding
                Name and                       on a Fully Diluted Basis             on a Fully Diluted Basis
             Notice Address
<S>                                      <C>                                    <C>    <C>    <C>    <C>    <C>
------------------------------------------ ---------------------------------- --------------------------------------
Health Axis Inc.
2500 DeKalb Pike
East Norriton, Pennsylvania 19401
Attn: Alvin H. Clemens
Telephone: (610) 279-2500
Facsimile:  (610) 279-0414

With a copy to:

Michael G. Hankinson
c/o HealthAxis.com, Inc.
2500 DeKalb Pike
East Norriton, PA 19404
Telephone: (610) 279-3561
Facsimile: (610) 279-4498
------------------------------------------ ---------------------------------- --------------------------------------
UICI
4001 McEwen Boulevard
Suite 200
Dallas, Texas 75244
Attn:  Gregory  T. Mutz
Telephone:        (972)392-6700
Facsimile:        (972)392-6717

With a copy to:

Mayer, Brown & Platt
190 S. LaSalle Street
Chicago, Illinois 60603
Attn:    Edward J. Schneidman
Telephone:        (312)701-7348
Facsimile:        (312) 701-7711
------------------------------------------ ---------------------------------- --------------------------------------
Michael Ashker
c/o HealthAxis.com, Inc.
2500 DeKalb Pike
East Norriton, PA 19401
Telephone: (610) 279-3561
Facsimile: (610) 279-4498

With a copy to:

Michael G. Hankinson
c/o HealthAxis.com, Inc.
2500 DeKalb Pike
East Norriton, PA 19401
Telephone: (610) 279-3561
Facsimile: (610) 279-4498
------------------------------------------ ---------------------------------- --------------------------------------
Alvin H. Clemens
c/o HealthAxis Inc.
2500 DeKalb Pike
East Norriton, PA 19401
Telephone: (610) 279-3561
Facsimile: (610) 279-4498

With a copy to:

Stradley Ronan Stevens & Young LLP
2600 One Commerce Square
Philadelphia, PA 19103
Attn:  Richard Weiner
Telephone: (215) 564-8004
Facsimile:  (215) 564-8120
------------------------------------------ ---------------------------------- --------------------------------------
</TABLE>

                                       19
<PAGE>

                                                                       Exhibit C

                               ____________, 2000

HealthAxis, Inc.
2500 DeKalb Pike
East Norriton, PA 19401

Gentlemen:

         This letter is being furnished in accordance with Section 9.1 of the
Amended and Restated Agreement and Plan of Reorganization dated September 29,
2000 ("Reorganization Agreement") by and among HealthAxis.com, Inc., a
Pennsylvania corporation ("HealthAxis"), HealthAxis Inc., a Pennsylvania
corporation ("HAI") and HealthAxis Acquisition Corp., a Pennsylvania corporation
("Newco"), and related Amended and Restated Agreement and Plan of Merger dated
September 29, 2000 ("Merger Agreement") by and among HealthAxis, HAI and Newco,
pursuant to which (i) HealthAxis will be merged with and into Newco with Newco
surviving the merger as a wholly-owned subsidiary of HAI (the "Merger"), and
(ii) the shareholders of HealthAxis will receive for each share of common stock,
no par value per share, of HealthAxis ("HealthAxis Common Stock") issued and
outstanding immediately before the Effective Date shares of common stock of HAI,
$0.10 par value per share ("HAI Stock"), in accordance with the Merger
Agreement. Any shares of HAI Stock that I receive, directly or indirectly,
pursuant to the Merger are referred to herein as the "New Shares". Capitalized
terms used in this letter have the meaning ascribed to them in the
Reorganization Agreement and the Merger Agreement unless otherwise stated
herein.

         In connection therewith, and intending to be legally bound, I hereby
represent, warrant, covenant and agree as follows:

         1.  I own beneficially or of record, in the capacities indicated, the
number of shares of HealthAxis Stock set forth on Appendix A attached hereto
(the "Existing Shares"). Any shares of HealthAxis Stock that I acquire, directly
or indirectly, after the date hereof shall be deemed Existing Shares for the
purposes of this Agreement.

         2.  I have been advised that I may be deemed to be an "affiliate" of
HealthAxis, as that term is defined for purposes of Rule 145 of the Rules and
Regulations (the "Rules and Regulations") of the Securities and Exchange
Commission (the "Commission") under the Securities Act of 1933, as amended (the
"Act").

         3.  I shall not make any sale, transfer or other disposition of the HAI
Stock in violation of the Act or the Rules and Regulations.

                                       1
<PAGE>

         4.  I have read carefully this letter and discussed applicable
limitations upon my ability to sell, transfer or otherwise dispose of the New
Shares to the extent I believed necessary with my counsel or counsel for
HealthAxis.

         5.  I have been advised that the issuance of the New Shares to me
pursuant to the Merger will be registered with the Commission under the Act on a
Registration Statement on Form S-4. However, I have also been advised that,
since at the time the Merger will be submitted for a vote of the stockholders of
HealthAxis and HAI, I may be deemed to have been an affiliate of HealthAxis and
that any subsequent distribution by me of the New Shares has not been registered
under the Act, I may not sell, transfer or otherwise dispose of the New Shares
issued to me in the Merger unless (i) such sale, transfer or other disposition
has been registered under the Act, (ii) such sale, transfer or other disposition
is made in conformity with the volume and other limitations of Rule 145
promulgated by the Commission under the Act or (iii) in the opinion of counsel
reasonably acceptable to HAI, such sale, transfer or other disposition is
otherwise exempt from registration under the Act.

         6.  I understand that HAI may give stop transfer instructions to its
transfer agent with respect to the New Shares and that HAI reserves the right to
place on the certificates for the New Shares issued to me, or any substitutions
therefor, a legend stating in substance:

             "The securities represented by this certificate have been issued in
             a transaction to which Rule 145 promulgated under the Securities
             Act of 1933 applies and may only be sold or otherwise transferred
             in compliance with the requirements of Rule 145 or pursuant to a
             registration statement under said Act or an exemption from such
             registration."

         7.  Execution of this letter should not be considered an admission that
I am an affiliate of HealthAxis as described in paragraph 2 of this letter, nor
as a waiver of any rights I may have to object to any claim that I am such an
affiliate on or after the date of this letter.

         8.  This Agreement shall be binding on me, my heirs and my personal
representatives and shall be enforceable by HAI and its respective successors
and assigns. This Agreement may not be amended, supplemented, or waived or
terminated except by a written instrument executed by me and HAI. THIS AGREEMENT
IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS
OF THE COMMONWEALTH OF PENNSYLVANIA APPLICABLE TO AGREEMENTS MADE AND TO BE
PERFORMED SOLELY THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF
LAW.

         9.  I hereby irrevocably consent to the exclusive jurisdiction and
venue of the federal and state courts in Philadelphia, Pennsylvania and
irrevocably consent to service of process by first class mail, return receipt
requested, postage pre-paid, to my address set forth below. The prevailing party
in any action shall be entitled to recover reasonable legal fees and costs from
the other party.

         10. If any provision of this Agreement is construed to be invalid,
illegal or unenforceable as to any party or generally, then that provision shall
be enforceable by the other parties and the remaining provisions hereof shall
not be affected thereby and shall be enforceable without regard thereto.

                                       2
<PAGE>

         11. I have carefully read this letter, the Reorganization Agreement,
and the Merger Agreement, and, to the extent I felt necessary, discussed with my
counsel or counsel for HAI the requirements of this letter and its impact upon
my ability to acquire or dispose of, as the case may be, the New Shares or
shares of HAI Stock or HealthAxis Stock or securities convertible into such
shares.

                                            Very truly yours,

                                            ____________________________________
                                            (Signature)

                                            ____________________________________
                                            Print Name

                                            ____________________________________
                                            Street Address

                                            ____________________________________
                                            City, State and Zip Code

                                       3
<PAGE>

                                   APPENDIX A

<TABLE>
<CAPTION>

      Number and Type of HealthAxis Stock Owned             Name or Capacity in which Owned
              Beneficially or of Record                         Beneficially or of Record
<S>                                                                       <C>
----------------------------------------------------    --------------------------------------------------------
</TABLE>

<PAGE>
                                                                       Exhibit D

                                 HEALTHAXIS INC.

                 Amended and Restated Articles of Incorporation

         Article 1.  Name.  The name of the corporation is HealthAxis Inc.
(the "Corporation").

         Article 2.  Registered Office.  The location and address of the
registered office of the Corporation in this Commonwealth is:

                           2500 DeKalb Pike
                           East Norriton, PA 19401

         Article 3. Purpose.  The Corporation is incorporated under the
Pennsylvania Business Corporation Law of 1988, as it may be amended from time to
time, for the following purposes:

                  To have unlimited power to engage in or do any lawful act
                  concerning any or all lawful businesses for which corporations
                  may be incorporated under the Pennsylvania Business
                  Corporation Law of 1988, as amended from time to time.

         Article 4.  Term.  The term for which the Corporation is to exist
 is perpetual.

         Article 5. Authorized Capital Stock. The Corporation shall have the
authority to issue an aggregate of 2,000,000,000 shares of capital stock which
shall be divided into 1,900,000,000 shares of Common Stock, par value $0.10 per
share ("Common Stock"), as more fully described in Section 5(a) below; and
100,000,000 shares of Preferred Stock, par value $1.00 per share ("Preferred
Stock"), as more fully described in Section 5(b) below.

                  (a) Common Stock. Each holder of record of Common Stock shall
have the right to one vote for each share of Common Stock registered in their
name on the books of the Corporation except as the right to exercise such vote
may be limited by the provisions of these Amended and Restated Articles of
Incorporation or any class or series of Preferred Stock established hereunder.
The holders of Common Stock shall be entitled to such dividends as may be
declared by the Board of Directors from time to time, provided that required
dividends, if any, on the Preferred Stock have been paid or provided for. In the
event of the liquidation, dissolution, or winding up, whether voluntary or
involuntary of the Corporation, the assets and funds of the Corporation
available for distribution to shareholders, and remaining after the payment to
holders of Preferred Stock of the amounts (if any) to which they are entitled,
shall be divided and paid to the holders of the Common Stock according to their
respective shares.

                  (b) Preferred Stock. The shares of Preferred Stock may be
divided and issued from time to time in one or more series as may be determined
by the Board of Directors of the Corporation, each such series to be distinctly
designated and to consist of the number of shares determined by the Board of
Directors. The Board of Directors of the Corporation is hereby expressly vested
with authority to adopt resolutions to issue the shares, to fix the number of
shares, to change the number of shares constituting any class or series, and to
provide for or change the voting powers, designations, preferences and relative,
participating, optional or other special rights, qualifications, limitations or
restrictions, if any, of Preferred Stock, and each class or series thereof, in
each case without approval of the shareholders. The authority of the Board of
Directors with respect to each class or series of Preferred Stock shall include,
without limiting the generality of the foregoing, the determination of the
following:

                                        1

<PAGE>

                           (1) The number of shares constituting that class or
         series and the distinctive designation of that class or series;

                           (2) The dividend rate on the shares of that class or
         series, whether dividends shall be cumulative, and, if so, from which
         date or dates;

                           (3) Whether that class or series shall have voting
         rights, in addition to any voting rights provided by law, and, if so,
         the terms of such voting rights;

                           (4) Whether that class or series shall have
         conversion privileges (including rights to convert such class or series
         into the capital stock of the Corporation or any other entity) and, if
         so, the terms and conditions of such conversion, including provision
         for adjustment of the conversion rate in such events as the Board of
         Directors shall determine;

                           (5) Whether or not shares of that class or series
         shall be redeemable and whether or not the Corporation or the holder
         (or both) may exercise the redemption right, including the terms of
         redemption (including any sinking fund provisions), the date or dates
         upon or after which they shall be redeemable, and the amount per share
         payable in case of redemption, which amount may vary under different
         conditions;

                           (6) The rights of the shares of that class or series
         in the event of voluntary or involuntary liquidation, dissolution or
         winding up of the Corporation; and

                           (7) Any other relative rights, preferences and
         limitations of that class or series as may be permitted or required by
         law.

The number of shares, voting powers, designations, preferences and relative,
participating, optional or other special rights, qualifications, limitations or
restrictions, if any, of any class or series of Preferred Stock which may be
designated by the Board of Directors may differ from those of any and all other
class or series at any time outstanding.

                  (c) Increase in Authorized Preferred Stock. Except as
otherwise provided by law or in a resolution or resolutions establishing any
particular series of Preferred Stock, the aggregate number of authorized shares
of Preferred Stock may be increased by an amendment to these Amended and
Restated Articles of Incorporation approved solely by the holders of Common
Stock and of any series of Preferred Stock which is entitled pursuant to its
voting rights designated by the Board of Directors to vote thereon, if at all,
voting together as a class.

                                        2

<PAGE>

                  (d) Authorization of Board to Set Terms in Respect of
Corporation's Securities. To the fullest extent permitted by applicable law, the
Board of Directors may set forth in any security, contract, warrant or other
instrument evidencing any shares, option or warrant rights, or securities having
conversion or option or warrant rights, such terms as it deems appropriate
including, without limiting the generality of such authority, conditions that
preclude or limit any Person (as defined in Article 17) or any transferee(s)
(either direct or remote) of such Person from (i) owning or offering to acquire
a specified number or percentage of the outstanding common shares, other shares,
option or warrant rights, securities having conversion or option or warrant
rights, or obligations of the Corporation or (ii) from exercising, converting,
transferring or receiving the shares, option or warrant rights, securities
having conversion or option or warrant rights, or obligations, and which
invalidate any rights or options or warrants beneficially owned by such Person
or any transferee(s) (either direct or remote) of such Person. This subsection
(d) of Article 5 is intended to validate, to the extent permitted by applicable
law, the adoption by the Board of Directors of shareholder rights plans or
so-called "poison pills," including both call and put "poison pills." Nothing
contained herein shall be deemed to limit or restrict the powers of the Board of
Directors as provided in the Pennsylvania Business Corporation Law of 1988, as
amended, or otherwise in Pennsylvania law.

         Article 6. Cumulative Voting. The shareholders of the Corporation shall
not be entitled to cumulate their votes in the election of directors.

         Article 7. Number of Directors. The Board of Directors shall consist of
not less than three (3) nor more than twelve (12) directors. The number of
directors to be elected, subject to the foregoing limits, shall be determined
from time to time by the Board of Directors.

         Article 8. Special Meetings of Shareholders. The shareholders of the
Corporation shall not be entitled to call a special meeting of the shareholders
of the Corporation.

         Article 9. Actions By Consent of Shareholders. The provisions of
Section 1766(b) of the Pennsylvania Business Corporation Law of 1988, as
amended, shall be applicable to any action by the shareholders which has been
previously approved by the Board of Directors, but shall not otherwise be
applicable to the Corporation.

         Article 10. Non-Applicability of Certain Provisions of the Pennsylvania
Business Corporation Law. The provisions contained in Subchapters E (Control
Transactions), G (Control- Share Acquisitions), H (Disgorgement by Certain
Controlling Shareholders Following Attempts to Acquire Control), I (Severance
Compensation for Employees Terminated Following Certain Control- Share
Acquisitions) and J (Business Combination Transactions - Labor Contracts) of
Chapter 25 of the Pennsylvania Business Corporation Law, as it may be amended,
shall not be applicable to the Corporation. The provisions of Section 2538 of
the Pennsylvania Business Corporation Law, as it may be amended, shall not be
applicable to the Corporation, unless at least a majority of the incumbent
directors (as defined herein) on the Board of Directors shall determine that
Section 2538, subject to such exceptions, limitations and modifications as such
incumbent directors may provide, shall be applicable. The term "incumbent
director", as used herein, shall mean any director of the Corporation on the
date hereof and any other director whose election or appointment by the Board of
Directors of the Corporation, or whose nomination for election by the
shareholders of the Corporation, was approved by a vote of at least a majority
of the directors then in office who either were directors on the date hereof or
whose election or appointment or nomination for election was previously so
approved.

                                        3
<PAGE>

         Article 11. Power of Board to Oppose Certain Transactions.

                  (a) The Board of Directors, if it deems it advisable, may
oppose a tender offer or other offer for the Corporation's securities, whether
the offer is in cash or in securities of a corporation or otherwise. In
considering whether to oppose an offer, the Board of Directors may, but it is
not legally obligated to, consider any pertinent issues. By way of illustration,
but not of limitation, the Board of Directors may, but shall not be legally
obligated to, consider any and all of the following:

                  (1) Whether the offer price is acceptable based on the
         historical and present operating results or financial conditions of the
         Corporation;

                  (2) Whether a more favorable price could be obtained for the
         Corporation's securities in the future;

                  (3) The effects of any proposed transaction upon any or all
         groups affected by such action, including among others, shareholders,
         employees, suppliers, customers and creditors of the Corporation and
         its subsidiaries and on the communities served by the Corporation and
         its subsidiaries;

                  (4) The reputation and business practices of the offeror and
         its management and affiliates as they would affect the employees,
         suppliers and customers of the Corporation and its subsidiaries and the
         future value of the Corporation's stock;

                  (5) The value of the securities, if any, which the offeror is
         offering in exchange for the Corporation's securities, based on an
         analysis of the worth of the Corporation as compared to the corporation
         or other entity whose securities are being offered; and

                  (6) Any antitrust or other legal and regulatory issues that
         are raised by the offer.

If the Board of Directors determines that an offer should be rejected, it may
take any lawful action to accomplish its purpose including, but not limited to,
any and all of the following: advising shareholders not to accept the offer;
commencing litigation against the offeror; filing complaints with all
governmental and regulatory authorities; acquiring the Corporation's securities
and/or the offeror's securities; selling or acquiring any assets; selling or
otherwise issuing authorized but unissued securities or treasury stock or
granting options with respect thereto; selling or otherwise issuing any debt
securities (including debt securities convertible into equity securities) or
options therefor; acquiring a company to create an antitrust or other regulatory
problem for the offeror; and obtaining a more favorable offer from another
individual or entity.

                  (b) If the Board of Directors determines to sell the
Corporation or any subsidiary to a third party, or to merge or consolidate the
Corporation or any subsidiary with a third party, the Board of Directors shall
not be legally obligated to create an auction and may negotiate with only one
acquirer.

                                        4
<PAGE>

         Article 12. Removal of Directors. The entire Board of Directors, or a
class of the Board, or any individual director may be removed from office only
for cause (as defined herein) and only by the affirmative vote of shareholders
entitled to cast at least seventy percent (70%) of the votes entitled to be cast
by all shareholders at any annual or regular election of directors or of such
class of directors. The foregoing shall not be deemed to limit the right of the
Board of Directors, without shareholder approval, to declare vacant the office
of any director for any proper cause. The term "cause," as used herein, shall
refer only to one of the following events: (1) conviction of the director of a
felony; (2) declaration by order of court that the director is of unsound mind;
or (3) gross abuse of trust which is proved by clear and convincing evidence to
have been committed in bad faith.

         Article 13. Personal Liability of Directors. A director of this
Corporation shall not be personally liable for monetary damages as such for any
action taken, or any failure to take any action, unless:

                  (a) The director has breached or failed to perform the duties
of his office under Section 1713 of the Pennsylvania Business Corporation Law of
1988, as amended; and

                  (b) The breach or failure to perform constitutes self-dealing,
willful misconduct or recklessness.

         This Article 13 shall not apply to a director's liability for monetary
damages to the extent prohibited by Section 1713(b) of the Pennsylvania Business
Corporation Law of 1988, as amended.

         Article 14. Amendments to Articles of Incorporation. The shareholders
of the Corporation shall not be entitled to propose an amendment to the Articles
of Incorporation of the Corporation. Any amendment to, or repeal of, any
provision of the Articles of Incorporation of the Corporation which has not
previously received the approval of at least a majority of the incumbent
directors (as defined in Article 10) on the Board of Directors shall require for
adoption the affirmative vote of the shareholders entitled to cast at least
sixty-five percent (65%) of the votes entitled to be cast by all shareholders at
any duly convened annual or special meeting of the shareholders, in addition to
any other approval which is required by law, the Articles of Incorporation of
the Corporation, the Bylaws of the Corporation, or otherwise.

         Article 15. Amendments to Bylaws. The Bylaws of the Corporation may be
amended or repealed without shareholder approval by a majority of the incumbent
directors (as defined in Article 10), subject to any other approval which is
required by law, the Articles of Incorporation, the Bylaws of the Corporation,
or otherwise. Any amendment to, or repeal of, any provision of the Bylaws of the
Corporation which has not previously received the approval of at least a
majority of the incumbent directors (as defined in Article 10) on the Board of
Directors shall require for adoption the affirmative vote of the shareholders
entitled to cast at least sixty-five percent (65%) of the votes entitled to be
cast by all shareholders at any duly convened annual or special meeting of the
shareholders, in addition to any other approval which is required by law, the
Articles of Incorporation of the Corporation, the Bylaws of the Corporation, or
otherwise.

         Article 16. Severability. In the event that all, some or any part of
any provision contained in these Amended and Restated Articles of Incorporation
shall be found by any court of competent jurisdiction to be illegal, invalid or
unenforceable (as against public policy or otherwise), such provision shall be
enforced to the fullest extent permitted by law and shall be construed as if it
had been narrowed only to the extent necessary so as not to be invalid, illegal
or unenforceable; the validity, legality and enforceability of the remaining
provisions of these Amended and Restated Articles of Incorporation shall
continue in full force and effect and shall not be affected or impaired by such
illegality, invalidity or unenforceability of any other provision (or any part
or parts thereof) of the Amended and Restated Articles of Incorporation.

                                        5

<PAGE>

         Article 17. Definitions. As used herein, the term "Person" shall mean
any individual, partnership, corporation, group or other entity (other than the
Corporation or any Subsidiary, as defined below, for itself or as a fiduciary
for customers, or a trustee holding Voting Securities for the benefit of the
employees of the Corporation or its Subsidiaries or any one of them, pursuant to
one or more employee benefit plans or arrangements sponsored by the Corporation
or any Subsidiary).

         As used herein, the term "Subsidiary" shall mean any corporation of
which the Corporation owns fifty percent (50%) or more of any class of
securities entitled to vote in the election of directors, either directly or
indirectly, through one or more other corporations.

         Article 18. Headings. Article headings and the ordering of paragraphs
area for convenience of reference only and shall not be construed to alter,
amend or otherwise affect the meaning, intent or effect of the provisions of
these Amended and Restated Articles of Incorporation.

                                        6<PAGE>

                                                                  Execution Copy

                                  AMENDMENT TO
                          SECURITIES PURCHASE AGREEMENT

                  THIS AMENDMENT TO SECURITIES PURCHASE AGREEMENT (this
"Agreement") is dated as of September 28, 2000, among HealthAxis Inc., a
Pennsylvania corporation (the "Company"), and the various purchasers identified
and listed on Schedule I hereto (each referred to herein as a "Purchaser" and,
collectively, the "Purchasers").

                  WHEREAS, pursuant to a Securities Purchase Agreement, dated as
of September 14, 1999, by and among the Company and the purchasers named therein
(the "Purchase Agreement"), the Company issued and sold to certain of the
Purchasers an aggregate of $27,500,000 principal amount of 2% Convertible
Debentures due September 14, 2002 (each, a "Debenture" and collectively, the
"Debentures"), and warrants (each, a "Warrant" and collectively, the "Warrants")
to purchase the Company's common stock, par value $.10 per share (the "Common
Stock");

                  WHEREAS, pursuant to a debenture purchase agreement, dated
even date herewith, by and among the Company and the purchasers named therein,
certain of the Purchasers have agreed to purchase the Debenture issued to Royal
Bank of Canada in connection with the Purchase Agreement;

                  WHEREAS, contemporaneously with the execution and delivery of
the Purchase Agreement, the parties entered into a Registration Rights Agreement
(the "Registration Rights Agreement"), pursuant to which the Company agreed to
provide certain registration rights under the Securities Act of 1933, as amended
(the "Securities Act"), and the rules and regulations promulgated thereunder,
with respect to the Common Stock issuable upon conversion of the Debentures and
exercise of the Warrants;

                  WHEREAS, the Company is currently negotiating an amendment to
the merger agreement (the "Merger Agreement") to be executed in connection with
the merger or reorganization transaction involving the Company and
HealthAxis.com, Inc., pursuant to which each share of common stock of
HealthAxis.com, Inc. shall be exchangeable for between 1.308 to 1.38 shares
shares of Common Stock of the Company (as finally determined be the investment
bankers advising the Company) (the "Reorganization"); and

                  WHEREAS, the parties hereto now desire, upon the effectiveness
of the Reorganization, to amend and restate the Debentures, the Warrants and the
Registration Rights Agreement; and

                  NOW THEREFORE, in consideration of the promises and mutual
covenants and agreements hereinafter, the Company and the Purchasers hereby
agree as follows:

<PAGE>

                                   ARTICLE I.

              SURRENDER AND EXCHANGE OF THE DEBENTURES AND WARRANTS

     1.1 Closing Date. Subject to the terms and conditions set forth herein, the
closing (the "Closing") of the surrender and exchange of the Debentures and
Warrants and the amendment of the Registration Rights Agreement, as contemplated
by this Agreement, shall take place at the offices of Akin, Gump, Strauss, Hauer
& Feld, L.L.P., 590 Madison Avenue, New York, New York 10022, or by transmission
by facsimile and/or overnight courier, on or prior to the fifth (5th) business
day following the date that the majority of the shareholders of the Company
shall have approved the Reorganization, but not prior to the date that the
conditions set forth in Article III have been satisfied or waived by the
appropriate party (such date, the "Closing Date").

     1.2 Surrender and Exchange of the Debenture. On the Closing Date the
Company shall deliver to each of the Purchasers (severally and not jointly) a
revised debenture in the form of Exhibit A annexed hereto (the "Revised
Debenture"), in the identical principal amount as the Debenture currently held
by each such Purchaser (as set forth on Schedule 1 annexed hereto), and each
such Purchaser shall surrender to the Company the Debenture held by such
Purchaser in exchange for such Revised Debenture. For the avoidance of doubt, no
Purchaser shall surrender its Debenture prior to the Closing Date.

     1.3 Surrender and Exchange of the Warrant. On the Closing Date the Company
shall deliver to each of the Purchasers (severally and not jointly) a revised
warrant in the form of Exhibit B annexed hereto (the "Revised Warrant"), which
shall entitle such Purchaser to purchase the number of shares of Common Stock
which may be purchased pursuant to the Warrant currently held by each such
Purchaser (as set forth on Schedule 1 annexed hereto), and each such Purchaser
shall surrender to the Company the Warrant it currently holds in exchange for
such Revised Warrant. For the avoidance of doubt, no Purchaser shall surrender
its Warrant prior to the Closing Date.

     1.4 Execution of the Amended and Restated Registration Rights Agreement. On
the Closing Date the parties hereto shall execute and deliver to each other the
Amended and Restated Registration Rights Agreement, in the form of Exhibit C
annexed hereto (the "Amended Registration Rights Agreement" and, together with
the Revised Debenture and the Revised Warrant, the "Revised Transaction
Documents"). For the avoidance of doubt, the parties hereto shall not execute
the Amended Registration Rights Agreement prior to the Closing Date.

                                       2

<PAGE>

                                  ARTICLE II.

                         REPRESENTATIONS AND WARRANTIES

     2.1 Representations, Warranties and Agreements of the Company. The Company
hereby makes the following representations and warranties to each of the
Purchasers:

         a. Organization and Qualification. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the
Commonwealth of Pennsylvania, with the requisite corporate power and authority
to own and use its properties and assets and to carry on its business as
currently conducted.

         b. Authorization; Enforcement. The Company has the requisite corporate
power and authority to enter into and to consummate the transactions
contemplated by this Agreement and the Revised Transaction Documents, and
otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of each of this Agreement and the Revised Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby
and thereby have been duly authorized by all necessary corporate action and no
further action is required by the Company, its Board of Directors or its
stockholders. Each of this Agreement and the Revised Transaction Documents has
been duly executed by the Company and when delivered in accordance with the
terms hereof, assuming due authorization, execution and delivery by the other
parties thereto, will constitute the valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws (including insurance
related laws and regulations) relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable principles
of general application, except that rights to indemnification and contribution
may be limited by Federal or state securities laws or public policy relating
thereto.

         c. Authorization, Validity and Issuance of Shares; Integration. The
shares of Common Stock issuable upon conversion of the Revised Debentures and
exercise of the Revised Warrants (collectively, the "Underlying Shares") are and
will at all times hereafter continue to be duly authorized and reserved for
issuance and the shares of Common Stock to be issued upon conversion of the
Revised Debentures (the "Debenture Shares") and exercise of the Revised Warrants
(the "Warrant Shares") will be, when issued, validly issued, fully paid and
non-assessable, free and clear of all liens, encumbrances and Company rights of
first refusal, other than liens and encumbrances created by the Purchasers
(collectively, "Liens") and will not be subject to any preemptive or similar
rights, except for Liens or preemptive or similar rights which have been waived.
The issuance by the Company of the Revised Debentures, the Revised Warrants and
the Underlying Shares is exempt from registration under the Securities Act. The
transactions contemplated by this Agreement and the Revised Transaction
Documents will not be integrated with any other offer, sale or issuance of the
Company's securities (past, current or future) under the Securities Act or any
regulates of any exchange or automated quotation system on which any of the
securities of the Company are listed or designated.

                                       3

<PAGE>

         d. No Conflicts. The execution, delivery and performance of this
Agreement and each of the Revised Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby and thereby
(including the issuance of the Underlying Shares) do not and will not (i)
conflict with or violate any provision of the Company's Certificate of
Incorporation, as amended and as in effect on the date hereof (the "Certificate
of Incorporation") and the Company's Bylaws, as in effect on the date hereof
(the "Bylaws") or other organizational documents of the Company or any of the
Subsidiaries, (ii) conflict with, or constitute a breach or a default (or an
event which with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, indenture, patent, or instrument (evidencing a
Company or Subsidiary debt or otherwise) to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is
bound or affected which, individually or in the aggregate, would be reasonably
expected to have, either individually or in the aggregate, a material adverse
effect on the results of operations, assets, prospects or financial condition of
the Company (a "Material Adverse Effect"), or (iii) result in a violation of any
law, rule, regulation, order, judgment, injunction, decree or other restriction
of any court or governmental authority to which the Company or any Subsidiary is
subject (including Federal and state securities laws and regulations and the
rules and regulations of the National Market System of Nasdaq Stock Market
("Nasdaq")), or by which any material property or asset of the Company or any
Subsidiary is bound or affected which, individually or in the aggregate, would
be reasonably expected to have a Material Adverse Effect.

         e. Consents and Approvals. Neither the Company nor any Subsidiary is
required to obtain any consent, waiver, authorization or order of, give any
notice to, or make any filing or registration with, any court or other federal,
state, local or other governmental authority, regulatory or self regulatory
agency, or other Person in connection with the execution, delivery and
performance by the Company of this Agreement or the Revised Transaction
Documents, other than (i) the filing of a registration statement with the
Commission, which shall be filed in accordance with and in the time periods set
forth in the Amended Registration Rights Agreement, (ii) the application(s) or
any letter(s) acceptable to Nasdaq for the listing of the Underlying Shares with
Nasdaq (and with any other national securities exchange or market on which the
Common Stock is then listed) and (iii) any filings, notices or registrations
under applicable state securities laws.

         f. Registration Statement. The Initial Registration Statement filed
with the Commission pursuant to the terms of the Registration Rights Agreement
(as such terms are defined therein) has not been withdrawn by the Company, and
the Company is either (i) able to amend such Initial Registration Statement to
cover the Underlying Shares and file such amended Initial Registration Statement
with the Commission or (ii) eligible to register securities (including the
Underlying Shares) for resale with the Commission under Form S-3 (or any
successor form) promulgated under the Securities Act.

     2.2 Representations and Warranties of the Purchasers. Each of the
Purchasers, severally and not jointly, hereby represents and warrants to the
Company as follows:

         a. Organization; Authority. Such Purchaser is a corporation or a
limited duration company or a limited liability company or limited partnership
duly formed, validly existing and

                                       4

<PAGE>

in good standing under the laws of the jurisdiction of its incorporation or
formation with the requisite power and authority, corporate or otherwise, to
enter into and to consummate the transactions contemplated hereby and by the
Revised Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder. The transactions contemplated hereunder have been duly
authorized by all necessary action on the part of such Purchaser. Each of this
Agreement and the Amended Registration Rights Agreement has been duly executed
and delivered by such Purchaser and constitutes the valid and legally binding
obligation of such Purchaser, enforceable against such Purchaser in accordance
with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
generally and to general principles of equity.

         b. No Conflicts. The execution, delivery and performance of this
Agreement by such Purchaser and the consummation by such Purchaser of the
transactions contemplated hereby do not and will not (i) conflict with or
violate any provision of such Purchaser's organizational documents, as in effect
on the date hereof, or (ii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or
governmental authority to which such Purchaser is subject.

         c. Consents and Approvals. Such Purchaser is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any
filing or registration with, any court or other federal, state, local or other
governmental authority, regulatory or self regulatory agency, or other Person in
connection with the execution, delivery and performance by such Purchaser of
this Agreement.

                                  ARTICLE III.

                               CLOSING CONDITIONS

     3.1 Conditions Precedent to the Obligations of the Company. The obligation
of the Company to effect the transactions contemplated hereunder at the Closing
is subject to the satisfaction or waiver (with prior written notice to each
Purchaser) by the Company, on the Closing Date, of each of the following
conditions:

         a. Accuracy of the Purchasers' Representations and Warranties. The
representations and warranties of each Purchaser set forth in this Agreement
shall be true and correct in all respects as of the date when made and as of the
Closing Date; and

         b. Performance by the Purchasers. Each Purchaser shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by such Purchaser at or prior to the Closing Date.

     3.2 Conditions Precedent to the Obligations of the Purchasers. The
obligation of each Purchaser to effect the transactions contemplated hereunder
at the Closing is subject to the

                                       5

<PAGE>

satisfaction or waiver (with prior written notice to the Company and each other
Purchaser) by such Purchaser, on the Closing Date, of each of the following
conditions:

         a. Accuracy of the Company's Representations and Warranties. The
representations and warranties of the Company set forth in this Agreement shall
be true and correct in all respects as of the date when made and as of the
Closing Date;

         b. Performance by the Company. The Company shall have performed,
satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date; and

         c. Reorganization. The Securities and Exchange Commission (the
"Commission") shall have declared effective the Form S-4 filed in connection
with the Reorganization (the "Form S-4"), the Form S-4 shall then be in effect,
and the majority of the shareholders of the Company shall have approved the
Reorganization on or prior to the Reorganization Effectiveness Deadline (as
defined in Section 4.2 hereof).

                                  ARTICLE IV.

                        WAIVER AND SUSPENSION OF DEFAULTS

     4.1 Suspension and Waiver of Defaults. Upon the execution of this
Agreement, each Purchaser agrees, subject to Section 4.2 hereof, (a) to
conditionally waive any and all past or current defaults or violations
(collectively, "Current Defaults") of the Company arising under the Debenture
issued to such Purchaser and/or the Registration Rights Agreement, as the case
may be, (b) to prospectively waive any and all defaults or violations of the
Company arising under such Debenture and/or the Registration Rights Agreement,
as the case may be, occurring or which may occur on and after the date hereof to
and including the Closing Date (collectively, "Future Defaults"), and (c) to
suspend enforcement of, to forbear from taking any action or making any claim,
and to not take any action or make any claim with respect to, any Current
Default or Future Default from and after the date hereof to and including the
Closing Date. Each Purchaser further agrees, upon the Closing of the
transactions contemplated hereunder (pursuant to the terms and conditions
hereof), (a) to forever waive any and all Current Defaults and Future Defaults
arising under such Purchaser's Debenture and/or the Registration Rights
Agreement, as the case may be, and (b) to forever suspend enforcement of,
forbear from taking any action or making any claim, and to not take any action
or make any claim with respect to, any such Current Defaults or Future Defaults.

     4.2 Reinstatement of Defaults. Notwithstanding the foregoing, if (i) the
Company and HealthAxis.com, Inc. fail to execute the Merger Agreement, as
amended and restated, by October 2, 2000, (ii) the majority of the shareholders
of the Company do not approve the Reorganization on or prior to March 31, 2001
(such date, the "Reorganization Effectiveness Deadline") or (iii) the
Reorganization is otherwise suspended, terminated or publicly abandoned on or
prior to the Reorganization Effectiveness Deadline, then the agreement of the
Purchasers to suspend the Company's defaults and violations pursuant to Section
4.1 hereof, and the

                                       6

<PAGE>

obligations of the Purchasers to surrender the Debentures and the Warrants
pursuant to Article I hereof, shall be null and void and of no further force or
effect. In such event the Company shall be liable for any and all penalties,
damages and liabilities owing or payable to each Purchaser in connection with
any and all such defaults or violations of the Company under the Debenture
and/or the Registration Rights Agreement, as the case may be, whether occurring
before or after the date hereof, which penalties, damages and liabilities shall
accrue from the first date of default or violation thereof; provided, however,
that each Purchaser agrees that (a) the issuance of indebtedness in an amount of
up to (i) $2,100,000, in respect of current or future extensions of credit and
(ii) $1,400,000, in respect of past advances, in each case owing to
HealthAxis.com, Inc. by the Company, do not and will not constitute an Event of
Default (as defined in the Debenture) under such Purchaser's Debenture and (b)
any liens granted in connection with such current or future extensions of
credit, in an amount not to exceed $2,100,000, do not and will not constitute an
Event of Default under such Purchaser's Debenture.

                                   ARTICLE V.

                                OTHER AGREEMENTS

     5.1 Covenants of the Company and the Purchasers. Each of the continuing
covenants and agreements of the Company, on the one hand, and each of the
Purchasers, on the other hand, set forth in the Purchase Agreement shall remain
in full force and effect in accordance with the terms thereof, except that it is
agreed by the Company and each of the Purchasers that clause (ii) of Section
3.15 of the Purchase Agreement is hereby deleted and omitted in its entirety,
and provided, further, that nothing hereunder shall be deemed a reaffirmation on
the part of the Company or any Purchaser of any representation or warranty made
in the Purchase Agreement.

     5.2 Sale of Capital Stock. The Company shall not sell any shares of its
Capital Stock (as such term is defined in the Revised Debenture) or any shares
of the Capital Stock of HealthAxis.com, Inc. on or prior to the Closing Date
without the prior written consent of the Purchasers representing more than 50%
of the principal amount of the Revised Debentures; provided, however, that
nothing hereunder shall prohibit the Company from pledging up to 566,666 shares
of Common Stock of HealthAxis.com, Inc. to secure indebtedness of the Company to
be issued in accordance with the terms of that certain agreement, dated as of
September 28, 2000, between the Company and HealthAxis.com, Inc.

     5.3 Consummation of Reorganization. The Company shall (i) amend and file
with the Commission the Form S-4 on or prior to October 31, 2000 (ii) use its
commercially reasonable best efforts to promptly respond to any comments
received from the Commission with respect to the Form S-4 and (iii) assuming
that the Commission has declared the Form S-4 effective, hold, on or prior the
Reorganization Effectiveness Deadline, a special meeting of its shareholders in
order to approve the Reorganization.

                                       7

<PAGE>

                                   ARTICLE VI.

                                  MISCELLANEOUS

     6.1 Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

     6.2 Amendments; Waivers. No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
both the Company and each of the Purchasers or, in the case of a waiver, by the
party against whom a waiver of any such provision is sought. No waiver of any
default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or
omission of either party to exercise any right hereunder in any manner impair
the exercise of any such right accruing to it thereafter. The Company shall not
offer or pay any consideration to a Purchaser for consenting to such an
amendment or waiver unless the same consideration is offered to each Purchaser
and the same consideration is paid to each Purchaser which consents to such
amendment or waiver.

     6.3 Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof.

     6.4 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns and, in
the case of the Company, any entity succeeding to the Company by merger or
acquisition of all or substantially all the assets of the Company. The Company
may not assign this Agreement or any rights or obligations hereunder without the
prior written consent of each of the Purchasers. Any Purchaser may assign this
Agreement or any rights or obligations hereunder without the prior written
consent of the Company.

     6.5 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person.

     6.6 Governing Law. This Agreement shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York without
regard to the principles of conflicts of law thereof. Each party hereby
irrevocably submits to the nonexclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and

                                       8

<PAGE>

sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES
NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

     6.7 Publicity. The Company and the Purchasers shall consult with each other
in issuing any press releases or otherwise making public statements with respect
to the transactions contemplated hereby and neither party shall issue any such
press release or otherwise make any such public statement without the prior
written consent of the other, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is
required by law, in which such case the disclosing party shall provide the other
party with prior notice of such public statement. The Company shall not publicly
or otherwise disclose the names of any of the Purchasers without each such
Purchaser's prior written consent. The Purchasers and their affiliated companies
shall, without further cost, have the right to use in its advertising, marketing
or other similar materials, the Company's logo and trademarks and all or parts
of the Company's press releases that focus on the Transaction forming the
subject matter of this Agreement or which make reference to the Transaction. The
Purchasers understand that this grant by the Company only waives objections that
the Company might have to the use of such materials by the Purchasers and in no
way constitutes a representation by the Company that references in such
materials to the activities of third-parties have been cleared or constitute a
fair use.

     6.8 Severability. In case any one or more of the provisions of this
Agreement shall be invalid or unenforceable in any respect, the validity and
enforceability of the remaining terms and provisions of this Agreement shall not
in any way be affected or impaired thereby and the parties will attempt to agree
upon a valid and enforceable provision which shall be a reasonable substitute
therefor, and upon so agreeing, shall incorporate such substitute provision in
this Agreement.

     6.9 Further Assurances. Each party shall do and perform, or cause to be
done and performed, all such further acts and things, and shall execute and
deliver all such other agreements, certificates, instruments and documents, as
the other party may reasonably request in order to carry out the intent and
accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

     6.10 Fees and Expenses. Except as set forth in the Registration Rights
Agreement, each party shall pay the fees and expenses of its advisers, counsel,
accountants and other experts, if any, and all other expenses incurred by such
party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement; provided, however, that the Company shall pay
Brown Simpson Partners I Ltd. an aggregate fee of $10,000 at the Closing. The
Company shall pay all stamp and other taxes and duties levied in connection with
the issuance of the Debenture Shares and the Warrant Shares pursuant hereto.

                                       9

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
the Securities Purchase Agreement to be duly executed by their respective
authorized persons as of the date first indicated above.

                                  HEALTHAXIS INC.

                                  By:      /s/ Michael Ashker
                                     -------------------------------------------
                                  Name:    Michael Ashker
                                  Title:   President and Chief Executive Officer

<PAGE>

                                    EXHIBIT A
                                    ---------

                        FORM OF 2% CONVERTIBLE DEBENTURE

                  THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), OR QUALIFIED UNDER APPLICABLE STATE SECURITIES OR BLUE SKY LAWS, AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND APPLICABLE STATE SECURITIES OR BLUE SKY
LAWS.

No.________                                                          $__________

                                 HEALTHAXIS INC.
                            2% CONVERTIBLE DEBENTURES

                  HealthAxis Inc., a Pennsylvania corporation (the "Company"),
for value received hereby promises to pay to _________ or its registered assigns
("Holder") the principal sum of _______________ Dollars ($_______) at the
Company's office or agency for said purpose in New York, New York on September
14, 2005, in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public and private
debts at the last address of the Holder (as defined herein) last appearing on
the Register (as defined herein).

                  This Debenture is one of a duly authorized issue of 2%
Convertible Debentures of the Company due on September 14, 2005 (the
"Debenture"), which are (a) referred to in the Amendment to the Securities
Purchase Agreement (the "Purchase Agreement Amendment"), dated as of September
28, 2000, by and among the Company and the Purchasers listed on Schedule I
thereto and (b) issued in substitution of the 2% Convertible Debentures due
September 14, 2002 originally issued by the Company pursuant to the Securities
Purchase Agreement dated as of September 14, 1999. The Debentures are subject to
the terms and conditions of the Purchase Agreement. The Company agrees to issue
from time to time replacement Debentures in the form hereof to facilitate any
transfers and assignments as are made consistent with the terms hereof and of
the Purchase Agreement. In addition, after delivery of an indemnity in form and
substance reasonably satisfactory to the Company, the Company also agrees to
issue replacement Debentures for securities which have been lost, stolen,
mutilated or destroyed as set forth below.

                  The Company shall keep at its principal office a register (the
"Register") in which shall be entered the names and addresses of the registered
holders of the Debentures and

<PAGE>

particulars of the respective Debentures held by them and of all transfers of
such Debentures. References to the "Holder" or "Holders" shall mean the Person
listed in the Register as the payee of any Debenture unless the payee shall have
presented such Debenture to the Company for transfer and the transferee shall
have been entered in the Register as a subsequent holder, in which case the term
shall mean such subsequent holder. The ownership of the Debentures shall be
proven by the Register, absent manifest error. For the purpose of paying
interest and principal on the Debentures, the Company shall be entitled to rely
on the names and addresses in the Register.

                  No provision of this Debenture shall alter or impair the
obligations of the Company to pay the principal of and interest on this
Debenture at the place, times, rate, and in the currency, herein prescribed.

                  The principal of this Debenture shall bear interest at the
rate of 2% per annum (the "Interest Rate") which shall accrue daily from July 1,
2000 and shall be payable semi-annually to the Holder hereof on January 1 and
July 1 of each year (an "Interest Payment Date"), commencing on [January 1,
2001], until the principal amount is paid or made available for payment. The
interest so payable on any Interest Payment Date will be paid, at the Company's
option, in cash or an equivalent value of the Company's Common Stock calculated
based upon the Average Price (as defined herein) as of the applicable Record
Date, subject to certain conditions contained herein, to the Holder of this
Debenture at the close of business on the applicable Record Date. The "Record
Date" for any interest payment is the close of business on December 15 or June
15, as the case may be, whether or not a Business Day, immediately preceding the
Interest Payment Date on which such Interest is payable.

                  Any amounts that have become due and payable hereunder and
remain unpaid by the Company after expiration of any applicable grace period for
such payment provided herein shall accrue interest thereafter until payment in
full of such amount at the rate of fifteen percent (15%) (the "Default Rate")
per annum and shall be payable upon demand by the Holder.

                  Interest, whether at the Interest Rate or the Default Rate,
will be computed on the basis of a fraction, the denominator of which is 365 (or
366 for any leap year) and the numerator of which is the actual number of days
elapsed from the date such interest begins to accrue, in the case of the
Interest Rate, or becomes due and payable, in the case of the Default Rate.

                  Each of the Interest Rate and the Default Rate shall be
effective both before and after any judgment may be rendered in a court of
competent jurisdiction, provided, however, that if either the Interest Rate or
Default Rate is deemed to be in excess of the amount permitted to be charged by
the Company under applicable laws, the Holder shall be entitled to collect an
Interest Rate or Default Rate, as the case may be, only at the highest rate
permitted by law, and any interest collected by the Holder in excess of such
lawful amount shall be deemed a payment in reduction of the principal amount
then outstanding under this Debenture and shall be so applied.

                  The principal of, and interest on, this Debenture are payable
in coin or currency of the United States of America as at the time of payment is
legal tender for payment of public or private debts, at the last address of the
Holder last appearing on the Register (in the case of interest, as of the Record
Date), except that interest due on the principal amount, (but not interest

                                       2

<PAGE>

overdue for more than five days), may, at the Company's option be paid in shares
of Common Stock calculated based upon the Average Price (as defined herein) as
of the applicable Interest Payment Date. Except with respect to interest overdue
for more than five (5) days, it shall be assumed that the Company shall elect to
make all payments of interest in Common Stock unless the Company shall have
given written notice to each Holder not less than five (5) days prior to the
applicable Interest Payment Date of its intention to pay such interest in cash.
Notwithstanding anything to the contrary contained herein, the Company may not
issue shares of Common Stock in payment of the interest due on principal if: (i)
the number of shares of Common Stock at the time authorized, unissued and
unreserved for all other purposes is insufficient to pay interest hereunder in
shares of Common Stock or there is an insufficient number of authorized shares
of Common Stock reserved (pursuant to Section 3.6(b) of the Purchase Agreement)
for issue for full conversion of all of the Debentures issued pursuant to the
Purchase Agreement Amendment; (ii) such shares are not either registered for
resale pursuant to the Registration Statement (as defined in the Registration
Rights Agreement (as defined herein)) or freely transferable without volume
restrictions pursuant to Rule 144(k) promulgated under the Securities Act, as
determined by counsel to the Company pursuant to a written opinion letter
addressed and in form and substance reasonably acceptable to the Holder and the
transfer agent for such shares, subject to receipt by the Company and such
counsel of a representation from such Holder that it is not an Affiliate of the
Company for purposes of Rule 144 promulgated under the Securities Act; (iii)
such shares are not listed or quoted on the Nasdaq (as defined herein) or a
Subsequent Market (as defined herein); (iv) the issuance of such shares would
result in the recipient thereof beneficially owning more than 9.99% of the
issued and outstanding shares of Common Stock as determined in accordance with
Section 4.6 hereof; or (v) an Event of Default has occurred and is continuing or
an event that, with the passage of time or giving of notice or both would
constitute an Event of Default, has occurred and is continuing.

                                    ARTICLE I

                                   DEFINITIONS

                  1.1 Certain Terms Defined. The following terms (except as
otherwise expressly provided or unless the context otherwise clearly requires)
for all purposes of this Debenture shall have the respective meanings specified
below. All accounting terms used herein and not expressly defined shall have the
meanings given to them in accordance with generally accepted accounting
principles (as defined herein). Capitalized terms not otherwise defined herein
shall have the meanings assigned to them in the Purchase Agreement. The terms
defined in this Section 1.1 include the plural as well as the singular.

                  "Acceleration Notice" has the meaning set forth in Section
3.1.

                  "Affiliate" of any Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such Person. For the purposes of this definition, "control" when
used with respect to any Person means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of
such

                                       3

<PAGE>

Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

                  "Appraiser" shall mean a nationally recognized or major
regional investment banking firm or firm of independent certified public
accountants of recognized standing.

                  "Approved Stock Plan" means any contract, plan or agreement
which has been approved by the Board of Directors of the Company, or committee
thereof, pursuant to which the Company's securities may be issued to any
employee, officer, director or consultant, or any business or strategic partner
deemed important to the operations of the Company, the primary purpose of which
is other than to raise capital for the Company.

                  "Average Price" on any date means (x) the sum of the Per Share
Market Value for the ten (10) Trading Days immediately preceding such date minus
(y) the highest and lowest Per Share Market Value during the ten (10) Trading
Days immediately preceding such date, divided by (z) eight (8).

                  "Board of Directors" means either the Board of Directors of
the Company or any committee of such Board duly authorized to act hereunder.

                  "Business Day" means any day except a Saturday, Sunday or
other day on which commercial banks in the City of New York are authorized or
required by law to close.

                  "Capital Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated) of
such Person's capital stock whether now outstanding or issued after the Original
Issue Date, including, without limitation, all common stock and all Preferred
Stock of such Person.

                  "Change of Control" means the occurrence of any of (i) an
acquisition after the date hereof by an individual or legal entity or "group"
(as described in Section 13(d)(3) of the Exchange Act) of in excess of 51% of
the voting securities of the Company, (ii) a replacement of more than one-half
of the members of the Company's Board of Directors which is not approved by a
majority of those individuals who are members of the Board of Directors on the
date hereof, or their duly elected successors who are directors immediately
prior to such transaction, in one or a series of related transactions, (iii) the
merger of the Company with or into another entity, unless following such
transaction, the Holders of the Company's securities continue to hold at least
51% of such securities following such transaction, (iv) the consolidation or
sale of all or substantially all of the assets of the Company in one or a series
of related transactions, or (v) the execution by the Company of an agreement to
which the Company is a party or by which it is bound, providing for any of the
events set forth above in (i), (ii), (iii) or (iv). Notwithstanding the
foregoing, the Reorganization shall not be deemed a "Change of Control"
hereunder.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the common stock, par value $.10 per
share, of the Company.

                  "Company" means HealthAxis Inc.

                                       4

<PAGE>

                  "Conversion Date" has the meaning set forth in Section 4.4(a).

                  "Conversion Price" has the meaning set forth in Section 4.2.

                  "Convertible Securities" has the meaning set forth in Section
4.5(g)(i)(A).

                  "Debenture" or "Debentures" has the meaning set forth in the
second paragraph hereof.

                  "Debenture Shares" means the shares of Common Stock issuable
upon conversion of the Debentures.

                  "Default Rate" has the meaning set forth in the sixth
paragraph hereof.

                  "Event of Default" has the meaning set forth in Section 3.1.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.

                  "Excluded Securities" means (i) the Underlying Shares, (ii)
the shares of Common Stock issuable upon exercise of the warrants issued to
Royal Bank of Canada in connection with the transactions contemplated by the
Purchase Agreement Amendment, (iii) shares of Common Stock deemed to have been
issued by the Company in connection with an Approved Stock Plan, (iv) shares of
Common Stock (including options and warrants) issuable upon the exercise of any
options or warrants outstanding on the date hereof and listed in Schedule 2.1(c)
of the Purchase Agreement, (v) shares of Common Stock issued or deemed to have
been issued as consideration for an acquisition by the Company of a division,
assets or business (or stock constituting any portion thereof) from another
person, (vi) shares of Common Stock (or options or warrants to purchase Common
Stock) issued in the Reorganization and (vii) shares of Common Stock, or options
or warrants to purchase Common Stock, issued to a strategic investor in
connection with a strategic commercial agreement approved by the Company's Board
of Directors, if and only if such shares of Common Stock, or such options or
warrants to purchase such Common Stock, are sold, granted, issued, issuable,
exercisable or convertible, as the case may be, at a price per share which is
greater than or equal to $3.00.

                  "GAAP" or "generally accepted accounting principles" means
United States generally accepted accounting principles, consistently applied, as
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board, or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, that are applicable to the
circumstances as of the date of determination; provided, however, that, except
as otherwise specifically provided, all calculations made for purposes of
determining compliance with the terms of the provisions of this Agreement shall
utilize GAAP in effect at the time of preparation of, and in accordance with the
GAAP used to prepare, the historical financial statements of the Company as of
the Original Issue Date.

                  "Holder" means the registered holder of any Debenture.

                                       5

<PAGE>

                  "Interest Payment Date" has the meaning set forth in the fifth
paragraph hereof.

                  "Interest Rate" has the meaning set forth in the fifth
paragraph hereof.

                  "Mandatory Prepayment Amount" for any Debenture means, at the
option of the Holder (a) the sum of (i) 100% of the principal amount of the
Debenture to be prepaid and (ii) all other amounts, costs, interest, expenses
and liquidated damages due in respect of such principal amount, or (b) in the
case of an Event of Default pursuant to Sections 3.1(f) or 3.1(h) hereof, the
sum of (i) the principal amount of the Debenture to be prepaid, plus all accrued
and unpaid interest thereon, divided by either of the lesser of the Conversion
Price or the Average Price on the Trading Day immediately prior to the date the
Mandatory Prepayment Amount is paid in full, multiplied by the Per Share Market
Value on the Trading Day immediately prior to the date the Mandatory Prepayment
Amount is paid in full, and (ii) all other amounts, costs, interest, expenses
and liquidated damages due in respect of such principal amount; provided,
however, that in the event of an Event of Default pursuant to Section 3.1(f)(B),
the Mandatory Prepayment Amount shall be solely payable pursuant to clause (a)
hereof if (i) such failure is due solely to delays caused by comments the
Company received from the Securities and Exchange Commission, (ii) the Company
responds to such comments as promptly as practicable, but in no event later that
ten (10) Business Days after receipt thereof, and (iii) otherwise complies with
the terms and conditions of the Registration Rights Agreement.

                  "Nasdaq" means the Nasdaq National Market.

                  "Notice of Conversion" has the meaning set forth in Section
4.2.

                  "Options" has the meaning set forth in Section 4.5(g)(i)(A).

                  "Original Issue Date" of any Debenture (or portion thereof)
means the earlier of (i) the date of such Debenture and (ii) the date of any
Debenture (or portion thereof) for which such security was issued (directly or
indirectly) on registration of transfer, exchange or substitution.

                  "Per Share Market Value" means (i) on any particular date the
closing bid price per share of the Common Stock on such date (as reported by
Bloomberg Information Services, Inc., or any successor reporting service) on
Nasdaq or, if the Common Stock is not then quoted on Nasdaq, any Subsequent
Market on which the Common Stock is then listed or if there is no such price on
such date, then the closing bid price on such exchange or quotation system on
the date nearest preceding such date or (ii) if the Common Stock is not listed
then on Nasdaq or any Subsequent Market, the closing bid price for a share of
Common Stock in the over-the-counter market, as reported by the National
Quotation Bureau Incorporated (or similar organization or agency succeeding to
its functions of reporting prices) at the close of business on such date, or
(iii) if the Common Stock is not then publicly traded the fair market value of a
share of Common Stock as determined by an Appraiser selected in good faith by
the holder of this Debenture; provided, however, that the Company, after receipt
of the determination by such Appraiser, shall have the right to select in good
faith an additional Appraiser, in which case, the fair market value shall be
equal to the average of the determinations by each such Appraiser; and provided,
further

                                       6

<PAGE>

that all determinations of the Per Share Market Value shall be appropriately
adjusted for any stock dividends, stock splits or other similar transactions
during such period.

                  "Person" means an individual, a corporation, a partnership, an
association, a trust or any other entity or organization, including a government
or political subdivision or an agency or instrumentality thereof.

                  "Preferred Stock" means, with respect to any Person, any and
all shares, interests, participations or other equivalents (however designated)
of such Person's preferred or preference stock whether now outstanding or issued
after the date of this Debenture, and includes, without limitation, all classes
and series of preferred or preference stock.

                  "Purchase Agreement" means the Securities Purchase Agreement,
dated as of September 4, 1999, by and among the Company and the purchasers set
forth therein, as amended by the Purchase Agreement Amendment.

                  "Purchase Agreement Amendment" means the Amendment to the
Purchase Agreement, dated September 28, 2000, by and among the Company and the
Purchasers.

                  "Purchase Price" means, with respect to any security, the
purchase price paid to the Company upon issuance of such security.

                  "Purchaser" has the meaning ascribed thereto in the Purchase
Agreement Amendment.

                  "Record Date" has the meaning set forth in the fifth paragraph
hereof.

                  "Register" has the meaning set forth in the third paragraph
hereof.

                  "Registration Rights Agreement" means that Amended and
Restated Registration Rights Agreement dated as of _____________, 200_, by and
among the Company and the Purchasers.

                  "Registration Statement" has the meaning ascribed thereto in
the Registration Rights Agreement.

                  "Reorganization" means the merger or reorganization
transaction involving the Company and HealthAxis.com, Inc., pursuant to which
each share of common stock of HealthAxis.com, Inc. was exchangeable for shares
of Common Stock of the Company.

                  "Reserved Amount" has the meaning set forth in Section 4.8.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Stated Maturity Date" means September 14, 2005.

                  "Subsequent Market" means the New York Stock Exchange,
American Stock Exchange or Nasdaq Smallcap Market.

                                       7

<PAGE>

                  "Subsidiary" means, with respect to any Person, any
corporation or other entity of which a majority of the Capital Stock or other
ownership interests having ordinary voting power to elect a majority of the
Board of Directors or other persons performing similar functions are at the time
directly or indirectly owned by such Person.

                  "Trading Day" means a day on which the Common Stock is traded
on Nasdaq or, if the Common Stock is not then designated on Nasdaq, on such
Subsequent Market on which the Common Stock is then listed or quoted.

                  "Underlying Shares" means the shares of Common Stock issuable
upon conversion of the Debentures and exercise of the Warrants.

                  "Valuation Event" has the meaning set forth in Section
4.5(g)(i)(D)(I).

                  "Warrants" has the meaning set forth in the Purchase
Agreement.

                                   ARTICLE II

                             PAYMENT; THE SECURITIES

                  2.1 Payment of Principal and Interest. The Company covenants
and agrees that it will duly and punctually pay or cause to be paid the
principal and interest on overdue principal (in the case of interest accrued, at
the Default Rate, to the extent enforceable under applicable law), with respect
to each of the Debentures at the place or places, at the respective times and in
the manner provided in the Debentures.

                  2.2 Mutilated, Defaced, Destroyed, Lost and Stolen Debentures.
In case any Debenture shall become mutilated, defaced or be apparently
destroyed, lost or stolen, the Company shall execute and deliver a new
Debenture, bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated or defaced Debenture. In every case the applicant
for a substitute Debenture shall furnish to the Company such security or
indemnity as it may reasonably require to indemnify and defend and to save it
harmless and, in every case of destruction, loss or theft evidence to the
Company's satisfaction of the apparent destruction, loss or theft of such
Debenture and of the ownership thereof.

                  Upon the issuance of any substitute Debenture, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses connected
therewith. In case any Debenture which has matured or is about to mature, or has
been called for redemption in full, or is being surrendered for conversion in
full shall become mutilated or defaced or be apparently destroyed, lost or
stolen, the Company may, instead of issuing a substitute Debenture, with the
holder's consent, pay or authorize the payment or conversion of the same
(without surrender thereof except in the case of a mutilated or defaced
Debenture), if the applicant for such payment shall furnish to the Company such
security or indemnity as it may reasonably require to save it harmless from all
risks, however remote, and, in every case of apparent destruction, loss or
theft, the applicant shall

                                       8

<PAGE>

also furnish to the Company evidence to the Company's reasonable satisfaction of
the apparent destruction, loss or theft of such Debenture and of the ownership
thereof.

                  Every substitute Debenture issued pursuant to the provisions
of this Section by virtue of the fact that any Debenture is apparently
destroyed, lost or stolen shall constitute an additional contractual obligation
of the Company, whether or not the apparently destroyed, lost or stolen
Debenture shall be at any time enforceable by anyone and shall be entitled to
all the benefits of (but shall be subject to all the limitations of rights set
forth in) this Debenture equally and proportionately with any and all other
Debentures duly authenticated and delivered hereunder. All Debentures shall be
held and owned upon the express condition that, to the extent permitted by law,
the foregoing provisions are exclusive with respect to the replacement or
payment or conversion of mutilated, defaced, or apparently destroyed, lost or
stolen Debentures and shall preclude any and all other rights or remedies
notwithstanding any law or statute existing or hereafter enacted to the contrary
with respect to the replacement or payment of negotiable instruments or other
securities without their surrender.

                  2.3 Cancellation of Debentures; Destruction Thereof. All
Debentures surrendered for payment, redemption, registration of transfer or
exchange shall be delivered to the Company for cancellation, and no Debentures
shall be issued in lieu thereof except as expressly permitted by any of the
provisions of this Debenture. The Company shall destroy canceled Debentures held
by it and deliver a certificate of destruction to the Holder, if requested. If
the Company shall acquire any of the Debentures, such acquisition alone shall
not operate as a redemption or satisfaction of the indebtedness represented by
such Debentures unless and until such indebtedness is satisfied.

                                   ARTICLE III

                                    DEFAULTS

                  3.1 Event of Default Defined; Acceleration of Maturity; Waiver
of Default. In case one or more of the following events (each, an "Event of
Default") (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any
judgment, decree or order of any court or any order, rule or regulation of any
administrative or governmental body) shall have occurred and be continuing:

                  a. default in the payment of (i) interest on any of the
Debentures, which default shall not have been cured within fifteen (15) Business
Days following the applicable Interest Payment Date, or (ii) the principal of
any Debenture, with respect to each of (i) and (ii) as and when the same shall
become due and payable either at maturity, upon any redemption or conversion or
otherwise; or

                  b. failure on the part of the Company to duly observe or
perform any other of the covenants or agreements on the part of the Company (or
the making by the Company of any announcement, statement or threat that it does
not intend to honor the obligations described

                                       9

<PAGE>

in this paragraph) contained in this Debenture, the Purchase Agreement, the
Purchases Agreement Amendment or the Registration Rights Agreement for a period
of ten (10) Business Days (other than with respect to an announcement, statement
or threat) after the earlier of (x) the date on which any officer of the Company
shall have obtained actual knowledge of such failure (or such announcement,
statement or threat) or (y) the date on which written notice thereof has been
given to the Company by the Holder; or

                  c. a court having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Company or any of its Subsidiaries
in an involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of the Company
or any of its Subsidiaries or for any substantial part of the property of the
Company or any of its Subsidiaries or ordering the winding up or liquidation of
the affairs of the Company or any of its Subsidiaries, and such decree or order
shall remain unstayed and in effect for a period of sixty (60) consecutive days;
or

                  d. the Company or any of its Subsidiaries shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law
now or hereafter in effect, or consent to the entry of an order for relief in an
involuntary case under any such law, or consent to the appointment or taking
possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Company or any of its Subsidiaries or for any
substantial part of the property of the Company or any of its Subsidiaries, or
the Company or any of its Subsidiaries shall make any general assignment for the
benefit of creditors; or

                  e. any  representation  or  warranty  made by the  Company
in the Purchase Agreement or Purchase Agreement Amendment shall prove to have
been incorrect in any material respect when made; or

                  f. (A) a Registration Statement on Form S-3 for the Underlying
Shares (which has been filed by the Company) shall not have been amended to,
among other items, include the Underlying Shares issuable hereunder, and filed
with the Commission on or prior to the earlier of (i) twenty (20) Business Days
following the date that a majority of the shareholders of the Company approve
the Reorganization or (ii) April 27, 2001, or (B) the Company shall fail to
respond as promptly as practicable, but in no event later that ten (10) Business
Days, to any comments received from the Commission regarding such Registration
Statement, as amended, or (C) after its initial effectiveness, such Registration
Statement lapses in effect or sales of all of the Registrable Securities (as
defined in the Registration Rights Agreement) otherwise cannot be made
thereunder (whether by reason of the Company's failure to amend or supplement
the prospectus included therein in accordance with the Registration Rights
Agreement or otherwise) for more than forty-five (45) consecutive days or ninety
(90) calendar days in any twelve (12) month period, except as otherwise provided
in the Registration Rights Agreement and except as a result of a Change of
Control transaction with a privately-held company which does not otherwise
result in an Event of Default; or

                  g. a  Change of Control shall occur and the obligations
of the Company under this Debenture shall not have been fully assumed by the
controlling entity or otherwise discharged or accounted for; or

                                       10

<PAGE>

                  h. the Company fails to use its reasonable best efforts to
cause its transfer agent to promptly deliver shares of Common Stock after the
Holder delivers a Notice of Conversion pursuant to Section 4.2 hereof;

then, in each and every such case (other than an Event of Default specified in
Section 3.1(c) or 3.1(d) hereof), unless the principal hereof shall have already
become due and payable, by notice in writing to the Company (the "Acceleration
Notice"), a Holder may declare the entire principal amount of the Debentures
owned by such Holder and any interest accrued thereon (and, in lieu thereof, the
aggregate amounts described below) to be due and payable immediately, and upon
any such declaration the same shall become immediately due and payable. If an
Event of Default specified in Section 3.1(b) or 3.1(c) occurs, the principal of,
and any accrued interest on, the Debentures (and, in lieu thereof, the aggregate
amounts described below) shall become and be immediately due and payable without
any declaration or other act on the part of any Holder.

                  With respect to any Event of Default set forth in this Section
3.1, the aggregate amount payable upon such Event of Default shall be equal to
the sum of (i) the Mandatory Prepayment Amount and (ii) the Holder's reasonable
costs of collection. For purposes hereof, the principal amount of the Debentures
shall be treated as outstanding until such date as the Holder shall have been
issued Underlying Shares upon a conversion (or attempted conversion) thereof or
such principal amount of the Debenture has been repaid by the Company to the
Holder. Interest shall accrue daily on the Mandatory Prepayment Amount hereunder
at the Default Rate, from the day after such amount is due (being the date of an
Event of Default) through the date of payment in full thereof (including any
interest payments thereon). Payment of the Mandatory Prepayment Amount pursuant
to this Section 3.1 shall be in addition to any other amounts that may be due to
the Holder pursuant to this Debenture. Within five (5) Business Days of receipt
by the Holder of payment in full of the amount due to the Holder hereunder, the
Holder shall return the Debenture to the Company. In the event of acceleration
relating to the occurrence of an Event of Default the Holder need not provide,
and the Company hereby waives, any presentment, demand, protest or other notice
of any kind, and the Holder may immediately and without expiration of any grace
period enforce any and all of its rights and remedies hereunder and all other
remedies available to it under applicable law. Any demand for payment may be
rescinded and annulled by the Holder at any time prior to payment hereunder. No
such rescission or annulment shall affect any subsequent Event of Default or
impair any right consequent thereon.

                  Upon delivery of any Acceleration Notice to the Company, the
Company shall provide a copy of such notice to the other Holders, if any, within
one (1) Business Day of the Company's receipt thereof. Failure to deliver such
notice shall not affect the validity of the notice delivered by the Holders in
accordance with the provisions referred to above.

                  3.2 Powers and Remedies Cumulative; Delay or Omission Not
Waiver of Default. No right or remedy herein conferred upon or reserved to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.

                                       11

<PAGE>

                  No delay or omission of the Holders to exercise any right or
power accruing upon any Event of Default occurring and continuing as aforesaid
shall impair any such right or power or shall be construed to be a waiver of any
such Event of Default or an acquiescence therein; every power and remedy given
by the Debentures or by law may be exercised from time to time, and as often as
shall be deemed expedient, by the Holders.

                                   ARTICLE IV

                              EXCHANGE; CONVERSION

                  4.1 Right of Holders to Exchange Debentures. Subject to and
upon compliance with the provisions of this Debenture, this Debenture is
exchangeable for an equal principal amount of Debentures of different authorized
denominations, as requested by the Holder surrendering the same; provided,
however, that no exchanges shall be made for Debentures in denominations of less
than $200,000. No service charge will be made for such registration of transfer
or exchange.

                  4.2 Rights of Holders to Convert Debentures into Common Stock.

                  a. Subject to and upon compliance with the provisions of this
Debenture, all or any portion of the principal amount of this Debenture, or any
portion thereof (and any accrued but unpaid interest thereon), at any time from
the date hereof to the close of business on the Stated Maturity Date, may be
converted into duly authorized, validly issued, fully-paid and nonassessable
shares of Common Stock at a price per share equal to $9.00 (the "Conversion
Price").

                  b. If an adjustment in the Conversion Price and, if
applicable, a change in the securities or other property issuable upon
conversion has taken place pursuant to Article III or IV hereof, then the
conversion described in Section 4.2(a) shall be at the applicable Conversion
Price and in such securities or other property as so adjusted. The Holder
desiring to make a conversion shall deliver to the Company, at any time during
usual business hours at the Company's offices, or, at the Purchaser's option, to
the Company's transfer agent, during its usual business hours, a written notice
of election to convert as provided in the form attached hereto as Exhibit A (a
"Notice of Conversion"), accompanied, if required, by this Debenture or the
Debentures, the principal amount of which is to be converted.

                  4.3 Adjustment for Dividends. No payment or adjustment will be
made for dividends on any Common Stock except as provided herein. On conversion
of all or any portion or this Debenture, any accrued and unpaid interest
attributable to the portion of the principal amount of this Debenture being so
converted shall not be canceled, extinguished or forfeited, but rather shall be
paid in full to the Holder thereof, at the option of the Company (i) by the
payment of an amount of shares of Common Stock valued at the Average Price equal
thereto or (ii) by cash payment of such amount. If the Holder converts more than
one Debenture at the same time, the number of shares of Common Stock issuable
upon the conversion shall be based on the total principal amount of the
Debentures converted.

                                       12

<PAGE>

                  4.4  Issuance of Shares Upon Conversion.

                  a. As promptly as practicable, but in any event no later than
three (3) Trading Days after delivery of a Notice of Conversion and, if
required, the surrender, as herein provided, of any Debenture or securities for
conversion, the Company shall deliver or cause to be delivered to, or upon the
written order of, the holder of the Debenture or securities so surrendered a
certificate or certificates representing the number of duly authorized, validly
issued, fully-paid and nonassessable shares of Common Stock, into which such
Debenture or Debentures may be converted in accordance with the provisions of
this Article IV. Such conversion shall be deemed to have been made at the time
and on the date the Notice of Conversion is delivered to the Company (the
"Conversion Date"), provided, that, if required, the Debenture or Debentures
being converted shall promptly be delivered to the Company. The rights of the
Holder of such Debenture or Debentures as a Holder (subject to the Company's
satisfaction of its obligations hereunder with respect to such conversion) shall
cease as of the Conversion Date with respect to the converted portion of such
Debenture, and the Person or Persons entitled to receive the shares of Common
Stock upon conversion of such Debenture or Debentures shall be treated for all
purposes as having become the record holder or holders of such shares of Common
Stock at such time, and such conversion shall be at the Conversion Price in
effect at such time. Subject to paragraph 4.4(b), in the case of any Debenture
which is converted in part only, upon such conversion the Company shall execute
and deliver to the holder thereof, as requested by such holder, a new Debenture
or securities of authorized denominations in aggregate principal amount equal to
the unconverted portion of such Debenture.

                  b. Notwithstanding anything to the contrary set forth herein,
upon conversion of a Debenture in accordance with the terms thereof, the Holder
shall not be required to physically surrender the Debenture to the Company
unless the entire unpaid principal amount of the Debenture is so converted. The
Holder and the Company shall maintain records showing the principal amount so
converted and the dates of such conversions or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require
physical surrender of the Debenture upon each such conversion. In the event of
any dispute or discrepancy, such records of the Company shall be controlling and
determinative in the absence of manifest error. Notwithstanding the foregoing,
if any portion of the Debenture is converted as aforesaid, the Holder may not
transfer the Debenture unless the Holder first physically surrenders the
Debenture to the Company, whereupon the Company shall forthwith issue and
deliver upon the order of the Holder a new Debenture of like tenor, registered
as the Holder (upon payment by the Holder of any applicable transfer taxes) may
request, representing in the aggregate the remaining unpaid principal amount of
the Debenture. The Holder and any assignee, by acceptance of the Debenture,
acknowledge and agree that, by reason of the provisions of this paragraph,
following conversion of a portion of a Debenture, the unpaid and unconverted
principal amount of such Debenture represented by such Debenture may be less
than the amount stated on the face thereof.

                  c. In lieu of delivering physical certificates representing
the Debenture Shares, provided the Company's transfer agent is participating in
the Depositary Trust Company Fast Automated Debentures Transfer program, upon
request of the Holder and in compliance with the provisions of Sections 4.1, 4.2
and 4.4, the Company shall use its best efforts to cause its transfer agent to
electronically transmit the shares of Common Stock issuable upon conversion of
the Debenture to the Holder by crediting the account of the Holder's Prime
Broker

                                       13

<PAGE>

with DTC through its Deposit Withdrawal Agent Commission system. The time period
for delivery described in the immediately preceding paragraph shall apply to the
electronic transmittals described herein.

                  d. In addition to any other rights available to the Holder, if
the Company fails to deliver to the Holder such certificate or certificates
pursuant to Section 4.4(a), including for purposes hereof, any shares of Common
Stock to be issued on the Conversion Date on account of accrued but unpaid
interest hereunder, by the third (3rd) trading day after the Conversion Date,
and if after such third (3rd) trading day the Holder is required to purchase (in
an open market transaction or otherwise) Common Stock to deliver in satisfaction
of a sale by such Holder of the Underlying Shares which the Holder was entitled
to receive upon such conversion (a "Buy-In"), then the Company shall (A) pay in
cash to the Holder (in addition to any remedies available to or elected by the
Holder) the amount by which (x) the Holder's total purchase price (including
brokerage commissions, if any) for the Common Stock so purchased exceeds (y) the
product of (1) the aggregate number of shares of Common Stock that such Holder
was entitled to receive from the conversion at issue multiplied by (2) the Per
Share Market Value on the Conversion Date and (B) at the option of the Holder,
either return the Debentures for which such conversion was not honored or
deliver to such Holder the number of shares of Common Stock that would have been
issued had the Company timely complied with its conversion and delivery
obligations under Section 4.4(a). For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted conversion of Debentures with respect to which the market price of
the Underlying Shares on the date of conversion totaled $10,000, under clause
(A) of the immediately preceding sentence the Company shall be required to pay
the Holder $1,000. The Holder shall provide the Company written notice
indicating the amounts payable to the Holder in respect of the Buy-In.

                  4.5 Adjustment of Conversion Price. In addition to any
adjustment to the Conversion Price provided elsewhere in this Debenture, the
Conversion Price in effect at any time shall be subject to adjustment from time
to time upon the happening of certain events, as follows:

                  a. Common Stock Dividends; Common Stock Splits; Reverse Common
Stock Splits. If the Company, at any time while this Debenture is outstanding,
(a) shall pay a stock dividend on its Common Stock, (b) subdivide outstanding
shares of Common Stock into a larger number of shares, (c) combine outstanding
shares of Common Stock into a smaller number of shares, or (d) issue by
reclassification of shares of Common Stock any shares of Capital Stock of the
Company, the Conversion Price shall be multiplied by a fraction the numerator of
which shall be the number of shares of Common Stock (excluding treasury shares,
if any) outstanding before such event and the denominator of which shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding
after such event. Any adjustment made pursuant to this paragraph 4.5(a) shall
become effective immediately after the record date for the determination of
stockholders entitled to receive such dividend or distribution and shall become
effective immediately after the effective date in the case of a subdivision,
combination or re-classification.

                  b. Rights; Options; Warrants or Other Securities. If the
Company, at any time while this Debenture is outstanding, shall fix a record
date for the issuance of rights,

                                       14

<PAGE>

options, warrants or other securities to all of the holders of Common Stock
entitling them to subscribe for or purchase, convert to, exchange for or
otherwise acquire shares of Common Stock for no consideration or at a price per
share less than the Conversion Price, the Conversion Price shall be multiplied
by a fraction, the denominator of which shall be the number of shares of Common
Stock (excluding treasury shares, if any) outstanding on the date of issuance of
such rights, options, warrants or other securities plus the number of additional
shares of Common Stock offered for subscription, purchase, conversion, exchange
or acquisition, as the case may be, and the numerator of which shall be the
number of shares of Common Stock (excluding treasury shares, if any) outstanding
on the date of issuance of such rights, options, warrants or other securities
plus the number of shares which the aggregate offering price of the total number
of shares so offered would purchase at the Conversion Price. Such adjustment
shall be made whenever such rights, options, warrants or other securities are
issued, and shall become effective immediately after the record date for the
determination of shareholders entitled to receive such rights or warrants.
However, upon the expiration of any rights, options, warrants or other
securities to purchase Common Stock the issuance of which resulted in an
adjustment in the Conversion Price pursuant to this Section 4.5(b), if any such
rights, options, warrants or other securities shall expire and all or any
portion thereof shall not have been exercised, the Conversion Price shall
immediately upon such expiration be re-computed and effective immediately upon
such expiration be increased to the price which it would have been (but
reflecting any other adjustments in the Conversion Price made pursuant to the
provisions of Section 4.5(g) after the issuance of such rights, options,
warrants or other securities) had the adjustment of the Conversion Price made
upon the issuance of such rights, warrants, options or other securities been
made on the basis of the issuance of only that number of shares of Common Stock
(if any) actually purchased upon the exercise of such rights, options, warrants
or other securities actually exercised.

                  c. Subscription Rights. If the Company, at any time while this
Debenture is outstanding, shall fix a record date for the distribution to all of
the holders of Common Stock evidence of its indebtedness or assets or rights,
options, warrants or other securities entitling them to subscribe for, purchase,
convert to, exchange for or to otherwise acquire any security (excluding those
referred to in Sections 4.5(a) and (b) above), then in each such case the
Conversion Price at which the Debenture shall thereafter be exercisable shall be
determined by multiplying the Conversion Price in effect immediately prior to
the record date fixed for determination of shareholders entitled to receive such
distribution by a fraction, the denominator of which shall be the Per Share
Market Value of Common Stock determined as of the record date mentioned above,
and the numerator of which shall be such Per Share Market Value of the Common
Stock on such record date less the then fair market value at such record date of
the portion of such assets or evidence of indebtedness so distributed applicable
to one outstanding share of Common Stock as determined by the Board of Directors
in good faith; provided, however, that in the event of a distribution exceeding
ten percent (10%) of the net assets of the Company, such fair market value shall
be determined by an Appraiser selected in good faith by the Holder; and
provided, further, that the Company, after receipt of the determination by such
Appraiser shall have the right to select an additional Appraiser meeting the
same qualifications, in good faith, in which case the fair market value shall be
equal to the average of the determinations by each such Appraiser. Such
adjustment shall be made whenever any such distribution is made and shall become
effective immediately after the record date mentioned above.

                                       15

<PAGE>

                  d. Rounding. All calculations under this Section 4.5 shall be
made to the nearest cent or the nearest l/l00th of a share, as the case may be.

                  e. Notice of Adjustment. Whenever the Conversion Price is
adjusted pursuant to paragraphs 4.5(a), (b), (c), (f) or (g) the Company shall
promptly deliver to the Holder a notice setting forth the Conversion Price after
such adjustment and setting forth a brief statement of the facts requiring such
adjustment.

                  f. Certain Events. If any issuance of securities or
distributions that would adversely affect the rights of the Holder occurs which
is similar to those in paragraphs 4.5(a), (b), (c) and (g), but is not expressly
provided for by such provisions (including, without limitation, the granting of
stock appreciation rights, phantom stock rights or other rights with equity
features), then the Company's Board of Directors will make an appropriate
adjustment in the Conversion Price so as to protect the rights of the Holder, or
assigns, of this Debenture; provided, however, that no such adjustment will
increase the Conversion Price as otherwise determined pursuant to this Section
4.5. Additionally, notwithstanding anything to the contrary contained in this
Agreement, no adjustment shall be made to the Conversion Price resulting from
the Reorganization.

                  g. Modification of Issuance Terms. If the Company, at any time
while this Debenture is outstanding, takes any of the actions described in this
Section 4.5(g), the Holder shall have the right to amend this Debenture as set
forth below:

                           (i) Issuance of Common Stock. If at any time while
         this Debenture is outstanding the Company issues or sells, or is deemed
         to have issued or sold, any shares of Common Stock (other than any
         Excluded Securities), for a consideration per share less than the
         Conversion Price in effect immediately prior to such issuance or sale,
         then the Holder shall have the option to amend the issuance terms of
         the Common Stock issued upon conversion of the Debenture so that the
         issuance terms are equivalent to the issuance terms of such offering.
         For the purpose of this Section 4.5(g), the following shall be
         applicable:

                                    (A) Issuance of Options. If at any time
                  while this Debenture is outstanding the Company in any manner
                  grants, issues or sells any rights, options, warrants, options
                  to subscribe for or to purchase Common Stock or any stock or
                  other securities convertible into or exchangeable for Common
                  Stock (other than any Excluded Securities) (such rights,
                  warrants or options being herein called "Options" and such
                  convertible or exchangeable stock or securities being herein
                  called "Convertible Securities") and the price per share for
                  which Common Stock is issuable upon the exercise of such
                  Options or upon conversion or exchange of such Convertible
                  Securities is less than the Conversion Price in effect
                  immediately prior to such grant, then the Holder shall have
                  the option to amend the issuance terms of the Common Stock
                  issued upon conversion of the Debentures so that the issuance
                  terms are equivalent to the issuance terms of such Options.

                                       16

<PAGE>

                                    (B) Issuance of Convertible Securities. If
                  at any time while this Debenture is outstanding the Company in
                  any manner issues or sells any Convertible Securities (other
                  than any Excluded Securities) and the price per share for
                  which Common Stock is issuable upon such conversion or
                  exchange is less than the Conversion Price in effect
                  immediately prior to issuance or sale, then the Holder shall
                  have the option to amend the issuance terms of the Common
                  Stock issued upon conversion of the Debentures so that the
                  issuance terms are equivalent to the issuance terms of such
                  Convertible Securities.

                                    (C) Change in Option Price or Rate of
                  Conversion. If there is a change at any time in (i) the
                  Purchase Price provided for in any Options (other than
                  Excluded Securities), (ii) the additional consideration, if
                  any, payable upon the issue, conversion or exchange of any
                  Convertible Securities or (iii) the rate at which any
                  Convertible Securities are convertible into or exchangeable
                  for Common Stock, then immediately after such change in option
                  price or rate of conversion the Conversion Price in effect at
                  the time of such change shall be readjusted to the Conversion
                  Price which would have been in effect at such time had such
                  Options or Convertible Securities still outstanding provided
                  for such changed Purchase Price, additional consideration or
                  changed conversion rate, as the case may be, at the time
                  initially granted, issued or sold; provided that no adjustment
                  shall be made if such adjustment would result in an increase
                  of the Conversion Price then in effect.

                                    (D) Effect on Conversion Price of Certain
                  Events. For purposes of determining the adjusted Conversion
                  Price under this Section 4.5(g)(i), the following shall be
                  applicable:

                                            (I) Calculation of Consideration
                           Received. If any Common Stock, Options or Convertible
                           Securities are issued or sold or deemed to have been
                           issued or sold for cash, the consideration received
                           therefor will be deemed to be the net amount received
                           by the Company therefor. In case any Common Stock,
                           Options or Convertible Securities are issued or sold
                           for a consideration other than cash, the amount of
                           the consideration other than cash received by the
                           Company will be the fair value of such consideration,
                           except where such consideration consists of
                           securities, in which case the amount of consideration
                           received by the Company in respect of such securities
                           will be the Average Price on the Trading Day
                           immediately preceding the date of receipt. In case
                           any Common Stock, Options or Convertible Securities
                           are issued to the owners of the non-surviving entity
                           in connection with any merger in which the Company is
                           the surviving entity the amount of consideration
                           therefor will be deemed to be the fair value of such
                           portion of the net assets and business of the
                           non-surviving entity as is attributable to such
                           Common Stock, Options or Convertible Securities, as
                           the case may be. The fair value of any consideration
                           other than cash or securities will be determined
                           jointly by the Company and the Holders of Debentures
                           representing a majority of the aggregate principal

                                       17

<PAGE>

                           amount of Debentures then outstanding. If such
                           parties are unable to reach agreement within ten (10)
                           days after the occurrence of an event requiring
                           valuation (the "Valuation Event"), the fair value of
                           such consideration will be determined within
                           forty-eight (48) hours of the tenth (10th) day
                           following the Valuation Event by an Appraiser
                           selected in good faith by the Company and agreed upon
                           by the Holders of Debentures representing a majority
                           of the aggregate principal amount of Debentures then
                           outstanding. The determination of such Appraiser
                           shall be binding upon all parties absent manifest
                           error.

                                            (II) Integrated Transactions. In
                           case any Option is issued in connection with the
                           issue or sale of other securities of the Company,
                           together comprising one integrated transaction in
                           which no specific consideration is allocated to such
                           Options by the parties thereto, the Options will be
                           deemed to have been issued for an aggregate
                           consideration of $.10.

                                            (III) Treasury Shares. The number of
                           shares of Common Stock outstanding at any given time
                           does not include shares owned or held by or for the
                           account of the Company, and the disposition of any
                           shares so owned or held will be considered an issue
                           or sale of Common Stock.

                                            (IV) Record Date. If the Company
                           takes a record of the holders of Common Stock for the
                           purpose of entitling them (1) to receive a dividend
                           or other distribution payable in Common Stock,
                           Options or in Convertible Securities or (2) to
                           subscribe for or purchase Common Stock, Options or
                           Convertible Securities, then such record date will be
                           deemed to be the date of the issue or sale of the
                           shares of Common Stock deemed to have been issued or
                           sold upon the declaration of such dividend or the
                           making of such other distribution or the date of the
                           granting of such right of subscription or purchase,
                           as the case may be.

                  4.6 Restriction on Conversion by Either the Holder or the
Company. Notwithstanding anything herein to the contrary, in no event shall any
Holder or the Company have the right or be required to convert any or all of the
aggregate principal amount and interest accrued thereon of this Debenture if, as
a result of such conversion, the aggregate number of shares of Common Stock
beneficially owned by such Holder and its Affiliates would exceed [9.99] [4.99]%
of the outstanding shares of Common Stock following such conversion. For
purposes of this Section 4.6, beneficial ownership shall be calculated in
accordance with Section 13(d) of the Exchange Act. The provisions of this
Section 4.6 may be waived by a Holder as to itself (and solely as to itself)
upon not less than 65 days prior written notice to the Company, and the
provisions of this Section 4.6 shall continue to apply until such 65th day (or
later, if stated in the notice of waiver).

                  4.7 Officer's Certificate. Whenever the number of shares
purchasable upon conversion shall be adjusted as required by the provisions of
Section 4.5, the Company shall forthwith file in the custody of its Secretary or
an Assistant Secretary at its principal office and with its stock transfer

                                       18

<PAGE>

agent, if any, an officer's certificate showing the adjusted number of shares
determined as herein provided, setting forth in reasonable detail the facts
requiring such adjustment and the manner of computing such adjustment. Each such
officer's certificate shall be signed by the chairman, president or chief
financial officer of the Company and by the secretary or any assistant secretary
of the Company. Each such officer's certificate shall be made available at all
reasonable times for inspection by any holder of the Debentures and the Company
shall, forthwith after each such adjustment, deliver a copy of such certificate
to the each of the Holders.

                  4.8 Reservation of Shares. The Company covenants that it will
at all times reserve and keep available out of its authorized shares of Common
Stock, free from preemptive rights, solely for the purpose of issue upon
conversion of the Debentures as herein provided, such number of shares of the
Common Stock as shall then be issuable upon the conversion of all outstanding
Debentures into Common Stock in accordance with Section 3.6(b) of the Purchase
Agreement (the "Reserved Amount"). The Company covenants that all shares of the
Common Stock issued upon conversion of the Debenture which shall be so issuable
shall, when issued, be duly and validly issued and fully paid and
non-assessable. If, at any time a Holder of this Debenture submits a Notice of
Conversion, and the Company does not have sufficient authorized but unissued
shares of Common Stock available to effect such conversion in accordance with
the provisions of this Article IV, subject to Section 4.15 hereof, the Company
shall issue to the Holder all of the shares of Common Stock which are then
available to effect such conversion.

                  4.9 Compliance With Governmental Requirements. The Company
covenants that if any shares of Common Stock required to be reserved for
purposes of conversion of Debentures hereunder require registration with or
approval of any governmental authority under any Federal or state law, or any
national securities exchange, before such shares may be issued upon conversion,
the Company will use its best efforts to cause such shares to be duly registered
or approved, as the case may be.

                  4.10 Fractional Shares. Upon a conversion hereunder, the
Company shall not be required to issue stock certificates representing fractions
of shares of the Common Stock, but may if otherwise permitted, make a cash
payment in respect of any final fraction of a share based on the Per Share
Market Value at such time. If the Company elects not, or is unable, to make such
a cash payment, the holder shall be entitled to receive, in lieu of the final
fraction of a share, one whole share of Common Stock.

                  4.11 Payment of Tax Upon Issue or Transfer. The issuance of
certificates for shares of the Common Stock on conversion of the Debentures
shall be made without charge to the Holders thereof for any documentary stamp or
similar taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon conversion in a name other than that of the Holder
of such Debentures so converted and the Company shall not be required to issue
or deliver such certificates unless or until the Person or Persons requesting
the issuance thereof shall have paid to the Company the amount of such tax or
shall have established to the satisfaction of the Company that such tax has been
paid.

                                       19

<PAGE>

                  4.12 Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been received (a) upon hand delivery (receipt acknowledged) or delivery by telex
(with correct answer back received), telecopy or facsimile (with transmission
confirmation report) at the address or number designated below (if received by
5:00 p.m. EST where such notice is to be received), or the first Business Day
following such delivery (if received after 5:00 p.m. EST where such notice is to
be received) or (b) on the second Business Day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications are (i) if to the Company to HealthAxis Inc., 2500 Dekalb
Pike, Norristown, PA 19404 Attn: President, fax no. (610) 279-4498 with copies
to Blank Rome Comisky & McCauley LLP, One Logan Square, Philadelphia, PA 19103,
Attn: Barry Genkin, fax no. (215) 988-6910 and (ii) if to any Holder to the
address set forth on Schedule II to the Purchase Agreement with copies to Akin,
Gump, Strauss, Hauer & Feld, L.L.P., 590 Madison Avenue, New York, New York
10022, Attn: James Kaye, fax no. (212) 872-1002 or such other address as may be
designated in writing hereafter, in the same manner, by such Person.

                  4.13 Allocation of Reserved Amount. The Reserved Amount shall
be allocated pro rata among the Purchasers based on the principal amount of
Debentures issued to each Purchaser pursuant to the Purchase Agreement
Amendment. Each increase to the Reserved Amount shall be allocated pro rata
among the Purchasers based on the principal amount of Debentures held by each
Purchaser at the time of the increase in the Reserved Amount. In the event a
Purchaser shall sell or otherwise transfer any of such Purchaser's Debentures,
each transferee shall be allocated a pro rata portion of such transferor's
Reserved Amount. Any portion of the Reserved Amount which remains allocated to
any person or entity which does not hold any Debentures shall be allocated to
the remaining Purchasers, pro rata, based on the principal amount of such
Debentures then held by such Purchasers.

                                    ARTICLE V

                                  MISCELLANEOUS

                  5.1 Modification of Debentures. This Debenture may be modified
without prior notice to any Holder upon the written consent of the Company and
the Holders of more than 90% of the principal amount of the Debentures then
outstanding. The Holders of more than 90% of the principal amount of the
Debentures then outstanding may waive compliance by the Company with any
provision of this Debenture without prior notice to any Holder. However, without
the consent of each Holder affected, an amendment, supplement or waiver may not
(1) reduce the amount of Debentures whose Holders must consent to an amendment,
supplement or waiver, (2) reduce the principal amount of or extend the fixed
maturity of any Debenture or (3) make any Debenture payable in money or property
other than as stated in the Debentures.

                  5.2 Governing Law; Consent to Jurisdiction; Waiver of Jury
Trial. This Debenture shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York without regard to the
principles of conflicts of law thereof. Each party hereby irrevocably submits to

                                       20

<PAGE>

the nonexclusive jurisdiction of the state and federal courts sitting in the
City of New York, Borough of Manhattan, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert in
any suit, action or proceeding, any claim that it is not personally subject to
the jurisdiction of any such court, that such suit, action or proceeding is
improper. The parties hereto, including all guarantors or endorsers, hereby
waive presentment, demand, notice, protest and all other demands and notices in
connection with the delivery, acceptance, performance and enforcement of this
Debenture, except as specifically provided herein, and assent to extensions of
the time of payment, or forbearance or other indulgence without notice. Any
Holder of this Debenture by acceptance of this Debenture agrees to be bound by
the provisions of this Debenture, which are expressly binding on such Holder.
EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
CONTEMPLATED HEREBY.

                  5.3 Rank. Except as expressly provided herein, no provision of
this Debenture shall alter or impair the obligation of the Company to pay the
principal of, and interest and liquidated damages (if any) on, this Debenture at
the time, place, and rate, and in the coin or currency (or, as provided herein,
in Common Stock), herein prescribed. This Debenture is a direct obligation of
the Company. Except as otherwise provided herein, the Company may not
voluntarily prepay the outstanding principal amount of the Debenture.

                  5.4 Debentures Owned by Company Deemed Not Outstanding. In
determining whether the holders of the requisite aggregate principal amount of
Debentures have concurred in any direction, consent or waiver under this
Debenture, Debentures which are owned by the Company or any other obligor on the
Debentures or by any Person directly or indirectly controlling or controlled by
or under direct or indirect common control with the Company or any other obligor
on the Debentures shall be disregarded and deemed not to be outstanding for the
purpose of any such determination; provided that any Debentures owned by the
Purchasers shall be deemed outstanding for purposes of making such a
determination. Debentures so owned which have been pledged in good faith may be
regarded as outstanding if the pledgee establishes to the satisfaction of the
Company the pledgee's right so to act with respect to such Debentures and that
the pledgee is not the Company or any other obligor upon the Debentures or any
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Company or any other obligor on the Debentures.

                  5.5 Notice to Holder Prior to Taking Certain Types of Action;
Reclassification, Etc. In case:

                  a.       the  Company  shall  authorize  the  issuance, at any
time from and after the Original Issue Date, to all holders of any class or
series of its Capital Stock, of rights or warrants to subscribe for or purchase
shares of its capital stock or of any other right;

                  b.       the Company shall  authorize,  at any time from and
after the Original Issue Date, the distribution to all holders of any class or
series of its Capital Stock, of evidences of its indebtedness or assets;

                                       21

<PAGE>

                  c.       the Company  shall  declare a dividend  (or other
distribution) on its Common Stock or the Company shall declare a special
nonrecurring dividend on or a redemption of its Common Stock;

                  d.       of any subdivision, combination or reclassification
of any class or series of Capital Stock of the Company at any time from and
after the Original Issue Date or of any consolidation or merger to which the
Company is a party and for which approval by the shareholders of the Company is
required, or of the sale or transfer of all or substantially all of the assets
of the Company or any compulsory share exchange whereby the Common Stock is
converted into other securities, cash or property; or

                  e.       of the voluntary or involuntary dissolution,
liquidation or winding up of the Company;

then the Company shall cause to be delivered to the Holder, at least 10 days
prior to the applicable record date hereinafter specified, a written notice
stating (i) the date as of which the holders of record of such class or series
of Capital Stock are to be entitled to receive any such rights, warrants or
distribution are to be determined, or (ii) the date on which any such
subdivision, combination, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation, winding up or other action is expected to
become effective, and the date as of which it is expected that holders of record
of such class or series of Capital Stock record shall be entitled to exchange
their stock for securities or other property, if any, deliverable upon such
subdivision, combination, reclassification, consolidation, merger, sale,
transfer, dissolution, liquidation, winding up or other action.

                  The failure to give the notice required by this Section 5.5 or
any defect therein shall not affect the legality or validity of any
distribution, right, warrant, subdivision, combination, reclassification,
consolidation, merger, sale, transfer, dissolution, liquidation, winding up or
other action, or the vote upon any of the foregoing.

                  In the event of any reclassification of the Common Stock or
any compulsory share exchange pursuant to which the Common Stock is converted
into other securities, cash or property, the Holder shall have the right
thereafter, which must be exercised within ten (10) Business Days of receiving
written notice of such reclassification or conversion, to convert the principal
amount of (and any accrued by unpaid interest on) this Debenture into the
securities, cash or property receivable upon or deemed to be held by holders of
Common Stock following such reclassification or compulsory share exchange, and
the Holder shall be entitled upon such event to receive such amount of
securities, cash or property as a holder of the number of shares of Common Stock
into which the principal amount (and any accrued but unpaid interest thereon) of
this Debenture could have been converted immediately prior to such event would
have received.

                  5.6      Effect of  Headings.  The Section  headings  herein
are for convenience only and shall not affect the construction hereof.

                                       22

<PAGE>

                  5.7 No Rights as Stockholder. This Debenture shall not entitle
the Holder to any rights as a stockholder of the Company, including without
limitation, the right to vote, to receive dividends and other distributions,
unless and to the extent converted into shares of Common Stock in accordance
with the terms hereof.

                  5.8 Failure or Indulgence Not Waiver. No failure or delay on
the part of the Holder in the exercise of any power, right or privilege
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further
exercise thereof or of any other right, power or privileges. All rights and
remedies existing hereunder are cumulative to, and not exclusive of, any rights
or remedies otherwise available.

                                       23

<PAGE>

                  IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed as of this ___ day of ____________, 200_.

                                             HEALTHAXIS INC.

                                             By ________________________________
                                             Name:
                                             Title:

<PAGE>

                                                                       EXHIBIT A

                                 HEALTHAXIS INC.
                                CONVERSION NOTICE

Reference is made to the Debenture (the "Debenture") issued by HealthAxis Inc.
In accordance with and pursuant to the Debenture, the undersigned hereby
irrevocably elects to convert the principal amount of the Debenture, indicated
below into shares of Common Stock, par value $.10 per share (the "Common
Stock"), of the Company, by tendering the Debenture specified below as of the
date specified below.

Date of Conversion: ____________________________________________________________

Aggregate Principal Amount to be converted:_____________________________________

Debenture number(s) of Debenture to be converted:_______________________________

Please confirm the following information:

Conversion Price: ___________________

Number of shares of Common Stock to be issued:__________

Please issue the Common Stock into which the Debenture is being converted and,
if applicable, any check drawn on an account of the Company in the following
name and to the following address:

Issue to:___________________________________________

Facsimile Number:___________________________________

Authorization: By:__________________________________

                           Name:
                           Title:

Dated: ____________

Account Number (if electronic book entry transfer):_____________________________

Transaction Code Number (if electronic book entry transfer):____________________

<PAGE>

                                    EXHIBIT B

                                 FORM OF WARRANT

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES
AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR QUALIFIED
UNDER APPLICABLE OR STATE SECURITIES BLUE SKY LAWS, AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND
APPLICABLE STATE SECURITIES OR BLUE SKY LAWS.

______________, 200_

______ shares                                                 Warrant No. ______

                                 HEALTHAXIS INC.
                             STOCK PURCHASE WARRANT

Registered Owner:  ___________

         This certifies that, for value received, HealthAxis Inc., a
Pennsylvania corporation, the ("Company") grants the following rights to the
Registered Owner, or assigns, of this Warrant:

         1. Definitions. Capitalized terms used herein and not otherwise defined
herein shall have the meanings given to such terms in the Purchase Agreement. As
used in this Warrant, the following terms have the following meanings:

         "Affiliate" means, with respect to any Person, any other Person that
directly or indirectly controls or is controlled by or under common control with
such Person. For the purposes of this definition, "control," when used with
respect to any Person, means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of such Person,
whether through the ownership of voting securities, by contract or otherwise;
and the terms of "affiliated," "controlling" and "controlled" have meanings
correlative to the foregoing.

         "Appraiser" shall mean a nationally recognized or major regional
investment banking firm or firm of independent certified public accountants of
recognized standing.

<PAGE>

         "Approved Stock Plan" means any contract, plan or agreement which has
been approved by the Board of Directors of the Company, or committee thereof
pursuant to which the Company's securities may be issued to any employee,
officer, director or consultant, or any business or strategic partner deemed
important to the operations of the Company, the primary purpose of which is
other than to raise capital for the Company.

         "Average Price" on any date means (x) the sum of the Per Share Market
Value for the ten (10) Trading Days immediately preceding such date minus (y)
the highest and lowest Per Share Market Value during the ten (10) Trading Days
immediately preceding such date, divided by (z) eight (8).

         "Business Day" means any day except Saturday, Sunday and any day which
shall be a legal holiday or a day on which banking institutions in the state of
New York generally are authorized or required by law or other government actions
to close.

         "Closing" means the closing of the transactions contemplated by the
Purchase Agreement Amendment.

         "Closing Date" shall mean _____________, 200_.

         "Common Stock" means the shares of the Company's Common Stock, par
value $.10 per share.

         "Company" means HealthAxis Inc., a Pennsylvania corporation.

         "Convertible Securities" has the meaning assigned to it in Section
7(h)(i)(A) hereof.

         "Excluded Securities" means (i) the Underlying Shares, (ii) the shares
of Common Stock issuable upon exercise of the warrants issued to Royal Bank of
Canada in connection with the transactions contemplated by the Purchase
Agreement Amendment, (iii) shares of Common Stock (including options and
warrants) deemed to have been issued by the Company in connection with an
Approved Stock Plan, (iv) shares of Common Stock issuable upon the exercise of
any options or warrants outstanding on the date hereof and listed in Schedule
2.1(c) of the Purchase Agreement, (v) shares of Common Stock issued or deemed to
have been issued as consideration for an acquisition by the Company of a
division, assets or business (or stock constituting any portion thereof) from
another person, (vi) shares of Common Stock (or options or warrants to purchase
Common Stock) issued in any merger or reorganization transaction involving the
Company and HealthAxis.com, Inc., which transaction is contemplated to be
consummated by March 31, 2001 and (vii) shares of Common Stock, or options or
warrants to purchase Common Stock, issued to a strategic investor in connection
with a strategic commercial agreement approved by the Company's Board of
Directors, if and only if such shares of Common Stock, or such options or
warrants to purchase such Common Stock, are sold, granted, issued, issuable,
exercisable or convertible, as the case may be, at a price per share which is
greater than or equal to $3.00.

         "Exercise Period" has the meaning assigned to it the Section 5 hereof.

                                       2

<PAGE>

         "Exercise Price" has the meaning assigned to it in Section 4 hereof

         "Options" has the meaning assigned to it in Section 7(h)(i)(A) hereof.

         "Per Share Market Value" means on any particular date (i) the closing
bid price per share of the Common Stock on such date on the National Market
System of the Nasdaq Stock Market or other registered national stock exchange on
which the Common Stock is then listed or if there is no such price on such date,
then the closing bid price on such exchange or quotation system on the date
nearest preceding such date, or (ii) if the Common Stock is not listed then on
the National Market System of the Nasdaq Stock Market or any registered national
stock exchange, the closing bid price for a share of Common Stock in the
over-the-counter market, as reported by the National Quotation Bureau
Incorporated (or similar organization or agency succeeding to its functions of
reporting prices) at the close of business on such date, or (iii) if the Common
Stock is not then publicly traded the fair market value of a share of Common
Stock as determined by an Appraiser selected in good faith by the holder of this
Warrant; provided, however, that the Company, after receipt of the determination
by such Appraiser, shall have the right to select, in good faith, an additional
Appraiser, in which case the fair market value shall be equal to the average of
the determinations by each such Appraiser; and provided, further that all
determinations of the Per Share Market Value shall be appropriately adjusted for
any stock dividends, stock splits or other similar transactions during such
period.

         "Purchase Agreement" means that certain Securities Purchase Agreement,
dated as of September 14, 1999, by and among the Company and the Purchasers, as
amended by the Purchase Agreement Amendment.

         "Purchase Agreement Amendment" means that certain Amendment to the
Purchase Agreement, dated as of September 28, 2000, by and among the Company and
the purchasers thereto.

         "Purchaser" has the meaning set forth in the Purchase Agreement.

         "Registered Owner" means the person identified on the face of this
Warrant as the registered owner hereof or such other person as shown on the
records of the Company as being the registered owner of this Warrant or their
assigns.

         "Registration Rights Agreement" means that certain Amended and Restated
Registration Rights Agreement, dated ____________, 200_, among the Company and
the purchasers thereto.

         "Trading Day(s)" means any day on which the primary market on which
shares of Common Stock are listed is open for trading.

         "Underlying Shares" has the meaning assigned to it in Section 2.1(d) of
the Purchase Agreement.

         "Warrant(s)" means the warrants issuable at the Closing.

                                       3

<PAGE>

     2. Issue. Upon tender (as defined in Section 6 hereof) to the Company, the
Company, within three (3) Business Days of the date thereof, shall issue to the
Registered Owner, or assigns, up to the number of shares specified in Section 3
hereof of fully paid and nonassessable shares of Common Stock that the
Registered Owner, or assigns, is otherwise entitled to purchase.

     3. Number of Shares. The total number of shares of Common Stock that the
Registered Owner, or assigns, of this Warrant is entitled to receive upon
exercise of this Warrant (the "Warrant Shares") is _____ shares, subject to
adjustment from time to time as to the number and kind of securities for which
this Warrant is exercisable, all as set forth in Section 7 hereof. The Company
shall at all times reserve and hold available out of its authorized and unissued
shares of Common Stock or other securities, as the case may be, sufficient
shares of Common Stock to satisfy all conversion and purchase rights represented
by outstanding convertible securities, options and warrants, including this
Warrant. The Company covenants and agrees that all shares of Common Stock or
other securities, as the case may be, that may be issued upon the exercise of
this Warrant shall, upon issuance, be duly and validly issued, fully paid and
nonassessable, free from all taxes, liens and charges with respect to the
purchase and the issuance of the shares, and shall not have any legend or
restrictions on resale, expect as required by the Purchase Agreement.

     4. Exercise Price. The initial per share exercise price of this Warrant,
representing the price per share at which the shares of stock issuable upon
exercise of this Warrant may be purchased, is $3.01 subject to adjustment from
time to time pursuant to the provisions of Section 7 hereof (the "Exercise
Price").

     5. Exercise Period. This Warrant may be exercised from the Closing Date up
to and including September 13, 2005 (the "Exercise Period"). If not exercised
during this period, this Warrant and all rights granted under this Warrant
shall expire and lapse.

     6. Tender; Issuance of Certificates.

              a. This Warrant may be exercised, in whole or in part, by (i)
     actual delivery of (a) the Exercise Price in cash, (b) a duly executed
     Warrant Exercise Form, a copy of which is attached to this Warrant as
     Exhibit A, properly executed by the Registered Owner, or assigns, of
     this Warrant, and (c) by surrender of this Warrant, or (ii) if the
     resale of the Warrant Shares by the Registered Owner is not then
     registered pursuant to an effective registration statement under the
     Securities Act, delivery to the Company of a written notice of an
     election to effect a "Cashless Exercise" (as defined below) for the
     Warrant Shares specified in the Warrant Exercise Form. The Warrant
     Shares so purchased shall be deemed to be issued to the Registered
     Owner as of the close of business on the date on which this Warrant
     shall have been surrendered, the completed Warrant Exercise Form shall
     have been delivered and payment shall have been made for such shares as
     set forth above. The payment and Warrant Exercise Form must be
     delivered to the registered office of the Company either in person or
     as set for in Section 13 hereof.

                                       4

<PAGE>

                  b. Commencing upon the earlier of (i) ninety (90) days from
         the Filing Date (as defined in the Registration Rights Agreement), or
         (ii) August 1, 2001, if, and only if, at the time of exercise of this
         Warrant, the Warrant Shares are not saleable pursuant to an effective
         registration statement, then in addition to the exercise of all or a
         part of this Warrant by payment of the Exercise Price in cash as
         provided above, and in lieu of such payment, the Registered Owner shall
         have the right to effect a cashless exercise (a "Cashless Exercise").
         In the event of a Cashless Exercise the Registered Owner may exercise
         this Warrant in whole or in part by surrendering this Warrant in
         exchange for the number of shares of Common Stock equal to the product
         of (x) the number of shares as to which this Warrant is being exercised
         multiplied by (y) a fraction, the numerator of which is the Per Share
         Market Value of the Common Stock less the Exercise Price then in effect
         and the denominator of which is the Per Share Market Value (in each
         case adjusted for fractional shares as herein provided).

                  c. In lieu of physical delivery of the Warrant, provided the
         Company's transfer agent is participating in the Depositary Trust
         Company ("DTC") Fast Automated Securities Transfer ("FAST") program,
         upon request of the Registered Owner and in compliance with the
         provisions hereof, the Company shall use its best efforts to cause its
         transfer agent to electronically transmit the Warrant Shares to the
         Registered Owner by crediting the account of the Registered Owner's
         Prime Broker with DTC through its Deposit Withdrawal Agent Commission
         system. The time period for delivery described herein shall apply to
         the electronic transmittals described herein.

                  d. Certificates for the Warrant Shares so purchased,
         representing the aggregate number of shares specified in the Warrant
         Exercise Form, and any cash payments due under Section 15 hereof shall
         be delivered to the Registered Owner within a reasonable time, not
         exceeding three (3) Business Days, after this Warrant shall have been
         so exercised. The certificates so delivered shall be in such
         denominations as may be requested by the Registered Owner and shall be
         registered in the name of the Registered Owner or such other name as
         shall be designated by such Registered Owner. If this Warrant shall
         have been exercised only in part, then, unless this Warrant has
         expired, the Company shall, at its expense, at the time of delivery of
         such certificates, deliver to the Registered Owner a new Warrant
         representing the number of shares with respect to which this Warrant
         shall not then have been exercised.

         7. Adjustment of Exercise Price.

                  a. Common Stock Dividends; Common Stock Splits; Reverse Common
          Stock Splits. If the Company, at any time while this Warrant is
          outstanding, (a) shall pay a stock dividend on its Common Stock, (b)
          subdivide outstanding shares of Common Stock into a larger number of
          shares, (c) combine outstanding shares of Common Stock into a smaller
          number of shares or (d) issue by reclassification of shares of Common
          Stock any shares of capital stock of the Company, then (i) the
          Exercise Price shall be multiplied by a fraction the numerator of
          which shall be the number of shares of Common Stock (excluding
          treasury shares, if any) outstanding before such event and the
          denominator of which shall be the number of shares of Common Stock

                                       5

<PAGE>

         outstanding after such event and (ii) the number of Warrant Shares
         shall be multiplied by a fraction, the numerator of which shall be the
         number of shares of Common Stock (excluding treasury shares, if any)
         outstanding after such event and the denominator of which shall be the
         number of shares of Common Stock (excluding treasury shares, if any)
         outstanding before such event. Any adjustment made pursuant to this
         paragraph 7(a) shall become effective immediately after the record date
         for the determination of shareholders entitled to receive such dividend
         or distribution and shall become effective immediately after the
         effective date in the case of a subdivision, combination or
         re-classification.

                  b. Rights; Options; Warrants or Other Securities. If the
         Company, at any time while this Warrant is outstanding, shall fix a
         record date for the issuance of rights, options, warrants or other
         securities to all of the holders of Common Stock entitling them to
         subscribe for or purchase, convert to, exchange for or otherwise
         acquire shares of Common Stock for no consideration or at a price per
         share less than the Exercise Price, the Exercise Price shall be
         multiplied by a fraction, the denominator of which shall be the number
         of shares of Common Stock (excluding treasury shares, if any)
         outstanding on the date of issuance of such rights, options, warrants
         or other securities plus the number of additional shares of Common
         Stock offered for subscription, purchase, conversion, exchange or
         acquisition, as the case may be, and the numerator of which shall be
         the number of shares of Common Stock (excluding treasury shares, if
         any) outstanding on the date of issuance of such rights, options,
         warrants or other securities plus the number of shares which the
         aggregate offering price of the total number of shares so offered would
         purchase at the Exercise Price. Such adjustment shall be made whenever
         such rights, options, warrants or other securities are issued, and
         shall become effective immediately after the record date for the
         determination of shareholders entitled to receive such rights, options,
         warrants or other securities. However, upon the expiration of any
         rights, options, warrants or other securities to purchase Common Stock
         the issuance of which resulted in an adjustment in the Exercise Price
         pursuant to this Section 7(b), if any such rights, options, warrants or
         other securities shall expire and all or any portion thereof shall not
         have been exercised, the Exercise Price shall immediately upon such
         expiration be re-computed and effective immediately upon such
         expiration be increased to the price which it would have been (but
         reflecting any other adjustments in the Exercise Price made pursuant to
         the provisions of Section 7(h) after the issuance of such rights,
         options, warrants or other securities) had the adjustment of the
         Exercise Price made upon the issuance of such rights, warrants, options
         or other securities been made on the basis of the issuance of only that
         number of shares of Common Stock (if any) actually purchased upon the
         exercise of such rights, options, warrants or other securities actually
         exercised.

                  c. Subscription Rights. If the Company, at any time while this
         Warrant is outstanding, shall fix a record date for the distribution to
         all of the holders of Common Stock evidence of its indebtedness or
         assets or rights, options, warrants or other security entitling them to
         subscribe for or purchase, convert to, exchange for or otherwise
         acquire any security (excluding those referred to in paragraphs 7(a)
         and (b) above), then in each such case the Exercise Price at which the
         Warrant shall thereafter be exercisable shall be determined by
         multiplying the Exercise Price in effect immediately prior to the
         record date fixed for determination of shareholders entitled to receive
         such distribution by a fraction, the denominator of which shall be the

                                       6

<PAGE>

         Per Share Market Value of Common Stock determined as of the record date
         mentioned above, and the numerator of which shall be such Per Share
         Market Value of the Common Stock on such record date less the then fair
         market value at such record date of the portion of such assets or
         evidence of indebtedness so distributed applicable to one outstanding
         share of Common Stock as determined by the Board of Directors in good
         faith; provided, however, that in the event of a distribution exceeding
         ten percent (10%) of the net assets of the Company, such fair market
         value shall be determined by an Appraiser selected in good faith by the
         Registered Owner of the Warrant; and provided, further, that the
         Company, after receipt of the determination by such Appraiser shall
         have the right to select in good faith an additional Appraiser
         meeting the same qualifications in which case the fair market value
         shall be equal to the average of the determinations by each such
         Appraiser. Such adjustment shall be made whenever any such distribution
         is made and shall become effective immediately after the record date
         mentioned above.

                  d. Rounding. All calculations under this Section 7 shall be
         made to the nearest cent or the nearest l/l00th of a share, as the case
         may be.

                  e. Notice of Adjustment. Whenever the Exercise Price is
         adjusted pursuant to paragraphs 7(a), (b), (c) or (h) the Company shall
         promptly deliver to the Registered Owner a notice setting forth the
         Exercise Price after such adjustment and setting forth a brief
         statement of the facts requiring such adjustment.

                  f. Increase in Exercise Price. In no event shall any provision
         in this Section 7 cause the Exercise Price to be greater than the
         Exercise Price on the date of issuance of this Warrant.

                  g. Notice of Certain Events. If:

                           (i) the Company shall declare a dividend (or any
                  other distribution) on its Common Stock; or

                           (ii) the Company shall declare a special nonrecurring
                  cash dividend on or a redemption of its Common Stock; or

                           (iii) the Company shall authorize the granting to the
                  holders of the Common Stock rights or warrants to subscribe
                  for or purchase any shares of capital stock of any class or of
                  any rights; or

                           (iv) the approval of any shareholders of the Company
                  shall be required in connection with any reclassification of
                  the Common Stock of the Company, any consolidation or merger
                  to which the Company is a party, any sale or transfer of all
                  or substantially all of the assets of the Company, or any
                  compulsory share exchange whereby the Common Stock is
                  converted into other securities, cash or property; or

                                       7

<PAGE>

                           (v) the Company shall authorize the voluntary or
                  involuntary dissolution, liquidation or winding up of the
                  affairs of the Company;

then the Company shall cause to be filed at each office or agency maintained for
the purpose of exercise of this Warrant, and shall cause to be delivered to the
Registered Owner, at least 10 Business Days prior to the applicable record or
effective date hereinafter specified, a notice (provided such notice shall not
include any material non-public information) stating (x) the date on which a
record is to be taken for the purpose of such dividend, distribution,
redemption, rights or warrants, or if a record is not to be taken, the date as
of which the holders of Common Stock of record to be entitled to such dividend,
distributions, redemption, rights or warrants are to be determined or (y) the
date on which such reclassification, consolidation, merger, sale, transfer or
share exchange is expected to become effective or close, and the date as of
which it is expected that holders of Common Stock of record shall be entitled to
exchange their shares of Common Stock for securities, cash or other property
deliverable upon such reclassification, consolidation, merger, sale, transfer or
share exchange; provided, however, that the failure to mail such notice or any
defect therein or in the mailing thereof shall not affect the validity of the
corporate action required to be specified in such notice.

                  h. Modification of Issuance Terms. If the Company, at
         any time while this Warrant is outstanding, takes any of the
         actions described in this Section 7(h), then the Holder
         shall have the right to amend this Warrant as set forth below:

                           (i) Issuance of Common Stock. If at any time while
                  this Warrant is outstanding the Company issues or sells, or is
                  deemed to have issued or sold, any shares of Common Stock
                  (other than any Excluded Securities) for a consideration per
                  share less than the Exercise Price in effect immediately prior
                  to such issuance or sale, then the Holder shall have the
                  option to amend the issuance terms of the Common Stock issued
                  upon exercise of this Warrant so that the issuance terms are
                  equivalent to the issuance terms of such offering. For the
                  purpose of determining the adjusted Exercise Price under this
                  Section 7(h)(i), the following shall be applicable:

                           (A) Issuance of Options. If at any time while this
                  Warrant is outstanding the Company in any manner grants,
                  issues or sells any rights, options, warrants, options to
                  subscribe for or to purchase Common Stock or any stock or
                  other securities convertible into or exchangeable for Common
                  Stock (other than any Excluded Securities) (such rights,
                  option or warrants being herein called "Options" and such
                  convertible or exchangeable stock or securities being herein
                  called "Convertible Securities") and the price per share for
                  which Common Stock is issuable upon the exercise of such
                  Options or upon conversion or exchange of such Convertible
                  Securities is less than the Exercise Price in effect
                  immediately prior to such exercise, conversion or exchange,
                  the Holder shall have the option to amend the issuance terms
                  of the Common Stock issued upon exercise of this Warrant so
                  that the issuance terms are equivalent to the issuance terms
                  of such Options.

                                       8

<PAGE>

                           (B) Issuance of Convertible Securities. If at any
                  time while this Warrant is outstanding the Company in any
                  manner issues or sells any Convertible Securities and the
                  price per share for which Common Stock is issuable upon such
                  conversion or exchange (other than any Excluded Securities) is
                  less than the Exercise Price in effect immediately prior to
                  issuance or sale, then the Holder shall have the option of
                  amend the issuance terms of the Common Stock issued upon
                  exercise of this Warrant so that the issuance terms are
                  equivalent to the issuance terms of such Convertible
                  Securities.

                           (C) Change in Option Price or Rate of Conversion. If
                  there is a change at any time in (i) the purchase price
                  provided for in any Options (other than Excluded Securities) ,
                  (ii) the additional consideration, if any, payable upon the
                  issuance, conversion or exchange of any Convertible Securities
                  or (iii) the rate at which any Convertible Securities are
                  convertible into or exchangeable for Common Stock, then the
                  Exercise Price in effect at the time of such change shall be
                  readjusted to the Exercise Price which would have been in
                  effect at such time had such Options or Convertible Securities
                  still outstanding provided for such changed purchase price,
                  additional consideration or changed conversion rate, as the
                  case may be, at the time initially granted, issued or sold;
                  provided that no adjustment shall be made if such adjustment
                  would result in an increase of the Exercise Price then in
                  effect.

                         (D) Effect on Exercise Price of Certain Events. For
                  purposes of determining the adjusted Exercise Price under
                  this Section 7(h)(i), the following shall be applicable:

                                    (I) Calculation of Consideration Received.
                           If any Common Stock, Options or Convertible
                           Securities are issued or sold or deemed to have been
                           issued or sold for cash, the consideration received
                           therefor will be deemed to be the net amount received
                           by the Company therefor. In case any Common Stock,
                           Options or Convertible Securities are issued or sold
                           for a consideration other than cash, the amount of
                           the consideration other than cash received by the
                           Company will be the fair value of such consideration,
                           except where such consideration consists of
                           securities, in which case the amount of consideration
                           received by the Company will be the Average Price on
                           the Trading Day immediately preceding the date of
                           receipt thereof. In case any Common Stock, Options or
                           Convertible Securities are issued to the owners of
                           the non-surviving entity in connection with any
                           merger in which the Company is the surviving entity,
                           the amount of consideration therefor will be deemed
                           to be the fair value of such portion of the net
                           assets and business of the non-surviving entity as is
                           attributable to such Common Stock, Options or
                           Convertible Securities, as the case may be. The fair
                           value of any consideration other than cash or
                           securities will be determined jointly by the Company
                           and the registered owners of a majority of the
                           Underlying Shares and Warrants then outstanding. If
                           such parties are unable to reach agreement within ten
                           (10) days after the occurrence of an event requiring

                                       9

<PAGE>

                           valuation (the "Valuation Event"), the fair value
                           of such consideration will be determined within
                           forty-eight (48) hours of the tenth
                           (10th) day following the Valuation Event by an
                           Appraiser selected in good faith by the Company and
                           agreed upon in good faith by the holders of a
                           majority of the Underlying Shares and the Warrants
                           then outstanding. The determination of such Appraiser
                           shall be binding upon all parties absent manifest
                           error.

                                    (II) Integrated Transactions. In case any
                           Option is issued in connection with the issue or sale
                           of other securities of the Company, together
                           comprising one integrated transaction in which no
                           specific consideration is allocated to such Options
                           by the parties thereto, the Options will be deemed to
                           have been issued for an aggregate consideration of
                           $.10.

                                    (III) Treasury Shares. The number of shares
                           of Common Stock outstanding at any given time does
                           not include shares owned or held by or for the
                           account of the Company, and the disposition of any
                           shares so owned or held will be considered an issue
                           or sale of Common Stock.

                                    (IV) Record Date. If the Company takes a
                           record of the holders of Common Stock for the purpose
                           of entitling them (1) to receive a dividend or other
                           distribution payable in Common Stock, Options or in
                           Convertible Securities or (2) to subscribe for or
                           purchase Common Stock, Options or Convertible
                           Securities, then such record date will be deemed to
                           be the date of the issue or sale of the shares of
                           Common Stock deemed to have been issued or sold upon
                           the declaration of such dividend or the making of
                           such other distribution or the date of the granting
                           of such right of subscription or purchase, as the
                           case may be.

                                    (V) Certain Events. If any event that would
                           adversely affect the rights of the Registered Owner
                           of this Warrant occurs but is not expressly provided
                           for by Section 7 hereof (including, without
                           limitation, the granting of stock appreciation
                           rights, phantom stock rights or other rights with
                           equity features or, in the event that the Company
                           does not consummate its merger or reorganization
                           transaction with HealthAxis.com, Inc., any issuance
                           of securities or distributions to HealthAxis.com,
                           Inc. shareholders that would adversely affect the
                           rights of the Holder hereunder), then the Company's
                           Board of Directors will make an appropriate
                           adjustment in the Exercise Price so as to protect the
                           rights of the Registered Owner of this Warrant;
                           provided, however, that no such adjustment will
                           increase the Exercise Price as otherwise determined
                           pursuant to this Section 7(h). Additionally,
                           notwithstanding anything to the contrary set forth
                           herein, no adjustment shall be made to the Exercise
                           Price upon the consummation of the merger or
                           reorganization transaction involving the Company and
                           HealthAxis.com, Inc., which transaction is
                           contemplated to be consummated by March 31, 2001.

                                       10

<PAGE>

     8. Intentionally Omitted.

     9. Restriction on Conversion by Either the Registered Owner or the Company.
Notwithstanding anything herein to the contrary, in no event shall any
Registered Owner or the Company have the right or be required to exercise this
Warrant if as a result of such conversion the aggregate number of shares of
Common Stock beneficially owned by such Registered Owner and its Affiliates
would exceed [9.99] [4.99]% of the outstanding shares of the Common Stock
following such exercise. For purposes of this Section 9, beneficial ownership
shall be calculated in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended. The provisions of this Section 9 may be waived by a
Registered Owner as to itself (and solely as to itself) upon not less than 65
days prior written notice to the Company, and the provisions of this Section 9
shall continue to apply until such 65th day (or later, if stated in the notice
of waiver).

     10. Officer's Certificate. Whenever the number of shares purchasable upon
exercise shall be adjusted as required by the provisions of Section 6, the
Company shall forthwith file in the custody of its Secretary or an Assistant
Secretary at its principal office and with its stock transfer agent, if any, an
officer's certificate showing the adjusted Exercise Price, number of shares or
other securities determined as herein provided, setting forth in reasonable
detail the facts requiring such adjustment and the manner of computing such
adjustment. Each such officer's certificate shall be signed by the chairman,
president or chief financial officer of the Company and by the secretary or any
assistant secretary of the Company. Each such officer's certificate shall be
made available at all reasonable times for inspection by any Registered Owner of
the Warrants and the Company shall, forthwith after each such adjustment,
deliver a copy of such certificate to the each of the Registered Owners.

     11. Registration Rights. The Company will undertake the registration of the
Common Stock into which such Warrants are exercisable at such times and upon
such terms pursuant to the provisions of the Registration Rights Agreement.

     12. Reservation of Underlying Shares. The Company covenants that it will at
all times reserve and keep available out of its authorized shares of Common
Stock, free from preemptive rights, solely for the purpose of issue upon
exercise of the Warrants as herein provided, such number of shares of the Common
Stock as shall then be issuable upon the exercise of all outstanding Warrants
into Common Stock. The Company covenants that all shares of the Common Stock
issued upon exercise of the Warrant which shall be so issuable shall, when
issued, be duly and validly issued and fully paid and non-assessable.

     13. Notices. Any notice or other communication required or permitted to be
given hereunder shall be in writing and shall be deemed to have been received
(a) upon hand delivery (receipt acknowledged) or delivery by telex (with correct
answer back received), telecopy or facsimile (with transmission confirmation
report) at the address or number designated below (if received by 5:00 p.m.
eastern time where such notice is to be received), or the first Business Day
following such delivery (if received after 5:00 p.m. eastern time where such
notice is to be received) or (b) on the second Business Day following the date
of mailing by express courier service, fully prepaid, addressed to such address,

                                       11

<PAGE>

or upon actual receipt of such mailing, whichever shall first occur. The
addresses for such communications are (i) if to the Company to HealthAxis Inc.,
2500 Dekalb Pike, Norristown, PA 19404, Attn: President, fax no. (610) 279-4498,
with copies to Blank Rome Comisky & McCauley LLP, One Logan Square,
Philadelphia, PA 19103, Attn: Barry H. Genkin, fax no. (215) 988-6910 and (ii)
if to the Registered Owner to the address set forth on Schedule II to the
Purchase Agreement, with copies to Akin, Gump, Strauss, Hauer & Feld, L.L.P.,
590 Madison Avenue, New York, New York 10022, Attn: James Kaye, fax no. (212)
872-1002 or such other address as may be designated in writing hereafter, in the
same manner, by such person.

     14. Compliance With Governmental Requirements. The Company covenants that
if any shares of Common Stock required to be reserved for purposes of exercise
of Warrants hereunder require registration with or approval of any governmental
authority under any Federal or state law, or any national securities exchange,
before such shares may be issued upon exercise, the Company will use its best
efforts to cause such shares to be duly registered or approved, as the case may
be.

     15. Fractional Shares. Upon any exercise hereunder, the Company shall not
be required to issue stock certificates representing fractions of shares of the
Common Stock, but may if otherwise permitted make a cash payment in respect of
any final fraction of a share based on the Per Share Market Value at such time.
If the Company elects not, or is unable, to make such a cash payment, the
Registered Owner shall be entitled to receive, in lieu of the final fraction of
a share, one whole share of Common Stock.

     16. Payment of Tax Upon Issue of Transfer. The issuance of certificates for
shares of the Common Stock upon exercise of the Warrants shall be made without
charge to the Registered Owners thereof for any documentary stamp or similar
taxes that may be payable in respect of the issue or delivery of such
certificate, provided that the Company shall not be required to pay any tax that
may be payable in respect of any transfer involved in the issuance and delivery
of any such certificate upon exercise in a name other than that of the
Registered Owner of such Warrant so exercised and the Company shall not be
required to issue or deliver such certificates unless or until the person or
persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid.

     17. Effect of Headings. The section headings herein are for convenience
only and shall not affect the construction hereof.

     18. No Rights as Stockholder. This Warrant shall not entitle the Registered
Owner to any rights as a stockholder of the Company, including without
limitation, the right to vote, to receive dividends and other distributions, or
to receive notice of, or to attend, meetings of stockholders or any other
proceedings of the Company, unless and to the extent converted into shares of
Common Stock in accordance with the terms hereof.

     19. Certain Actions Prohibited. The Company will not, by amendment of its
charter or through any reorganization, transfer of assets, consolidation,
merger, dissolution, issue or sale of securities, or any other voluntary action,

                                       12

<PAGE>

avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed by it hereunder, but will at all times in good faith
assist in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder of this
Warrant in order to protect the exercise privilege of the holder of this Warrant
against dilution or other impairment, consistent with the tenor and purpose of
this Warrant. Without limiting the generality of the foregoing, the Company (i)
will not increase the par value of any shares of Common Stock receivable upon
the exercise of this Warrant above the Exercise Price then in effect, and (ii)
will take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant.

     20. Shareholder Rights Plan. Notwithstanding the foregoing, in the event
that the Company shall distribute "poison pill" rights pursuant to a "poison
pill" shareholder rights plan (the "Rights"), the Company shall, in lieu of
making any adjustment pursuant to Section 6 hereof, make proper provision so
that each Registered Owner who exercises a Warrant after the record date for
such distribution and prior to the expiration or redemption of the Rights shall
be entitled to receive upon such exercise, in addition to the shares of Common
Stock issuable upon such exercise, a number of Rights to be determined as
follows: (i) if such exercise occurs on or prior to the date for the
distribution to the holders of Rights of separate certificates evidencing such
Rights (the "Distribution Date"), the same number of Rights to which a holder of
a number of shares of Common Stock equal to the number of shares of Common Stock
issuable upon such exercise at the time of such exercise would be entitled in
accordance with the terms and provisions of and applicable to the Rights; and
(ii) if such exercise occurs after the Distribution Date, the same number of
Rights to which a holder of the number of shares into which the Warrant to
exercised was exercisable immediately prior to the Distribution Date would have
been entitled on the Distribution Date in accordance with the terms and
provisions of and applicable to the Rights, and in each case subject to the
terms and conditions of the Rights.

     21. Successors and Assigns. This Warrant shall be binding upon and inure to
the benefit of the Registered Owners and its assigns, and shall be binding upon
any entity succeeding to the Company by merger or acquisition of all or
substantially all the assets of the Company. The Company may not assign this
Warrant or any rights or obligations except as provided in this Section 21. The
Registered Owner may assign this Warrant without the prior written consent of
the Company, subject to the provisions and restrictions on transfer set forth
herein.

                                       13

<PAGE>

     22. Governing Law. This Warrant shall be governed by and construed and
enforced in accordance with the internal laws of the State of New York without
regard to the principles of conflicts of law thereof. Each party hereby
irrevocably submits to the nonexclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consents to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Warrant and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                                       14

<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its duly authorized officer as of the date first set forth above.

                                                     HEALTHAXIS INC.

                                                     By:________________________

                                                     Name:______________________

                                                     Title:_____________________

<PAGE>

                                    EXHIBIT A

                              Warrant Exercise Form
                              ---------------------

TO:      HEALTHAXIS INC.

         The undersigned hereby: (1) irrevocably subscribes for and offers to
purchase _______ shares of Common Stock of HealthAxis Inc., pursuant to Warrant
No. ___ heretofore issued to ___________________ on ____________, ____ ; (2)
encloses either (a) a cash payment of $__________ or (b) a Warrant representing
_____ shares of Common Stock valued at the Per Share Market Price of $ _____ on
________, ____, for these shares at a price of $____ per share (as adjusted
pursuant to the provisions of the Warrant); and (3) requests that a certificate
for the shares be issued in the name of the undersigned and delivered to the
undersigned at the address specified below.

                  Date:                            _____________________________

                  Investor Name:                   _____________________________

                  Taxpayer Identification Number:  _____________________________

                  By:                              _____________________________

                  Printed Name:                    _____________________________

                  Title:                           _____________________________

                  Address:                         _____________________________

                  Cashless Exercise (Y or N):      _______

                  Note: The above signature should correspond exactly with the
                  name on the face of this Warrant Certificate or with the name
                  of assignee appearing in assignment form below.

AND, if said number of shares shall not be all the shares purchasable under the
within Warrant, a new Warrant Certificate is to be issued in the name of said
undersigned for the balance remaining of the shares purchasable thereunder less
any fraction of a share paid in cash and delivered to the address stated above.

<PAGE>

                                    EXHIBIT C
                                    ---------

                          FORM OF AMENDED AND RESTATED
                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

                  This Amended and Restated Registration Rights Agreement (this
"Agreement") is made and entered into as of _____________, 200_, among
HealthAxis Inc., a Pennsylvania corporation (the "Company"), and the parties who
have executed this Agreement and whose names appear on Schedule I hereto (each
party listed on Schedule I hereto is sometimes individually referred to herein
as a "Purchaser" and all such parties are sometimes collectively referred to
herein as the "Purchasers").

                  WHEREAS, the Purchasers and the Company are parties to a
Registration Rights Agreement, dated as of September 14, 1999 (the "Prior
Registration Rights Agreement"), pursuant to the Securities Purchase Agreement,
dated as of September 14, 1999 among the Company and the purchasers set forth
therein (the "Purchase Agreement");

                  WHEREAS, the parties have entered into an amendment to the
Purchase Agreement, dated as of September 28, 2000 (the "Purchase Agreement
Amendment"); and

                  WHEREAS, in connection with the transactions contemplated by
the Purchase Agreement Amendment, and pursuant to Section 7(e) of the Prior
Registration Rights Agreement, the parties now wish to amend and restate the
terms of the Prior Registration Rights Agreement.

                  NOW THEREFORE, in consideration of the foregoing and the
mutual covenants and agreements herein, the Company and the Purchasers hereby
agree as follows:

         1.       Definitions

                  Capitalized terms used and not otherwise defined herein shall
have the meanings given such terms in the Purchase Agreement, as amended by the
Purchase Agreement Amendment. As used in this Agreement, the following terms
shall have the following meanings:

                  "Affiliate" means, with respect to any Person, any other
Person that directly or indirectly controls or is controlled by or under common
control with such Person. For the purposes of this definition, "control," when
used with respect to any Person, means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms "affiliated," controlling" and "controlled" have
meanings correlative to the foregoing.

                  "AMEX" means the American Stock Exchange.

<PAGE>

                  "Business Day" means any day except Saturday, Sunday and any
day which shall be a legal holiday or a day on which banking institutions in the
State of New York generally are authorized or required by law or other
government actions to close.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the Company's Common Stock, par value
$.10 per share.

                  "Effectiveness Period" has the meaning set forth in Section
2(a) hereof.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

                  "Filing Date" means the earlier of (i) the twentieth (20th)
Business Day following the date that the majority of the shareholders of the
Company approve the Reorganization or (ii) April 27, 2001.

                  "Holder" or "Holders" means the holder or holders, as the case
may be, from time to time of Registrable Securities.

                  "Indemnified Party" has the meaning set forth in Section 5(c)
hereof.

                  "Indemnifying Party" has the meaning set forth in Section 5(c)
hereof.

                  "Initial Registration Statement" has the meaning set forth in
Section 2(a) hereof.

                  "Losses" has the meaning set forth in Section 5(a) hereof.

                  "Nasdaq" means the National Market System of the Nasdaq Stock
Market.

                  "NYSE" means New York Stock Exchange.

                  "Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

                  "Prospectus" means the prospectus included in the Registration
Statement (including, without limitation, a prospectus that includes any
information previously omitted from a prospectus filed as part of an effective
registration statement in reliance upon Rule 430A promulgated under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference in such Prospectus.

                                       2

<PAGE>

                  "Registrable Securities" means the shares of Common Stock
issued or issuable upon (i) conversion of or with respect to the Securities,
(ii) conversion of or with respect to any of the Company's 2% Convertible
Debentures, as amended, initially issued pursuant to the Purchase Agreement and
not otherwise deemed a Security hereunder, (iii) payment of interest or any
other payments in respect of the Securities, (iv) exercise of the Warrants, and
(v) issuance of any shares of the Company's capital stock issued with respect to
clauses (i), (ii), (iii) or (iv) hereof as a result of any stock split, stock
dividend, recapitalization, exchange or similar event or otherwise.

                  "Registration Statement" means the Initial Registration
Statement and any additional registration statements contemplated by Sections
2(a), 2(b) and 7(d), including (in each case) the Prospectus, amendments and
supplements to such registration statement or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all material incorporated
by reference in such registration statement.

                  "Reorganization" means the merger or reorganization
transaction involving the Company and HealthAxis.com, Inc., which transaction is
contemplated to be consummated by March 31, 2001.

                  "Rule 144" means Rule 144 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Rule 158" means Rule 158 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Rule 415" means Rule 415 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

                  "Securities" means the Company's 2% Convertible Debentures
issued in connection with the Purchase Agreement Amendment.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Special Counsel" means the special counsel to the Holders.

                  "Trading Day" means a day on which the Nasdaq (or in the event
the Common Stock is not traded on Nasdaq, such other securities market on which
the Common Stock is listed) is open for trading.

                                       3

<PAGE>

                  "Underlying Shares" means the shares of Common Stock issuable
upon conversion of the Securities and exercise of the Warrants.

                  "Underwritten Registration or Underwritten Offering" means a
registration in connection with which securities of the Company are sold to an
underwriter for reoffering to the public pursuant to an effective registration
statement.

                  "Warrants" means the warrants issued to the Purchasers in
connection with the Purchase Agreement Amendment.

         2.       Registration Requirements

                  (a) Filing and Effectiveness Obligations. In connection with
the Purchase Agreement the Company has previously filed with the Commission a
Registration Statement on Form S-3 (the "Initial Registration Statement"), which
Initial Registration Statement covers all Registrable Securities required to be
included therein (as of the time of filing thereof) for an offering to be made
on a continuous basis pursuant to a "Shelf" registration statement under Rule
415. On or prior to the Filing Date, the Company shall file with the Commission
an amendment to the Initial Registration Statement to include not less than 110%
of the sum of the Registrable Securities of the Holders, determined on the date
of filing thereof. The Company shall use its best efforts to (i) cause the
Initial Registration Statement, as so amended, to be declared effective under
the Securities Act as promptly as practicable after the filing thereof and (ii)
keep such Initial Registration Statement continuously effective under the
Securities Act (except as provided in Section 3(r) hereof or as otherwise
provided herein) until the earlier of (a) the date which is four years after the
date that such Initial Registration Statement is declared effective by the
Commission or (b) such date when all Registrable Securities covered by such
Initial Registration Statement have been sold or may be sold without volume
restrictions pursuant to Rule 144, as determined by counsel to the Company
pursuant to a written opinion letter, addressed to the Holders and the Company's
transfer agent to such effect (the "Effectiveness Period"); provided, however,
that the Company shall not be required to keep the Initial Registration
Statement effective under the Securities Act if the Company becomes ineligible
to do so due to a Change of Control transaction with a privately-held company
which does not otherwise result in an Event of Default pursuant to the
Securities (as such terms are defined therein).

                  (b) Underwritten Offering. At any time when a Registration
Statement covering the Registrable Securities is not effective (during any
period in which a Registration Statement is required to be effective pursuant to
the terms hereof), if the Holders of a majority of the Registrable Securities so
elect on or after September 1, 2001, an offering of Registrable Securities
pursuant to a Registration Statement may be effected on no more than one (1)
occasion in the form of an Underwritten Offering. In such event, and if the
managing underwriters advise the Company and such Holders in writing that in
their opinion the amount of Registrable Securities proposed to be sold in such
Underwritten Offering exceeds the amount of Registrable Securities which can be
sold in such Underwritten Offering, there shall be included in such Underwritten
Offering the amount of such Registrable Securities which in the opinion of such
managing underwriters can be sold, and such amount shall be allocated pro rata
among the Holders proposing to sell Registrable Securities in such Underwritten
Offering.

                                       4

<PAGE>

                  (c) Underwriter. If any of the Registrable Securities are to
be sold in an Underwritten Offering, the investment banker in interest that will
administer the offering will be selected by the Holders of a majority of the
Registrable Securities included in such offering, provided that the Company
shall consent to the inclusion of such investment banker, which consent shall
not be unreasonably withheld. No Holder may participate in any Underwritten
Offering hereunder unless such Holder (i) agrees to sell its Registrable
Securities on the basis provided in any underwriting agreements approved by the
Persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such arrangements.

         3.       Registration Procedures

                  In connection with the Company's registration obligations
hereunder, the Company shall:

                  (a) Preparation of Registration Statement. Prepare and file
with the Commission (i) on or prior to the Filing Date, the Initial Registration
Statement, as amended, which shall include a Plan of Distribution substantially
in the form of Exhibit A annexed hereto, and cause the Initial Registration
Statement to become effective and remain effective as provided herein or (ii) as
expeditiously as possible in connection with an Underwritten Offering, a
Registration Statement covering the amount of Registrable Securities determined
pursuant to Section 2(b) hereof, and cause such Registration Statement to become
effective and remain effective for up to 120 days or, if earlier, until the
Holders have completed the distribution related thereto; provided, however, that
not less than three (3) Business Days prior to the filing of the Initial
Registration Statement, any subsequent Registration Statement or any related
Prospectus or any amendment or supplement thereto (including any document that
would be incorporated therein by reference), the Company shall, if reasonably
practicable (i) furnish to the Holders, their Special Counsel and any managing
underwriters, copies of all such documents proposed to be filed (including
documents incorporated by reference), which documents will be subject to the
review of such Holders, their Special Counsel and such managing underwriters,
and (ii) use its best efforts to cause its officers and directors, counsel and
independent certified public accountants to respond to such inquiries as shall
be necessary, in the reasonable opinion of respective counsel to such Holders
and such underwriters, to conduct a reasonable investigation within the meaning
of the Securities Act. The Company shall not file the Registration Statement or
any such Prospectus or any amendments or supplements thereto to which the
Holders of a majority of the Registrable Securities, their Special Counsel or
any managing underwriters shall reasonably object, and will not request
acceleration of such Registration Statement without prior notice to such
counsel. The sections of such Registration Statement covering information with
respect to the Holders, the Holder's beneficial ownership of securities of the
Company or the Holders intended method of disposition of Registrable Securities
shall conform to the information provided to the Company by each of the Holders.

                  (b) Amendments. (i) Promptly prepare and file with the
Commission such amendments, including post-effective amendments, to the
Registration Statement as may be necessary to keep the Registration Statement
continuously effective (except as provided in Section 3(r) hereof or as

                                       5

<PAGE>

otherwise provided herein) during the Effectiveness Period and prepare and file
with the Commission such additional Registration Statements as are required to
be filed hereunder in order to register for resale under the Securities Act all
of the Registrable Securities; (ii) cause the related Prospectus to be amended
or supplemented by any required Prospectus supplement, and as so supplemented or
amended to be filed pursuant to Rule 424 (or any similar provisions then in
force) promulgated under the Securities Act; (iii) respond as promptly as
practicable, but in no event later than ten (10) Business Days, to any comments
received from the Commission with respect to the Registration Statement or any
amendment thereto and as promptly as possible provide the Holders true and
complete copies of all correspondence from and to the Commission relating to the
Registration Statement; and (iv) comply in all material respects with the
provisions of the Securities Act and the Exchange Act with respect to the
disposition of all Registrable Securities covered by the Registration Statement
during the applicable period in accordance with the intended methods of
disposition by the Holders thereof set forth in the Registration Statement as so
amended or in such Prospectus as so supplemented. In the event the number of
shares available under a Registration Statement filed pursuant to this Agreement
is insufficient to cover 110% of the Registrable Securities held by the Holders,
the Company shall amend the Registration Statement, or file a new Registration
Statement (on the short form available therefore, if applicable), or both, so as
to cover 110% of such Registrable Securities, in each case, as soon as
practicable, but in any event within twenty (20) Business Days after the
necessity therefor arises (based on the Conversion Price of the Securities and
other relevant factors on which the Company reasonably elects to rely). The
Company shall use its best efforts to cause such amendment and/or new
Registration Statement to become effective as soon as practicable following the
filing thereof.

                  (c) Notifications. Notify the Holders of Registrable
Securities to be sold, their Special Counsel and any managing underwriters as
promptly as possible (and, in the case of (i)(A) below, not less than five (5)
days prior to such filing and, in the case of (i)(C) below, not later than the
first Business Day after effectiveness) and (if requested by any such Person)
confirm such notice in writing no later than one (1) Business Day following the
day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to the Registration Statement is proposed to be filed; (B) when the
Commission notifies the Company whether there will be a "review" of such
Registration Statement and whenever the Commission comments in writing on such
Registration Statement and (C) with respect to the Registration Statement or any
post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) if at any time any of the representations and warranties of the
Company contained in any agreement (including any underwriting agreement)
contemplated hereby ceases to be true and correct in all material respects; (v)
of the receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; and (vi) of the occurrence of any event that makes
any statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration Statement
or the Prospectus, as the case may be, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

                                       6

<PAGE>

                  (d) Suspensions. Use its best efforts to avoid the issuance
of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of the Registration Statement or (ii) any suspension of the
qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

                  (e) Supplements and Post-Effective Amendments. If requested by
any managing underwriter or the Holders of a majority in interest of the
Registrable Securities to be sold in connection with an Underwritten Offering,
(i) promptly incorporate in a Prospectus supplement or post-effective amendment
to the Registration Statement such information as the Company reasonably agrees
should be included therein and (ii) make all required filings of such Prospectus
supplement or such post-effective amendment as soon as practicable after the
Company has received notification of the matters to be incorporated in such
Prospectus supplement or post-effective amendment; provided, however, that the
Company shall not be required to take any action pursuant to this Section 3(e)
that would, in the written opinion of counsel for the Company (addressed to
counsel to the Holder), violate applicable law.

                  (f) Copies of Registration Statement. Furnish to each Holder,
their Special Counsel, and any managing underwriters, without charge, at least
one conformed copy of each Registration Statement and each amendment thereto,
including financial statements and schedules, all documents incorporated or
deemed to be incorporated therein by reference, and all exhibits to the extent
requested by such Person (including those previously furnished or incorporated
by reference) promptly after the filing of such documents with the Commission.

                  (g) Copies of Prospectus. Promptly deliver to each Holder,
their Special Counsel, and any underwriters, without charge, as many copies of
the Prospectus or Prospectuses (including each form of prospectus) and each
amendment or supplement thereto as such Persons may reasonably request; and the
Company hereby consents to the use of such Prospectus and each amendment or
supplement thereto by each of the selling Holders and any underwriters in
connection with the offering and sale of the Registrable Securities covered by
such Prospectus and any amendment or supplement thereto.

                  (h) Blue Sky. Prior to any public offering of Registrable
Securities, use its best efforts to register or qualify or cooperate with the
selling Holders, any underwriters and their Special Counsel in connection with
the registration or qualification (or exemption from such registration or
qualification) of such Registrable Securities for offer and sale under the
securities or Blue Sky laws of such jurisdictions within the United States as
any Holder or underwriter requests in writing, to keep each such registration or
qualification (or exemption therefrom) effective during the Effectiveness Period
and to do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by a
Registration Statement; provided, however, that the Company shall not be
required to qualify generally to do business in any jurisdiction where it is not
then so qualified or to take any action that would subject it to general service
of process in any such jurisdiction where it is not then so subject or subject
the Company to any material tax in any such jurisdiction where it is not then so
subject.

                                       7

<PAGE>

                  (i) Certificates. Cooperate with the Holders and any managing
underwriters to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be sold pursuant to a Registration
Statement, which certificates shall be free, to the extent permitted by
applicable law and the Purchase Agreement, of all restrictive legends, and to
enable such Registrable Securities to be in such denominations and registered in
such names as any such managing underwriters or Holders may request at least two
(2) Business Days prior to any sale of Registrable Securities.

                  (j) Supplements and Amendments. Upon the occurrence of any
event contemplated by Section 3(c)(vi), as promptly as possible, prepare a
supplement or amendment, including a post-effective amendment, to the
Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any
other required document so that, as thereafter delivered, neither the
Registration Statement nor such Prospectus will contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading.

                  (k) Listing. Cause all Registrable Securities relating to such
Registration Statement to be listed on Nasdaq and any other securities exchange,
quotation system, market or over-the-counter bulletin board, if any, on which
similar securities issued by the Company are then listed as and when required
pursuant to the Purchase Agreement, subject to compliance with Rule
4460(i)(1)(D) of the Nasdaq National Market.

                  (l) Underwriting Agreement. Enter into such agreements
(including an underwriting agreement in form, scope and substance as is
customary in Underwritten Offerings) and take all such other actions in
connection therewith (including those reasonably requested by any managing
underwriters and the Holders of a majority of the Registrable Securities being
sold) in order to expedite or facilitate the disposition of such Registrable
Securities, and whether or not an underwriting agreement is entered into, (i)
make such representations and warranties to such Holders and such underwriters
as are customarily made by issuers to underwriters in underwritten public
offerings, and confirm the same if and when requested; (ii) in the case of an
Underwritten Offering obtain and deliver copies thereof to the managing
underwriters, if any, or in the case of non-Underwritten Offerings, if
reasonably requested by the selling Holders (and at the expense of such selling
Holders), obtain and deliver copies thereof to such selling Holders, of opinions
of counsel to the Company and updates thereof addressed to each such
underwriter, in form, scope and substance reasonably satisfactory to any such
managing underwriters and Special Counsel to the selling Holders covering the
matters customarily covered in opinions requested in Underwritten Offerings and
such other matters as may be reasonably requested by such Special Counsel and
underwriters; (iii) immediately prior to the effectiveness of the Registration
Statement, and, in the case of an Underwritten Offering, at the time of delivery
of any Registrable Securities sold pursuant thereto, and, in the case of
non-Underwritten Offerings, at such time as the selling Holders may reasonably

                                       8
<PAGE>

request (and at the expense of such selling Holders), obtain and deliver copies
to the Holders and the managing underwriters, if any, of "cold comfort" letters
and updates thereof from the independent certified public accountants of the
Company (and, if required, any other independent certified public accountants of
any subsidiary of the Company or of any business acquired by the Company for
which financial statements and financial data is, or is required to be, included
in the Registration Statement), addressed to each of the underwriters, if any,
in form and substance as are customary in connection with Underwritten
Offerings; (iv) if an underwriting agreement is entered into, the same shall
contain indemnification provisions and procedures no less favorable to the
selling Holders and the underwriters, if any, than those set forth in Section 5
(or such other provisions and procedures acceptable to the managing
underwriters, if any, and Holders of a majority of Registrable Securities
participating in such Underwritten Offering; and (v) deliver such documents and
certificates as may be reasonably requested by the Holders of a majority of the
Registrable Securities being sold, their Special Counsel and any managing
underwriters to evidence the continued validity of the representations and
warranties made pursuant to clause 3(1)(i) above and to evidence compliance with
any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company.

                  (m) Due Diligence. Make available for inspection by the
selling Holders, any representative of such Holders, any underwriter
participating in any disposition of Registrable Securities, and any attorney or
accountant retained by such selling Holders or underwriters, at the offices
where normally kept, during reasonable business hours, all financial and other
records, pertinent corporate documents and properties of the Company and its
subsidiaries, and cause the officers, directors, agents and employees of the
Company and its subsidiaries to supply all information in each case reasonably
requested by any such Holder, representative, underwriter, attorney or
accountant in connection with the Registration Statement; provided, however,
that if any information is determined in good faith by the Company in writing to
be of a confidential nature at the time of delivery of such information, then
prior to delivery of such information, the Company and the Holders shall enter
into a confidentiality agreement reasonably acceptable to the Company and the
Holders providing that such information shall be kept confidential, unless (i)
disclosure of such information is required by court or administrative order or
is necessary to respond to inquiries of regulatory authorities (provided,
however, that the Company shall be given notice of any such pending disclosure
so that the Company may seek a protective order); (ii) disclosure of such
information, in the opinion of counsel to such Person, is required by law; (iii)
such information becomes generally available to the public other than as a
result of a disclosure or failure to safeguard by such Person; or (iv) such
information becomes available to such Person from a source other than the
Company and such source is not known by such Person to be bound by a
confidentiality agreement with the Company.

                  (n) Earnings Statement. Comply in all material respects with
all applicable rules and regulations of the Commission and make generally
available to its securityholders earning statements satisfying the provisions of
Section 11(a) of the Securities Act and Rule 158 not later than 45 days after
the end of any 12-month period (or 90 days after the end of any 12-month period
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 a firm commitment or
best efforts Underwritten Offering and (ii) if not sold to underwriters in such
an offering, commencing on the first day of the first fiscal quarter of the
Company after the effective date of the Registration Statement, which statement
shall conform to the requirements of Rule 158.

                                       9

<PAGE>

                  (o) Information. The Company may require each selling Holder
to furnish to the Company information regarding such Holder and the distribution
of such Registrable Securities as is required by law to be disclosed in the
Registration Statement, and the Company may exclude from such registration the
Registrable Securities of any such Holder who unreasonably fails to furnish such
information within a reasonable time after receiving such request. Each Holder
shall furnish to the Company information regarding the Holder and the
distribution of he Registrable Securities as is required, in the opinion of
counsel to the Holder, by applicable law to be disclosed in the Registration
Statement and Prospectus.

                  The Company shall hold in confidence and not make any
disclosure of information concerning a Holder provided to the Company unless (i)
disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than by
disclosure in violation of this or any other agreement. The Company agrees that
it shall, upon learning that disclosure of such information concerning a Holder
is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt notice to such Holder prior to making such
disclosure, and allow the Holder, at its expense, to undertake appropriate
action to prevent disclosure of, or to obtain a protective order for, such
information.

                  If the Registration Statement refers to any Holder by name or
otherwise as the holder of any securities of the Company, then such Holder shall
have the right to require (if such reference to such Holder by name or otherwise
is not required by the Securities Act or any similar Federal statute then in
force) the deletion of the reference to such Holder in any amendment or
supplement to the Registration Statement filed or prepared subsequent to the
time that such reference ceases to be required.

                  Each Holder covenants and agrees that (i) it will not sell any
Registrable Securities under the Registration Statement until it has received
copies of the Prospectus as then amended or supplemented as contemplated in
Section 3(g) and notice from the Company that such Registration Statement and
any post-effective amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply with the prospectus delivery requirements of the Securities Act as
applicable to them in connection with sales of Registrable Securities pursuant
to the Registration Statement.

                  Each Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of
any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv),
3(c)(v) or 3(c)(vi), such Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until such Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement contemplated by Section 3(j), or until it is advised in writing by the
Company that the use of the applicable Prospectus may be resumed, and, in either

                                       10

<PAGE>

case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. Notwithstanding anything to the contrary, the Company
shall cause its transfer agent to deliver unlegended shares of Common Stock to a
transferee of a Holder in accordance with the terms of the Purchase Agreement in
connection with any sale of Registrable Securities with respect to which an
Holder has entered into a contract for sale prior to the Holder's receipt of a
notice from the Company of the happening of any event of the kind described in
Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(c)(vi) and for which the
Holder has not yet settled.

                  (p) Responses to the Commission. The Company agrees to respond
fully and completely to any and all comments received from the Commission staff
on the Initial Registration Statement, as amended, or any subsequently filed
Registration Statement, as promptly as possible but, for non-Underwritten
Offerings, in no event later than ten (10) Business Days of the receipt of such
comments, regardless of whether such comments are in oral or written form.

                  (q) Confirmation of Effectiveness. Within two (2) Business
Days after a Registration Statement which covers applicable Registrable
Securities is ordered effective by the Commission, the Company shall deliver,
and shall cause legal counsel for the Company to deliver, to the transfer agent
for such Registrable Securities (with copies to the Holders whose Registrable
Securities are included in such Registration Statement) confirmation that such
Registration Statement has been declared effective by the Commission in the form
attached hereto as Exhibit B.

                  (r) Black-out Periods. Subject to the last sentence of this
Section 3(r), the Company may by written notice require that the Holders
immediately cease sales of Registrable Securities pursuant to a Registration
Statement, for a period not to exceed forty-five (45) consecutive days in any
one instance and for a period not to exceed ninety (90) calendar days in any
twelve-month period (provided, however, that the 45-day period shall be extended
to a sixty (60) consecutive day period in the event that the Company is required
to submit financial statements pursuant to Item 7 of From 8-K (or any successor
form) in connection with an acquisition or disposition of significant assets),
at any time that (i) the Company becomes engaged in a business activity or
negotiation which is not disclosed in a Registration Statement (or the
prospectus included therein) which the Company reasonably believes must be
disclosed therein under applicable law and which the Company desires to keep
confidential for business purposes, (ii) the Company determines that a
particular disclosure so determined to be required to be disclosed therein would
be premature or would adversely affect the Company or its business or prospects
or (iii) the Registration Statement can no longer be used under the existing
rules and regulations promulgated under the Securities Act (each of (i), (ii) or
(iii), a "Material Condition"). The Company shall not be required to disclose to
the Holders which of the reasons specified in (i), (ii) or (iii) above is the
basis for requiring a suspension of sales due to the occurrence of a Material
Condition. The Company will use its commercially reasonable best efforts to
ensure that the use of the Registration Statement (and the prospectus included
therein) may be resumed as soon as it is practicable. The Company may not
suspend sales of Registrable Securities under a Registration Statement pursuant
to this Section 3(r) more than three times during any twelve-month period.

                                       11

<PAGE>

                  4.       Registration Expenses

                           All fees and expenses incident to the performance of
or compliance with this Agreement by the Company shall be borne by the Company,
other than with regard to an Underwritten Offering and whether or not the
Registration Statement is filed or becomes effective and whether or not any
Registrable Securities are sold pursuant to the Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with Nasdaq
and each other securities exchange or market on which Registrable Securities are
required hereunder to be listed and (B) in compliance with state securities or
Blue Sky laws (including, without limitation, reasonable fees and disbursements
of counsel for the Holders in connection with Blue Sky qualifications of the
Registrable Securities and determination of the eligibility of the Registrable
Securities for investment under the laws of such jurisdictions as the managing
underwriters, if any, or the Holders of a majority of Registrable Securities may
designate)), (ii) printing expenses (including, without limitation, expenses of
printing certificates for Registrable Securities and of printing prospectuses if
the printing of prospectuses is requested by the managing underwriters, if any,
or by the Holders of a majority of the Registrable Securities included in the
Registration Statement), (iii) messenger, telephone and delivery expenses of the
Company, (iv) fees and disbursements of counsel for the Company, (v) Securities
Act liability insurance, if the Company so desires such insurance, and (vi) fees
and expenses of all other Persons retained by the Company in connection with the
consummation of the transactions contemplated by this Agreement. In addition,
the Company shall be responsible for all of its internal expenses incurred in
connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its
officers and employees performing legal or accounting duties), the expense of
any annual audit, and the fees and expenses incurred in connection with the
listing of the Registrable Securities on any securities exchange as required
hereunder. Notwithstanding anything contained in this Section 4 to the contrary,
the Holders shall be responsible for all fees and expenses relating to an
Underwritten Offering.

                  5.       Indemnification

                  (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
each Holder, the officers, directors, agents and employees of each of them, each
Person who controls any such Holder (within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act) and the officers, directors,
agents and employees of each such controlling Person, to the fullest extent
permitted by applicable law, from and against any and all joint or several
losses, claims, damages, liabilities, costs (including, without limitation,
costs of preparation and attorneys' fees) and expenses (collectively, together
with actions, proceedings or inquiries by any regulatory or self-regulatory
organization, whether commenced or threatened, "Losses"), as incurred, arising
out of or relating to (i) any untrue or alleged untrue statement of a material
fact contained in the Registration Statement, any Prospectus or any form of

                                       12

<PAGE>

prospectus or in any amendment or supplement thereto or in any preliminary
Prospectus, or arising out of or relating to any omission or alleged omission of
a material fact required to be stated therein or necessary to make the
statements therein (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made)
not misleading (in the case of any Prospectus or form of prospectus or
supplement thereto, in light of the circumstances under which they were made),
except to the extent, but only to the extent, that such untrue statements or
omissions are based solely upon and in conformity with information regarding
such Holder furnished in writing to the Company by such Holder expressly for use
therein, which information was reasonably relied on by the Company for use
therein or to the extent that such information relates to such Holder or such
Holder's proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in
the Registration Statement, such Prospectus or such form of prospectus or in any
amendment or supplement thereto (provided that the Company amended any
disclosure with respect to the method of distribution upon written notice from
the Holders that such section of the Prospectus should be revised in any way) or
(ii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or
sale of Registrable Securities. The Company shall not, however, be liable for
any Losses to any Holder with respect to any untrue or alleged untrue statement
of material fact or omission or alleged omission of material fact if such
statement or omission was made in a preliminary Prospectus and such Holder did
not receive a copy of the final Prospectus (or any amendment or supplement
thereto) at or prior to the confirmation of the sale of the Registrable
Securities in any case where such delivery is required by the Securities Act and
the untrue or alleged untrue statement of material fact or omission or alleged
omission of material fact contained in such preliminary Prospectus was corrected
in the final Prospectus (or any amendment or supplement thereto), unless the
failure to deliver such final Prospectus (as amended or supplemented) was a
result of noncompliance by the Company with Section 3(g) of this Agreement. The
Company shall notify the Holders promptly of the institution, threat or
assertion of any Proceeding of which the Company is aware in connection with the
transactions contemplated by this Agreement.

                  (b) Indemnification by Holders. Each Holder shall, severally
and not jointly, indemnify and hold harmless the Company, the directors,
officers, agents and employees, each Person who controls the Company (within the
meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act),
and the directors, officers, agents or employees of such controlling Persons, to
the fullest extent permitted by applicable law, from and against all Losses, as
incurred, arising solely out of or based solely upon any untrue statement of a
material fact contained in the Registration Statement, any Prospectus, or any
form of prospectus, or arising solely out of or based solely upon any omission
of a material fact required to be stated therein or necessary to make the
statements therein not misleading to the extent, but only to the extent, that
such untrue statement or omission is contained in any information so furnished

                                       13

<PAGE>

in writing by such Holder to the Company specifically for inclusion in the
Registration Statement or such Prospectus and that such information was
reasonably relied upon by the Company for use in the Registration Statement,
such Prospectus or such form of prospectus or to the extent that such
information relates to such Holder or such Holder's proposed method of
distribution of Registrable Securities and was reviewed and expressly approved
in writing by such Holder expressly for use in the Registration Statement, such
Prospectus or such form of prospectus; provided, however, that the indemnity
agreement contained in this Section 5(b) shall not apply to amounts paid in
settlement of any Losses if such settlement is effected without the prior
written consent of such Holder; provided, further, that such Holder agrees its
consent to any such settlement will not be unreasonably withheld if such Holder
will not be liable for any payments or incur any out-of-pocket expenses with
respect to such settlement. In no event shall the liability of any selling
Holder hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving rise
to such indemnification obligation.

                  (c) Conduct of Indemnification Proceedings. If any Proceeding
shall be brought or asserted against any Person entitled to indemnity hereunder
(an "Indemnified Party"), such Indemnified Party promptly shall notify the
Person from whom indemnity is sought (the "Indemnifying Party") in writing, and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to the Indemnified Party and the
payment of all fees and expenses incurred in connection with defense thereof;
provided, however, that the failure of any Indemnified Party to give such notice
shall not relieve the Indemnifying Party of its obligations or liabilities
pursuant to this Agreement, except (and only) to the extent that it shall be
finally determined by a court of competent jurisdiction (which determination is
not subject to appeal or further review) that such failure shall have
proximately and materially adversely prejudiced the Indemnifying Party.

                  An Indemnified Party shall have the right to employ separate
counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the reasonable
expense of the Indemnifying Party). The Indemnifying Party shall not be liable
for any settlement of any such Proceeding effected without its written consent,
which consent shall not be unreasonably withheld. No Indemnifying Party shall,
without the prior written consent of the Indemnified Party, effect any
settlement of any pending Proceeding in respect of which any Indemnified Party
is a party, unless such settlement includes an unconditional release of such
Indemnified Party from all liability on claims that are the subject matter of
such Proceeding.

                  All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of a detailed written notice thereof to
the Indemnifying Party (regardless of whether it is ultimately determined that
an Indemnified Party is not entitled to indemnification hereunder; provided,
that the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).

                                       14

<PAGE>

                  (d) Contribution. If a claim for indemnification under Section
5(a) or 5(b) is unavailable to an Indemnified Party because of a failure or
refusal of a court of competent jurisdiction to enforce such indemnification in
accordance with its terms (by reason of public policy or otherwise), then each
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, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party 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 of a material fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 5(c), any reasonable attorneys' or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms. In no event shall any selling Holder be required to
contribute an amount under this Section 5(d) in excess of the net proceeds
received by such Holder upon sale of the Registrable Securities pursuant to the
Registration Statement giving rise to such contribution obligation.

                  The parties hereto agree that it would not be just and
equitable if contribution pursuant to this Section 5(d) were determined by pro
rata allocation or by any other method of allocation that does not take into
account 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.

                  The indemnity and contribution agreements contained in this
Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

                  6.       Rule 144
                           --------

                  As long as any Holder owns Registrable Securities, the Company
covenants to timely file (or obtain extensions in respect thereof and file
within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to Section 13(a) or l5(d) of the Exchange
Act and to promptly furnish the Holders with true and complete copies of all
such filings. As long as any Holder owns Registrable Securities, if the Company
is not required to file reports pursuant to Section 13(a) or l5(d) of the
Exchange Act, it will prepare and furnish to the Holders and make publicly
available in accordance with Rule 144(c) promulgated under the Securities Act
annual and quarterly financial statements, together with a discussion and
analysis of such financial statements in form and substance substantially

                                       15

<PAGE>

similar to those that would otherwise be required to be included in reports
required by Section 13(a) or 15(d) of the Exchange Act, as well as any other
information required thereby, in the time period that such filings would have
been required to have been made under the Exchange Act. The Company further
covenants that it will take such further action as any Holder may reasonably
request, all to the extent required from time to time to enable such Person to
sell Underlying Shares without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144 promulgated under the
Securities Act, including providing any legal opinions referred to in the
Purchase Agreement. Upon the request of any Holder, the Company shall deliver to
such Holder a written certification of a duly authorized officer as to whether
it has complied with such requirements.

                  7.       Miscellaneous

                  (a) Remedies. In the event of a breach by the Company or by a
Holder of any of their obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all
rights granted by law and under this Agreement, including recovery of damages,
will be entitled to specific performance of its rights under this Agreement. The
Company and each Holder agree that monetary damages would not provide adequate
compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any
action for specific performance in respect of such breach, it shall waive the
defense that a remedy at law would be adequate.

                  (b) No Inconsistent Agreements. Neither the Company nor any of
its subsidiaries has, as of the date hereof, nor shall the Company or any of its
subsidiaries, on or after the date of this Agreement, except as provided herein
or in Schedule 2.1(r) of the Purchase Agreement and except as may be provided as
a result of the Reorganization (with respect to the lesser of (i) 1,000,000
shares of Common Stock or (ii) the number of shares of Common Stock underlying
HealthAxis.com, Inc. warrants and options approved under the HealthAxis.com,
Inc. stock option plan) enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. Except as disclosed in Schedule
2.1(r) of the Purchase Agreement and except as may be provided as a result of
the Reorganization (with respect to the lesser of (i) 1,000,000 shares of Common
Stock or (ii) the number of shares of Common Stock underlying HealthAxis.com,
Inc. warrants and options approved under the HealthAxis.com, Inc. stock option
plan) neither the Company nor any of its subsidiaries has previously entered
into any agreement granting any registration rights with respect to any of its
securities to any Person. Without limiting the generality of the foregoing,
without the written consent of the Holders of a majority of the then outstanding
Registrable Securities, the Company shall not grant to any Person the right to
request the Company to register any securities of the Company under the
Securities Act unless the rights so granted are subordinated in all respects to
the rights in full of the Holders set forth in Section 2 herein, and are not
otherwise in conflict or inconsistent with the provisions of this Agreement.
This Agreement, together with the Purchase Agreement, as amended by the Purchase
Agreement Amendment, contains the entire understanding of the parties with
respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters.

                                       16

<PAGE>

                  (c) No Piggyback on Registrations. Except as disclosed on
Schedule 2.1(r) of the Purchase Agreement, neither the Company nor any of its
securityholders (other than the Holders in such capacity pursuant hereto) may
include securities of the Company in the Registration Statements and the Company
shall not after the date hereof enter into any agreement providing such right to
any of its securityholders, unless the right so granted is subordinated in all
respects to the rights in full of the Holders set forth herein, and is not
otherwise in conflict or inconsistent with the provisions of this Agreement.

                  (d) Piggy-Back Registrations. Except as provided herein if, at
any time when there is not an effective Registration Statement covering the
Registrable Securities, the Company shall determine to prepare and file with the
Commission a registration statement relating to an offering for its own account
or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the
Securities Act) or their then equivalents relating to equity securities to be
issued solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other employee
benefit plans, the Company shall send to each Holder of Registrable Securities
written notice of such determination and, if within ten (10) days after receipt
of such notice, any such Holder shall so request in writing, (which request
shall specify the Registrable Securities intended to be disposed of by the
Purchasers), the Company will use reasonable efforts to effect the registration
under the Securities Act of all Registrable Securities which the Company has
been so requested to register by the Holder, subject to piggy-back rights as set
forth on Schedule 2.1(r) to the extent requisite to permit the disposition of
the Registrable Securities so to be registered, provided that if at any time
after giving written notice of its intention to register any securities and
prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to
register or to delay registration of such securities, the Company may, at its
election, give written notice of such determination to such Holder and,
thereupon, (i) in the case of a determination not to register, shall be relieved
of its obligation to register any Registrable Securities in connection with such
registration (but not from its obligation to pay expenses in accordance with
Section 4 hereof), and (ii) in the case of a determination to delay registering,
shall be permitted to delay registering any Registrable Securities being
registered pursuant to this Section 7(d) for the same period as the delay in
registering such other securities. The Company shall include in such
registration statement all or any part of such Registrable Securities such
Holder requests to be registered; provided, however, that the Company shall not
be required to register any Registrable Securities pursuant to this Section 7(d)
that are eligible for sale pursuant to Rule 144(k) of the Securities Act. In the
case of an underwritten public offering, if the managing underwriter(s) or
underwriter(s) should reasonably object to the inclusion of the Registrable
Securities in such registration statement, then if the Company after
consultation with the Underwriter's representative should reasonably determine
that the inclusion of such Registrable Securities would materially adversely
affect the offering contemplated in such registration statement, and based on
such determination recommends inclusion in such registration statement of fewer
Registrable Securities then proposed to be sold by the Holders, then (x) the
number of Registrable Securities of the Holders included in such registration

                                       17

<PAGE>

statement shall be reduced pro rata among such Holders (based upon the number of
Registrable Securities requested to be included in the registration) or (y) none
of the Registrable Securities of the Holders shall be included in such
registration statement if the Company, after consultation with the
underwriter(s), recommends the inclusion of none of such Registrable Securities;
in each case subject to piggy-back rights as are set forth on Schedule 2.1(r).
Notwithstanding the foregoing, the Company shall not file any registration
statement under the Securities Act (other than on Form S-4 or Form S-8) relating
to the offer and sale of any equity securities of the Company, or offer or sell
any equity securities of the Company in a transaction exempt from registration
pursuant to Regulation S under the Securities Act, until such time as the
Initial Registration Statement has been effective for a period of sixty (60)
Trading Days, which period shall be tolled if the effectiveness of the Initial
Registration Statement is suspended for any reason whatsoever.

                  (e) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holders of at least two thirds of the then outstanding Registrable
Securities; provided, however, that for the purposes of this sentence,
Registrable Securities that are owned, directly or indirectly, by the Company,
or an Affiliate of the Company are not deemed outstanding. Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of at least a majority of the Registrable Securities to which such
waiver or consent relates; provided, however, that the provisions of this
sentence may not be amended, modified, or supplemented except in accordance with
the provisions of the immediately preceding sentence.

                  (f) Notices. Any notice or other communication required or
permitted to be given hereunder shall be in writing and shall be deemed to have
been received (a) upon hand delivery (receipt acknowledged) or delivery by telex
(with correct answer back received), telecopy or facsimile (with transmission
confirmation report) at the address or number designated below (if received by
5:00 p.m. eastern time where such notice is to be received), or the first
Business Day following such delivery (if received after 5:00 p.m. eastern time
where such notice is to be received) or (b) on the second Business Day following
the date of mailing by express courier service, fully prepaid, addressed to such
address, or upon actual receipt of such mailing, whichever shall first occur.
The addresses for such communications are (i) if to the Company to HealthAxis
Inc., 2500 Dekalb Pike, Norristown, PA 19404, Attn: President, fax no. (610)
279-4498, with copies to Blank Rome Comisky & McCauley LLP, One Logan Square,
Philadelphia, PA 19103, Attn: Barry H. Genkin, fax no. (215) 988-6910 and (ii)
if to any Purchaser to the address set forth on Schedule I hereto with copies to
those specified on the signature pages hereto and to Akin, Gump, Strauss, Hauer
& Feld, L.L.P., 590 Madison Avenue, New York, New York 10022, Attn: James Kaye,
Esq., fax no. (212) 872-1002 or such other address as may be designated in
writing hereafter, in the same manner, by such Person.

                  (g) Successors and Assigns. This Agreement shall inure to the
benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The Company may not
assign its rights or obligations hereunder without the prior written consent of
the Holders of at least 90% of the outstanding Registrable Securities. Each
Holder may assign its rights hereunder in the manner and to the Persons as

                                       18

<PAGE>

permitted under the Purchase Agreement. In addition, the rights of each Holder
hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
automatically assignable by each Holder if: (i) the Holder agrees in writing
with the transferee or assignee to assign such rights, and a copy of such
agreement is furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (a) the name and address of such
transferee or assignee, and (b) the securities with respect to which such
registration rights are being transferred or assigned, (iii) following such
transfer or assignment the further disposition of such securities by the
transferee or assignees is restricted under the Securities Act and applicable
state securities laws, (iv) at or before the time the Company receives the
written notice contemplated by clause (ii) of this Section, the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
of this Agreement, and (v) such transfer shall have been made in accordance with
the applicable requirements of the Purchase Agreement. The rights to assignment
shall apply to the Holders (and to subsequent) successors and assigns.

                  (h) Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

                  (i) Governing Law. The corporate laws of the Commonwealth of
Pennsylvania shall govern all issues concerning the relative rights of the
Company and the Purchasers as its stockholders. All other questions concerning
the construction, validity, enforcement and interpretation of this Agreement
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to principles of conflicts of law. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in the City of New York, Borough of Manhattan, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is improper. Each party hereby irrevocably
waives personal service of process and consent to process being served in any
such suit, action or proceeding by mailing a copy thereof to such party at the
address for such notices to it under this Agreement and agrees that such service
shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve
process in any manner permitted by law.

                  (j) Cumulative Remedies. The remedies provided herein are
cumulative and not exclusive of any remedies provided by law.

                                       19

<PAGE>

                  (k) Severability. If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to be
invalid, illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use their reasonable efforts to find and employ an alternative
means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the
remaining terms, provisions, covenants and restrictions without including any of
such that may be hereafter declared invalid, illegal, void or unenforceable.

                  (l) Headings. The headings in this Agreement are for
convenience of reference only and shall not limit or otherwise affect the
meaning hereof.

                  (m) Shares Held by The Company and its Affiliates. Whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company or
its Affiliates (other than any Holder or transferees or successors or assigns
thereof if such Holder is deemed to be an Affiliate solely by reason of its
holdings of such Registrable Securities) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

                  (n) Revision of SEC Position on Warrants. In the event the
rules and regulations of the Commission or the policies of the staff of the
Commission are modified and as a result thereof the Company determines in good
faith that it may be practicable and in the interests of the Company and the
Holders to register the exercise of the Warrants so that the Warrant Shares may
be freely resold without maintaining an effective registration statement under
the Securities Act for resales, the Company and the Holders agree to cooperate
in good faith to effect such amendments to this Agreement as may be appropriate
to provide that the Company may fulfill its obligations hereunder with respect
to the Warrants and the Warrant Shares by maintaining an effective registration
statement under the Securities Act covering the exercise of the Warrants rather
than the resale of the Warrant Shares.

                  (o) Entire Agreement. This Agreement, along with the Exhibits
and Schedules hereto, amends and restates the Prior Registration Rights
Agreement in its entirety and, together with the Purchase Agreement Amendment
and the other documents delivered in connection therewith, constitutes the full
and entire understanding and agreement between the parties with regard to the
subjects hereof.

                                       20

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Amended and Restated
Registration Rights Agreement as of the date first written above.

                                            HEALTHAXIS INC.

                                            By:_________________________________
                                                 Name:
                                                 Title:

                                             Purchasers

                                             By ________________________________
                                             Name:
                                             Title:

<PAGE>

                                                                       EXHIBIT A

                              PLAN OF DISTRIBUTION

         The Company is registering the Registrable Securities on behalf of the
Holder. As used herein, the term Holder means the holder of the Registrable
Securities and includes donees and pledgees selling Registrable Securities
received from a named Holder after the date of this Prospectus. All costs,
expenses and fees in connection with the Initial Registration Statement of the
Registrable Securities offered hereby will be borne by the Company, excluding
legal fees of counsel to the Holders. Brokerage commissions and similar selling
expenses, if any, attributable to the sale of Registrable Securities will be
borne by the Holders. Sales of Registrable Securities may be effected by Holders
from time to time in one or more types of transactions (which may include block
transactions) on the OTC Bulletin Board, in the over-the-counter market, in
negotiated transactions, through put or call options transactions relating to
the Registrable Securities, through short sales of Registrable Securities, or a
combination of such methods of sale, at market prices prevailing at the time of
sale, or at negotiated prices. Such transactions may or may not involve brokers
or dealers. The Holders have advised the Company that they have not entered into
any agreements, understandings or arrangements with any underwriters or
broker-dealers regarding the sale of their securities, nor is there an
underwriter or coordinated broker acting in connection with the proposed sale of
Registrable Securities by the Holders.

         The Holders may enter into hedging transactions with broker-dealers or
other financial institutions. In connection with such transactions,
broker-dealers or other financial institutions may engage in short sales of the
Registrable Securities or of securities convertible into or exchangeable for the
Registrable Securities in the course of hedging positions they assume with
Holders. The Holders may also enter into options or other transactions with
broker-dealers or other financial institutions which require the delivery to
such broker-dealers or other financial institutions of Registrable Securities
offered by this Prospectus, which Registrable Securities such broker-dealer or
other financial institution may resell pursuant to this Prospectus (as amended
or supplemented to reflect such transaction).

         The Holders may effect such transactions by selling Registrable
Securities directly to purchasers or to or through broker-dealers, which may act
as agents or principals. Such broker-dealers may receive compensation in the
form of discounts, concessions or commissions from Holders and/or the purchasers
of Registrable Securities for whom such broker-dealers may act as agents or to
whom they sell as principal, or both (which compensation as to a particular
broker-dealer might be in excess of customary commissions).

         The Holders and any broker-dealers that act in connection with the sale
of Registrable Securities might be deemed to be "underwriters" within the
meaning of Section 2(11) of the Securities Act, and any commissions received by
such broker-dealers and any profit on the resale of the Registrable Securities
sold by them while acting as principals might be deemed to be underwriting

<PAGE>

discounts or commissions under the Securities Act. The Company has agreed to
indemnify each Holder, and each Holder, severally and not jointly has agreed to
indemnify the Company against certain liabilities, including liabilities arising
under the Securities Act. The Holders may agree to indemnify any agent, dealer
or broker-dealer that participates in transactions involving sales of the
Registrable Securities against certain liabilities, including liabilities
arising under the Securities Act.

         The Holders may be deemed to be "underwriters" within the meaning of
Section 2(11) of the Securities Act.

The Holders will be subject to the prospectus delivery requirements of the
Securities Act. The Company has informed the Holders that the anti-manipulative
provisions of Regulation M promulgated under the Exchange Act may apply to their
sales in the market.

         Holders also may resell all or a portion of the Registrable Securities
in open market transactions in reliance upon Rule 144 under the Securities Act,
provided they meet the criteria and conform to the requirements of such Rule.

                  Upon the Company being notified by a Holder that any material
arrangement has been entered into with a broker-dealer for the sale of
Registrable Securities through a block trade, special offering, exchange
distribution or secondary distribution or a purchase by a broker or dealer, a
supplement to this Prospectus will be filed, if required, pursuant to Rule
424(b) under the Securities Act, disclosing:

                  o   the name of each such Holder and of the participating
                      broker-dealer(s);

                  o   the number of Registrable Securities involved;

                  o   the initial price at which such Registrable Securities
                      were sold;

                  o   the commissions paid or discounts or concessions allowed
                      to such  broker-dealer(s), where applicable;

                  o   that such broker-dealer(s) did not conduct any
                      investigation to verify the information set out or
                      incorporated by reference in this Prospectus; and

                  o   other facts material to the transactions.

In addition, upon the Company being notified by a Holder that a donee or pledgee
intends to sell more than 1,000 Registrable Securities, a supplement to this
Prospectus may be filed.

<PAGE>

                                                                       EXHIBIT B

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

[TRANSFER AGENT]
Attn.:

                  Re:      HealthAxis Inc.

Ladies and Gentlemen:

         We are counsel to HealthAxis Inc., a Pennsylvania corporation (the
"Company"), and have represented the Company in connection with that certain
Amendment to Securities Purchase Agreement (the "Purchase Agreement Amendment")
entered into by and among the Company and the buyers named therein
(collectively, the "Holders") pursuant to which the Company issued to the
Holders its 2% Convertible Debentures convertible into shares of the Company's
common stock, par value $.10 per share (the "Common Stock"), and Warrants (the
"Warrants") to acquire shares of Common Stock. Pursuant to the Purchase
Agreement Amendment, the Company also has entered into an Amended and Restated
Registration Rights Agreement with the Holders (the "Registration Rights
Agreement") pursuant to which the Company agreed, among other things, to
register the Registrable Securities (as defined in the Registration Rights
Agreement), including the shares of Common Stock issuable upon conversion of the
Debentures and exercise of the Warrants, under the Securities Act of 1933, as
amended (the "1933 Act"). In connection with the Company's obligations under the
Registration Rights Agreement, on _______________, 1999, the Company filed a
Registration Statement on Form S-3 (File No. 333-_____________) (the
"Registration Statement") with the Securities and Exchange Commission (the
"SEC") relating to the Registrable Securities which names each of the Holders as
a selling stockholder thereunder.

         In connection with the foregoing, we advise you that a member of the
SEC's staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [ENTER TIME
OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and we have no knowledge,
after telephonic inquiry of a member of the SEC's staff, that any stop order
suspending its effectiveness has been issued or that any proceedings for that
purpose are pending before, or threatened by, the SEC and the Registrable
Securities are available for resale under the 1933 Act pursuant to the
Registration Statement.

                                                     Very truly yours,
                                                     [ISSUER'S COUNSEL]

cc:      [LIST NAMES OF HOLDERS]

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