Document:

Untitled Document

Exhibit
  10.6

REGISTRATION
  RIGHTS AGREEMENT

          This
  Registration Rights Agreement (this “Agreement”) is
  made and entered into as of May 13, 2005, among Healthaxis Inc., a Pennsylvania
  corporation (the “Company”), and Tak Investments, Inc.
  a Delaware corporation (the “Holder”).

  

          This
  Agreement is made pursuant to the Stock and Warrant Purchase Agreement, dated
  as of February 23, 2005 among the Company and the Holder (the “Purchase
  Agreement”).

  

          The
  Company and the Holder hereby agree as follows:

  

     1.
  Definitions

  

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

  

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

  

          “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.

  

          “Closing
  Date” means the Closing Date, as defined
  in the Purchase Agreement.

  

          “Commission”
  means the Securities and Exchange Commission.

  

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

  

          “Effectiveness
  Date” means the earlier of: (i) ten days
  after the Company has received notice (written or oral) from the Commission
  that the Commission’s staff will not be reviewing the Registration Statement
  or has no further comments on the Registration Statement or (ii) 120 days following
  the Filing Date.

  

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

  

          “Exchange
  Act” means the Securities Exchange Act of
  1934, as amended.

  

Registration
  Rights Agreement

  

 

          “Filing
  Date” means the date on which the Initial
  Registration Statement is filed with the Commission, which shall be as soon
  as practicable after the Closing Date, but in no event later than the 30th Business
  Day following the Closing Date.

  

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

  

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

  

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

  

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

  

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

  

          “Majority
  Holders” means the Holders of at least sixty
  (60%) percent of the then outstanding Registrable Securities (as calculated
  on an as-converted or as-exercised basis).

  

          “Nasdaq”
  means The Nasdaq Stock Market.

  

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

  

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

  

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

  

          “Registrable
  Securities” means: (i) the Purchased Shares
  and the Warrant Shares and (ii) any shares of the Company’s capital stock
  issued with respect to the Securities as a result of any stock split, stock
  dividend, recapitalization, exchange or similar event or otherwise; provided,
  that, a security shall cease to be a Registrable Security upon (A) such security
  becoming eligible for sale by the Holders pursuant to Rule 144(k) and (B) the
  Holder of such security is not deemed to be an Affiliate under Rule 144(k) as
  determined by the mutual written Agreement of the Company and such Holder, as
  set forth in Section 2(a).

  

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

  

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  Rights Agreement

  

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

  

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

  

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

  

          “Securities”
  means the Purchased Shares and the Purchased Warrants granted to the Holders
  under the Purchase Agreement.

  

          “Securities
  Act” means the Securities Act of 1933, as
  amended.

  

          “Special
  Counsel” means one special counsel to the
  Holders, as identified by the Majority Holders.

  

     2.
  Registration Requirements 

  

          (a)
  Filing and Effectiveness Obligations. On or prior to the Filing Date,
  the Company shall prepare and file with the Commission a Registration Statement
  (the “Initial Registration Statement”)
  which shall cover all Registrable Securities for an offering to be made on a
  continuous basis pursuant to a “shelf” registration statement under
  Rule 415. The Initial Registration Statement shall be on Form S-3 or any successor
  form (except if the Company is not then eligible to register the Registrable
  Securities for resale on Form S-3, in which case such registration shall be
  on another appropriate form reasonably acceptable to the Majority Holders).
  The Company shall: (i) not permit any securities other than the Registrable
  Securities to be included in the Initial Registration Statement (except pursuant
  to the exercise of other registration rights outstanding on the date of this
  Agreement), (ii) use its best efforts to cause the Initial Registration Statement
  to be declared effective under the Securities Act as promptly as possible after
  the Filing Date, but in any event on or prior to the Effectiveness Date, and
  (iii) keep such Initial Registration Statement continuously effective under
  the Securities Act (subject to Section 3(r)) for a period that will terminate
  upon the date on which all Registrable Securities covered by such Registration
  Statement that are held by a Holder may be sold pursuant to Rule 144(k)
  and such Holder is not deemed to be an Affiliate under Rule 144(k), as
  determined by the mutual written agreement of the Company and such Holder (it
  being understood that the Company and a Holder may reach such a mutual agreement
  with respect to less than all of the Registrable Securities held by such Holder,
  and in such event the Company’s registration obligations with respect thereto
  shall cease) (the “Effectiveness Period”).
  Once the Company is no longer required to keep the Initial Registration Statement
  effective with respect to all or a portion of the Registrable Securities of
  a given Holder, the Company shall have no further obligations hereunder with
  respect to the registration for resale of such shares of Registrable Securities
  and such shares shall no longer be deemed “Registrable Securities”
  hereunder.

  

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  Rights Agreement

  

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          (b)
  Piggyback Registrations. Except as otherwise provided in this Section 2(b),
  if at any time the Company decides to prepare and file with the Commission a
  Registration Statement relating to an underwritten public offering for its own
  account or the account of others under the Securities Act of any of its equity
  securities, other than on Form S-4 or Form S-8 (each as promulgated under the
  Securities Act) or their then-equivalent forms relating to equity securities
  to be issued in connection with any acquisition of any entity or business or
  equity securities issuable in connection with stock option or other employee
  benefit plans, the Company shall send to each Holder of Registrable Securities
  written notice of such decision and, if within ten (10) days after receipt of
  such notice, any such Holder shall so request in writing (which request shall
  specify the Registrable Securities intended to be disposed of by the Holders),
  the Company will use reasonable best efforts to effect the registration under
  the Securities Act of all Registrable Securities which the Company has been
  so requested to register by such Holder in connection with such underwritten
  public offering; provided, however, that if at any time after
  giving written notice of its intention to register any securities and prior
  to the effective date of the Registration Statement filed in connection with
  such registration, the Company shall decide for any reason not to register or
  to delay registration of such securities, the Company may, at its election,
  give written notice of such decision to such Holder and, thereupon: (i) in the
  case of a determination not to register, shall be relieved of its obligation
  to register any Registrable Securities in connection with such registration
  (but not from its obligation to pay expenses in accordance with Section 4 hereof)
  and (ii) in the case of a determination to delay registering, shall be permitted
  to delay registering any Registrable Securities being registered pursuant to
  this Section 2(b) for the same period as the delay in registering such other
  securities. The Company shall include in such registration statement all or
  any part of such Registrable Securities that such Holder requests to be registered;
  provided, however, that the Company shall not be required to register
  any Registrable Securities pursuant to this Section 2(b) that are eligible for
  sale pursuant to Rule 144(k) of the Securities Act, as determined by the mutual
  written agreement of the Company and such Holder (it being understood that the
  Company and a Holder may reach such a mutual agreement with respect to less
  than all of the Registrable Securities held by such Holder, and in such event
  the Company’s registration obligations with respect thereto shall cease).
  Notwithstanding any other provision of this Section 2(b), in the case of an
  underwritten public offering, if the managing underwriter reasonably determines
  that marketing factors require a limitation on the number of shares to be offered,
  the underwriter may (subject to the allocation priority set forth below) exclude
  from such Registration Statement up to all of the securities which would otherwise
  be offered by persons other than the Company for the Company’s own account.
  The Company shall so advise all holders of securities requesting registration
  of any limitations on the number of shares to be offered and the number of shares
  of securities that are to be excluded from registration. Securities to be excluded
  from registration shall be determined in the following order of priority: first
  to be excluded, the securities held by any person not having contractual piggyback
  registration rights; second to be excluded, securities held by any person having
  contractual piggyback registration rights pursuant to an agreement other than
  either the Rights Agreement dated as of November 13, 1998 by and between the
  Company and America Online, Inc. or this Agreement; third to be excluded, Registrable
  Securities of the Holders, reduced pro rata among such Holders (based upon the
  number of Registrable Securities requested to be included in the registration);
  and last to be excluded, securities held by any person having contractual piggyback
  registration rights pursuant to the Rights Agreement dated as of Novermber 13,
  1998 by and between the Company and America Online, Inc.

  

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  Rights Agreement

  

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          (c)
  Form S-3 Eligibility. The Company represents and warrants that, as of
  the date hereof, it meets the registrant eligibility and transaction requirements
  for the use of Form S-3 (for secondary offerings) for the registration of the
  sale of Registrable Securities by the Holders and the Company shall file all
  reports required to be filed by the Company with the Commission in a timely
  manner so as to maintain such eligibility for the use of Form S-3.

  

     3.
  Registration Procedures. In connection with the Company’s registration
  obligations hereunder, the Company shall:

  

          (a)
  Preparation of Registration Statement. Prepare and file with the Commission
  on or prior to the Filing Date a Registration Statement on Form S-3 or its successor
  form (or if the Company is not then eligible to register for resale the Registrable
  Securities on Form S-3, such registration shall be on another appropriate form
  in accordance herewith, which shall include a Plan of Distribution substantially
  in the form of Exhibit A annexed hereto, unless in connection with a
  Piggyback Registration), or such other form agreed to by the Company and by
  the Majority Holders, and cause the Registration Statement to become effective
  and remain effective as provided herein; provided, however, that
  not less than five (5) Business Days prior to the filing of the Registration
  Statement or any related Prospectus or any amendment or supplement thereto,
  the Company shall, if reasonably practicable: (i) furnish to the Holders, their
  Special Counsel and any managing underwriters, copies of all such documents
  proposed to be filed, which documents will be subject to the review of such
  Holders, their Special Counsel and such managing underwriters and (ii) cause
  its officers and directors, counsel and independent certified public accountants
  to respond to such inquiries as shall be necessary, in the reasonable opinion
  of respective counsel to such Holders and such underwriters, to conduct a reasonable
  investigation within the meaning of the Securities Act. The Company shall not
  file the Registration Statement or any such Prospectus or any amendments or
  supplements thereto to which the Majority Holders, their Special Counsel or
  any managing underwriters shall reasonably object, and will not request acceleration
  of such Registration Statement without prior notice to such counsel. The sections
  of such Registration Statement covering information with respect to the Holders,
  the Holder’s beneficial ownership of securities of the Company or the Holders
  intended method of disposition of Registrable Securities shall conform to the
  information provided to the Company by each of the Holders.

  

          (b)
  Amendments. (i) Prepare and file with the Commission any amendments,
  including post-effective amendments, to the Registration Statement as may be
  necessary to keep the Registration Statement continuously effective for the
  Effectiveness Period and prepare and file with the Commission such additional
  Registration Statements as are required to be filed hereunder in order to register
  all of the Registrable Securities for resale under the Securities Act, (ii)
  cause the related Prospectus to be amended or supplemented by any required Prospectus
  supplement, and as so amended or supplemented to be filed pursuant to Rule 424
  (or any similar provisions then in force) promulgated under the Securities Act,
  (iii) respond as promptly as possible to any comments received from the Commission
  with respect to the Registration Statement or any amendment thereto and as promptly
  as practicable, but in no event later than ten (10) Business Days, (iv) provide
  the Holders true and complete copies of all correspondence to and from the Commission
  relating to the Registration Statement and (v) comply in all material respects
  with the provisions of the Securities Act and the Exchange Act with

  

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  Rights Agreement

  

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respect to
  the disposition of all of the Registrable Securities covered by the Registration
  Statement during the applicable period in accordance with the intended methods
  of disposition by the Holders thereof set forth in the Registration Statement
  as so amended or in such Prospectus as so supplemented.

  

          (c)
  Notifications. Notify the Holders of Registrable Securities to be sold,
  their Special Counsel and any managing underwriters as promptly as possible
  (and, in the case of (i)(A) below, not less than two (2) days prior to such
  filing and, in the case of (i)(C) below, not later than the second Business
  Day after effectiveness) and, if requested by any such Person, confirm such
  notice in writing no later than two (2) Business Days following the day: (i)
  (A) when a Prospectus or any Prospectus supplement or post-effective amendment
  to the Registration Statement is proposed to be filed, (B) when the Commission
  notifies the Company whether there will be a “review” of such Registration
  Statement and whenever the Commission comments in writing on such Registration
  Statement and (C) with respect to the Registration Statement or any post-effective
  amendment, when the same has become effective, (ii) of any request by the Commission
  or any other Federal or state governmental authority for amendments or supplements
  to the Registration Statement or Prospectus or for additional information, (iii)
  of the Commission’s issuance of any stop order suspending the effectiveness
  of the Registration Statement covering any or all of the Registrable Securities
  or the initiation of any Proceeding for that purpose, (iv) that any of the representations
  and warranties of the Company contained in this Agreement ceases to be true
  and correct in all material respects, (v) of the Company’s receipt of any
  notification with respect to the suspension of the qualification or exemption
  from qualification of any of the Registrable Securities for sale in any jurisdiction,
  or the initiation or threatening of any Proceeding for such purpose, (vi) of
  the occurrence of any event that makes any statement made in the Registration
  Statement or Prospectus or any document incorporated or deemed to be incorporated
  therein by reference untrue in any material respect or that requires any revisions
  to the Registration Statement, Prospectus or other documents so that, in the
  case of the Registration Statement or the Prospectus, as the case may be, it
  will not contain any untrue statement of a material fact or omit to state any
  material fact required to be stated therein or necessary to make the statements
  therein, in light of the circumstances under which they were made, not misleading
  and (vii) the beginning and end of a black-out period pursuant to Section 3(r).

  

          (d)
  Suspensions. Use its best efforts to avoid the issuance of, or, if issued,
  obtain the withdrawal of: (i) any order suspending the effectiveness of the
  Registration Statement or (ii) any suspension of the qualification (or exemption
  from qualification) of any of the Registrable Securities for sale in any jurisdiction,
  at the earliest practicable moment.

  

          (e)
  Supplements and Post-Effective Amendments. If requested by any managing
  underwriter or the Holders of a majority in interest of the Registrable Securities
  to be offered under a Registration Statement: (i) promptly incorporate in a
  Prospectus supplement or post-effective amendment to the Registration Statement,
  such information as the Company reasonably agrees should be included therein
  and (ii) make all required filings of such Prospectus supplement or such post-effective
  amendment as soon as practicable after the Company has received notification
  of the matters to be incorporated in such Prospectus supplement or post-effective
  amendment; provided, however, that the Company shall not be required
  to take any action pursuant to this Section 3(e) that would, in the written
  opinion of counsel for the Company (addressed to counsel to the Holders), violate
  applicable law.

  

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  Rights Agreement

  

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          (f)
  Copies of Registration Statement. Furnish to each Holder, their Special
  Counsel and any managing underwriters, without charge, at least one conformed
  copy of each Registration Statement and each amendment thereto, including financial
  statements and schedules, all documents incorporated or deemed to be incorporated
  therein by reference and all exhibits to the extent requested by such Person
  (including those previously furnished or incorporated by reference) promptly
  after the filing of such documents with the Commission.

  

          (g)
  Copies of Prospectus. Promptly deliver to each Holder, their Special
  Counsel and any managing underwriters, without charge, as many copies of the
  Prospectus or Prospectuses (including each form of prospectus) and each amendment
  or supplement thereto as such Persons may reasonably request; and the Company
  hereby consents to the use of such Prospectus and each amendment or supplement
  thereto by each of the selling Holders and any underwriters in connection with
  the offering and sale of the Registrable Securities covered by such Prospectus
  and any amendment or supplement thereto.

  

          (h)
  Blue Sky. Prior to any public offering of Registrable Securities, use
  its best efforts to register or qualify or cooperate with the selling Holders,
  any underwriters and their Special Counsel in connection with the registration
  or qualification (or exemption from such registration or qualification) of such
  Registrable Securities for offer and sale under the securities or Blue Sky laws
  of such jurisdictions within the United States as any Holder or underwriter
  requests in writing, to keep each such registration or qualification (or exemption
  therefrom) effective during the Effectiveness Period and to do any and all other
  acts or things necessary or advisable to enable the disposition in such jurisdictions
  of the Registrable Securities covered by a Registration Statement; provided,
  however, that the Company shall not be required to qualify generally
  to do business in any jurisdiction where it is not then so qualified or to take
  any action that would subject it to general service of process in any such jurisdiction
  where it is not then so subject or subject the Company to any material tax in
  any such jurisdiction where it is not then so subject.

  

          (i)
  Certificates. Cooperate with the Holders and any managing underwriters
  to (A) facilitate the timely preparation and delivery of certificates representing
  Registrable Securities sold pursuant to a Registration Statement, and such certificates
  shall be free, to the extent permitted by applicable law and the Investor Rights
  Agreement, of all restrictive legends, and (B) enable such Registrable Securities
  to be in such denominations and registered in such names as any such managing
  underwriters or Holders may request.

  

          (j)
  Supplements and Amendments. Upon the occurrence of any event contemplated
  by Section 3(c)(vi), as promptly as possible, prepare a supplement or amendment,
  including a post-effective amendment, to the Registration Statement or a supplement
  to the related Prospectus or any document incorporated or deemed to be incorporated
  therein by reference, and file any other required document so that, as thereafter
  delivered, neither the Registration Statement nor such Prospectus will contain
  any untrue statement of a material fact or omit to state a material fact required
  to be stated therein or necessary to make the statements therein, in light of
  the circumstances under which they were made, not misleading.

  

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  Rights Agreement

  

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          (k)
  Listing. Cause all Registrable Securities relating to such Registration
  Statement to be listed on Nasdaq or any other securities exchange, quotation
  system, market or over-the-counter bulletin board, if any, on which similar
  securities issued by the Company are then listed as and when required pursuant
  to the Purchase Agreement.

  

          (l)
  Underwriting Agreement and Related Documents. Enter into such agreements
  (including an underwriting agreement in form, scope and substance as is customary)
  and take all such other actions in connection therewith (including those reasonably
  requested by any managing underwriters and the Holders of a majority of the
  Registrable Securities being sold) in order to expedite or facilitate the disposition
  of such Registrable Securities, and whether or not an underwriting agreement
  is entered into: (i) make such representations and warranties to such Holders
  and such underwriters as are customarily made by issuers to underwriters in
  underwritten public offerings, and confirm the same if and when requested, (ii)
  in the case of an underwritten offering obtain and deliver copies thereof to
  the managing underwriters, if any, or in the case of non-underwritten offerings,
  if reasonably requested by the selling Holders, obtain and deliver copies thereof
  to such selling Holders, of opinions of counsel to the Company and updates thereof
  addressed to each such underwriter, in form, scope and substance reasonably
  satisfactory to any such managing underwriters and Special Counsel to the selling
  Holders covering the matters customarily covered in opinions requested in underwritten
  offerings and such other matters as may be reasonably requested by such Special
  Counsel and underwriters, (iii) immediately prior to the effectiveness of a
  Registration Statement, and, in the case of an underwritten offering, at the
  time of delivery of any Registrable Securities sold pursuant thereto, and, in
  the case of non-underwritten offerings, at such time as the selling Holders
  may reasonably request (and at the expense of the selling Holders), obtain and
  deliver copies to the Holders and the managing underwriters, if any, of “cold
  comfort” letters and updates thereof from the Company’s independent
  certified public accountants (and, if required, any other independent certified
  public accountants of any subsidiary of the Company or of any business acquired
  by the Company for which financial statements and financial data is, or is required
  to be, included in the Registration Statement), addressed to each of the underwriters,
  if any, in form and substance as are customary in connection with underwritten
  offerings, (iv) if an underwriting agreement is entered into, the same shall
  contain indemnification provisions and procedures no less favorable to the selling
  Holders and the underwriters, if any, than those set forth in Section 5 hereof
  (or such other provisions and procedures acceptable to the managing underwriters,
  if any, and the Holders of a majority of Registrable Securities participating
  in such offering) and (v) deliver such documents and certificates as may be
  reasonably requested by the Holders of a majority of the Registrable Securities
  being sold, their Special Counsel and any managing underwriters to evidence
  the continued validity of the representations and warranties made pursuant to
  clause (i) above and to evidence compliance with any customary conditions contained
  in the underwriting agreement or any other agreement entered into by the Company.

  

          (m)
  Due Diligence. Make available for inspection by the selling Holders,
  any representative of such Holders, any underwriter participating in any disposition
  of Registrable Securities and any attorney or accountant retained by such selling
  Holders or underwriters, at the offices where normally kept and during reasonable
  business hours, all financial and other records, pertinent corporate documents
  and properties of the Company and its subsidiaries, and cause the officers,
  directors, agents and employees of the Company and its subsidiaries to supply
  all information in

  

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  Rights Agreement

  

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each case
  reasonably requested by any such Holder, representative, underwriter, attorney
  or accountant in connection with the Registration Statement; provided,
  however, that if any information is determined in good faith by the Company
  (in writing) to be of a confidential nature at the time of delivery of such
  information, then prior to delivery of such information, the Company and the
  Holders shall enter into a confidentiality agreement reasonably acceptable to
  the Company and the Holders providing that such information shall be kept confidential,
  unless: (i) disclosure of such information is required by a court or administrative
  order or is necessary to respond to inquiries of regulatory authorities (provided,
  however, that the Company shall be given notice of any such pending disclosure
  so that the Company may seek a protective order), (ii) disclosure of such information,
  in the opinion of counsel to such Person, is required by law, (iii) such information
  becomes generally available to the public other than as a result of a disclosure
  or failure to safeguard by such Person or (iv) such information becomes available
  to such Person from a source other than the Company and such source is not known
  by such Person to be bound by a confidentiality agreement with the Company.

  

          (n)
  Earnings Statement. Comply in all material respects with all applicable
  rules and regulations of the Commission and make generally available to its
  security holders earning statements satisfying the provisions of Section 11(a)
  of the Securities Act and Rule 158 not later than 45 days after the end of any
  3-month period (or 90 days after the end of any 12-month period if such period
  is a fiscal year): (i) commencing at the end of any fiscal quarter in which
  Registrable Securities are sold to underwriters in a firm commitment or best
  efforts underwritten offering and (ii) if not sold to underwriters in such an
  offering, commencing on the first day of the first fiscal quarter of the Company
  after the effective date of the Registration Statement, which statements shall
  conform to the requirements of Rule 158.

  

          (o)
  Information. The Company may require each selling Holder to furnish to
  the Company information regarding such Holder and the distribution of such Registrable
  Securities as is required by law to be disclosed in the Registration Statement
  and the Company may exclude from such registration the Registrable Securities
  of any such Holder who unreasonably fails to furnish such information within
  a reasonable time after receiving such request.

  

          The
  Company shall hold in confidence and not make any disclosure of information
  concerning a Holder provided to the Company in connection with the preparation
  of the Registration Statement unless: (i) disclosure of such information is
  necessary to comply with federal or state securities laws, as determined in
  the opinion of legal counsel to the Company, (ii) the disclosure of such information
  is necessary to avoid or correct a misstatement or omission in any Registration
  Statement, (iii) the release of such information is ordered pursuant to a subpoena
  or other order from a court or governmental body of competent jurisdiction or
  (iv) such information has been made generally available to the public other
  than by disclosure in violation of this or any other agreement. The Company
  agrees that it shall, upon learning that disclosure of such information concerning
  a Holder is sought in or by a court or governmental body of competent jurisdiction
  or through other means, give prompt notice to such Holder prior to making such
  disclosure, and allow the Holder, at its expense, to undertake appropriate action
  to prevent disclosure of, or to obtain a protective order for, such information.

  

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  Rights Agreement

  

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          If
  the Registration Statement refers to any Holder by name or otherwise as the
  holder of any securities of the Company, then such Holder shall have the right
  to require (if such reference to such Holder by name or otherwise is not required
  by the Securities Act or any similar Federal statute then in force) the deletion
  of the reference to such Holder in any amendment or supplement to the Registration
  Statement filed or prepared subsequent to the time that such reference ceases
  to be required.

  

          Each
  Holder covenants and agrees that: (i) it will not sell any Registrable Securities
  under the Registration Statement until it has received copies of the Prospectus
  as then amended or supplemented as contemplated in Section 3(g) and notice from
  the Company or otherwise that such Registration Statement and any post-effective
  amendments thereto have become effective as contemplated by Section 3(c) and
  (ii) it and its officers, directors or Affiliates, if any, will comply with
  the prospectus delivery requirements of the Securities Act as applicable to
  them in connection with sales of Registrable Securities pursuant to the Registration
  Statement.

  

          Each
  Holder agrees by its acquisition of such Registrable Securities that, upon receipt
  of a notice from the Company of the occurrence of any event of the kind described
  in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v) or 3(c)(vi) such Holder will
  forthwith discontinue disposition of such Registrable Securities under the Registration
  Statement until such Holder’s receipt of the copies of the supplemented
  Prospectus and/or amended Registration Statement contemplated by Section 3(j),
  or until it is advised in writing by the Company that the use of the applicable
  Prospectus may be resumed, and, in either case, has received copies of any additional
  or supplemental filings that are incorporated or deemed to be incorporated by
  reference in such Prospectus or Registration Statement.

  

          (p)
  Responses to the Commission. The Company agrees to respond fully and
  completely to any and all comments on a Registration Statement received from
  the Commission staff as promptly as possible but, for non-underwritten offerings,
  in no event later than ten (10) Business Days of the receipt of such comments,
  regardless of whether such comments are in oral or written form.

  

          (q)
  Confirmation of Effectiveness. Within two (2) Business Days after a Registration
  Statement which covers applicable Registrable Securities is ordered effective
  by the Commission, the Company shall deliver, and shall cause legal counsel
  for the Company to deliver, to the transfer agent for such Registrable Securities
  (with copies to the Holders whose Registrable Securities are included in such
  Registration Statement) confirmation that such Registration Statement has been
  declared effective by the Commission.

  

          (r)
  Black-out Periods. The Company may by written notice require that the
  Holders immediately cease sales of Registrable Securities pursuant to a Registration
  Statement at any time that: (i) the Company becomes engaged in a business
  activity or negotiation which is not disclosed in a Registration Statement (or
  the prospectus included therein) which the Company reasonably believes must
  be disclosed therein under applicable law and which the Company desires to keep
  confidential for business purposes, (ii) the Company determines that a
  particular disclosure so determined to be required to be disclosed therein would
  be premature or would adversely affect the Company or its business or prospects
  or (iii) the Registration Statement can no longer be used under

  

Registration
  Rights Agreement

  

10

 

the
  existing rules and regulations promulgated under the Securities Act (each of
  (i), (ii) or (iii), a “Material Condition”).
  The Company shall not be required to disclose to the Holders which of the reasons
  specified in (i), (ii) or (iii) above is the basis for requiring a suspension
  of sales due to the occurrence of a Material Condition. The Company shall use
  its commercially reasonable best efforts to ensure that the use of the Registration
  Statement (and the prospectus included therein) may be resumed as soon as it
  is practicable.

  

     4.
  Registration Expenses

  

          All
  fees and expenses incident to the performance of or compliance with this Agreement
  by the Company shall be borne by the Company, whether or not pursuant to a Registration
  Statement and whether or not any Registration Statement is filed or becomes
  effective and whether or not any Registrable Securities are sold pursuant to
  such Registration Statement. The fees and expenses referred to in the foregoing
  sentence shall include, without limitation (a) all registration and filing fees
  (including, without limitation, reasonable fees and expenses (i) incurred with
  respect to filings required to be made with Nasdaq and each other securities
  exchange or market on which Registrable Securities are required hereunder to
  be listed and (ii) incurred in connection with compliance with state securities
  or Blue Sky laws (including, without limitation, reasonable fees and disbursements
  of counsel for the Holders in connection with Blue Sky qualifications of the
  Registrable Securities and determination of the eligibility of the Registrable
  Securities for investment under the laws of such jurisdictions as the managing
  underwriters, if any, or the Holders of a majority of Registrable Securities
  may designate)), (b) printing expenses (including, without limitation, expenses
  of printing certificates for Registrable Securities and of printing prospectuses
  if the printing of prospectuses is requested by the managing underwriters, if
  any, or by the Holders of a majority of the Registrable Securities included
  in the Registration Statement), (c) messenger, telephone and delivery expenses,
  (d) fees and disbursements of counsel for the Company, (e) Securities Act liability
  insurance, if the Company so desires such insurance, and (f) fees and expenses
  of all other Persons retained by the Company in connection with the consummation
  of the transactions contemplated by this Agreement (other than underwriting
  fees, discounts or commissions applicable to the sale of Registrable Securities).
  In addition, the Company shall be responsible for all of its internal expenses
  incurred in connection with the consummation of the transactions contemplated
  by this Agreement (including, without limitation, all salaries and expenses
  of its officers and employees performing legal or accounting duties), the expense
  of any annual audit, and the fees and expenses incurred in connection with the
  listing of the Registrable Securities on any securities exchange as required
  hereunder.

  

     5.
  Indemnification

  

          (a)
  Indemnification by the Company. The Company shall, notwithstanding any
  termination of this Agreement, indemnify and hold harmless each Holder and their
  respective Affiliates, and the officers, directors, agents (including any underwriters
  retained by such Holder in connection with the offer and sale of Registrable
  Securities), brokers (including brokers who offer and sell Registrable Securities
  as principal as a result of a pledge or any failure to perform under a margin
  call of Common Stock), investment advisors, employees, successors and assigns
  of each of them, to the fullest extent permitted by applicable law, from and
  against any and all joint or several losses, claims,

  

Registration
  Rights Agreement

  

11

 

damages,
  liabilities, costs (including, without limitation, costs of preparation and
  attorneys’ fees) and expenses (collectively, together with actions, proceedings
  or inquiries by any regulatory or self-regulatory organization, whether commenced
  or threatened, “Losses”), as incurred,
  arising out of or relating to: (i) any untrue or allegedly untrue statement
  of a material fact contained in the Registration Statement, any Prospectus,
  any form of prospectus or in any amendment or supplement thereto or in any preliminary
  Prospectus, or arising out of or relating to any omission or alleged omission
  of a material fact required to be stated therein or necessary to make the statements
  therein (in the case of any Prospectus or form of prospectus or supplement thereto,
  in light of the circumstances under which they were made) not misleading, except
  to the extent that any untrue statements or omissions are based solely upon
  and in conformity with information regarding such Holder furnished in writing
  to the Company by such Holder expressly for use therein, which information was
  reasonably relied upon by the Company for use therein or to the extent that
  such information relates to such Holder or such Holder’s proposed method
  of distribution of Registrable Securities and was reviewed and expressly approved
  in writing by such Holder expressly for use in the Registration Statement, such
  Prospectus or such form of prospectus or in any amendment or supplement thereto
  (provided that the Company amended any disclosure with respect to the method
  of distribution upon written notice from the Holders that such section of the
  Prospectus should be revised in any way), (ii) any violation or alleged violation
  by the Company or any of its Affiliates or agents of the Securities Act, the
  Exchange Act, any other law, including, without limitation, any state securities
  law or any rule or regulation thereunder relating to the offer or sale of Registrable
  Securities and (iii) any costs of enforcing the Company’s indemnification
  obligations under this Section 5(a). The Company shall not, however, be liable
  for any Losses to any Holder (a) with respect to any untrue or allegedly untrue
  statement of material fact or omission or alleged omission of material fact
  if such statement or omission was made in a preliminary Prospectus and such
  Holder did not provide the final Prospectus (or any amendment or supplement
  thereto) to the purchaser of the relevant securities at or prior to the confirmation
  of the sale of the Registrable Securities in any case where such delivery is
  required by the Securities Act, and the untrue or allegedly untrue statement
  of material fact or omission or alleged omission of material fact contained
  in such preliminary Prospectus was corrected in such final Prospectus (or any
  amendment or supplement thereto), unless the failure to deliver such final Prospectus
  (as amended or supplemented) was a result of noncompliance by the Company with
  Section 3(g) of this Agreement, or (b) in the event that notwithstanding the
  fact that the Company advised the Holder in writing pursuant to Section 3(r)
  hereof that sales of Registrable Securities cannot be made under a Registration
  Statement because of non-public Company developments that the Company reasonably
  believes must be disclosed in the Registration Statement under applicable law
  and which disclosure was not made (a “Non-Public Development”),
  the Holder nonetheless sells Registrable Securities and a judgment is entered
  by a court or administrative tribunal of competent jurisdiction against the
  Holder on the basis that the Registration Statement or Prospectus did not contain
  disclosure of the Non-Public Development or that the Holder sold such Registrable
  Securities while in the possession of the Non-Public Development, but only to
  the extent of such judgment.

  

          The
  Company shall promptly notify the Holders of the institution, threat or assertion
  of any Proceeding of which the Company is aware in connection with the transactions
  contemplated by this Agreement or the other Transaction Documents.

  

Registration
  Rights Agreement

  

12

 

          (b)
  Indemnification by Holders. Each Holder shall, severally and not jointly,
  indemnify and hold harmless the Company, and the directors, officers, agents
  and employees of the Company, to the fullest extent permitted by applicable
  law, from and against all Losses, as incurred, arising solely out of or based
  solely upon any untrue statement of a material fact contained in the Registration
  Statement, any Prospectus, or any form of prospectus or arising solely out of
  or based solely upon any omission of a material fact required to be stated therein
  or necessary to make the statements therein not misleading to the extent, but
  only to the extent, that such untrue statement or omission is contained in any
  information so furnished in writing by such Holder to the Company specifically
  for inclusion in the Registration Statement, any Prospectus or any form of prospectus
  and that such information was reasonably relied upon by the Company for use
  in the Registration Statement, such Prospectus or such form of prospectus or
  to the extent that such information relates to such Holder or such Holder’s
  proposed method of distribution of Registrable Securities and was reviewed and
  expressly approved in writing by such Holder expressly for use in the Registration
  Statement, such Prospectus or such form of prospectus; provided, however,
  that the indemnity agreement contained in this Section 5(b) shall not apply
  to amounts paid in settlement of any Losses if such settlement is effected without
  the prior written consent of such Holder, which consent shall not be unreasonably
  withheld; provided, further, that such Holder agrees its consent
  to any such settlement will not be unreasonably withheld if such Holder will
  not be liable for any payments or incur any out-of-pocket expenses with respect
  to such settlement. In no event shall the liability of any selling Holder hereunder
  be greater in amount than the dollar amount of the net proceeds received by
  such Holder upon the sale of the Registrable Securities giving rise to such
  indemnification obligation.

  

          (c)
  Conduct of Indemnification Proceedings. If any Proceeding shall be brought
  or asserted against any Person entitled to indemnity hereunder (an “Indemnified
  Party”), such Indemnified Party shall promptly
  notify the Person from whom indemnity is sought (the “Indemnifying
  Party”) in writing, and the Indemnifying
  Party shall assume the defense thereof, including the employment of counsel
  reasonably satisfactory to the Indemnified Party and the payment of all fees
  and expenses incurred in connection with defense thereof; provided, however,
  that the failure of any Indemnified Party to give such notice shall not relieve
  the Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
  except (and only) to the extent that it shall be finally determined by a court
  of competent jurisdiction (which determination is not subject to appeal or further
  review) that such failure shall have proximately and materially adversely prejudiced
  the Indemnifying Party.

  

          An
  Indemnified Party shall have the right to employ separate counsel in any such
  Proceeding and to participate in the defense thereof, but the fees and expenses
  of such counsel shall be at the expense of such Indemnified Party or Parties
  unless: (i) the Indemnifying Party has agreed in writing to pay such fees and
  expenses, (ii) the Indemnifying Party shall have failed promptly to assume the
  defense of such Proceeding and to employ counsel reasonably satisfactory to
  such Indemnified Party in any such Proceeding, (iii) the named parties to any
  such Proceeding (including any impleaded parties) include both such Indemnified
  Party and the Indemnifying Party, and the Indemnified Party shall have reasonably
  concluded on the advice of counsel that there are legal defenses available to
  it that are different from or additional to those available to the Indemnifying
  Party or (iv) the named parties to any such Proceeding (including any impleaded
  parties) include

  

Registration
  Rights Agreement

  

13

 

both such
  Indemnified Party and the Indemnifying Party, and such Indemnified Party shall
  have been advised by counsel that a conflict of interest is likely to exist
  if the same counsel were to represent such Indemnified Party and the Indemnifying
  Party (in which case, if such Indemnified Party notifies the Indemnifying Party
  in writing that it elects to employ separate counsel at the expense of the Indemnifying
  Party, the Indemnifying Party shall not have the right to assume the defense
  thereof and such counsel shall be at the reasonable expense of the Indemnifying
  Party). The Indemnifying Party shall not be liable for any settlement of any
  such Proceeding effected without its written consent, which consent shall not
  be unreasonably withheld. No Indemnifying Party shall, without the prior written
  consent of the Indemnified Party, effect any settlement of any pending Proceeding
  in respect of which any Indemnified Party is a party, unless such settlement
  includes an unconditional release of such Indemnified Party from all liability
  on claims that are the subject matter of such Proceeding.

  

          All
  fees and expenses of the Indemnified Party (including, but not limited to, reasonable
  fees and expenses to the extent incurred in connection with investigating or
  preparing to defend such Proceeding in a manner not inconsistent with this Section
  5(c)) shall be paid to the Indemnified Party, as incurred, within ten (10) Business
  Days of written notice thereof to the Indemnifying Party, which notice shall
  be delivered no more frequently than on a monthly basis, regardless of whether
  it is ultimately determined that an Indemnified Party is not entitled to indemnification
  hereunder; provided, however, that the Indemnifying Party may
  require such Indemnified Party to undertake to reimburse all such fees and expenses
  to the extent that there is a final judicial determination that such Indemnified
  Party is not entitled to indemnification hereunder.

  

          (d)
  Contribution. If a claim for indemnification under Section 5(a) or 5(b)
  hereof is unavailable to an Indemnified Party because of the failure or refusal
  of a court of competent jurisdiction to enforce such indemnification in accordance
  with its terms (by reason of public policy), then each Indemnifying Party, in
  lieu of indemnifying such Indemnified Party, shall contribute to the amount
  paid or payable by such Indemnified Party as a result of any Losses in such
  proportion as is appropriate to reflect the relative fault of the Indemnifying
  Party and such Indemnified Party in connection with the actions, statements
  or omissions that resulted in such Losses as well as any other relevant equitable
  considerations. The relative fault of such Indemnifying Party and Indemnified
  Party shall be determined by reference to, among other things, whether any action
  in question, including any untrue or allegedly untrue statement of a material
  fact or omission or alleged omission of a material fact, has been taken or made
  by, or relates to information supplied by, such Indemnifying Party or Indemnified
  Party, and the parties’ relative intent, knowledge, access to information
  and opportunity to correct or prevent such action, statement or omission. The
  amount paid or payable by a party as a result of any Losses shall be deemed
  to include, subject to the limitations set forth in Section 5(c) hereof, any
  reasonable attorneys’ or other reasonable fees or expenses incurred by
  such party in connection with (i) any Proceeding to the extent that such party
  would have been indemnified for such fees or expenses if the indemnification
  provided for in this Section 5 was available to such party in accordance with
  its terms and (ii) enforcing any rights under this Section 5. In no event shall
  any selling Holder be required to contribute an amount under this Section 5(d)
  in excess of the net proceeds received by such Holder upon sale of such Holder’s
  Registrable Securities pursuant to the Registration Statement giving rise to
  such contribution obligation.

  

Registration
  Rights Agreement

  

14

 

          The
  parties hereto agree that it would not be just and equitable if contribution
  pursuant to this Section 5(d) were determined by pro rata allocation or by any
  other method of allocation that does not take into account the equitable considerations
  referred to in the immediately preceding paragraph. No Person guilty of fraudulent
  misrepresentation (within the meaning of Section 11(f) of the Securities Act)
  shall be entitled to contribution from any Person who was not guilty of such
  fraudulent misrepresentation.

  

          The
  indemnity and contribution agreements contained in this Section 5 are in addition
  to any liability that the Indemnifying Parties may have to the Indemnified Parties.

  

     6.
  Miscellaneous

  

          (a)
  Remedies. In the event of a breach by the Company or by a Holder of any
  of their obligations under this Agreement, each Holder or the Company, as the
  case may be, in addition to being entitled to exercise all rights granted by
  law and under this Agreement, including recovery of damages, will be entitled
  to specific performance of its rights under this Agreement. The Company and
  each Holder agree that monetary damages would not provide adequate compensation
  for any losses incurred by reason of a breach by it of any of the provisions
  of this Agreement and hereby further agree that, in the event of any action
  for specific performance in respect of such breach it shall waive the defense
  that a remedy at law would be adequate.

  

          (b)
  No Inconsistent Agreements. Neither the Company nor any of its subsidiaries
  has, as of the date hereof, nor shall the Company or any of its subsidiaries,
  on or after the date of this Agreement, entered into any agreement with respect
  to its securities that is inconsistent with the rights granted to the Holders
  in this Agreement or otherwise conflicts with the provisions hereof, except
  to the extent that such inconsistencies have been eliminated by subsequent amendment
  or waiver of any such agreement. In furtherance and not in limitation of the
  foregoing, the Company agrees that from and after the date of this Agreement,
  the Company shall not, without the prior written consent of the Holders of a
  majority of the Registrable Securities, enter into any agreement with any holder
  or prospective holder of any securities of the Company that would allow such
  holder or prospective holder to include any of such securities in any registration
  filed under Section 2(b) hereof, unless under the terms of such agreement, such
  holder or prospective holder may include such securities in any such registration
  only to the extent that the inclusion of such securities will not reduce the
  amount of Registrable Securities of the Holders that are included in such registration.
  This Agreement 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.

  

          (c)
  Amendments and Waivers. The provisions of this Agreement, including the
  provisions of this sentence, may not be amended, modified or supplemented, and
  waivers or consents to departures from the provisions hereof may not be given,
  unless the same shall be in writing and signed by the Company and the Majority
  Holders; provided, however, that for the purposes of this sentence,
  Registrable Securities that are owned, directly or indirectly, by the Company
  or an Affiliate of the Company are not deemed outstanding. Notwithstanding the
  foregoing, a waiver or consent to depart from the provisions hereof with respect
  to a matter that relates exclusively to the rights of Holders and that does
  not directly or indirectly affect the rights of other

  

Registration
  Rights Agreement

  

15

 

Holders may
  be given by the Majority Holders to which such waiver or consent relates; provided,
  however, that the provisions of this sentence may not be amended, modified,
  or supplemented except in accordance with the provisions of the immediately
  preceding sentence. Any amendment or waiver effected in accordance with this
  Section shall be binding upon each Holder, each future Holder, and the Company.
  Upon effectiveness of each such amendment or waiver, the Company shall promptly
  give written notice thereof to the Holders who have not previously consented
  thereto in writing.

  

          (d)
  Notices. Any notices, consents, waivers or other communications required
  or permitted to be given hereunder shall be in writing and shall be deemed to
  have been received: (a) upon hand delivery (receipt acknowledged) or delivery
  by telecopy or facsimile (with transmission confirmation report) at the address
  or number designated below (if received by 5:00 p.m. eastern time where such
  notice is to be received) or the first Business Day following such delivery
  (if received after 5:00 p.m. eastern time where such notice is to be received)
  or (b) on the second Business Day following the date of mailing by express courier
  service, fully prepaid, addressed to such address or upon actual receipt of
  such mailing, whichever shall first occur. The addresses for such communications
  are:

  

          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.

        

          With
  a copy to (which copy shall not constitute notice):

  

	 	Locke
        Liddell & Sapp LLP 

        2200 Ross Avenue, Suite 2200 

        Dallas, Texas 75201 

        Telephone: 214-740-8000 

        Facsimile: 214-756-8675 

        Attention: John B. McKnight

        

          If
  to Purchaser to:

  

	 	Tak
        Investments, Inc. 

        400 Professional Drive, Suite 420 

        Gaithersburg, Maryland 20879

        Attention: Sharad Tak

        

Registration
  Rights Agreement

  

16

 

          With
  a copy,

             (which
  copy shall not constitute notice), to:

  

	 	Pillsbury Winthrop Shaw
        Pittman LLP 

        1650 Tysons Boulevard 

        Suite 1400 

        McLean, Virginia 22102 

        Attention: Steven L. Meltzer, Esq. 

        Facsimile: (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.

  

          (e)
  Successors and Assigns. This Agreement shall inure to the benefit of
  and be binding upon the successors and permitted assigns of each of the parties
  hereto and shall inure to the benefit of each Holder. The Company may not assign
  its rights or obligations hereunder without the prior written consent of the
  Majority Holders. The rights of each Holder hereunder, including the right to
  have the Company register Registrable Securities for resale in accordance with
  the terms of this Agreement, shall be assignable by each Holder if (i) the Holder
  agrees in writing with the transferee or assignee to assign such rights, and
  a copy of such agreement is furnished to the Company within a reasonable time
  after such assignment, (ii) the Company is, within a reasonable time after such
  transfer or assignment, furnished with written notice of (A) the name and address
  of such transferee or assignee and (B) the securities with respect to which
  such registration rights are being transferred or assigned, (iii) following
  such transfer or assignment, to the extent appropriate, the further disposition
  of such securities by the transferee or assignee is restricted under the Securities
  Act and applicable state securities laws and (iv) at or before the time the
  Company receives the written notice contemplated by clause (ii) of this Section,
  the transferee or assignee agrees in writing with the Company to be bound by
  all of the provisions of this Agreement. The rights to assignment shall apply
  to the Holders’ (and to subsequent) successors and assigns.

  

          (f)
  Counterparts. This Agreement may be executed in any number of counterparts,
  each of which when so executed shall be deemed to be an original and all of
  which taken together shall constitute one and the same agreement. In the event
  that any signature is delivered by facsimile transmission, such signature shall
  create a valid and binding obligation of the party executing (or on whose behalf
  such signature is executed) the same with the same force and effect as if such
  facsimile signature were the original thereof.

  

          (g)
  Governing Law and Forum. All questions concerning the construction, validity,
  enforcement and interpretation of this Agreement shall be governed by and construed
  in accordance with the laws of the State of Texas, without regard to principles
  of conflicts of law. 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.

  

Registration
  Rights Agreement

  

17

 

          (h)
  Cumulative Remedies. The remedies provided herein are cumulative and
  not exclusive of any remedies provided by law.

  

          (i)
  Severability. If any term, provision, covenant or restriction of this
  Agreement is held by a court of competent jurisdiction to be invalid, illegal,
  void or unenforceable, then the remainder of the terms, provisions, covenants
  and restrictions set forth herein shall remain in full force and effect and
  shall in no way be affected, impaired or invalidated and the parties hereto
  shall use their reasonable efforts to find and employ an alternative means to
  achieve the same or substantially the same result as that contemplated by such
  term, provision, covenant or restriction. It is hereby stipulated and declared
  to be the intention of the parties that they would have executed the remaining
  terms, provisions, covenants and restrictions without including any terms, provisions,
  covenants and restrictions that may be hereafter declared invalid, illegal,
  void or unenforceable.

  

          (j)
  Headings. The headings in this Agreement are for convenience of reference
  only and shall not limit or otherwise affect the meaning hereof.

  

          (k)
  Shares Held by The Company and its Affiliates. Whenever the consent or
  approval of Holders of a specified percentage of Registrable Securities is required
  hereunder, Registrable Securities held by the Company or its Affiliates (other
  than any Holder or transferees or successors or assigns thereof if such Holder
  is deemed to be an Affiliate of the Company solely by reason of its holdings
  of such Registrable Securities) shall not be counted in determining whether
  such consent or approval was given by the Holders of such required percentage.

  

Registration
  Rights Agreement

  

18

 

          IN
  WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
  as of the date first written above.

  

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

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

	 	Name:	Sharad Tak
	 	Title:	President

Registration
  Rights Agreement

  

19

 

EXHIBIT
  A

PLAN
  OF DISTRIBUTION

          We
  are registering the shares of common stock on behalf of the selling stockholders.
  All costs, expenses and fees in connection with the registration of the shares
  offered by this prospectus will be borne by our company, other than brokerage
  commissions and similar selling expenses, if any, attributable to the sale of
  shares of common stock, which will be borne by the selling stockholders. We
  have also agreed to indemnify the selling stockholders against certain losses,
  claims, damages and liabilities, including liabilities under the Securities
  Act. Sales of shares of common stock may be effected by selling stockholders
  from time to time in one or more types of transactions (which may include block
  transactions) on Nasdaq, in the over-the-counter market, in privately negotiated
  transactions, through put or call options transactions relating to the shares
  of common stock, through short sales of shares of common stock, or a combination
  of such methods of sale, at market prices prevailing at the time of sale, or
  at negotiated prices, and by using any other method permitted pursuant to applicable
  law. Such transactions may or may not involve brokers or dealers. The selling
  stockholders have advised us that they have not entered into any agreements,
  understandings or arrangements with any underwriters or broker-dealers regarding
  the sale of their securities, nor is there an underwriter or coordinated broker
  acting in connection with the proposed sale of shares of common stock by the
  selling stockholders.

  

          The
  selling stockholders may enter into hedging transactions with broker-dealers
  or other financial institutions. In connection with such transactions, broker-dealers
  or other financial institutions may engage in short sales of the shares of common
  stock or of securities convertible into or exchangeable for the shares of common
  stock in the course of hedging positions they assume with the selling stockholders.
  The selling stockholders may also enter into options or other transactions with
  broker-dealers or other financial institutions which require the delivery to
  such broker-dealers or other financial institutions of the shares of common
  stock offered by this prospectus, which the broker-dealer or other financial
  institution may resell pursuant to this prospectus (as amended or supplemented
  to reflect such transaction).

  

          The
  selling stockholders may make these transactions by selling shares of common
  stock directly to purchasers or to or through broker-dealers, which may act
  as agents or principals. These broker-dealers may receive compensation in the
  form of discounts, concessions or commissions from selling stockholders and/or
  the purchasers of shares of common stock for whom these broker-dealers may act
  as agents or to whom they sell as principal, or both (which compensation as
  to a particular broker-dealer might be in excess of customary commissions).

  

          The
  selling stockholders may from time to time pledge or grant a security interest
  in some or all of the securities owned by them and, if they default in the performance
  of their secured obligations, the pledgees or secured parties may offer and
  sell shares of common stock from time to time under this prospectus, or under
  an amendment or supplement to this prospectus under Rule 424(b)(3) or other
  applicable provision of the Securities Act of 1933 modifying the list of selling
  stockholders to include the pledgee, transferee or other successors in interest
  as selling stockholders under this prospectus.

  

Registration
  Rights Agreement

  

20

 

          The
  selling stockholders and any broker-dealers that act in connection with the
  sale of shares of common stock may be “underwriters” within the meaning
  of Section 2(11) of the Securities Act, and any commissions received by these
  broker-dealers or any profit on the resale of the shares of common stock sold
  by them while acting as principals might be deemed to be underwriting discounts
  or commissions under the Securities Act. The selling stockholders may agree
  to indemnify any agent, dealer or broker-dealer that participates in transactions
  involving sales of the shares of common stock against certain liabilities, including
  liabilities arising under the Securities Act.

  

          The
  selling stockholders also may transfer the shares of common stock in other circumstances,
  in which case the transferees, pledgees or other successors in interest will
  be the selling beneficial owners for purposes of this prospectus.

  

          Because
  the selling stockholders may be “underwriters” within the meaning
  of Section 2(11) of the Securities Act, the selling stockholders may be subject
  to the prospectus delivery requirements of the Securities Act. Our company has
  informed the selling stockholders that the anti-manipulative provisions of Regulation
  M promulgated under the Exchange Act may apply to their sales in the market.
  In addition, our company has made copies of this prospectus available to the
  selling stockholders and has informed them of the need for delivery of copies
  of this prospectus to purchasers at or prior to the time of any sale of the
  shares offered hereby.

  

          The
  selling stockholders also may resell all or a portion of the shares of common
  stock in open market transactions in reliance upon Rule 144 under the Securities
  Act, provided that they meet the criteria and conform to the requirements of
  Rule 144.

  

          Upon
  our company being notified by a selling stockholder that a material arrangement
  has been entered into with a broker-dealer for the sale of shares of common
  stock through a block trade, special offering, exchange distribution or secondary
  distribution or a purchase by a broker or dealer, a supplement to this prospectus
  will be filed, if required, pursuant to Rule 424(b) under the Securities Act,
  disclosing:

  

	the name of each selling
    stockholder and of the participating broker-dealer(s);

    
	the number of shares
    of common stock involved;

     
	the initial price at
    which shares of common stock were sold;

     
	the commissions paid
    or discounts or concessions allowed to the broker-dealer(s), where applicable;

     
	that the broker-dealer(s)
    did not conduct any investigation to verify the information set out or incorporated
    by reference in this prospectus; and

     
	other facts material
    to the transactions.

     

Registration
  Rights Agreement

  

21

 

          In
  addition, upon our company being notified by a selling stockholder that a donee
  or pledgee intends to sell more than 500 shares of common stock, a supplement
  to this prospectus will be filed.

  

Registration
  Rights Agreement

  

22Untitled Document

Exhibit
  10.7

REMOTE
  RESOURCING AGREEMENT 

     This
Remote Resourcing Agreement (the “Agreement”) is entered into effective
May 13, 2005 (the “Effective Date”) by and between Healthaxis, Ltd,
a Texas limited partnership, having offices at 5215 N. O’Connor Blvd., Suite
800, Irving, Texas 75039 (“Healthaxis”), and Healthcare BPO Partners,
L.P., a Texas limited partnership corporation having offices at
________________________ (“TakCo”).

R E C I T A L
S:

     WHEREAS,
Healthaxis Inc., the parent company of Healthaxis, and Sharad Tak and/or an
entity owned 100% by Sharad Tak (collectively, “Tak”), the principal
shareholder of TakCo, have previously entered into that certain Stock and Warrant
Purchase Agreement dated February 23, 2005 (the “Purchase Agreement”)
pursuant to which Tak is making a substantial investment in Healthaxis; and

     WHEREAS,
it is a condition  precedent of the closing  of the  investment  transaction
contemplated  by the Purchase  Agreement  that  Healthaxis  and  TakCo  enter  into  this
Agreement  pursuant  to  which  TakCo  shall  provide  to  Healthaxis  and its
affiliates  certain  remote  resources as  more particularly described herein.

     NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and of other good and valid consideration, the receipt and sufficiency
of which are hereby acknowledged, Healthaxis and TakCo (collectively, the “Parties”,
and each, a “Party”) hereby agree as follows:

	1.
 	 	 BACKGROUND
AND OBJECTIVES

	 	Healthaxis
desires to take  advantage  when possible  of  lower  cost  remote  resources,
scalability,  redundancy  and  capacity  that TakCo can  provide by  virtue of TakCo’s
existing and future  operations in  India.

	 	First,
Healthaxis  desires to have  TakCo  establish  an  additional  data  capture  processing
center  in  India using lower cost  resources  than are available  at its  existing
processing  centers in Jamaica  and  Utah.  The TakCo  India  production  center  will
use  the  same  Healthaxis  proprietary  technology  and  production  processes  and
procedures  as the  other  Healthaxis  production  centers  use, and is intended  to
provide  scalability  and  redundancy  for  this  business process.

	 	Second,
Healthaxis  will seek to maximize its use of  the TakCo data capture processing center in
India.

	 	Third,
Healthaxis  desires  to  transfer  certain  technical,  development  and  support
functions  to  lower cost remote resources in India.

	 	Fourth,
Healthaxis  desires  to  transfer  its Texas  data  center  and  certain  technical  and
support  functions  associated  therewith  to  a  lower  cost  facility in the United
States  owned and operated by  or on behalf of TakCo.

	 	In
all  cases,  it is the  intention  of the  Parties  that TakCo will provide  dedicated
remote  personnel  and the related  physical  plant and  resources  that  support  the
remote  functions,  and that  Healthaxis  will  manage and direct  the  remote
personnel.  The  Parties  shall  work  together  to  evolve  this  agreement  to
maintain  Services  competitive  with  opportunities  that  are  otherwise  available  to
Healthaxis  in the  global  market  in terms of cost,  service  level  commitments,
quality,  productivity,  and turn around times.

	 	The
provisions of this Article 1 are intended to be a general introduction to this
Agreement and are not intended to expand the scope of the Parties’ obligations
or alter the plain meaning of this Agreement’s terms and conditions as
set forth hereinafter. However, to the extent the terms and conditions of this
Agreement are unclear or ambiguous, such terms and conditions are to be
construed so as to be consistent with the background and objectives set forth
in this Article 1.

1

 

	2.
 	 	 DEFINITIONS
AND DOCUMENTS

	2.1
 	 	 Definitions

	 	As
used in this Agreement:

	 	“Affiliate” means,
generally, with respect to any Entity, any other Entity Controlling, Controlled by
or under common Control with such Entity.

	 	“Agreement” shall
have the meaning given such term in the preamble to this Agreement.

	 	“Charges” means
the amounts set forth in this Agreement as charges for the Services.

	 	“Critical
Support Personnel” means those TakCo Personnel identified in Schedule A
as critical to the ongoing success of TakCo’s delivery of the remote
resources to Healthaxis.

	 	“Data
Center” shall mean the Healthaxis data center in Texas as of the Effective
Date and the TakCo data center in Virginia following the migration of data center
services to TakCo.

	 	“Developed
Materials” shall mean all Materials developed by TakCo employees in performing
its data capture and applications development and maintenance obligations under
this Agreement.

	 	“Effective
Date” shall have the meaning given such term in the preamble to this Agreement.

	 	“Entity” means
a corporation, partnership, joint venture, trust, limited liability company,
association, or other organization or legal entity.

	 	“Equipment” means
all mainframe, midrange, distributed, network, telecommunications and related
computing equipment procured, provided, operated, supported or used by TakCo or
Healthaxis and required for TakCo to perform the Services.

	 	“Healthaxis
Data” means any data or tangible information of Healthaxis or any
Healthaxis Affiliate or customer that is provided by Healthaxis or any such
Affiliate to TakCo for use in the performance of its obligations under this
Agreement, including data and information with respect to the businesses,
customers, operations, facilities, products, consumer markets, assets and finances
of Healthaxis or any Affiliate. Examples of Healthaxis Data include any of the
foregoing that are service level measurements, Healthaxis asset information,
charges hereunder, and Healthaxis customer data, including all healthcare claims
data from any source. Service level measurements and charges hereunder are
also the Confidential Information of TakCo.

	 	“Healthaxis
Equipment” means Equipment owned by or leased to Healthaxis or a Healthaxis
Affiliate that is used in connection with the Services. Unless otherwise
agreed, Healthaxis Equipment shall include the RS/6000 AIX system in India and
all Equipment necessary for the performance of the data center Services in
Virginia other than uninterruptible power supply and physical security.

	 	“Healthaxis
Licensed Materials” means Third Party Software and other Materials that are
proprietary to third parties to which Healthaxis has obtained a license pursuant to
a written agreement with such third party.

	 	“Healthaxis
Owned Materials” shall mean: (a) the Materials owned by Healthaxis as of the
Effective Date, and all enhancements and derivative works of such Materials,
including United States and foreign intellectual property rights, including
copyrights, in such Materials, and (b) the intellectual property rights,
including copyrights, in the Developed Materials.

2

 

	 	“Healthaxis
Owned Software” means Software owned by Healthaxis as of the Effective Date,
and all intellectual property rights, including copyrights, in enhancements and
derivative works of such Software, including United States and foreign
intellectual property rights, including copyrights, in such Software, and the
Developed Materials that consist of Software.

	 	“Healthaxis
Personnel” means the employees, agents, contractors or representatives of
Healthaxis.

	 	“Healthaxis
Project Executive” shall have the meaning given such term in Section 10.1.

	 	“Healthaxis
Software” means Software that is either: (a) Healthaxis Licensed Materials;
or (b) Healthaxis Owned Materials.

	 	“Healthaxis
Third Party Contractors” shall have the meaning given such term in Section 9.2.

	 	“Laws” mean
all federal, state and local laws, statutes, regulations, rules, executive
orders, supervisory requirements, directives, interpretive letters and other
official releases of or by any government.

	 	“Losses” mean
all losses, liabilities, damages and claims (including taxes), and all related costs
and expenses (including reasonable legal fees and disbursements and reasonable
costs of investigation, litigation, settlement, judgment, interest and penalties).

	 	“Malicious
Code” means (i) any code, program, or sub-program whose knowing or intended
purpose is to damage or interfere with the operation of the computer system
containing the code, program or sub-program, or to intentionally halt, disable
or interfere with the operation of the Software, code, program, or sub-program,
itself, or (ii) any device, method, or token whose knowing or intended purpose
is to permit any person to circumvent the normal security of the Software or
the system containing the code.

	 	“Materials” means,
collectively, Software, literary works, other works of authorship, specifications,
design documents and analyses, programs, program listings, programming tools,
documentation, reports, drawings and similar work product.

	 	“New
Services” means services, functions and responsibilities that are not described
on Schedule B or otherwise initially provided for in this Agreement.

	 	“Performance
Standards” means, individually and collectively, the Service Levels and the
other quantitative and qualitative performance standards and commitments for the
Services contained in Schedule C.

	 	“Personnel” means,
with respect to an Entity, the employees, agents, contractors and representatives
of such Entity.

	 	“Policy
and Procedures Manuals” means the then current versions of any Healthaxis
documentation that sets forth the policies, procedures, processes, methods and
other requirements for performing the Services designated as such and provided
in writing to TakCo.

	 	“Proprietary
Information” shall have the meaning given such term in Section 13.3.

	 	“Required
Consents” means: (a) the consents (if any) required to be obtained (i) to
grant TakCo the right to use and/or access the Healthaxis Owned Software and
Third Party Software in connection with providing the Services or (ii) to
assign or transfer to Healthaxis all intellectual property rights, including the
copyright, in any Developed Materials; and (b) all other consents required from
third parties in connection with TakCo’s provision of the Services.

	 	“Service
Taxes” means all sales, lease, service, value-added, use, personal property,
excise, consumption, and other taxes or duties that are assessed against either
Party on the provision of the Services as a whole, or on any particular
Service received by Healthaxis from TakCo.

3

 

	 	“Services” means,
collectively the services, functions and responsibilities set forth in Article 4
and Schedule B as they may be supplemented, enhanced, modified or replaced by
mutual agreement during the Term in accordance with this Agreement.

	 	“Service
Levels” means the quantitative performance standards for the Services set forth
in Schedule C.

	 	“Service
Level Credits” shall have the meaning given such term in Section 7.2 andSchedule C.

	 	“Software” means
both the source code and object code of software programs (including compilers,
database management software, applications software, system software, utilities
and other software programs), and all associated documentation and programmers
notes, and all versions, upgrades and enhancements to the same.

	 	“Staffing
Plan” shall have the meaning given such term in Section 8.7.

	 	“TakCo
Facilities” means the facilities owned or leased by TakCo at which the
Services are performed.

	 	“TakCo
Personnel” means Personnel of TakCo who are dedicated to Healthaxis to perform
any Services under this Agreement.

	 	“TakCo
Project Executive” shall have the meaning given such term in Section 8.2 and
shall describe the TakCo representative responsible for both the day-to-day
relationship with Healthaxis, as well as the delivery of the Services to Healthaxis.

	 	“Key
TakCo Personnel” means the TakCo Personnel filling the positions designated
in Schedule A as Key TakCo Personnel.

	 	“Term” means
the five (5) year period that commences as of 12:00:01 a.m., EST, on the
Effective Date and continues, unless this Agreement is terminated as provided
herein or extended as provided in Sections 3.2 or 20.5, in which case the Term
shall end at 12:00 midnight on the effective date of such termination or the date
to which this Agreement is extended.

	 	“Third
Party Contracts” means all written third party agreements with TakCo that are
necessary to provide the Services from time to time, including, but not limited
to, licenses to Third Party Software, facilities leases, employment agreements,
data and communications service provider agreements.

	 	“Third
Party Software” means all Software products (and all modifications,
replacements, upgrades, enhancements, documentation, materials and media related
thereto) that are owned by third parties and used by TakCo to provide the Services.

	 	“Transfer
Assistance Services” means the reasonable termination/expiration assistance
requested by Healthaxis to allow the Services to continue without material
interruption or material adverse effect, and to facilitate the orderly transfer of
the Services to Healthaxis or its designee, as such assistance is further described inSection 4.2.

	 	“Workstations” means
the personal data processing and computer equipment used by TakCo Personnel to
perform the Services, together with the LAN, WAN up to but excluding the router at
the Data Center and associated infrastructure necessary to support performance of
the Services.

	2.2
 	 	 Other
Terms

	 	The
terms  defined  in  this  Article  include  the  plural  as well  as the  singular.
Unless  otherwise  expressly stated,  the words “herein,” “hereof,” and
“hereunder” and other words of similar  import refer  to  this  Agreement  as
a  whole  and  not  to  any  particular  Article,  Section,  subsection  or  other
subdivision.  Article,  Section,  subsection  and  Schedule  references refer to
articles,  sections and  subsections  of, and  schedules  to, 

4

 

	 	this
Agreement.  The  words  “include” and  “including” shall not be
construed  as terms of  limitation.  The words “day,” “month,” and
“year” mean,  respectively,  calendar  day,  calendar  month  and  calendar
year,  and  the  words  “writing” or  “written” mean  preserved  or
presented  in  retrievable  or  reproducible  written  form.  Except  as  provided  in
this  Agreement,  “writing” or  “written” may  mean  electronic
(including  e-mail  transmissions  where  receipt  is  acknowledged  by the recipient,
but excluding  voice  mail) or hard  copy,  including  by  facsimile  (with
acknowledgment  of  receipt  from  the  recipient’s  facsimile  machine),  unless
otherwise stated.  Other  terms  used  in this  Agreement  are  defined  in the  context
in which  they are used and  shall  have the  meanings there indicated.

	2.3
 	 	 AssociatedContract
      Documents

      

	 	This
Agreement  includes  each  of  the  following  schedules and their attached  exhibits,
all of which  are  attached  to  this  Agreement  and  incorporated  into this Agreement
by this reference:

		A 	 	  Key
TakCo  Positions  and  Critical  Support  Personnel 

		B 	 	  Services 

		C 	 	  Service
Levels and Performance Credits 

		D 	 	  TakCo
Charges 

		E 	 	  TakCo
Facilities 

		F 	 	  Healthaxis
Equipment,  Healthaxis  Owned  Materials and Healthaxis Licensed Materials 

	3.
 	 	 TERM

	3.1
 	 	 InitialTerm

      

	 	This
Agreement  shall  begin on the  Effective  Date  and continue  throughout the Term,
unless terminated  earlier  or  extended  in  accordance  with  this  Agreement.

	3.2
 	 	 Extension

	 	By
giving  prior  written  notice to the other  Party  not less than 6 months prior to the
expiration  date  of the  initial  Term,  either  Party  shall have the  right,  and  the
other  party  shall  have  the  obligation,  to  negotiate  in good  faith  during  a
period of sixty  (60)  days the terms and  conditions  upon which the term of the
Agreement  may be  extended  for a period of five (5)  years  following the  expiration
date of the initial  Term.  If the Parties  are unable to reach  agreement  upon  renewal
terms  and  conditions  during  the  sixty-day  negotiation  period,  the  Agreement
will  expire at the end of the initial Term.

	4.
 	 	 SERVICES

	4.1
 	 	 Overview

		(a) 	 	  Description.
Commencing on the Effective Date, TakCo and Healthaxis shall jointly develop
and implement a transition plan and schedule pursuant to which the functions
described in Schedule B as currently performed by Healthaxis Personnel will be
transitioned to the dedicated TakCo Personnel. As the designated functions are
transitioned, the TakCo Personnel shall thereafter provide the Services to
Healthaxis in accordance with this Agreement. The Services shall consist of
the services, functions and responsibilities as set forth in this Agreement,
and in all cases to be performed in accordance with the Policy and
Procedures Manuals. Changes to the Policy and Procedures Manuals following the
Effective Date shall be subject to an equitable adjustment to the Staffing Plan or
the Charges. 

			 	 Healthaxis  shall
provide  the  Healthaxis  Equipment,  Healthaxis  Licensed  Materials  and  Healthaxis
Owned  Materials.  TakCo  shall  provide  the  Workstations,  the  facilities  in  India
and  Virginia.  The  Parties  shall  mutually  agree  on  the  provision  of  any  other
facilities,  Equipment,  Third Party  Software  and other  resources  necessary  for
TakCo to  provide  the  Services.  Any  changes  to  the  specifications  for
facilities,  Equipment,  Third Party  Software or other  resources to  be used by  TakCo
to  perform  the  Service  required by  Healthaxis  shall be subject to  an  equitable
adjustment to the Charges. 

5

 

		(b) 	 	  Exclusivity.
Subject to Section 11.6 and so long as Healthaxis has not partially terminated
this Agreement under Section 20.2 hereof regarding the applicable Services,
during the Term (i) TakCo shall be the exclusive provider of data capture Services
to be performed outside the United States (excepting the existing data capture
facility in Jamaica) to Healthaxis, and (ii) Healthaxis will not enter into
discussions or agreements with any third parties that would be inconsistent
with its obligation to migrate the data center Services or the technical and
professional resource Services to TakCo. Otherwise, this Agreement shall not be
construed as a requirements contract and this Agreement shall not be
interpreted to prevent Healthaxis from obtaining from third parties, or
providing to itself, any or all of the services described in this Agreement. 

	4.2
 	 	 Transfer
Assistance Services

		(a) 	 	  Availability.
TakCo shall provide to Healthaxis or Healthaxis’s designee the Transfer
Assistance Services in this Agreement. 

		(i) 	 	 TakCo
shall provide such Transfer Assistance Services to Healthaxis or its designee (i)
commencing up to six (6) months prior to the expiration of the Term (including
any renewal Term) or on such earlier date as Healthaxis may request and
continuing for up to six (6) months following the effective date of the
expiration of the Term (as such effective date may be extended pursuant toSection 3.2), (ii) commencing upon any notice of termination of the Term with
respect to all or any portion of the Services, and continuing for up to six
(6) months following the effective date of such termination (as such effective
date may be extended pursuant to Section 20.4), (iii) commencing upon notice of
termination of any portion of the Services no longer required by Healthaxis and
continuing for up to six (6) months following the effective date of such
termination (as such effective date may be extended pursuant to Section 20.4).

		(ii) 	 	 TakCo
shall provide Transfer Assistance Services to Healthaxis or its designee
regardless of the reason for the expiration or termination of the Term; provided
that if the Agreement is terminated by TakCo under Section 20.1(b) or (c) for
Healthaxis’s default, TakCo may require Healthaxis to (i) pay in advance
for Transfer Assistance Services provided or performed under this Section 4.2,
(ii) pay all outstanding undisputed Charges, and (iii) establish an escrow
account based on mutually agreed terms to ensure payment of future Charges.

		(iii) 	 	 To
the extent  Healthaxis  requests  Transfer Assistance Services,  such  Services shall be
provided  subject  to  and  in  accordance  with  the  terms  and  conditions  of  this
Agreement.  TakCo  shall  perform  the  Transfer  Assistance  Services  with at least
the same  degree  of  accuracy,  quality,  completeness,  timeliness,  responsiveness
and  cost-effectiveness  as it  provided  and was  required  to  provide  for  the  same
or  similar  Services  during the Term.  The  quality  and  level  of  performance  of
the  Services  provided  by  TakCo  following  the  expiration  or  termination  of  the
Term  with  respect  to  all  or  part  of  the  Services  or  TakCo’s  receipt of a
notice  of  termination  or  non-renewal  shall  not  be  materially  degraded  or
deficient  in any respect.

		(b) 	 	  Scope
of Service. As part of the Transfer Assistance Services, TakCo will timely
transfer the control and responsibility for all Services, including documentation,
software support and data management functions, previously performed by or for
TakCo to Healthaxis and/or Healthaxis’ designees. Additionally, TakCo shall
provide any and all reasonable assistance requested by Healthaxis to allow: 

		(i) 	 	 the
systems  associated  with  the  Services to operate efficiently;

6

 

		(ii) 	 	 the
Services to  continue  without  material  interruption  or material  adverse effect; and

		(iii) 	 	 the
orderly  transfer  of  the  Services to  Healthaxis  and/or its  designee(s).

	 	The
Transfer  Assistance  Services  shall  consist  of  the  Services,  functions  and
responsibilities  set  forth  in  this  Agreement  and  all  similar  services  requested
from  time  to  time  by  Healthaxis.

	 	In
addition to the initial six (6) month post-termination period specified inSection 4.2(a)(i) above, at Healthaxis’ written request (which must be given
at least 180 days prior to the expiration or termination date), and provided
that Healthaxis is pursuing a migration of some or all of the Services to
itself or a third party, TakCo shall provide to Healthaxis such Services for an
additional period not to exceed six (6) months from the end of such initial
six (6) month period. To the extent Healthaxis requests such Services, Healthaxis
will continue to pay TakCo the Charges.

	 	Unless
otherwise agreed in writing, if Healthaxis requests that TakCo provide or
perform Transfer Assistance Services in accordance with this Agreement, Healthaxis
will pay TakCo the rates and charges specified in Schedule D (or if no charge
is specified in Schedule D, then a reasonable charge) for TakCo Personnel or
resources required to perform such Transfer Assistance Services. If Transfer
Assistance Services require additional resources beyond those being used to
provide the Services, Healthaxis will pay TakCo for such usage as a New Service.

		(c) 	 	 Survival
of Terms. This Section 4.2 shall survive termination/expiration of the Term. 

	5.
 	 	 REQUIRED
CONSENTS

	 	Healthaxis
is  responsible  for  obtaining  all  Required  Consents.  TakCo  will  cooperate  with
and  assist  Healthaxis  in  obtaining  all  Required  Consents  that  may  become
necessary  from  time to  time in connection  with TakCo’s  performance  of the
Services or upon the  expiration  or  termination  of  this Agreement in accordance with
Article 4.

	6.
 	 	 FACILITIES,
SOFTWARE, EQUIPMENT, CONTRACTS AND ASSETS ASSOCIATED WITH THE PROVISION OF SERVICES

	6.1
 	 	 Service
Facilities

		(a) 	 	 Service
Facilities. The Services shall be provided at or from the production and data
center locations owned or leased by TakCo as described in Schedule E, or any
other service location as may be agreed upon by TakCo and Healthaxis from time
to time. 

		(b) 	 	 Facilities
Requirements. Each TakCo Facility shall meet the minimum security and other
standards as specified in Schedule E. Except with respect to management,
administrators and supervisors, TakCo shall not collocate the TakCo personnel
utilized for performance of the Services with other TakCo personnel performing
services for third parties. 

		(c) 	 	  Furniture,
Fixtures and Equipment. Except as may be expressly provided in this Agreement,
TakCo shall be responsible for providing all furniture, fixtures, office
equipment, Workstations and facilities management and support services at the
TakCo Facilities needed by TakCo or TakCo Personnel to provide the Services.
Material upgrades, improvements, replacements and additions to such Workstations
shall be subject to an equitable adjustment to the Charges. 

		(d) 	 	  Other
TakCo Responsibilities Regarding Facilities. TakCo shall be responsible for site
management, site administration and similar services regarding TakCo Personnel
located at the TakCo Facilities, and provide all necessary emergency power supply
and uninterrupted power supply services and all necessary Workstations at TakCo
Facilities. 

7

 

		(e) 	 	  Employee
Services. TakCo shall be responsible for all employee services and the physical
security of the facilities used by TakCo Personnel assigned to Healthaxis to
perform the Services. 

		(f) 	 	  Facilities
Compliance. TakCo shall provide TakCo Facilities compliant with all applicable
Indian laws, rules, codes, regulations and standards. 

		(g) 	 	 Healthaxis
Assets at TakCo Facilities. All Healthaxis Equipment, Healthaxis Owned Materials
and Healthaxis Licensed Materials located at TakCo Facilities to enable TakCo
Personnel to perform the Services shall be secured at the TakCo Facilities
and safeguarded in accordance with the Agreement. As of the Effective Date,
Healthaxis shall provide the Equipment, Healthaxis Owned Materials and Healthaxis
Licensed Materials identified in Schedule F. Upon termination or expiration of
this Agreement, or at anytime upon request from Healthaxis, TakCo shall return
such Healthaxis Materials and Healthaxis Equipment in the same condition as the
condition in which the same were first located at TakCo Facilities, reasonable
wear and tear excepted. 

	6.2
 	 	 Software

		(a) 	 	  TakCo
Personnel  shall  not  use  Software  other  than  Healthaxis  Software  or  Third  Party
Software  specifically  designated by  Healthaxis  on  their  Workstations  to  perform
TakCo’s  obligations  under  this  Agreement. 

		(b) 	 	  TakCo
shall be responsible for: 

		(i) 	 	 the
support,  administration,  operation  and  maintenance  of all  Third Party  Software to
be used by  TakCo  on  the  Workstations  in  performing the Services,  including
payment  of  required  license  and  maintenance  fees.  Any  changes to  the Third Party
Software  required  by  Healthaxis  for  use  in  performing  the  Services  shall be
subject to an equitable  adjustment  in the Charges; and

		(ii) 	 	 the
compliance  with  and  performance of all  operational and  administrative  obligations
specified  in  such  licenses  and  agreements,  including  nondisclosure  obligations.
If any  of these  are  Healthaxis  licenses  or  agreements,  this  obligation  shall be
limited to  performance of  operational  and  administrative  obligations  provided in
writing to  TakCo.

		(c) 	 	  Healthaxis
shall be responsible for: 

		(i) 	 	 the
support,  administration,  operation  and  maintenance  of all  Third Party  Software to
be used on  the  servers  in  India  or  the  Equipment  in  Virginia by TakCo on  the
Workstations in performing the  Services,  including  payment  of  required  license  and
maintenance  fees; and

		(ii) 	 	 the
compliance  with  and  performance of all  operational and  administrative  obligations
specified  in  such  licenses  and  agreements  to  the  extent  applicable  to  the
Services,  including  nondisclosure  obligations  provided in writing to  TakCo.

	6.3
 	 	 Equipment

		(a) 	 	  TakCo
Personnel  shall not use any  Equipment  other  than  Workstations  specified by
Healthaxis  or other  Equipment  provided by  Healthaxis  to perform  the  Services
without the prior  written consent of Healthaxis. 

		(b) 	 	  With
respect  to the  Healthaxis  Equipment  to  be  placed  at  the  TakCo  Facilities,
TakCo  shall  be  responsible  for  cooperating,  assisting  and  advising  Healthaxis
in  connection  with  the  relocation,  testing,  installation,  rollout,  use,  support,
management,  administration,  operation  and  maintenance  of the  Healthaxis  Equipment
according  to  an agreed services  implementation  plan and  the Policy and Procedures
Manuals. 

8

 

	6.4
 	 	 Third
Party Contracts

	 	TakCo
shall  be  responsible  for  the  evaluation,  procurement,  use,  support,  management,
administration,  operation  and  maintenance  of  all  Third  Party  Contracts,  and  the
performance,  availability,  reliability,  compatibility  and  interoperability  of Third
Party  Contracts  and the  services and products  provided  thereunder,  and for
performance  of any  operational,  administrative  or  contractual  obligations  imposed
on  TakCo  under  Third Party  Contracts  necessary to perform  TakCo’s
responsibilities  hereunder,  including,  but  not  limited to, the  facilities  leases,
maintenance  on  Workstations,  licenses  to  Software  provided  by  TakCo  and
installed  on  the  Workstations,  connectivity  and telecom  agreements,  but excluding
Third  Party  Contracts  relating  to  Healthaxis’ performance  of  its
responsibilities  hereunder,  including  maintenance  on  Healthaxis  Equipment,
Healthaxis  owned  Materials or  Healthaxis  Licensed  Materials.

	6.5
 	 	 License
to Healthaxis Software and Materials

	 	As
of the Effective  Date,  Healthaxis  hereby grants  to  TakCo  a  non-exclusive,  fully
paid-up,  irrevocable  license  during  the  Term  and  any  Transfer  Assistance
Services  period  to  use  the  Healthaxis  Owned  Software  and  Healthaxis  Owned
Materials  and to  prepare  derivative  works  of the  same as part of the  Services,  in
each  case  solely  at the TakCo  Facilities,  for the  express  and sole  purpose of
providing  the Services and any  requested  Transfer  Assistance  Services.  Healthaxis
Owned  Software  and  Healthaxis  Owned  Materials  shall  remain the  property of
Healthaxis.  TakCo shall not  use  any  Healthaxis  Owned  Software  or  Healthaxis
Owned  Materials  for the  benefit  of any  person or  Entity  other than  Healthaxis.
Except as  otherwise  requested  or approved by  Healthaxis,  TakCo and its
Subcontractors  shall  cease  all  use of  Healthaxis  Owned  Software  and  Healthaxis
Owned  Materials  (except  as may be  provided  in  Article  14 of this  Agreement)  upon
the  later of the end of the Term or  any  Transfer  Assistance  Services  period and
shall  deliver  all source code and  documentation  relating  to such  Software  upon the
later of the  completion  of the  Term  or  any  Transfer  Assistance  Services  period.

	6.6
 	 	 Access
to Third Party Software and Maintenance

	 	During
the  Term,  and  subject  to  obtaining  any  Required  Consents,  Healthaxis shall grant
to TakCo,  for the  sole  purpose  of  performing  the  Services  during  the  Term  and
any  Transfer  Assistance  Services  period,  any rights  that may be  necessary  for
TakCo to  access  and use  Third  Party  Software  and related  Healthaxis  Third Party
Contracts  that  Healthaxis  has  with  respect  to such  Third  Party  Software  and
Third-Party  Contracts.  TakCo  shall  comply with the duties,  including  use
restrictions  and those of  nondisclosure,  imposed  on  Healthaxis  by such  licenses
and  agreements  made  available to  TakCo in writing.  Except as  otherwise  requested
or  approved by  Healthaxis  (or the relevant  licensor),  TakCo  shall  cease  all  use
of  such  Third-Party  Software  and  Third-Party  Contracts on the later of  the end of
the Term or Transfer  Assistance  Services  period  and shall  return  any and all such
Software  (including  the source  code,  programmers  notes and  documentation
pertaining  thereto)  to  Healthaxis  and/or  any  third-party  licensor,  if  and  as
applicable.

	6.7
 	 	 Notice
of Defaults

	 	Healthaxis
and  TakCo  shall  promptly  inform  the  other  Party of any  breach of, or misuse or
fraud in  connection  with,  any  Third-Party  Contract(s),  Equipment  Lease or
Third-Party  Software  license of  which it becomes aware and shall  cooperate  with the
other  Party to  prevent  or stay  any  such  breach,  misuse or fraud.

	7.
 	 	 SERVICE
LEVELS

	7.1
 	 	 General

	 	Except
as expressly provided in Section 18.2 of this Agreement, TakCo shall perform the
Services to enable Healthaxis to meet or exceed the Service Levels set forth inSchedule C.

9

 

	7.2
 	 	 Service
Level Credits

	 	TakCo
recognizes that its failure to perform the Services (e.g., failure to provide
back-up generator power, to have redundant telecommunications lines to the Data
Center or to provide TakCo personnel at the Indian facility) may prevent Healthaxis
from meeting the Service Levels may subject Healthaxis to contractual penalties
under agreements Healthaxis has with its customers. Accordingly, if TakCo fails
to adhere to the Policy and Procedures Manual or otherwise fails to perform
the Services other than the actions or omissions of Healthaxis or circumstances
that are excused as Force Majeure under Section 18.2, and as a direct result
Healthaxis fails to meet any Service Level for reasons then TakCo shall provide a
credit to Healthaxis calculated in accordance with Schedule C that in any event
will not exceed the actual amount of the credit, performance penalty or similar
amount or adjustment actually paid or provided by Healthaxis to the impacted
Healthaxis customer (“Service Level Credits”). To the extent new
customers are added by Healthaxis for which different Service Levels and Service
Level Credits will apply other than those specified as of the Effective Date,
Healthaxis will advise TakCo of all the specific Service Levels and Service Level
Credits for each such customer pursuant to agreed upon procedures. Any such
additions or modifications to the Service Levels or Service Level Credits shall be
subject to the mutual agreement of the Parties. To the extent Healthaxis
customers’ monetary remedies are limited to service level credits or performance
penalties in their contracts with Healthaxis for a given Service Level breach,
Service Level Credits under this Agreement shall be Healthaxis’ sole monetary
remedy for the breach of the Agreement by TakCo causing the Service Level failure.

	7.3
 	 	 Problem
Analysis

	 	If
TakCo  fails  to  provide  Services  and  thereby  prevents  Healthaxis  from  meeting
the  Service  Levels, TakCo shall:

		(i) 	 	 promptly
investigate and report on  the causes of the problem;

		(ii) 	 	 provide
a Root  Cause  Analysis  of  such  failure  as  soon  as  practicable after such failure;

		(iii) 	 	 develop
and  implement  a plan  to  correct  the  problem  and to begin  performing  the
Services to enable  Healthaxis  to meeting  the Service  Levels  as  soon  as
practicable  which  may  include  an  equitable  adjustment  to the Staffing Plan or
Charges; and

		(iv) 	 	 advise
Healthaxis,  as  and to the  extent  reasonably  requested  by  Healthaxis,  of  the
status  of  remedial  efforts being  undertaken  with respect to such problem.

	 	TakCo
shall use  diligent  efforts to  complete  the  Root Cause Analysis within fifteen (15)
days.

7.4Measurement and Monitoring 

	 	TakCo
shall  implement  measurement  and  monitoring  tools  and  metrics,  as well as
standard  reporting  procedures  in  accordance  with  the  Policy  and  Procedures
Manual to measure and report  against the  applicable  Service  Levels.  TakCo shall
utilize any  tools and  processes  specified by  Healthaxis  to be  used for change
control  and problem  management  in  the Policy and Procedures Manual.

	8.
 	 	 PROJECT
PERSONNEL

	8.1
 	 	 Key
TakCo Personnel

		(a) 	 	  Approval
of Key TakCo Personnel.
 

		(i) 	 	 Before
assigning an  individual to  replace  any  of  the  Key  TakCo  Personnel,  whether  on
an  initial  assignment  or  a  subsequent  assignment,  TakCo  shall  notify  Healthaxis
of  the  proposed  assignment,  shall  introduce  the  individual  to  appropriate
Healthaxis  representatives,  shall  provide reasonable  opportunity for  Healthaxis
representatives  to  interview  the  individual,  and  shall  provide  Healthaxis  with
a  resume and such  other  information  about  the  individual  as  may  be  reasonably
requested  by  Healthaxis. 

10

 

			 	If  Healthaxis
in good  faith  objects  to  the  proposed  assignment  for a specified  lawful  reason,
the Parties  shall attempt  to  resolve  Healthaxis’s  concerns  on a mutually
agreeable  basis. If  the  Parties  have not been able to  resolve  Healthaxis’s
concerns  within  ten  (10)  business  days,  TakCo  shall  not  assign  the  individual
to  that  position  and  shall  propose  to  Healthaxis  the  assignment  of  another
individual  of  suitable  ability  and  qualifications.

		(ii) 	 	 The
Key TakCo Personnel that have been approved as of the Effective Date are listed inSchedule A. 

		(iii) 	 	  The
Parties  may from time to time  change the positions  designated as  Key  TakCo
Personnel  under  this  Agreement  by mutual  agreement  of  the Parties. 

		(b) 	 	 Continuity
of Key TakCo Personnel. TakCo shall cause each of the Key TakCo Personnel to
devote the necessary time and effort (which will likely fluctuate from time to
time) to the provision of the Services under this Agreement. TakCo shall not
transfer, reassign or remove any of the Key TakCo Personnel except where the Key
TakCo Personnel (i) voluntarily resigns from TakCo, (ii) is dismissed by TakCo
for violations of conditions of employment, (iii) fails to perform his or her
duties and responsibilities pursuant to this Agreement in TakCo’s
reasonable judgment or (iv) dies or is unable to work due to his or her illness or
disability or announce its intention to do so during the specified period without
Healthaxis’s prior approval, which approval shall not be unreasonably
withheld. TakCo shall transfer, reassign or remove one of its Key TakCo
Personnel only after (i) giving Healthaxis at least thirty (30) days’ prior
written notice of such action and (ii) complying with the requirement ofSection 8.1(a)(i) above and Section 8.4 below. 

	8.2
 	 	 TakCo
Project Executive

	 	TakCo
shall designate an “TakCo Project Executive” for Healthaxis. The TakCo
Project Executive shall:

		(i) 	 	 be
one of the Key TakCo Personnel;

		(ii) 	 	 be
a full-time employee of TakCo;

		(iii) 	 	 devote
sufficient  time and effort  to managing the  Services  provided  to Healthaxis;

		(iv) 	 	 serve
as  the  single  point  of  accountability  for  the  Services;  and

		(v) 	 	 have
day-to-day  authority  for  ensuring customer  satisfaction and  achieving  attainment
of  all  Service  Levels  and  Performance  Standards.

	8.3
 	 	 TakCo
Personnel Are Not Healthaxis Employees

	 	The
Parties  intend  to  create  an  independent  contractor  relationship  and  nothing  in
this  Agreement  shall  operate or be  construed  as making  Healthaxis  or  TakCo
partners,  joint  venturers,  principals,  agents or  employees  of the  other.  No
officer,  director,  employee,  agent,  Affiliate,  contractor  or  Subcontractor
retained  by  TakCo to  perform work on Healthaxis’s  behalf  hereunder shall  be
deemed  to be  an  officer,  director,  employee,  agent,  Affiliate,  contractor  or
Subcontractor  of  Healthaxis.  Notwithstanding  Healthaxis’ rights  hereunder,
TakCo,  not  Healthaxis,  has  the  sole  right,  power,  and authority  over the
employment of  the  TakCo  Personnel  and  the  sole  obligation  to  compensate  such
TakCo  Personnel  for  all  work  performed by them on Healthaxis’ behalf  pursuant
to  this Agreement.

11

 

	8.4 
 	 	 Replacement,
Qualifications and Retention of TakCo Personnel

		(a) 	 	  TakCo
shall  assign  sufficient  TakCo  Personnel  to  provide  the  Services  in  accordance
with  the  Staffing  Plan  as it  exists  from  time to time,  and  each  such  TakCo
Personnel  shall  meet  the  requirements  and  have  the  qualifications  as reasonably
specified by Healthaxis. 

		(b) 	 	  In
the  event  that  Healthaxis  determines  reasonably,  lawfully  and  in  good  faith
that  the  continued  assignment  to  Healthaxis  of  any  TakCo  Personnel  (including
Key TakCo  Personnel)  is not in  the  best  interests  of  Healthaxis,  then  Healthaxis
shall give TakCo written  notice  to that  effect  specifying  the  reason for  its
position  and  requesting  that  such  TakCo  Personnel  be  removed  from  the  account
and whether a  replacement  is being  requested.  Promptly  after its  receipt  of  such
a request by  Healthaxis,  TakCo  shall  have ten business  days to  investigate  the
matters  stated in the  request  and discuss  its  findings  with  Healthaxis.  If  TakCo
determines  that  Healthaxis’s  request  is  reasonable,  lawful  and  in  good
faith,  TakCo  shall  take  appropriate  action.  If  requested  to  do so  by
Healthaxis,  TakCo  shall  immediately  remove the individual in  question  from  all
Healthaxis  activities  pending  completion  of  TakCo’s  investigation  and
discussions  with  Healthaxis.  If,  following  discussions  with TakCo,  Healthaxis
still in good faith  requests  removal/replacement  of such TakCo  Personnel,  TakCo
shall  on  two  weeks  advance  notice remove the TakCo  Personnel,  and,  then,  if
requested,  replace  such  TakCo  Personnel  with  an  individual  of  suitable  ability
and  qualifications  in  accordance with the Staffing Plan. 

	8.5
 	 	 Personnel
Screening

	 	TakCo
agrees  to  follow  the  pre-employment  and  post-employment  screening  procedures
applicable to  specific  functions  used by  Healthaxis  for its own  employees
documented  in the Policy  and  Procedures  Manual.

	8.6
 	 	 Hiring
of Employees

	 	During
the Term and for a period of six (6) months following the expiration or
termination hereof (including any extended post-termination/expiration transition
period), TakCo will not solicit for employment directly, nor employ, any
current employee of Healthaxis involved in the performance of Healthaxis’s
obligations under this Agreement without the prior written consent of
Healthaxis. During the Term and for a period of six (6) months following the
expiration or termination hereof (including any extended
post-termination/expiration transition period), Healthaxis will not solicit for
employment directly, nor employ, any current employee of TakCo or its Affiliates
involved in the performance of TakCo’s obligations under this Agreement
without the prior written consent of TakCo. For purposes of this Section 8.6,
“current employee” shall be deemed to include an employee of the applicable
Entity who is then currently actively employed by the Entity or who was so
employed by the Entity within the previous six (6) month period.

12

 

	8.7 
 	 	 Assignment
of Personnel

	 	TakCo
shall  assign  to  the  performance  of  its  obligations  under  this  Agreement  the
number  of  TakCo  Personnel  specified  in a  detailed  staffing  schedule  mutually
agreed  by  the  Parties  (the  “Staffing  Plan”).  The  Staffing  Plan  shall
be  reviewed and updated  weekly and shall be  maintained  in a manner that will  permit
TakCo to assign to the  Services an  adequate  number of staff to perform all  of  TakCo’s
obligations  hereunder,  including,  without  limitation,  administration,  management,
audit  support,  reporting  and  meetings  requirements.  Many of the  functions  may
require a  number of  Personnel  that is  variable in nature and  therefore  the Parties
shall  develop  policies  and  procedures  to  implement  and  maintain the Staffing
Plan  on  an  ongoing  basis.  All  changes  to  the  Staffing  Plan  will be made by
mutual  agreement  of  the  Parties  based  on  the  expected  volumes  and  business
requirements  of  Healthaxis.  Additional  requirements  for  staffing  shall be included
in the  Staffing  Plan with as much  notice as  possible  and  at  least  reasonable
notice  (generally  at  least  thirty (30) days advance  notice is preferred  unless
otherwise  agreed).  Healthaxis  will  provide  TakCo  with  as  much  notice  as
possible  and  at  least  reasonable  notice  (generally  at least  thirty (30)  days
advance  notice is preferred  unless  otherwise  agreed)  of  reductions  in  the
staffing  requirements.  Generally,  all  TakCo  Personnel  assigned  to the  Healthaxis
account  will be  fully  dedicated  to the  Healthaxis  account and may not be  utilized
by  TakCo  on  non-Healthaxis  business;  provided  however,  that it is understood  and
agreed  that the TakCo  Project  Executive  and  other  TakCo  employees  who  provide
administrative,  management  and other  overhead  functions  on behalf of TakCo in
carrying  out  the  obligations  of  TakCo  in  this  Agreement  as well as other  TakCo
business  are not  dedicated or billable to Healthaxis.

	8.8
 	 	 Training.
Healthaxis will provide reasonable training for TakCo Personnel and at least to
the same extent Healthaxis provides training to its other employees based on
the function they perform.

	9.
 	 	 TAKCO
RESPONSIBILITIES

	9.1 
 	 	 Policy
and Procedures Manuals

	 	TakCo
Personnel  shall  perform  the  Services  in  accordance  with the  Policy and
Procedures  Manuals  as  specified  by  Healthaxis  from time to time.  In  the event of
a conflict  between  the  provisions  of  this  Agreement  and  the  Policy  and
Procedures  Manuals,  the  provisions  of  this  Agreement  shall  control  unless  the
Parties  expressly  agree  otherwise  and  such  agreement  is set  forth in the
relevant  portion of a Policy and  Procedures  Manual  approved by Healthaxis and TakCo
in writing.

	9.2 
 	 	 Cooperation
with Healthaxis Third-Party Contractors

	 	Subject
to Section 4.1(b), Healthaxis may hire contractors, subcontractors, consultants
and/or other third parties (“Healthaxis Third Party Contractors”) to
perform any tasks related to the Services or any New Services. TakCo Personnel
shall reasonably cooperate with and work in good faith with Healthaxis Third
Party Contractors as directed by Healthaxis, subject to reasonable protection of
TakCo’s Confidential Information and intellectual property and an equitable
adjustment in the Staffing Plan and Charges.

	9.3 
 	 	 Reports

		(a) 	 	  Reports.
In addition to reports specified elsewhere in this Agreement, the Parties may
mutually agree on additional reports to be generated by TakCo and delivered to
Healthaxis on an ad hoc or periodic basis. 

		(b) 	 	  Back-Up
Documentation. As part of the Services, TakCo shall provide Healthaxis with
such documentation and other information available to TakCo as may be reasonably
requested by Healthaxis from time to time in order to verify the accuracy of
the reports provided by TakCo. In addition, each Party shall provide the other
Party with documentation and other information reasonably requested by Healthaxis
from time to time related to the Service Levels. 

13

 

		(c) 	 	  Correction
of Errors. As part of the Services, TakCo shall promptly correct any errors or
inaccuracies in or with respect to the reports, Healthaxis Data or other
deliverables provided to Healthaxis as part of the Services. 

	9.4
 	 	 Meetings

	 	In
order  to  assist  Healthaxis  in  its  business  planning,  during  the Term,
representatives  of the  senior  management  of TakCo and  representatives  of  the
senior  management  of  Healthaxis  agree to meet  in person or  telephonically  no less
frequently than  monthly  (provided  that such  parties  shall meet in  person  no less
frequently  than  quarterly)  (a) to  discuss,  prioritize and balance  Healthaxis’s
needs  and  TakCo’s  resources  on the  Healthaxis  account,  including,  without
limitation,  manpower  and  personnel  resources,  and (b) to  discuss  any other
matters  arising  under  this  Agreement.  Such  meetings  will  include  review of
monthly  reports,  planned or  anticipated  activities  and changes that  might
materially and adversely  affect  performance,  and such other matters as appropriate.

	9.5
 	 	 Quality
Assurance

	 	TakCo
shall  perform the  Services in an accurate and  timely  manner,  in  accordance  with
the  Policy and  Procedures Manuals.

	 	Healthaxis
shall have final  authority to promulgate  processes,  procedures,  manners  and  methods
to be  used in performance  of the Services and  information  technology  architectures,
standards  and plans used  to  provide or support  the  Services,  and to modify  or
grant  waivers  from such  processes,  procedures,  manners,  methods,  architectures,
standards  or  plans,  all  in  accordance  with  the  Policy  and  Procedures  Manuals.
TakCo  shall  (i)  comply  with  and  enforce  the  processes,  procedures,  manners,
methods,  information  technology  architectures,  standards and plans as specified by
Healthaxis  from  time to time and  delivered  to TakCo,  provided  any  changes are
subject to an  equitable  adjustment  to  the  Staffing  Plan  and  Charges,  (ii)
modify  the  Services  as and to the extent  necessary  to conform  to  changes  to the
same,  subject  to an  equitable  adjustment  to the  Staffing  Plan and  Charges,  and
(iii)  obtain  Healthaxis’ prior  approval  for  any  deviations therefrom.

	9.6
 	 	 Change
Control

	 	TakCo
shall  not make any  changes  to the  Services  except  in  accordance  with  an
agreed-upon  change  control  procedures  contained  in  the  Policy  and  Procedures
Manuals.

	9.7
 	 	 Audit
Rights

		(a) 	 	 TakCo
Records. TakCo shall maintain records, documents and other information required
to meet Healthaxis’ audit rights under this Agreement, including, without
limitation, all information necessary to verify the accuracy of Charges to
Healthaxis included on any invoice provided to Healthaxis (“TakCo Records”).
TakCo shall retain TakCo Records in accordance with TakCo’s records
retention policy as it may be reasonably adjusted from time to time and
provided to Healthaxis in writing upon request; provided, however, that TakCo
shall at all times comply fully with the Policy and Procedures Manual regarding
records retention. 

		(b) 	 	  Operational
Audits. Upon thirty (30) days advance notice from Healthaxis no more than once
annually, TakCo shall provide to Healthaxis (and internal and external auditors,
inspectors, regulators and other representatives that Healthaxis may designate
from time to time) access at reasonable hours to TakCo Personnel, to the
TakCo Facilities at or from which Services are then being provided, and to
TakCo Records, all only to the extent relevant to the Services and TakCo’s
obligation under this Agreement. Such access shall be provided for the purpose
of performing audits and inspections of Healthaxis and its businesses and to
examine TakCo’s performance of the Services, including: (i) verifying the
integrity of Healthaxis Data; (ii) examining the systems that process, store,
support and transmit such data; (iii) examining the controls (e.g.,
organizational controls, input/output controls, system modification controls,
processing controls, 

14

 

			 	 system  design
controls  and  access  controls)  and  the  security,  back-up  practices  and
procedures;  (iv)  examining  TakCo’s  measurement,  monitoring  and  management
tools;  and (v) enabling  Healthaxis to meet  applicable  legal,  regulatory  and
contractual  requirements.  As  part  of the  Services,  TakCo  shall  provide  any
assistance  reasonably  requested  by  Healthaxis  or its  designee  in  conducting  any
such  audit.  In  addition,  TakCo shall  reasonably  cooperate  with  Healthaxis  by
providing  similar  records and  information  necessary for  Healthaxis  and its
principal  officers  to meet all  applicable  quarterly  and  annual  public  reporting
and  attestation obligations. 

		(c) 	 	  General
Procedures. 

		(i) 	 	 Healthaxis
shall  not  be  given  access  to  the  proprietary  information  of  other  TakCo
customers  or  to  TakCo  locations  that are not related to  Healthaxis  or the
Services or to  information  that  is not  reasonably  necessary  to perform the audit.

		(ii) 	 	 In
performing  audits,  Healthaxis  shall  endeavor  to  avoid  unnecessary  disruption  of
TakCo’s  operations  and  unnecessary  interference  with TakCo’s  ability  to
perform  the  Services  in  accordance  with  the  Performance  Standards.  In  the
event  that  Healthaxis  disrupts  TakCo’s  operations  or  interferes  with  TakCo’s
ability  to  perform  the  Services,  TakCo  shall be  excused  for such  disruption  and
relieved  of Service Levels.

		(iii) 	 	 Following
any  audit  under  this  Section  9.7,  Healthaxis  shall  conduct  (in  the  case  of
an  internal  audit),  or  request  its  external  auditors or  examiners to  conduct,
an exit  conference  with  TakCo  to  obtain  factual  concurrence with issues
identified  in the review.

		(iv) 	 	 Healthaxis
shall  use  reasonable  efforts  to  conduct  the  audit  efficiently and  expeditiously
and  at reasonable business hours.

		(e) 	 	  TakCo
Response. TakCo and Healthaxis shall meet to review each audit report promptly
after the issuance thereof. TakCo will respond to each audit report in writing
within thirty (30) days from receipt of such report. TakCo and Healthaxis
shall develop and agree upon an action plan to promptly address and resolve any
deficiencies, concerns and/or recommendations in such audit report, and TakCo
shall undertake remedial action in accordance with such action plan and the
dates specified therein. 

		(f) 	 	  Response
to Government Audits. If an audit by a governmental body or regulatory authority
having jurisdiction over Healthaxis or TakCo results in a finding that TakCo or
Healthaxis is not in compliance with any generally accepted accounting
principle or other audit requirement or any rule, regulation or law relating to
the performance of its obligations under this Agreement, TakCo or Healthaxis, as
the case may be, shall, within the time period specified by such auditor,
address and resolve the deficiency(ies) identified by such governmental body or
regulatory authority. 

	9.8
 	 	 Subcontractors

		(a) 	 	  Use
of Subcontractors. TakCo shall not subcontract any portion of its
responsibilities under this Agreement without Healthaxis’ prior written
approval, which may not be unreasonably withheld by Healthaxis. Prior to
entering into a subcontract with a third party for performance of any portion of
the Services, TakCo shall give Healthaxis reasonable prior written notice
specifying the components of the Services affected, the scope of the proposed
subcontract, and the identity and qualifications of the proposed Subcontractor
and other information Healthaxis may reasonably request in order to consider its
approval. 

		(b) 	 	 TakCo
Responsibility for Subcontractors. TakCo shall remain responsible for obligations
performed by approved Subcontractors and the conduct of Subcontractor personnel
to the same extent as if such obligations were performed by TakCo’s
employees. TakCo shall be Healthaxis’ sole point of contact regarding the
Services, including with respect to payment. 

15

 

	9.9
 	 	 Compliance
with Applicable Laws

	 	Healthaxis
shall  have the right to notify  TakCo of  changes in Laws  applicable  to  Healthaxis
that may  impact  the  means  or  manner  of  providing  the  Services.  TakCo  shall
make all  reasonable  efforts  required  to  implement  any  modifications  to  the
Services  in  accordance  with  the  Policy  and  Procedures  Manual prior to any
applicable  deadline  imposed  by  the  regulatory  or  other  governmental  body  having
jurisdiction  for such  requirement  or  change  subject  to an  equitable  adjustment
in the  Staffing Plan and Charges.

	10. 
 	 	 HEALTHAXIS
RESPONSIBILITIES

	10.1 
 	 	 Responsibilities

	 	In
addition  to  Healthaxis’ responsibilities  as  expressly set forth  elsewhere in
this  Agreement and  in the  Policy  and  Procedures  Manuals,  Healthaxis  shall be
responsible for the following:

		(a) 	 	 Healthaxis
shall designate, prior to commencement of the Services by TakCo, one individual
to whom all TakCo communications concerning this Agreement may be addressed (the
“Healthaxis Project Executive”), who shall have the authority to act on
behalf of Healthaxis in all day-to-day matters pertaining to this Agreement.
John M. Carradine is hereby designated as the initial Healthaxis Project
Executive. Healthaxis may change the designated Healthaxis Project Executive
from time to time by providing written notice to TakCo. Additionally, Healthaxis
will have the option, but will not be obligated, to designate additional
representatives who will be authorized to make certain decisions (e.g., regarding
emergency maintenance, execution of decision or change requests, etc.) if the
Healthaxis Project Executive is not available. Furthermore, and notwithstanding
the forgoing, TakCo shall be entitled to act on Services requests made on the
authority of all Healthaxis executives or their designated project managers as
set forth in the Policy and Procedures Manuals. 

		(b) 	 	  Healthaxis
shall  cooperate  with  TakCo  by,  among  other  things,  promptly  making  available,
as  reasonably  requested  by  TakCo,  management  decisions,  information,  approvals
and  acceptances  so  that  TakCo  may  accomplish  its  obligations  and
responsibilities hereunder. 

	11.
 	 	 CHARGES

	11.1
 	 	 General

		(a) 	 	 In
consideration of TakCo’s performance of the Services, Healthaxis agrees to
pay TakCo the applicable Charges set forth in Schedule D. Healthaxis agrees
that TakCo shall be compensated on the basis provided in this Agreement for all
Services rendered. The rates provided in Schedule D are generally on a per person
per month (PPPM) basis. The PPPM rates include all direct labor, general and
administrative costs, benefits, Workstations, telecom and data communications up
to but excluding the router at the Data Center, physical space and facility,
depreciation, insurance and fees, office expenses and an overhead fee factor. The
PPPM Charges for Personnel assigned to the Healthaxis account for only a
portion of any given month will be prorated based on the number of business days
worked by that individual during the month in question. 

		(b) 	 	 Except
as may be otherwise agreed to in writing by the Parties under special
circumstances, Healthaxis shall not pay any amounts for the Services to TakCo in
addition to those set forth in this Article 11 or Schedule D. 

	11.2
 	 	 Incidental
Expenses

	 	TakCo
acknowledges  that,  except  as  expressly  provided  otherwise  in  this  Agreement  or
other  instrument  signed  by an  authorized  representative  of  Healthaxis,  incidental
expenses  that  TakCo  incurs in  performing  the  Services  are included in  TakCo’s
Charges  and the  PPPM  rates  set  forth in  this  Agreement.  Accordingly,  such  TakCo
expenses  are  not  separately  reimbursable  by  Healthaxis  unless  Healthaxis  has
agreed  in  advance  and  in  writing to reimburse TakCo for the expense.

16

 

	11.3
 	 	 Taxes

	 	The
Parties’ respective  responsibilities  for taxes  arising  under or in connection
with this  Agreement  shall be as follows:

		(a) 	 	  Each
Party  shall  be  responsible  for any  franchise  or  privilege  taxes  on  its
business  and for  any  taxes  based  on its  net income or gross receipts. 

		(b) 	 	  Each
Party  shall  be  responsible  for any  sales,  lease,  use,  personal  property  or
other such taxes on  Equipment,  Software or  property  it  owns  or  leases  from a
third  party. 

		(c) 	 	  TakCo
shall be  responsible  for all sales,  service,  value-added,  lease, use, personal
property,  excise,  consumption  and  other  taxes  and  duties  payable  by TakCo on any
goods  or  services  acquired  and  used  or  consumed  by  TakCo  in  providing  the
Services  where  the  tax  is  imposed  on  TakCo’s  acquisition or use of such
goods or  services. 

		(d) 	 	  Healthaxis
shall  be  responsible  for  all  sales,  use,  excise,  value  added,  consumption,
service  or  other  taxes  assessed on the  receipt of the  Services as  a  whole,  or
on  any  particular  Service  received by Healthaxis from TakCo. 

		(e) 	 	  The
Parties  agree to  cooperate  reasonably  with  each  other  to  enable  each  to
determine  more  accurately  its  own  tax  liability  and to  minimize  such  liability
to  the  extent  legally  permissible.  TakCo’s  invoices shall separately state the
Charges  that are  subject to  taxation  and  the amount of taxes included  therein.
Each  Party will  provide  and make  available  to  the  other  any  resale
certificates,  information  regarding  out-of-state  or  out-of-country  sales  or use of
equipment,  materials or services,  and other  exemption  certificates  or  information
reasonably  requested by either Party. 

		(f) 	 	  Each
Party will  promptly  notify the other  of,  and  reasonably  coordinate  with  the
other,  the response to and  settlement  of,  any claim for taxes  asserted by
applicable  taxing  authorities  for  which  the  other  Party  is  responsible

hereunder.  With  respect to any claim  arising  out of a form  or  return  signed  by  a
Party  to  this  Agreement,  such  Party  will have the right  to  elect to  control  the
response  to and  settlement  of  the  claim,  but  the  other  Party  will have all
rights to  participate  in the  responses and  settlements  that are  appropriate  to
its  potential  responsibilities  or  liabilities.  If  either  Party  requests  the
other  to  challenge  the  imposition  of any tax,  the  requesting  Party will
reimburse  the other  for the  reasonable  legal fees and expenses  it  incurs.  A Party
will be  entitled  to a  proportional  share  of any tax  refunds  or  rebates  granted
to the extent such  refunds  or  rebates  are of taxes  that were paid by  it. 

		(g) 	 	  Each
Party  agrees  that  it  will  file  appropriate  tax  returns,  and  pay  applicable
taxes  owed  arising  from  or  related  to  the  Services  in  applicable  jurisdictions. 

	11.4
 	 	 New
Services and Projects

		(a) 	 	  The
Parties may discuss and  mutually  agree  the  addition  of New  Services  under  this
Agreement. 

		(b) 	 	  Subject
to Section  4.1(b),  Healthaxis  may  elect  to,  and  reserves  the  right  to,  solicit
and  receive  bids  from  third  parties  to  perform  New  Services.  If  Healthaxis
elects to use third  parties  to  perform  New  Services,  (i)  such  New  Services
shall  not  be  deemed  Services  under the  provisions of this  Agreement and  (ii)
TakCo shall  reasonably  cooperate with  such  third  parties  in  accordance  with
Section 9.2 to the extent  such  cooperation  does not impact  TakCo’s  ability to
provide  the Services. 

17

 

	11.5
      
 	 	
      Proration
 

	 	Any
periodic  charges that may become due under this  Agreement  are to be  computed  on a
calendar  month  basis,  and shall be prorated  for any partial  month  on a calendar day
basis.

	11.6

      
 	 	 Competitive
      Pricing
 

		(a) 	 	 The
pricing  hereunder  shall be subject to  adjustment  only  in  accordance  with  the
terms of this Agreement. 

		(b) 	 	 If
Healthaxis  believes  that  Healthaxis  could  obtain  services  similar  to  the
Services  at  the  time  from  unaffiliated  third  party  providers  in  the  global
marketplace  at  a  significantly  lower  price,  then  Healthaxis  and  TakCo  shall
work  together  in good  faith to amend this  Agreement  to provide for the
establishment  of  additional  offshore  processing  facilities,  including  additional
Indian  facilities,  at  a  reasonably  competitive  price  (taking  into  account  all
relevant  factors,  including  TakCo’s  unrecovered  amortized  start-up  costs  for
the  Indian  facility and transition expenses). 

	12.

      
 	 	 INVOICING
AND PAYMENT
 

	12.1
 	 	 Invoicing
 

	 	TakCo
will invoice Healthaxis after the first day of each month during the Term for
amounts attributable to Services performed during the preceding month. The
invoice will state separately applicable taxes owed by Healthaxis, if any, by tax
jurisdiction. Healthaxis will pay all undisputed invoiced Charges (subject toSection 12.3) in United States Dollars, by electronic funds transfer to an account
designated by TakCo or by check sent to TakCo at ______within thirty (30) days after
the date of Healthaxis’ receipt of the invoice. Each invoice shall be
accompanied by such details of Charges as are necessary to meet Healthaxis’ requirements
under government accounting rules and regulations, to validate volumes and fees,
and to satisfy Healthaxis’ internal accounting requirements. TakCo shall
include the pricing methodologies, calculations and related data utilized to
establish the Charges.

	 	To
the extent a credit  (including  credits  for past  overcharges,  etc.)  may  be  due  to
Healthaxis  pursuant  to  this  Agreement,  TakCo  shall  provide  Healthaxis  with  an
appropriate  credit  against  amounts then due and owing.

	12.2
 	 	 Set
Off
 

	 	With
respect to any amount to be paid or  reimbursed  by  Healthaxis  hereunder,  Healthaxis
may  set  off  against  such  amount  any  amount  that  TakCo  is  obligated to pay
Healthaxis hereunder.

	12.3
 	 	 Disputed
Charges
 

		(a) 	 	 Healthaxis
shall pay undisputed Charges when such payments are due under this Article 12
and Schedule D. If Healthaxis in good faith disputes whether TakCo
supplied staff to perform Services that are invoiced, whether the correct PPPM
rate is being applied, or has other disputes as to the amounts invoiced,
Healthaxis shall promptly notify TakCo in writing of any associated disputed
amount and the basis for Healthaxis’ dispute together with any appropriate
information supporting Healthaxis’ position. Healthaxis and TakCo shall
address disputes in accordance with the procedures set forth below and in Article 19. 

		(b) 	 	 Neither
the  failure to dispute any Charges  or  amounts  prior  to  payment  nor  the  failure
to  withhold  any  amount  shall  constitute,  operate  or be  construed  as a  waiver
of  any  right  Healthaxis  may  otherwise  have to  dispute  any  Charge  or  amount  or
recover  any  amount  previously  paid. 

18

 

		(c) 	 	 The
parties will work together in good faith to resolve any disputed amount. If
such dispute is not resolved within thirty (30) days after the original payment
due date, the parties will resolve such dispute as provided in Section 19.
Once resolved, Healthaxis will pay any disputed amounts with interest within five
(5) days. 

	12.4
 	 	 Late
Payment
 

		(a) 	 	 Invoices
not  paid  when  due  shall  bear  interest on the  outstanding  balance at the  rate of
prime  plus two  percent  (2.0%) per  annum  (unless  restricted  by law, in which  case
interest  shall  accrue at the highest  legal rate). 

		(b) 	 	 TakCo
shall not suspend or otherwise interrupt the provision of Services to
Healthaxis on the basis of Healthaxis’ withholding of amounts disputed in
good faith (which payment dispute shall be resolved pursuant to the dispute
resolution procedures in Section 12.3 and Section 19), unless authority to do so
is granted by Healthaxis in writing. TakCo may suspend performance under this
Agreement if Healthaxis is past due on payment of amounts other than those
disputed under Section 12.3 in good faith. If TakCo intends to suspend
performance, TakCo will provide Healthaxis with at least fifteen (15) days prior
written notice and an opportunity to cure before actually suspending Service. In
the event of a suspension of Service, TakCo shall resume performance as soon as
possible after the past due payment is made. 

	13. 	 	 HEALTHAXIS
DATA AND OTHER PROPRIETARY INFORMATION
 

	13.1
 	 	 Healthaxis
Ownership of Healthaxis Data
 

	 	Healthaxis
Data is and shall remain the property of Healthaxis and its customers, as applicable.
TakCo shall, at the times specified below, promptly deliver to Healthaxis in
the available format and on the media then used by TakCo to provide the
Services: (a) a copy of all Healthaxis Owned Materials and Healthaxis Data (or
such portions as shall be specified by Healthaxis) and (b) a copy of all Developed
Materials (or such portions as shall be specified by Healthaxis). Such deliveries
shall occur: (i) at any time at Healthaxis’ request, (ii) at the end of the Term
and upon the completion of all requested Transfer Assistance Services, or
(iii) with respect to particular Healthaxis Data or Healthaxis Owned Materials, at
such earlier date that Healthaxis requests such data. Thereafter, if requested by
Healthaxis, TakCo shall destroy or securely erase all copies of the Healthaxis
Data and Healthaxis Owned Materials in TakCo’s possession or under TakCo’s
control. TakCo shall not withhold any Healthaxis Data or any of the items
specified in this Section as a means of resolving any dispute. TakCo may
retain one (1) copy of the Healthaxis Data and Healthaxis Owned Developed
Materials to determine TakCo’s or its agents’ rights under this
Agreement. TakCo shall be relieved of its obligations to provide the Services
to the extent that its performance is prevented or hindered by the return,
erasure or destruction of Healthaxis Data or Healthaxis Owned Materials or
reports prepared pursuant to this Section 13.1. Except to the extent expressly
permitted under this Agreement, Healthaxis Data and Healthaxis Owned Materials shall
not be utilized by TakCo for any purpose other than the performance of Services
under this Agreement and shall not be disclosed (except as provided in Article 14),
sold, assigned, leased, licensed or otherwise provided to third parties by TakCo or
commercially exploited by or on behalf of TakCo or any TakCo Personnel. TakCo
shall not possess or assert any lien or other right against or to Healthaxis Data.

19

 

	13.2
 	 	 Safeguarding
Healthaxis Data
 

		(a) 	 	 TakCo
shall  establish  and  maintain  environmental,  safety  and  facility  procedures,  data
security  procedures  and  other  safeguards  against the  destruction,  loss or
alteration  of  Healthaxis  Data in  the  possession  of TakCo  which  are (i) no  less
rigorous  than  those  that  are  commercially  reasonable,  documented  and  enforced by
Healthaxis  as of the Effective  Date,  which  Healthaxis  will  provide  to  TakCo,  and
(ii)  no  less  rigorous  than  those  maintained  by  TakCo  for  its  own  information
of  a  similar  nature.  Healthaxis  shall  have  the  right  to  establish  backup
security  for  Healthaxis  Data  and  to  keep  backup  copies  of  the  Healthaxis  Data
in  Healthaxis’ possession  at  Healthaxis’ expense  if  Healthaxis  so
chooses.  No  media  on  which  Healthaxis  Data is  stored  may be used  simultaneously
to  store  data  of any  other  customer  of  TakCo. 

		(b) 	 	 As
part of the  Services,  TakCo  shall  be  responsible  for developing and  maintaining
procedures  for  recovering  back-up  copies  of Healthaxis Data. 

	13.3
 	 	 Confidentiality
 

		(a) 	 	 Proprietary
Information. TakCo and Healthaxis each acknowledges that the other possesses
and will continue to possess information that has been developed or received
by it, has commercial value in its or its customer’s business and is not in
the public domain. Except as otherwise specifically agreed in writing by the
Parties, “Proprietary Information” of Healthaxis or TakCo, or their
respective Affiliates shall mean all information and documentation that belongs to
Healthaxis and TakCo and such Affiliates, or agents, respectively, whether
disclosed to or accessed by such entity or Party in connection with this
Agreement and that: (1) has been marked “confidential” or “proprietary” or
with words of similar meaning at the time of disclosure by such entity or Party,
or (2) if disclosed orally or not marked “confidential” or “proprietary” or
with words of similar meaning at the time of disclosure, was subsequently
summarized in writing within sixty (60) days after disclosure by the disclosing
entity or Party and marked “confidential” or “proprietary” or
with words of similar meaning, or (3) consists of information and
documentation included within any of the following categories: (a) customer,
supplier or contractor lists, (b) customer, supplier or contractor information,
(c) information regarding business plans (strategic and tactical), markets and
operations (including performance), (d) information regarding administrative,
financial or marketing activities or results, (e) pricing information, (f)
personnel information, (g) products and product and service offerings (including
specifications and designs), (h) processes, (i) budgets and financial results,
(j) Healthaxis’s third party contracts to which TakCo has had access, (k)
Healthaxis Software and all Developed Materials, and (l) any information derived
from such information. 

		(b) 	 	 Obligations 

		(1) 	 	 TakCo
and Healthaxis shall not disclose, and shall maintain the confidentiality of,
all Proprietary Information of the other Party. Healthaxis and TakCo shall each
use at least the same degree of care to safeguard and to prevent disclosing to
third parties the Proprietary Information of the other as it employs to avoid
unauthorized disclosure, publication, dissemination, destruction, loss or
alteration of its own information (or information of its customers) of a similar
nature, but not less than reasonable care. The Parties may disclose Proprietary
Information to their Affiliates, auditors, attorneys and accountants. Either
Party may disclose Proprietary Information of the other Party to third parties
where: (i) use by such person or entity is authorized under this Agreement;
(ii) such disclosure is necessary for the performance of such person’s or
entity’s obligations under or with respect to this Agreement or otherwise
naturally occurs in such person’s or entity’s scope of responsibility;
(iii) the person or entity (and its applicable officers and employees) agree
in writing to assume the obligations substantially similar to those described in
this Section 13.3; and (iv) the disclosing Party assumes full
responsibility for the acts or omissions of such person or entity and takes
all reasonable measures to ensure that the Proprietary Information is not disclosed
or used in contravention of this Agreement. Each Party’s Proprietary
Information shall remain the property of such Party.

20

 

		(2) 	 	 Neither
Party shall:  (i) make any  use  or  copies  of,  or  use,  the  Proprietary  Information
of  the  other Party except as  contemplated  by  this  Agreement;  (ii)  acquire  any
right  in or  assert  any lien  against  the  Proprietary  Information  of  the  other
Party;  (iii)  sell,  assign,  transfer,  lease  or  otherwise  dispose  of  Proprietary
Information  to  third  parties  or  commercially  exploit  such  information,  including
through  derivative  works; or (iv)  refuse for any reason  (including a  default or
material  breach of this  Agreement  by the  other  Party) to  promptly  provide the
other Party’s  Proprietary  Information (including  copies  thereof) to the other
Party  if  requested to do so (in the case  of  Healthaxis  Data,  in the  form
reasonably  requested).  Upon  expiration  or any  termination  of  this  Agreement  and
completion of  each  Party’s  obligations  under  this  Agreement,  each Party
shall  return  or  destroy,  as the  other  Party  may  direct,  all  documentation  in
any  medium  that  contains,  refers to, or relates to  the  other  Party’s
Proprietary  Information,  and  retain  no  copies.  In  addition,  the Parties  shall
take  reasonable  steps  to  ensure that their employees  comply  with  these
confidentiality  provisions.

		(c) 	 	 Exclusions. Section 13.3(b)
shall not apply to any particular information that (i) is,
at the time of disclosure to it, in the public domain; (ii) after disclosure
to it, is published or otherwise becomes part of the public domain through
no fault of the receiving Party; (iii) is in the possession of the receiving
Party at the time of disclosure to it; (iv) is received from a third party having
a lawful right to disclose such information; or (v) is independently developed
by the receiving Party without reference to Proprietary Information of the
furnishing Party. In addition, the receiving Party shall not be considered to
have breached its obligations under this Section 13.3 for disclosing
Proprietary Information of the other Party as required to satisfy any legal
requirement of a competent government body, provided that, promptly upon
receiving any such request and to the extent that it may legally do so, such
Party advises the other Party of the Proprietary Information to be disclosed and
the identity of the third party requiring such disclosure prior to making such
disclosure in order that the other Party may interpose an objection to such
disclosure, take action to assure confidential handling of the Proprietary
Information, or take such other action as it deems appropriate to protect the
Proprietary Information. 

		(d) 	 	 Loss
of Proprietary Information. Each Party shall: (i) promptly notify the other
Party in writing of any possession, use, knowledge, disclosure or loss of such
other Party’s Proprietary Information in contravention of this Agreement;
(ii) promptly furnish to the other Party all known details and reasonably
assist such other Party in investigating and/or preventing the recurrence of
such possession, use, knowledge, disclosure or loss; (iii) reasonably cooperate
with the other Party in any investigation or litigation deemed necessary by
such other Party to protect its rights; and (iv) promptly use all commercially
reasonable efforts to prevent further possession, use, knowledge, disclosure or
loss of Proprietary Information in contravention of this Agreement. Each Party
shall bear any costs it incurs in complying with this Section 13.3(d). 

		(e) 	 	 No
Implied Rights. Nothing contained in this Section 13.3 shall be construed
as obligating a Party to disclose its Proprietary Information to the other
Party, or as granting to or conferring on a Party, expressly or impliedly, any
rights or license to any Proprietary Information of the other Party. 

		(f) 	 	 Survival.
The Parties’ obligations of non-disclosure and confidentiality shall survive
the expiration or termination of this Agreement for a period of five (5) years. 

21

 

	13.4 	 	 File
Access
 

	 	Healthaxis
will have  unrestricted  access  to,  and  the right to review and retain the  relevant
portion  of  all  computer  or  other  files  containing  Healthaxis  Data.  At no time
will any of such  files  or other  materials or  information be stored or held  in  a
form  or  manner  not  readily  accessible  to  Healthaxis.  TakCo  will  provide  to the
Healthaxis  Project  Executive and his  designees all  passwords,  codes,  comments,
keys,  documentation  and  the  locations  of any  such  files  and  other  materials
promptly  upon the request of  Healthaxis,  including  Equipment and Software keys and
such  information  as  to  format,  encryption  (if  any)  and  any  other  specification
or  information  necessary  for  Healthaxis  to  retrieve,  read,  revise  and/or
maintain  such  files  and  information.  Upon  the  request of the Healthaxis  Project
Executive,  TakCo  will  confirm  that,  to the  best of its  knowledge,  all  files  and
other  information  provided  to  Healthaxis  are  complete  and  that  no  material
element,  amount or other  fraction  of such files or  other  information  to which
Healthaxis  may request  access  or  review  has  been  deleted,  withheld,  disguised
or encoded in a manner  inconsistent  with  the  purpose  and  intent  of  providing
full  and  complete  access to  Healthaxis  as  contemplated  by  this Agreement.

	13.5
 	 	 HIPAA
Privacy and Security
 

	 	Healthaxis’ various
customers and/or their respective clients are considered "Covered
Entities" as that term is defined within the Administrative Simplification
provisions of the Health Insurance Portability and Accountability Act of 1996
("HIPAA"), including the HIPAA privacy regulation, 45 C.F.R. Part 160
and Part 164, Subparts A and E, the Standards for Privacy of Individually
Identifiable Health Information (“Privacy Rule”) and the HIPAA security
standards, 45 C.F.R. Part 164, Subpart C, the Security Standards for the
Protection of Electronic Protected Health Information (“Security Rule”).
In accordance with HIPAA, Healthaxis has entered into agreements with its
customers that meet the requirements of HIPAA, and which require that
Healthaxis enter into a similar agreement with TakCo prior to disclosing any
protected health information to TakCo. Simultaneously with the execution of this
Agreement, TakCo and Healthaxis shall enter into a mutually agreed Business
Associate Agreement (the “HIPAA BA Agreement”) with Healthaxis that meets
the requirements of HIPAA and the obligations of Healthaxis to its customers.
Healthaxis shall maintain the Policy and Procedures Manual so that the Services
if performed in accordance with the Manual shall comply with HIPAA, including the
Privacy Rule and Security Rule. TakCo and its Personnel shall be familiar with
the requirements of HIPAA set forth in the Policy and Procedures Manual and shall
strictly comply with such requirements, including the Privacy Rule and the
Security Rule, in performing the Services and with regard to all protected
health information that is disclosed to them by Healthaxis. Healthaxis will
provide TakCo with appropriate HIPAA awareness training materials for use in
complying, and appropriate training to comply, with this requirement.

	14.
 	 	 OWNERSHIP
OF MATERIALS
 

	14.1
 	 	 Healthaxis
Owned Materials
 

	 	Healthaxis
shall be the sole and exclusive  owner of  the Healthaxis  Owned Materials and all
intellectual  property  rights,  including  copyright,  in  all  Developed Materials.

	14.2
 	 	 Developed
Materials
 

		(a) 	 	 All
Developed Materials shall be considered works made for hire that are owned by
Healthaxis. If any such Developed Materials may not be considered a work made for
hire under applicable law, TakCo hereby irrevocably assigns to Healthaxis,
without further consideration, all right, title and interest, including any
copyright interest, TakCo may have to such Developed Materials, including United
States and foreign intellectual property rights, including copyrights. TakCo
acknowledges that Healthaxis and its successors and assigns shall have the
right to obtain and hold in their own name any intellectual property rights,
including copyright, in and to such Developed Materials. TakCo agrees to
execute any documents and take any other actions reasonably requested by
Healthaxis to effectuate the purposes of this Section 14.2 at Healthaxis’ expense.
Healthaxis grants to TakCo a non-exclusive, non-transferable, worldwide, limited
right and license to use, execute, reproduce, display, perform, modify and
distribute the Developed Materials for the sole purpose of providing the Services
during the Term and the Transfer Assistance Period pursuant to this Agreement;
provided that this license does not give TakCo the right, and TakCo is not
authorized, to sublicense such Developed Materials or use them for the benefit
of other customers or for any other purpose without Healthaxis’ prior written
consent. 

22

 

		(b) 	 	 TakCo
shall  provide  Healthaxis  with  the  source  code  and  documentation  for  all
Developed  Materials  which are  created  in  accordance  with  this  Agreement.  TakCo
shall  provide  documentation  for  all  Software  that  is  part  of  the  Developed
Materials  sufficient  to allow a reasonably  knowledgeable  and  experienced  systems
programmer  to  maintain  and  support  such  Materials;  (ii) the user  documentation
for  such Materials will  accurately  describe in  terms  understandable  by a typical
end user  the  functions  and  features  of  such  Materials  and  the  procedures  for
exercising  such  functions  and  features;  and  (iii)  all  Developed  Materials  shall
have  the  appropriate  source  code  which  matches  with  the  executable  object  code
version. 

	14.3
 	 	 Other
Materials
 

	 	This
Agreement shall not confer upon either Party intellectual property rights in
Materials of the other Party (to the extent not covered by this Article 14).

	14.4
 	 	 General
Rights
 

		(a) 	 	 Copyright
Legends. TakCo shall place the Healthaxis copyright legends and notices on all
Developed Materials. 

		(b) 	 	 No
Implied Licenses. Except as expressly specified in this Agreement, nothing in
this Agreement shall be deemed to grant to one Party, by implication, estoppel or
otherwise, license rights, ownership rights or any other intellectual property
rights in any Materials owned by the other Party or any Affiliate of the other Party. 

	14.5 	 	 Healthaxis
Rights Upon Expiration or Termination of Agreement
 

	 	As
part of the Transfer  Assistance  Services,  TakCo  shall deliver to Healthaxis  all
Developed  Materials  in  the  format  and  medium  in  use  by  TakCo  in  connection
with the  Services as of the date of such  expiration  or  termination,  and shall
ensure  that  all  delivered  source  code  matches  with  the then  current  production
version  of the  object  code as  delivered.  Following  confirmation  by  Healthaxis
that the  copies of the  Healthaxis  Owned  Materials  delivered  by  TakCo  are
acceptable  and  the  completion  by  TakCo  of  any  Transfer  Assistance  Services  for
which  such  Materials  are  required,  TakCo  shall  destroy  or  securely  erase  all
other  copies of such Materials  then in TakCo’s  possession  and cease using such
Materials for any purpose.

	14.5 	 	 Residuals
Clause
 

	 	Nothing
contained in this  Agreement  shall restrict  either  Party  from  the  use  of  any
generic  data  analysis and evaluation,  ideas, concepts,  know-how,  or  techniques
developed or learned by such Party in  connection  with  this  Agreement,  provided  that
in  doing so such  Party  does not  disclose  Proprietary  Information  to  third
parties  or  infringe  the  intellectual  property  rights of the other  Party or  third
parties  who  have  licensed  or  provided  materials to the other Party.

	15. 	 	 REPRESENTATIONS
AND WARRANTIES
 

	15.1
 	 	 Maintenance
 

	 	(a)

TakCo  warrants  that it  shall,  as part of  the  Services,  maintain  all  Workstations
that are  necessary  to  perform  the  Services:  (i)  in  good  operating  condition,
subject  to  normal  wear  and  tear;  (ii)  undertaking  repairs  and  preventive
maintenance  on  Workstations  for  which  TakCo  is  designated  to  be  responsible
hereunder  in  accordance  with  the  applicable  Workstation  manufacturer’s
recommendations  and  requirements;  and  (iii) performing  Third  Party  Software
maintenance  in  accordance  with  the  applicable  Software vendor’s written
documentation.

23

 

	 	(b)
Healthaxis  warrants that it shall,  as part  of  the  Services,  maintain  all
Equipment  that  Healthaxis  provides  that is  necessary  to  perform  the Services,
including  Healthaxis  Equipment:  (i)  in good operating  condition,  subject to normal
wear  and tear;  (ii)  undertaking  repairs and  preventive  maintenance  on such
Equipment for which  Healthaxis  is  designated  to  be  responsible  hereunder  in
accordance  with  the  applicable  Equipment  manufacturer’s  recommendations  and
requirements;  and  (iii) performing  Third  Party  Software  maintenance  in
accordance  with  the  applicable  Software vendor’s written documentation.

	15.2
 	 	 Non-Infringement
 

		(a) 	 	 Healthaxis
warrants  that any Materials and  other  items  provided  by or  specified  by
Healthaxis  for TakCo  under this  Agreement  and  Developed  Materials  shall  not
infringe,  or constitute an  infringement or  misappropriation  of,  any U.S.  or
foreign  patent,  copyright,  trademark  or  similar  proprietary  rights  conferred  by
contract  or by  common  law  or by  other  applicable  law of any third party 

		(b) 	 	 Except
for  Materials  or  other  items  covered  under  (a)  above,  TakCo  warrants  that  any
item  provided  by  and  used  by  TakCo to  provide  the  Services  shall  not
infringe,  or constitute an  infringement or  misappropriation  of,  any U.S.  or
foreign  patent,  copyright,  trademark  or  similar  proprietary  rights  conferred  by
contract  or by  common  law  or by  other  applicable  law of any third party. 

	15.3
 	 	 Authorization
 

	 	Each
Party  represents  and  warrants  to the  other  that:

		(a) 	 	 It
is a  corporation  or  partnership  duly  incorporated  or  organized,  validly  existing
and in  good  standing  under  the  laws  of  its  state  of  incorporation  or
organization; 

		(b) 	 	 It
has the  requisite  corporate  power  and  authority  to  execute,  deliver and perform
its obligations under this Agreement; 

		(c) 	 	 It
has  obtained  all  licenses,  authorizations,  approvals,  consents  or  permits
required  to  perform  its  obligations  under this Agreement  under all  applicable
federal,  state,  foreign  or  local  laws and under all  applicable  rules  and
regulations of all  authorities  having  jurisdiction  over  matters  related  to
performance under this Agreement; 

		(d) 	 	 The
execution,  delivery and  performance of  this Agreement and the  consummation  of the
transactions  contemplated  by  this  Agreement  have been duly  authorized by the
requisite  corporate  action  on the part of  such Party; and 

		(e) 	 	 The
execution,  delivery and  performance of  this  Agreement  shall  not  constitute  a
violation  of  any  judgment,  order  or  decree;  a  material  default  under  any
material  contract  by  which  it or  any of  its material  assets are bound;  or an
event  that  would,  with  notice or lapse of time,  or both, constitute such a default. 

	15.4
 	 	 Malicious
Code
 

	 	Each
Party  warrants  that  it  shall  take  commercially  reasonable  actions and
precautions to  prevent  the  introduction  and  proliferation,  and  reduce the effects,
of any  Malicious  Code into the  other Party’s information  technology  environment
or  any  system  used  by  TakCo  to  provide  the  Services.

24

 

	15.5 	 	 Disabling
Code
 

	 	TakCo
shall  not  insert  into  the  Software  or  Developed  Materials  any code which could
be invoked  to  disable  or  otherwise  shut  down  all  or  any  portion  of  the
Software  or  Healthaxis  systems.  With respect to any  disabling  code that may be part
of any Third  Party  Software,  neither  Party  shall  invoke or cause to be  invoked
such  disabling  code  at  any  time,  including  upon  expiration  or  termination  of
this  Agreement  for  any  reason,  without the other Party’s prior written consent.

	15.6
 	 	 Disclaimer
of Warranties
 

	 	EXCEPT
AS  OTHERWISE  EXPRESSLY  PROVIDED  HEREIN,  NEITHER PARTY MAKES ANY  WARRANTIES,
WHETHER EXPRESS  OR IMPLIED,  WITH REGARD TO ANY  SERVICES,  INCLUDING  ANY  IMPLIED
WARRANTIES  OF  MERCHANTABILITY  AND  FITNESS FOR A PARTICULAR PURPOSE.

	16.
 	 	 INSURANCE
AND RISK OF LOSS
 

	16.1
 	 	 Insurance
 

	 	TakCo
agrees to keep in full  force and  effect  and  maintain at its sole cost and  expense
the  following  policies  of  insurance  during  the  term  of  this  Agreement:

		(1) 	 	 Any
legally  required  workers’ compensation  or  equivalent  insurance  as  required
in  the  jurisdiction  in  which  the  TakCo  Facility  and TakCo  Personnel  are
located.

		(2) 	 	 Reasonable
Commercial  General  Liability  Insurance  and  Umbrella  Liability  Insurance in
accordance  with Indian law..

		(3) 	 	 Reasonable
Employee Dishonesty and  Fraud  Insurance in accordance with  Indian law.

	 	In
the  event  Healthaxis  requests  that  TakCo  increase  its  coverage  levels or
provide  for more  specific  coverages  that may be  necessary to meet a  specific
obligation  to  a  Healthaxis  customer  regarding  coverage to be  maintained  by
Healthaxis  and its  affiliates  providing  services on behalf of  such  customer,  then
TakCo  will  obtain  such more  specific  coverages,  and the  Parties  will  make an
equitable  adjustment  to the Charges if necessary to  cover the increased cost to TakCo.

	 	TakCo
shall upon Healthaxis’ request provide Healthaxis with certificates of
insurance evidencing compliance with this Article 16 (including evidence of
renewal of insurance) signed by authorized representatives of the respective
carriers for each year that this Agreement is in effect. Each certificate of
insurance shall include a statement that the issuing company shall not cancel,
nonrenew, reduce or otherwise change the insurance afforded under the above
policies unless thirty (30) days’ notice of such cancellation, nonrenewal,
reduction or change has been provided to Healthaxis

	 	The
obligation  of TakCo to  provide  the  insurance  specified  herein  shall  not  limit
in any  way any  obligation or liability of TakCo  provided  elsewhere  in this Agreement.

	16.2
 	 	 Risk
of Loss
 

	 	Except
as provided below, each Party shall be responsible for risk of loss of, and
damage to, any Equipment, Software or other Materials owned by it. Each Party
shall promptly notify the other of any damage (except normal wear and tear),
destruction, loss, theft or governmental taking of any item of Equipment, Software
or other Materials in the possession of such Party or on its premises of such
Party, whether or not insured against by such Party, whether partial or complete (“Event
of Loss”). For any Healthaxis Event of Loss, TakCo shall cooperate and
assist Healthaxis with respect to the repair or replacement as part of the
Services. TakCo shall be responsible for any such Healthaxis Event of Loss which
results from TakCo’s negligence or willful misconduct.

25

 

	17.
 	 	 INDEMNITIES
 

	17.1
 	 	 Indemnity
by TakCo
 

	 	In
addition  to  all  other  rights  and  remedies  Healthaxis  may have under this
Agreement  or at law  or in equity,  TakCo agrees to indemnify,  defend and  hold
harmless  Healthaxis  and  its  officers,  directors,  employees,  agents,  Affiliates,
successors  and  assigns  from any and all Losses and  threatened  Losses  arising  from
or  in  connection  with any third party claims of the following:

		(a) 	 	 TakCo’s
breach  of  its  obligations  with  respect  to  Healthaxis  Proprietary  Information; 

		(b) 	 	 Infringement
or alleged  infringement  of a  patent,  trade  secret,  copyright  or other  proprietary
rights  conferred  by contract,  common  law or by the  law  of the  U.S.  or  any  state
therein  or  any  foreign  jurisdiction  in  contravention  of  TakCo’s  warranties
in this Agreement; 

		(c) 	 	 Claims
by  government  regulators  or  agencies  for  fines,  penalties,  sanctions  or  other
remedies  arising  from  or  in  connection  with TakCo’s  failure to perform  its
responsibilities under this Agreement; 

	17.2

      
 	 	 Indemnity
by Healthaxis
 

	 	In
addition to all other  rights and  remedies  TakCo  may  have  under  this  Agreement  or
at  law  or in  equity,  Healthaxis  agrees to indemnify,  defend and  hold  harmless
TakCo  and its  officers,  directors,  employees,  agents,  Affiliates,  successors  and
assigns  from  any  Losses  and  threatened  Losses  arising  from or in  connection
with any third party  claims of the following:

		(a) 	 	 Healthaxis’ breach
of its obligations  with  respect to TakCo’s  Proprietary  Information  and
Healthaxis’ failure  to  adequately  protect its own Proprietary Information; 

		(b) 	 	 Infringement
or alleged  infringement  of a  patent,  trade  secret,  copyright  or other  proprietary
rights  conferred  by contract,  common  law or by the  law  of the  U.S.  or  any  state
therein  or  any  foreign  jurisdiction  in  contravention  of  Healthaxis’ warranties
in this Agreement; 

		(c) 	 	 Claims
by  government  regulators  or  agencies  for  fines,  penalties,  sanctions  or  other
remedies  arising  from  or  in  connection  with  Healthaxis’ failure  to  perform
its  responsibilities  under  this  Agreement  and with TakCo’s  performance  of
its  responsibilities  under this  Agreement  in  accordance  with  the  Policy  and
Procedures  Manual  or  other  direction  by  Healthaxis. 

	17.3
 	 	 Additional
Indemnities
 

	 	In
addition  to all other  rights and  remedies  the  Parties  may have under this
Agreement  or at law or  in  equity,  TakCo  and  Healthaxis  each  agree  to  indemnify,
defend and hold  harmless the other,  and  their  respective  Affiliates,  officers,
directors,  employees,  agents,  successors and assigns, from any  and all  Losses and
threatened  Losses to the extent  they  arise  from or in  connection  with  any of the
following:  (a) the  death or  bodily  injury  of any  agent,  employee,  customer,
business  invitee,  business  visitor  or  other  person  caused  by  the  negligence  or
other  tortious  conduct  of  the  indemnitor;  and (b) the damage,  loss or destruction
of any real or tangible  personal  property caused by  the  negligence  or  other
tortious  conduct  of the  indemnitor.

	17.4
 	 	 Infringement
 

	 	In
addition  to all other  rights and  remedies  the  Parties  may have under this
Agreement  or at law or  in equity, the Parties agree as follows:

26

 

		(a) 	 	 If
any  Materials or other item  provided or  specified  by  Healthaxis  to  TakCo  in its
provision of the  Services or the  Developed  Materials  (except  to the extent of TakCo’s
knowing  infringement  of third party rights  in  the  development  of  the  Developed
Materials)  becomes,  or  in  Healthaxis’ reasonable  opinion  is  likely  to
become,  the  subject  of  an  infringement  or  misappropriation  claim  or  proceeding,
Healthaxis  shall  promptly  take one of the  following  actions  at no  charge  to
TakCo:  (i) secure the right to  continue  using the  Materials,  item or Developed
Materials;  or  (ii) replace or modify the  Materials,  item  or  Developed  Materials
to  make  it  non-infringing,  provided  that  any  such  replacement  or  modification
will  not  materially  degrade  the  performance  or  quality  of the  affected
component  of the  Services.  TakCo  will  cooperate  with  and  assist Healthaxis in
taking such action. 

		(b) 	 	 Except
for items  covered  under Section (a)  above,  if any item  provided by and used by
TakCo to provide  the  Services  or any item  in the  Developed  Materials  to the
extent  of  TakCo’s  knowing  infringement  of third  party  rights  becomes  the
subject  of  an  infringement  or  misappropriation  claim or  proceeding,  TakCo shall
promptly  take one  of the  following  actions at no  additional  charge  to  Healthaxis:
(i)  secure  the  right to  continue  using the item;  or (ii)  replace  or  modify  the
item  to  make  it  non-infringing,  provided  that  any  such  replacement  or
modification  will  not  materially  degrade  the  performance  or  quality  of the
affected  component  of the  Services.  Healthaxis  will  cooperate  with  and assist
TakCo in taking such action 

	17.5
 	 	 Indemnification
Procedures
 

	 	With
respect to third party  claims,  the  following  procedures shall apply:

		(a) 	 	 Notice.
Promptly after receipt by any entity entitled to indemnification of notice of
the commencement of any civil, criminal, administrative or investigative action
or proceeding involving a claim in respect of which the indemnitee may seek
indemnification pursuant to this Agreement, the indemnitee shall notify the
indemnitor of such claim in writing. No delay or failure to so notify an
indemnitor shall relieve it of its obligations under this Agreement. Within
fifteen (15) days following receipt of written notice from the indemnitee
relating to any claim, but no later than five (5) days before the date on which
any response to a complaint or summons is due, the indemnitor shall notify the
indemnitee in writing that the indemnitor elects to assume control of the
defense and settlement of that claim (a “Notice of Election”). 

		(b) 	 	 Procedure
Following Notice of Election. If the indemnitor delivers a Notice of Election
within the required notice period, the indemnitor shall assume sole control over
the defense and settlement of the claim; provided, however, that (i) the indemnitor
shall keep the indemnitee fully apprised at all times as to the status of the
defense, and (ii) the indemnitor shall obtain the prior written approval of the
indemnitee before entering into any settlement of such claim imposing any
obligations or restrictions on the indemnitee or ceasing to defend against
such claim. The indemnitor shall not be liable for any legal fees or expenses
incurred by the indemnitee following the delivery of a Notice of Election;provided, however,
that the indemnitee shall be entitled to employ counsel at its
own expense to participate in the handling of the claim. The indemnitor shall not
be obligated to indemnify the indemnitee for any amount paid or payable by
such indemnitee in the settlement of any claim if (x) the indemnitor has
delivered a timely Notice of Election and such amount was agreed to without the
written consent of the indemnitor, (y) the indemnitee has not provided the
indemnitor with notice of such claim and a reasonable opportunity to respond
thereto, or (z) the time period within which to deliver a Notice of Election
has not yet expired. 

		(c) 	 	 Procedure
Where No Notice of Election Is Delivered. If the indemnitor does not deliver a
Notice of Election relating to any claim within the required notice period,
the indemnitee shall have the right to defend the claim in such manner as it
may deem appropriate, at the reasonable cost and expense of the indemnitor.
The indemnitor shall promptly reimburse the indemnitee for all such reasonable
costs and expenses as they are incurred. 

27

 

	17.6
 	 	 Subrogation
 

	 	In
the event that an indemnitor shall be obligated to indemnify an indemnitee
pursuant to Sections 17.1 through 17.3 or any other provision of this Agreement,
the indemnitor shall, upon payment of such indemnity in full, be subrogated to
all rights of the indemnitee with respect to the claims to which such indemnification
relates.

	18.
 	 	 LIABILITY
 

	18.1
 	 	 General
Intent
 

	 	Subject
to the specific provisions of this Article 18, it is the intent of the
Parties that each Party shall be liable to the other Party for any actual
damages incurred by the non-breaching Party as a result of the breaching Party’s
failure to perform its obligations in the manner required by this Agreement.

	18.2
 	 	 Force
Majeure
 

		(a) 	 	 Subject
to Section 18.2(c), no Party shall be liable for any default or delay in the
performance of its obligations under this Agreement if and to the extent such
default or delay is caused, directly or indirectly, by fire, flood, earthquake,
elements of nature or acts of God, wars, riots, civil disorders, rebellions or
revolutions, failure of telecommunications carriers, strikes or lockouts or labor
disputes by third parties, or any other similar cause beyond the reasonable
control of such Party (each a “Force Majeure”); provided that the
non-performing Party cannot reasonably circumvent the delay through the use of
commercially reasonable alternate sources, workaround plans or other means. A
labor dispute involving a Party and its own personnel shall not excuse such
Party from its obligations hereunder. 

		(b) 	 	 In
such  event  the  non-performing  Party  shall be excused  from  further  performance  or
observance  of  the  obligation(s)  so  affected  for as long as such  circumstances
prevail  and  such  Party  continues  to use  commercially  reasonable  efforts  to
recommence  performance  or  observance  whenever  and to  whatever  extent  possible
without  delay.  Any  Party  so  prevented,  hindered  or  delayed  in  its  performance
shall  immediately  notify the Party to whom  performance  is  due  by  telephone  (to
be  confirmed  in writing  within  five (5) days  of  the  inception  of  such  delay)
and  describe  at a  reasonable  level of  detail  the  circumstances  of  such  Force
Majeure  event. 

		(c) 	 	 The
Parties  shall  mutually  agree  on any  disaster  recovery and  business  continuity
Services to be provided  for  Healthaxis  by  TakCo.  Upon  the  occurrence  of  a  Force
Majeure  event,  TakCo shall,  to the extent  possible,  provide  Healthaxis  with
reasonable  cooperation  in  Healthaxis’ implementation  of  its  disaster  recovery
plan,  in  each  case  as  described  in the  Policy and  Procedures  Manual.  TakCo
shall  provide such  assistance  unless  prohibited  by the Force Majeure. 

		(d) 	 	 If
TakCo  fails  to  provide  Services  in  accordance  with this  Agreement  due to the
occurrence  of a Force  Majeure  event,  all  amounts  payable  to TakCo  hereunder
shall  be  equitably  adjusted  in  a  manner  such  that  Healthaxis  is not required to
pay any  amounts  for  Services  that  it  is  not  receiving. 

	18.3
 	 	 Limitation
of Liability
 

		(a) 	 	 NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, COLLATERAL,
CONSEQUENTIAL, EXEMPLARY, PUNITIVE OR SPECIAL DAMAGES, INCLUDING LOST PROFITS,
REGARDLESS OF THE FORM OF THE ACTION OR THE THEORY OF RECOVERY, EVEN IF SUCH
PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. This Section 18.3(a)
shall not apply in cases of (i) cases of fraud, theft or criminal acts by a
Party, or (ii) any breach, violation or failure to comply with the provisions of Article 13 of this Agreement. 

28

 

		(b) 	 	 Except
as  provided  below,  the  total  aggregate  liability  of  either  Party  for  claims
asserted  by the other  Party  under  or  in  connection  with  this  Agreement,
regardless  of the  form  of the  action  or  the theory of  recovery,  shall be
limited,  in  aggregate  to an  amount  equal  to  the  total  payments  received by
TakCo  pursuant  to  this  Agreement  and/or  the  Existing  Agreements  for one year
prior to the month  in which  the  first  event  giving  rise to  the liability occurred. 

		(c) 	 	 The
limitations of liability set forth in Section 18.3(b) shall not apply with
respect to (i) any obligation or failure by Healthaxis to pay any amounts due
or past due and owing to TakCo pursuant to the terms of the Agreement; (ii)
Losses by either Party for bodily injury or damage to real property or tangible
personal property; and (iii) either Party’s obligation to indemnify the
other Party as provided in Article 17. 

		(d) 	 	 Failure
by  a  Party  to  pay  valid  and  accurate  Charges due and payable  hereunder  will not
be  counted  toward  the  liability  cap. 

		(e) 	 	 The
following  shall be  considered  direct  damages  and  neither  Party  shall  assert
that  they  are  indirect,  incidental,  collateral,  consequential  or  special  damages
or lost  profits to the extent  they  result  directly  from  either  Party’s
failure to perform in  accordance  with this  Agreement: 

		(1) 	 	 Costs
and expenses of  implementing  a  workaround  in  respect  of  a  failure to provide the
Services or  any part thereof;

		(2) 	 	 Costs
and  expenses  of  replacing  lost, stolen or damaged  Equipment,  Software and Materials;

		(3) 	 	 Costs
and  expenses  incurred  to  procure  the  Services  from  an  alternate  source, to the
extent in  excess  of  TakCo’s  charges  under  this Agreement;

		(4) 	 	 Straight
time,  overtime or related  expenses  incurred by either Party,  including overhead
allocations for  employees,  wages and  salaries  of  additional  employees,  travel
expenses,  overtime  expenses,  telecommunication  charges  and  similar charges,  due to
failure of  TakCo to  provide  all or a portion  of  the  Services  incurred  in
connection  with  (1)  through  (4)  above; and

		(5) 	 	 Payments
or penalties  imposed by a  governmental  body  or  regulatory  agency for  failure to
comply  with  requirements or deadlines.

	19.
 	 	 CONTRACT
GOVERNANCE AND DISPUTE RESOLUTION
 

	19.1
 	 	 Informal
Dispute Resolution
 

	 	Prior
to the initiation of formal dispute resolution procedures under Section 19.2,
the Parties agree that the Healthaxis Contract Executive and the TakCo Project
Executive will attempt in good faith to resolve all disputes. In the event the
Healthaxis Contract Executive and the TakCo Project Executive are unable to
resolve a dispute in an amount of time that either Party deems reasonable
under the circumstances, such Party may refer the dispute for resolution pursuant
to Section 19.2 below upon written notice to the other Party.

	19.2 	 	 Binding
Arbitration
 

	 	Any
unresolved  controversy  or  interpretation  involving  this  Agreement or claim  arising
from the Services  shall  be  determined  by binding  arbitration  pursuant  to  the
commercial  arbitration  rules  of the  American  Arbitration  Association.  The
arbitration  shall be  held  in the  Dallas,  Texas  area.  If  the  Parties  cannot
agree on a  single  arbitrator  within  seven  (7) working  days of the  delivery of the
request for  arbitration,  then  three  (3)  disinterested  arbitrators  shall be used,
one to be chosen by each  of the Parties,  and the third  arbitrator  chosen by  the
first two  arbitrators  before  they  enter  upon  arbitration,  to  act  as  umpire.  If
either  Party  fails to appoint an  arbitrator,  or if the first two  arbitrators  fail
to  appoint  a  third  arbitrator,  within  seven  (7)  working  days  from the date such
obligation  arises,  either  Party  may  request  the  Arbitration  Association  to
appoint  the  necessary  arbitrator(s).  Judgment  upon any award  rendered by  the
arbitrators  may be entered in any court  having  jurisdiction  thereof.  The costs
arising  from such  arbitration  shall  be  borne  and  paid  as  the  arbitrator(s)
shall  direct.  The  Parties  shall  abide  by,  observe,  and  perform  all  directions,
decisions  and awards made by the  arbitrator(s)  and  submit in writing  information  as
the  arbitrator(s)  shall  request.  During or prior to the  arbitration,  the  Parties
shall not  prosecute  or  commence  any  suit or action  against the other  touching on
any of  the matters referred to the arbitrator(s).

29

 

	 	The
Parties agree that the only circumstance in which disputes between them shall not
be subject to the provisions of this Section 19.2 is where a Party makes a
good faith determination that a breach of the terms of this Agreement by the
other Party is such that the damages to such Party resulting from the breach
will be so immediate, so large or severe, and so incapable of adequate redress
after the fact that a temporary restraining order or other immediate injunctive
relief is the only adequate remedy. If a Party files a pleading with a court
seeking immediate injunctive relief which is challenged by the other Party and
the injunctive relief sought is not rewarded in substantial part, the Party
filing the pleading seeking immediate injunctive relief shall pay all of the
costs and attorney’s fees of the Party successfully challenging the pleading.

	19.3
 	 	 Continued
Performance
 

	 	Each
Party  agrees  that it shall,  unless  otherwise  directed  by the  other  Party,
continue  performing  its  obligations  under  this  Agreement  (including  providing
all  Services  and  Transfer  Assistance  Services)  while  any  dispute  is  being
resolved  unless and until the Term ends.

	19.4
 	 	 Governing
Law
 

	 	This
Agreement  and  performance  under  it shall be  governed  by and  construed  in
accordance  with the  applicable  laws  of  the  State  of  Texas,  without  giving
effect to the principles  thereof  relating to  conflicts of laws.

	20.
 	 	 TERMINATION
 

	20.1
 	 	 Termination
for Cause
 

		(a) 	 	 If
TakCo  commits a material  breach of this  Agreement,  which  breach  is  not  cured
within  thirty  (30)  days  after  written  notice  of  the  breach  from  Healthaxis,
unless  such  breach  cannot  be  reasonably  cured in such 30 day  period,  in which
case  Healthaxis  shall  not  have  the  right  to  terminate  if  TakCo  promptly
proceeds  within  such  30  day  period  to  commence  curing the breach  and  thereafter
provides  a  reasonable  workaround,  or  functionally  cures  the  breach,  within  60
days  from  receipt of the cure  notice (or such  longer  period as may be reasonably
necessary  when  the  breach  is of a  type  or  nature  that  cannot be cured  within
the 60 day  period),  then  Healthaxis  may,  by  giving  written  notice  to  TakCo,
terminate  the Term with  respect  to  all of  the  Services,  as of a  date  specified
in  the  notice  of  termination. 

		(b) 	 	 If
Healthaxis commits a material breach of this Agreement (except for material
breaches caused by Healthaxis’ failure to make undisputed payments as set
forth in Section 20.1(c) below), which breach is not cured within thirty (30)
days after written notice of the breach from TakCo, unless such breach cannot
be reasonably cured in such 30 day period, in which case TakCo shall not have
the right to terminate if Healthaxis promptly proceeds within such 30 day
period to commence curing the breach and thereafter provides a reasonable
workaround, or functionally cures the breach, within 60 days from receipt of
the cure notice (or such longer period as may be reasonably necessary when the
breach is of a type or nature that cannot be cured within the 60 day period),
then TakCo may, by giving written notice to Healthaxis, terminate the Term with
respect to all of the Services, as of a date specified in the notice of
termination. 

30

 

		(c) 	 	 If
Healthaxis  commits a material  breach of  this  Agreement  by  failing  to  make  an
undisputed  payment  to  TakCo  which is due  and payable  hereunder,  which breach is
not  cured  within  thirty  (30) days  after such  payment  becomes  due  and  payable,
then  TakCo  may,  by  giving  at  least  ten (10)  days prior  written  notice of its
intent to  terminate  for  non-payment,  terminate  the  Term with  respect  to all of
the  Services,  as of a  date  specified  in the  notice  of  termination  if  payment
of the  undisputed  amount  is  not  made  by  the  specified  termination date. 

	20.2
 	 	 Termination
for Business or Compliance Reasons
 

	 	This
Agreement may be  terminated  either in whole or  in part as to a  particular  portion
of the  Services  at any time by  giving  the  other  Party at least one  hundred  eighty
(180)  days’ prior  written  notice  designating  the  termination  date  if  there
are  changes  in  the  applicable  Laws  following  the  Effective  Date that  frustrate
the essential  purpose  of the Agreement.

	20.3
 	 	 Healthaxis’ Right
to Extend the Termination Date
 

	 	Except
in the case of a valid  termination  for cause  by  TakCo  (unless  Healthaxis  agrees
to  pay  for  Services  provided  by or for  TakCo in  advance  and  cures  any  payment
default  that  causes  such  termination),  Healthaxis may elect,  upon sixty (60)  days’ prior
written  notice,  to extend the effective  date  of  any  expiration/termination  or
Transfer  Assistance  one  time,  at  its  sole  discretion,  provided  that the total of
such  extension  will not  exceed one  hundred and eighty  (180) days  following  the
originally  specified effective  termination date  without TakCo’s prior written
consent.

	20.4
 	 	 Termination
upon a Reduction of TakCo’s Position in Healthaxis Inc.
 

	 	Healthaxis
may  terminate  this  Agreement by giving  TakCo  notice  of the  termination  at  least
90 days  prior  to  the  termination  date  specified  in  the  notice  if  Tak
Investments,  Inc.,  a  Delaware  corporation  neither  (i)  owns  in  the  aggregate
twenty-five  percent  (25%)  or  more  of the  common  stock of  Healthaxis  Inc. on a
fully-diluted  basis  (including  all  outstanding  shares  of  Healthaxis  common stock
and all  outstanding  securities  of any  type  that  are  or  may  become  exercisable
for or  convertible  into  shares  of  Healthaxis  common  stock),  nor (ii) owns in the
aggregate  seventy-five  percent  (75%) or more of the combined  number of (x)  shares of
Healthaxis  Inc.  common stock  (“Purchased  Shares”)  purchased  by  Tak
Investments,  Inc.  pursuant to that certain  Stock and Warrant  Purchase  Agreement
between  Healthaxis  and Tak  Investments,  Inc.  dated  February  23,  2005  (the  “Purchase
Agreement”),  (y) shares of  Healthaxis  Inc.  common  stock  subject  to  purchase
pursuant  to  the  “Purchased  Warrants” (as  defined  in the  Purchase
Agreement)  from  time  to  time  prior  to  the  expiration  date of each Purchased
Warrant,  and (z)  any shares of  Healthaxis  Inc.  common  stock issued  upon the
exercise  of the  Purchased  Warrants  from  time to time.

	21.
 	 	 GENERAL
 

	21.1
 	 	 Binding
Nature and Assignment
 

		(a) 	 	 Binding
Nature. This Agreement will be binding on the Parties and their respective
successors and permitted assigns. 

		(b) 	 	 Assignment.
Neither Party may, or will have the power to, assign this Agreement without
the prior written consent of the other, except that Healthaxis may assign its
rights and obligations under this Agreement to an Entity acquiring, directly or
indirectly, control of Healthaxis, or to an Entity into which Healthaxis is
merged or to an Entity acquiring all or substantially all of Healthaxis’ assets
where the Entity agrees to assume all of the rights and obligations of
Healthaxis hereunder, without the approval of TakCo, and that TakCo may assign
its rights and obligations under this Agreement to an Entity acquiring,
directly or indirectly, control of TakCo, or to an Entity into which TakCo is
merged or to an Entity acquiring all or substantially all of TakCo’s
assets where the Entity (i) acquires 25% or more of the outstanding common
stock of Healthaxis Inc. on a fully diluted basis and (ii) agrees to assume all
of the rights and obligations of TakCo hereunder, without the approval of
Healthaxis. 

31

 

		(c) 	 	 Impermissible
Assignment. Any attempted assignment that does not comply with the terms of this
Section shall be null and void. 

	21.2
 	 	 Entire
Agreement; Amendment
 

	 	This
Agreement,  including  any  Schedules  and  Exhibits  referred  to herein  and  attached
hereto,  each  of  which  is  incorporated  herein  for  all  purposes,  constitutes the
entire  agreement  between  the  Parties  with  respect  to  the  subject  matter
hereof.  There  are no  agreements,  representations,  warranties,  promises,  covenants,
commitments  or  undertakings  other  than those  expressly  set forth  herein.  This
Agreement  supercedes  all  prior  agreements,  representations,  warranties,  promises,
covenants,  commitments  or  undertakings,  whether  written or oral,  with respect to
the subject  matter  contained  in  this  Agreement.  No  amendment,  modification,
change,  waiver  or  discharge  hereof  shall be valid  unless in  writing  and  signed
by an  authorized  representative  of  the  Party  against  which such amendment,
modification,  change,  waiver  or discharge is sought to be enforced.

	21.3
 	 	 Compliance
with Laws and Regulations
 

		(a) 	 	 TakCo
shall  perform its  obligations  in a  manner that  complies  with Laws  applicable  to
its  business,  including  without  limitation  identifying  and  procuring  required
permits,  certificates,  approvals  and  inspections.  If  a  charge  of  non-compliance
by TakCo  with any such Laws  occurs,  TakCo  shall  promptly  notify  Healthaxis of such
charges in writing. 

		(b) 	 	 Healthaxis
shall  perform  its  obligations  under  this  Agreement  in  a  manner  that  complies
with  Laws  applicable  to  its  business,  including  without  limitation  identifying
and  procuring  required  permits,  certificates,  approvals  and  inspections.  If  a
charge  of  non-compliance  by Healthaxis  with any such  Laws  occurs,  Healthaxis
shall  promptly  notify TakCo of such charges in writing. 

	21.4
 	 	 Notices
 

	 	All
notices, requests, demands and determinations under this Agreement (other than
routine operational communications) shall be in writing and shall be deemed duly
given (i) when delivered by hand, (ii) one (1) day after being given to an
express courier with a reliable system for tracking delivery, (iii) when sent by
confirmed facsimile with a copy sent by another means specified in this Section 21.4,
or (iv) six (6) days after the day of mailing, when mailed by registered or
certified mail, return receipt requested, postage prepaid and addressed as follows:

	 	In
the case of Healthaxis:

	 	Healthaxis

7301 North State Hwy 161  
Suite 300  
Irving, Texas 75039  
Attention:  John M. Carradine,
President

	 	With
a copy to:

	 	Healthaxis

7301 North State Hwy 161  
Suite 300  
Irving, Texas 75039  
Attention:  J.  Brent  Webb,
SVP & General  Counsel

32

 

	 	In
        the case of TakCo:

        

	 	 
	 	__________________________

      __________________________

      __________________________
    

	

	 	A
Party may from time to time  change its  address or  designee  for  notification
purposes  by giving  the  other Party prior  written  notice of the new address  or
designee  and the date upon which the change will  become effective.

	21.5
 	 	 Counterparts
 

	 	This
Agreement  may  be  executed  in  several  counterparts,  all  of  which  taken  together
shall  constitute one single  agreement  between the Parties  hereto.

	21.6
 	 	 Headings
 

	 	The
article  and  section  headings  used herein are  for reference and  convenience  only
and shall not be  considered in the interpretation of this Agreement.

	21.7
 	 	 Severability
 

	 	In
the event  that any  provision  of this  Agreement  conflicts  with the law under  which
this  Agreement  is to be construed  or if any such  provision is held  invalid  or
unenforceable  by  a  court  with  jurisdiction  over the Parties,  such provision shall
be  deemed to be  restated  to  reflect  as nearly as  possible  the original  intentions
of the Parties in  accordance  with  applicable  law.  The  remaining  provisions of this
Agreement and the  application of  the  challenged  provision  to  persons  or
circumstances  other  than  those  as to  which it is  invalid  or  unenforceable  shall
not  be  affected  thereby,  and each such provision  shall be valid and  enforceable to
the full extent permitted by law.

	21.8
 	 	 Consents
and Approval
 

	 	Except
where  expressly  provided  as  being  in the  sole  discretion  of  a  Party,  where
agreement,  approval, acceptance,  consent, confirmation,  notice  or similar  action by
either Party is required  under  this  Agreement,  such  action  shall  not  be
unreasonably  delayed or  withheld.  An  approval  or  consent given by a Party under
this  Agreement  shall  not relieve the other Party from  responsibility  for  complying
with the  requirements  of this  Agreement,  nor shall it be  construed  as a waiver of
any rights  under  this  Agreement,  except as and to the  extent  otherwise  expressly
provided  in such  approval  or  consent.

	21.9
 	 	 Waiver
of Default; Cumulative Remedies
 

		(a) 	 	 A
delay or omission by either  Party  hereto  to  exercise  any right or power  under this
Agreement  shall  not be  construed  to be a  waiver  thereof.  A waiver  by either of
the  Parties  hereto of any of the  covenants  to  be  performed  by the  other  or any
breach  thereof  shall  not  be  construed  to  be a  waiver of any  succeeding  breach
thereof or  of  any  other  covenant  herein  contained.  All  waivers  must be in
writing  and signed  by the Party waiving its rights. 

		(b) 	 	 Except
as  otherwise  expressly  provided  herein,  all  remedies  provided for in this
Agreement  shall  be  cumulative  and  in  addition  to and not in  lieu  of any  other
remedies  available  to either Party at law,  in equity or otherwise. 

33

 

	21.10
 	 	 Survival
 

	 	Any
provision of this  Agreement  which  contemplates  performance  or  observance
subsequent  to  any  termination  or  expiration of this  Agreement  shall  survive  any
termination  or  expiration  of  this  Agreement and continue in full force and effect.

	21.11
 	 	 Publicity
 

	 	Neither
Party  shall use the other  Party’s  name or  mark  or  refer  to  the  other  Party
directly  or  indirectly  in  any  media  release,  public  announcement  or public
disclosure  relating to this  Agreement,  without the prior written  consent of the
other Party.  Notwithstanding  the foregoing,  either  Party may reference  and disclose
this  Agreement and  its  relationship  with the other Party in any public  filings when
required by law or in  accordance  with  customary or recommended practice.

	21.12
 	 	 Service
Marks
 

	 	Each
Party  agrees  that it shall not,  without  the  other Party’s prior written
consent,  use any of the  names,  service  marks or trademarks of each other or
Affiliates  in any of its  advertising  or  marketing  materials.

	21.13
 	 	 Export
 

	 	The
Parties  acknowledge  that  certain  Software and  technical  data to be provided
hereunder and certain  transactions  hereunder  may  be  subject  to  export  controls
under  the  laws  and  regulations  of  the  United  States and other  countries.  No
Party  shall  export  or  re-export  any such  items or any  direct  product  thereof  or
undertake  any  transaction  in  violation of any such laws or regulations.

	21.14
 	 	 Third
Party Beneficiaries
 

	 	This
Agreement is entered into solely  between,  and  may  be  enforced  only  by,  Healthaxis
and  TakCo.  This  Agreement  shall not be  deemed  to create  any  rights  or  causes
of  action in or on behalf of any  third  parties,  including  without  limitation
employees,  vendors and  customers of a Party,  or to  create any  obligations  of a
Party to any such third  parties.

	21.15
 	 	 Order
of Precedence
 

	 	In
the  event of a  conflict,  this  Agreement  shall  take precedence over the Schedules
attached hereto.

	21.16
 	 	 Further
Assurances
 

	 	Each
Party  covenants and agrees that,  subsequent to  the  execution  and  delivery of this
Agreement  and  without  any  additional  consideration,  each  Party  shall  execute
and  deliver  any  further  legal  instruments  and  perform  any  acts  that are or may
become  necessary to effectuate  the purposes of this  Agreement.

	21.17
 	 	 Acknowledgment
 

	 	The
Parties  each  acknowledge  that the  terms  and  conditions  of this  Agreement  have
been the subject  of active and  complete  negotiations,  and that such  terms  and
conditions  should  not be  construed  in  favor  of or  against  any  Party  by  reason
of the  extent  to  which  any  Party  or  its  professional  advisors  participated  in
the  preparation  of  this  Agreement.

[Signatures
Appear On Next Page]

34

 

     IN
  WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
  respective duly authorized representatives as of the Effective Date.

  

	Healthaxis,
      Ltd.	 	Healthcare
      BPO Partners, L.P.
	 	 	 	 	 
	 	 	 
	 	 	 
	By: Healthaxis
      Managing Partner, LLC	 	By: Healthcare
      Investments, LLC
	 	 	 	 	 
	 	By: /s/ James W. McLane	 	By: /s/
      Sharad Tak
	 	James W. McLane	 	 	Name: Sharad Tak
	 	President	 	 	Title: Managing Member
	 	May 13, 2005	 	 	May 13, 2005

35

SCHEDULE A

KEY TakCo
POSITIONS AND CRITICAL PERSONNEL

TakCo Project
Executive: Siva Hariharan

Onsite
Executive in India: To be named later

Production
Manager in India: To be named later

SCHEDULE B

SERVICES

Part I.
Production Center Resource Services

Phase I. TakCo
and Healthaxis shall provide the production facility, operating environment, and
infrastructure as set forth in the Offshore Production Center Implementation Project
Requirements Document dated December 20, 2004, as revised on February 2, 2005 (the “Production
Center Requirements Document”), a copy of which is attached hereto as Exhibit I
and incorporated herein by reference for all purposes. TakCo and Healthaxis agree that
the job descriptions contained in the Production Center Requirements Document are
guidelines and evaluation criteria only. Healthaxis shall have the right to request
removal of any Personnel hired by TakCo that are not capable of performing their
essential duties and responsibilities in accordance with Section 8.4(b). The
descriptions of supervisory responsibilities, qualifications, education and/or
experience, mathematical skills, reasoning ability and other skills are goals and
relevant for performance reviews, but not pre-requisites for employment. The initial
transition will include the resources to process 10,000 claims per day as specified in
the Production Center Requirements Document requiring an initial 8 to 12 week ramp
up following the Effective Date. Unless otherwise agreed, the minimum required
resources for the Agreement shall be those required to process 10,000 claims per day.

Phase II.
Following the initial ramp up and once the production has stabilized and is meeting
Service Levels and productivity standards, additional claim volume will be added by
Healthaxis, and the additional resources to support the increasing volumes will be
provided by TakCo as requested by Healthaxis in accordance with the Staffing Plan.
It is anticipated that all Healthaxis data capture processing volumes (existing
and subsequent new business) will be processed at this facility except for the
following:

		(i) 	 Processing
that is required by Healthaxis’ customers to be conducted in the U.S. will be
handled at the Healthaxis U.S. production center(s); and

		(ii) 	 Approximately
35,000 claims per day will continue to be processed in the Healthaxis Jamaica production
center.

The specific
job requirements and qualifications for the production Personnel, as well as detailed
specifications for the required equipment, connectivity, and  infrastructure to be
provided by TakCo are set forth in the Production Center Requirements Document.

Part II.
Data Center Resource Services

Healthaxis
shall propose a detailed Data Center Requirements Document (herein so called) within 60
days after the Effective Date for TakCo’s review and  approval.  Assuming the
provisions of Section 11.6 of the Agreement are met, the Healthaxis data center in Texas
will be relocated to the TakCo facility in  Virginia during the third or forth quarter of
2005 in accordance with such Data Center Requirements Document, including that the
Healthaxis equipment and  software will be migrated to the TakCo data center in Virginia.

Part III.
Technical and Professional Resource Services

Healthaxis
shall propose a detailed Technical and Professional Resource Transition Plan (herein so
called) within 60 days after the Effective Date for TakCo’s  review and approval.
Assuming the provisions of Section 11.6 of the Agreement are met, the functions currently
performed by approximately 37 Healthaxis staff  in Texas will be either eliminated or
transferred to personnel to be provided by TakCo.  The specific transfer opportunities
and resulting estimated cost  savings are more particularly specified in the Healthaxis
– Annual Cost Transfer Opportunity Estimates document dated February 16, 2005.  A
significant number  of the transfer opportunities will be undertaken, but there will be
some positions that can and will be eliminated all together.  During the first 12 months
following

the Effective
Date, Healthaxis intends to either eliminate or transfer  approximately 20 of these 37
positions.  Several of these 20 positions will be  eliminated or transferred as part of
the data center transfer to be undertaken as  provided in Part II above, and the
remainder will be either eliminated or  transferred to  Personnel to be provided by TakCo
at the TakCo Facility in India.  Once the functions  initially transferred are proven and
stable, the additional  targeted functions will be  reviewed and either eliminated or
transferred. The Technical and Professional Resource  Transition Plan will specify the
detailed  qualifications and requirements for the TakCo  Personnel necessary to perform
these Services, as well as the infrastructure requirements  to be provided by  TakCo.

SCHEDULE C

SERVICE LEVELS
AND PERFERMANCE CREDITS

Part
  I. Production Center Resource Services

	 	Healthaxis
        shall train and supervise the TakCo Personnel so as to achieve the Service
        Levels.

        

		(a) 	
      Turnaround Time (“TAT”).

	 	TAT
shall mean the percentage of claim form  processing  completed  within the Service Level
for a given day  calculated  pursuant to the Policies and  Procedures Manual.  The TAT
Service Level calculation  begins with the receipt of an individual claim (attachment,
correspondence or other item to be  processed) at the processing facility.

	TURNAROUND
        TIME

	

        SERVICE LEVELS 

        (There are 2 separate TAT Service Levels as follows)

	
        95% of Claim Form Processing completed within 24 hours

        100% of Claim Form Processing completed within 48 hours

	TURNAROUND
        TIME

	
PERFORMANCE
        PENALTY (Service Level Credit) AMOUNT

	
        For each 1% decrease in the applicable TAT Service Level, 0.25% of the
        applicable TakCo Charges incurred for the day (total PPPM 

        Charges for the month divided by business days in the month) in which
        TakCo did not provide the Services and prevented Healthaxis 

        from achieving the applicable TAT Service Level 

		(b) 	 Quality
Assurance.

	 	Field
Accuracy Measurement. Field Accuracy shall mean the average percentage of the
applicable Field Errors by Field Category (i.e. Critical, High or Normal) compared to
the total Fields by Field Category found in the claims processed during a given week.
Field Categories will be designated in the Data Entry keying instructions for each
Healthaxis client to be delivered to TakCo Personnel working on that client’s
claims. The measurement is calculated as a percentage, the numerator of which is the
total Field Errors by Field Category detected, and the denominator of which is the
total Fields by Field Category processed by TakCo during the week. An “Error Field” shall
mean a field not corrected by the applicable automated keying rules but which is
detected by an auditor during visual verification. In calculating the average
percentage of applicable Field Errors by Field Category, a minimum of 5% of all claims
processed will be audited. Only the 5% audited will be used for the Field Accuracy
Measurement.

	Quality
        Assurance

	

        Service Levels 

        (There are 3 separate Quality Assurance Service Levels as follows)

	Critical
        Field Accuracy 99.5%

	High
        Field Accuracy 98.5%

	Normal
        Field Accuracy 97.5%

	
Performance
        Penalty Amount

	For
        each 0.5% decrease in the applicable Quality Assurance Service Level,
        0.25% of the applicable monthly Charges incurred during the

        month in which TakCo did not provide the Services and prevented Healthaxis
        from achieving the applicable Quality Service Level. 

		(C) 	 Maximum
Penalty Amount. The maximum aggregate amount of Service Level Credits in a given month
shall not exceed 6.0% of the Charges for that month.

Part II.  Data
Center Resource Services

Healthaxis
shall propose the Service Levels and Service Level Credits in the Data Center
Requirements Document to be developed in accordance with Part II of  Schedule B for
mutual agreement.

Part III.
Technical and Professional Resource Services

Healthaxis
shall propose the Service Levels and Service Level Credits in the Technical and
Professional  Resource  Transition Plan to be developed in accordance  with Part III of
Schedule B for mutual agreement.

SCHEDULE D

TakCo
CHARGES

All rates are
applicable for the Term of this Agreement except as may be provided in the Agreement.

Part I.
Production Center Resource Services Charges

	 	Phase
I and Phase II. The total monthly Charge for the full service production center shall be
equal to the total PPPM rate for the number of Data Entry Operators dedicated to the
Healthaxis account during the month. The PPPM rate is as follows:

	 Description
	PPPM

	Data
        Entry Operator (Keyer)
	$1,063.17

	 	The
PPPM rate shown above is fully loaded and includes all direct labor,  general and
administrative  costs,  benefits,  equipment,  telecom and data  communications up to but
excluding the router at the Data Center, physical space and facility,  depreciation,
insurance and fees, office expenses and  an  overhead  fee  factor.  The  Facility
Director,  Production  Manager(s)  and  Floor  Supervisor(s)  as well as all  equipment,
telecom  and data  communications  up to but excluding the router at the Data Center,
physical space and facility  requirements  as specified in the  Production  Center
Requirements Document are included in the PPPM rate for Data Entry Operators and are
provided by TakCo at no additional charge.

	 	Healthaxis
will provide the servers to be placed on site at the production center as specified in
the Production Center Requirements Document.

	 	Each
Party will pay its own start up costs, including travel and living expenses.

Part
  II. Data Center Resource Services

	 	The
all-in charge for the hosting and support of the Healthaxis data center at the Virginia
facility will be proposed by TakCo following  approval of  the Data Center Requirements
Document.  The final monthly charge shall be mutually agreed upon prior to commencement
of the move.

	 	Each
Party will pay its own start up costs, including shipping, travel and living expenses
following relocation of  the Data Center be relocated.

Part III.
Technical and Professional Resource Services

	 	The
PPPM rates for the following resources are as follows:

	Description
	PPPM

	Computer Operations	$2,750.00

	Network/System Administrators
      	$3208.33

	Jr. Developers/Programmers
      (3 - 7 years experience)	$2,841.67

	Sr. Developers/Programmers
      (7 plus years experience)	
        $3,025.00

	Business
      Analysts	$2,841.67

	 	Each
Party will pay its own start up costs, including travel and living expenses.

All PPPM rates
shall be subject to an annual  increase of the greater of two and one half percent (2.5%)
or the  unadjusted  Consumer  Price Index  (“CPI-U”),  as  published in the
“Summary Data from the Consumer Price Index News Release” by the Bureau of
Labor Statistics,  U.S.  Department of Labor, For All Urban Consumers,  All Cities
Average, All Items, 1982-84=100 excluding food and fuel.

SCHEDULE E

TakCo
FACILITIES

Part I.
Production Center Resource Services

Facility
Requirements for these Services are specified in the  Production Center Requirements
Document attached hereto as Exhibit I.

Part II. Data
Center Resource Services

Final
requirements will be contained in the Data Center Requirements Document.  The following
facility requirements are based on current known information:

	 	1.
300 sq feet of space.

	 	2.
2 of 30amp 208 electrical circuits

	 	3.
30 of 20amp 110 electrical circuits

	 	4.
Internet  connection - 2 10meg Ethernet  connections  preferred,  setup in a redundant
mode. Two redundant ISP's providing  redundancy is a must (1  main and 1 standby for
redundancy), with an estimated committed bandwidth rate of 3 - 5mbs (exact committed rate
to be determined later).

	 	5.
One class C of internet IP addresses.

	 	6.
About 16-17 cross connects to carriers for outside lines - i.e. T1's etc.. To clients and
other Healthaxis facilities.

	 	7.
2 analog phone lines in the cage.

	 	8.
Operator assistance to reboot servers etc.  We will need the ability to call someone for
assistance.

	 	9.
Data center physical security and redundancy should include:

		o 	 Facility
should meet N+1 redundancy standards on all facility and environmental systems.

		o 	 Modern
fire detection and suppression systems should include early detection and dry-pipe
suppression systems.

		o 	 Internet
connection  should be provided by dual active  connections  from 2 ISP's or by one
provider with fully  redundant  separate path sonnet ring  connections to facility.

		o 	 Fully
redundant PDU/UPS systems should deliver dual (A-B) circuits to our equipment.

		o 	 Redundant
diesel generators for long term power outage coverage.

	 	10.
Security systems should include:

		o 	 On-site
24x7 security staff

		o 	 Photo
ID for building access

		o 	 Sophisticated
computerized access control system

		o 	 Biometric
scanning or other equivalent positive ID verification required for access

		o 	 Digital
video surveillance throughout the facility

Part III.
Technical and Professional Resource Services

Final
requirements will be contained in the Technical and Professional Resource Transition
Plan.  Current known requirements are as follows:

	 	1.
All functions that move to India will need data  communication to the Data Center.  For
these functions to move to India TakCo will need additional  bandwidth above and beyond
that to be provided for the Part I Services,  and consideration  will need to be made so
that Image traffic from the Part I  Services will not impede the other functions from
operating.

	 	2.
Operations functions in India

	 	Equipment
to be provided by TakCo will include:

		o 	 Standard
PC's running XP or windows 2000

		o 	 SecureCRT
terminal emulation software

		o 	 PC
anywhere software

	 	3.
Unidata Claims/Admin Development in India

	 	Equipment
in India needed will include:

		o 	 Standard
PC's running XP or windows 2000

		o 	 SecureCRT
terminal emulation software

		o 	 RS/6000
AIX system running Unidata with licenses for Developers in India (Healthaxis will ship
this Equipment and provided the Unidata licenses)

	 	4.
..net development in India

	 	Equipment
in India needed will include:

		o 	 Standard
PC's running XP

		o 	 .net
development  software and license for each developer  (Healthaxis to make reasonable
efforts to transfer/assign to TakCo any excess .net licenses  it may have when possible)

		o 	 Windows
Server running MS SourceSafe software

SCHEDULE F

Healthaxis
Equipment, Healthaxis Owned Materials and Healthaxis Licensed Materials

To be specified
prior to the Effective Date

	 		 
	 	Offshore
        Production Center

        Implementation Project

        Requirements Document 
	 

	
Acceptor
	 
	John Carradine
	
	 	 
	Project Manager
	 	Bill Malone
	
	 	 
	Date
	 	12/20/2004
	
	 	 
	Project
	 	5946

	 	Copyright
Notice

	 	Copyright
© 2004-2005  Healthaxis  LTD.  This  document  is  unpublished  and the  foregoing
notice is  affixed  to protect  Healthaxis LTD in the event of inadvertent publications.

	 	All
rights  reserved.  No part of this  document  may be  reproduced  in any form,  including
photocopying  or  transmission  electronically  to any computer,  without prior written
consent of Healthaxis LTD. The information  contained in this document  is  confidential
and  proprietary  to  Healthaxis  LTD. and may not be used or disclosed  except as
expressly  authorized  in  writing by Healthaxis LTD.

	 	Trademarks

	 	Other
product names mentioned in this document may be trademarks or registered  trademarks of
their  respective  companies and  are hereby acknowledged.

	 	Revision
History

	Version/

      Release 	Date	Description
      of Revisions
	1.0	12.20.2004	Initial Draft ...Bill
      Malone
	2.0	02.01.2005	Revised to conform
      to Remote Resourcing Agreement

	 	Page
        i
	2/1/2005

	 	Superseded
Deliverables

	 	This
document/release supersedes the following deliverables:

	Version/

      Release 	Date	Description
      of Revisions
	 	 	 
	 	 	 

	 	Page
        ii
	2/1/2005

Table of
Contents

	1.	OVERVIEW	6

	2.	OBJECTIVES	7

	2.1	Define Production
      Center Requirements 	7

	2.2	Additional Questions	7

	3.	ORGANIZATION	8

	4.	STAFFING REQUIREMENTS	10

	4.1	Requirements	10

	4.2	Ramp Up Period	11

	4.3	Staffing Summary	11

	5.	OPERATING HOURS	12

	6.	FACILITY	13

	7. 	SECURITY	14

	The
      affiliate is responsible for meeting the security requirements	14

	8.	EQUIPMENT	15

	8.1	Workstations	15

	8.2	Servers	15

	9.	DATA LINES	16

EXHIBIT A

EXHIBIT B

EXHIBIT C

EXHIBIT D

EXHIBIT E

	 	Page
        iii
	2/1/2005

   

  

	 	 	17

	10.	OCCUPATIONAL/TECHNICAL
      KNOWLEDGE	 
	 	 	20

	 	PHYSICAL DEMANDS	21

	 	QUALIFICATIONS	28

	 	COMPUTER SKILLS	28

	 	PHYSICAL DEMANDS	28

	 	WORK ENVIRONMENT	29

	 	Page
        iv
	2/1/2005

	
1 	
 Overview

	 	Healthaxis
currently operates three production centers to support its BPO services offerings.

	 	Mail
and scan center in Las Colinas, Texas
Data capture center in Castle Dale, Utah
Data
capture center in Montego Bay, Jamaica

	 	Healthaxis
intends to  establish a third data  capture  center in India using an  affilaite.  This
center is being added for the  following reasons:

	 	Additional
capacity to meet growth demands
Enhanced production scalability for new business

Improved disaster recovery and business continuity capability
Average production cost
improvements

	 	This
center will operate using Healthaxis’ proprietary  software  technology systems and
our established  production  processes,  procedures,  and  standards  employed at the
company’s  other  production  centers.  It will,  for all intent and  purposes,  be
identical in operation to our other centers.

	 	A
Healthaxis affiliate will be responsible for establishing the production facilities,
infrastructure, and employee resources at  the India  location to support  production
operations.  This  document is a  high-level  requirements  review for the  operating
environment of the proposed India center.

	 	
        Page 6
	2/1/2005

	
      2. 
      Objectives

2.1  Define
Production Center Requirements

	 	This
document  includes  descriptions of the  organizational  requirements for the India
Center.  It has detailed  requirements  information such as job descriptions,  staffing
levels, facility design,  security,  computer hardware, data communications and  other
information  needed to  create a  successful  operating  environment.  The  purpose  of
this  review  is to  provide  an  understanding  of the current  operating  environment
and to introduce the  production  procedures  and processes that will be  implemented in
the India center.

	
      2.2 
      Additional Questions

	 	Additional
questions should be directed to the following individuals:

	 	John
Carradine
President
(972) 443-5223
jcarradine@healthaxis.com

	 	Bill
Malone
VP of Operations
435-381-5152
bmalone@healthaxis.com

	 	
        Page 7
	2/1/2005

	
3. 	
 Organization

	 	The
current  production  organization  is outlined  below.  The  proposed  India  center has
been  included.  The  Director of  Production is responsible for ensuring that in
aggregate,  the production  centers  maintain the resources  required to support
Healthaxis’ BPO  operations.  This  includes  ensuring the  facilities  are properly
maintained  and that both  personnel and  technical  resources are  available to meet the
production  schedule in accordance  with the  contractual  service  levels the  Company
has with each of its customers.

   

  	 	The
Facility  Director for the India center will be  responsible to the US based  Director of
Production in  accomplishing  the  production  operations  assigned to the center. The
following  organization  chart outlines the initial  organization of a data  entry
center.  For a 10,000 claim per day  operation,  we believe the center is manageable  by
a single  production  manager as  shown in the Phase I organizational  chart below.
However,  as the business grows and volume increases the organization  would  change to
include other job functions including supervisors,  auditors, unit acceptance testing
personnel, technical personnel,  etc... Accordingly, a full organization chart is also
shown below as Phase II.

	 	Phase
I Organizational Chart:

   

	 	Page
         8
	2/1/2005

	 	Phase
II Organizational Chart:

   

	 	Facility
Director – the Facility Director is responsible for the day-to-day operation of the
center.

	 	Production
Manager – the Production Manager is responsible for coordinating all the
production resources to meet the production goals of the center. The following
personnel support the Production Manager in this task:

	 	Floor
Supervisors – Floor Supervisors are responsible for managing data entry operators.
One supervisor is assigned for each 20-25 data entry operators.

	 	UAT
– User Acceptance Testers – normally a center will have 1-2 UAT operators. It
is the responsibility of the UAT operators to test new system applications and updates
to current applications.

	 	Quality
Control – the quality control operators are responsible for conducting the
daily audits of the work processed. Experienced and reliable data entry operators are
assigned to perform this function.

	 	Technical
and Admin Manager  – Typically, there is a Technical and Admin Manager who is
responsible for providing the technical support for the center. This requires
minimal technical knowledge because the Healthaxis technical support team in Dallas
provides the majority of support. For the India center, it is assumed that these
limited technical services will be provided by other resources that are available
to Healthaxis at the site as some of the other technical functions are moved from
Dallas to India. Under the master Remote Resourcing Agreement, the administrative
functions normally performed by the Technical and Admin Manager, including human
resources support, payroll, ordering of supplies and equipment, and other
day-to-day administrative support are the responsibility of the affiliate. As a
result, this position has been eliminated from the model for the India center.

	 	Page
         9
	2/1/2005

4.  Staffing
Requirements

4.1
Requirements

	 	The
following staff are required to support the processing of 10,000 HCFA 1500 claims per day
at full productivity:

		1. 	 Facility
Director – The staffing requirement to support 10,000 HCFA 1500 claims per day is
minimal.  At this staffing level  the Facility Director also assumes the responsibilities
of the Production Manager, Floor Supervisor and has liaision  responsibility for
technical and administrative functions.

		2. 	 Data
Entry Operators – to support the processing of 10,000 HCFA 1500 claims per day at
standard productivity of 72 claims  per hour and assuming a 15% buffer staff, a total of
20 data entry operators is required.

	 	This
plan further assumes that the following strategy will be implemented to support the data
capture operations:

		1. 	 The
center will maintain a core team that supports individual customer data capture
requirements.

		2. 	 The
core team will be staffed  sufficiently  to process the daily average  volume.  A 15%
buffer staff to support daily volume  variances and absentee personnel augments the core
team.

	 	The
model is reviewed  weekly to  determine  any changes in  production  speed and volume
trends and the impact on  staffing.  Required staffing level decisions are made each week.

	 	Training
for key entry operators begins at hiring.  All applicants for data capture  positions
must first pass a test to assess  their data capture skills and learning  capability.
The Production Manager interviews  qualified  applicants.  Training of new  employees
begins with 10 to 20 hours of classroom  training.  This training consists of proper
security measures,  the handling  of sensitive medical information, learning various
claim types, and the data capture requirements for the specific client.

	 	Upon
successful  completion of the classroom  training the new employee is assigned to a
workstation  for additional  training.  This phase of the  training  includes  processing
live  documents  with a 100% audit of their work.  The  training  program is  designed to
ensure that quality levels are achieved before the focus changes to productivity.

	 	The
data capture training and retention requirements are attached hereto as Exhibit E.

	 	Page
         10
	2/1/2005

	 	The
Facility Director must be an experienced  manager in the data capture  business,  or at
least experienced at managing broad  spans of control in a production  environment.  This
person must be capable of managing a complex environment that includes the  following:

		1. 	 Understanding
of medical claims data capture.

		2. 	 Two
to three years of managerial experience supervising a staff of 15 to 20 employees.

		3. 	 Experienced
in the areas of facilities management, training, technical support, and financial
management for the center.

	 	Data
entry  operators  must be able to pass  the  minimum  requirements  for  data  capture
productivity  and be  capable  of  understanding medical claims data capture requirements.

4.2  Ramp Up
Period

	 	The
staffing plan above is based upon data entry  operators at full  productivity.  It
normally takes two to three months for a  new  operator to reach full  productivity.  For
any new  implementation  it is the  Healthaxis  procedure to hire the number of
operators  required  to  process  the full  claims  volume,  begin  the  implementation
with a volume  of  claims to match the  productivity  level of the operators,  and then
increase the volume as the  productivity  level increases over the two to three  month
period.

4.3
Staffing Summary

	 	To
support the processing of 10,000 HCFA 1500 claims daily a staff of twenty-one individuals
is required:

		a. 	 One
Facility Director

		b. 	 Twenty
Data Entry Operators

	 	Once
this volume is achieved  and the  operation  is stable and meeting  performance  and
productivity  standards,  additional  volumes will be added and a detailed staffing plan
developed to meet the increasing volumes.

	 	General
guidelines  for each  position  that may be staffed in India are provided in separate
documents  (attached  hereto as  Exhibits A-D).

	 	Page
         11
	2/1/2005

5.
Operating Hours

	 	Healthaxis
has  contractual  obligations  in meeting our  customer’s  service  levels for
returning  the captured data within  required  timeframes.  The normal  timeframes are
95% of the data returned  within 24 hours and 100% returned  within 48 hours.  We are
contractually obligated to work the normal US business week except for US recognized
holidays.

	 	Page
         12
	2/1/2005

6.  Facility

	 	The
following outlines the minimum requirements to support the data capture operations:

		1. 	 A
physically separate operating area with limited access for the Healthaxis  production
employees.  This access must restrict  the entrance of all non-Healthaxis employees.

		2. 	 Adequate
space to support the staffing  model.  Initially,  this would include space for the
twenty  production  workstations.  Each  workstation  should have a minimum of 20 square
feet.  Allowing an  additional  150 square feet for walkway  space, a total space of
approximately 550 square feet would be required for the production floor.

		3. 	 Separate
office  space  for  the  Facility  Director  of  about  150  square  feet.  This  space
would  also  serve  as  a  conference/training room.

		4. 	 Space
for the location of  Healthaxis  servers of about 25 square  feet.  This space  should be
secured,  and provide  limited  access to only the Facility Director and authorized IT
personnel.

		5. 	 Healthaxis
equipment should be protected by both UPS and generator support in the event of a power
failure.

		6. 	 The
facility should be environmentally controlled with air conditioning.

		7. 	 Standard
fire detection and suppression equipment should be in place.

		8. 	 Change
control  procedures  for the facility will be in place to ensure that no changes to the
infrastructure  could be made  without the approval of Healthaxis.

	 	The
affiliate is responsible for providing the facilities that meet these minimum standards.

	 	Page
         13
	2/1/2005

7.  Security

	 	Physical
security  arrangements  for the facility  should  include  restricted  access to the
facility  for all  non-employees.  Visitors cannot be allowed to view the data capture
operations without signing non-disclosure agreements.

	 	The
Healthaxis  security design requires  several layers of security to protect our systems.
Outlined below is a high level look  at our security layers:

		>> 	 Corporate
wide change control process

		>> 	 State-of-the-art
data center

		>> 	 24x7
operations monitoring

		>> 	 Intrusion
detection

		>> 	 Corporate
wide employee policies on computer use, electronic communications and internet usage

		>> 	 Virus
detection on all servers and desktops including email virus scanning and quarantine

		>> 	 End-user
secure VPN access

		>> 	 24x7
network and system monitoring - measuring capacity and state

		>> 	 Incident
response plans

		>> 	 Patch
and update policies and practices

		>> 	 Transfers
over public network protected by strong encryption to meet clients needs i.e. SSL, 3DES,
IPSec and PGP.

	 	The
affiliate is responsible for meeting the security requirements.

	 	Page
         14
	2/1/2005

8.  Equipment

8.1
Workstations

	 	The
following  outlines the minimum  requirements  for the  workstations.  In addition for
security  purposes all  workstations  should not have removable disks, internet access or
any form of printing capability:

	 	Pentium
class desktop
1GHz processor
256 MB RAM
10 GB hard drive
19" monitor

	 	The
affiliate is responsible for providing the workstations.

8.2  Servers

	 	The
following outlines the requirements for the servers to support the data capture
operations.  These servers will be owned by  Healthaxis.  The  servers  will be
purchased  and  configured  by the  Healthaxis  technical  support and shipped to India
for  installation:

		(1) 	Image
file server:
1.8 GHz
Fast, 50 GB hard drive

		(2) 	SQL
and MTS Servers: (One each, based on the configuration in  Jamaica, which serves about
100 users and  30,000 claims/day)
1.8 GHz dual CPU
1 GB RAM
SQL box with a 50 GB hard
drive.

		(3) 	Unix
server

		(4) 	Domain
Controllers

	 	Technical
support for the servers will require  remote  administrative  access for the  Healthaxis
staff.  The  affiliate is  responsible  for providing  connectivity  at the facilitiy
that will meet Healthaxis  reasonable  requirements  for support of  these servers.

	 	Page
         15
	2/1/2005

9.  Data
Lines

	 	To
support the data capture processing of 10,000 HCFA 1500 claims per day the following
information is provided:

	 	1.
Image  transmission to India - the 10,000 claims will equal about 540,000,000  bytes.
Theoretically,  a 256Kbps line can  transmit this volume in about 5 hours.  Adding in
some time for workflow overhead and re-transmits,  a realistic estimate is  probably
seven  hours.  The  estimate  for a 512Kbps  line is about 4 hours and for a 128Kbps line
the estimate is about 13  hours.

	 	2.
Data  transmission  to India – Each  claim is about  3.5K in size for a total of
35,000,000  bytes for  10,000  claims.  Assuming a 256Kbps line, and accounting for
processing time in India, this will require about 30 minutes.  This speed should  be
adjusted accordingly for the other line speeds.

	 	3.
Data  transmission  back to the Data  Center – For the  captured  data the size is
about  10K per  claim  for a total of  100,000,000  bytes for 10,000  claims.  Assuming a
256Kbps line, and  accounting  for  processing  time in Texas,  this will  require about
90 minutes. This speed should be adjusted accordingly for the other line speeds.

	 	4.
The final  decision  on  adequate  data line size will be based upon the need to get
claims to the India  center in  adequate  time to perform the data capture processing.
The following is a summary of the transmission time by line size:

	 	A
256K line would need 7 + 0.5 + 1.5 = 9 hours
A 512K line would need half that, or 4.5
hours
A 128K line would need twice the 256K time, or 18 hours.

	 	A
major  consideration  for data line  support  will be  required  redundancy.  Full
redundant  capability  must exist to ensure  production processing is not interrupted due
to a single data line outage.

	 	A
basic diagram of the existing data communications architecture is provided at the end of
this document.

	 	The
affiliate is  responsible  for providing data lines or equivalent at the facilitiy  that
will meet  Healthaxis  reasonable  requirements for support of the volumes to be
processed.  Data security  responsibilities of the affiliate will vary depending  on the
data communications alternatives it selects.

	 	Page
         16
	2/1/2005

   

	 	Page
         17
	2/1/2005

EXHIBIT A

Facility
Director Requirements and Qualifications

Note: The
Following  Pertains to the Facility  Director in the Jamaica  facility.  Appropriate
considerations  should be given for the  differences in India and in light of the shared
infrastructure and  administrative  overhead  responsibilities  of the affiliate under
the master Remote Resourcing Agreement.

	
      Job Title:	 Facility Director
      
	Reports
      To: 	Director of
      Production

	
      Approved By:	 Director of
      Production 
	Approved
      Date:	03 March 2004

SUMMARY

Supervises  the
activities of the  Production  Managers.  Ensuring all policies  relating to
Administrative,  Production and Technical  issues are carried out daily within the
facility.  Reports to Director of Production on activities/concerns relating to the
facility.

ESSENTIAL
DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

		1. 	 Regularly
reports on all aspects of position to Directors.

		2. 	 Identifies
legal requirements and government reporting  regulations affecting  administrative
functions and ensures policies,  procedures, and reporting are in compliance, including
Freezone and other Governmental Reports (Taxes, etc.)

		3. 	 Plans
and implements motivational programs to improve production, employee attitudes, quality,
and overall performance.

		4. 	 Maintains
inventory of supplies, computers and other equipment with appropriate documentation.

		5. 	 Ensures
that the Facility is maintained and that employees and visitors have a healthful and
pleasant environment.

		6. 	 Plans
and keeps records of purchasing for the facility, including C36 Customs Forms.

		7. 	 Ensure
the processes are followed for Recruiting, interviewing and selections of Employees.

		8. 	 Supervises
the process or Production, technical and Administrative duties.

		9. 	 Supervises
the maintenance of records keeping of benefits plans  participation  such as insurance
and pension plan,  personnel  transactions such as hires, promotions,  transfers,
performance reviews,  termination, and employee statistics for government  reporting.

		10. 	 Coordinates
Management training seminars.

	 	Page
         18
	2/1/2005

		11. 	 Advises
management in appropriate resolution of employee relations issues.

		12. 	 Responds
to inquiries regarding policies, procedures, and programs.

		13. 	 Administers
performance review program to ensure effectiveness, compliance, and equity within
organization.

		14. 	 Implements
salary administration program to ensure compliance and equity within organization.

		15. 	 Administers
benefits programs such as life, health, plans leave of absence, and paid time off.

		16. 	 Prepares
reports and recommends procedures to reduce absenteeism and turnover.

		17. 	 Represents
organizations at personnel-related hearings and investigations.

		18. 	 Contracts
with outside suppliers to provide employee services, such as meals,  transportation,
lodging or relocation service.  Negotiates and administers all contracts in consultation
with appropriate legal sanction.

		19. 	 Ensures
that written and telephone communications in the facility are appropriate and
professional.

		20. 	 Reports
to work and meetings on time and prepared.

SUPERVISORY
RESPONSIBILITIES

Is responsible
for the overall direction,  coordination,  and evaluation of the Facility.  Carries out
supervisor  responsibilities  in  accordance with the organization’s  policies and
applicable laws.  Responsibilities  include training employees;  planning,  assigning,
and directing work; appraising performance; rewarding and disciplining employees;
addressing complaints and resolving problems.

QUALIFICATIONS

To perform
this job successfully,  an individual must be able to perform each essential duty
satisfactorily.  The requirements  listed  below  are  representative  of the  knowledge,
skill,  and/or  ability  required.  Reasonable  accommodations  may be made  to  enable
individuals with disabilities to perform the essential functions.

EDUCATION
and/or EXPERIENCE

Associate's
degree or equivalent  from  two-year  college or technical  school;  or six months to one
year related  experience  and/or  training; or equivalent combination of education and
experience.

LANGUAGE
SKILLS

Ability to
analyze,  and interpret  common  scientific and technical  journals,  financial  reports,
and legal  documents.  Ability to  respond  to common  inquires  or  complaints  from
clients,  regulatory  agencies  or members of the  business  community.  Ability to
effectively present information to top management, public groups, and/or boards of
directors.

MATHEMATICAL
SKILLS

	 	Page
         19
	2/1/2005

Ability to
calculate figures and amounts such as discounts, interest, commissions,  proportions,
percentages, area, circumference, and  volume.  Ability to apply concepts of basic
algebra and geometry.

REASONING
ABILITY

Ability to work
with  mathematical  concepts  such as  probability  and  statistical  inference,  and
fundamentals  of plane and solid  geometry and trigonometry. Ability to apply concepts
such as fractions, percentages, ratios, and proportions to practical situations.

OTHER SKILLS
include the following:

10.
OCCUPATIONAL/TECHNICAL KNOWLEDGE

		•	 Keeps
up to date on technical developments in his/her field

		•	 Is
sought by others for his/her technical knowledge

		•	 Know
his/her job well

		•	 Demonstrates
knowledge of the people and operations of his/her area

LIFE CYCLE
METHODOLOGY

		•	 Displays
understanding of methodology principles

		•	 Applies
and practices methodology in consistent manner

		•	 Attends
appropriate methodology seminars

		•	 Encourages
methodology use with others

MOTIVATION & COMMITMENT

		•	 Demonstrates
a high energy and activity level; gets a lot accomplished

		•	 Overcomes
obstacles and persists until tasks are completed

		•	 Willing
to make personal sacrifices to meet company goals

		•	 Actively
seeks more responsibility.

INNOVATION

		•	 Improves
on previous ways of doing things and looks for more than one solution to a given problem

		•	 Creates
or seeks out new systems or methods that will be a better, more efficient, cost-effective
way of doing things

		•	 Finds
generic solutions to recurring problems and enhances existing systems

TEAM/INTERPERSONAL
SKILLS

		•	 Develops
and maintain good working relationships with others.

		•	 Shows
awareness of the personal needs and feelings of other.

		•	 Accurately
assesses other people, recognizing both strengths and liabilities.

		•	 Establishes
personal credibility: able to gain the confidence and trust of others.

		•	 Manages
conflict and confrontation productively, while maintaining a positive work environment

STAFFING & SUBORDINATE
DEVELOPMENT

		•	 Selects
the right people for the right position.

		•	 Provides
ongoing feedback (back positive and corrective) to subordinates; works with them to
develop their skills.

		•	 Supports
attendance at training programs and provides on the job follow-up and reinforcements.

		•	 Demonstrates
interest in subordinates careers, provides promotable people for the company.

	 	Page
         20
	2/1/2005

PERSONAL
ADPTABILITY

		•	 Able
to shift priorities to accommodate changing job demands

		•	 Remains
effective in highly stressful, ambiguous, or pressure-laden situations

		•	 Deals
constructively with his/her own failure and mistakes

		•	 Demonstrates
proper business maturity across a wide range of situations

COMMUNICATION
SKILLS

		•	 Clearly
expresses ideas and concepts both orally and in writing

		•	 Listens
effectively and exhibits an understanding of what others are saying

		•	 Makes
presentations that are organized, informative and influential

		•	 Writes
clear, concise reports and memos

		•	 Communicates
relevant information to others on a timely basis

ANALYSIS/DECISION-MAKING

		•	 Thinks
through problems and analyzes issues accurately

		•	 Able
to see how things relate and affect one another

		•	 Examines
and evaluates alternative actions before deciding or acting, uses good judgment

		•	 Anticipates
consequences or impact of decisions or actions

		•	 Avoids
shooting from the hip

LEADERSHIP
SKILLS

		•	 Sets
an example of personal performance, which encourages excellence in others

		•	 Able
to take charge, provide clear direction, and initiate action

		•	 Develops
challenging and attainable goals for self and others

		•	 Motivates
others to put forth their best efforts

		•	 Delegates
effectively; monitors progress on assignments and goals.

PLANNING & ORGANIZING

		•	 Effectively
structures one’s own and others’ activities to meet task requirements.

		•	 Maintains
a balance between the bigger picture and day-to-day-events.

		•	 Anticipates
problems develop contingency plans.

		•	 Establishes
efficient, well-organized work and follow-up procedures.

COMPUTER
SKILLS

Should be
proficient in Microsoft  Office  (Excel,  Word,  Access,  PowerPoint,  Outlook  etc.).
Must be  especially  effective  using  Microsoft Access and Excel. Certification
preferred.  Must have valid  identifications:  Passport,  Driver's  License,  or Voter's
ID.  Must have proof of  citizenship,  and work permit if  required.

PHYSICAL
DEMANDS

The physical
demands described here are  representative of those that must be met by an employee to
successfully  perform the essential  functions  of this job.  Reasonable  accommodations
may be made to enable  individuals  with  disabilities  to perform  the  essential
functions.

While
performing the duties of this job, the employee is regularly  required to reach with
hands and arms;  stoop,  kneel,  crouch,  or  crawl;  talk or hear;  and taste or smell.
The  employee  frequently  is required to walk;  sit; and use hands to finger,  handle,
or  feel. The employee is  occasionally  required to stand.  The employee must regularly
lift and/or move up to 10 pounds,  frequently lift  and/or move up to 25 pounds,  and
occasionally  lift

	 	Page
         21
	2/1/2005

and/or  move up
to 50 pounds.  Specific  vision  abilities  required  by this job  include close vision,
distance vision, color vision, peripheral vision,  depth perception, and ability to
adjust focus.

WORK
ENVIRONMENT

The work
environment  characteristics  described here are representative of those an employee
encounters while performing the essential  functions  of this job.  Reasonable
accommodations  may be made to enable  individuals  with  disabilities  to perform  the
essential  functions.

While
performing  the duties of this job, the employee is  occasionally  exposed to risk of
electrical  shock.  The noise level in the  work environment is usually very quiet.

	 	Page
         22
	2/1/2005

EXHIBIT B

Production
Manager Requirements and Qualifications

Note: The
Following  Pertains to the Production  Manager in the Jamaica facility.  Appropriate
considerations  should be given for the  differences in India and in light of the shared
infrastructure and  administrative  overhead  responsibilities  of the affiliate under
the master Remote Resourcing Agreement.

		Job
      Title:	 Production
      Manager 
		Reports
      To: 	Facility Director
      
		Approved
      By: 	Facility Director
      
		Approved
      Date: 	09 August 2001

	 	SUMMARY

	 	Directs
and  coordinates  activities  of  production  department(s)  in processing  Documents or
products in  organization  by  performing the following duties personally or through
subordinate supervisors.

	 	ESSENTIAL
DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

		1. 	 Reviews
production reports and schedules to ascertain product data such as types,  quantities,
and specifications of products  and scheduled TAT dates in order to plan production
operations.

		2. 	 Plans
production operations, establishing priorities and sequences for processing of documents.

		3. 	 Prepares
operational schedules and coordinates activities to ensure production and quality of
products meets specifications.

		4. 	 Reviews
production reports,  analyze reports,  resolves operational,  and quality problems to
ensure minimum costs and prevent  operational delays.

		5. 	 Develops
or revise standard operational and working practices and observes workers to ensure
compliance with standards.

		6. 	 Conduct
interviews for new employees.

		7. 	 Evaluate
employees as scheduled and on time.

		8. 	 Prepares
and maintain reports to determine achievement bonus.

		9. 	 Resolves
employees grievances or submits unsettled grievances to Facility Director for further
action.

		10. 	 Compiles,
stores, and retrieves production data.

		11. 	 Reports
to work and meetings on time and prepared.

	 	Page
         23
	2/1/2005

		12. 	 All
other duties as requested.

	 	SUPERVISORY
RESPONSIBILITIES

	 	Manages
at least three  subordinate  Production  Supervisors.  Is responsible for the overall
directions,  coordination,  and  evaluation of his/her unit.  Also directly  supervises
all  non-supervisory  employees in each unit.  Carries out  supervisory  responsibilities
in accordance with the organization's  policies and applicable laws.  Responsibilities
include interviewing,  hiring, and training employees;  planning,  assigning, and
directing work; appraising performance;  rewarding and disciplining  employees;
addressing complaints and resolving problems.

	 	QUALIFICATIONS

	 	To
perform this job successfully,  an individual must be able to perform each essential duty
satisfactorily.  The requirements  listed below are representative of the knowledge,
skill,  and/or ability required.  Reasonable  accommodations may be made to  enable
individuals with disabilities to perform the essential functions.

	 	EDUCATION
and/or EXPERIENCE

	 	Associate's
degree (A. A.) or equivalent from two-year college or technical  school;  or one to two
years related  experience  and/or training; or equivalent combination of education and
experience.

	 	LANGUAGE
SKILLS

	 	Ability
to read,  analyze and  interpret  general  business  periodicals,  professional
journals,  technical  procedures,  or  governmental  regulations.  Ability to write
reports,  business correspondence,  and procedure manuals. Ability to effectively
present information and respond to questions from managers, clients, customers, and other
employees.

	 	MATHEMATICAL
SKILLS

	 	Ability
to work with  mathematical  concepts such as probability  and  statistical  inference,
and  fundamentals of plane and  solid geometry.  Ability to apply concepts such as
fractions, percentages, ratios, and proportions to practical situations.

	 	REASONING
ABILITY

	 	Ability
to define problems  collects data,  establish  facts,  and draw valid  conclusions.
Ability to interpret an extensive  variety of technical instructions in mathematical or
diagram form and deal with several abstract and concrete variables.

	 	OTHER
SKILLS include the following:

	 	OCCUPATIONAL/TECHNICAL
KNOWLEDGE

		•	 Keeps
up to date on technical developments in his/her field

		•	 Is
sought by others for his/her technical knowledge

		•	 Knows
his/her job well

		•	 Demonstrates
knowledge of the people and operations of his/her area

MOTIVATION
& COMMITMENT

		•	 Demonstrates
a high energy and activity level; gets a lot accomplished

		•	 Overcomes
obstacles and persists until tasks are completed

		•	 Willing
to make personal sacrifices to meet company goals

		•	 Actively
seeks more responsibility.

	 	Page
         24
	2/1/2005

INNOVATION

		•	 Improves
on previous ways of doing things and looks for more than one solution to a given problem

		•	 Creates
or seeks out new systems or methods that will be a better, more efficient, cost-effective
way of doing things

		•	 Finds
generic solutions to recurring problems and enhances existing systems

TEAM/INTERPERSONAL
SKILLS

		•	 Develops
and maintain good working relationships with others.

		•	 Shows
awareness of the personal needs and feelings of others.

		•	 Accurately
assesses other people, recognizing both strengths and liabilities.

		•	 Establishes
personal credibility: able to gain the confidence and trust of others.

		•	 Manages
conflict and confrontation productively, while maintaining a positive work environment.

STAFFING
& SUBORDINATE DEVELOPMENT

		•	 Selects
the right people for the right position.

		•	 Provides
ongoing feedback (back positive and corrective) to subordinates; works with them to
develop their skills.

		•	 Supports
attendance at training programs and provides on the job follow-up and reinforcements.

		•	 Demonstrates
interest in subordinates careers, provides promotable people for the company.

PERSONAL
ADAPTABILITY

		•	 Able
to shift priorities to accommodate changing job demands

		•	 Remains
effective in highly stressful, ambiguous, or pressure-laden situations

		•	 Deals
constructively with his/her own failure and mistakes

		•	 Demonstrates
proper business maturity across a wide range of situations

COMMUNICATION
SKILLS

		•	 Clearly
expresses ideas and concepts both orally and in writing

		•	 Listens
effectively and exhibits an understanding of what others are saying

		•	 Makes
presentations that are organized, informative and influential

		•	 Writes
clear, concise reports and memos

		•	 Communicates
relevant information to others on a timely basis

ANALYSIS/DECISION-MAKING

		•	 Thinks
through problems and analyzes issues accurately

		•	 Able
to see how things relate and affect one another

		•	 Examines
and evaluates alternative actions before deciding or acting, uses good judgment

		•	 Anticipates
consequences or impact of decisions or actions

		•	 Avoids
"shooting from the hip"

LEADERSHIP
SKILLS

		•	 Sets
an example of personal performance, which encourages excellence in others

		•	 Able
to take charge, provide clear direction, and initiate action

		•	 Develops
challenging and attainable goals for self and others

	 	Page
         25
	2/1/2005

		•	 Motivates
others to put forth their best efforts

		•	 Delegates
effectively; monitors progress on assignments and goals

PLANNING
& ORGANIZING

		•	 Effectively
structures one's own and others' activities to meet task requirements.

		•	 Maintains
a balance between the bigger picture and day-to day- events.

		•	 Anticipates
problems and develops contingency plans.

		•	 Establishes
efficient, well-organized work and follow-up procedures.

COMPUTER
SKILLS

Should be
proficient in Microsoft Office (Excel, Word, PowerPoint, Outlook, Access) Certification
preferred.  Must have valid identifications: Passport, Driver's License, or Voter's ID.
Must have proof of citizenship.

PHYSICAL
DEMANDS

The physical
demands described here are  representative  of those that must be met by an employee to
successfully  perform the  essential  functions of this job.  Reasonable  accommodations
may be made to enable  individuals with disabilities to perform  the essential functions.

While
performing the duties of this job, the employee is regularly  required to use hands to
finger,  handle,  or feel; reach  with hands and arms;  and talk or hear.  The employee
frequently  is required to walk and sit.  The employee is  occasionally  required to
stand. The employee must  occasionally  lift and/or move up to 10 pounds.  Specific
vision  abilities  required by  this job include close vision, distance vision, color
vision, depth perception, and ability to adjust focus.

WORK
ENVIRONMENT

The work
environment  characteristics  described here are representative of those an employee
encounters while performing the  essential  functions of this job.  Reasonable
accommodations  may be made to enable  individuals with disabilities to perform  the
essential functions.

The noise level
in the work environment is usually moderate.

	 	Page
         26
	2/1/2005

EXHIBIT C

Floor
Supervisor Requirements and Qualifications

Note:  The
Following  Pertains to the Floor  Supervisor in the Jamaica  facility.  Appropriate
considerations  should be given for the  differences in India and in light of the shared
infrastructure and  administrative  overhead  responsibilities  of the affiliate under
the master Remote Resourcing Agreement.

		Job
      Title:	 Production
      Supervisor 
		Reports
      To: 	Production Manager

		Approved
      By: 	 Facility Director
      
		Approved
      Date:	8 August 2001

 	 	SUMMARY

	 	Supervises
and coordinates activities of Production Operators by performing the following duties.

	 	ESSENTIAL
DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

		1. 	 Determines
work procedures, prepares work schedules, and monitors workflow.

		2. 	 Issue
written and verbal instructions.

		3. 	 Issue
verbal and written reprimands in consultation with Production Manager.

		4. 	 Gives
praising and reprimands.

		5. 	 Assigns
duties and examines work for exactness, quality, and conformance to policies and
procedures.

		6. 	 Studies
procedures to improve efficiency of subordinates.

		7. 	 Conduct
keyboard training.

		8. 	 Train
and Counsel to improve accuracy and overall productivity.

		9. 	 Maintains
harmony among workers and resolves grievances.

		10. 	 Prepares
composite reports from individual reports of subordinates.

		11. 	 Ensures
procedures are follow to resolve complaints and eliminate errors.

		12. 	 Performs
or assists subordinates in performing their duties.

		13. 	 Reports
to work and meetings on time and prepared.

		14. 	All
other duties requested.

	 	Page
         27
	2/1/2005

	 	SUPERVISORY
RESPONSIBILITIES

	 	Supervises
and is responsible  for the  directions,  coordination,  and  evaluation of his/her unit.
Carries out  supervisory  responsibilities in accordance with the organization's
policies and applicable laws.  Responsibilities  include interviewing,  and training
employees;  planning,  assigning,  and  directing  work;  appraising  performance;
rewarding  and  disciplining  employees; addressing complaints and resolving problems.

	 	QUALIFICATIONS

	 	To
perform this job successfully,  an individual must be able to perform each essential duty
satisfactorily.  The requirements  listed below are representative of the knowledge,
skill,  and/or ability required.  Reasonable  accommodations may be made to  enable
individuals with disabilities to perform the essential functions.

	 	EDUCATION
and/or EXPERIENCE

	 	One
year  certificate  from college or  technical  school;  or three to six months  related
experience  and/or  training;  or  equivalent combination of education and experience.

	 	LANGUAGE
SKILLS

	 	Ability
to read,  analyze and  interpret  general  business  periodicals,  professional
journals,  technical  procedures,  or  governmental  regulations.  Ability to write
reports,  business correspondence,  and procedure manuals. Ability to effectively
present information and respond to questions from managers, other supervisor, and
employees.

	 	MATHEMATICAL
SKILLS

	 	Ability
to calculate figures and amounts such as discounts, interest,  commissions,  proportions,
percentages, area, bonuses,  and volume.

	 	COMPUTER
SKILLS

	 	Should
be proficient in Microsoft Office. (Excel, Word, Access,  PowerPoint,  Outlook etc.) Must
be especially effective using  Microsoft Access and Excel. Certification preferred.  Must
have valid identifications:  Passport,  Driver's License, or Voter's ID. Must have proof
of citizenship,  and work permit  if required.

	 	REASONING
ABILITY

	 	Ability
to solve practical  problems and deal with a variety of concrete  variables in situations
where only but little amount  of standardization  exists.  Ability to interpret variety
of instructions  furnished in written,  oral,  diagram,  or schedule  form.

	 	PHYSICAL
DEMANDS

	 	The
physical demands described here are  representative  of those that must be met by an
employee to successfully  perform the  essential  functions of this job.  Reasonable
accommodations  may be made to enable  individuals with disabilities to perform  the
essential functions.

	 	While
performing the duties of this job, the employee is regularly  required to stand;  walk;
use hands to finger,  handle, or  feel;  reach  with  hands  and arms;  and talk or hear.
The  employee  frequently  is  required  to sit.  The  employee  must  occasionally  lift
and/or  move up

	 	Page
         28
	2/1/2005

	 	to
10 pounds.  Specific  vision  abilities  required  by this job  include  close  vision,
distance  vision, color vision, peripheral vision, and ability to  adjust focus.

	 	WORK
ENVIRONMENT

	 	The
work environment  characteristics  described here are representative of those an employee
encounters while performing the  essential  functions of this job.  Reasonable
accommodations  may be made to enable  individuals with disabilities to perform  the
essential functions.

	 	While
performing  the duties of this job, the employee is regularly  required to talk,  walk
and lift weight up to 25 pounds;  the working environment is usually quiet.

	 	Page
         29
	2/1/2005

EXHIBIT D

Production
  (Data Entry) Operator Requirements and Qualifications

NOTE:
Quality  Control and UAT  positions  require  these same  qualifications,  however,
Quality  Control  auditors are  experienced  production  operators  that have proven
their  ability to maintain  quality  standards  for a minimum of 6 months.  UAT
positions  are  experienced Quality Control auditors with a minimum of 6 months
experience as an auditor.

	
      Job Title: 	 Data Entry
      Operator 
	Reports
      To: 	Production Supervisor
	Approved
      By:	Facility Director
	Approved
      Date:	05 March 2004

SUMMARY

Enters data
into computer or onto magnetic tape or disk for subsequent entry by performing the
following duties.

ESSENTIAL
DUTIES AND RESPONSIBILITIES include the following. Other duties may be assigned.

		1. 	 Keeps
track of received data and source documents.

		2. 	 Prepares
and sorts source documents, and identifies and interprets data to be entered.

		3. 	 Contacts
preparers of source documents to resolve questions, inconsistencies, or missing data.

		4. 	 Enters
alphabetic,  numeric,  or symbolic data from source documents into computer  following
format displayed on screen, and  enters necessary codes.

		5. 	 Compares
data entered with source documents, or reenters data in verification format on screen to
detect errors.

		6. 	 Makes
necessary corrections to information entered.

		7. 	 Complies,
sorts, and verifies accuracy of data to be entered.

		8. 	 Keeps
record of work completed.

		9. 	 Reviews
error reports and enters corrections into computer.

		10. 	 Transmits
entered information into database.

		11. 	 Files
or routes source documents into database.

		12. 	 Responds
to inquiries regarding entered data.

		13. 	 Reports
to work and meeting on time and prepared.

		14. 	 All
other duties as requested.

	 	Page
         30
	2/1/2005

QUALIFICATIONS

		•	 To
perform this job successfully, an individual must be able to perform each duty
satisfactorily.

		•	 The
requirements listed below are representative of the knowledge, skill, and/or ability
required.

		•	 Reasonable
accommodation may be made to enable individuals with disabilities to perform the
essential functions.

EDUCATION
and/or EXPERIENCE

High school
diploma or general  education  degree (GED) or one to three months  related  experience
and/or  training;  or  equivalent  combination of education and experience.

LANGUAGE
SKILLS

		•	 Ability
to read and interpret documents such as safety rules, operation and maintenance
instructions, and procedure manuals.

		•	 Ability
to write routine reports and correspondence.

		•	 Ability
to speak effectively before groups of clients or employees of organization.

MATHEMATICAL
SKILLS

		•	 Ability
to add, subtract, multiply, and divide in all units of measure, using whole numbers,
common fraction, and decimals.

		•	 Ability
to compute rate, ratio, and percent and to draw and interpret bar graphs.

REASONING
ABILITY

		•	 Ability
to apply common sense understanding to carry out instructions furnished in written, oral,
or diagram form.

		•	 Ability
to deal with problems involving several concrete variables in standardized situations.

CERTIFICATES,
LICENSES, REGISTRATIONS

		•	 Must
have valid identifications: Passport, Driver’s License, or Voter’s ID.

PHYSICAL
DEMANDS

		•	 The
physical demands described here are  representative  of those that must be met by an
employee to successfully  perform the  essential functions of this job.

		•	 Reasonable
accommodations may be made to enable individuals with disabilities to perform the
essential functions.

		•	 While
performing the duties of this job, the employee occasionally required to stand

		•	 Specific
vision abilities  required by this job include close vision,  distance vision,  color
vision,  depth perception,  and  ability to adjust focus.

WORK
ENVIRONMENT

		•	 The
work environment  characteristics  described here are representative of those an employee
encounters while performing the  essential functions of this job.

		•	 Reasonable
accommodations may be made to enable individuals with disabilities to perform the
essential functions.

	 	Page
         31
	2/1/2005

EXHIBIT
  E

Data
  Capture Training and Retention Requirements

All applicants
for data entry operator must meet the  requirements  outlined in the Data Entry Operator
job  description.  Training of  new operators begins with 10 to 20 hours of classroom
training.  This training consists of proper security  measures,  the handling of
sensitive  medical  information,  learning  various claim types,  and the data capture
requirements  for the specific  customer.  Upon  successful completion of the classroom
training the new operator is assigned to a workstation to begin actual data entry
training.

This phase of
the training includes  processing live documents with a focus centered on data entry
accuracy.  It is our approach that a  new operator must first prove they are capable of
meeting accuracy  requirements  prior to improving their productivity  skills.  Under
this approach a new operator will have 100% of their claims processed audited.  It is the
responsibility of the Production  Supervisor  to review the results of the audits with
the new operator on a daily basis and to provide any required training.

The table below
outlines the retention  requirements  during the first twelve weeks of  employment.  Our
quality  program and customer  service  levels are designed to provide  field level
quality.  We guarantee our customers  that we will provide 99.5%  critical  field
accuracy. We expect all new operators to meet this requirement within the first four
weeks of employment.

The table also
outlines  retention  requirements  for  productivity.  Since each customer has unique
keying  requirements,  we develop  individual  production standards for each customer.
We expect new operators to reach the production standard within the first 12 weeks  of
employment.

	
	Critical
        Field

        Accuracy 
	Productivity
        %

        of Standard 

	
      Week
        1
	
      98.5%
	
      20%

	Week
        2
	98.8%
	25%

	
      Week
        3 
	
      99.2%
	
      30%

	Week
        4
	99.5%
	35%

	
      Week
        5
	
      99.5%
	
      40%

	Week
        6
	99.5%
	50%

	
      Week
        7
	
      99.5%
        
	
      60%

	Week
        8
	99.5%
	70%

	
      Week
        9 
	
      99.5%
	
      80%

	Week
        10
	99.5%
	90%

	
      Week
        11
	
      99.5%
	
      95%

	Week
        12 
	99.5%
	100%

	 	Page
         32
	2/1/2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]