Document:

Exhibit 10.51

 

SECOND AMENDMENT

TO

EMPLOYMENT AGREEMENT

 

A.            The Employment Agreement (the “Agreement”) entered
into December 21, 2004 by and between Clayton Holdings, Inc., a
Delaware corporation (“Employer”) and Steven L. Cohen (“Employee”),
as amended as of January 30, 2007, is hereby further amended as follows:

 

1.             Section IV of the Agreement is
hereby amended by adding the following sentence at the end of the fifth
paragraph thereof:

 

“In order to be eligible
to receive the Termination Benefits, Employee must execute such release within
forty-five (45) days of Employee’s receipt of such release.”

 

2.             Section XV of the Agreement is
hereby amended by adding the following subsections (i) and (j) immediately
following subsection (h):

 

“(i)          MODIFIED CUTBACK:  Anything in this Agreement to the contrary
notwithstanding, in the event that any compensation, payment or distribution by
Employer to or on behalf of Employee, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (the “Severance
Payments”) would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code” and such
excise tax, together with any interest or penalties incurred by Employee with
respect to such excise tax, the “Excise Tax”), the following provisions
shall apply:

 

(i)            If the Severance Payments, reduced
by the sum of (A) the Excise Tax and (B) the total of the federal,
state, and local income and employment taxes payable by Employee on the amount
of the Severance Payments which is in excess of the Threshold Amount (defined
below), are greater than or equal to the Threshold Amount, Employee shall be
entitled to the full benefits payable under this Agreement.

 

(ii)           If the Threshold Amount is less than (x) the
Severance Payments, but greater than (y) the Severance Payments reduced by
the sum of (A) the Excise Tax and (B) the total of the federal,
state, and local income and employment taxes on the 

 

 

amount of the Severance
Payments which is in excess of the Threshold Amount, then the benefits payable
under this Agreement shall be reduced (but not below zero) to the extent
necessary so that the sum of the Severance Payments shall not exceed the
Threshold Amount.

 

For the purposes of this
subsection (i), “Threshold Amount” shall mean three times Employee’s “base
amount” within the meaning of Section 280G(b)(3) of the Code and the
regulations promulgated thereunder less one dollar ($1.00).

 

The determination as to
which of the alternative provisions of subsection (i) above shall apply to
Employee shall be made by a nationally recognized accounting firm selected by
Employer (the “Accounting Firm”), which shall provide detailed
supporting calculations both to Employer and Employee within 15 business days
of the date on which Employee’s employment is terminated, if applicable, or at
such earlier time as is reasonably requested by Employer or Employee.  For purposes of determining which of the
alternative provisions of subsection (i) above shall apply, Employee shall
be deemed to pay federal income taxes at the highest marginal rate of federal
income taxation applicable to individuals for the calendar year in which the
determination is to be made, and state and local income taxes at the highest
marginal rates of individual taxation in the state and locality of Employee’s
residence on the date on which Employee’s employment is terminated, net of the
maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 
Any determination by the Accounting Firm shall be binding upon Employer
and Employee.

 

(j)                                     SECTION 409A:  Anything in this Agreement to the contrary
notwithstanding, if at the time of Employee’s separation from service within
the meaning of Section 409A of the Code, Employer determines that Employee
is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of
the Code, then to the extent any payment or benefit that Employee becomes
entitled to under this Agreement would be considered deferred compensation
subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of
the Code as a result of the application of Section 409A(a)(2)(B)(i) of
the Code, such payment shall not be payable and such benefit shall not be
provided until the date that is the earlier of (i) six months and one day
after Employee’s separation from service, or (ii) Employee’s death.”

 

2

 

B.           Except as amended herein, the
Agreement is hereby confirmed in all other respects.

 

IN WITNESS WHEREOF, this Second Amendment is entered
into this 13th day of April, 2008 by the parties hereto.

 

	
   

  	
  CLAYTON HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. Keith Johnson

  
	
   

  	
   

  	
  Name:  D. Keith Johnson

  
	
   

  	
   

  	
  Title:    President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven L. Cohen

  
	
   

  	
   

  	
  Steven
  L. Cohen

  

 

3Exhibit 10.1

 

THIRD AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

THIS THIRD AMENDMENT to Loan and Security Agreement (this  “Amendment”) is entered into this 25th day of
April, 2008, by and among Silicon Valley Bank (“Bank”) and Healthaxis, Inc.,
a Pennsylvania corporation, Healthaxis, Ltd., a Texas limited partnership, and
Healthaxis Imaging Services, LLC, a Texas limited liability company (jointly
and severally, “Borrower”) whose address is 7301 N. State Highway 161, Suite 300,
Irving, Texas 75039.

 

RECITALS

 

A.            Bank and Borrower have entered into
that certain Loan and Security Agreement dated as of August 14, 2006, as
amended by that certain First Amendment to Loan and Security Agreement by and
between Bank and Borrower dated as of April 16, 2007  and that certain letter by and between Bank
and Borrower dated as of May 9, 2007 (as the same may from time to time be
further amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.            Bank has extended credit to Borrower
for the purposes permitted in the Loan Agreement.

 

C.            Borrower
has requested that Bank amend the Loan Agreement to revised the Financial
Covenants stated in Section 6.7 of the Loan Agreement.

 

D.            Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to
the extent, in accordance with the terms, subject to the conditions and in
reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing recitals and
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound, the parties hereto
agree as follows:

 

1.             Definitions.  Capitalized
terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement.

 

2.             Amendments to Loan Agreement.

 

2.1          Section 6.7 (Financial Covenants).  Section 6.7 is amended in its entirety
and replaced with the following:

 

Borrowers shall maintain at all times, to be tested as of the last day
of each month, unless otherwise noted, on a consolidated basis with respect to
Borrowers and their Subsidiaries, without duplication:

 

(a)  EBITDA.  Maintain,
measured as of the end of each month during the periods on a trailing three (3) month
basis, EBITDA of at least ($50,000) for the 

 

 

periods
ending March 31, 2008, April 30, 2008 and May 31, 2008,
increasing to at least $0.00 beginning with the period ending June 30,
2008 and each period thereafter.  A one
time charge of up to $225,000 related to severance payments and write offs
of bad debt may be added back to the EBITDA formula for the periods ending March 31,
2008, April 30, 2008 and May 31, 2008.

 

(b) Liquidity Ratio (to be maintained at all times).  A ratio of cash held with Bank plus Accounts
to outstanding Obligations of at least 2.00 to 1.00.

 

3.             Limitation of Amendments.

 

3.1          The amendments set forth in Section 2,
above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Loan
Document, or (b) otherwise prejudice any right or remedy which Bank may
now have or may have in the future under or in connection with any Loan
Document.

 

3.2          This Amendment shall be construed in connection with
and as part of the Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Documents, except as
herein amended, are hereby ratified and confirmed and shall remain in full
force and effect.

 

4.             Representations
and Warranties.  To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as follows:

 

4.1          Immediately after giving effect to this Amendment (a) the
representations and warranties contained in the Loan Documents are true,
accurate and complete in all material respects as of the date hereof (except to
the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of
Default has occurred and is continuing;

 

4.2          Borrower has the power and authority to execute and
deliver this Amendment and to perform its obligations under the Loan Agreement,
as amended by this Amendment;

 

4.3          The organizational documents of Borrower delivered to
Bank on or prior to April 16, 2007 remain true, accurate and complete and
have not been amended, supplemented or restated and are and continue to be in
full force and effect;

 

4.4          The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, have been duly authorized;

 

4.5          The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not and will not contravene (a) any
law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, 

 

 

judgment or decree of any
court or other governmental or public body or authority, or subdivision
thereof, binding on Borrower, or (d) the organizational documents of
Borrower;

 

4.6          The execution and delivery by Borrower of this
Amendment and the performance by Borrower of its obligations under the Loan
Agreement, as amended by this Amendment, do not require any order, consent,
approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or
authority, or subdivision thereof, binding on either Borrower, except as
already has been obtained or made; and

 

4.7          This Amendment has been duly executed and delivered by
Borrower and is the binding obligation of Borrower, enforceable against
Borrower in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to
or affecting creditors’ rights.

 

5.             Integration. 
This Amendment and the Loan Documents represent the entire agreement
about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings,
representations, warranties, and negotiations between the parties about the subject
matter of this Amendment and the Loan Documents merge into this Amendment and
the Loan Documents.

 

6.             Counterparts. 
This Amendment may be executed in any number of counterparts and all of
such counterparts taken together shall be deemed to constitute one and the same
instrument.

 

7.             Effectiveness.  This
Amendment shall be deemed effective as of March 31, 2008 upon
(a) the due execution and delivery to Bank of this Amendment by each party
hereto, and (b) Borrower’s payment of an amendment fee in an amount equal
to $1,500.

 

[Signature page follows.]

 

 

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

 

 

	
  BANK

  	
   

  	
  BORROWER

  
	
   

  	
   

  	
   

  
	
  Silicon
  Valley Bank 

  	
   

  	
  Healthaxis, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Audrey Clow 

  	
   

  	
  By:

  	
    /s/
  Ronald K. Herbert

  
	
  Name:

  	
    Audrey
  Clow 

  	
   

  	
  Name:

  	
    Ronald
  K. Herbert 

  
	
  Title:
  

  	
    Relationship
  Manager

  	
   

  	
  Title:

  	
    CFO
  

  
	
   

  	
   

  	
  Healthaxis,
  Ltd.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  Healthaxis
  Managing Partner, LLC

  
	
   

  	
   

  	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  	
  By:

  	
  Healthaxis.com, Inc.,

  
	
   

  	
   

  	
   

  	
   

  	
  A
  Pennsylvania corporation 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
    /s/
  Ronald K. Herbert 

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Ronald
  K. Herbert 

  
	
   

  	
   

  	
   

  	
  Title:

  	
    CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Healthaxis
  Imaging Services, LLC 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
  Healthaxis,
  Ltd., a Texas limited 

  
	
   

  	
   

  	
   

  	
  partnership
  

  
	
   

  	
   

  	
   

  	
  By:

  	
  Healthaxis
  Managing Partner,

  
	
   

  	
   

  	
   

  	
   

  	
  LLC,
  a Delaware limited

  
	
   

  	
   

  	
   

  	
   

  	
  liability
  company

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Healthaxis.com, Inc.,
  a

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pennsylvania
  corporation 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Healthaxis, Inc.,
  a

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Pennsylvania
  corporation 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
    /s/
  Ronald K. Herbert 

  
	
   

  	
   

  	
   

  	
  Name:

  	
    Ronald
  K. Herbert 

  
	
   

  	
   

  	
   

  	
  Title:

  	
    CFO

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