Document:

Untitled Document

Exhibit
  10.4 

THIS WARRANT
  AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED
  OR QUALIFIED FOR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE
  SECURITIES LAW AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
  OR QUALIFICATION OR AN EXEMPTION THEREFROM UNDER THE SECURITIES ACT OF 1933,
  AS AMENDED, AND ANY SUCH APPLICABLE STATE LAWS.

   

THIS WARRANT
  AND THE COMMON STOCK ISSUABLE UPON EXERCISE HEREOF (1) MAY, UNDER CERTAIN CIRCUMSTANCES,
  BE SUBJECT TO A CERTAIN INVESTOR RIGHTS AGREEMENT OF EVEN DATE HEREWITH BETWEEN
  THE ISSUER HEREOF AND INITIAL HOLDER HEREOF (THE “INVESTOR RIGHTS AGREEMENT”)
  THAT RESTRICTS CERTAIN TRANSFERS OF SUCH SECURITIES AND (2) MAY BE SUBJECT TO
  CERTAIN RIGHTS AND OBLIGATIONS PROVIDED FOR IN THAT CERTAIN REGISTRATION RIGHTS
  AGREEMENT OF EVEN DATE HEREWITH BETWEEN THE ISSUER HEREOF AND THE INITIAL HOLDER
  HEREOF (THE “REGISTRATION RIGHTS AGREEMENT”). A COPY OF SUCH
  AGREEMENTS SHALL BE FURNISHED WITHOUT CHARGE BY THE ISSUER HEREOF TO THE HOLDER
  HEREOF UPON WRITTEN REQUEST.

   

	No. 2005 - 03
    	 	Date
      of Issuance: May 13, 2005 

WARRANT
  TO PURCHASE

  SHARES OF COMMON STOCK

  OF

  HEALTHAXIS INC. 

     THIS
  IS TO CERTIFY that, for value received, Tak Investments, Inc., a Delaware corporation
  (the “Holder”) is entitled to purchase from Healthaxis Inc., a Pennsylvania
  corporation (the “Company”), at any time from the date of issuance
  and on or before the Expiration Date, the number of shares of Common Stock of
  the Company equal to 555,556 plus one (1) additional share of Common Stock for
  each four (4) shares of Common Stock purchased pursuant to Warrant No. 2005-01
  (or any successor instrument or instruments), up to an aggregate of 1,388,889
  shares of Common Stock of the Company (as adjusted pursuant to Section 2
  of this Warrant) at the Exercise Price on the terms and subject to the conditions
  hereinafter set forth.

   

     Capitalized
  terms used herein without definition shall have the meanings set forth in Section 8
  of this Warrant.

   

     1.
  Exercise of Warrant.

   

          (a)
  Subject to the terms and conditions set forth herein, the Holder shall have
  the right, at its option, to exercise this Warrant in whole or in part at any
  time during the period commencing on the Issue Date and ending on the Expiration
  Date. To exercise this Warrant, the Holder shall deliver to the Company (i) a
  notice of exercise in the form attached hereto (the “Notice of Exercise”)
  duly completed and

   

 

executed,
  (ii) an amount in cash equal to the Exercise Price, (iii) this Warrant;
  and (iv) such documentation as the Company may reasonably require in connection
  with establishing an exemption from registration under federal and state securities
  law for the issuance of shares of Common Stock to Holder upon the exercise hereof,
  including, without limitation, an investor questionnaire, and a letter of securities
  law representations and warranties concerning Holder and Holder’s investment
  in such securities. At the option of the Holder, payment of the Exercise Price
  shall be made: (A) by wire transfer of funds to an account in a bank located
  in the United States designated by the Company for such purpose; (B) by
  certified or official bank check payable to the order of the Company; (C) by
  the method authorized by Section 1(c) hereof (if applicable); or (D) a
  combination of such methods.

   

          (b)
  Upon receipt of the required deliveries, and subject to Section 1(c) 
  below, the Company shall, as promptly as practicable and no later than three
  (3) business days after receipt of the Notice of Exercise, cause to be issued
  and delivered to the Holder, subject to the terms of the Investor Rights Agreement,
  a certificate or certificates representing shares of Common Stock equal in the
  aggregate to the number of shares of Common Stock specified in the Notice of
  Exercise. The shares of Common Stock so purchased shall be deemed to be issued
  to the Holder, as the record owner of such shares as of the close of business
  on the Exercise Date. The Company shall pay all reasonable expenses, taxes and
  other charges payable in connection with the preparation, execution and delivery
  of stock certificates pursuant to this Section 1.

   

          (c)
  Notwithstanding any provision herein to the contrary, commencing on the second
  anniversary of the Issue Date, and provided that (i) the Company’s Warrant
  No. 2005-01 has been exercised for at least $5 million; (ii) the Company’s
  Common Stock does not trade, at any time during the 12-month period immediately
  prior to the Exercise Date, at a daily market price greater than $3.50 per share
  for twenty (20) trading days during any consecutive thirty (30) trading day
  period, and (iii) the Company’s average annual sales growth rate for the
  two fiscal years immediately prior to the Exercise Date is less than fifteen
  percent (15%), then with respect to up to 55,556 shares of Common Stock of the
  Company, plus one (1) additional share of Common Stock for each forty (40) shares
  of Common Stock purchased pursuant to the Company’s Warrant No. 2005-01
  (or any successor instrument or instruments), up to an aggregate of 138,889
  shares of Common Stock of the Company, in lieu of exercising this Warrant for
  cash, Holder may elect, at any time after the second anniversary of the Issue
  Date, to receive Common Stock equal to the value (as determined below) of this
  Warrant (or the portion thereof being exercised) by surrender of this Warrant
  at the principal office of the Company, together with the form of Election to
  Exercise attached as Exhibit A hereto fully executed, in which event the Company
  shall issue to Holder that number of shares of Common Stock computed using the
  following formula:

   

	Y
      =	 	
        Z x ((C-B) / C)

         

	Where
      	Y
      =	 	 the
        number of shares of Common Stock to be issued to Holder 

	Z
      =	 	
        the aggregate number of shares of Common Stock then purchasable on a cashless
        basis under this Warrant or, if only a portion of this Warrant is being
        exercised on a cashless basis, the number of shares of Common Stock for
        which this Warrant is being exercised on a cashless basis (at the date
        of such calculation)

         

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	B
      =	 	
        Exercise Price

         

	C
      =	 	
        Market Price of one share of Common Stock (at the date of such calculation)

         

For purposes
  of this Section, the Market Price of one share of the Common Stock shall be
  calculated as follows: If the Common Stock is traded on a national securities
  exchange, the Nasdaq Stock Market or the over-the-counter market, the last reported
  price on the date of valuation at which the Common Stock has traded on such
  exchange or the Nasdaq Stock Market, or the average of the bid and asked prices
  on the over-the-counter market on the date of valuation or, if no sale took
  place on such date, the last date on which a sale took place. If the Common
  Stock is not so traded, the Market Price of one share of the Common Stock shall
  be as determined by agreement of the parties hereto, or if the parties hereto
  cannot reach agreement, then such value shall be determined by appraisal by
  an independent investment banking firm selected by the Company and acceptable
  to Holder; provided, however, that if Holder and the Company cannot agree on
  such investment banking firm, such appraised value shall be determined by an
  independent investment banking firm independently selected by the agreement
  of an investment banking firm selected by each of the Company and Holder. The
  cost of such appraisal shall be borne by the Company.

   

     2.
  Adjustment of Exercise Price and Number of Shares. The Exercise Price
  and the number of shares of Common Stock obtainable upon exercise of this Warrant
  shall be subject to adjustment from time to time as provided in this Section 2.

   

          (a)
  If the Company at any time after the Issue Date: (i) pays or makes a stock dividend
  on its Common Stock in shares of Common Stock, (ii) subdivides outstanding shares
  of Common Stock into a larger number of shares, (iii) issues any shares
  of Common Stock by reclassification of shares of Common Stock, or (iv) effects
  a reverse stock split of Common Stock, then this Warrant shall thereafter be
  exercisable for that number of shares that would have derived had the Warrant
  been exercised immediately prior to the events listed in (i), (ii), (iii) or
  (iv) above (and the Exercise Price thereof shall be correspondingly adjusted).
  In the case of a subdivision or re-classification, any adjustment made pursuant
  to this Section 2(a) shall become effective immediately after the effective
  date of such subdivision or re-classification. Such adjustments shall be made
  successively whenever any event listed above shall occur.

   

          (b)
  If at any time after the Issue Date, the Common Stock issuable upon the exercise
  of the Warrant is changed into the same or a different number of shares of any
  class or classes of stock, whether by recapitalization, reclassification, exchange,
  substitution or otherwise, and other than a capital reorganization, merger or
  consolidation (the adjustment for which is provided for in Section 2(c)), in
  any such event the Holder shall have the right thereafter to exercise this Warrant
  for stock into the kind and amount of stock and other securities and property
  receivable in connection with such recapitalization, reclassification or other
  change that it would have been entitled to receive had it exercised this Warrant
  immediately prior to such recapitalization, reclassification, exchange, substitution
  or other event, all subject to further adjustments as provided herein or with
  respect to such other securities or property by the terms thereof (and the Exercise
  Price of this Warrant shall be correspondingly adjusted).

   

3

 

          (c)
  If at any time after the Issue Date, the Common Stock is converted into other
  securities or property, whether pursuant to a capital reorganization, merger,
  consolidation or otherwise (other than a recapitalization, reclassification,
  subdivision, exchange or substitution of shares provided for in Section 2(b)),
  as a part of such transaction, provision shall be made so that the Holder shall
  thereafter be entitled to receive upon exercise of this Warrant the number of
  shares of stock or other securities or property to which a holder of the number
  of shares of Common Stock deliverable upon conversion would have been entitled
  to receive in connection with such transaction, subject to adjustment in respect
  of such stock or securities by the terms thereof (and the Exercise Price of
  this Warrant shall be correspondingly adjusted). To the extent applicable, appropriate
  adjustment shall be made in the application of the provisions of this Section
  2 with respect to the rights of the Holder after such transaction to the end
  that the provisions of this Section 2 (including adjustment to the number of
  shares issuable upon exercise of the Warrant and the adjustment of the Exercise
  Price thereof) shall be applicable after that event and be as nearly equivalent
  as practicable.

   

          (d)
  In case the Company shall fix a payment date for the making of a distribution
  to all holders of Common Stock (including any such distribution made in connection
  with a consolidation or merger in which the Company is the continuing corporation)
  of evidences of indebtedness or assets (other than cash dividends or cash distributions
  payable out of consolidated earnings or earned surplus or dividends or distributions
  referred to in Section 2(a)), or subscription rights or warrants, the Exercise
  Price to be in effect after such payment date shall be determined by multiplying
  the Exercise Price in effect immediately prior to such payment date by a fraction,
  the numerator of which shall be the total number of shares of Common Stock outstanding
  multiplied by the Market Price (as defined below) per share of Common Stock
  immediately prior to such payment date, less the fair market value (as determined
  by the Company’s Board of Directors in good faith) of said assets or evidences
  of indebtedness so distributed, or of such subscription rights or warrants,
  and the denominator of which shall be the total number of shares of Common Stock
  outstanding multiplied by such Market Price per share of Common Stock immediately
  prior to such payment date. “Market Price” as of a particular date
  (the “Valuation Date”) shall mean the following: (i) if the Common
  Stock is then listed on a national stock exchange, the Market Price shall be
  the closing sale price of one share of Common Stock on such exchange on the
  last trading day prior to the Valuation Date, provided that if such stock has
  not traded in the prior ten (10) trading sessions, the Market Price shall be
  the average closing price of one share of Common Stock in the most recent ten
  (10) trading sessions during which the Common Stock has traded; (ii) if the
  Common Stock is then included in The Nasdaq Stock Market, Inc. (“Nasdaq”),
  the Market Price shall be the closing sale price of one share of Common Stock
  on Nasdaq on the last trading day prior to the Valuation Date or, if no such
  closing sale price is available, the average of the high bid and the low ask
  price quoted on Nasdaq as of the end of the last trading day prior to the Valuation
  Date, provided that if such stock has not traded in the prior ten (10) trading
  sessions, the Market Price shall be the average closing price of one share of
  Common Stock in the most recent ten (10) trading sessions during which the Common
  Stock has traded; (iii) if the Common Stock is then included in the Over-the-Counter
  Bulletin Board, the Market Price shall be the closing sale price of one share
  of Common Stock on the Over-the-Counter Bulletin Board on the last trading day
  prior to the Valuation Date or, if no such closing sale price is available,
  the average of the high bid and the low ask price quoted on the Over-the-Counter
  Bulletin Board as of the end of the last trading day prior to the Valuation
  Date, provided that if such stock has not traded in the prior ten (10) trading
  sessions, the Market Price shall

   

4

 

be the average
  closing price of one share of Common Stock in the most recent ten (10) trading
  sessions during which the Common Stock has traded; and (iv) if the Common Stock
  is then included in the “pink sheets,” the Market Price shall be the
  closing sale price of one share of Common Stock on the “pink sheets”
  on the last trading day prior to the Valuation Date or, if no such closing sale
  price is available, the average of the high bid and the low ask price quoted
  on the “pink sheets” as of the end of the last trading day prior to
  the Valuation Date, provided that if such stock has not traded in the prior
  ten (10) trading sessions, the Market Price shall be the average closing price
  of one share of Common Stock in the most recent ten (10) trading sessions during
  which the Common Stock has traded. The Board of Directors of the Company shall
  respond promptly, in writing, to an inquiry by the Holder prior to the exercise
  hereunder as to the Market Price of a share of Common Stock as determined by
  the Board of Directors of the Company.

   

          (e)
  An adjustment to the Exercise Price shall become effective immediately after
  the payment date in the case of each dividend or distribution and immediately
  after the effective date of each other event which requires an adjustment.

   

          (f)
  Holder, by accepting the benefits of this Warrant, agrees that the number of
  shares for which this Warrant is exercisable shall be subject to adjustment
  or reduction as provided in this Section 2.

   

          (g)
  (i) Within three (3) business days of any adjustment of the number of shares
  issuable upon exercise hereof, the Company shall give written notice thereof
  to the Holder, setting forth in reasonable detail and certifying the calculation
  of such adjustment.

   

               (ii)
  The Company shall give written notice to the Holder at least fifteen (15) days
  prior to the date on which any merger or reclassification provided for in Section
  2(c) hereof shall take place.

   

     3.
  Reservation. The Company shall, at all times prior to the Expiration
  Date, reserve and keep available, solely for issuance and delivery upon the
  exercise of this Warrant, a number of authorized shares of Common Stock equal
  to the number of shares issuable from time to time upon exercise of this Warrant.

   

     4.
  Fully Paid Stock. The Company covenants that the shares of Common Stock
  represented by each and every certificate for its Common Stock to be delivered
  on the exercise of the purchase rights herein shall, at the time of such delivery,
  and upon such payment in full of the Exercise Price for each share of Common
  Stock being exercised, be duly authorized, validly issued and outstanding and
  fully paid and nonassessable.

   

     5.
  Restrictions on Transfer. Holder, by acceptance hereof, agrees that the
  transfer of this Warrant and the shares issuable upon exercise of the Warrant
  are, under certain circumstances, subject to the provisions of the Investor
  Rights Agreement.

   

5

 

     6.
  Partial Exercise or Purchase. If this Warrant is exercised or purchased
  in part only, the Holder shall be entitled to receive a new Warrant, issued
  at the Company’s expense, registered in the name of the Holder evidencing
  the right to purchase the aggregate number of shares of Common Stock for which
  this Warrant was not exercised or purchased.

   

     7.
  No Fractional Shares or Scrip. No fractional shares or scrip representing
  fractional shares shall be issued upon the exercise of this Warrant. In lieu
  of any fractional share to which the Holder would otherwise be entitled, the
  Company shall make a cash payment equal to the difference between the Market
  Price and the Exercise Price multiplied by such fraction.

   

     8.
  Definitions.

   

     In
  addition to the terms defined elsewhere in this Warrant, the following terms
  shall have the meanings set forth below:

   

     “Common
  Stock” means the Company’s common stock, par value $.10 per share.

   

     “Exercise
  Date” means the date on which this Warrant is exercised by the Holder
  pursuant to the terms hereof.

   

     “Exercise
  Price” means $3.15 per share of Common Stock, subject to adjustment
  as provided herein.

   

     “Expiration
  Date” shall mean 5:00 p.m., Dallas, Texas time, on the fourth anniversary
  of the Issue Date.

   

     “Holder”
  shall mean the person in whose name this Warrant is registered on the books
  of the Company maintained for such purpose.

   

     “Investor
  Rights Agreement” means the Investor Rights Agreement, dated as of
  May 13, 2005, by and among the Company and the initial Holder.

   

     “Issue
  Date” shall mean the date of issuance of this Warrant.

   

     “Person”
  shall mean any individual, sole proprietorship, partnership, joint venture,
  unincorporated organization, association, corporation, trust, institution, public
  benefit corporation, entity or government.

   

     “Registration
  Rights Agreement” means the Registration Rights Agreement, dated as
  of May 13, 2005, by and among the Company and the initial Holder.

   

     “Securities
  Act” shall mean the Securities Act of 1933, as amended, or any successor
  federal statute, and the rules and regulations of the Securities and Exchange
  Commission promulgated thereunder, all as in effect from time to time.

   

     “Warrant”
  means this Warrant and all warrants hereafter issued in exchange or substitution
  for this Warrant.

   

6

 

     9.
  Replacement Warrants. If this Warrant is mutilated, lost, stolen or destroyed,
  the Company may issue a new Warrant of like date, tenor and denomination and
  deliver the same in exchange and substitution for and upon surrender and cancellation
  of the mutilated Warrant, or in lieu of the Warrant lost, stolen or destroyed,
  upon receipt of evidence satisfactory to the Company of the loss, theft or destruction
  of such Warrant.

   

     10.
  Warrant Holder Not a Shareholder. The Holder shall not be entitled to
  vote or receive dividends or be deemed the holder of the Common Stock or any
  other securities that may at any time be issuable on the exercise hereof for
  any purpose, nor shall anything contained herein be construed to confer upon
  the Holder, as such, any of the rights of a shareholder of the Company or any
  right to vote for the election of directors or upon any matter submitted to
  shareholders at any meeting thereof, or to give or withhold consent to any corporate
  action (whether upon any recapitalization, issuance of stock, reclassification
  of stock, change of par value, or change of stock to no par value, consolidation,
  merger, conveyance, or otherwise) or to receive notice of meetings, or to receive
  dividends or subscription rights or otherwise until the Warrant shall have been
  exercised as provided herein.

   

     11.
  Identity of Transfer Agent. The Transfer Agent for the Common Stock is
  Mellon Investor Services LLC. Upon the appointment of any subsequent transfer
  agent for the Common Stock or other shares of the Company’s capital stock
  issuable upon the exercise of the rights of purchase represented by the Warrant,
  the Company will mail to the Holder a statement setting forth the name and address
  of such transfer agent.

   

     12.
  Registration Rights. The initial Holder of this Warrant is entitled to
  the benefit of certain registration rights with respect to the shares of Common
  Stock issuable upon the exercise of this Warrant as provided in the Registration
  Rights Agreement, and any subsequent Holder hereof shall be entitled to such
  rights to the extent provided in the Registration Rights Agreement.

   

     13.
  Notices. Except as otherwise expressly provided herein, any notices,
  consents, waivers or other communications required or permitted to be given
  under this Warrant must be in writing and will be deemed to have been delivered
  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
  facsimile, provided confirmation of transmission is mechanically or electronically
  generated and kept on file by the sending party (if received by 5:00 p.m. eastern
  time (“ET”) where such notice is received) or the first business day
  following such delivery (if received after 5:00 p.m. ET where such notice is
  received); or (iii) one business day after deposit with a nationally recognized
  overnight delivery service, in each case properly addressed to the party to
  receive the same. Any communications shall be addressed (a) to the Company,
  at its principal executive offices and (b) to the Holder, at the Holder’s
  address as it appears in the records of the Company (unless otherwise indicated
  by the Holder).

   

     14.
  Severability. Whenever possible, each provision of this Warrant shall
  be interpreted in such manner as to be effective under applicable law, but if
  any provision of this Warrant is held to be prohibited by or invalid under applicable
  law in any jurisdiction, such provision shall be ineffective only to the extent
  of such prohibition or invalidity, without invalidating any other provision
  of this Agreement.

   

7

 

     15.
  Captions; Governing Law. The descriptive headings of the various sections
  of this Warrant are for convenience only and shall not affect the meaning or
  construction of the provisions hereof. All questions concerning the construction,
  validity, enforcement and interpretation of this Warrant shall be governed by
  the internal law of the Commonwealth of Pennsylvania, without giving effect
  to any choice of law or conflict of law provision or rule. Any dispute, difference,
  controversy or claim arising in connection with or related or incidental to
  a matter arising under this Warrant shall be finally settled using the arbitration
  provisions set forth in Section 10.8 of the Stock and Warrant Purchase Agreement,
  dated as of February 23, 2005, between the Company and the initial Holder.

   

     16.
  Waivers and Amendments. This Warrant and any provisions hereof may be
  changed, waived, discharged or terminated only by an instrument in writing signed
  by the party against whom enforcement of the same is sought.

   

     17.
  Successors. All the covenants and provisions hereof by or for the benefit
  of the Holder shall bind and inure to the benefit of its respective successors
  and assigns hereunder.

   

     18.
  Saturdays, Sundays, Holidays, etc. If the last or appointed day for the
  taking of any action or the expiration of any right required or granted herein
  shall be a Saturday or a Sunday or shall be a legal holiday, then such action
  may be taken or such right may be executed on the next succeeding day not a
  legal holiday.

   

     IN
  WITNESS WHEREOF, the Company has caused this Warrant to be executed by its duly
  authorized officer and to be dated this 13th day of May, 2005.

   

	 	HEALTHAXIS
      INC.
	 	 	

      

      
	 	By:   	/s/ James
      W. McLane
	  	 	 

	  	 	James
      W. McLane, Chief Executive Officer

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NOTICE
  OF EXERCISE 

Healthaxis
  Inc.

  The Towers at Williams Square

  5215 N. O’Connor Blvd., Suite 800

  Irving, Texas 75039

   

     The
  undersigned, __________________________________, pursuant to the provisions
  of Warrant No. 2005-3 issued on May 13, 2005, hereby elects to purchase _____________
  shares of common stock of Healthaxis Inc. covered by the Warrant described herein.

   

     This
  exercise of the Warrant is being carried out pursuant to: Section 1(a) of the
  Warrant o or Section 1(c) of the
  Warrant o (check one).

   

Dated: _________________________
  

   

	 	 	 
	 	 	 
	 	Signature:   	 
	  	 	 

	 	Address:
      	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

9Untitled Document

Exhibit
  10.5 

INVESTOR
  RIGHTS AGREEMENT 

     THIS
  INVESTOR RIGHTS AGREEMENT  (this “Agreement”) is dated as of May 13,
  2005 among Healthaxis Inc., a Pennsylvania corporation (the “Company”)
  and Tak Investments, Inc., a Delaware corporation (the “Purchaser”).
  Capitalized terms used but not defined herein have the meanings ascribed to
  them in the Stock and Warrant Purchase Agreement, dated as of February 23, 2005,
  between the Company and the Purchaser (the “Stock Purchase Agreement”).

   

     WHEREAS,
  the execution of this Agreement is a condition to the Closing described in the
  Stock Purchase Agreement.

   

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

   

ARTICLE
  I. 

GENERAL
  RESTRICTIONS ON TRANSFER 

     1.1
  Restrictions Generally. The Purchaser shall not directly or indirectly
  effect any sale, transfer, assignment, gift, exchange, pledge, hypothecation,
  encumbrance or other disposition of any Purchased Securities or Warrant Shares
  (collectively, the “Restricted Securities”), or any interest therein,
  whether voluntary or involuntary and regardless of the nature or method thereof
  (other than an exchange, reclassification or other conversion of the Restricted
  Securities into cash, securities or other property pursuant to a merger, consolidation
  or recapitalization of the Company) (each, a “Transfer”) during the
  one (1)-year period following the Closing Date or otherwise except in accordance
  with this Agreement and applicable federal and state securities laws and regulations.
  In addition, the Purchaser and the Purchaser’s sole stockholder, Sharad
  Tak, agree that the shares of capital stock of the Purchaser may not be Transferred
  to persons other than immediately family members of Sharad Tak without the prior
  written consent of the Company, and that the Purchaser may not issue any additional
  equity securities, as long as the Transfer restrictions on the Restricted Securities
  set forth in this Agreement remain in effect. In the event of a Transfer of
  shares of capital stock of the Purchaser, the transferee shall execute an addendum
  to this Agreement and such shares shall be similarly bound by the provisions
  of this Agreement. The Purchaser and Sharad Tak agree that the stock certificate(s)
  representing the shares of capital stock of the Purchaser shall be imprinted
  with a legend referencing this Agreement and the restrictions imposed hereby.

   

ARTICLE
  II. 

RESTRICTIONS
  ON SALE TRANSACTIONS 

     2.1
  Transfer Restrictions. Notwithstanding the prohibition on Transfers provided
  in Section 1.1, and subject to Sections 2.2 and 2.3 hereof, the Purchaser may
  make Transfers of Restricted Securities in an aggregate amount equal to up to
  25% of each of the Purchased Shares, Purchased Warrants and Warrant Shares;
  provided, that in the event of such a Transfer, and in the event such a Transfer

   

 

is not conducted
  pursuant to an effective registration statement under the Securities Act of
  1933, as amended, the Purchaser shall provide to the Company assurances reasonably
  satisfactory to the Company (including an opinion of counsel as referenced in
  Section 2.3) that the Purchaser would not be deemed an “underwriter”
  engaged in a “distribution of securities” (as those terms are commonly
  used under the Securities Act of 1933 (as defined in Section 2.3)) as a result
  of effecting such a Transfer (or related series of Transfers); and provided
  further, that notwithstanding anything contained in this Agreement, under no
  circumstances may the First Warrant be Transferred at any time without the Company’s
  prior written consent.

   

     2.2
  Company’s Right of First Refusal. From and after the first anniversary
  of the Closing Date, and until such time as Purchaser together with any of Purchaser’s
  Affiliates owns less than 10% of the Common Stock calculated on a fully-diluted
  basis (including all outstanding shares of Common Stock and all outstanding
  securities of any type that are or may become exercisable for or convertible
  into shares of Common Stock (a “Fully-Diluted Basis”)) (the “Minimum
  Ownership Interest”), the Purchaser will be subject to the following restrictions:

   

          a.
  Right of First Refusal.

   

	 	          (i)
        In the event of a proposed Transfer by the Purchaser of Restricted Securities
        wherein a single buyer in such transaction would, together with its Affiliates
        (a “Private Buyer”), upon consummation beneficially own 1,000,000
        or more shares of Common Stock (including both outstanding shares of Common
        Stock and any rights to purchase shares of Common Stock, whether through
        the exercise of the Purchase Warrants or otherwise), the Purchaser must
        first give notice to the Company (the “Transfer Notice”) which
        shall include (i) the name and address of the proposed Private Buyer,
        (ii) the number of Restricted Securities proposed to be Transferred (the
        “Offered Securities”), (iii) the proposed purchase price
        thereof (the “Purchase Price”), including the type of consideration,
        and (iv) all other material terms and conditions of such offer, including
        the date upon which the Purchaser and the proposed Private Buyer reasonably
        expect to complete the Transfer (the “Proposed Sale Date”).

         

	 	          (ii)
        Upon written notice (a “Company Notice”) to the Purchaser within
        fifteen (15) Business Days (as defined below) of the Company’s receipt
        of a Transfer Notice, the Company or its designee shall have the right
        to purchase all (but not less than all) of the Offered Securities on the
        same terms and conditions set forth in the Transfer Notice and at the
        price set forth in the Transfer Notice. The Company Notice shall constitute
        an irrevocable commitment to purchase from the Purchaser the Offered Securities
        on such terms and conditions. The purchase of the Offered Securities described
        in this Section 2.2(a) must be consummated by the Company or its designee
        before the later of (1) fifteen (15) Business Days following receipt of
        the Transfer Notice by the Company and (2) the Proposed Sale Date; provided
        that in the event (and only in the event) that a non-cash payment
        is being made for the Offered Securities, and the value of the purchase
        price has not yet been established, the closing of the purchase of the
        Offered Securities under this Section 2.2(a) shall occur immediately following
        determination of such purchase price, which determination shall be made
        as set forth in Section 2.2(b). If the Company (or its designee) exercises
        its rights pursuant to this Section 2.2(a), then any cash payment for
        the Offered Securities shall be effected by check or wire transfer against
        delivery of the Offered Securities to be purchased at the time of the
        closing of the purchase.

         

2

 

	 	          (iii)
        For purposes of this Agreement, “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 Texas generally are
        authorized or required by law or other government actions to close.

         

          b.
  Valuation of Property. If the Purchase Price specified in the Transfer
  Notice is wholly or partially payable through delivery of a promissory note,
  then the Company or its designee may effect payment in the same fashion. If
  the Purchase Price specified in the Transfer Notice is payable in property other
  than cash or indebtedness, the Company or its designee shall have the right
  to pay the Purchase Price in the form of cash equal in amount to the value of
  such property. If the Purchaser and the Company (or its designee) cannot agree
  on such cash value within fifteen (15) Business Days after the Company’s
  receipt of the Transfer Notice, the valuation shall be made by an appraiser
  of recognized standing selected by the Purchaser and the Company or, if they
  cannot agree on such an appraiser within ten (10) calendar days thereafter,
  each shall select an appraiser of recognized standing, and the two appraisers
  shall promptly designate a third appraiser of recognized standing, whose appraisal
  shall be determinative of such value. The cost of such appraisal shall be shared
  equally by the Purchaser and the Company (or its designee). If the time for
  the closing of the Company’s (or its designee’s) purchase has expired
  but for the determination of the value of the Purchase Price offered by the
  prospective transferee(s), then such closing shall be held on or prior to the
  fifth Business Day after such valuation shall have been made pursuant to this
  subsection.

   

          c.
  Purchaser’s Right to Sell if Option Not Exercised. If the rights
  granted to the Company pursuant to this Section 2.2 are waived, or the
  Company (or its designee) fails to exercise such rights, then the Purchaser
  shall have the right to effect the Transfer until the later of (1) sixty (60)
  days from the date of delivery of the Transfer Notice or (2) the Proposed Sale
  Date, of all of the Offered Securities to the Private Buyer specified in the
  Transfer Notice at a price no less than the Purchase Price and on terms no more
  favorable to the Private Buyer than specified in the Transfer Notice.

   

     2.3
  Transfer Restrictions Generally.

   

          a.
  If the Purchaser should decide to Transfer the Restricted Securities held by
  it, the Purchaser understands and agrees that it generally may do so only pursuant
  to an effective registration statement under the Securities Act of 1933, as
  amended (“Securities Act”), to the Company or pursuant to an available
  exemption from the registration requirements of the Securities Act or Rule 144
  promulgated under the Securities Act (“Rule 144”) or any other available
  exemption from the Securities Act. In connection with any Transfer of any Restricted
  Securities other than pursuant to an effective registration statement or to
  the Company, the Company may require the transferor thereof to provide to the
  Company a written opinion of counsel experienced in the area of United States
  securities laws selected by the transferor, the form and substance of which
  opinion shall be customary for opinions of counsel in comparable transactions
  and reasonably acceptable to the Company, to the effect that such Transfer does
  not require registration of such

   

3

 

transferred
  securities under the Securities Act; provided, however, that if
  the Restricted Securities may be sold pursuant to Rule 144(k), no written opinion
  of counsel shall be required from the Purchaser if the Purchaser provides reasonable
  assurances that such security can be sold pursuant to Rule 144(k). Subject to
  compliance with the other terms of this Agreement, if the Purchaser provides
  the Company with an opinion of counsel, the form and substance of which opinion
  shall be customary for opinions of counsel in comparable transactions and reasonably
  acceptable to the Company, to the effect that the Transfer of the Restricted
  Securities may be made without registration under the Securities Act, or the
  Purchaser provides the Company with reasonable assurances that the Restricted
  Securities can be sold pursuant to Rule 144, the Company shall permit the Transfer,
  and, in the case of Common Stock, promptly instruct its transfer agent to issue
  one or more certificates in such name and in such denominations as specified
  by the Purchaser and without any restrictive legend. Notwithstanding the foregoing
  or anything else contained herein to the contrary, the Restricted Securities
  may be pledged as collateral in connection with a bona fide margin account or
  other lending arrangement.

   

          b.
  The Purchaser agrees to the imprinting, so long as is required by this Section
  2.3(b), of the following legend, or a similar legend to the same effect, on
  the Restricted Securities:

   

	 	THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
        ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES
        LAWS OF ANY STATE. ACCORDINGLY, THE SHARES MAY NOT BE OFFERED, SOLD, TRANSFERRED,
        PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
        STATEMENT UNDER THE SECURITIES ACT OR IN A TRANSACTION NOT SUBJECT TO
        THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AS DETERMINED PURSUANT
        TO AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE CORPORATION THAT
        THE PROPOSED TRANSACTION WILL BE EXEMPT FROM REGISTRATION.

         

          The
  Restricted Securities shall not contain the legend set forth above (i) if in
  the written opinion of counsel to the Company experienced in the area of United
  States securities laws such legend is not necessary given the applicable requirements
  of the Securities Act (including judicial interpretations and pronouncements
  issued by the staff of the Commission) or (ii) if such Restricted Securities
  may be sold pursuant to Rule 144(k). The Company agrees that it will provide
  the Purchaser, upon request, with a certificate or certificates representing
  shares of Common Stock, free from such legend at such time as such legend is
  no longer required hereunder. If such certificate or certificates had previously
  been issued with such a legend or any other legend, the Company shall, at its
  own expense, upon request and upon the delivery of the legended certificate(s),
  reissue such certificate or certificates free of any legend.

   

     2.4
  Application of Agreement Following Transfers. Notwithstanding any other
  provision of this Agreement, the Purchaser may Transfer the Restricted Securities
  to an affiliate (as such term is defined in Rule 405 promulgated under the Securities
  Act, an “Affiliate”) at any time without compliance with Sections
  2.1 or 2.2, provided, that such Affiliate shall execute an addendum to
  this Agreement

   

4

 

and shall
  be bound by all of the terms of this Agreement to the same extent as the Purchaser.
  In the event of a Transfer of Restricted Securities in accordance with the terms
  of this Agreement to a party that is not an Affiliate of the Purchaser, such
  Restricted Securities shall no longer be subject to the restrictions set forth
  in this Agreement and the transferee shall not otherwise be a party to, or have
  any of the rights or obligations hereunder.

   

ARTICLE
  III. 

SPECIAL
  CONSENT RIGHTS 

     3.1
  Special Consent Rights. Throughout the period ending on the earlier of
  (a) the second anniversary of the date of registration of the Purchased Shares
  and the Warrant Shares pursuant to the Registration Rights Agreement, and (b)
  the date on which the Purchaser together with the Purchaser’s Affiliates
  shall own in the aggregate neither (i) the Minimum Ownership Interest, nor (ii)
  seventy-five percent (75%) or more of the combined number of shares of Common
  Stock (x) purchased by the Purchaser pursuant to the Stock Purchase Agreement,
  (y) subject to purchase pursuant to the Purchased Warrants from time to time
  prior to the Expiration Date of each Purchased Warrant, and (z) issued pursuant
  to exercise of the Purchased Warrants from time to time, the Company shall not
  consummate any of the following without the prior written consent of the Purchaser:

   

          a.
  any sale by the Company of a substantial portion of its assets or stock, or
  any consolidation or merger of the Company with another entity, or any material
  acquisition of or by the Company;

   

          b.
  any transaction in which operational, managerial or voting control of the Company
  is transferred;

   

          c.
  the creation of any equity or convertible debt security senior to the Common
  Stock;

   

          d.
  repurchase or redeem any shares of the Company’s Series A Convertible Preferred
  Stock;

   

          e.
  enter into a new line of business or effect a material change in the nature
  of the Company’s business; or

   

          f.
  enter into, or permit any Subsidiary to enter into, any contract, agreement,
  understanding or arrangement relating to activities conducted by the Company
  or its affiliates outside of the United States, such approval not to be unreasonably
  withheld if permitting the Company or a Subsidiary (as applicable) to do so
  is in the best interests of the Company and its shareholders.

   

5

 

ARTICLE
  IV. 

OTHER AGREEMENTS

     4.1
  Financial Statements and Other Information. If at any time, the Company
  is not subject to Section 13 or 15(d) of the Exchange Act, and for so long as
  the Purchaser and the Purchaser’s Affiliates beneficially own in the aggregate
  not less than the Minimum Ownership Interest, the Company shall deliver to the
  Purchaser, in form and substance satisfactory to the Purchaser:

   

          a.
  as soon as available, but not later than ninety (90) days after the end of each
  fiscal year of the Company, a copy of the audited consolidated balance sheet
  of the Company and its Subsidiaries as of the end of such fiscal year and the
  related statements of operations and cash flows for such fiscal year, setting
  forth in each case in comparative form the figures for the previous year, all
  in reasonable detail and accompanied by a management summary and analysis of
  the operations of the Company for such fiscal year and by the opinion of a reputable
  independent certified public accounting firm which report shall state without
  qualification that such financial statements present fairly the financial condition
  as of such date and results of operations and cash flows for the periods indicated
  in conformity with GAAP applied on a consistent basis;

   

          b.
  as soon as available, but in any event not later than forty-five (45) days after
  the end of each of the first three fiscal quarters of each fiscal year, the
  unaudited consolidated balance sheet of the Company and its Subsidiaries, and
  the related statements of operations and cash flows for such quarter and for
  the period commencing on the first day of the fiscal year and ending on the
  last day of such quarter, all certified by an appropriate officer of the Company
  as presenting fairly the consolidated financial condition as of such date and
  results of operations and cash flows for the periods indicated in conformity
  with GAAP applied on a consistent basis, subject to normal year-end adjustments
  and the absence of footnotes required by GAAP; and

   

          c.
  such other information of the type that would satisfy Rule 144A(d)(4)(i).

   

     4.2
  Books and Records. The Company shall keep proper books of record and
  account, in which full and correct entries shall be made of all financial transactions
  and the assets and business of the Company and its Subsidiaries in accordance
  with GAAP consistently applied.

   

     4.3
  Inspection. As long as the Purchaser and the Purchaser’s Affiliates
  hold in the aggregate not less than the Minimum Ownership Interest, the Company
  shall permit representatives of the Purchaser to visit and inspect any of its
  properties and make copies of the Company’s corporate and financial records,
  and to discuss its affairs, finances and accounts with its directors and officers,
  all at such reasonable times during normal business hours and as often as may
  be reasonably requested upon reasonable advance notice to the Company. Prior
  to exercising rights under this Section, any Person conducting such visit or
  inspection shall be required to enter into a confidentiality agreement with
  the Company.

   

     4.4
  Board Representation. a. Immediately prior to the Closing, the Board
  of Directors of the Company will be comprised of no more than seven members,
  and immediately after the Closing, the Board will be comprised of no more than
  nine members. The Company agrees that for so long as the Purchaser together
  with the Purchaser’s Affiliates owns the Minimum Ownership Interest, the
  Board will be comprised

   

6

 

of no less
  than three and no more than twelve directors. Immediately after the Closing,
  the Company shall fill two newly established seats on its Board of Directors
  with two persons designated by the Purchaser, which designees shall initially
  be Barry Reisig and another designee reasonably acceptable to the Company (the
  “Purchaser Designees”). The Purchaser Designees shall serve in accordance
  with the Articles of Incorporation and the Bylaws until the next succeeding
  annual meeting of shareholders of the Company to be held after such election
  for the purpose of electing directors.

   

          b.
  As long as the Purchaser together with the Purchaser’s Affiliates shall
  own in the aggregate, as of the last date upon which shareholder proposals must
  be submitted to the Company for inclusion in the Company’s proxy statement
  relating to the election of directors, not less than the lesser of (i) twenty-five
  percent (25%) of the Common Stock on a Fully-Diluted Basis or (ii) seventy-five
  percent (75%) or more of the combined number of shares of Common Stock (x) purchased
  by the Purchaser pursuant to the Stock Purchase Agreement, (y) subject to purchase
  pursuant to the Purchased Warrants from time to time prior to the Expiration
  Date of each Purchased Warrant, and (z) issued pursuant to exercise of the Purchased
  Warrants from time to time, the Purchaser shall be entitled to designate to
  the Board of Directors the Purchaser Designees to serve as two of the directors
  of the Company; provided, however that if the total number of directors of the
  Company is fixed at greater than nine, then the Purchaser shall be entitled
  to designate to the Board of Directors a third Purchaser Designee to serve as
  a director of the Company. As long as the Purchaser and the Purchaser’s
  Affiliates own in the aggregate not less than the Minimum Ownership Interest
  as of the last date upon which shareholder proposals must be submitted to the
  Company for inclusion in the Company’s proxy statement relating to the
  election of directors, the Purchaser shall be entitled to designate to the Board
  of Directors a single Purchaser Designee to serve as one of the directors of
  the Company. Provided that such Purchaser Designee(s) meet the criteria for
  board nomination set forth in the Company’s Nominating Committee Charter,
  the Company shall cause such Purchaser Designee(s) to be included in the slate
  of nominees recommended by the Board of Directors to the Company’s shareholders
  for election as directors, and the Company shall use its reasonable best efforts
  to cause the election of such Purchaser Designee(s), including using its reasonably
  best efforts to cause officers of the Company who hold proxies (unless otherwise
  directed by the shareholder submitting such proxy) to vote such proxies in favor
  of the election of such Purchaser Designee(s), unless the Board of Directors
  determines in good faith, with the written advice of outside counsel, that it
  would be inconsistent with its fiduciary duties to take such actions. As long
  as the Purchaser and the Purchaser’s Affiliates continue to own in the
  aggregate not less than the applicable foregoing percentages of Common Stock,
  and in the event that a Purchaser Designee(s) shall cease to serve as a director
  for any reason, the Company shall use its reasonable best efforts to cause any
  vacancy resulting thereby to be filled by another designee of the Purchaser.

   

          c.
  Notwithstanding anything to the contrary contained in this Agreement, the Company
  shall provide such reimbursement and compensation to the Purchaser Designees
  as is consistent with the reimbursement and compensation provided to the non-employee
  members of the Board of Directors.

   

7

 

          d.
  As long as the Purchaser and the Purchaser’s Affiliates own in the aggregate
  not less than the Minimum Ownership Interest, the Purchaser shall have the right
  to designate one observer, who shall initially be Sharad Tak, who shall have
  the right to attend all regular, special and telephonic meetings of the Board
  of Directors, except to the extent that such attendance would negate any attorney-client
  privilege.

   

     4.5
  Offering Notice; Rights of First Offer; Exercise; Closing. a. Except
  for (i) Common Stock or options to acquire Common Stock issued pursuant to any
  Company Plan or issued to employees, directors or officers of, or consultants
  to, the Company or any of its Subsidiaries pursuant to any compensatory plan,
  agreement or arrangement approved by the Board of Directors or the Compensation
  Committee, (ii) a subdivision of the outstanding shares of Common Stock into
  a larger or smaller number of shares of Common Stock, (iii) capital stock issued
  upon exercise, conversion or exchange of any security convertible into shares
  of Common Stock issued and outstanding on the date of this Agreement or issued
  in connection with the Stock Purchase Agreement (including the Warrants), and
  (iv) capital stock or securities convertible into capital stock of the Company
  issued in consideration of or otherwise relating to an acquisition of any Person,
  approved by the Board of Directors, by the Company of another Person ((i)-(iv)
  being referred to collectively as “Exempt Issuances”), and subject
  to any right of first offer existing on the date of this Agreement, during the
  eighteen-month period immediately following the Closing Date, if the Company
  wishes to issue any capital stock or any other securities convertible into or
  exchangeable for capital stock of the Company (collectively, “New Securities”)
  to any Person (the “Third Party Offeree”), then the Company shall
  offer such New Securities first to the Purchaser by sending written notice (the
  “New Issuance Notice”) to the Purchaser, which New Issuance Notice
  shall state (x) the number of New Securities proposed to be issued and (y) the
  proposed purchase price, or mechanism for determining the proposed purchase
  price, per security of the New Securities (as calculated, the “Proposed
  Price”). Upon delivery of the New Issuance Notice, such offer shall be
  irrevocable unless and until the rights provided for in Section 4.5(b) shall
  have been waived or shall have expired.

   

          b.
  For a period of five (5) Business Days after the giving of a New Issuance Notice,
  the Purchaser shall have the right to purchase up to fifty percent (50%) of
  the New Securities less the amount of New Securities purchased by holders of
  rights of first offer existing on the date of this Agreement at a purchase price
  equal to the Proposed Price and upon the same terms and conditions set forth
  in the New Issuance Notice. The Purchaser may transfer all or any portion of
  its rights pursuant to this Section 4.5 to any Affiliate of the Purchaser.

   

          c.
  The right of the Purchaser to purchase the New Securities under subsection (b)
  above shall be exercisable by delivering written notice of the exercise thereof,
  prior to the expiration of the five Business Day period referred to in subsection
  (b) above, to the Company, which notice shall state the amount of New Securities
  that the Purchaser elects to purchase pursuant to Section 4.5(b). The failure
  of the Purchaser to respond within such five Business Day period shall be deemed
  to be a waiver of the Purchaser’s rights under Section 4.5(b), provided
  that the Purchaser may waive its rights under Section 4.5(b) prior to the expiration
  of such five Business Day period by giving written notice to the Company.

   

          d.
  The closing of the purchase of New Securities subscribed for by the Purchaser
  under this Section 4.5 shall be held at the executive office of the Company
  at 11:00 a.m., local time, on the date of the closing of the sale to the Third
  Party Offeree if the Purchaser elect to purchase any of the New Securities under
  this Section 4.5, or at such other time and place as the parties to the transaction
  may

   

8

 

agree. At
  such closing, such New Securities shall be issued free and clear of all Liens
  (other than those arising hereunder or under the Transaction Documents and those
  attributable to actions by the purchaser thereof) and the Company shall so represent
  and warrant, and further represent and warrant that such New Securities shall
  be, upon issuance thereof to the Purchaser and after payment therefor, duly
  authorized, validly issued, fully paid and non-assessable. The Company shall
  deliver certificates representing the New Securities no later than five (5)
  Business Days after such closing. The Purchaser shall deliver at the closing
  payment in full in immediately available funds for the New Securities purchased
  by it. At such closing, all of the parties to the transaction shall execute
  such additional documents as are otherwise necessary or appropriate. Nothing
  in this Section 4.5 shall prevent or delay the Company from consummating the
  closing of the issuance and sale of the New Securities to any Third Party Offeree;
  provided that the Company complies with its obligations under this Section 4.5.

   

ARTICLE
  V. 

GENERAL
  PROVISIONS 

     5.1
  Entire Agreement. This Agreement, together with the other Transaction
  Documents, contains the entire understanding of the parties with respect to
  the subject matter hereof and supersedes all prior agreements and understandings,
  oral or written, with respect to such matters.

   

     5.2
  Notices. Any notices, consents, waivers or other communications required
  or permitted to be given under the terms of this Agreement must be in writing
  and will be deemed to have been delivered (i) upon receipt, when delivered personally;
  (ii) upon receipt, when sent by facsimile, provided confirmation of transmission
  is mechanically or electronically generated and kept on file by the sending
  party (if received by 5:00 p.m. eastern time (“ET”) where such notice
  is received) or the first business day following such delivery (if received
  after 5:00 p.m. ET where such notice is received); or (iii) one business day
  after deposit with a nationally recognized overnight delivery service, in each
  case properly addressed to the party to receive the same. The addresses and
  facsimile numbers for such communications shall be:

   

          If
  to the Company:

   

	 	Healthaxis
        Inc. 

        7301 North State Hwy 161

        Suite 300 

        Irving, Texas 75039 

        Telephone: (972) 443-5000 

        Facsimile: (972) 556-0572 Attention: J. Brent Webb, Esq., General Counsel

         

9

 

          With
  a copy to:

   

	 	Locke
        Liddell & Sapp LLP 

        2200 Ross Avenue, Suite 2200 

        Dallas, Texas 75201-6776 

        Telephone: (214) 740-8000 

        Facsimile: (214) 756-8675 

        Attention: John B. McKnight, Esq.

         

          If
  to the Purchaser to:

   

	 	Tak
        Investments, Inc. 

        400 Professional Drive, Suite 420 

        Gaithersburg, Maryland 20879 

        Attention: Sharad Tak

         

          With
  a copy to:

   

	 	Pillsbury Winthrop Shaw
        Pittman LLP 

        1650 Tysons Boulevard 

        Suite 1400 

        McLean, Virginia 22102 

        Attention: Steven L. Meltzer, Esq. 

        Telecopy: (703) 770-7901

         

Each party
  shall provide written notice to the other party of any change in address or
  facsimile number in accordance with the provisions hereof.

   

     5.3
  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 the Purchaser, or, in the case of a waiver, by the party
  against whom enforcement of any such waiver 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.

   

     5.4
  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.

   

     5.5
  References. References herein to Sections are to Sections of this Agreement,
  unless otherwise expressly provided.

   

     5.6
  Successors and Assigns. This Agreement shall be binding upon and inure
  to the benefit of the parties and their successors and permitted assigns. Neither
  the Company nor the Purchaser may assign this Agreement or any rights or obligations
  hereunder without the prior written consent of each of the parties hereto.

   

     5.7
  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.

   

10

 

     5.8
  Governing Law and Forum. The corporate laws of the Commonwealth of Pennsylvania
  shall govern all issues concerning the relative rights of the Company and the
  Purchaser as its shareholder. All questions concerning the construction, validity,
  enforcement and interpretation of this Agreement shall be governed by and construed
  in accordance with the internal laws of the State of Texas without regard to
  the principles of conflicts of law thereof. Any dispute, difference, controversy
  or claim arising in connection with or related or incidental to a matter arising
  under this Agreement shall be finally settled using the arbitration provisions
  set forth in Section 10.8 of the Purchase Agreement.

   

     5.9
  Counterparts. This Agreement may be executed in two or more counterparts,
  all of which when taken together shall be considered one and the same agreement
  and shall become effective when counterparts have been signed by each party
  and delivered to the other party, it being understood that both parties need
  not sign the same counterpart. 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 page were an original
  thereof.

   

     5.10
  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.

   

     5.11
  Remedies. In addition to being entitled to exercise all rights provided
  herein or granted by law, including recovery of damages, each party hereto will
  be entitled to specific performance of the obligations hereunder without the
  showing of economic loss and without any bond or other security being required.
  Each of the Company and the Purchaser agree that monetary damages would not
  be adequate compensation for any loss incurred by reason of any breach of its
  obligations described in the foregoing sentence and hereby agree to waive in
  any action for specific performance of any such obligation the defense that
  a remedy at law would be adequate.

   

     5.12
  Payment Set Aside. To the extent that the Company makes a payment or
  payments to the Purchaser hereunder or pursuant to the Transaction Documents
  or the Purchaser enforces or exercises the Purchaser’s rights hereunder
  or thereunder, and such payment or payments or the proceeds of such enforcement
  or exercise or any part thereof are subsequently invalidated, declared fraudulent
  or preferential, set aside, recovered from, disgorged by or are required to
  be refunded, repaid or otherwise restored to the Company, a trustee, receiver
  or any other Person under any law (including, without limitation, any bankruptcy
  law, state or federal law, common law or equitable cause of action), then to
  the extent of any such restoration the obligation or part thereof originally
  intended to be satisfied shall be revived and continued in full force and effect
  as if such payment had not been made or such enforcement or setoff had not occurred.

   

11

 

     5.13
  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.

   

     5.14
  Automatic Adjustments. In the event that the number of shares of Common
  Stock is changed into a different number of shares of any class or classes of
  stock, whether by subdivision, split, recapitalization, reclassification, exchange,
  substitution of otherwise, all references herein to numbers of shares of Common
  Stock (or Restricted Securities) and per share prices of stock shall be appropriately
  adjusted.

   

[Remainder
  of Page Intentionally Left Blank] 

12

 

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

   

	 	HEALTHAXIS
      INC.
	 	 	 
	 	By:	/s/ James
      W. McLane
	 	 	 

	 	Name: 	James
      W. McLane
	 	Title: 	Chief
      Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	TAK
      INVESTMENTS, INC.
	 	 	 
	 	By:	/s/ Sharad Tak
	 	 	 

	 	Name:	Sharad Tak
	 	 	 

	 	Title:	President
	 	 	 

     The
  undersigned sole stockholder of the Purchaser does hereby acknowledge the receipt
  of certain benefits derived from the promises and covenants of the Company owed
  to the Purchaser under this Agreement, and does hereby agree to be bound by
  the terms of Section 1.1 of this Agreement.

   

	 	/s/ Sharad Tak
	 	

	 	Sharad
      Tak

13

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