Document:

Exhibit 10.1

     

     

      
        

      

    

     

    Exhibit
      10.1

    STATE
      OF MISSOURI

    
      OFFICE
        OF ADMINISTRATION

      DIVISION
        OF PURCHASING AND MATERIALS MANAGEMENT (DPMM)

      CONTRACT
        RENEWAL

      

      
        
          	 AMENDMENT NO.:
                  004 	 REQ NO.: NR 886
                  25757008175
	 CONTRACT NO.: C306118005
                  	 BUYER: Laura
                  Ortmeyer
	 TITLE:
                  Medicaid Managed Care - Eastern Region 	 PHONE NO.: (573)
                  751-4579
	 ISSUE DATE:
                  04/10/07	  E-MAIL:
                  laura.ortmeyer@oa.mo.gov 

        

      

      

      TO: HARMONY
        HEALTH PLAN INC

      23
        PUBLIC SQUARE STE 400

      BELLEVILLE
        IL 62220

      

      RETURN
        AMENDMENT NO LATER THAN: 04/24/07 AT 5:00 PM CENTRAL TIME

      

      RETURN
        AMENDMENT TO:

      
        	
                (U.S.
                  Mail)

                Div
                  of Purchasing & Matls Mgt (DPMM)   OR

                PO
                  BOX 809

                JEFFERSON
                  CITY MO 65102-0809

              	
                (Courier
                  Service)

                Div
                  of Purchasing & Matls Mgt (DPMM)

                301
                  WEST HIGH STREET, ROOM 630

                JEFFERSON
                  CITY MO 65101

              

      

      

      OR
        FAX TO: (573) 526-9817 (either
        mail or fax, not both)

      

      DELIVER
        SUPPLIES/SERVICES FOB (Free On Board) DESTINATION TO THE FOLLOWING
        ADDRESS:

      

      Department
        of Social Services

      Division
        of Medical Services

      PO
        Box 6500

      Jefferson
        City MO 65102-6500

      

        SIGNATURE
          REQUIRED

        

        
          	
                  DOING
                    BUSINESS AS (DBA) NAME

                  Harmony
                    Health Plan of Illinois Inc., d/b/a/ Harmony Health Plan of
                    Missouri

                	 	
                  LEGAL
                    NAME OF ENTITY/INDIVIDUAL FILED WITH IRS FOR THIS TAX ID
                    NO.

                  Harmony
                    Health Plan of Illinois, Inc.

                
	
                  MAILING
                    ADDRESS

                  23
                    Public Square, Suite 400

                	
                  IRS
                    FORM 1099 MAILING ADDRESS

                  200
                    West Adams Street, Suite 800

                
	
                  CITY,
                    STATE, ZIP CODE

                  Belleville,
                    IL 62220

                	
                  CITY,
                    STATE, ZIP CODE

                  Chicago,
                    IL 60606

                

        

        

        
          	
                  CONTACT
                    PERSON

                  Ms.
                    Tina Gallagher

                	
                  EMAIL
                    ADDRESS

                  Tina.Gallagher@wellcare.com

                
	
                  PHONE
                    NUMBER

                  (800)
                    608-8158 Ext. 2405

                	
                  FAX
                    NUMBER

                  (800)
                    608-8157

                
	
                  TAXPAYER
                    ID NUMBER (TIN)

                  36-4050495

                	
                  TAXPAYER
                    ID (TIN) TYPE (CHECK ONE)

                  _X__ FEIN
                    ___ SSN

                	
                  VENDOR
                    NUMBER (IF KNOWN)

                  3640504950
                    1

                
	
                  VENDOR
                    TAX FILING TYPE WITH IRS (CHECK ONE) (NOTE: LLC IS NOT A VALID
                    TAX FILING
                    TYPE.)

                  _X__
                    Corporation ___ Individual ___ State/Local
                    Government ___ Partnership
                    ___ Sole Proprietor ___Other ________________

                
	
                  AUTHORIZED
                    SIGNATURE

                    
/s/  
Thaddeus
                    Bereday          
                    

                	
                  DATE

                  April
                    24, 2007

                
	
                  PRINTED
                    NAME

                  Thaddeus
                    Bereday

                	
                  TITLE

                  Secretary

                

        

        

        
          
            
            

          

          
            
            

            
            

          

          
            
            

          

        

      

      AMENDMENT
        #004 TO CONTRACT C306118005

      

      

      CONTRACT
        TITLE: 
        Medicaid
        Managed Care - Eastern Region

      

      CONTRACT
        PERIOD: July
        1,
        2007 through June 30, 2008

      

      The
        State
        of Missouri hereby exercises its option to renew the above-referenced
        contract.

      

      The
        contractor shall indicate in Column 2 on the attached Pricing page, any changes
        to the firm, fixed prices of the contract for performing the required services
        in accordance with the terms, conditions, and provisions of the contract.
        The
        contractor's firm, fixed PMPM Net Capitation Rate for Each Category of Aid
        (COA)
        Rate subgroup must not exceed the State's Maximum Net Capitation Rate listed
        in
        Column 1.

      

      The
        contractor must furnish a performance
        security deposit
        in
        accordance with the terms and conditions stated in the original contract
        in the
        amount of $1,000,000.00. The performance
        security deposit must
        specify the contract number and contract period.

      

      All
        other
        terms, conditions and provisions of the previous contract period shall remain
        and apply hereto. The contractor shall sign and return this document, along
        with
        completed pricing and the applicable bond, on or before the date
        indicated.

      

      
        	
              	NOTE:	
                The
                  contractor’s failure to complete and return this document shall not stop
                  the action specified herein. If the contractor fails to complete
                  and
                  return this document prior to the return date specified or the
                  effective
                  date of the contract period stated above, whichever is later, the
                  state
                  may renew the contract at the same price(s) as the previous contract
                  period or at the price(s) allowed by the contract, whichever is
                  lower.

              

      

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

        
          	
                  5.3
                    East Region - Firm Fixed Net Capitation Pricing
                    Page

                
	 	
                   

                	
                   

                	
                   

                	
                  Column
                    1

                	
                   

                	
                   

                	
                  Column
                    2 

                
	 	 	 	
                	
                  State's
                    Maximum Net

                	 	
                   

                	
                  Firm
                    Fixed Net

                
	 	 	 	 	
                  Capitation
                    Rate

                	 	 	
                  Capitation
                    Rate 

                
	
                  Category
                    of 
                    Aid

                	
                  Age

                	 Sex	
                   

                	
                  (Per
                    Member Per Month) 

                	 	
                   

                	
                  (Per
                    Member Per Month) 

                
	
                  1

                	
                  Newborn
                    < 01

                	
                  Male
                    and Female

                	
                  $

                	
                  863.53

                	
                   

                	
                  $

                	
                  863.53

                
	
                  1

                	
                  01
                    - 06

                	
                  Male
                    and Female

                	
                  $

                	
                  125.55

                	
                   

                	
                  $

                	
                  125.55

                
	
                  1

                	
                  07
                    - 13

                	
                  Male
                    and Female

                	
                  $

                	
                  98.44

                	
                   

                	
                  $

                	
                  98.44

                
	
                  1

                	
                  14
                    - 20

                	
                  Female

                	
                  $

                	
                  306.93

                	
                   

                	
                  $

                	
                  306.93

                
	
                  1

                	
                  14
                    - 20

                	
                  Male

                	
                  $

                	
                  126.73

                	
                   

                	
                  $

                	
                  126.73

                
	
                  1

                	
                  21
                    - 44

                	
                  Female

                	
                  $

                	
                  418.80

                	
                   

                	
                  $

                	
                  418.80

                
	
                  1

                	
                  21
                    - 44

                	
                  Male

                	
                  $

                	
                  191.64

                	
                   

                	
                  $

                	
                  191.64

                
	
                  1

                	
                  45
                    - 99

                	
                  Male
                    and Female

                	
                  $

                	
                  436.77

                	
                   

                	
                  $

                	
                  436.77

                
	
                  4

                	
                  00
                    - 20 

                	
                  Male
                    and Female

                	
                  $

                	
                  233.97

                	
                   

                	
                  $

                	
                  233.97

                
	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                	
                   

                
	
                  5

                	
                  00
                    - 06

                	
                  Male
                    and Female

                	
                  $

                	
                  152.68

                	
                   

                	
                  $

                	
                  152.68

                
	
                  5

                	
                  07
                    - 13

                	
                  Male
                    and Female

                	
                  $

                	
                  117.88

                	
                   

                	
                  $

                	
                  117.88

                
	
                  5

                	
                  14
                    - 18

                	
                  Male
                    and Female

                	
                  $

                	
                  175.38

                	
                   

                	
                  $

                	
                  175.38EX-10.1

Exhibit 10.1

[LETTERHEAD]

[LOGO]

May 2, 2007

Dear Gary:

As we have discussed, you and we have mutually agreed that your employment with Avalon will
end on July 2, 2007 (the “Termination Date”). On behalf of the Board of Directors and the
entire Company we wanted to express our thanks for all of the years of service you have provided
Avalon and to acknowledge the invaluable contributions you have made to Avalon’s progress. In
recognition of that, we wanted to memorialize our understanding of the arrangements to provide you
with certain elements of compensation, some of which have been previously agreed to in your
previous employment agreement and stock option agreements as amended to date. In addition, you have
agreed on the date of this letter to enter into a standard release and related terms which,
together with this letter, constitute our entire agreement, as provided in the release.

The Company will provide you with the following:

	 	a)	 	You will receive reimbursement for continued health coverage pursuant to the
Consolidated Omnibus Budget Reconciliation Act (“COBRA”) at the level of
coverage maintained as of the date of this Agreement for a period of one (1) year
following the Termination Date, provided you elect COBRA coverage. Thereafter, you may
be eligible to receive insurance continuance under COBRA at your own expense.

	 	b)	 	One-half (1/2) of all of your unvested Options as of the Termination Date shall
immediately vest and become exercisable as of the Termination Date (including any
Options subject to vesting upon the achievement of specified corporate or individual
goals regardless of whether those specified corporate or individual goals have been
attained). In addition, with respect to the Options granted to you on December 6,
2006, to the extent such Options have not vested as of the Termination Date (or do not
become vested as of the Termination Date on account of the previous sentence) (the
“Unvested Options”), you shall continue to be entitled to the vesting of such
Unvested Options in accordance with the terms of the related Option Agreement upon the
achievement of the specified corporate and individual goals set forth therein,
notwithstanding your termination of employment with the Company.

	 	c)	 	All vested Options held by you as of the Termination Date (including Options
that shall become vested or subsequently vest on account of the preceding paragraph (b)
above) shall remain exercisable for a period of time equal to the lesser of
(i) thirty-nine (39) months following the Termination Date, and (ii) the unexpired term
of such Option as set forth in the applicable Option Agreement (disregarding for
purposes of this paragraph (c) any provisions set forth in the applicable Option
Agreement relating to the period of exercise of such Option following the termination
of your employment). As used herein, the term “Option Agreement” means those
stock option agreements listed on Annex A pursuant to which the Company has
granted you the option to purchase shares of the Company’s common stock (each such
option is referred to herein as an “Option”).

	 	d)	 	You shall receive such bonus for calendar year 2007 as you otherwise would have
received under the Company’s annual cash incentive compensation program for 2007 (the
“Annual Cash Bonus Plan”) had you remained employed with the Company for the
entire calendar year; the amount of such bonus to be determined by the Company’s
Compensation Committee in accordance with the Annual Cash Bonus Plan and any such bonus
to be paid concurrently with the payment of similar bonuses to the Company’s executive
officers under the Annual Cash Bonus Plan.

	 	e)	 	Following the Termination Date, in exchange for your providing up to 10 hours
per week of consulting services to the Company as requested from time to time by the
Company in the Company’s sole discretion during the 6 months following the Termination
Date (the “Consulting Period”), the Company shall pay you a consulting fee
equal to your base salary as in effect as of the date of this Agreement during the
Consulting Period in accordance with the Company’s standard payroll practices.

	 	f)	 	The Company shall pay your current base salary earned through the Termination
Date and shall pay you for any accrued but unused vacation time earned as of the
Termination Date, in each case to be paid on or before the Company’s first regular
payroll date following the Termination Date.

If the foregoing correctly reflects your understanding, please sign the acknowledgement below.

Avalon Pharmaceuticals, Inc.

By:

/s/ Kenneth C. Carter, Ph.D.

Acknowledged and Agreed:

/s/ Gary Lessing

Annex A

Option Agreements

Incentive Stock Option Agreement, dated October 23, 2001

Incentive Stock Option Agreement, dated May 3, 2002

Incentive Stock Option Agreement, dated October 26, 2005

Non-qualified Stock Option Agreement, dated October 26, 2005

Incentive Stock Option Agreement, dated November 30, 2005

Non-qualified Stock Option Agreement, dated November 30, 2005

Incentive Stock Option Agreement, dated December 6, 2006

Non-qualified Stock Option Agreement, dated December 6, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]