Document:

Untitled Document

Exhibit
  10.8 

SECOND
AMENDMENT 
TO 
CHANGE IN CONTROL EMPLOYMENT AGREEMENT 

     This
Second Amendment to Change in Control Employment  Agreement (this “Amendment”)
is made and entered into by and between Healthaxis,  Ltd., a  Texas limited partnership (“Healthaxis”),
and James W. McLane (the “Executive”), to be effective as of the 13th day of
May, 2005.
 

     WHEREAS,
Healthaxis  and  Executive  are  parties to that  certain  Change in  Control  Employment
Agreement  dated as of January 1, 2002 (the  “Agreement”),  as amended
pursuant to that certain  First  Amendment to Change in Control  Employment  Agreement
dated as of  January 1,  2003 (the “First  Amendment”),  which sets forth,
among other things,  the terms and  conditions  pursuant to which  Healthaxis or its
successor  will continue to employ the  Executive and/or the amount of certain payments
that would be made to the Executive upon certain events following a Change in Control;
 

     WHEREAS,
the parties desire to further amend the Agreement as provided herein; and
 

     WHEREAS,
except as otherwise defined herein, all capitalized terms used in this Amendment shall
have the meaning specified in the Agreement.
 

     NOW,
THEREFORE,  for and in  consideration of the mutual  covenants and agreements  contained
herein and in the Agreement,  and other good and  valuable consideration, the receipt and
sufficiency of which are hereby acknowledged and confessed, Healthaxis and Executive do
hereby agree as follows:
 

          1.
Change in Control. The parties acknowledge and agree that a “Change in Control” has
occurred under the terms of the Agreement as a result of the consummation of the
transactions contemplated by that certain Stock and Warrant Purchase Agreement dated
February 23, 2005 by and between Healthaxis and Tak Investments, Inc. (the “Purchase
Agreement”). As a result, the “Effective Date” referenced in the
Agreement shall be the date of this Amendment and the “Employment Period” referenced
in the Agreement shall henceforth commence.
 

          2.
Annual Base Salary. Notwithstanding the relevant terms of Section 3(b)(i) of the
Agreement, the parties do hereby agree that from the Effective Date through June 30,
2005 Executive shall receive an Annual Base Salary of $250,000. Further, the parties
agree that commencing July 1, 2005 Executive shall be entitled to receive an Annual
Base Salary of $225,000, until thereafter adjusted in accordance with the terms of the
Agreement or as the parties may otherwise agree. In no event will Executive’s
Annual Base Salary be less than $200,000 while Executive is serving as Chairman and CEO
or as Chairman only, unless a lesser amount is mutually agreed to by Healthaxis and
the Executive. The parties do hereby agree that the amendment to Section 3(b)(i) of
the Agreement contained in the First Amendment is cancelled and the terms contained in
the First Amendment shall be of no further effect.
 

 

          3.
Location. Notwithstanding the terms of Section 3(a)(i)(B) of the Agreement, it is
understood and agreed that Executive’s services for the benefit of Healthaxis
shall primarily be performed by Executive from his office in Philadelphia,
Pennsylvania, commencing effective May 1, 2005.
 

          4.
Position and Duties. Notwithstanding the terms of Section 3(a)(i)(A) of the
Agreement, the parties agree that at a mutually agreeable time or times during the
Employment Period, Executive’s duties and responsibilities as Chief Executive
Officer of Healthaxis shall decrease and that Executive shall cease to serve as the
Chief Executive Officer of Healthaxis, and at some mutually agreed upon subsequent date,
Executive shall cease to serve as Chairman (which the parties mutually agree shall be
no later than December 31, 2006). The parties acknowledge and agree that upon each
such diminution in the duties and responsibilities of Executive that there shall
be a corresponding and mutually agreeable decrease in the compensation to be paid
to Executive under the Agreement, subject to Section 2 above. Notwithstanding the
terms of Section 2 of the Agreement, upon such date as the Executive is no longer
serving as Chief Executive Officer or Chairman, his “Employment Period” shall
terminate. Notwithstanding anything contained in Section 4(c)(i) of the Agreement,
the parties agree that any such mutually agreed reduction of Executive’s Chief
Executive Officer or Chairman duties or responsibilities shall not constitute a “Good
Reason” for Executive’s termination of employment with Healthaxis. Further,
as a result of the consummation of the transactions contemplated by the Purchase
Agreement, Executive acknowledges that he may be required to travel on Healthaxis
business to India and the Virginia/Washington D.C. area more than has been the case in
the past, and Executive agrees that Healthaxis’ requirement that the Executive
engage in such travel shall not constitute grounds for Executive’s termination of
employment with “Good Reason” under Section 4(c)(iii) of the Agreement.
 

          5.
Elimination of Executive’s Unilateral Termination Period. The Agreement is
hereby amended by deleting the final sentence of Section 4(c) of the Agreement
entitling the Executive to terminate his employment with Healthaxis for any reason
during the 30-day period immediately following the first anniversary of the Effective
Date.
 

          6.
Severance Payments. Section 5(a)(i)(B) of the Agreement is hereby amended to
provide that the Executive shall be entitled thereunder to a lump sum payment equal
to the sum of “(x) 1.5 times the Executive’s Annual Base Salary and (y) the
Executive’s Target Bonus” (rather than the current language in the
Agreement providing that the Executive shall be entitled thereunder to a lump sum
payment of 2 times the Executive’s Annual Base Salary and the Executive’s
Target Bonus).
 

          7.
Cash Payment;Vesting of Options; Additional Grant. In consideration of Executive’s
foregoing agreement to the amendments to the Agreement and the other covenants and
agreements contained herein, Healthaxis does hereby agree (a) to pay Executive a lump
sum payment of $10,000 in cash within five (5) business days of the closing of the
transactions contemplated by the Purchase Agreement (subject to applicable tax
withholding requirements), (b) that all outstanding stock options awarded by
Healthaxis or its affiliates to the Executive prior to the date of this Amendment
shall become 100% vested and the related stock 
 

 

options
  shall become fully exercisable, and (c) simultaneously with the closing of the
  transactions contemplated by the Purchase Agreement, the Executive shall be
  granted an additional 75,000 stock options under the Healthaxis Inc. 2000 Stock
  Option Plan, which additional options shall have an exercise price equal to
  the market price of Healthaxis common stock on the date of the grant. Of these
  stock options so granted, 25% shall vest on the date of grant, and an additional
  25% shall vest on each of the following three anniversary dates of the date
  of grant; provided, that such options shall be subject to (A) the otherwise
  applicable accelerated vesting and extended exercise provisions of Section 5(a)(ii)
  of the Agreement and (B) upon such date as the Executive ceases to serve as
  Chairman as mutually agreed pursuant to Section 4 hereto, accelerated 100% vesting
  and an extended thirty-six (36) month exercisability period (as measured from
  the date of termination of Executive as Chairman of Healthaxis). Healthaxis
  and the Executive agree to take such further actions as shall be necessary to
  document the foregoing agreement relating to the vesting of stock options and
  additional option grant.

   

     Except
as expressly amended as provided herein, the Agreement shall continue in full force and
effect in accordance with its terms.
 

     EXECUTED
  by the parties to be effective as of the date set forth hereinabove.

  

	HEALTHAXIS:
      	EXECUTIVE:
	 	 	 
	Healthaxis,
      Ltd.	 
	 	 	/s/ James W. McLane
	 	 	 

	By:	Healthaxis Managing
      Partner, LLC,

      General Partner 	James W. McLane
	 	 	 
	By:	/s/ John Carradine	 
	 	 
	 
	 	John Carradine	 
	 	Vice President and TreasurerUntitled Document

Exhibit
  10.9 

SECOND
AMENDMENT 
TO 
CHANGE IN CONTROL EMPLOYMENT AGREEMENT 

     This
Second  Amendment to Change in Control  Employment  Agreement (this  “Amendment”)
is made and entered  into by and  between  Healthaxis,  Ltd.,  a Texas  limited
partnership  (“Healthaxis”),  and John Carradine (the  “Executive”),
to be  effective as of the 13th day of May, 2005.
 

     WHEREAS,
Healthaxis and Executive are parties to that certain Change in  Control  Employment
Agreement  dated as of  January 1, 2002 (the  “Agreement”),  as  amended
pursuant to that certain  First  Amendment to Change in Control  Employment  Agreement
dated as of January 1,  2003,  which sets forth,  among other things,  the  terms
and conditions  pursuant to which Healthaxis or its successor will continue to  employ
the  Executive  and/or the amount of certain  payments  that would be made to  the
Executive upon certain events following a Change in Control;
 

     WHEREAS,
the parties  desire to further amend the Agreement as provided  herein; and
 

     WHEREAS,
except as otherwise defined herein, all capitalized terms used  in this Amendment shall
have the meaning specified in the Agreement.
 

     NOW,
THEREFORE,  for and in  consideration  of the mutual covenants and  agreements  contained
herein  and in the  Agreement,  and other  good and  valuable  consideration,  the
receipt and  sufficiency  of which are hereby  acknowledged  and  confessed, Healthaxis
and Executive do hereby agree as follows:
 

          1.
Change in Control. The parties acknowledge and agree that a “Change in Control” has
occurred under the terms of the Agreement as a result of the consummation of the
transactions contemplated by that certain Stock and Warrant Purchase Agreement dated
February 23, 2005 by and between Healthaxis and Tak Investments, Inc. (the “Purchase
Agreement”). As a result, the “Effective Date” referenced in the
Agreement shall be the date of this Amendment and the “Employment Period” referenced
in the Agreement shall henceforth commence.
 

          2.
New Travel Responsibilities. As a result of the consummation of the
transactions contemplated by the Purchase Agreement, Executive acknowledges that he
may be required to travel on Healthaxis business to India and the Virginia/Washington
D.C. area more than has been the case in the past, and Executive agrees that
Healthaxis’ requirement that the Executive engage in such travel shall not
constitute grounds for Executive’s termination of employment with “Good
Reason” under Section 4(c)(iii) of the Agreement. Notwithstanding the
foregoing, the Executive shall continue to be based at the Healthaxis office
provided for in Section 3(a)(i)(B) of the Agreement.
 

 

          3.
Elimination of Executive’s Unilateral Termination Period. The Agreement is
hereby amended by deleting the final sentence of Section 4(c) of the Agreement
entitling the Executive to terminate his employment with Healthaxis for any
reason during the 30-day period immediately following the first anniversary of the
Effective Date.
 

          4.
Cash Payment;Vesting of Options; Additional Grant. In consideration of Executive’s
foregoing agreement to the amendments to the Agreement and the other covenants and
agreements contained herein, Healthaxis does hereby agree (a) to pay Executive a
lump sum payment of $10,000 in cash within five (5) business days of the closing of
the transactions contemplated by the Purchase Agreement (subject to applicable tax
withholding requirements), (b) that all outstanding stock options awarded by
Healthaxis or its affiliates to the Executive prior to the date of this Amendment
shall become 100% vested and the related stock options shall become fully
exercisable, and (c) simultaneously with the closing of the transactions
contemplated by the Purchase Agreement, the Executive shall be granted an
additional 60,000 stock options under the Healthaxis Inc. 2000 Stock Option Plan, which
additional options shall have an exercise price equal to the market price of
Healthaxis common stock on the date of the grant. Of these stock options so
granted, 25% shall vest on the date of grant, and an additional 25% shall vest on
each of the following three anniversary dates of the date of grant; provided, that
such options shall be subject to the otherwise applicable accelerated vesting and
extended exercise provisions of Section 5(a)(ii) of the Agreement. Healthaxis and the
Executive agree to take such further actions as shall be necessary to document the
foregoing agreement relating to the vesting of stock options and additional option
grant.
 

     Except
as expressly  amended as provided  herein,  the  Agreement  shall  continue in full force
and effect in accordance with its terms.
 

     EXECUTED
  by the parties to be effective as of the date set forth hereinabove.

  

	HEALTHAXIS:
      	EXECUTIVE:
	 	 	 
	Healthaxis,
      Ltd.	 
	 	 	/s/
      John Carradine
	 	 	
      

	By:	Healthaxis Managing
      Partner, LLC,

      General Partner 	John Carradine
	 	 	 
	By:	/s/
      James. W. McLane 	 
	 	
      
	 
	 	James W. McLane	 
	 	President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00085-of-00352.parquet"}]]