Document:

Untitled Document

Exhibit
  10.2

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) ARE 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 - 01
    	 	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”), and the Company is entitled to
  require that the Holder purchase at any time from the date of issuance and on
  or before the Expiration Date, up to 3,333,333 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; Company Put Rights.

  

          (a)
  Subject to the terms and conditions set forth herein, the Holder shall have
  the right, at the Holder’s option, to exercise this Warrant, in whole or
  in part, up to an aggregate of 2,222,222 shares of Common Stock, 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; or (C) a combination of such methods.

  

          (b)
  Upon receipt of the required deliveries, 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)
  Subject to the terms and conditions otherwise set forth herein, the Company
  shall have the right, at its option, to compel the exercise of this Warrant,
  in whole or in part and from time to time:

  

               (i)
  with respect to not more than 2,222,222 shares of Common Stock, at any time
  during the period commencing six months after the Issue Date and ending on the
  Expiration Date if, and only if:

  

                    (A)
  at the time of the exercise of this Warrant, there are no actions, suits, proceedings,
  claims, complaints, disputes, arbitrations or investigations (collectively,
  “Litigation”) pending or, to the knowledge of the Company or any of
  its subsidiaries, threatened, at law, in equity, in arbitration or before any
  governmental authority against the Company or any of its subsidiaries, such
  that a loss contingency in excess of $1,000,000 is required or could reasonably
  be anticipated to be required (provided, that any such amount shall be exclusive
  of any amounts reasonably expected to be paid by any insurance company on the
  Company’s or any Company subsidiary’s behalf);

  

                    (B)
  the Company shall use the proceeds of such compelled exercise of this Warrant
  pursuant to this Section 1(c)(i) exclusively to effectuate, in whole or in part,
  in whole or in part, an acquisition of another entity or for another business
  purpose (in either case, a “Permitted Business Purpose”), in either
  case as approved by the Board of Directors of the Company;

  

                    (C)
  at the time of the exercise of this Warrant, the Company is not the subject
  of, and has not been the subject of, any voluntary or involuntary bankruptcy,
  receivership or other insolvency proceedings and has not entered into an assignment
  or other arrangement for the benefits of its creditors; and

  

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                    (D)
  the Board of Directors of the Company, including the director designee(s) of
  the initial Holder (to the extent any such designee(s) serve on the Board of
  Directors at the time of the consideration of the Permitted Business Purpose
  by the Board of Directors), unanimously agrees to compel the exercise of this
  Warrant;

  

               (ii)
  with respect to not more than an additional 1,111,111 shares of Common Stock,
  at any time during the period commencing on the Issue Date and ending on the
  Expiration Date if, and only if:

  

                    (A)
  at the time of the exercise of this Warrant, there is no Litigation pending
  or, to the knowledge of the Company or any of its subsidiaries, threatened,
  at law, in equity, in arbitration or before any governmental authority against
  the Company or any of its subsidiaries, such that a loss contingency in excess
  of $1,000,000 is required or could reasonably be anticipated to be required
  (provided, that any such amount shall be exclusive of any amounts reasonably
  expected to be paid by any insurance company on the Company’s or any Company
  subsidiary’s behalf);

  

                    (B)
  the Company shall use the proceeds of such compelled exercise of this Warrant
  pursuant to this Section 1(c)(ii) exclusively to effectuate, in whole or in
  part, a Permitted Business Purpose as approved by the Board of Directors;

  

                    (C)
  at the time of the exercise of this Warrant, the Company is not the subject
  of, and has not been the subject of, any voluntary or involuntary bankruptcy,
  receivership or other insolvency proceedings and has not entered into an assignment
  or other arrangement for the benefits of its creditors; and

  

                    (D)
  the Board of Directors of the Company, including the director designee(s) of
  the initial Holder (to the extent any such designee(s) serve on the Board of
  Directors at the time of the consideration of the Permitted Business Purpose
  by the Board of Directors), unanimously agrees to compel the exercise of this
  Warrant.

  

In the event
  of the Company’s election to exercise all or a portion of its rights pursuant
  to this Section 1(c), the Holder shall deliver, within 5 business days of its
  receipt of the notice specified above, to the Company the Exercise Price, the
  Warrant, such documentation with respect to the establishment of an exemption
  from registration under federal and state securities laws for the issuance of
  shares of Common Stock to Holder, and the Company shall promptly thereafter
  deliver to the Holder the shares of Common Stock with respect to which this
  Warrant is exercised. The Company shall, as promptly as practicable and no later
  than three (3) business days after receipt of the Exercise Price, 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. Such shares of Common Stock shall be deemed to be issued
  on the Exercise Date. At the option of 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 that purpose; (B) by certified
  or official bank check payable to the order of the Company; or (C) a combination
  of such methods.

  

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     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).

  

          (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

  

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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 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.

  

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          (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 subject to the provisions of the Investor Rights Agreement, and that this
  Warrant and the shares issuable upon exercise of the Warrant and the holders
  thereof shall be entitled to all rights and benefits accorded thereto and subject
  to all the restrictions and obligations imposed thereon in the Investor Rights
  Agreement.

  

     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 $2.25 per share of Common Stock, subject to adjustment
  as provided herein.

  

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          “Expiration
  Date” shall mean 5:00 p.m., Dallas, Texas time, on the second anniversary
  of the effective date of registration pursuant to the Securities Act of the
  shares of Common Stock issued or issuable upon exercise of this Warrant.

  

          “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.

  

     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.

  

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     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.

  

     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.

  

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     IN
  WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly
  authorized officers 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. 2005-1 issued on May 13, 2005, hereby elects to purchase _____________
  shares of common stock of Healthaxis Inc. covered by the Warrant described herein.

  

Dated: _________________
  

  

	 	 	 
	 	 	 
	 	Signature:   	 
	  	 	 

	 	Address:
      	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

10Untitled Document

Exhibit
  10.3

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
      - 02	 	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 the Company’s
  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 first
  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 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 $3.00 per share for
  twenty (20) trading days during any consecutive thirty (30) trading day period,
  and (iii) the Company’s annual sales growth rate for the fiscal year 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 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)

        

2

 

	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 be the average closing price of one share of
  Common Stock in the most

  

4

 

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 $2.70 per share of Common Stock, subject to adjustment
  as provided herein.

  

          “Expiration
  Date” shall mean 5:00 p.m., Dallas, Texas time, on the third 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

8

 

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. 2005-2 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:
      	 
	 	 	

	 	 	 
	 	 	

	 	 	 
	 	 	

9

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