Document:

<PAGE>

                              AMENDED AND RESTATED
                           CERTIFICATE OF DESIGNATION
                                       OF
                              AMENDED AND RESTATED
                            ARTICLES OF INCORPORATION
                                       OF
                              HEALTHAXIS.COM, INC.

                  HEALTHAXIS.COM, INC., a Pennsylvania corporation (the
"Corporation"), acting pursuant to Section 1522 of the Pennsylvania Business
Corporation Law, does hereby submit the following Amended and Restated
Certificate of Designation of Series and Determination of Rights and Preferences
of its Convertible Series B Preferred Stock (the "Series B Preferred Stock").

                  FIRST:  The name of the Corporation is HealthAxis.com, Inc.

                  SECOND: By unanimous written consent of the Board of Directors
of the Corporation, dated December 8, 1999, the following resolutions were duly
adopted:

                  WHEREAS the Board of Directors of the Corporation is
authorized, subject to limitations prescribed by law and by the provisions of
Article 5 of the Corporation's Amended and Restated Articles of Incorporation,
to establish and fix the number of shares to be included in any series of
Preferred Stock and the designation, rights, preferences and limitations of the
shares of each series; and

                  NOW, THEREFORE, BE IT RESOLVED that pursuant to Article 5 of
the Corporation's Amended and Restated Articles of Incorporation, the
designation, rights, preferences, powers, restrictions and limitations
applicable to the Series B Preferred Stock be and hereby are revised and set
forth in this Amended and Restated Certificate of Designation which supplements
Article 5 as follows:

1.       Dividends.

         (a) The holder of each share of Series B Preferred Stock shall be
entitled to receive such dividends as declared by the Board of Directors of the
Corporation in its discretion, out of funds legally available for that purpose,
provided that, such dividends if payable in cash shall be at least equal to
$0.13 per share unless dividends per share in excess of $0.13 per share are paid
to any other holder of Capital Stock of the Corporation in which event the
dividend payable to each holder of the Series B Preferred Stock shall equal
$0.13 per share plus an amount equal to such holder's pro rata portion of any
dividend declared by the Board of Directors of the Corporation and payable to
all other holders of Capital Stock in excess of $0.13 per share. Dividends on
each share of Series B Preferred Stock, if and when declared, shall accrue from
the applicable date of declaration so that if at any time Accrued Dividends (as
hereinafter defined) upon the Series B Preferred Stock shall not have been paid,
the amount and deficiency in such dividends shall be fully paid (but without
interest) with respect to dividends which have been declared on the shares of
the Series B Preferred Stock or any share of Preferred Stock of the Corporation
which is junior to the Series B Preferred Stock with respect to the payment of
dividends or distribution of assets of the Corporation or both (the "Junior
Stock"), and a sum sufficient for the payment thereof shall have been set apart
for such payment, before any dividend shall be declared or paid or any other
distribution ordered or made shares of Common Stock or any Junior Stock, and
before any sum or sums shall be set aside for or applied to the purchase or
redemption of any shares of Common Stock or the Junior Stock, other than the
repurchase by the Corporation of shares of Common Stock from any employee
thereof upon cessation of their employment, which shall under all circumstances
be permitted notwithstanding the foregoing.

<PAGE>

         (b) "Accrued Dividends" shall mean that amount that shall be equal to
dividends declared by the Board of Directors, on the Series B Preferred Stock
(plus any other dividends declared but unpaid) for the period of time elapsed
from the declaration date by the Board to the date as of which Accrued Dividends
are to be paid less an amount equal to all dividends paid on the Series B
Preferred Stock through the date of calculation thereof.

         (c) "set apart for payment" shall be deemed to include the recording by
the Corporation in its accounting ledgers of any accounting or bookkeeping entry
which indicates, pursuant to a declaration of dividends or other distribution by
the Board of Directors of the Corporation, the allocation of funds to be so paid
on any series or class of capital stock of the Corporation; provided, however,
that if any funds for any class of series of Junior Stock or any class of series
of stock ranking on a parity with the Series B Preferred Stock as to the payment
of dividends are placed in a separate account of the Corporation or delivered to
a disbursing, paying or other similar agent, then "set apart for payment" with
respect to the Series B Preferred Stock shall mean placing such funds in a
separate account or delivering such funds to a disbursing, paying or other
similar agent.

2. Liquidation.

         (a) Upon a Liquidation (as defined below), after payment or provision
for payment of the debts and other liabilities of the Corporation and all
amounts which the holder of any class of capital stock ranking senior to the
Series B Preferred Stock shall be entitled to receive upon such Liquidation:

                  (i) the holders of Series B Preferred Stock shall be entitled
to receive, prior and in preference to the holders of Common Stock, Series A
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and any
other Junior Stock, out of the remaining assets of the Corporation available for
distribution to its stockholders with respect to each share of Series B
Preferred Stock, an amount (the "Series B Preference Amount") per share of
Series B Preferred equal to the sum of (A) $4.396279 (the "Original Issuance
Price" of the Series B Preferred Stock) and (B) all Accrued Dividends payable
with respect to such share under Section 1. If upon any Liquidation the assets
of the Corporation available for distribution to its stockholders shall be
insufficient to pay the holders of Series B Preferred Stock the full respective
Series B Preference Amounts to which they shall be entitled, the holders of
Series B Preferred Stock shall share ratably in any distribution of assets based
on the amounts which would be payable to them on or with respect to the shares
of Series B Preferred Stock held by them upon such distribution pursuant to this
Section 2 as if all amounts payable on or with respect to such shares were paid
in full.

                                      -2-
<PAGE>

                  (ii) After distribution to the holders of Series B Preferred
Stock of the full Series B Preference Amount set forth in Section 2(a)(i), the
holders of Series C Preferred Stock and Series D Preferred Stock, on a pari
passu basis, shall be entitled to receive, prior and in preference to the
holders of Common Stock and Series A Preferred Stock, out of the remaining
assets of the Corporation available for distribution to its stockholders with
respect to each share of Series C Preferred Stock an amount per share of Series
C Preferred Stock equal to its liquidation preference as currently provided (the
"Series C Preference Amount" ) and with respect to each share of Series D
Preferred Stock an amount per share of Series D Preferred Stock equal to its
liquidation preference as currently provided (the "Series D Preference Amount").
If upon any Liquidation the assets of the Corporation available for distribution
to its stockholders shall be insufficient to pay the holders of Series C and
Series D Preferred Stock the full Series C Preference Amounts and Series D
Preference Amounts, respectively to which they shall be entitled, the holders of
Series C and Series D Preferred Stock shall share ratably in any distribution of
assets based on the amounts which would be payable to them on or with respect to
the shares of Series C or Series D Preferred Stock held by them upon such
distribution pursuant to this Section 2 as if all amounts payable on or with
respect to such shares were paid in full.

                  (iii) After the distribution to the holders of Series B
Preferred Stock, Series C Preferred Stock and Series D Preferred Stock the full
amounts of their preferences, the holders of Series A Preferred Stock shall be
entitled to receive, prior and in preference to the holders of Common Stock, out
of the remaining assets of the Corporation available for distribution to its
stockholders with respect to each share of Series A Preferred Stock an amount
per share of Series A Preferred Stock equal to its liquidation preference as
currently provided (the "Series A Preference Amount"). If upon any Liquidation
the assets of the Corporation available for distribution to its stockholders
shall be insufficient to pay the holders of Series A Preferred Stock the full
respective Series A Preference Amounts to which they shall be entitled, the
holders of Series A Preferred Stock shall share ratably in any distribution of
assets based on the amounts which would be payable to them on or with respect to
the shares of Series A Preferred Stock held by them upon such distribution
pursuant to this Section 2 as if all amounts payable on or with respect to such
shares were paid in full.

                  (iv) After distribution to the holders of Series B Preferred
Stock of the full Series B Preference Amount as set forth in Section 2(a)(i),
distribution to holders of Series C Preferred Stock of the full Series C
Preference Amount and to holders of Series D Preferred Stock of the full Series
D Preference Amount set forth in Section 2(a)(ii), and distribution to the
holders of Series A Preferred Stock of the full Series A Preference Amount as
set forth in Section 2(a)(iii), the holders of Series A Preferred Stock, Series
B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Common
Stock shall be entitled to receive, on a pari passu basis (determined, in the
case of Series A Preferred, Series B Preferred, Series C Preferred and Series D
Preferred Stock, on an "as converted" basis), the remaining assets of the
Corporation available for distribution to its stockholders.

                                      -3-
<PAGE>

         (b) For purposes of this Section 2, a Corporate Transaction (as defined
below) shall be treated as a Liquidation and shall entitle the holders of
Preferred Stock to receive, upon the consummation of such Corporate Transaction,
consideration in the same form as is to be provided in such Corporate
Transaction (whether cash, securities, other property or any combination
thereof), having a value (as determined in accordance with the next sentence)
equivalent to the amounts to which such holders of each series of Preferred
Stock outstanding would otherwise have been entitled pursuant to Section 2(a)
assuming such Corporate Transaction had constituted a Liquidation within the
meaning of said Section 2(a).

         (c) As used herein, the following terms shall have the following
respective meanings:

                  (i) "Corporate Transaction" means (A) any consolidation or
merger of the Corporation, other than any merger or consolidation resulting in
the holders of the capital stock of the Corporation entitled to vote for the
election of directors holding a majority of the capital stock of the surviving
or resulting entity entitled to vote for the election of directors, (B) any
person or entity (including any affiliates thereof) becoming the holder of a
majority of the capital stock of the Corporation entitled to vote for the
election of directors, or (C) any sale or other disposition by the Corporation
of all or substantially all of its assets. Notwithstanding the foregoing, the
merger of the Corporation with Insurdata Incorporated shall not constitute a
Corporate Transaction.

                  (ii) "liquidation" means any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation, other
than any dissolution, liquidation or winding up in connection with any
reincorporation of the Corporation in another jurisdiction.

                  (iii) "Original Issuance Date" means the date of original
issuance of the first share of Series B Preferred Stock.

3. Optional Redemption.

         (a) Subject to Section 3(c), each holder of Series B Preferred Stock
shall have the option, exercisable upon request by the holders of 51% of the
outstanding shares of Series B Preferred Stock within six months after the later
of the occurrence, or the notice thereof, of any Trigger Event (as hereinafter
defined) (the "Optional Redemption Period") to cause the Corporation to redeem
any or all, and the Corporation shall (unless prohibited by law) so redeem any
or all (the "Optional Redemption"), of the number of shares of Series B
Preferred Stock requested by such holder to be redeemed, at a redemption price
per share (the "Optional Redemption Price") equal to the Original Issuance Price
(subject to equitable adjustment to reflect stock splits, stock dividends, stock
combinations, recapitalizations and like occurrences), plus an amount that would
yield a total annualized return of 10% calculated daily and compounded annually
from the later to occur of (i) the Original Issuance Date and (ii) the date on
which a holder acquires shares of Series B Preferred Stock, through the date of
Redemption.

                                      -4-
<PAGE>

         (b) Notice of the exercise of the redemption option (the "Notice of
Exercise") pursuant to Section 3(a) shall be sent by first-class certified mail,
postage prepaid and return receipt requested, or by overnight courier to the
Corporation. The Corporation shall, within fifteen (15) days of receipt of the
Notice of Exercise, send notice to those holders of Series B Preferred Stock who
sent the Notice of Exercise informing them of whether the Corporation is legally
permitted to effectuate the Optional Redemption. If the Corporation is legally
permitted to effectuate the Optional Redemption, then at any time during the
Optional Redemption Period, the holders of record of shares of Series B
Preferred Stock shall, as to the shares of Series B Preferred Stock to be
redeemed on such date, be entitled to receive payment in cash of the Optional
Redemption Price with respect to such Series B Preferred Stock simultaneous with
actual delivery to the Corporation or its agent of the certificate or
certificates representing the shares of Series B Preferred Stock to be redeemed.

         (c) "Trigger Event" shall mean (i) January 31, 2002, if by such time
the Corporation has not consummated an underwritten public offering for the
account of the Corporation of Common Stock pursuant to a registration statement
filed under the Securities Act of 1933, as amended, at a net offering price per
share of Common Stock that represents a pre-offering market capitalization of no
less than $150,000,000 and with aggregate proceeds (net of underwriting
discounts and commissions) to the Corporation of not less than $25,000,000, (ii)
failure to renew by the Corporation or any material breach by any party other
than America Online, Inc.("AOL") or termination of the Amended and Restated
Marketing Interactive Agreement dated as of February 1, 1998 (the "Original
Agreement"), by and between Provident Health Services, Inc.("PHS") and AOL, as
amended by the First Amendment to the Original Agreement dated as of November
10, 1998, by and between AOL, the Corporation and PHS in accordance with its
terms, (iii) the date of the occurrence of a Liquidation, (iv) March 31, 1999,
if by such time the Corporation has not consummated a Qualified Financing, or
(v) May 31, 1999, if by such time the Corporation has not consummated a Second
Qualified Financing.

         (d) "Qualified Financing" shall mean the consummation by the
Corporation of an equity financing, in a single transaction or series or related
transactions, yielding aggregate gross proceeds to the Corporation of not less
than $7,000,000 at a price per share of Common Stock equal to at least $3.74
(appropriately adjusted to reflect the occurrence of any stock split, stock
dividend, recapitalization or like occurrences).

         (e) "Second Qualified Financing" shall mean the consummation by the
Corporation of an equity financing, in a single transaction or series or related
transactions, yielding aggregate gross proceeds to the Corporation of not less
than $3,500,000 at a price per share of Common Stock equal to at least $3.74
(appropriately adjusted to reflect the occurrence of any stock split, stock
dividend, recapitalization or like occurrences).

         (f) Anything contained herein to the contrary notwithstanding, the
holders of shares of Series B Preferred Stock exercising their optional
redemption rights under this Section 3 shall have the right, exercisable at any
time during the Optional Redemption Period, to convert all or any part of such
shares into shares of Common Stock pursuant to Section 5 hereof.

                                      -5-
<PAGE>

4. Voting Rights.

         (a) In addition to the rights provided by law or in the Corporation's
By-laws, each share of Series B Preferred Stock shall entitle the holder thereof
to such number of votes as shall equal the nearest whole number of shares of
Common Stock into which such share of Series B Preferred Stock is then
convertible pursuant to Section 5. Except as provided in paragraph (b) below or
as otherwise provided by law, the holders of Series B Preferred Stock, shall be
entitled to vote on all matters as to which holders of Common Stock shall be
entitled to vote, in the same manner and with the same effect as such holders of
Common Stock, voting together with the holders of Common Stock as one class.

         (b) The Corporation shall not, without the affirmative consent or
approval of the holders of at least a majority of the shares of Series B
Preferred Stock then outstanding, voting as a separate class:

                   (1) authorize, create, designate or establish any class or
series of capital stock or other security or other instrument convertible into
or exchangeable for any security ranking senior or pari passu with the Series B
Preferred Stock or reclassify any shares of Common Stock into shares having any
preference or priority as to dividends or assets superior to any such preference
or priority of the Series B Preferred Stock;

                   (2) in any other manner amend or modify the powers,
privileges, preferences, or rights, or qualifications, limitations or
restrictions of the Series B Preferred Stock as to materially adversely affect
the holders thereof;

                  (3) amend the Amended and Restated Articles of Incorporation
of the Corporation so as to materially adversely affect the powers, preferences
or rights, or qualification, limitations or restrictions, of the shares of
Series B Preferred Stock;

                  (4) amend the By-laws of the Corporation in any manner that
would materially adversely affect the powers, preferences or rights, or
qualifications, limitations or restrictions of the Series B Preferred Stock;

                  (5) consummate any Corporate Transaction;

                  (6) increase or decrease the total number of authorized shares
of Series B Preferred Stock;

                  (7) directly or indirectly pay or declare any dividend or make
any distribution upon, or redeem, retire or repurchase or otherwise acquire, any
shares of capital stock or other securities of the Corporation (other than the
repurchase of Common Stock from employees upon termination or employment);

                  (8) consummate any transaction whereby the Corporation shall
obtain control, directly or indirectly, of an insurance Corporation;

                                      -6-

<PAGE>

                  (9) effect any change in or enter into any business other than
the business conducted by the Corporation on the Original Issuance Date.

5. Optional Conversion.

         (a) Upon the terms set forth in this Section 5, the holder of shares of
Series B Preferred Stock shall have the right, at the holder's option, at any
time and from time to time, to convert any of such shares into the number of
fully paid and nonassessable shares of Common Stock equal to the quotient
obtained by dividing (i) the Original Issuance Price of the Series B Preferred
Stock by (ii) the Conversion Price (as defined below) therefor, as last adjusted
and then in effect, by surrender of the certificates representing the shares of
Series B Preferred Stock to be converted. The conversion price per share at
which shares of Common Stock shall be issuable upon conversion of shares of
Series B Preferred Stock shall initially be the Original Issuance Price for the
Series B Preferred Stock (the "Conversion Price"), subject to adjustment as set
forth in paragraph (d) below.

      (b) The holder of the shares of Series B Preferred Stock may exercise
the conversion right pursuant to paragraph (a) above by delivering to the
Corporation the certificate or certificates for the shares to be converted, duly
endorsed or assigned in blank or to the Corporation (if required by it),
accompanied by written notice stating that the holder elects to convert such
shares and stating the name or names (with address) in which the certificate or
certificates for the shares of Common Stock are to be issued. Conversion shall
be deemed to have been effected on the date when such delivery is made (the
"Conversion Date"). As promptly as practicable thereafter, the Corporation shall
issue and deliver to at such holder's address appearing on the Corporation's
records or upon the written order of such holder, to the place designated by
such holder, a certificate or certificates for the number of full shares of
Common Stock to which such holder is entitled, and a cash amount in respect of
any fractional interest in a share of Common Stock as provided in paragraph (c)
below. The person in whose name the certificate or certificates for Common Stock
are to be issued shall be deemed to have become a stockholder of record on the
applicable Conversion Date unless the transfer books of the Corporation are
closed on that date, in which event such person shall be deemed to have become a
stockholder of record on the next succeeding date on which the transfer books
are open, but the Conversion Price shall be that in effect on the Conversion
Date. Upon conversion of only a portion of the number of shares covered by a
certificate representing shares of Series B Preferred Stock surrendered for
conversion, the Corporation shall issue and deliver to or upon the written order
of the holder of the certificate so surrendered for conversion, at the expense
of the Corporation, a new certificate covering the number of shares of Series B
Preferred Stock representing the unconverted portion of the certificate so
surrendered.

         (c) No fractional shares of Common Stock or scrip shall be issued upon
conversion of shares of Series B Preferred Stock. The number of full shares of
Common Stock issuable upon conversion of Series B Preferred Stock shall be
computed on the basis of the aggregate number of shares of Series B Preferred
Stock to be converted. Instead of any fractional shares of Common Stock which
would otherwise be issuable upon conversion of any shares of Series B Preferred
Stock, the Corporation shall pay a cash adjustment in respect of such fractional
interest in an amount equal to the product of (i) the price of one share of
Common Stock as determined in good faith by the Board of Directors and (ii) such
fractional interest. The holders of fractional interests shall not be entitled
to any rights as stockholders of the Corporation in respect of such fractional
interests.

                                      -7-
<PAGE>

         (d) The Conversion Price applicable to the Series B Preferred Stock
shall be subject to adjustment from time to time as follows:

                  (i) If the Corporation shall at any time during the period
beginning on the Original Issuance Date and ending on the date of the
consummation of the Second Qualified Financing issue any shares of Common Stock
(including shares of Common Stock deemed to be issued pursuant to Subdivision
(3) of clause (iii) below) other than Excluded Stock (as defined in clause (iv)
below), without consideration or for a consideration per share less than the
Conversion Price applicable to the Series B Preferred Stock in effect
immediately prior to each such issuance of equity, then the applicable
Conversion Price in effect immediately prior to each such issuance shall
forthwith be lowered to a price equal to the amount of such lower consideration
per share.

                  (ii) If the Corporation shall at any time or from time to time
after the date of the consummation of the Second Qualified Financing issue any
shares of Common Stock (including shares of Common Stock deemed to be issued
pursuant to subdivision (3) of clause (iv) below) other than Excluded Stock (as
defined in clause (iv) below) without consideration or for a consideration per
share less than the Conversion Price applicable to the Series B Preferred Stock
in effect immediately prior to the issuance of such Common Stock, then the
applicable Conversion Price in effect immediately prior to each such issuance
shall forthwith be lowered to a price equal to the quotient obtained by
dividing:

                           (1) an amount equal to the sum of (x) the total
number of shares of Common Stock outstanding (including any shares of Common
Stock deemed to have been issued pursuant to subdivision (3) of clause (iii)
below) immediately prior to such issuance, multiplied by the applicable
Conversion Price in effect immediately prior to such issuance, and (y) the
consideration received by the Corporation upon such issuance; by

                           (2) the total number of shares of Common Stock
outstanding (including any shares of Common Stock deemed to have been issued
pursuant to subdivision (3) of clause (iii) below) immediately after the
issuance of such Common Stock.

                  (iii) For the purposes of any adjustment of the Conversion
Price pursuant to clauses (i) and (ii) above, the following provisions shall be
applicable:

                           (1) In the case of the issuance of Common Stock for
cash in a public offering or private placement, the consideration shall be
deemed to be the amount of cash paid therefor after deducting therefrom any
discounts, commissions or placement fees payable by the Corporation to any
underwriter or placement agent in connection with the issuance and sale thereof.

                                      -8-
<PAGE>

                           (2) In the case of the issuance of Common Stock for a
consideration in whole or in part other than cash, the consideration other than
cash shall be deemed to be the Fair Market Value thereof (such Fair Market Value
being determined as provided in the definition thereof but with reference to
such consideration), irrespective of any accounting treatment.

                           (3) The issuance after the Original Issuance Date of
options to purchase or rights to subscribe for Common Stock, securities by their
terms convertible into or exchangeable for Common Stock, or options to purchase
or rights to subscribe for such convertible or exchangeable securities shall be
deemed to be an issuance of Common Stock for purposes of clauses (i) and (ii)
above. In the case of any such issuance of options to purchase or rights to
subscribe for Common Stock, securities by their terms convertible into or
exchangeable for Common Stock, or options to purchase or rights to subscribe for
such convertible or exchangeable securities:

                                    a. the aggregate maximum number of shares of
Common Stock deliverable upon exercise of such options to purchase or rights to
subscribe for Common Stock shall be deemed to have been issued at the time such
options or rights were issued and for a consideration equal to the consideration
(determined in the manner provided in subdivisions (1) and (2) above), if any,
received by the Corporation upon the issuance of such options or rights plus the
minimum purchase price provided in such options or rights for the Common Stock
covered thereby;

                                    b. the aggregate maximum number of shares of
Common Stock deliverable upon conversion of or in exchange for any such
convertible or exchangeable securities or upon the exercise of options to
purchase or rights to subscribe for such convertible or exchangeable securities
and subsequent conversion or exchange thereof shall be deemed to have been
issued at the time such securities, options, or rights were issued and for a
consideration equal to the consideration received by the Corporation for any
such securities and related options or rights (excluding any cash received on
account of accrued interest or accrued dividends), plus the additional
consideration, if any, to be received by the Corporation upon the conversion or
exchange of such securities or the exercise of any related options or rights
(the consideration in each case to be determined in the manner provided in
subdivisions (1) and (2) above);

                                    c. on any change in the number of shares or
exercise price of Common Stock deliverable upon exercise of any such options or
rights or conversions of or exchange for such securities, other than a change
resulting from the anti-dilution provisions thereof, the applicable Conversion
Price shall forthwith be readjusted to such Conversion Price as would have been
obtained had the adjustment made upon the issuance of such options, rights or
securities not converted prior to such change or options or rights related to
such securities not converted prior to such change been made upon the basis of
such change; and

                                    d. on the expiration of any such options or
rights, the termination of any such rights to convert or exchange or the
expiration of any options or rights related to such convertible or exchangeable
securities, the applicable Conversion Price shall forthwith be readjusted to
such Conversion Price as would have been obtained had the adjustment made upon
the issuance of such options, rights, securities or options or rights related to
such securities been made upon the basis of the issuance of only the number of
shares of Common Stock actually issued upon the exercise of such options or
rights, upon the conversion or exchange of such securities, or upon the exercise
of the options or rights related to such securities and subsequent conversion or
exchange thereof.

                                      -9-

<PAGE>

                  (iv) "Excluded Stock" means (A) up to 8,600,000 shares of
Common Stock, and options therefor, issued or granted from time to time to
employees, directors and officers of and consultants to the Corporation pursuant
to agreements, plans or arrangements approved by the Board of Directors; (B)
shares of Common Stock issued upon conversion of shares of any series of
Preferred Stock; (C) shares of Common Stock issued by the Corporation as a stock
dividend or upon any subdivision, split-up or combination of shares of Common
Stock; and (D) shares of Common Stock issued in the Qualified Financing only if
the issuance price of such Common Stock is no less than 85% of the Original
Issuance Price so long as the Corporation does not agree to provide any
purchaser of Common Stock pursuant to such Qualified Financing with additional
contractual rights that are related to such issuance or otherwise provide such
purchaser with additional value.

                  (v) If, at any time after the Original Issuance Date, the
number of shares of Common Stock outstanding is increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split-up of shares of
Common Stock, then, following the record date for the determination of holder of
Common Stock entitled to receive such stock dividend, subdivision or split-up,
the Conversion Price shall be appropriately decreased so that the number of
shares of Common Stock issuable on conversion of each share of Preferred Stock
shall be increased in proportion to such increase in outstanding shares.

                  (vi) If, at any time after the Original Issuance Date, the
number of shares of Common Stock outstanding is decreased by a combination of
the outstanding shares of Common Stock, then, following the record date for such
combination, the Conversion Price shall be appropriately increased so that the
number of shares of Common Stock issuable on conversion of each share of
Preferred Stock shall be decreased in proportion to such decrease in outstanding
shares.

                  (vii) In the event of any capital reorganization of the
Corporation, any reclassification of the stock of the Corporation (other than a
change in par value or from par value to no par value or from no par value to
par value or as a result of a stock dividend or subdivision, split-up or
combination of shares), or any consolidation or merger of the Corporation (other
than a consolidation or merger in which the Corporation is the continuing
corporation and which does not result in any change in the Common Stock), each
share of Series B Preferred Stock shall after such reorganization,
reclassification, consolidation or merger (unless, in the case of a
consolidation or merger, payment shall have been made to the holders of Series B
Preferred Stock of the full amount to which they shall have been entitled
pursuant to Section 2 hereof) be convertible into the kind and number of shares
of stock or other securities or property of the Corporation or of the
corporation resulting from such consolidation or surviving such merger to which
the holder of the number of shares of Common Stock deliverable (immediately
prior to the time of such reorganization, reclassification, consolidation or
merger) upon conversion of such share of Series B Preferred Stock would have
been entitled upon such reorganization, reclassification, consolidation or
merger. The provisions of this clause shall similarly apply to successive
reorganizations, reclassifications, consolidations or mergers.

                                      -10-
<PAGE>

                  (viii) All calculations under this paragraph shall be made to
the nearest one hundredth (1/100) of a cent or the nearest one tenth (1/10) of a
share, as the case may be.

                  (ix) In any case in which the provisions of this paragraph (d)
shall require that an adjustment shall become effective immediately after a
record date of an event, the Corporation may defer until the occurrence of such
event (A) issuing to the holder of any share of Preferred Stock converted after
such record date and before the occurrence of such event the shares of capital
stock issuable upon such conversion by reason of the adjustment required by such
event in addition to the shares of capital stock issuable upon such conversion
before giving effect to such adjustments, and (B) paying to such holder any
amount in cash in lieu of a fractional share of capital stock pursuant to
paragraph (c) above; provided, however, that the Corporation shall deliver to
such holder an appropriate instrument evidencing such holder's right to receive
such additional shares and such cash.

         (e) Whenever the Conversion Price shall be adjusted as provided in
paragraph (d), the Corporation shall make available for inspection during
regular business hours, at its principal executive offices or at such other
place as may be designated by the Corporation, a statement, signed by its chief
executive officer, showing in detail the facts requiring such adjustment and the
Conversion Price that shall be in effect after such adjustment. The Corporation
shall also cause a copy of such statement to be sent by first class certified
mail, return receipt requested and postage prepaid, to each holder of Series B
Preferred Stock as to which the Conversion Price shall be so adjusted at such
holder's address appearing on the Corporation's records. Where appropriate, such
copy may be given in advance and may be included as part of any notice required
to be mailed under the provisions of paragraph (f) below.

         (f) If the Corporation shall propose to take any action of the types
described in clauses (v), (vi) or (vii) of paragraph (d) above, the Corporation
shall give notice to each holder of shares of Series B Preferred Stock, in the
manner set forth in paragraph (e) above, which notice shall specify the record
date, if any, with respect to any such action and the date on which such action
is to take place. Such notice shall also set forth such facts with respect
thereto as shall be reasonably necessary to indicate the effect of such action
(to the extent such effect may be known at the date of such notice) on the
Conversion Price and the number, kind or class of shares or other securities or
property which shall be deliverable or purchasable upon the occurrence of such
action or deliverable upon conversion of shares of Series B Preferred Stock. In
the case of any action which would require the fixing of a record date, such
notice shall be given at least 20 days prior to the date so fixed, and in case
of all other action, such notice shall be given at least 30 days prior to the
taking of such proposed action. Failure to give such notice, or any defect
therein, shall not affect the legality or validity of any such action.

                                      -11-
<PAGE>

         (g) The Corporation shall reserve, and at all times from and after the
date of Original Issuance Date keep reserved, free from preemptive rights, out
of its authorized but unissued shares of Common Stock, solely for the purpose of
effecting the conversion of the shares of Series B Preferred Stock, sufficient
shares of Common Stock to provide for the conversion of all outstanding shares
of Series B Preferred Stock.

         (h) At any time the Corporation makes or fixes a record date for the
determination of holders of Common Stock entitled to receive a dividend or other
distribution payable in securities of the Corporation other than shares of
Common Stock, provision shall be made so that each holder of shares of Series B
Preferred Stock shall receive upon conversion thereof, in addition to the shares
of Common Stock receivable thereupon, the number of securities of the
Corporation which it would have received had its shares of Series B Preferred
Stock been converted into shares of Common Stock on the date of such event and
had such holder thereafter, during the period from the date of such event to and
including the date of conversion, retained such securities receivable by it
pursuant to this paragraph during such period, subject to the sum of all other
adjustments called for during such period under this Section 4 with respect to
the rights of such holder of shares of Series B Preferred Stock.

6. Mandatory Conversion.

         (a) Upon the earlier of: (i) the consummation of the first underwritten
public offering for the account of the Corporation of its Common Stock pursuant
to a registration statement filed under the Securities Act of 1933, as amended,
at a net offering price per share of Common Stock that represents a pre-offering
market capitalization of no less than $200,000,000 and with aggregate proceeds
(net of underwriting discounts and commissions) to the Corporation of not less
than $25,000,000 (a "Qualified Public Offering"); or (ii) the consummation of a
Qualified Merger of the Corporation, each share of Series B Preferred Stock then
outstanding shall, by virtue of and simultaneously with such Qualified Public
Offering or Qualified Merger (as the case may be), be deemed automatically
converted into the number of fully paid and nonassessable shares of Common Stock
equal to the quotient obtained by dividing (i) the Original Issuance Price of
the Series B Preferred Stock by (ii) the applicable Conversion Price, as last
adjusted and then in effect.

         (b) As promptly as practicable after the date of consummation of any
Qualified Public Offering or Qualified Merger (as the case may be) and the
delivery to the Corporation of the certificate or certificates for the shares of
Series B Preferred Stock which have been converted, duly endorsed or assigned in
blank to the Corporation (if required by it), the Corporation shall issue and
deliver to or upon the written order of each holder of Series B Preferred Stock,
to the place designated by such holder, a certificate or certificates for the
number of full shares of Common Stock to which such holder is entitled, and a
cash amount in respect of any fractional interest in a share of Common Stock as
provided in paragraph (c) below. The person in whose name the certificate or
certificates for Common Stock are to be issued shall be deemed to have become a
holder of Common Stock of record on the date of such Qualified Public Offering
or Qualified Merger (as the case may be) and on such date the shares of Series B
Preferred Stock shall cease to be outstanding, whether or not the certificates
representing such shares have been received by the Corporation.

                                      -12-
<PAGE>

         (c) For purposes of this Section, the term "Qualified Merger" shall
mean an upstream merger of the Corporation with Provident American Corporation
("Provident") or the merger of the Corporation with a wholly-owned subsidiary of
Provident pursuant to which the Corporation shall be the only operating
subsidiary of Provident and Provident's only operations shall be within the
Corporation upon the following conditions:

                  (i) the merger is approved, in addition to such vote as may
otherwise be required by applicable law, by a majority vote of holders of the
Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock
of the Corporation;

                  (ii) the Corporation receives a fairness opinion from
BancBoston Robertson Stephens Inc (or such other investment banking firm as
approved by a majority vote of holders of the Series B, Series C and Series D
Preferred Stock) which approval shall not be unreasonably withheld, indicating
that the merger is fair to the stockholders of the Corporation, other than
Provident and its subsidiaries, from a financial point of view;

                  (iii) the securities to be issued to holders of the Preferred
Stock upon the completion of the merger shall be registered with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended,
freely tradeable and listed on a national securities exchange or quoted on the
NASDAQ Stock Market; and

                  (iv) the resulting entity has a market capitalization of at
least $200,000,000.

         (d) The Conversion Price in effect for purposes of a Qualified Public
Offering or Qualified Merger under this Section 6 shall be determined after
giving effect to the Conversion Price adjustment provisions set forth in Section
5 with respect to such Qualified Public Offering or Qualified Merger, as
applicable, in the same manner as they apply to the conversion of Series B
Preferred Stock pursuant to Section 5.

                                      -13-<PAGE>

                              AMENDED AND RESTATED
                           CERTIFICATE OF DESIGNATION
                                       OF
                              AMENDED AND RESTATED
                            ARTICLES OF INCORPORATION
                                       OF
                              HEALTHAXIS.COM, INC.

                  HEALTHAXIS.COM, INC., a Pennsylvania corporation (the
"Corporation"), acting pursuant to Section 1522 of the Pennsylvania Business
Corporation Law, does hereby submit the following Amended and Restated
Certificate of Designation of Series and Determination of Rights and Preferences
of its Series C Convertible Preferred Stock (the "Series C Preferred Stock").

                  FIRST:  The name of the Corporation is HealthAxis.com, Inc.

                  SECOND: By unanimous written consent of the Board of Directors
of the Corporation dated December 8, 1999 the following resolutions were duly
adopted:

                  WHEREAS the Board of Directors of the Corporation is
authorized, subject to limitations prescribed by law and by the provisions of
Article 5 of the Corporation's Amended and Restated Articles of Incorporation,
to establish and fix the number of shares to be included in any series of
Preferred Stock and the designation, rights, preferences and limitations of the
shares of each series; and

                  NOW, THEREFORE, BE IT RESOLVED that pursuant to Article 5 of
the Corporation's Amended and Restated Articles of Incorporation, the
designation, rights, preferences, powers, restrictions and limitations
applicable to the Series C Preferred Stock be and hereby are revised and set
forth in this Amended and Restated Certificate of Designation which supplements
Article 5 as follows:

<PAGE>

         1. Dividends.

                  (a) The holder of each share of Series C Preferred Stock shall
be entitled to receive such dividends as declared by the Board of Directors of
the Corporation in its discretion, out of funds legally available for that
purpose. Dividends on each share of Series C Preferred Stock, if and when
declared, shall accrue from the applicable date of declaration so that if at any
time Accrued Dividends (as hereinafter defined) upon the Series C Preferred
Stock shall not have been paid, the amount and deficiency in such dividends
shall be fully paid (but without interest) or dividends which have been declared
on the shares of the Series C Preferred Stock and a sum sufficient for the
payment thereof shall have been set apart for such payment, before any dividend
shall be declared or paid or any other distribution ordered or made upon shares
of common stock of the Corporation ("Common Stock") or any shares of Preferred
Stock of the Corporation which are junior to the Series C Preferred Stock with
respect to the payment of dividends or distribution of assets of the Corporation
or both, including without limitation the Series A Preferred Stock, (the "Junior
Stock") and before any sum or sums shall be set aside for or applied to the
purchase or redemption of any shares of Common Stock or the Junior Stock, other
than the repurchase by the Corporation of shares of Common Stock from any
employee thereof upon cessation of their employment, which shall under all
circumstances be permitted notwithstanding the foregoing; provided, however,
that in the event the Corporation proposes to pay any dividend upon the shares
of Common Stock or any class of Junior Stock, dividends shall have been declared
on the shares of Series C Preferred Stock and a sum paid to the holders thereof
or a sum sufficient for the payment thereof shall have been set apart for such
payment, which sum equals a dividend per share of Series C Preferred Stock which
is not less than the proposed dividend per share to be paid on the Common Stock
or such other Junior Stock, as the case may be (determined, in the case of the
Series C Preferred Stock, on an as converted basis).

                  (b) "Accrued Dividends" shall mean that amount that shall be
equal to dividends declared by the Board of Directors, if any, on the Series C
Preferred Stock (plus any other dividends declared but unpaid) for the period of
time elapsed from the declaration date by the board to the date as of which
Accrued Dividends are to be paid less an amount equal to all dividends paid on
the Series C Preferred Stock through the date of calculation thereof.

                  (c) "set apart for payment" shall be deemed to include the
recording by the Corporation in its accounting ledgers of any accounting or
bookkeeping entry which indicates, pursuant to a declaration of dividends or
other distribution by the Board of Directors of the Corporation, the allocation
of funds to be so paid on any series or class of capital stock of the
Corporation; provided, however, that if any funds for any class of series of
Junior Stock or any class of series of stock ranking on a parity with the Series
C Preferred Stock as to the payment of dividends are placed in a separate
account of the Corporation or delivered to a disbursing, paying or other similar
agent, then "set apart for payment" with respect to the Series C Preferred Stock
shall mean placing such funds in a separate account or delivering such funds to
a disbursing, paying or other similar agent.

                                      -2-
<PAGE>

         2. Liquidation.

                  (a) Upon a Liquidation (as defined below), after payment or
provision for payment of the debts and other liabilities of the Corporation and
all amounts which the holder of the Series B Preferred Stock or any other class
of capital stock ranking senior to the Series C Preferred Stock shall be
entitled to receive upon such Liquidation:

                           (i) the  holders of Series C Preferred Stock shall be
entitled to receive, prior and in preference to the holders of Common Stock, and
Series A Preferred Stock out of the remaining assets of the Corporation
available for distribution to its stockholders with respect to each share of
Series C Preferred Stock, an amount (the "Series C Preference Amount") per share
of Series C Preferred Stock equal to the sum of (A) $5.77 (the "Original
Issuance Price" of the Series C Preferred Stock) and (B) all Accrued Dividends
payable, if any, with respect to such shares under Section 1. If upon any
Liquidation the assets of the Corporation available for distribution to its
stockholders shall be insufficient to pay the holders of Series C Preferred
Stock the full respective Series C Preference Amounts and the holders of Series
D Preferred Stock the full respective Series D Preference Amount (as set forth
in the Series D Certificate of Designation) ("Series D Preference Amount") to
which they shall respectively be entitled, the holders of Series C and Series D
Preferred Stock shall share ratably in any distribution of assets based on the
amounts which would be payable to them on or with respect to the shares of
Series C or Series D Preferred Stock held by them upon such distribution
pursuant to this Section 2 as if all amounts payable on or with respect to such
shares were paid in full.

                           (ii) After the distribution to the holders of Series
B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock the
full amounts of their preference, the holders of Series A Preferred Stock shall
be entitled to receive, prior and in preference to the holders of Common Stock,
out of the remaining assets of the Corporation available for distribution to its
Stockholders with respect to each share of Series A Preferred Stock an amount
per share of Series A Preferred Stock equal to its liquidation preference as
currently provided (the "Series A Preference Amount"). If upon any Liquidation
the assets of the Corporation available for distribution to its stockholders
shall be insufficient to pay the holders of Series A Preferred Stock the full
respective Series A Preference Amounts to which they shall be entitled, the
holders of Series A Preferred Stock shall share ratably in any distribution of
assets based on the amounts which would be payable to them on or with respect to
the shares of Series A Preferred Stock held by them upon such distribution
pursuant to this Section 2 as if all amounts payable on or with respect to such
shares were paid in full.

                           (iii) After distribution to the holders of Series B
Preferred Stock of the full Series B Preference Amount as set forth in the
Amended and Restated Certificate of Designation related to the Series B
Preferred Stock, distribution to holders of Series C Preferred Stock of the full
Series C Preference Amount and to the holders of Series D Preferred Stock of the
full Series D Preference Amount as set forth in Section 2(a)(i), and
distribution to the holders of Series A Preferred Stock of the full Series A
Preference Amount as set forth in the Certificate of Designations related to the
Series A Preferred Stock, the holders of Series A Preferred Stock, Series B
Preferred Stock, Series C Preferred Stock, Series D Preferred Stock and Common
Stock shall be entitled to receive, on a pari passu basis (determined, in the
case of Series A Preferred, Series B Preferred, Series C Preferred and Series D
Preferred Stock, on an "as converted" basis), the remaining assets of the
Corporation available for distribution to its stockholders.

                                      -3-
<PAGE>

                  (b) For purposes of this Section 2, a Corporate Transaction
(as defined below) shall be treated as a Liquidation and shall entitle the
holders of Preferred Stock to receive, upon the consummation of such Corporate
Transaction, consideration in the same form as is to be provided in such
Corporate Transaction (whether cash, securities, other property or any
combination thereof), having a value (as determined in accordance with the next
sentence) equivalent to the amounts to which such holders of Series A Preferred
Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred
Stock would otherwise have been entitled pursuant to Section 2(a) assuming such
Corporate Transaction had constituted a Liquidation within the meaning of said
Section 2(a).

                  (c) As used herein, the following terms shall have the
following respective meanings:

                           (i) "Corporate Transaction" means (A) any
consolidation or merger of the Corporation, other than any merger or
consolidation resulting in the holders of the capital stock of the Corporation
entitled to vote for the election of directors holding a majority of the capital
stock of the surviving or resulting entity entitled to vote for the election of
directors, (B) any person or entity (including any affiliates thereof) becoming
the holder of a majority of the capital stock of the Corporation entitled to
vote for the election of directors, or (C) any sale or other disposition by the
Corporation of all or substantially all of its assets. Notwithstanding the
foregoing, the merger of the Corporation with Insurdata Incorporated shall not
constitute a Corporate Transaction.

                           (ii) "Liquidation" means any voluntary or involuntary
liquidation, dissolution or winding up of the affairs of the Corporation, other
than any dissolution, liquidation or winding up in connection with any
reincorporation of the Corporation in another jurisdiction.

                           (iii) "Original Issuance Date" means the date of
original issuance of the first share of Series C Preferred Stock.

         3. Voting Rights.

                  (a) In addition to the rights provided by law or in the
Corporation's By-laws, each share of Series C Preferred Stock shall entitle the
holder thereof to such number of votes as shall equal the nearest whole number
of shares of Common Stock into which such share of Series C Preferred Stock is
then convertible pursuant to Section 4. Except as provided in paragraph (b)
below or as otherwise provided by law, the holders of Series C Preferred Stock,
shall be entitled to vote on all matters as to which holders of Common Stock
shall be entitled to vote, in the same manner and with the same effect as such
holders of Common Stock, voting together with the holders of Common Stock as one
class.

                  (b) The Corporation shall not, without the affirmative consent
or approval of the holders of at least a majority of the shares of Series C
Preferred Stock then outstanding, voting as a separate class:

                                      -4-
<PAGE>

                           (1) authorize, create, designate or establish any
class or series of capital stock or any note, debenture, bond or other security
or other instrument convertible into or exchangeable for any security ranking
senior or pari passu with the Series C Preferred Stock or reclassify any shares
of Common Stock or any other shares of any class or series of Preferred Stock
into shares having any preference or priority as to dividends or the
distribution of assets superior or pari passu to any such preference or priority
of the Series C Preferred Stock;

                           (2) in any other manner amend or modify the powers,
privileges, preferences, or rights, or qualifications, limitations or
restrictions of the Series C Preferred Stock as to materially adversely affect
the holders thereof;

                           (3) amend, repeal or modify any provision of the
Amended and Restated Articles of Incorporation of the Corporation so as to
materially adversely affect the powers, privileges, preferences or rights, or
qualifications, limitations or restrictions, of the shares of Series C Preferred
Stock;

                           (4) amend the By-laws of the Corporation in any
manner that would materially adversely affect the powers, preferences or rights,
or qualifications, limitations or restrictions of the Series C Preferred Stock;

                           (5) increase the total number of authorized shares of
Series C Preferred Stock;

                           (6) consummate any Corporate Transaction;

                           (7) directly or indirectly pay or declare any
dividend or make any distribution upon, or redeem, retire or repurchase or
otherwise acquire, any shares of capital stock or other securities of the
Corporation other than the Series B Preferred Stock (other than the repurchase
of Common Stock from employees upon termination or employment); and

                           (8) consummate any transaction whereby the
Corporation shall obtain control, directly or indirectly, of an insurance
corporation.

         4. Optional Conversion.

                  (a) Upon the terms set forth in this Section 4, the holder of
shares of Series C Preferred Stock shall have the right, at the holder's option,
at any time and from time to time, to convert any of such shares into the number
of fully paid and nonassessable shares of Common Stock equal to the quotient
obtained by dividing (i) the Original Issuance Price of the Series C Preferred
Stock by (ii) the Conversion Price (as defined below) therefor, as last adjusted
and then in effect, by surrender of the certificates representing the shares of
Series C Preferred Stock to be converted. The conversion price per share at
which shares of Common Stock shall be issuable upon conversion of shares of
Series C Preferred Stock shall initially be the Original Issuance Price for the
Series C Preferred Stock (the "Conversion Price"), subject to adjustment as set
forth in paragraph (d) below.

                                      -5-
<PAGE>

                  (b) The holder of the shares of Series C Preferred Stock may
exercise the conversion right pursuant to paragraph (a) above by delivering to
the Corporation the certificate or certificates for the shares to be converted,
duly endorsed or assigned in blank or to the Corporation (if required by it),
accompanied by written notice stating that the holder elects to convert such
shares and stating the name or names (with address) in which the certificate or
certificates for the shares of Common Stock are to be issued. Conversion shall
be deemed to have been effected on the date when such delivery is made (the
"Conversion Date"). As promptly as practicable thereafter, the Corporation shall
issue and deliver to at such holder's address appearing on the Corporation's
records or upon the written order of such holder, to the place designated by
such holder, a certificate or certificates for the number of full shares of
Common Stock to which such holder is entitled, and a cash amount in respect of
any fractional interest in a share of Common Stock as provided in paragraph (c)
below. The person in whose name the certificate or certificates for Common Stock
are to be issued shall be deemed to have become a stockholder of record on the
applicable Conversion Date unless the transfer books of the Corporation are
closed on that date, in which event such person shall be deemed to have become a
stockholder of record on the next succeeding date on which the transfer books
are open, but the Conversion Price shall be that in effect on the Conversion
Date. Upon conversion of only a portion of the number of shares covered by a
certificate representing shares of Series C Preferred Stock surrendered for
conversion, the Corporation shall issue and deliver to or upon the written order
of the holder of the certificate so surrendered for conversion, at the expense
of the Corporation, a new certificate covering the number of shares of Series C
Preferred Stock representing the unconverted portion of the certificate so
surrendered.

                  (c) No fractional shares of Common Stock or scrip shall be
issued upon conversion of shares of Series C Preferred Stock. The number of full
shares of Common Stock issuable upon conversion of Series C Preferred Stock
shall be computed on the basis of the aggregate number of shares of Series C
Preferred Stock to be converted. Instead of any fractional shares of Common
Stock which would otherwise be issuable upon conversion of any shares of Series
C Preferred Stock, the Corporation shall pay a cash adjustment in respect of
such fractional interest in an amount equal to the product of (i) the price of
one share of Common Stock as determined in good faith by the Board of Directors
and (ii) such fractional interest. The holders of fractional interests shall not
be entitled to any rights as stockholders of the Corporation in respect of such
fractional interests.

                  (d) The Conversion Price applicable to the Series C Preferred
Stock shall be subject to adjustment from time to time as follows:

                           (i) If the Corporation shall at any time following
the Original Issuance Date issue any shares of Common Stock (including shares of
Common Stock deemed to be issued pursuant to subdivision (3) of clause (ii)
below) other than Excluded Stock (as defined in clause (iii) below), without
consideration or for a consideration per share less than the Conversion Price
applicable to the Series C Preferred Stock in effect immediately prior to each
such issuance of equity, then the applicable Conversion Price in effect
immediately prior to each such issuance shall forthwith be lowered to a price
equal to the amount of such lower consideration per share.

                           (ii) For the purposes of any adjustment of the
Conversion Price pursuant to clause (i), the following provisions shall be
applicable:

                                      -6-
<PAGE>

                                    (1) In the case of the issuance of Common
Stock for cash in a public offering or private placement, the consideration
shall be deemed to be the amount of cash paid therefor after deducting therefrom
any discounts, commissions or placement fees payable by the Corporation to any
underwriter or placement agent in connection with the issuance and sale thereof.

                                    (2) In the case of the issuance of Common
Stock for a consideration in whole or in part other than cash, the consideration
other than cash shall be deemed to be the Fair Market Value thereof (such Fair
Market Value being determined as provided in the definition thereof but with
reference to such consideration), irrespective of any accounting treatment.

                                    (3) The issuance after the Original Issuance
Date of options or warrants to purchase or rights to subscribe for Common Stock,
securities by their terms convertible into or exchangeable for Common Stock, or
options or warrants to purchase or rights to subscribe for such convertible or
exchangeable securities shall be deemed to be an issuance of Common Stock for
purposes of clauses (i) and (ii) above. In the case of any such issuance of
options or warrants to purchase or rights to subscribe for Common Stock,
securities by their terms convertible into or exchangeable for Common Stock, or
options or warrants to purchase or rights to subscribe for such convertible or
exchangeable securities:

                                        a. the aggregate maximum number of
shares of Common Stock deliverable upon exercise of such options or warrants to
purchase or rights to subscribe for Common Stock shall be deemed to have been
issued at the time such options, warrants or rights were issued and for a
consideration equal to the consideration (determined in the manner provided in
subdivisions (1) and (2) above), if any, received by the Corporation upon the
issuance of such options, warrants or rights plus the minimum purchase price
provided in such options or rights for the Common Stock covered thereby;

                                        b. the aggregate maximum number of
shares of Common Stock deliverable upon conversion of or in exchange for any
such convertible or exchangeable securities or upon the exercise of options to
purchase or rights to subscribe for such convertible or exchangeable securities
and subsequent conversion or exchange thereof shall be deemed to have been
issued at the time such securities, options, or rights were issued and for a
consideration equal to the consideration received by the Corporation for any
such securities and related options or rights (excluding any cash received on
account of accrued interest or accrued dividends), plus the additional
consideration, if any, to be received by the Corporation upon the conversion or
exchange of such securities or the exercise of any related options or rights
(the consideration in each case to be determined in the manner provided in
subdivisions (1) and (2) above);

                                        c. on any change in the number of shares
or exercise price of Common Stock deliverable upon exercise of any such options
or rights or conversions of or exchange for such securities, other than a change
resulting from the anti-dilution provisions thereof, the applicable Conversion
Price shall forthwith be readjusted to such Conversion Price as would have been
obtained had the adjustment made upon the issuance of such options, rights or
securities not converted prior to such change or options or rights related to
such securities not converted prior to such change been made upon the basis of
such change; and

                                      -7-
<PAGE>

                                        d. on the expiration of any such options
or rights, the termination of any such rights to convert or exchange or the
expiration of any options or rights related to such convertible or exchangeable
securities, the applicable Conversion Price shall forthwith be readjusted to
such Conversion Price as would have been obtained had the adjustment made upon
the issuance of such options, rights, securities or options or rights related to
such securities been made upon the basis of the issuance of only the number of
shares of Common Stock actually issued upon the exercise of such options or
rights, upon the conversion or exchange of such securities, or upon the exercise
of the options or rights related to such securities and subsequent conversion or
exchange thereof.

                           (iii) "Excluded Stock" means (A) up to 8,600,000
shares of Common Stock, and options or warrants therefor (subject to equitable
adjustment for stock splits, stock dividends, combinations and like
occurrences), issued or granted from time to time to employees, directors and
officers of and consultants to the Corporation pursuant to agreements, plans or
arrangements approved or to be approved by the Board of Directors; provided
that, any shares of Common Stock, options or warrants issued after the date of
filing of the first Certificate of Designation for the Series C Preferred Stock
must be issued at a price of not less than $4.00; (B) shares of Common Stock
issued upon conversion of shares of any series of Preferred Stock; (C) shares
issued pursuant to warrants previously granted to America Online, Inc. and UICI;
(D) shares of Common Stock issued by the Corporation as a stock dividend or
stock split or upon any subdivision, split-up or combination of shares of Common
Stock; and (E) shares of Common Stock issued pursuant to the market price
protection provisions of the Series C Stock Purchase Agreement.

                           (iv) If, at any time after the Original Issuance
Date, the number of shares of Common Stock outstanding is increased by a stock
dividend payable in shares of Common Stock or by a subdivision or split-up of
shares of Common Stock, then, following the record date for the determination of
holder of Common Stock entitled to receive such stock dividend, subdivision or
split-up, the Conversion Price shall be appropriately decreased so that the
number of shares of Common Stock issuable on conversion of each share of Series
C Preferred Stock shall be increased in proportion to such increase in
outstanding shares.

                           (v) If, at any time  after the Original Issuance
Date, the number of shares of Common Stock outstanding is decreased by a
combination of the outstanding shares of Common Stock, then, following the
record date for such combination, the Conversion Price shall be appropriately
increased so that the number of shares of Common Stock issuable on conversion of
each share of Preferred Stock shall be decreased in proportion to such decrease
in outstanding shares.

                           (vi) In the event of any capital reorganization of
the Corporation, any reclassification of the stock of the Corporation (other
than a change in par value or from par value to no par value or from no par
value to par value or as a result of a stock dividend or subdivision, split-up
or combination of shares), or any consolidation or merger of the Corporation
(other than a consolidation or merger in which the Corporation is the continuing
corporation and which does not result in any change in the Common Stock), each
share of Series C Preferred Stock shall after such reorganization,
reclassification, consolidation or merger (unless, in the case of a
consolidation or merger, payment shall have been made to the holders of Series C
Preferred Stock of the full amount to which they shall have been entitled
pursuant to Section 2 hereof) be convertible into the kind and number of shares
of stock or other securities or property of the Corporation or of the
corporation resulting from such consolidation or surviving such merger to which
the holder of the number of shares of Common Stock deliverable (immediately
prior to the time of such reorganization, reclassification, consolidation or
merger) upon conversion of such share of Series C Preferred Stock would have
been entitled upon such reorganization, reclassification, consolidation or
merger. The provisions of this clause shall similarly apply to successive
reorganizations, reclassifications, consolidations or mergers.

                                      -8-
<PAGE>

                           (vii) All calculations under this paragraph shall be
made to the nearest one hundredth (1/100) of a cent or the nearest one tenth
(1/10) of a share, as the case may be.

                           (viii) In any case in which the provisions of this
paragraph (d) shall require that an adjustment shall become effective
immediately after a record date of an event, the Corporation may defer until the
occurrence of such event (A) issuing to the holder of any share of Preferred
Stock converted after such record date and before the occurrence of such event
the shares of capital stock issuable upon such conversion by reason of the
adjustment required by such event in addition to the shares of capital stock
issuable upon such conversion before giving effect to such adjustments, and (B)
paying to such holder any amount in cash in lieu of a fractional share of
capital stock pursuant to paragraph (c) above; provided, however, that the
Corporation shall deliver to such holder an appropriate instrument evidencing
such holder's right to receive such additional shares and such cash.

                  (e) Whenever the Conversion Price shall be adjusted as
provided in paragraph (d), the Corporation shall make available for inspection
during regular business hours, at its principal executive offices or at such
other place as may be designated by the Corporation, a statement, signed by its
chief executive officer, showing in detail the facts requiring such adjustment
and the Conversion Price that shall be in effect after such adjustment. The
Corporation shall also cause a copy of such statement to be sent by first class
certified mail, return receipt requested and postage prepaid, to each holder of
Series C Preferred Stock as to which the Conversion Price shall be so adjusted
at such holder's address appearing on the Corporation's records. Where
appropriate, such copy may be given in advance and may be included as part of
any notice required to be mailed under the provisions of paragraph (f) below.

                  (f) If the Corporation shall propose to take any action of the
types described in clauses (iv), (v) or (vi) of paragraph (d) above, the
Corporation shall give notice to each holder of shares of Series C Preferred
Stock, in the manner set forth in paragraph (e) above, which notice shall
specify the record date, if any, with respect to any such action and the date on
which such action is to take place. Such notice shall also set forth such facts
with respect thereto as shall be reasonably necessary to indicate the effect of
such action (to the extent such effect may be known at the date of such notice)
on the Conversion Price and the number, kind or class of shares or other
securities or property which shall be deliverable or purchasable upon the
occurrence of such action or deliverable upon conversion of shares of Series C
Preferred Stock. In the case of any action which would require the fixing of a
record date, such notice shall be given at least 20 days prior to the date so
fixed, and in case of all other action, such notice shall be given at least 30
days prior to the taking of such proposed action. Failure to give such notice,
or any defect therein, shall not affect the legality or validity of any such
action.

                                      -9-
<PAGE>

                  (g) The Corporation shall reserve, and at all times from and
after the date of Original Issuance Date keep reserved, free from preemptive
rights, out of its authorized but unissued shares of Common Stock, solely for
the purpose of effecting the conversion of the shares of Series C Preferred
Stock, sufficient shares of Common Stock to provide for the conversion of all
outstanding shares of Series C Preferred Stock.

                  (h) At any time the Corporation makes or fixes a record date
for the determination of holders of Common Stock entitled to receive a dividend
or other distribution payable in securities of the Corporation other than shares
of Common Stock, provision shall be made so that each holder of shares of Series
C Preferred Stock shall receive upon conversion thereof, in addition to the
shares of Common Stock receivable thereupon, the number of securities of the
Corporation which it would have received had its shares of Series C Preferred
Stock been converted into shares of Common Stock on the date of such event and
had such holder thereafter, during the period from the date of such event to and
including the date of conversion, retained such securities receivable by it
pursuant to this paragraph during such period, subject to the sum of all other
adjustments called for during such period under this Section 4 with respect to
the rights of such holder of shares of Series C Preferred Stock.

         5. Mandatory Conversion.

                  (a) Upon the earlier of: (i) the consummation of the first
underwritten public offering for the account of the Corporation of its Common
Stock pursuant to a registration statement filed under the Securities Act of
1933, as amended, (the "Securities Act") at a net offering price per share of
Common Stock that represents a pre-offering market capitalization of no less
than $200,000,000 and with aggregate proceeds (net of underwriting discounts and
commissions) to the Corporation of not less than $25,000,000 (a "Qualified
Public Offering"); or (ii) the consummation of a Qualified Merger of the
Corporation, each share of Series C Preferred Stock then outstanding shall, by
virtue of and simultaneously with such Qualified Public Offering or Qualified
Merger (as the case may be), be deemed automatically converted into the number
of fully paid and nonassessable shares of Common Stock equal to the quotient
obtained by dividing (i) the Original Issuance Price of the Series C Preferred
Stock by (ii) the applicable Conversion Price, as last adjusted and then in
effect.

                  (b) As promptly as practicable after the date of consummation
of any Qualified Public Offering or Qualified Merger (as the case may be) and
the delivery to the Corporation of the certificate or certificates for the
shares of Series C Preferred Stock which have been converted, duly endorsed or
assigned in blank to the Corporation (if required by it), the Corporation shall
issue and deliver to or upon the written order of each holder of Series C
Preferred Stock, to the place designated by such holder, a certificate or
certificates for the number of full shares of Common Stock to which such holder
is entitled, and a cash amount in respect of any fractional interest in a share
of Common Stock as provided in paragraph (c) below. The person in whose name the
certificate or certificates for Common Stock are to be issued shall be deemed to
have become a holder of Common Stock of record on the date of such Qualified
Public Offering or Qualified Merger (as the case may be) and on such date the
shares of Series C Preferred Stock shall cease to be outstanding, whether or not
the certificates representing such shares have been received by the Corporation.

                                      -10-
<PAGE>

         (c) For purposes of this Section, the term "Qualified Merger" shall
mean an upstream merger of the Corporation with Provident American Corporation
("Provident") or the merger of the Corporation with a wholly-owned subsidiary of
Provident pursuant to which the Corporation shall be the only operating
subsidiary of Provident and Provident's only operations shall be within the
Corporation upon the following conditions:

                  (i) the merger is approved, in addition to such vote as may
otherwise be required by applicable law, by a majority vote of holders of the
Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock
of the Corporation;

                  (ii) the Corporation receives a fairness opinion from
BancBoston Robertson Stephens Inc. (or such other investment banking firm, as
approved by a majority vote of holders of the Series B, Series C and Series D
Preferred Stock) indicating that the merger is fair to the stockholders of the
Corporation, other than Provident and its subsidiaries, from a financial point
of view;

                  (iii) the securities to be issued to holders of the Preferred
Stock upon the completion of the merger shall be registered with the Securities
and Exchange Commission pursuant to the Securities Act of 1933, as amended,
freely tradeable and listed on a national securities exchange or quoted on the
NASDAQ Stock Market; and

                  (iv) the resulting entity has a market capitalization of at
least $200,000,000.

         (d) The Conversion Price in effect for purposes of a Qualified Public
Offering or Qualified Merger under this Section 5 shall be determined after
giving effect to the Conversion Price adjustment provisions set forth in Section
4 with respect to such Qualified Public Offering or Qualified Merger, as
applicable, in the same manner as they apply to the conversion of Series C
Preferred Stock pursuant to Section 4.

                                      -11-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]