-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DIzFWmCk60U+ZbTU8kS1csX/V96qFnV4udIAKB4qiSWSBfV7oqR7oRwPCVua0YO+ csiD44l5mOxCmsi8UKMUfA== 0000890163-08-000227.txt : 20080410 0000890163-08-000227.hdr.sgml : 20080410 20080410152220 ACCESSION NUMBER: 0000890163-08-000227 CONFORMED SUBMISSION TYPE: SC 13D PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20080410 DATE AS OF CHANGE: 20080410 GROUP MEMBERS: CO-INVEST II CAPITAL PARTNERS, INC. GROUP MEMBERS: CO-INVEST MANAGEMENT II, L.P. GROUP MEMBERS: DONALD R. CALDWELL GROUP MEMBERS: THE CO-INVESTMENT FUND II, L.P. SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: HEALTH BENEFITS DIRECT CORP CENTRAL INDEX KEY: 0001309442 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 980438502 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D SEC ACT: 1934 Act SEC FILE NUMBER: 005-81505 FILM NUMBER: 08749904 BUSINESS ADDRESS: STREET 1: 5 RADNOR CORPORATE CENTER STREET 2: SUITE 555 CITY: RADNOR STATE: PA ZIP: 19087 BUSINESS PHONE: 610-971-6197 MAIL ADDRESS: STREET 1: 5 RADNOR CORPORATE CENTER STREET 2: SUITE 555 CITY: RADNOR STATE: PA ZIP: 19087 FORMER COMPANY: FORMER CONFORMED NAME: DARWIN RESOURCES CORP. DATE OF NAME CHANGE: 20041123 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: CO-INVESTMENT FUND II, L.P. CENTRAL INDEX KEY: 0001431931 IRS NUMBER: 203863585 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D BUSINESS ADDRESS: STREET 1: FIVE RADNOR CORPORATE CENTER STREET 2: 100 MATSONFORD ROAD, SUITE 555 CITY: RADNOR STATE: PA ZIP: 19087 BUSINESS PHONE: 610-995-2650 MAIL ADDRESS: STREET 1: FIVE RADNOR CORPORATE CENTER STREET 2: 100 MATSONFORD ROAD, SUITE 555 CITY: RADNOR STATE: PA ZIP: 19087 SC 13D 1 s11-8322_13d.txt SCHEDULE 13D SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 SCHEDULE 13D Under the Securities Exchange Act of 1934 HEALTH BENEFITS DIRECT CORPORATION - ------------------------------------------------------------------------------- (Name of Issuer) COMMON STOCK, $.001 PAR VALUE PER SHARE - ------------------------------------------------------------------------------- (Title of Class of Securities) 42220V107 - ------------------------------------------------------------------------------- (CUSIP Number) DONALD R. CALDWELL FIVE RADNOR CORPORATE CENTER, SUITE 555 RADNOR, PENNSYLVANIA 19087 (610) 995-2650 - ------------------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) MARCH 31, 2008 - ------------------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition which is the subject of this Schedule 13D, and is filing this schedule because of ss.ss. 240.13d-1(e), ss.ss. 240.13d-1(f), or ss.ss. 240.13d-1(g), check the following box: [ ]. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act. CUSIP No. 42220V107 - ------------------------------------------------------------------------------- (1) Name of reporting persons: THE CO-INVESTMENT FUND II, L.P. - ------------------------------------------------------------------------------- (2) Check the appropriate box if a member of a group (see instructions) (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- (3) SEC use only - ------------------------------------------------------------------------------- (4) Source of funds (see instructions) OO - ------------------------------------------------------------------------------- (5) Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- (6) Citizenship or place of organization Delaware - ------------------------------------------------------------------------------- Number of shares beneficially owned by each reporting person with: - ------------------------------------------------------------------------------- (7) Sole voting power - ------------------------------------------------------------------------------- (8) Shared voting power 11,599,010 - ------------------------------------------------------------------------------- (9) Sole dispositive power - ------------------------------------------------------------------------------- (10) Shared dispositive power 11,599,010 - ------------------------------------------------------------------------------- (11) Aggregate amount beneficially owned by each reporting person 11,599,010 - ------------------------------------------------------------------------------- (12) Check if the aggregate amount in Row (11) excludes certain shares (see instructions) [ ] - ------------------------------------------------------------------------------- (13) Percent of class represented by amount in Row (11) 24.8% - ------------------------------------------------------------------------------- (14) Type of reporting person (see instructions) PN - ------------------------------------------------------------------------------- 2 CUSIP No. 42220V107 - ------------------------------------------------------------------------------- (1) Name of reporting persons: CO-INVEST MANAGEMENT II, L.P. - ------------------------------------------------------------------------------- (2) Check the appropriate box if a member of a group (see instructions) (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- (3) SEC use only - ------------------------------------------------------------------------------- (4) Source of funds (see instructions) OO - ------------------------------------------------------------------------------- (5) Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- (6) Citizenship or place of organization Delaware - ------------------------------------------------------------------------------- Number of shares beneficially owned by each reporting person with: - ------------------------------------------------------------------------------- (7) Sole voting power - ------------------------------------------------------------------------------- (8) Shared voting power 11,599,010 - ------------------------------------------------------------------------------- (9) Sole dispositive power - ------------------------------------------------------------------------------- (10) Shared dispositive power 11,599,010 - ------------------------------------------------------------------------------- (11) Aggregate amount beneficially owned by each reporting person 11,599,010 - ------------------------------------------------------------------------------- (12) Check if the aggregate amount in Row (11) excludes certain shares (see instructions) [ ] - ------------------------------------------------------------------------------- (13) Percent of class represented by amount in Row (11) 24.8% - ------------------------------------------------------------------------------- (14) Type of reporting person (see instructions) PN - ------------------------------------------------------------------------------- 3 CUSIP No. 42220V107 - ------------------------------------------------------------------------------- (1) Name of reporting persons: CO-INVEST II CAPITAL PARTNERS, INC. - ------------------------------------------------------------------------------- (2) Check the appropriate box if a member of a group (see instructions) (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- (3) SEC use only - ------------------------------------------------------------------------------- (4) Source of funds (see instructions) OO - ------------------------------------------------------------------------------- (5) Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- (6) Citizenship or place of organization Delaware - ------------------------------------------------------------------------------- Number of shares beneficially owned by each reporting person with: - ------------------------------------------------------------------------------- (7) Sole voting power - ------------------------------------------------------------------------------- (8) Shared voting power 11,599,010 - ------------------------------------------------------------------------------- (9) Sole dispositive power - ------------------------------------------------------------------------------- (10) Shared dispositive power 11,599,010 - ------------------------------------------------------------------------------- (11) Aggregate amount beneficially owned by each reporting person 11,599,010 - ------------------------------------------------------------------------------- (12) Check if the aggregate amount in Row (11) excludes certain shares (see instructions) [ ] - ------------------------------------------------------------------------------- (13) Percent of class represented by amount in Row (11) 24.8% - ------------------------------------------------------------------------------- (14) Type of reporting person (see instructions) CO - ------------------------------------------------------------------------------- 4 CUSIP No. 42220V107 - ------------------------------------------------------------------------------- (1) Name of reporting persons: DONALD R. CALDWELL - ------------------------------------------------------------------------------- (2) Check the appropriate box if a member of a group (see instructions) (a) [ ] (b) [ ] - ------------------------------------------------------------------------------- (3) SEC use only - ------------------------------------------------------------------------------- (4) Source of funds (see instructions) OO - ------------------------------------------------------------------------------- (5) Check if disclosure of legal proceedings is required pursuant to Items 2(d) or 2(e) [ ] - ------------------------------------------------------------------------------- (6) Citizenship or place of organization United States of America - ------------------------------------------------------------------------------- Number of shares beneficially owned by each reporting person with: - ------------------------------------------------------------------------------- (7) Sole voting power - ------------------------------------------------------------------------------- (8) Shared voting power 11,599,010 - ------------------------------------------------------------------------------- (9) Sole dispositive power - ------------------------------------------------------------------------------- (10) Shared dispositive power 11,599,010 - ------------------------------------------------------------------------------- (11) Aggregate amount beneficially owned by each reporting person 11,599,010 - ------------------------------------------------------------------------------- (12) Check if the aggregate amount in Row (11) excludes certain shares (see instructions) [ ] - ------------------------------------------------------------------------------- (13) Percent of class represented by amount in Row (11) 24.8% - ------------------------------------------------------------------------------- 14) Type of reporting person (see instructions) IN - ------------------------------------------------------------------------------- 5 ITEM 1. SECURITY AND ISSUER This Schedule 13D is filed jointly by The Co Investment Fund II LP, a Delaware limited partnership ("Co Investment Fund II"), Co-Invest Management II, L.P., a Delaware limited partnership ("Co-Invest Management"), Co-Invest II Capital Partners, Inc., a Delaware corporation ("Co-Invest Capital Partners"), and Donald R. Caldwell relating to the acquisition by Co-Investment Fund II of 5,000,000 shares (the "Shares") of common stock, par value $0.001 per share (the "Common Stock"), of Health Benefits Direct Corporation, a Pennsylvania corporation (the "Issuer"), relating to warrants (the "Warrants") issued to Co Investment Fund II to purchase 5,000,000 shares of Common Stock and relating to 99,010 shares of Common Stock issued to Donald R. Caldwell as a director of the Issuer. The address of the principal executive offices of the Issuer is 150 N. Radnor-Chester Road, Suite B-101, Radnor, Pennsylvania 19087. ITEM 2. IDENTITY & BACKGROUND This statement is filed on behalf of: (a) Co Investment Fund II, Co-Invest Management, Co-Invest Capital Partners, and Donald R. Caldwell. (b) Five Radnor Corporate Center, Suite 555, Radnor, Pennsylvania 19087. (c) Mr. Caldwell is a shareholder, director, and officer of Co-Invest Capital Partners. Co- Invest Capital Partners is the general partner of Co-Invest Management. Co-Invest Management is the general partner of Co-Investment Fund II, the purchaser of the Shares and Warrants. (d) The reporting persons have not, during the past five (5) years, been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors). (e) The reporting persons have not during the past five (5) years, been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and, as a result of such proceeding, subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws. (f) Mr. Caldwell is a United States citizen. Co-Invest Management and Co Investment Fund II are Delaware limited partnerships. Co-Invest Capital Partners is a Delaware corporation. ITEM 3 SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION The Shares and Warrants were purchased from the Issuer by Co-Investment Fund II on March 31, 2008 in a private placement transaction for $4,000,000. On March 30, 2007, Co-Investment Fund II purchased from the Issuer 1,000,000 shares of Common Stock and warrants to purchase 500,000 shares of Common Stock in a private placement transaction for $2,250,000. The source of the funds for these purchases was the funds held by Co-Investment Fund II for investment in portfolio companies. The 99,010 shares of Common Stock issued to Mr. Caldwell were issued to him as director of the Issuer without payment therefor. 6 ITEM 4. PURPOSE OF TRANSACTION Co-Investment Fund II purchased the Shares and Warrants for investment purposes. In connection with the purchase, the Co-Investment Fund II entered into a Letter Agreement with the Issuer dated March 31, 2008 (the "Letter Agreement") pursuant to which the Issuer agreed to create one vacancy on the Issuer's Board by increasing the size of the Board from nine to ten directors. The Issuer also agreed to take all necessary action to appoint Donald Caldwell as a member and Co-Chairman of the Board and as the Chairman of the Audit Committee. In addition, the Issuer agreed to include Mr.Caldwell and Frederick Tecce (or, in the event of either of their resignations or removal, such other individuals as Co-Investment Fund II may designate) on the Board's slate of nominees for election as directors of the Company and to use its best efforts to cause the election of such individuals for so long as Co-Investment Fund II holds shares of Common Stock in an amount equal to at least 50% of the Shares purchased on March 31, 2008. ITEM 5. INTEREST IN SECURITIES OF THE ISSUER (a) Mr. Caldwell owns 99,010 shares of common stock of the Issuer and Co Investment Fund II owns 6,000,000 shares of common stock of the issuer and warrants to purchase 5,500,000 shares of common stock of the issuer. Co-Investment Fund II may also be deemed to be the beneficial owner of the 99,010 shares of common stock of the Issuer held by Mr. Caldwell. Co-Invest Management may be deemed to beneficially own 11,599,010 shares of common stock (or 24.8% of the shares of common stock outstanding and deemed outstanding pursuant to Rule 13d-3(d)(1)(i)) as the general partner of Co-Investment Fund II. Co-Invest Capital Partners may be deemed to beneficially own 11,599,010 shares of common stock (or 24.8% of the shares of common stock outstanding and deemed outstanding pursuant to Rule 13d-3(d)(1)(i)) as the general partner of Co-Invest Management. Donald Caldwell may be deemed to beneficially own 11,599,010 shares of common stock (or 24.8% of the shares of common stock outstanding and deemed outstanding pursuant to Rule 13d-3(d)(1)(i)) as a director, officer, and shareholder of Co-Invest Capital Partners and as the direct owner of 99,010 shares of common stock. The foregoing should not be construed as an admission by any reporting person as to its or his beneficial ownership of any shares of common stock owned by another reporting person. 7 (b) See rows (7) through (10) of the cover page for each reporting person at the beginning of this Schedule 13D, which are incorporated herein by reference. (c) The Shares and Warrants were purchased from the Issuer in a private placement transaction for an aggregate purchase price of $4,000,000. (d) Not applicable. (e) Not applicable. ITEM 6. CONTRACT, ARRANGEMENTS, UNDERSTANDINGS, OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER The terms of the Warrants permit the Issuer, at any point after which the volume weighted average trading price per share of the Common Stock for a minimum of 20 consecutive trading days is equal to at least two times the exercise price per share (which exercise price is initially $0.80 and is subject to adjustment) provided that certain other conditions have been satisfied, to call the outstanding Warrants. ITEM 7. MATERIAL TO BE FILED AS EXHIBITS The Warrants, the Letter Agreement, and related documentation associated with the purchase of the Shares and Warrants by Co-Investment Fund II are described in, and files as exhibits to, the Current Report on Form 8-K filed by the Issuer on March 31, 2008. Attached hereto as Exhibit A is the Joint Filing Agreement dated as of April 9, 2008 by and among Co-Investment Fund II, Co-Invest Management, Co-Invest Capital Partners, and Donald Caldwell. 8 SIGNATURE After reasonable inquiry, and to the best of my knowledge and belief, the undersigned certifies that the information set forth in this statement is true, complete and correct. Dated: April 10, 2008 THE CO INVESTMENT FUND II LP By: Co-Invest Management II, L.P, its General Partner By: Co-Invest II Capital Partners, Inc. its General Partner By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer CO-INVEST MANAGEMENT II, L.P, By: Co-Invest II Capital Partners, Inc. its General Partner By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer CO-INVEST II CAPITAL PARTNERS, INC. By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer /s/ Donald R. Caldwell ------------------------ DONALD R. CALDWELL EX-99 2 s11-8322_exa.txt EXHIBIT A EXHIBIT A AGREEMENT OF JOINT FILING In accordance with Rule 13d-1(k) under the Act, the undersigned hereby agree to the joint filing with the other persons signatory below of a statement on Schedule 13D or any amendments thereto, with respect to the Common Stock, and that this Agreement be included as an attachment to such filing. This Agreement may be executed in any number of counterparts each of which shall be deemed to be an original and all of which together shall be deemed to constitute one and the same Agreement. IN WITNESS WHEREOF, the undersigned hereby execute this Agreement on the 9th day of April, 2008. /s/ Donald R. Caldwell ------------------------ DONALD R. CALDWELL THE CO INVESTMENT FUND II LP By: Co-Invest Management II, L.P, its General Partner By: Co-Invest II Capital Partners, Inc. its General Partner By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer CO-INVEST MANAGEMENT II, L.P, By: Co-Invest II Capital Partners, Inc. its General Partner By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer CO-INVEST II CAPITAL PARTNERS, INC. By: /s/ Brian Adamsky ----------------------------- Brian Adamsky, Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----