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| (a)   | You will earn while you are employed as head of the Company’s international business operations (an “Eligible Employee”) a special, one-time $150,000 bonus (a “Signed Contract Bonus”) for each “Signed Contract” (as defined below) which is (i) entered into during the Performance Period with a new entity primarily doing business in a foreign country (as described in Section 2(c) below), and (ii) has projected annual (12 month) revenue in excess of [___]*, as determined in accordance with generally accepted accounting principles ("GAAP").  The Company has absolute discretion as to whether to enter into a Signed Contract that is eligible for compensation under the Long Term Performance Award. |
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| (b)   | A “Signed Contract” for purposes of this Agreement shall mean a definitive legal agreement entered into by the Company or one of its affiliates (each, a “Healthways Entity”) during the Performance Period to provide disease management, care enhancement and/or high-risk health management services to a third party unrelated to a Healthways Entity if either (1) the services under such agreement will be provided with respect to individuals residing in a foreign country, (2) such agreement is entered into with a foreign country or a political subdivision thereof; or (3) such agreement is entered into with (i) an entity with business operations in the United States that is controlled by an entity domiciled outside of the United States or (ii) a domestic entity (including a governmental entity) to provide the services above to individuals residing outside of the United States, provided that the entity was identified and solicited by Healthways International. |
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| (c)   | An entity shall be considered to be “primarily doing business in a foreign country” if  more than half of its revenues are attributable to a foreign country, as reasonably determined by the Compensation Committee of the Company’s Board of Directors. |
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| (d)   | You will earn while you are an Eligible Employee a special, $150,000 bonus for each “Expanded Contract” or “Extended Contract” (as defined below) entered into during the Performance Period with respect to an existing Signed Contract. Notwithstanding anything else contained herein, if such Expanded Contract is with a third party designated by the Company and agreed to by you (the “Designated Party”) and (i) the projected annual net revenue of such contract increases by more than [___]* from the Company’s net revenue from the Designated Party for the most recent fiscal year, as determined in accordance with GAAP; and (ii) the remaining term of the contract for the Designated Entity is at least two years, you will earn a $500,000 bonus in lieu of the ordinary $150,000 bonus for an Expanded Contract.  The Company has absolute discretion as to whether to enter into an Expanded Contract or an Extended Contract that is eligible for compensation under the Long Term Performance Award.  A bonus awarded for an Expanded Contract is referred to herein as an “Expanded Contract Bonus”.  A bonus awarded for an Extended Contract is referred to herein as an “Extended Contract Bonus.”  The Signed Contract Bonuses, the Extended Contract Bonuses and the Expanded Contract Bonuses are referred to collectively as the “Contract Bonuses”. |
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| (e)   | An “Expanded Contract” for purposes of this Agreement shall mean a definitive legal agreement or amendment entered into by a Healthways Entity during the Performance Period which amends an existing contract such that the (i) annual revenue under the amended contract is projected to be at least [___]* over the revenue actually realized over the 12 months immediately before the amendment (except in the case of the Designated Party, as described above), as determined in accordance with GAAP; and (ii) the remaining term of such contract is at least three years. |
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| (f)   | An “Extended Contract” for purposes of this Agreement shall mean a definitive legal agreement or amendment entered into during the Performance Period by a Healthways Entity which extends the term of a Signed Contract by at least one year on the same or better economic terms. Only one bonus for Extended Contracts may be earned under this paragraph 2 during the Performance Period with respect to any one extended Signed Contract. |
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| (a)   | Amounts earned for Contract Bonuses shall fully vest upon the Company’s entering into such Signed, Expanded or Extended Contract. Subject to the provisions below, you must remain employed with the Company or its affiliates until the end of the Performance Period in order to vest in your earned bonus amounts for the Growth Award under paragraph 3 and for the OSPP Bonus under paragraph 4. |
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| (b)   | In the event that your employment with the Company is terminated during the Performance Period pursuant to Sections VI, VIII(i),(iii)(and only in the event of a Change in Responsibility)(iv) or X of your Employment Agreement (a “Qualifying Termination”), you shall be entitled to full vesting of the Growth Award, and provided that you have not missed any of the milestones set forth in Section 4, you shall also be entitled to full vesting of the OSSP Bonus, and further subject to Section 6(c) and 6(d) respectively. |
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| (c)   | In the event that your Growth Award is vested pursuant to Section 6(b) above, the amount of the payment pursuant to the Growth Award shall be based on the Company’s international business’ projected gross revenue for the full twelve month period immediately following the month of your Qualifying Termination as determined by the Company’s Chief Executive Officer using the same methodology as set forth in paragraph 3. |
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| (d)   | In the event that your OSSP Bonus is vested pursuant to Section (b) above or (e) below, the amount of the payment pursuant to the OSSP Bonus shall equal $1,000,000 multiplied by a fraction, the numerator of which is the number of months from September 1, 2010 through the date of your Qualifying Termination, and the denominator of which is 28, provided that in the event you have met all of the milestones set forth in Section 4 prior to a vesting event described in Sections (b) or (e), you shall be entitled to the full amount of the OSSP Bonus. |
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| (e)   | In the event that there is a Change in Control of the Company (as defined under the Plan) that will have a Material Adverse Effect on the international business or a sale of the Company’s international business operations while you are employed as an Eligible Employee, you shall be entitled to full vesting of the Growth Award, and provided that you have not missed any of the milestones set forth in Section 4, you shall also be entitled to full vesting of the OSSP Bonus, and further subject to Section 6(d)  and the following sentence.  For purposes of this Section 6(e), the Growth Award shall be calculated within 30 days following the occurrence of an event described in the prior sentence by calculating the Company’s international business’ projected revenue for the full twelve month period immediately following such Change in Control or sale of the Company’s international business operations as determined by the Company’s Chief Executive Officer using the same methodology as set forth in paragraph 3 at the time of such Change in Control or sale.  In the event that there is a Change in Control of the Company (as defined under the Plan) that will not have a Material Adverse Effect on the international business, this Agreement and the long-term performance award hereunder will continue in full force and effect until the end of the Performance Period.  For purposes of this Section 6(e), a Material Adverse Effect on the international business means: (1) a material change in the organizational and reporting structure of the international business, (2) a material change in the strategic direction of the international business, or (3) a material decrease in the investment in and budget for the international business. |
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| (f)   | Notwithstanding the foregoing, if, prior to the end of the Performance Period, your employment with the Company terminates pursuant to Section VII or IX of your Employment Agreement, then you shall immediately forfeit all rights to payments pursuant to your Growth Award, your OSSP Bonus and any Contract Bonuses for Signed, Extended or Expanded Contracts signed following such termination. |
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| A.   | The business of providing any care support services, health support services or “wellness” services (including without limitation, any in-person, telephonic, web-based or home monitoring program, service, application or device which is intended to improve the health or welfare of participants or users) in which the Company is engaged (the “Business”) is intensely competitive and your employment by the Company requires that you have access to and knowledge of confidential information of the Company (which, for purposes of this Exhibit A, shall be construed to include the Company, its subsidiaries and their respective affiliates) relating to its business plans, financial data, marketing programs, client information, contracts and other trade secrets, in each case other than as and to the extent such information is generally known or publicly available through no violation of this Agreement by you; |
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| B.   | The use or disclosure of such information other than in furtherance of the Business may place the Company at a competitive disadvantage and may do damage, monetary or otherwise, to the Business; and |
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| C.   | Your engaging in any of the activities prohibited by this Exhibit A shall constitute improper appropriation and/or use of such information.  You expressly acknowledge the trade secret status of the Company’s confidential information and that the confidential information constitutes a protectable business interest of the Company.  Other than as may be required in the performance of your duties, you expressly agree not to divulge such confidential information to anyone outside the Company without prior permission. |
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| A.   | Engage in Competition, as defined below, with the Company or its subsidiaries within any market where the Company is conducting the Business at the time of termination of your employment.  For purposes of this Exhibit A, “Competition” by you shall mean your directly or indirectly being employed by or acting as a consultant, advisor or lender to, or being a director, officer, employee, principal, agent, stockholder, member, owner or partner of, or permitting your name to be used in connection with the activities of any entity engaged in the Business, providedthat, it shall not be a violation of this sub-paragraph for you to become the registered or beneficial owner of less than five percent (5%) of any class of the capital stock of any one or more competing corporations registered under the 1934 Act, providedthat, you do not participate in the business of such corporation until such time as this covenant expires; and |
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| B.   | Directly or indirectly, for your benefit or for the benefit of any other person or entity, do any of the following: |
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| i.   | solicit from any customer, doing business with the Company as of your termination, business of the same or of a similar nature to the Business of the Company with such customer; |
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| ii.   | solicit from any known potential customer of the Company business of the same or of a similar nature to that which, to your knowledge, has been the subject of a written or oral bid, offer or proposal by the Company, or of substantial preparation with a view to making such a bid, proposal or offer, within sixteen (16) months prior to your termination; or |
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| iii.   | recruit or solicit the employment or services of any person who was employed by the Company upon termination of your employment and is employed by the Company at the time of such recruitment or solicitation. |
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| A.   | You acknowledge that the services to be rendered by you to the Company are of a special and unique character, which causes the agreements you have made in this Exhibit A to be of significant value to the Company, the loss of which may not be reasonably or adequately compensated for by damages in an action at law, and that a breach or threatened breach by you of any of the provisions contained in this Exhibit A will cause the Company irreparable injury.  You therefore agree that the Company will be entitled, in addition to any other right or remedy, to a temporary, preliminary and permanent injunction, without the necessity of proving the inadequacy of monetary damages or the posting of any bond or security, enjoining or restraining you from any such violation or threatened violations. You acknowledge that the terms of this Exhibit A and its obligations are reasonable and will not prohibit you from being employed or employable in the health care industry. |
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| B.   | The time periods described in Section 2 above shall be tolled at any time in you are in breach of the agreements you have made in this Exhibit A.  If any restriction set forth in Section 2 above, or in this Exhibit A generally, is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, then such restriction shall be interpreted to extend only over the maximum period of time, range of activities or geographic areas as to which it may be enforceable. |
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| 2013 Revenue |       | Award Range |
|--------------|------------|-------------|
|  [___]* | [___]*     | 1.50%       | [___]* | [___]* |
| [___]*       | [___]*     | 1.75%       | [___]* | [___]* |
| [___]*       | [___]*     | 2.00%       | [___]* | [___]* |
| [___]*       | [___]*     | 2.25%       | [___]* | [___]* |
| [___]*       | [___]*     | 2.50%       | [___]* | [___]* |
| [___]*       | [___]*     | 2.75%       | [___]* | [___]* |
| [___]*       | [___]*     | 3.00%       | [___]* | [___]* |
| [___]*       | [___]*     | 3.25%       | [___]* | [___]* |
| [___]*       | No Maximum | 3.50%       | [___]* | No Maximum |
|         |       |        |   |   |

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