>>Note F - AOL Interactive Marketing Agreement
HealthAxis's Amended and Restated Interactive Marketing Agreement ("IM Agreement") with AOL, dated November 13, 1998, provides that HealthAxis will be the exclusive third-party direct marketer of managed-care and indemnity health insurance policies, dental insurance, vision insurance, prescription coverage, critical care insurance and long-term care insurance coverage and, subject to certain restrictions, the non-exclusive third party marketer of life and long-term disability (collectively, the "Products") for individuals and groups of less than fifty individuals in the United States via AOL's online service.
Under the IM Agreement, AOL will advertise the Products to its subscribers on AOL's online network and the Products will be sold online through HealthAxis's web site. The amount of promotions that AOL will provide HealthAxis is contingent upon HealthAxis's ability to offer policies in all of the fifty states, the quality of the policies offered, the adherence of HealthAxis to AOL's standards and other similar factors. The IM Agreement's initial term ends January 31, 2000, and can be extended for a renewal term of two additional years at HealthAxis's election. Upon expiration of both the initial and the renewal terms, AOL may renew the IM Agreement for additional one-year terms. See Note AA<< |
