Document:

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Exhibit 10.1
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EMPLOYMENT AGREEMENT
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THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into by and between David Bourdon (“Employee”) and Magellan Health, Inc. (together with any successor or assign, the “Employer) on behalf of itself and its direct and indirect controlled subsidiaries and affiliates (collectively referred to herein as the “Company”) on this 2nd day of September, 2020.
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WHEREAS, Employer desires to obtain the services of Employee and Employee desires to render services to Employer; and
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WHEREAS, Employer and Employee desire to set forth the terms and conditions of Employee’s employment with Employer under this Agreement;
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NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants and agreements contained in this Agreement, the parties agree as follows:
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STATEMENT OF AGREEMENT
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1.          Employment. Employer agrees to employ Employee, and Employee accepts such employment in accordance with the terms of this Agreement, for a term commencing on September 8, 2020 (the “Commencement Date”) and, unless terminated earlier in accordance with the terms of Section 6 of this Agreement, ending on the first anniversary of the Commencement Date (including this term and any extensions or renewals in accordance with this Section 1, the “Term”). Thereafter, the Term of this Agreement shall automatically renew for twelve (12) month periods on the last day of the applicable Term, unless sooner terminated as provided herein. If either party desires not to renew the Term of this Agreement, they must provide the other party with written notice of their intent not to renew the Term of this Agreement at least ninety (90) days prior to the last day of the applicable Term. Non-renewal of the Term of this Agreement by either party will in all cases result in termination of Employee’s employment on the last day of the applicable Term. Employer’s notice of intent not to renew the Agreement shall be deemed to be a termination without Cause on the last day of the applicable Term for purposes of this Agreement and any other plan and/or policy of the Company or any other written agreement to which Employer and Employee are parties in which termination without Cause is relevant. As such, the provisions of Section 6(c) or Section 6(e) shall apply, as applicable.
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Employee represents and warrants to Employer that (i) the execution and delivery of this Agreement by Employee does not conflict with, or result in a breach of or constitute a default under, any agreement or contract to which Employee is a party or by which Employee is bound, and (ii) that Employee has informed the Employer of, and provided the Employer with copies of, any non-competition, confidentiality, work-for-hire or similar agreements to which Employee is subject or may be bound.
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2.          Position and Duties of Employee. During the Term, Employee will serve as Chief Financial Officer of Employer. Employee shall report directly to Chief Executive Officer of Employer and shall have such duties, powers and authorities customarily vested in the office of the Chief Financial Officer of a public company the size and nature of Employer.
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3.          Time Devoted; Undertakings. During the Term, Employee will devote his/her full business time and energy to the business affairs and interests of Employer and will use his/her best efforts and abilities to promote Employer’s interests. Employee agrees that s/he will diligently endeavor to perform services contemplated by this Agreement in a manner consistent with his/her position and in accordance with the policies established by the Employer. Excluding charitable and civic organizations, Employee shall not serve on any outside boards of directors of any organizations without the prior approval of the Employer. Nothing herein shall preclude Employee from managing his/her personal and family investments, so long as such activities do not materially interfere with the performance of Employee’s duties and responsibilities under this Agreement or result in a breach of Section 7 of this Agreement.
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4.          Compensation.
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(a)        Base Salary. During the Term, Employer will pay Employee a base salary at a rate of $525,000 per year which amount will be paid in bi-weekly intervals, less appropriate withholdings for federal and state taxes and other deductions authorized by Employee. Such salary will be subject to annual review by Employer and subject to increase, but not decrease. Employee’s annual base salary, as in effect from time to time in accordance with this Agreement, is hereinafter referred to as the “Base Salary.”
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(b)        Annual Bonus. During the Term, beginning with the 2021 fiscal year, Employee will be entitled to participate in, and his/her annual target bonus opportunity will be 85% of Base Salary (“Target Bonus”) under the terms of, the Company’s Incentive Compensation Plan (or successor annual incentive plan applicable to similarly situated executive officers), with the ability to earn up to 200% of Target Bonus, based upon the achievement of performance goals, which goals shall be established by the Employer within the first ninety (90) days of each fiscal year. The actual payout to Employee will be based on Company and individual performance during the measurement period as determined by Employer in its sole discretion. Except as otherwise provided herein, any such bonus payable to Employee shall be paid to Employee in cash during the period January 1 to March 15 of each year in respect of service in the preceding year provided that Employee is still employed by Employer at the time the bonus is paid. If Employee’s target bonus as a percentage of Base Salary is increased during the Term, “Target Bonus” for purposes of this Agreement shall mean such increased amount.
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(c)        Sign-on Equity Grant. Employee will receive a grant of a number of Performance-Based Restricted Stock Units (the “PSUs”) with a value determined by the Employer consistent with its valuation of other PSUs equal to $500,000, to be granted on the first business day of the month following the month of commencement of his/her employment under this Agreement (the “Grant Date”). Such PSUs shall be granted pursuant to the form of Performance-Based Restricted Stock Unit Agreement attached hereto as Exhibit A and the terms of the Employer’s 2016 Management Incentive Plan (the “2016 MIP Plan”). Employee will receive a grant of a number of Restricted Stock Units (the “RSUs”) with a value equal to $500,000, to be granted on the Grant Date. Such RSUs shall be granted pursuant to the form of Restricted Stock Unit Agreement attached hereto as Exhibit B and the terms of the 2016 MIP Plan.
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(d)        Sign-On Bonus. Employee will receive a sign-on bonus equal to $500,000 in total (the “Sign-on Bonus”), payable in two installments. The first installment will be payable in cash within 30 days following the Commencement Date in the amount of $250,000 and the second installment will be payable in cash no later than March 15, 2021 in the amount of $250,000. If Employee’s employment terminates pursuant to Section 6(a) or (b) prior to the first anniversary of the Commencement Date, Employee will be required, and hereby agrees, to repay to Employer the entire Sign-on Bonus which has been paid to Employee within thirty (30) days following receipt of written notice from Employer.
(e)        Benefits and Long-Term Incentive Compensation. During the Term, Employee will be eligible to participate in Employer’s retirement and health and welfare benefit plans (the “Benefit Plans”) commensurate with his/her position on a basis at least as favorable as other similarly situated senior level executives of Employer. Employee will receive separate information detailing the terms of such Benefit Plans and the terms of those plans will control. During the Term, beginning with calendar year 2021, Employee also will be entitled to participate in Employer’s long-term incentive plan applicable to Employee in accordance with its terms, with an anticipated annual target value for 2021 for Employee’s long-term incentive plan grants of 300% of Base Salary, provided that Employee’s 2021 annual award value for his long-term incentive plan grant shall be no less than 200% of Base Salary. Long-term incentive awards, if any, will be determined and granted (unless validly deferred if then permitted by the Company) in March. During the Term of this Agreement, Employee will be entitled to such other benefits of employment with Employer as are now or may later be in effect for salaried employees of Employer, and also will be eligible to participate in other benefits adopted for employees at his/her level in accordance with their respective terms.
(f)         Relocation. In the event Employee relocates to the Employer’s executive offices in Dallas, Texas, Employer agrees to reimburse Employee for relocation expenses pursuant to the terms of Employer’s Executive Relocation Policy, provided that such move occurs within 12 months of the Commencement Date.
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5.          Expenses. During the Term of this Agreement, Employer will reimburse Employee promptly for all reasonable travel, entertainment, parking, business meetings and similar expenditures in pursuance and furtherance of Employer’s business upon receipt of reasonably supporting documentation as required by Employer’s policies applicable to its employees generally, subject to Section 10(a)(ii).
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6.          Termination.
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Any termination of Employee’s employment under this Section 6 shall result in a termination of the Term as of the last day of Employee’s employment hereunder as determined in accordance with this Agreement.
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(a)        Termination Due to Resignation. During the Term, Employee may resign his/her employment at any time (other than for Good Reason) by giving ninety (90) days written notice of resignation to Employer. Except as otherwise set forth in this Agreement, Employee’s employment, and Employee’s right to receive compensation and benefits from Employer, will terminate upon the effective date of Employee’s termination.
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If Employee resigns pursuant to this Section 6(a), Employer’s only remaining financial obligation to Employee under this Agreement will be to pay, subject to Section 10:  (i)
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any earned but unpaid Base Salary and accrued paid time off through the effective date of Employee’s termination; (ii) reimbursement of expenses incurred by Employee through the effective date of termination which are reimbursable pursuant to this Agreement; and (iii) Employee’s vested portion of awards under the 2016 MIP Plan (or any successor plan or any applicable award agreement), any Magellan deferred compensation and/or other benefit plan in accordance with the applicable terms of such plan or agreement (items (i), (ii) and (iii) collectively, the “Accrued Amounts”); provided that all Accrued Amounts shall remain subject to the Employer’s clawback policy(s) or other recapture policies as in effect from time to time and applicable law. In addition, for all terminations, Employee shall remain entitled to his/her rights under Sections 6(e)(ii), 12 and 20 of this Agreement, to the extent not otherwise forfeited in connection with such termination in accordance with applicable law.
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(b)        Termination with Cause. Employee’s employment, and Employee’s right to receive compensation and benefits from Employer (except as otherwise provided herein or required by applicable law), may be terminated for “Cause” by Employer during the Term after following the procedures set forth herein under the following circumstances:
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(i)         Employee’s commission of an act of fraud or material dishonesty involving his/her duties on behalf of Employer;
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(ii)        Employee’s failure or refusal to faithfully and diligently perform the duties of his/her position (other than any failure resulting from Employee’s incapacity due to physical or mental illness) after a written demand for performance is delivered to Employee or Employee’s material breach of Sections 7 and/or 8 of this Agreement;
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(iii)       Employee’s material failure or refusal to abide by Employer’s policies, rules, procedures or lawful directives relating to the performance of his/her duties, including related to sexual harassment, which, if curable as determined by Employer in good faith, is not cured within thirty (30) days after receipt of written notice from Employer of such material failure or refusal;
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(iv)       Employee’s intentional misconduct unrelated to Employer which is materially damaging or reasonably likely to result in material damage to Employer (economically or its reputation);
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(v)        an act of gross neglect or misconduct by Employee that relates to the affairs of Employer, which is materially damaging or reasonably likely to result in material damage to Employer (either economically or its reputation); or
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(vi)       Employee’s plea of guilty or no contest to, or conviction of a felony or a misdemeanor (other than a traffic violation misdemeanor).
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Prior to terminating Employee’s employment for Cause, Employer must provide written notice to Employee describing the act or omission that constitutes Cause and, if Employee fails to cure such act or omission in any time period set forth above, if any, or the act or omission is not curable as determined by Employer in good faith, Employer may thereafter immediately terminate Employee’s employment for Cause. If Employee is terminated pursuant to this Section 6(b), Employer’s only remaining financial obligation to Employee under this Agreement will be
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to pay, subject to Section 10, the Accrued Amounts; provided Employee shall remain entitled to his/her rights under Sections 6(e)(ii), 12 and 20 of this Agreement, to the extent not otherwise forfeited in connection with such termination in accordance with applicable law.
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(c)        Termination Without Cause by Employer (Including Notice of Non- Renewal) or with Good Reason by Employee. During the Term, Employer may terminate Employee’s employment for any reason without Cause at any time. If Employer terminates the Term of this Agreement and Employee’s employment without Cause, including by providing a timely notice of non-renewal of the Term in accordance with Section 1 above (“Employer Notice of Non-Renewal”), or Employee terminates the Term of this Agreement and his/her employment with Good Reason, in addition to the Accrued Amounts and subject to Employee’s execution, delivery and non-revocation of an effective release of claims in favor of Employer in the form attached hereto as Exhibit C (with modifications determined by Employer to be necessary or advisable under applicable law for a complete release of claims) (the “Release”), Employee shall be entitled to, subject to Section 10, cash severance in an amount equal to one times (1x) Base Salary payable in equal installments over a period of twelve (12) months beginning as soon as reasonably practicable following Employee’s termination date. If Employee and any of Employee’s eligible dependents, in each case, who participate in Employer’s medical, dental, vision and prescription drug plans as of the date of termination, timely elect COBRA coverage under such plans, Employer shall pay its portion of such COBRA premiums (on a monthly basis) for a period of up to twelve (12) months following the date of termination, with the COBRA premium shared in the same relative proportion of the insurance premiums shared by Employer and Employee as in effect on the date of termination; provided, that if and to the extent that any payment of COBRA premiums described in this Section 6(c) is not or cannot be paid or provided under any Employer plan or program without adverse tax consequences to Employer or Employee or for any other reason, then the Company shall pay Employee a monthly payment in an amount equal to Employer’s cost of providing such benefit. The reimbursement or payment of COBRA premiums (or the monthly payment, if applicable) provided under this Section 6(c) shall cease to be effective as of the date Employee becomes eligible for coverage under the medical, dental, vision and prescription drug plans, as applicable, of a subsequent employer. If Employee participates in any incentive bonus plan(s), then Employer will pay Employee, on a pro-rata basis, the amount of such plan(s) as Employee would have earned if Employee had been employed for the full calendar year. The pro- ration will be determined by the fraction of the number of months in the calendar year in which the Employee worked (rounded to the nearest whole month) divided by 12 months. At the time of termination, Employer shall determine in its sole discretion the Employee’s pro-rata amount, if any. Notwithstanding the foregoing, any payout of such bonus amount shall be contingent upon the Company satisfying the financial targets established by the Employer’s Board of Directors (the “Board”). Payment of any bonus shall be made at the time of the annual bonus payout for all employees, subject to Section 4(b). Employee shall remain entitled to his/her rights under Sections 6(e)(ii), 12 and 20 of this Agreement, to the extent not otherwise forfeited in connection with such termination in accordance with applicable law.
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For purposes of this Agreement, “Good Reason” shall mean: (A) any reduction in Employee’s then current Base Salary or Target Bonus opportunity; (B) any diminution in Employee’s position, duties or authorities to those not customarily vested in the office of Chief Financial Officer of a public company the size and nature of Employer; (C) a change in the reporting structure so that Employee reports to anyone other than the Chief Executive Officer of Employer; (D) any material breach by Employer of any material provision of this Agreement or
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its Exhibits; or (E) the failure of a successor to at least 75% of the consolidated assets of the Employer (measured using a quantitative analysis determined in good faith by the Board) in a single transaction to assume this Agreement, either contractually or as a matter of law, as of the closing of such transaction; provided, that Employee provides written notice to Employer, as applicable, of the existence of any such condition within ninety (90) days of Employee having actual knowledge of the initial existence of such condition and Employer, as applicable, fails to remedy the condition within thirty (30) days of receipt of such notice (the “Cure Period”). In order to resign for Good Reason, Employee must actually terminate employment no later than thirty (30) days following the end of such Cure Period, if the Good Reason condition remains uncured.
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(d)        Automatic Termination.     The Term of this Agreement will terminate automatically upon the death or Disability of Employee.  Employee will be deemed to be “Disabled” or to suffer from a “Disability” within the meaning of this Agreement if, because of a physical or mental impairment, Employee has been unable to perform the essential functions of his/her position, with or without reasonable accommodation, for a period of one hundred eighty (180) consecutive days, or if Employee can reasonably be expected to be unable to perform the essential functions of his/her position for such period as determined by a medical doctor selected by Employer and Employee (provided if the parties cannot agree on a medical doctor for this purpose, Employer and Employee shall each select a medical doctor and such medical doctors shall select the medical doctor to make this determination). If Employee is terminated pursuant to this Section 6(d), Employee or his/her estate will receive, subject to Section 10, (i) a pro rata portion (based on the portion of the year during which Employee was employed and performing the functions of his/her position) of the bonus called for by Section 4(b) for the year in which Employee last performed the functions of his/her position, payable at the time of the annual bonus payout for other employees, but in all events in accordance with Section 4(b), and (ii) the Accrued Amounts. Employee shall also remain entitled to his/her rights under Sections 6(e)(ii), 12 and 20 of this Agreement, to the extent not otherwise forfeited in connection with such termination in accordance with applicable law.
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(e)       Termination Without Cause by the Employer (Including by Employer Notice of Non-Renewal) or With Good Reason by Employee in Connection With, or Within Two Years After, a Change in Control.
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(i)         If Employer terminates the Term of this Agreement and Employee’s employment without Cause (including by an Employer Notice of Non-Renewal), or if Employee terminates the Term of this Agreement and his/her employment with Good Reason, in connection with a Change in Control (as defined below) or within two (2) years after such Change in Control, Employee shall receive the following, in addition to the amounts and benefits described in Section 6(c), subject to Section 10: (i) cash severance in an amount equal to the sum of (x) one times (1x) Base Salary plus (y) two times (2x) Target Bonus, payable in a single cash installment immediately after termination; and (ii) an additional six (6) months of COBRA premiums in accordance with Section 6(c). Employee shall also remain entitled to his/her rights under Sections 6(e)(ii), 12 and 20 of this Agreement, to the extent not otherwise forfeited in connection with such termination in accordance with applicable law.
(ii)       Notwithstanding any provision of this Agreement or otherwise, if any portion of the payments, entitlements, distributions or benefits paid or payable to Employee or provided or to be provided for his/her benefit under this Agreement or
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otherwise (including, without limitation, under any other agreement with the Company or plan of the Company (including by an entity effecting a change in control)) (in the aggregate, “Total Payments”), would constitute an “excess parachute payment” and would, but for this Section 6(e)(ii), result in the imposition on Employee of an excise tax under Section 4999 of the Code or any similar federal or state law (the “Excise Tax”), then the Total Payments to be made to Employee shall either be (i) delivered in full or (ii) delivered in such amount so that no portion of such Total Payments would be subject to the Excise Tax, whichever of the foregoing results in the receipt by Employee of the greatest benefit of an after-tax basis (taking into account the applicable federal, state and local income and employment taxes,  the  Excise  Tax).  If, in connection with making this determination, Employee requests that Employer obtain, at its sole expense, an independent valuation of the non- competition, non-solicitation and other restrictions on Employee’s activities for the purpose of allocating reasonable compensation to reduce the value of Employee’s excess parachute payments, to the extent permitted by Section 280G of the Code, then Employer shall obtain such independent valuation and shall consider the results in good faith. To the extent such Total Payments are required to be reduced hereunder, the parachute payment amounts due to Employee (but no non-parachute payment amounts) shall be reduced in the following order: (A) the parachute payments that are payable in cash shall be reduced with amounts that are payable last reduced first; (B) payments and benefits due in respect of any equity, valued at full value (rather than accelerated value), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24); (C) all other non-cash benefits valued at full value (rather than accelerated value), with the highest values reduced first (as such values are determined under Treasury Regulation Section 1.280G-1, Q&A 24); and (D) all other non-cash benefits not otherwise described in clauses (B) and (C) reduced last. The determinations to be made with respect to this Section 6(e)(ii) shall be made by a certified public accounting firm (the “Accountant”) designated by Employer and reasonably acceptable to Employee. Employer shall be responsible for all charges of the Accountant. The Accountant shall provide its determinations and calculations, together with supporting documentation, both to Employer and Employee in connection with the event that is reasonably expected to give rise to imposition on the Employee of the Excise Tax. For the avoidance of doubt, this Section 6(e)(ii) shall apply whether or not Employee’s employment has terminated.
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(iii)      For purposes of this Agreement, the following definitions shall apply:
“Change in Control” of the Employer shall mean the first to occur after the date hereof of any of the following events:
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(i)         any “person,” as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes a “beneficial owner,” as such term is used in Rule 13d-3 promulgated under the Exchange Act, of greater than 50% of the Voting Stock (as defined below) of the Employer;
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(ii)        the majority of the Board consists of individuals other than “Continuing Directors,” which shall mean the members of the Board on the date hereof, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election was supported by a vote of the
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directors who then comprised the Continuing Directors, shall be considered to be a Continuing Director;
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(iii)       the Board adopts and, if required by law or the certificate of incorporation of the Employer, the shareholders approve the dissolution of the Employer or a plan of liquidation or comparable plan providing for the disposition of all or substantially all of the Employer’s assets; at least 75% of the consolidated assets of the Employer (measured using a quantitative analysis determined in good faith by the Board) are disposed of in a single transaction pursuant to a merger, consolidation, share exchange, reorganization or other transaction unless the shareholders of the Employer immediately prior to such merger, consolidation, share exchange, reorganization or other transaction beneficially own, directly or indirectly, in substantially the same proportion as they previously owned the Voting Stock or other ownership interests of the Employer, 51% or more of the Voting Stock or other ownership interests of the entity or entities, if any, that succeed to the business of the Employer; or
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(iv)       the Employer merges or combines with another company and, immediately after the merger or combination, the shareholders of the Employer immediately prior to the merger or combination own, directly or indirectly, 50% or less of the Voting Stock of the successor company, provided that in making such determination there shall be excluded from the number of shares of Voting Stock held by such shareholders, but not from the Voting Stock of the successor company, any shares owned by Affiliates of such other company who were not also Affiliates of the Employer prior to such merger or combination.
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“Employer” shall include for purposes of this Section 6(e) any entity that succeeds to all or substantially all of the business of the Employer.
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“Affiliate” of a person or other entity shall mean a person or other entity that directly or indirectly controls, is controlled by, or is under common control with the person or other entity specified.
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“Voting Stock” shall mean any capital stock of any class or classes having general voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of a corporation and reference to a percentage of Voting Stock shall refer to such percentage of the votes that all such Voting Stock is entitled to cast.
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(f)         Effect of Termination. Except as otherwise provided for in this Section 6 or Section 11, upon termination of the Term of this Agreement, all rights and obligations under this Agreement will cease except for (i) the rights and obligations under Sections 7, 8, 9, 12, and 20 and/or the Exhibits to this Agreement; and (ii) all procedural and remedial provisions of this Agreement.
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(g)        No Mitigation; No Offset. In the event of any termination of Employee’s employment for any reason, Employee shall not be required to seek other employment to mitigate
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damages, and any income earned by Employee from other employment or self-employment shall not be offset against any obligations of the Company under this Agreement or otherwise.
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7.          Protection of Confidential Information/Non-Competition/Non-Solicitation.
Employee covenants and agrees as follows:
a.          (i) Confidential Information. During Employer’s employment of Employee and following the termination of Employee’s employment for any reason, Employee will not use or disclose, directly or indirectly, for any reason whatsoever or in any way, other than (1) in the ordinary course of performing his/her duties in good faith for the Company in compliance with the Company’s policies, (2) at the direction of Employer during the course of Employee’s employment, or (3) after receipt of the prior written consent of Employer, any confidential information of Employer, its direct and indirect controlled subsidiaries or affiliates, or its Customers that comes into his/her knowledge during his/her employment by Employer (the “Confidential Information” as hereinafter defined). The obligation not to use or disclose any Confidential Information will not apply to any Confidential Information that is or becomes public knowledge (including becoming known within the relevant trade or industry) through no fault of Employee, and that may be utilized by the public (or such trade or industry) without any direct or indirect obligation to Employer, but the termination of the obligation for non-use or nondisclosure by reason of such information becoming public (including becoming known within the relevant trade or industry) will extend only from the date such information becomes public knowledge. The above will be without prejudice to any additional rights or remedies of Employer under any state or federal law protecting trade secrets or other information.
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(ii)        Trade Secrets. Employee shall hold in confidence all Trade Secrets of Employer, its direct and indirect controlled subsidiaries or affiliates, and/or its Customers that came into his/her knowledge during his/her employment by Employer and shall not disclose, publish or make use of at any time after the date hereof such Trade Secrets, other than at the direction of Employer, for as long as the information remains a Trade Secret.
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(iii)       For purposes of this Agreement, the following definitions apply:
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“Confidential Information” means any data or information, other than Trade Secrets, that is valuable to Employer and not generally known to the public, to competitors of Employer, or within the relevant trade or industry of the Company. It is understood that the term “Confidential Information” does not mean and shall not include information which:
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(a)        is or subsequently becomes publicly available without the breach of any obligation owed to the Employer;
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(b)        is disclosed with the prior written approval of the Employer; or
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(c)        is obligated to be produced under order of a court of competent jurisdiction or a valid administrative, congressional, or other subpoena, civil investigative demand or similar process; provided, however, that upon issuance of any such order, subpoena, demand or other process, unless otherwise prohibited by law or regulation,
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Employee shall promptly notify Employer and shall provide Employer with an opportunity (if then available) to contest, at Employer’s expense, the propriety of such order or subpoena (or to arrange for appropriate safeguards against any further disclosure by the court or administrative or congressional body seeking to compel disclosure of such Confidential Information).
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“Customer” means any individual or entity to whom Employer or its direct and indirect controlled subsidiaries or affiliates has provided, or contracted to provide, or to whom the Company has made proposals to provide, services and with whom Employee had, alone or in conjunction with others, contact with or knowledge of, during the twelve months prior to the termination of his/her employment. For purposes of this Agreement, Employee had contact with or knowledge of a Customer if (i) Employee had business dealings with the Customer on behalf of Employer or its direct and indirect controlled subsidiaries or affiliates; (ii) Employee was responsible, alone or in conjunction with others, for supervising or coordinating the dealings between the Customer and Employer or its direct and indirect controlled subsidiaries or affiliates; or (iii) Employee obtained or had access to trade secrets or confidential information about the Customer as a result of Employee’s association with Employer or its direct and indirect controlled subsidiaries or affiliates.
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“Trade Secret” means information including, but not limited to, any technical or non-technical data, formula, pattern, compilation, program, device, method, technique, drawing, process, financial data, financial plan, product plan, list of actual or potential Customers or suppliers or other information similar to any of the foregoing, which (i) derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use; and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
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(iv)       Interpretation. The restrictions stated in paragraphs 7(a)(i) and 7(a)(ii) are in addition to and not in lieu of protections afforded to trade secrets and confidential information under applicable state law. Nothing in this Agreement is intended to or shall be interpreted as diminishing or otherwise limiting Employer’s right under applicable state law to protect its trade secrets and confidential information.
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(v)        Protected Activities. Employee acknowledges that this Agreement does not limit or interfere with his/her right, without notice to or authorization of Employer, to communicate and cooperate in good faith with any self-regulatory organization or U.S. federal, state, or local governmental or law enforcement branch, agency, commission, or entity (collectively, a “Government Agency”) for the purpose of (i) reporting a possible violation of any U.S. federal, state, or local law or regulation, (ii) participating in any investigation or proceeding that may be conducted or managed by any Government Agency, including by providing documents or other information, or (iii) filing a charge or complaint with a Government Agency. Additionally, Employee shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (a) in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law;
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(b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or (c) in court proceedings if Employee files a lawsuit for retaliation by an employer for reporting a suspected violation of law, or to Employee’s attorney in such lawsuit, provided that Employee must file any document containing the trade secret under seal, and Employee may not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will Employee be authorized to make any disclosures as to which Employer may assert protections from disclosure under the attorney-client privilege or the attorney work product doctrine, without prior written consent of Employer’s General Counsel or another authorized officer designated by Employer.
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(b)        Non-Competition.
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(i)         Due to the strategic, sensitive and broad nature of Employee’s position with the Employer and the Confidential Information, Trade Secrets and business relationships and contacts to which Employee will be exposed, along with the Company’s interest in maintaining its competitive position in a highly competitive industry, Employee covenants and agrees that during Employee’s employment and for a period of twelve months (12) months following termination of Employee’s employment for any reason by either party (the “Restricted Period”), s/he will not, on his/her own behalf or as a partner, officer, director, employee, agent, or consultant of any other person or entity, directly or indirectly, engage or attempt to engage in the business of providing or selling services in the United States that are services offered by Employer or its direct and indirect controlled subsidiaries or affiliates at the time of the termination of Employee’s employment, unless waived in writing by Employer in its sole discretion. Notwithstanding the foregoing, following termination of his/her employment, Employee shall be permitted to provide services to (and have an economic or equity interest in) (i) a division, business line, subsidiary or affiliate of a commercial enterprise with multiple divisions or business lines if such division, business line, subsidiary or affiliate is not directly competitive with the business of the Employer or any direct or indirect controlled subsidiary or affiliate (even if another division, business line, subsidiary or affiliate is competitive with the businesses of the Company); provided Employee does not provide services, advice, knowledge or support to the division, business line, subsidiary or affiliate that is competitive with the businesses of the Company and Employee’s services would not, directly or indirectly, inevitably disclose Confidential Information or Trade Secrets of the Company to the division, business line, subsidiary or affiliate that is competitive with the businesses of the Company or (ii) a private equity firm or hedge fund that holds investments in or manages entities engaged in such competitive activities if Employee is not involved in providing services, advice, knowledge or support with respect to the investment involved in the competitive activities and Employee’s services would not, directly or indirectly, inevitably disclose Confidential Information or Trade Secrets of the Company to the investment involved in the competitive activities. In addition, Employee’s ownership of less than one percent (1%) of any class of stock in a publicly-traded corporation shall not be deemed a breach of this Section 7(b).
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(ii)        During the Restricted Period, Employee may submit a written request to Employer outlining a proposed employment or other employment opportunity that Employee is considering. Employer will review such request and make a determination
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within ten (10) business days following receipt of such request, in its sole discretion, as to whether the opportunity would constitute a breach of the non-competition covenant.
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(c)        Non-Solicitation. To protect the goodwill of Employer and its controlled subsidiaries and affiliates, and the Customers of Employer and its controlled subsidiaries and affiliates, Employee agrees that, during the Restricted Period, s/he will not, without the prior written permission of Employer, directly or indirectly, for himself/herself or on behalf of any other person or entity, solicit, divert away, take away or attempt to solicit or take away any Customer of Employer or its direct and indirect controlled subsidiaries or affiliates for purposes of providing or selling services to such Customer that are the same or substantially similar services offered by Employer or its direct and indirect controlled subsidiaries or affiliates, if Employer, or the particular direct and indirect controlled subsidiary or affiliate of Employer, is engaged in the sale or provision of such services at the time of the solicitation.
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(d)        Solicitation or Hiring of Employees. During the Restricted Period, Employee will not, on his/her own behalf or on behalf of any other person or entity, solicit for employment, hire, or engage as a consultant or other agent, directly or indirectly, any employee of Employer or any of its controlled subsidiaries or affiliates who was employed with Employer or its direct and indirect controlled subsidiaries or affiliates within the one year period immediately prior to Employee’s termination.
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(e)        Employee recognizes that the above restrictions are reasonable and necessary to protect the interest of the Employer and its subsidiaries and affiliates and that such restrictions will not prevent him/her from earning a living.
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(f)         Other. Following a Change in Control, the definition of Employer and its controlled subsidiaries and affiliates and their respective employees and Customers for purpose of this Section 7 shall refer only to Employer and its controlled subsidiaries and affiliates (and their employees, Customers and the business in which they were engaged) as of immediately prior to the Change in Control.
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8.          Work Made for Hire. Employee agrees that any written program materials, protocols, research papers, other writings, as well as improvements, inventions, new techniques, programs or products (the “Work”) made or developed by Employee within or after normal working hours relating to the business or activities of Employer or any of its direct and indirect controlled subsidiaries and affiliates, shall be deemed to have been made or developed by Employee solely for the benefit of Employer and will be considered “work made for hire” within the meaning of the United States Copyright Act, Title 17, United States Code, which vests all copyright interest in and to the Work in the Employer. In the event, however, that any court of competent jurisdiction finally declares that the Work is not or was not a work made for hire as agreed, at Employer’s sole expense, Employee agrees to assign, convey, and transfer to the Employer all right, title and interest Employee may presently have or may have or be deemed to have in and to any such Work and in the copyright of such work, including but not limited to, all rights of reproduction, distribution, publication, public performance, public display and preparation of derivative works, and all rights of ownership and possession of the original fixation of the Work and any and all copies. Additionally, at Employer’s sole expense, Employee agrees to execute any documents necessary for Employer to record and/or perfect its ownership of the Work and the applicable copyright.
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9.          Property of Employer. Employee agrees that, upon the termination of Employee’s employment with Employer, Employee will immediately surrender to Employer all property, files, equipment, funds, lists, books, records, computer programs, computer software and other materials of Employer or its direct and indirect controlled subsidiaries or affiliates in the possession of or provided to Employee.
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10.        Special Rules for Compliance with Code Section 409A. This Section 10 serves to ensure compliance with applicable requirements of Section 409A of the Internal Revenue Code (the “Code”). Certain provisions of this Section 10 modify other provisions of this Agreement. If the terms of this Section 10 conflict with other terms of the Agreement, the terms of this Section 10 control. The intent of the parties to this Agreement is that the payments and benefits under this Agreement are either exempt from, or comply with, Section 409A of the Code, and the terms of this Agreement shall be interpreted consistent with such intent.
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(a)        Timing of Certain Payments. Payments and benefits specified under this Agreement shall be paid at the times specified as follows:
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(i)         Accrued Payments at Termination. Sections 6(a) – (e) of this Agreement require payment of amounts earned but unpaid or accrued at the date of Employee’s termination. Unless the amount is payable under an applicable plan, program or arrangement on explicit terms providing for a delay in payment compliant with or exempt from Code Section 409A, these amounts shall be payable at the date the amounts otherwise would have been payable under the applicable plans, programs and arrangements in the absence of termination but in no event more than thirty (30) days after Employee’s termination of employment, subject to Section 10(c).
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(ii)        Expense Reimbursements. Any payment under Section 5 or otherwise as an expense reimbursement hereunder must be paid no later than the end of Employee’s taxable year next following the taxable year in which Employee incurred the reimbursable expense. With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, and (ii) the amount of expenses eligible for reimbursements or in-kind, benefits provided during any taxable year shall not affect the expenses eligible for reimbursement or in-kind benefits to be provided in any other taxable year.
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(iii)       Other Payments. Any other payment or benefit required under this Agreement to be paid in a lump sum or otherwise to be paid promptly at or following a date or event shall be paid within five (5) days after the due date, subject to Section 10(b), (c) and (d) below.
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(iv)         No Influence on Year of Payment. In the case of any payment under the Agreement payable during a specified period of time following a termination or other event (including any payment for which the permitted payment period begins in one (1) calendar year and ends in a subsequent calendar year), Employee shall have no right to elect in which year the payment will be made, and the Company’s determination of when to make the payment shall not be influenced in any way by Employee.
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(b)         Special Rules for Severance Payments. In the case of payments in the nature of continuation of payments under Section 4(a) required under Section 6(c) (“Pre-CIC Severance Payments”) and severance payable under Section 6(e) (the “CIC Severance Payments” and, with the “Pre-CIC Severance Payment, the “Severance Payments”), the following rules will apply:
(i)          Separate Payments. Each installment of the Severance Payments shall be deemed to be a separate payment for all purposes, including for purposes of Section 409A.
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(ii)         Special Rules for Severance Payments. All Severance Payments shall be treated as follows for purposes of Section 409A:
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(A)       Severance Payments payable during the year of termination and by March 15 of the year following termination shall, to the maximum extent possible, be deemed to constitute a short-term deferral under Treasury Regulation § 1.409A-1(b) (4);
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(B)        Severance Payments not covered by Section 10(b)(ii)(A), shall, to the maximum extent possible, be deemed to constitute amounts payable under the “two-year/two-times” exclusion from being a deferral of compensation under Treasury Regulation § 1.409A-1(b)(9)(iii); and
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(C)        All Severance Payments not covered by Section 10(b)(ii)(A) and (B) shall be paid at the applicable payment date in compliance with Section 409A, except that any such payment shall be subject to the six-month delay rule of Section 10(c).
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(iii)        Change in Control. A Change in Control shall not be deemed to occur for any compensation, benefits or entitlements which qualify as non-qualified deferred compensation under Section 409A (after taking into account all applicable exemptions) payable upon such an event unless it also constitutes a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation § 1.409A-3(i)(10) (a “409A Change in Control”).
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(c)        Six-Month Delay Rule.
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(i)         General Rule. The six-month delay rule will apply to payments and benefits under the Agreement if all of the following conditions are met:
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(A)       Employee is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (10) thereof) for the year in which the termination occurs. The Company will determine status of “key employees” annually, under administrative procedures applicable to all Section 409A plans and arrangements and applied in accordance with Treasury Regulation § 1.409A-1(i).
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(B)       The Company’s stock is publicly traded on an
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established securities market or otherwise.
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(C)       The payment or benefit in question is a deferral of compensation and not excepted, exempted or excluded from being such by the short-term deferral rule, or the “two-years/two-times” rule in Treasury Regulation § 1.409A-1(b)(9)(iii), or any other exception, exemption or exclusion; provided, however, that the exclusion under Treasury Regulation § 1.409A-1(b)(9)(v)(D) shall apply only if and to the extent that it is not necessary to apply to any other payment or benefit payable within six months after Employee’s termination.
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(ii)       Effect of Rule. If it applies, the six-month delay rule will delay a payment or benefit which otherwise would be payable under this Agreement within six months after Employee’s separation from service.
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(A)       Any delayed payment or benefit shall be paid on the date six months after Employee’s separation from service.
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(B)       During the six-month delay period, accelerated payment will occur in the event of the Employee’s death but not for any other reason (including no acceleration upon a Change in Control), except for accelerations expressly permitted under Treasury Regulation § 1.409A-1 – A-6.
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(C)       Any payment that is not triggered by a termination, or is triggered by a termination but would be made more than six months after the termination (without applying this six-month delay rule), or would be payable at a fixed date not tied to termination that is earlier than the expiration of the six-month delay period, shall be unaffected by the six-month delay rule.
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(iii)      Limit to Application of Six-Month Delay Rule. If the terms of this Agreement or other plan or arrangement or document relating to this Agreement or payments hereunder impose this six-month delay rule in circumstances in which it is not required for compliance with Section 409A, those terms shall not be given effect.
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(d)        Other Provisions.
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(i)         Good Reason. Termination for “Good Reason” as defined under Section 6(c) and termination without Cause under the related rules governing constructive termination not for cause are intended to qualify as “involuntary separations” within the meaning of Treasury Regulation § 1.409A-1(n)(2)(i), and shall be so construed and interpreted.
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(ii)       Non-transferability. No right to any payment or benefit under this Agreement shall be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by Employee’s creditors or creditors of any of Employee’s beneficiaries.
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(iii)      No Acceleration. The timing of payments and benefits under the Agreement which constitute a deferral of compensation under Code Section 409A may not be accelerated to occur before the time specified for payment hereunder, except to the extent permitted under Treasury Regulation § 1.409A-3(j)(4) or as otherwise permitted under Code Section 409A without Employee incurring a tax penalty.
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(iv)       Timing Relating to Release. Other provisions of this Agreement (including this Section 10) notwithstanding, if Employee is obligated to execute and make irrevocable a Release as a condition to receipt of a payment hereunder, the Company will supply to Employee a finalized form of the Release not later than the date of Employee’s termination, or, if later, within five (5) days following notice of termination which must be returned within the time period required by law and must not be revoked by Employee within the applicable time period in order for Employee to satisfy any such condition, such that it becomes legally effective. Employee must sign no earlier than the last day of the Term and tender the Release and make it irrevocable as described above not later than sixty (60) days following Employee’s last day of employment, and if Employee fails or refuses to do so, Employee shall forfeit the right to such termination compensation as would otherwise be due and payable upon execution of such Release. If the severance payments and other entitlements are otherwise subject to Section 409A of the Code as “nonqualified deferred compensation”, they shall begin on the first pay period following the date that is sixty (60) days after Employee’s employment terminates; provided, however, that if such 60 days extends across two calendar years, the payments to Employee shall begin in the second of the calendar years.
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(v)        Definition of Termination of Employment. For purposes of this Agreement, the term “termination of employment” shall mean a separation from service as defined in Treasury Regulation § 1.409A-1(h); provided, however, that if a date for termination of employment is designated by the Company but Employee has a separation from service prior to such designated date, the designated termination date shall be deemed the date of termination for any compensation payable under this Agreement that would fully qualify for the short-term deferral exception under Treasury Regulation § 1.409A- 1(b)(4) and/or the “two-year/two-times” exclusion from being a deferral of compensation under Treasury Regulation § 1.409A-1(b)(9)(iii) under both circumstances (i.e., assuming the separation from service date was the termination date hereunder or that the designated termination of employment date was the termination date hereunder).
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(vi)       Continued Medical Coverage. Any continued medical coverage following termination of employment, to the extent provided under Section 6 or any other provision of this Agreement, if and to the extent such medical coverage (or the Company’s contributions or reimbursement of such coverage) represents taxable income to Employee, is intended to qualify as excluded from being a deferral of compensation under Treasury Regulation § 1.409A-1(b)(9)(v)(B), and the rights to such coverage shall be limited to the extent necessary to qualify thereunder.
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(vii)     References to Other Plans. References in the Agreement to the obligation of the Company to pay amounts under other plans, including Employee’s vested portion of any Magellan deferred compensation or other benefit plan, shall not be construed to modify the timing of payment, which shall be governed by such other plans.
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11.        Remedies. An actual or threatened violation by Employee of the covenants and obligations set forth in Sections 7, 8 and 9 will cause irreparable harm to the Company and the remedy at law for any such violation will be inadequate. Employee agrees, therefore, that Employer and its direct and indirect controlled subsidiaries or affiliates will be entitled to appropriate equitable relief (and to seek money damages as a result of such breach), including, but not limited to, a temporary restraining order and a preliminary injunction, without the necessity of posting a bond or the need on the part of the Employer to prove damages or irreparable injury. Employer and Employee consent to and direct any court of competent jurisdiction (as determined in accordance with the penultimate sentence of this Section 11) (“court of competent jurisdiction”) finding any clause or provision of Section 7, 8 or 9 this Agreement to be unenforceable, in whole or in part, to narrow the scope of such clause or other provision, including without limitation the duration, geographic scope, or character of restrictions of such covenant, provision, or agreement in order to enforce it to the maximum extent permissible without expanding the reach or scope of any such provision. The existence of any cause of action by Employee against Employer shall not constitute a defense to enforcement of this Agreement or entry of a decree for injunctive relief provided that Employer’s failure to pay or provide the payments and/or entitlements owed to Employee pursuant to the terms of Sections 6(c) and/or 6(e) of this Agreement (including, without limitation, the Accrued Amounts) may be raised as a defense to enforcement of Sections 7(b), (c) and (d) hereof unless Employer’s non-payment is due to Employee’s breach of such sections. If a court of competent jurisdiction finds that Employee failed to comply with the covenants and obligations set forth in Section 7, the restrictive time periods provided for will be extended by one (1) day for each day Employee failed to comply. Employee and Employer irrevocably and unconditionally (i) agree that any suit, action or other legal proceeding seeking equitable relief for a breach of this Agreement shall be brought in the Court of Chancery of the State of Delaware, or if such court does not have jurisdiction or will not accept jurisdiction, in any state or federal court of general jurisdiction in Delaware; (ii) consent to the exclusive jurisdiction of any such Delaware court in any such suit, action or proceeding; (iii) waive any objection which either party may have to the laying of venue of any such suit, action or proceeding in any such Delaware court; (iv) consent to the service of any process, pleadings, notices or other papers in a manner as allowed by Delaware law; and (v) that pursuit or enforcement of any legal or equitable rights will not preclude the party from pursuing any other rights and remedies. The provisions of Sections 4 through 21 and the Exhibits to this Agreement will survive the termination of the Term of this Agreement.
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12.        Arbitration. Except for an action for injunctive relief and directly related legal claims as described in Section 11, any disputes or controversies related to Employee’s employment with the Company will be settled by arbitration in Delaware in accordance with the rules of the American Arbitration Association relating to the arbitration of employment disputes. The arbitration shall be conducted by a single arbitrator who is either a retired judge from Delaware judiciary or a Delaware attorney who has been in private practice for at least ten (10) years. The determination and findings of such arbitrator will be final and binding on all parties and may be enforced, if necessary, in any court of competent jurisdiction. Except as otherwise prohibited by applicable law as to the particular claim, the costs and expenses of the arbitration shall be evenly
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split by Employer and Employee and each party shall pay its own attorney’s fees and other litigation costs.
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    DB     Employee’s Initials
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13.       Notices Any notice or request required or permitted to be given to any party will be given in writing and, excepting personal delivery, will be given at the address set forth below or at such other address as such party may designate by written notice to the other party to this Agreement:
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To Employee:            David Bourdon
Address on File
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To Employer:              Magellan Health, Inc.
6303 Cowboys Way
Suite 350
Frisco, Texas 75304 Attention: General Counsel
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Each notice given in accordance with this Section will be deemed to have been given, if personally delivered, on the date personally delivered; or, if mailed, on the third day following the day on which it is deposited in the United States mail, certified or registered mail, return receipt requested, with postage prepaid, to the address last given in accordance with this Section.
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14.        Headings. The headings of the sections of this Agreement have been inserted for convenience of reference only and should not be construed or interpreted to restrict or modify any of the terms or provisions of this Agreement.
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15.        Severability. If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws effective during the Term of this Agreement, such provision will be fully severable and, subject to the authority of a court to narrow provisions of this Agreement as set forth in Section 11, this Agreement and each separate provision will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement, and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. In addition, in lieu of such illegal, invalid or unenforceable provision, there will be added, as a part of this Agreement, a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable (but in no event expanding the scope or length of any restrictions on Employee’s activities under this Agreement or imposing any additional obligation on Employee), to the extent such reformation is allowable under applicable law.
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16.        Governing Law. This Agreement and all issues relating to the validity, interpretation, and performance will be governed by, interpreted, and enforced under the laws of the State of Delaware.
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17.        Binding Effect. This Agreement hereto will be binding upon and shall inure to   the benefit of each party and each party’s respective successors, heirs and legal representatives. This Agreement may not be assigned by Employee to any other person or entity but may be assigned by Employer to any subsidiary or affiliate of Employer in connection with an internal reorganization or restructuring of Employer and any of its subsidiaries or affiliates or to any successor to or transferee of all, or substantially all, of the stock or assets of Employer. If Employee should die while any payment, benefit or entitlement is due to him/her under this Agreement, then such payment, benefit or entitlement shall be paid or provided to his/her spouse (or if his/her spouse is not alive, to his/her estate).
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18.        Employer Policies, Regulations, and Guidelines for Employees, Clawback Policy. Employer may issue policies, rules, regulations, guidelines, procedures or other material, whether in the form of handbooks, memoranda, or otherwise, relating to its Employees. These materials are general guidelines for Employee’s information and will not be construed to alter, modify, or amend this Agreement for any purpose whatsoever. Any payments or other remuneration under this Agreement shall be subject to the Employer’s clawback policy or other recapture policies as in effect from time to time, and to any obligations of the Employer to clawback or recapture such payments as are required by applicable law; provided that if the Employer determines that the action, event or omission that gives rise to the clawback or recapture is curable and that allowing cure would not have a negative impact on the Company, Employee shall have fifteen (15) days to cure.
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19.        Background Check, Drug Screening, Employment Eligibility. This Agreement and Employee’s employment hereunder are subject to and conditioned upon: (i) satisfactory completion of a background investigation of Employee by Employer at Employer’s expense; (ii) Employee’s receipt of a drug screening test conducted in accordance with Employer’s customary practice for all new employees, with results acceptable to Employer in accordance with such practice, to be arranged by Employer and Employer at Employer’s expense; (iii) Employee completing an Officer’s Questionnaire containing answers satisfactory to Employer, and (iv) Employee providing Employer documentation indicating his/her eligibility to work within the United States pursuant to The Immigration Reform and Control Act of 1986. Employer confirms that as of the date it executes this Agreement, the requirements in clauses (i), (ii) and (iii) have been satisfactorily completed by Employee and are no longer conditions to the effectiveness of this Agreement; provided, however, if Employee has made any false statements misrepresentations with respect to the foregoing items, Employer’s confirmation shall be revoked.
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20.        Indemnification. Employer shall indemnify Employee and hold him/her harmless to the fullest extent permitted by Delaware law against all cost, expense, liability and loss (including, without limitation, attorneys’ fees (including those incurred to enforce Employee’s rights under this Section 20), judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by Employee, subject to all requirements, limitations and conditions of such law, if Employee is made a party, or is threatened to be made a
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party (including as a witness), to any action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding), by reason of the fact that s/he is or was a director, officer, employee or acting in another official capacity for Employer or the Company or is or was serving at the request of Employer as a director, officer, member, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, whether or not the basis of such Proceeding is Employee’s alleged action in any such capacity. The indemnification obligations under this Section 20 shall remain in effect following Employee’s termination of employment with Employer and shall inure to the benefit of Employee’s heirs, executors and administrators. Employer shall advance to Employee all reasonable costs and expenses incurred by him/her in connection with a Proceeding within twenty (20) days after receipt by it of a written request for such advance. Such request shall include an undertaking by Employee to repay the amount of such advance, without interest, if it shall ultimately be determined that s/he is not entitled to be indemnified against such costs and expenses. In addition, Employee shall be covered as an insured in respect of Employee’s activities as an officer and director of Employer by the Employer’s Directors and Officers liability policy or policies or other comparable policies obtained by Employer to the fullest extent provided under such policy and no less than that provided for any other director or officer of Employer. The rights of Employee under this Section 20 shall be in addition to, and not in lieu of, any other rights Employee may have to be indemnified and advanced expenses or to be covered under any applicable directors’ and officers’ liability insurance policies, Bylaws or any indemnification agreement provided to any other officer of the Company.
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21.        Representations. Employer represents and warrants to Employee that (i) the execution, delivery and performance of this Agreement by it has been fully and validly authorized by all necessary corporate action, (ii) the person signing this Agreement on its behalf is duly authorized to do so, and (iii) to its knowledge, the execution, delivery and performance of this Agreement by it does not violate any applicable law, regulation, order, judgment or decree or any agreement, plan or corporate governance document to which it is a party or by which it is bound. Employer and Employee represent and warrant to each other that upon execution and delivery of this Agreement by Employer and Employee, it shall be a valid and binding obligation of Employer and Employee, enforceable against each party in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally. Each party represents that s/he or it has been represented by counsel in connection with this Agreement.
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22.        Entire Agreement. This Agreement embodies the entire agreement and understanding between the parties with respect to its subject matter and supersedes all prior agreements and understandings, whether written or oral, relating to its subject matter, unless expressly provided otherwise within this Agreement. No amendment or modification of this Agreement will be valid unless made in writing and signed by each of the parties. No representations, inducements, or agreements have been made to induce either Employee or Employer to enter into this Agreement, which are not expressly set forth within this Agreement.
[Signature Page Follows]
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date first stated above.
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	MAGELLAN HEALTH, INC.
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	“Employer”
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	“Employee”
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	/s/ David Bourdon
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	By:
	/s/ Kenneth J. Fasola
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	David Bourdon
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	Name:  Kenneth J. Fasola
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	Title:  Chief Executive Officer
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EXHIBIT A
PERFORMANCE SHARE UNIT AGREEMENT
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Magellan Health, Inc.
2016 Management Incentive Plan
Notice of Terms of Performance-Based Restricted Stock Units
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(Reference No. 2016-[Month of Grant] 2020)
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Name of Grantee:         David Bourdon
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Date of Grant:               [DATE of GRANT]
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Type of Award:             Performance-Based Restricted Stock Units (“PSU”), each PSU representing the right to receive on the terms and conditions of the Performance-Based Restricted Stock Unit Agreement between you (as Grantee) and the Company referenced below and the terms and conditions of this Notice, a share of Ordinary Common Stock, par value $0.01 per share (“Share”), of Magellan Health, Inc. (the
“Company”), subject to adjustment thereto as provided in this Notice.
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Number of Performance-Based Restricted Stock
Units Awarded (“Target PSUs”):      ________________
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Dividend Equivalent
Rights:                           None.
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The terms and conditions of the award are as follows:
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1.           Vesting Provisions
(a)         General. Subject to your continued employment or other service with the Company or its subsidiaries through [VESTING DATE] (the “Service Date”) (except as otherwise provided herein), the Award shall become vested based upon the Company’s “Relative Total Shareholder Return” in terms of percentile ranking as compared to the Peer Group (as defined in Exhibit A) over the period beginning January 1, 2020 and ending December 31, 2022 (the “Measurement Period”) in accordance with the schedule below:
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	Relative Total Shareholder Return Ranking over Measurement Period
 (“TSR Percentile”)
	Payout % Level

	75th Percentile or Higher
	200%

	50th   Percentile
	100%

	25th   Percentile
	50%

	<25th   Percentile
	0%

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In the event of a payout percentage level above 100%, you will be awarded additional PSUs so that the total number of PSUs that vest (excluding dividend equivalent PSUs if applicable) and are settled on [SETTLEMENT DATE] equals your Target PSUs multiplied by the payout percentage level. For each percent above the 50th TSR Percentile, the payout percentage will be increased four percent, up to but not exceeding
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the maximum payout percent level. In the event of a payout percentage level below 100%, your Target PSUs will be forfeited to the extent necessary to provide that the total number of PSUs that are settled as of the Settlement Date (excluding dividend equivalent PSUs if applicable) equals your Target PSUs multiplied by the payout percentage level. For each percent below the 50th TSR Percentile down to the 25th percentile, the payout percentage will be decreased two percent.
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(b)         Payout Limits. In no event shall the number of PSUs settled as of the Settlement Date exceed 200% of the Target PSUs, and if the TSR Percentile achieved is less than the 25th percentile, all of your PSUs will be forfeited.
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(c)         Settlement Date. For purposes of this Award, the “Settlement Date” shall be the earlier of (i) [SETTLEMENT DATE], and (ii) the date upon which you vest with respect to 100% of the Target PSUs as provided in paragraph 3.
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2.           Termination of Employment. In the event your employment is terminated prior to the Service Date for any reason other than as provided in paragraph 3 with regard to certain terminations following a Change in Control of the Company, all PSUs granted hereunder shall immediately be forfeited by you and canceled, except as otherwise provided in the Company’s “Retirement Policy Applicable to Employee Long-Term Incentive Awards” or otherwise provided in any employment agreement between you and the Company in effect at the date of your termination.
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3.           Change in Control. This Award shall earlier vest immediately with respect to 100% of the Target PSUs in the event that your service with the Company shall be terminated by the Company without Cause (as defined below), or by you with Good Reason (as defined below), on or prior to and in connection with a Change in Control, or within two years after a Change of Control. For purposes of this Award, the terms “Change in Control,” “Cause” and “Good Reason” shall have the same meanings as provided in any employment agreement between the Company and you in effect at the termination date or the time of the Change in Control (including any terms of substantially comparable significance in any such employment agreement even if not of identical wording) or, if no such employment agreement is in effect at such time or no such meanings are provided in such employment agreement, shall have the meanings ascribed thereto below:
​
(1)    A “Change in Control” of the Company shall mean the first to occur after the date hereof of any of the following events:
a.           any “person,” as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes a “beneficial owner,” as such term is used in Rule 13d-3 promulgated under the Exchange Act, of greater than 50% of the Voting Stock (as defined below) of the Company;
b.          the majority of the Board of Directors of the Company consists of individuals other than “Continuing Directors,” which shall mean the members of the Board on the date hereof, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election was supported by a vote of the directors who then comprised the Continuing Directors, shall be considered to be a Continuing Director;
c.           the Board of Directors of the Company adopts and, if required by law or the certificate of incorporation of the Company, the shareholders approve the dissolution of the Company or a plan of liquidation or comparable plan providing for the disposition of all or substantially all of the Company’s assets;
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d.          at least 75% of the consolidated assets of the Company (measured using a quantitative analysis determined in good faith by the Board) are disposed of in a single transaction pursuant to a merger, consolidation, share exchange, reorganization or other transaction unless the shareholders of the Company immediately prior to such merger, consolidation, share exchange, reorganization or other transaction beneficially own, directly or indirectly, in substantially the same proportion as they previously owned the Voting Stock or other ownership interests of the Company, 51% or more of the Voting Stock or other ownership interests of the entity or entities, if any, that succeed to the business of the Company; or
e.           the Company merges or combines with another company and, immediately after the merger or combination, the shareholders of the Company immediately prior to the merger or combination own, directly or indirectly, 50% or less of the Voting Stock of the successor company, provided that in making such determination there shall being excluded from the number of shares of Voting Stock held by such shareholders, but not from the Voting Stock of the successor company, any shares owned by Affiliates of such other company who were not also Affiliates of the Company prior to such merger or combination.
(2)    “Cause” shall mean:
a.           Grantee is convicted of (or pleads guilty or nolo contendere to) a felony or a crime involving moral turpitude;
b.          Grantee’s commission of an act of fraud or dishonesty involving his or her duties on behalf of the Company;
c.           Grantee’s willful failure or refusal to faithfully and diligently perform duties lawfully assigned to Grantee as an officer or employee of the Company or other willful breach of any material term of any employment agreement at the time in effect between the Company and Grantee; or
d.          Grantee’s willful failure or refusal to abide by the Company’s policies, rules, procedures or directives, including any material violation of the Company’s Code of Ethics.
(3)    “Good Reason” shall mean:
a.           a material reduction in Grantee’s salary in effect at the time of a Change in Control, unless such reduction is comparable in degree to the reduction that takes place for all other employees of the Company of comparable rank (for which purpose any person who is an executive officer of the Company (as determined for purposes of the Exchange Act shall be considered of comparable rank) or a material reduction in Grantee’s target bonus opportunity for the year in which or any year after the year in which the Change in Control occurs from Grantee’s target bonus opportunity for the year in which the Change in Control occurs (if any) as established under any employment agreement Grantee has with the Company or any bonus plan of the Company applicable to Grantee (or, if no such target bonus opportunity has yet been established for Grantee under a bonus plan applicable to Grantee for the year in which the Change in Control has occurred, the target bonus opportunity so established for Grantee for the immediately preceding year (if any)). For purposes of this provision, an action or actions of the Company will be deemed "material" if, individually or in the aggregate, the action or actions result(s) or potentially result(s) in a reduction in compensation in the current year or a future year having a present value to Grantee of at least one and one half percent (1.5%) of Grantee’s then current base salary, provided that Grantee will have a legal right to claim damages for a breach of contract for any action by the Company or event having an effect described under those paragraphs
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that does not meet this objective materiality test, and actions may be material in a given case at levels less than the specified level.
b.          a material diminution in Grantee’s position, duties or responsibilities as in effect at the time of a Change in Control or the assignment to Grantee of duties which are materially inconsistent with such position, duties and authority, unless in either case such change is made with the consent of the Grantee; or
c.           the relocation by more than 50 miles of the offices of the Company which constitute at the time of the Change in Control Grantee’s principal location for the performance of his or her services to the Company;
provided that, in each such case, Grantee provides notice to the Company within 90 days that such event or condition constituting Good Reason has arisen, and such event or condition continues uncured for a period of more than 30 days after Grantee gives notice thereof to the Company, and Grantee terminates Service within eighteen months after such event or condition has arisen.
For purposes of the foregoing definitions, (A) “the Company” shall include any entity that succeeds to all or substantially all of the business of the Company, (B) “Affiliate” of a person or other entity shall mean a person or other entity that directly or indirectly controls, is controlled by, or is under common control with the person or other entity specified, and (C) “Voting Stock” shall mean any capital stock of any class or classes having general voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of a corporation and reference to a percentage of Voting Stock shall refer to such percentage of the votes that all such Voting Stock is entitled to cast.
4.           Leave of Absence. Unless otherwise required by law, in the event you have an authorized leave of absence at any time prior to the Service Date which absence extends beyond three full calendar months (including any absence that began before the Grant Date), your PSU payout will be prorated based on the number of full and partial months spent on the active payroll (beginning with the first full calendar month after the Grant Date). Payout for the award will be made at the same time as payment would have been made without regard to any leave of absence and will in all respects be subject to the Company’s actual Relative Total Shareholder Return achievement for the full Measurement Period.
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5.           Settlement of Award. Shares in settlement of vested PSUs under this Award (or, at the Company’s election, cash in lieu thereof) shall be delivered to you on the Settlement Date as further provided in your Performance Based Restricted Stock Unit Agreement with the Company. Settlement and your retention of cash or Shares issued in settlement or the proceeds of a sale of Shares or other benefits resulting from this Award, are subject to the terms of the provisions of the Performance Based Restricted Stock Unit Agreement (without regard to any previous vesting of this Award).
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6.           Transfer Restrictions. Shares issued in settlement of this Award shall not be subject to any additional transfer restrictions, other than those provided by your Performance Based Restricted Stock Unit Agreement.
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By signing your name below, you acknowledge and agree that this Award is governed by the terms and conditions of the Magellan Health, Inc. 2016 Management Incentive Plan (the “Plan”), or a predecessor plan, and the Performance Based Restricted Stock Unit Agreement, reference number 2016-[GRANT DATE], 2020 (the “Agreement”), both of which are hereby made a part of this document. Capitalized terms used but not defined in this Notice of Performance Based Restricted Stock Units shall have the meaning assigned to them in the Plan and Agreement.
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	MAGELLAN HEALTH, INC.

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	Name: 
	Kenneth J. Fasola

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	Title: 
	Chief Executive Officer

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	GRANTEE:
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	Name: David Bourdon
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	Date:
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Magellan Health, Inc.
Performance Based Restricted Stock Unit
Exhibit A – Calculation of Relative Total Shareholder Return
​
·     “Relative Total Shareholder Return” means the Company’s Total Shareholder Return (“TSR”) relative to the TSR of the Peer Companies. Relative TSR will be determined by ranking the Company and the Peer Companies from highest to lowest according to their respective TSRs. After this ranking, the percentile performance of the Company relative to the Peer Companies will be determined as follows:

where: “P” represents the percentile performance which will be rounded, if necessary, to the nearest whole percentile by application of regular rounding.
“N” represents the remaining number of Peer Companies, plus the Company. “R” represents the Company’s ranking among the Peer Companies.
Example: If there are 24 Peer Companies, and the Company ranked 7th, the performance would be at the 75th percentile: 1 – ((7-1)/(25-1)).
Relative TSR shall be determined by the Compensation Committee of the Board of Directors of the Company based on the terms set forth in this Exhibit A and in the Compensation Committee’s sole and absolute discretion.
·     “TSR” means, for each of the Company and the Peer Companies, the company’s total shareholder return, expressed as a percentage, which will be calculated by dividing (i) the Closing Average Share Value by (ii) the Opening Average Share Value and subtracting one from the quotient.
·     “Opening Average Share Value” means the average, over the trading days in the Opening Average Period, of the closing price of a company’s stock multiplied by the Accumulated Shares for each trading day during the Opening Average Period.
·     “Opening Average Period” means the 30 trading days beginning as of January 1, 2020.
·     “Accumulated Shares” means, for a given trading day, the sum of (i) one (1) share and (ii) a cumulative number of shares of the company’s common stock purchased with dividends declared on a company’s common stock, assuming same day reinvestment of the dividends in the common stock of a company at the closing price on the ex-dividend date, for ex-dividend dates during the Opening Average Period or between the Grant Date and the December 31, 2022, as applicable.
·     “Closing Average Share Value” means the average, over the trading days in the Closing Average Period, of the closing price of the company’s stock multiplied by the Accumulated Shares for each trading day during the Closing Average Period.
·     “Closing Average Period” means the 30 trading days immediately preceding January 1, 2023.
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·     “Peer Companies” means the S&P Health Care Services Industry Index as of [GRANT DATE], 2020 which currently includes the following companies*:
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	Acadia Healthcare Co Inc
	Cross Country Healthcare Inc
	Owens & Minor Inc

	Addus HomeCare Corp.
	CVS Health Corp.
	Patterson Cos Inc

	Amedisys Inc
	DaVita Inc.
	PetIQ, Inc.

	AmerisourceBergen Corp
	Diplomat Pharmacy Inc
	Premier Inc

	AMN Healthcare Services Inc
	Encompass Health Corp
	The Providence Service Corp.

	Anthem, Inc.
	The Ensign Group, Inc.
	Quest Diagnostics Inc

	BioScrip, Inc.
	HCA Healthcare Inc
	R1 RCM, Inc.

	BioTelemetry Inc
	HealthEquity Inc
	RadNet, Inc.

	Brookdale Senior Living Inc
	Henry Schein Inc
	Select Medical Holdings Inc

	Cardinal Health Inc
	Humana Inc
	Tenet Healthcare Corp

	Centene Corp
	Laboratory Corp of America
	Tivity Health, Inc.

	Chemed Corp
	LHC Group Inc
	Triple-S Management Corp

	CIGNA Corp
	Magellan Health Inc
	UnitedHealth Group Inc

	Community Health Systems Inc
	McKesson Corp
	Universal Health Services Inc

	CorVel Corp
	MEDNAX Inc
	US Physical Therapy Inc

	Covetrus, Inc.
	Molina Healthcare Inc
	WellCare Health Plans Inc

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* The actual Peer Companies are subject to change and will be updated as of the [GRANT DATE], 2020 grant date based on which companies are part of the S&P Health Care Services Industry Index at that time.
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The Peer Companies may be changed as follows:
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(i)       In the event of a merger, acquisition or business combination transaction of a Peer Company with or by another Peer Company, the surviving entity shall remain a Peer Company.
(ii)     In the event of a merger of a Peer Company with an entity that is not a Peer Company, or the acquisition or business combination transaction by or with a Peer Company, or with an entity that is not a Peer Company, in each case where the Peer Company is the surviving entity and remains publicly traded, the surviving entity shall remain a Peer Company.
(iii)    In the event of a merger or acquisition or business combination transaction of a Peer Company by or with an entity that is not a Peer Company, a “going private” transaction involving a Peer Company or the liquidation of a Peer Company, where the Peer Company is not the surviving entity or is otherwise no longer publicly traded, the company shall no longer be a Peer Company.
(iv)     In the event of a bankruptcy of a Peer Company, such company shall remain a Peer Company.
(v)      In the event of a stock distribution from a Peer Company consisting of the shares of a new publicly-traded company (a “spin-off”), the Peer Company shall remain a Peer Company and the stock distribution shall be treated as a dividend from the Peer Company based on the closing price of the shares of the spun-off company on its first day of trading. The performance of the shares of the spun-off company shall not thereafter be tracked for purposes of calculating TSR.
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(vi)      For purposes of calculating TSR, the value of any Peer Company shares traded on a foreign exchange will be converted to U.S. dollars.
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MAGELLAN HEALTH, INC.
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2016 MANAGEMENT INCENTIVE PLAN 
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PERFORMANCE-BASED RESTRICTED STOCK UNIT AGREEMENT
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REFERENCE NUMBER: 2016 – [GRANT DATE], 2020 – [NAME]
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As of [Grant Date], 2020
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1.           GRANT OF PERFORMANCE-BASED RESTRICTED STOCK UNITS.
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(a)              Performance-Based Restricted Stock Units. On the terms and conditions set forth in this Performance-Based Restricted Stock Unit Agreement (the “Agreement”) and each Notice of Performance-Based Restricted Stock Unit Award referencing this Agreement, Magellan Health, Inc. (the “Company,” as further defined below) grants to the Grantee referred to on the signature page hereof the right to receive on the Settlement Date (as hereinafter defined) the number of shares of Ordinary Common Stock, $0.01 par value per share, of the Company (“Shares,” as further defined below) equal to the number of “Performance Stock Units” awarded to the Grantee as set forth in the Notice of Performance- Based Restricted Stock Unit Award, subject to adjustment thereto on account of any change that may be made in the Shares as provided by Section 4 below (the “Performance Unit Shares”). Each such Notice of Performance-Based Restricted Stock Unit Award, together with this referenced Agreement, shall be a separate “Performance-Based Restricted Stock Unit” governed by the terms of this Agreement and any such separate Performance-Based Restricted Stock Unit may be referred to herein as the “Performance-Based Restricted Stock Unit,” and, as pertinent, any of multiple Notices of Performance-Based Restricted Stock Unit Award referencing this Agreement may be referred to herein as the “Performance-Based Restricted Stock Unit Award Notice.”
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(b)             2016 Management Incentive Plan and Defined Terms. The Performance-Based Restricted Stock Unit Award is granted under and subject to the terms of the 2016 Management Incentive Plan, as amended and supplemented from time to time (the “Plan”), which is incorporated herein by this reference. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Plan or the Performance- Based Restricted Stock Unit Award Notice.
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(c)              Scope of this Agreement. This Agreement shall apply both to the Performance- Based Restricted Stock Unit and to any Performance Unit Shares acquired upon the settlement of the Performance-Based Restricted Stock Units. This Agreement references the terms of Sections 7 and 8 of the Employment Agreement (“Non-Compete Agreement”).
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2.           VESTING AND SETTLEMENT OF PERFORMANCE-BASED RESTRICTED STOCK UNITS.
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(a)              Vesting. The Performance-Based Restricted Stock Unit shall vest in whole or in part on the date or dates provided by the Notice of Performance-Based Restricted Stock Unit Award, provided that Grantee remains in the Service of the Company or a Related Employer through [VESTING DATE], 2023; it being understood that the Notice of Performance-Based Restricted Stock Unit Award may provide that the Performance-Based Restricted Stock Unit shall vest upon termination of Grantee’s Service in such circumstances as are provided in the Notice of Performance-Based Restricted Stock Unit Award (subject to Section 2(e) below).
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(b)             Settlement in Shares. Subject to the following provisions of this Section 2, the Company shall settle the Performance-Based Restricted Stock Unit, to the extent it has vested, on the Settlement Date set forth in the Notice of Performance-Based Restricted Stock Unit Award (the “Settlement Date”), by the delivery to Grantee of the number of Performance Unit Shares equal to the number of Performance-Based Restricted Stock Units so vested. Subject to subsection 2(e) below, in settlement of the Performance-Based Restricted Stock Unit, the Company shall cause to be issued on the Settlement Date or as soon as practicable thereafter (but not more than five business days) an appropriate certificate or certificates for the Performance Unit Shares, registered in the name of the Grantee (or, at the direction of the Grantee, in the names of such person and his or her spouse as community property or as joint tenants with right of survivorship or as tenants in the entirety); provided, however, that such Performance Unit Shares shall be subject to such restrictions on transfer or other restrictions as are provided by the Performance-Based Restricted Stock Unit Award Notice and the certificates so issued may bear a legend reflecting such restrictions and any restrictions applicable in accordance with subsections 2(g) and 3(c) below.
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(c)              Alternative Settlement in Cash. In lieu of settlement of the Performance-Based Restricted Stock Unit in Performance Unit Shares, the Committee may in its sole discretion elect to settle all or a portion of the Performance-Based Restricted Stock Unit by a cash payment equal to the Fair Market Value as of the Settlement Date of the Performance Unit Shares that would otherwise have been issued under this Agreement. Such payment may be made by good check of the Company issued in accordance with its normal payroll practices or such other means as are acceptable to the Company
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(d)             Withholding Requirements. The Company may withhold any tax (or other governmental obligation) the Company is required to withhold as a result of the grant of the Performance-Based Restricted Stock Unit and/or the issuance of Performance Unit Shares (or cash in lieu of Performance Unit Shares) in settlement of a Performance-Based Restricted Stock Unit and, as a condition to the grant of the Performance-Based Restricted Stock Unit or issuance of the Performance Unit Shares in settlement thereof, the Grantee shall make arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.
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(e)              Injurious Conduct.
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(i)   In the event that the Grantee has engaged in Injurious Conduct (as defined in
Section 2(e)(ii)(A) below) during Grantee’s Service or during the Restricted Period (as defined in Section 2(e)(ii)(B) below) following termination of Grantee’s Service, then the following forfeitures and related terms will apply to the Award and the Performance Unit Shares and related benefits (including Dividend Equivalents and/or dividends), as authorized by Plan Section 12 and other applicable provisions of the Plan:
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(A)    No Performance Unit Shares shall be issued to Grantee in connection with the settlement of the Award after such determination (even if the Award is fully vested) nor shall any other benefit thereafter accrue to the Grantee under this Agreement (including by reason of the lapse of any restriction on transfer or other restriction then applicable to Performance Unit Shares that have been issued).
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(B)    The unsettled Award shall be forfeited and shall terminate and any Performance Unit Shares subject to any such restrictions shall be forfeited.
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(C)    As authorized by the Plan (including Sections 12(a) and (b)), any benefits realized by Grantee as a result of the Award, if the Award vested during the three-year period prior to the time such Injurious Conduct occurred (or, if longer than three years, the period equal to the Restricted Period), including benefits resulting from the lapse of any restrictions on Shares issued as a result thereof and Dividend Equivalents relating to the Award and dividends relating to the such Shares, shall be forfeited by Grantee and Grantee shall pay over to the Company any Shares received by Grantee in connection with the Award, if still owned by Grantee, or the cash value of such Shares (such value to be measured as of the date of the cash payment by Grantee hereunder), together with any cash amount received by Grantee as related Award benefits (without discount or interest; for clarity, taxes previously withheld will be deemed to have been received by Grantee).
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(ii)   The forfeitures and related terms of Section 2(e)(i) are subject to the following:
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(A)    For purposes of this Agreement, “Injurious Conduct” means an event as specified in Plan Section 12(a)(i) or a violation by Grantee of any material provision of Grantee’s Non-Compete Agreement with the Company.
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(B)    For purposes of this Agreement, the “Restricted Period” means the length of the period during which Grantee remains bound by non-competition and/or non-solicitation covenants following termination of Grantee’s Service under Grantee’s Non-Compete Agreement.
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(C)    The terms of this Section 2 are intended to modify and supersede certain terms of Plan Section 12, including modifying the definition of “Injurious Conduct” and modifying the post-termination periods in which forfeitures may occur and
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during which (under Plan Section 12(c)) the Committee shall determine whether Injurious Conduct has occurred and any resulting forfeitures, and therefore the terms of this Section 2 control to the extent the terms differ from Plan Section 12. The forfeitures or related terms of this Section 2 may be waived or limited by the terms of any agreement executed by the Company with the approval of the Committee.
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(D)    In the case of Section 2(e)(i)(A) and (B), such forfeitures and related terms will not apply to the Award if the settlement of the Award has been deferred at the election of the Grantee and if the Award was fully vested for a period of at least three years or, if longer, a period at least equal to the Restricted Period before the date such Injurious Conduct occurred; in such case, the Company is not excused from settling, completing delivery of or removing any legend restricting the transfer of the Award or Shares and any related Dividend Equivalent Rights or dividends.
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(E)    Any forfeitures hereunder, based on the Committee’s determination that Grantee has engaged in Injurious Conduct during Grantee’s Service or during the Restricted Period, and the terms of this Section 2 shall not relieve Grantee of any other liability he or she may have to the Company or a Related Employer as a result of engaging in the Injurious Conduct, including any right of the Company or any Related Employer to injunctive or other equitable relief.
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(f)              Transfer Restrictions On Performance Unit Shares. Subject to subsection 2(d) above and subsections 2(g) and 3(c) below, unless otherwise provided by the Performance- Based Restricted Stock Unit Award Notice or another agreement between Grantee and the Company, upon the acquisition of Performance Unit Shares pursuant to the settlement of a Performance-Based Restricted Stock Unit Award, Grantee shall be free to dispose of the Performance Unit Shares so acquired in any manner and at any time.
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(g)             Securities Law Restrictions On Issuance of Performance Unit Shares. Unless a registration statement under the Securities Act permitting the sale and delivery of Performance Unit Shares upon settlement of the Performance-Based Restricted Stock Unit Award is in effect on the Settlement Date, the Company shall not be required to issue Performance Unit Shares upon such settlement, except as otherwise provided in this subsection. The Company shall use its commercially reasonable efforts to register under the Securities Act sufficient Performance Unit Shares to permit delivery to Grantee of all Performance Unit Shares that may be acquired by Grantee upon the settlement of the Performance-Based Restricted Stock Unit Award; provided, however, that the Company shall only be so required to register the Performance Unit Shares on Form S-8 under the Securities Act (or any successor form). Notwithstanding the foregoing, the Company shall, if Grantee has given the Company at least 90 days’ notice requesting the Company to register in accordance with the foregoing provisions of this subsection the Performance Unit Shares that may then be acquired by Grantee upon settlement of the Performance-Based Restricted Stock Unit Award and the Company has failed to do so, issue Performance Unit Shares to Grantee upon settlement of the Performance-Based Restricted Stock Unit Award without registration thereof under the Securities Act if (i) Grantee represents, effective on the date of such
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issuance, in writing in a form acceptable to the Company (A) that such Performance Unit Shares are being acquired for investment and not with a present view to distribution, (B) Grantee understands that the Performance Unit Shares have not been registered under the Securities Act and cannot be sold or otherwise Transferred unless a registration statement under the Securities Act is in effect with respect thereto or the Company has received an opinion of counsel, satisfactory to it, to the effect that such registration is not required, (C) that Grantee has, alone or together with any qualified advisor, such knowledge and experience in financial and business matters as is necessary to evaluate the risks of an investment in the Performance Unit Shares, is acquiring the Performance Unit Shares based on an independent evaluation of the long-term prospects of an investment in the Performance Unit Shares and has been furnished with such financial and other information regarding the Company as the Grantee has requested for purposes of making such evaluation, and (D) Grantee is able to bear the economic risk of an investment in the Performance Unit Shares subject to such restrictions on Transfer and (ii) if the Company determines that under the circumstances issuing the Performance Unit Shares pursuant to such settlement of the Performance-Based Restricted Stock Unit Award is lawful; provided, however, that the Company may require, as a condition of such issuance of Performance Unit Shares, that Grantee execute and deliver to it such other certificates, agreements and other instruments as in the judgment of the Company, upon advice of counsel, are necessary or appropriate to assure that the Performance Unit Shares are issued to Grantee in accordance with the Securities Act and any other applicable securities law and may require that any certificates representing Performance Unit Shares so issued bear any restrictive legend appropriate for such purpose. In addition, even if a registration statement under the Securities Act permitting the delivery of Performance Unit Shares upon settlement of the Performance-Based Restricted Stock Unit Award is in effect at the Settlement Date, the Company may suspend the issuance of Performance Unit Shares pursuant to the settlement of all Performance-Based Restricted Stock Unit Awards issued under the Plan for such period of time as in the judgment of the Company, upon advice of counsel, is necessary in order for the Company to come into compliance with all the reporting requirements applicable to the Company pursuant to Section 13(a) of the Exchange Act or to otherwise avoid in connection with the issuance of the Performance Unit Shares under such registration statement a violation of Sections 10, 11 or 12 of the Securities Act. If the Company suspends the issuance of Performance Unit Shares pursuant to the settlement of Performance-Based Restricted Stock Unit Awards issued under the Plan, the Company shall give prompt written notice thereof to the Grantee (but the failure of the Company to give such notice shall not prevent the Company from suspending the issuance of Performance Unit Shares as permitted hereby) and, at such time as such period of suspension ends, shall give prompt written notice thereof to Grantee. Notwithstanding that the Company in accordance with this subsection may not be able to issue Performance Unit Shares in settlement of a Performance-Based Restricted Stock Unit, the Company shall not be required to settle a Performance-Based Restricted Stock Unit in cash, but may do so if it elects in its discretion to do so, as provided by subsection 2(c) above.
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(h)             Special Distribution Rules to Comply with Code Section 409A. In the event that any Performance-Based Restricted Stock Units constitute a “deferral of compensation” under Section 409A of the Internal Revenue Code (the “Code”), the timing of settlement of such
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Performance-Based Restricted Stock Units (hereinafter defined as “409A RSUs”) will be subject to applicable limitations under Code Section 409A and Section 19(a) of the Plan, including the following restrictions on settlement:
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(i)         The “six-month delay rule.” The six-month delay rule will apply to 409A RSUs if these four conditions are met:
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(A)       The Grantee has a “separation from service” (within the meaning of Treasury Regulation § 1.409A-1(h));
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(B)       A distribution of Shares is triggered by the separation from service (but not due to death);
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(C)       The Grantee is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof). The Company will determine status of “key employees” annually, under administrative procedures applicable to all plans and arrangements subject to Code Section 409A; and
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(D)       The Company’s stock is publicly traded on an established securities market or otherwise.
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If it applies, the six-month delay rule will delay a distribution in settlement of 409A RSUs triggered by the Grantee’s separation from service where the distribution otherwise would be within six months after the separation.
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(a)   Any delayed payment shall be made on the date six months after the Grantee’s separation from service.
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(b)  During the six-month delay period, accelerated distribution will be permitted in the event of the Grantee’s death and for no other reason (including no acceleration upon a Change in Control), except for the limited exceptions permitted under the Code Section 409A regulations.
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(c)   Any payment that is not triggered by a separation from service, or triggered by a separation from service but which would be made more than six months after separation (without applying this six-month delay rule), shall be unaffected by the six-month delay rule. Each payment in a series of installments would be treated as a separate payment for this purpose. If the terms of a 409A RSU agreement impose this six-month delay rule in circumstances in which it is not required for compliance with Code Section 409A, those terms shall not be given effect.
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(ii)        Change in Control Rule.
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a.  If any distribution of 409A RSUs would be triggered by a Change in Control, such distribution will be made only if, in connection with the
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Change in Control, there occurs a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation § 1.409A-3(i)(5) (a "409A Change in Control").
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b.  In this case, distribution of the 409A RSUs shall occur not later than five business days after (i) the occurrence of a 409A Change in Control occurring at the time of or following the Change in Control or (ii) upon occurrence of the Change in Control occurring within 90 days after the 409A Change in Control, but only if the occurrence of the Change in Control is non-discretionary and objectively determinable at the time of the 409A Change in Control (in this case, the Grantee shall have no influence on when during such 90-day period the settlement shall occur).
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c.  Upon a Change in Control during the six-month delay period, no accelerated distribution applies (even if the events involve a 409A Change in Control) to a distribution delayed by application of the six- month delay rule.
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(iii)       Separation from Service.
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(A) Any distribution in settlement of 409A RSUs that is triggered by a termination of employment will occur only at such time as the participant has had a “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h), regardless of whether any other event might be viewed as a termination of employment by the Company for any other purpose.
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(B) In particular, if a Grantee switches to part-time employment or becomes a consultant in connection with a termination of employment, whether the event will be deemed a termination of employment for purposes of 409A RSUs will be determined in accordance with Treasury Regulation § 1.409A-1(h).
​
(iv)       Other Restrictions.
​
(A) The settlement of 409A RSUs may not be accelerated by the Company except to the extent permitted under Code Section 409A.
​
(B) Any restriction imposed on RSUs under these 409A Compliance Rules or imposed on RSUs under the terms of other documents solely to ensure compliance with Code Section 409A shall not be applied to RSUs that are not 409A RSUs except to the extent necessary to preserve the status of such RSUs as not 409A RSUs. If any mandatory term required for 409A RSUs or non-409A RSUs to avoid tax penalties under Code Section 409A is not otherwise explicitly provided under this document or other applicable documents, such term is hereby incorporated by reference and fully applicable as though set forth at length herein, and
​
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​
(v)        Any other applicable provisions of Plan Section 19(a) will apply to such Performance-Based Restricted Stock Units.
​
3.           TRANSFER OF PERFORMANCE-BASED RESTRICTED STOCK UNIT AWARD OR PERFORMANCE UNIT SHARES.
​
(a)              Transfers Generally Prohibited. Except as otherwise provided by the Performance-Based Restricted Stock Unit Award Notice or otherwise permitted by the Plan or in the case of a transfer permitted by subsection 3(b) below, the Performance-Based Restricted Stock Unit Award may be settled only during the Grantee’s lifetime and only by the issuance of Performance Unit Shares (or a cash payment in lieu thereof where permitted by the Performance-Based Restricted Stock Unit Award Notice) to Grantee. Except as otherwise provided in subsection 3(b) below, the Performance-Based Restricted Stock Unit Award and the rights and privileges conferred by the Performance-Based Restricted Stock Unit Award shall not be sold or otherwise Transferred.
​
(b)             Certain Transfers Permitted. Notwithstanding the foregoing provisions of this Section 3, the Performance-Based Restricted Stock Unit Award may be Transferred (i) in the event of the Grantee’s death, by will or the laws of descent and distribution or by a written beneficiary designation accepted by the Company, (ii) by operation of law in connection with a merger, consolidation, recapitalization, reclassification or exchange of Shares, reorganization or similar transaction involving the Company and affecting the Shares generally or (iii) with the approval of the Committee, to a member of Grantee’s family, or a trust primarily for the benefit of Grantee and/or one or more members of Grantee’s family, or to a corporation, partnership or other entity primarily for the benefit of Grantee and/or one or more such family members and/or trusts or (iv) with the approval of the Committee, in another estate or personal financial planning transaction; provided, however, that in any such case the Performance-Based Restricted Stock Unit Award so Transferred and, upon issuance of Performance Unit Shares in settlement thereof, the Performance Unit Shares issued to the Transferee shall remain subject in the hands of the Transferee to the restrictions on Transfer provided hereby and all other terms hereof, including the terms of subsection 2(c) above. The foregoing notwithstanding, if RSUs constitute deferrals of compensation for purposes of Code Section 409A, RSUs and any related right of Grantee shall not be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Grantee or his or her beneficiary, except as permitted under Code Section 409A and regulations and guidance thereunder.
​
(c)              Fiduciary, Securities Law and Officer Restrictions. As an employee, officer and/or director of the Company, Grantee may be subject to restrictions on his or her ability to sell or otherwise Transfer Performance Unit Shares by reason of being a fiduciary for the Company or by reason of federal or state securities laws and/or the policies regarding transactions in securities of the Company from time to time adopted by the Company and applicable to Grantee in connection therewith. Nothing contained herein shall relieve Grantee of any restriction on sale or other Transfer of Performance Unit Shares provided thereby and any other restrictions of sale or other Transfer of Performance Unit Shares provided herein (including in a Performance-Based Restricted Stock Unit Award Notice or in the Plan) shall be in addition to and not in lieu of any other restrictions provided thereby. Pursuant to the
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Company’s Equity Ownership Policy currently in effect and as may be amended from time to time, certain officers of the Company are currently, or may in the future be, subject to restrictions on sales or transfers of Performance Unit Shares and other equity rights issued by the Company. If Grantee is at any time subject to such Equity Ownership Policy, sale or transfer of Grantees’ Performance Unit Shares (other than any sale to pay any taxes due upon vesting and/or delivery of the Performance Unit Shares) shall be restricted as provided in such Equity Ownership Policy.
​
4.           ADJUSTMENT OF SHARES.
​
(a)              Adjustment Generally. If while the Performance-Based Restricted Stock Unit remains in effect there shall be any change in the outstanding Shares of the class which are to be issued upon settlement of the Performance-Based Restricted Stock Unit, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, combination of shares, exchange of shares for other securities or other like change in the outstanding Shares, or any spin-off, split-off, dividend in kind or other extraordinary dividend or other distribution in respect of such outstanding Shares or other extraordinary change in the capital structure of the Company, an adjustment shall be made to the terms of the Performance-Based Restricted Stock Unit so that the Performance-Based Restricted Stock Unit shall thereafter be ultimately settled, otherwise on the same terms and conditions as provided by the Performance-Based Restricted Stock Unit Award Notice, this Agreement and the Plan, for such securities, cash and/or other property as would have been received in respect of the Shares that would have been issued upon settlement of the Performance-Based Restricted Stock Unit had the Performance-Based Restricted Stock Unit been settled in full immediately prior to such change or distribution (whether or not the Performance-Based Restricted Stock Unit was then fully vested) or, if and to the extent the Committee determines that so adjusting the consideration to be received upon settlement of the Performance-Based Restricted Stock Unit, in whole or in part, is not practicable, the Committee shall equitably modify the consideration to be received in respect of the settlement of the Performance-Based Restricted Stock Unit or other pertinent terms and conditions of the Performance-Based Restricted Stock Unit as provided by subsection 4(b) below. Such an adjustment shall be made successively each time any such change in the outstanding Shares of the class which may be received upon settlement of the Performance-Based Restricted Stock Unit or extraordinary distribution in respect of such outstanding Shares or extraordinary change in the capital structure of the Company shall occur.
​
(b)             Modification Of Performance-Based Restricted Stock Unit. In the event any change in the outstanding Shares of the class which may be received upon settlement of the Performance-Based Restricted Stock Unit or extraordinary distribution in respect of such outstanding Shares or extraordinary change in the capital structure of the Company described in subsection 4(a) above occurs, or in the event of any change in applicable laws or any change in circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Grantee in respect of a Performance-Based Restricted
​
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​
Stock Unit or otherwise as a participant in the Plan or which otherwise warrants equitable adjustment to the terms and conditions of the Performance-Based Restricted Stock Unit because such event or circumstances interferes with the intended operation of the Plan (including the intended tax consequences of Awards) occurs, then the Committee shall adjust the number and kind of Performance Unit Shares and/or other securities and/or cash or other property that may be issued or delivered upon the settlement of the Performance-Based Restricted Stock Unit and/or adjust the other terms and conditions of the Performance-Based Restricted Stock Unit as the Committee in its discretion determines to be equitable in order to prevent dilution or enlargement of the Grantee’s rights in respect of the Performance-Based Restricted Stock Unit as such existed before such event. Appropriate adjustments shall likewise be made by the Committee in other terms and conditions of the Performance-Based Restricted Stock Unit to reflect equitably such changes in circumstances, including modifications of performance targets and changes in the length of performance periods relating to the vesting of the Performance-Based Restricted Stock Unit or any restrictions on Performance Unit Shares.
​
(c)              Modifications To Comply With Section 409A. To the extent applicable, this Agreement (including any related Notice of Restricted Stock Award) shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or guidance that may be issued after the date on which a Performance-Based Restricted Stock Unit was awarded. Without limiting the authority of the Committee under subsection 4(b) above to make modifications to the Performance-Based Restricted Stock Unit by reason of changes in law or circumstances that would result in any substantial dilution or enlargement of the rights granted to, or available for, Grantee in respect of a Performance-Based Restricted Stock Unit or otherwise as a participant in the Plan or which otherwise warrants equitable adjustment to the terms and conditions of the Performance-Based Restricted Stock Unit because such event interferes with the operation of the Plan, and notwithstanding any provision of this Agreement to the contrary, in the event that the Committee or an authorized officer of the Company determines that any amounts will be immediately taxable to the Participant under Section 409A of the Code and related Department of Treasury guidance (or subject the Grantee to a penalty tax) in connection with the grant or vesting of the Performance-Based Restricted Stock Unit or any other provision of the Performance-Based Restricted Stock Unit Award Notice or this Agreement or the Plan, the Company may (a) adopt such amendments to the Performance-Based Restricted Stock Unit, including amendments to this Agreement (having prospective or retroactive effect), that the Committee or authorized officer determines to be necessary or appropriate to preserve the intended tax treatment of the Performance-Based Restricted Stock Unit and/or (b) take such other actions as the Committee or authorized officer determines to be necessary or appropriate to comply with the requirements of Section 409A of the Code and related Department of Treasury guidance, including such Department of Treasury guidance and other interpretive materials as may be issued after the date on which such Performance-Based Restricted Stock Unit was awarded, but only to the extent permitted under Code Section 409A and regulations and guidance thereunder.
​
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5.           MISCELLANEOUS PROVISIONS.
​
(a)              Rights as a Shareholder. Neither the Grantee nor the Grantee’s personal representative or permitted Transferee shall have any rights as a shareholder with respect to any Performance Unit Shares until the Grantee or his or her personal representative or permitted Transferee becomes entitled to receive such Performance Unit Shares pursuant to this Agreement, the Plan and the applicable Performance-Based Restricted Stock Unit Award Notice, and any such right shall also be subject to subsections 2(g) and 3(c) above.
​
(b)             Tenure. Nothing in the Performance-Based Restricted Stock Unit Award Notice, this Agreement or in the Plan shall confer upon the Grantee any right to continue in the Company’s Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Related Employer) or of the Grantee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.
​
(c)              Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery to the President, Treasurer, General Counsel, Secretary or any Assistant Secretary of the Company or five Business Days upon deposit with the United States Postal Service, by registered or certified mail, with postage and fees prepaid addressed to the Company. A notice shall be addressed to the Company at its principal executive office, marked to the attention of the Corporate Secretary, and to the Grantee at the address that he or she most recently provided to the Company.
​
(d)             Entire Agreement. This Agreement, any related Performance-Based Restricted Stock Unit Award Notice, the Plan and the Employment Agreement constitute the entire contract between the parties hereto with regard to the subject matter hereof and supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.
​
(e)              Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
​
(f)              Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Grantee, the Grantee’s personal representatives, heirs, legatees and other permitted Transferees, assigns and the legal representatives, heirs and legatees of the Grantee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.
​
(g)             Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.
​
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​
6.           DEFINITIONS.
​
(a)              “Code” shall mean the Internal Revenue Code of 1986, as amended and as the same may be amended from time to time, and the regulations promulgated thereunder.
​
(b)             “Company” shall mean Magellan Health, Inc., a Delaware corporation, and any successor thereto.
​
(c)              “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and as the same may be amended from time to time, and any successor statute, and the rules and regulations promulgated thereunder.
​
(d)             “Securities Act” shall mean the Securities Act of 1933, as amended and as the same may be amended from time to time, and any successor statute, and the rules and regulations promulgated thereunder.
​
(e)              “Share” shall mean a share of Ordinary Common Stock, $0.01 par value per share, of the Company, as the same may generally be exchanged for or changed into any other share of capital stock or other security of the Company or any other company in connection with a transaction referred to in Section 4 above (and in the event of any such successive exchange or change, any security resulting from any such successive exchange or change).
​
(f)              “Transfer” shall mean, with respect to any Performance-Based Restricted Stock Unit or any Unit Share, any sale, assignment, transfer, alienation, conveyance, gift, bequest by will or under intestacy laws, pledge, lien encumbrance or other disposition, with or without consideration, of all or part of such Performance-Based Restricted Stock Unit or any Unit Share, or of any beneficial interest therein, now or hereafter owned by the Grantee, including by execution, attachments, levy or similar process.
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In consideration of the foregoing and intending to be legally bound hereby, the Company and the Grantee named below have executed this Agreement as of the date first above written.
​
	​

	​

	​

	​
	MAGELLAN HEALTH, INC.

	​
	​

	​
	​

	​
	Name: Kenneth J. Fasola

	​
	Title:   Chief Executive Officer

	​
	​

	GRANTEE:
	​

	​
	​

	​
	​

	​
	​

	​
	​

	Name: David Bourdon
	​

	​
	​

	Date:
	​
	​

	​
	​

	Address for Notice:
	​

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EXHIBIT B
RESTRICTED STOCK UNIT AGREEMENT
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​
​
MAGELLAN HEALTH, INC.
2016 MANAGEMENT INCENTIVE PLAN 
NOTICE OF RESTRICTED STOCK UNIT AWARD 
(REFERENCE NO. 2016-[GRANT DATE], 2020)
Name of Grantee:             David Bourdon
Date of Grant:                   [GRANT DATE], 2020
Type of Award:                Restricted Stock Units, each Restricted Stock Unit representing the right to receive on the terms and conditions of the Restricted Stock Unit Agreement between Grantee and the Company referenced below and the terms and conditions of this notice a share of Ordinary Common Stock, par value $0.01 per share (“Share”), of Magellan Health, Inc. (the “Company”), subject to adjustment thereto as provided in such Restricted Stock Unit Agreement (a “Unit Share”), or at the election of the Company a cash payment in lieu thereof.
Total Number of   _____________Restricted Stock Units.
Restricted Stock Units 
Awarded:
Vesting:                             This Award shall vest in accordance with the vesting schedule set forth below, provided that the Grantee’s Service with the Company, a Subsidiary or a Parent company has not terminated prior to the vesting date. In the event Grantee’s employment is terminated prior to vesting of the Award for any reason other than as provided below with regard to certain terminations following a Change in Control of the Company, the Award granted hereunder shall immediately be forfeited by and canceled, except as otherwise provided in the Company’s “Retirement Policy Applicable to Employee Long-Term Incentive Awards” or otherwise provided in any employment agreement between the Grantee and the Company in effect at the date of termination of employment.
​
​
	​

	​

	Vesting Date
	Vesting Percentage

	1st anniversary of the Date of Grant ([GRANT DATE], 2021)
	33.4%

	2nd anniversary of the Date of Grant ([GRANT DATE], 2022)
	66.7%
(i.e., an additional 33.3%)

	3rd anniversary of the Date of Grant ([GRANT DATE], 2023)
	100%
(i.e., an additional 33.3%)

​
This Restricted Stock Unit shall earlier vest immediately with respect to 100% of the Unit Shares subject hereto in the event, after the date hereof, a Change in Control of the Company (as defined below) shall have occurred and within the period of eighteen months (or such other period as is provided by Grantee’s employment agreement, if any, in effect at the time of the Change in Control) following occurrence of the Change in Control, Grantee’s Service with the Company shall be terminated by the Company without Cause (as defined below) or by the Grantee with Good Reason (as defined below), provided that the Grantee’s Service with the Company has not previously 

44

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terminated after the date hereof for any other reason. For purposes of this Restricted Stock Unit, the terms “Change in Control,” “Cause” and “Good Reason” shall have the same meanings as provided in any employment agreement between the Company and Grantee in effect at the time of the Change in Control (including any terms of substantially comparable significance in any such employment agreement even if not of identical wording) or, if no such employment agreement is in effect at such time or no such meanings are provided in such employment agreement, shall have the meanings ascribed thereto below:
	​

	
(1)

A “Change in Control” of the Company shall mean the first to occur after the date hereof of any of the following events:

​

a.

any “person,” as such term is used in Sections 3(a)(9) and 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), becomes a “beneficial owner,” as such term is used in Rule 13d-3 promulgated under the Exchange Act, of greater than 50% of the Voting Stock (as defined below) of the Company;

​

b.

the majority of the Board of Directors of the Company consists of individuals other than “Continuing Directors,” which shall mean the members of the Board on the date hereof, provided that any person becoming a director subsequent to the date hereof whose election or nomination for election was supported by a vote of the directors who then comprised the Continuing Directors, shall be considered to be a Continuing Director;

c.

the Board of Directors of the Company adopts and, if required by law or the certificate of incorporation of the Company, the shareholders approve the dissolution of the Company or a plan of liquidation or comparable plan providing for the disposition of all or substantially all of the Company’s assets;

​

d.

at least 75% of the consolidated assets of the Company (measured using a quantitative analysis determined in good faith by the Board) are disposed of in a single transaction pursuant to a merger, consolidation, share exchange, reorganization or other transaction unless the shareholders of the Company immediately prior to such merger, consolidation, share exchange, reorganization or other transaction beneficially own, directly or indirectly, in substantially the same proportion as they previously owned the Voting Stock or other ownership interests of the Company, 51% or more of the Voting Stock or other ownership interests of the entity or entities, if any, that succeed to the business of the Company; or

​

e.

the Company merges or combines with another company and, immediately after the merger or combination, the shareholders of the Company immediately prior to the merger or combination own, directly or indirectly, 50% or less of the Voting Stock of the successor company, provided that in making such determination

there shall being excluded from the number of shares of Voting Stock held by such shareholders, but not from the Voting Stock of

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the successor company, any shares owned by Affiliates of such other company who were not also Affiliates of the Company prior to such merger or combination.
​
	
(2)
“Cause” shall mean:

​
a.Grantee is convicted of (or pleads guilty or nolo contendere to) a felony or a crime involving moral turpitude;
​
b.Grantee’s commission of an act of fraud or dishonesty involving his or her duties on behalf of the Company;
​
c.Grantee’s willful failure or refusal to faithfully and diligently perform duties lawfully assigned to Grantee as an officer or employee of the Company or other willful breach of any material term of any employment agreement at the time in effect between the Company and Grantee; or
​

d.Grantee’s willful failure or refusal to abide by the Company’s policies, rules, procedures or directives, including any material violation of the Company’s Code of Ethics.

​
	​
a material reduction in Grantee’s salary in effect at the time of a Change in Control, unless such reduction is comparable in degree to the reduction that takes place for all other employees of the Company of comparable rank (for which purpose any person who is an executive officer of the Company (as determined for purposes of the Exchange Act) shall be considered of comparable rank) or a material reduction in Grantee’s target bonus opportunity for the year in which or any year after the year in which the Change in Control occurs from Grantee’s target bonus opportunity for the year in which the Change in Control occurs (if any) as established under any employment agreement Grantee has with the Company or any bonus plan of the Company applicable to Grantee (or, if no such target bonus opportunity has yet been established for Grantee under a bonus plan applicable to Grantee for the year in which the Change in Control has occurred, the target bonus opportunity so established for Grantee for the immediately preceding year (if any)). For purposes of this provision, an action or actions of the Company will be deemed "material" if, individually or in the aggregate, the action or actions result(s) or potentially result(s) in a reduction in compensation in the current year or a future year having a present value to Grantee of at least one and one half percent (1.5%) of Grantee’s then current base salary, provided that Grantee will have a legal right to claim damages for a breach of contract for any action by the Company or event having an effect described under those paragraphs that does not meet this objective materiality test, and actions may be material in a given case at levels less than the specified level.
​

	
(3)

“Good Reason” shall mean:

​

a.

a material reduction in Grantee’s salary in effect at the time of a Change in Control, unless such reduction is comparable in degree to the reduction that takes place for all other employees of the Company of comparable rank (for which purpose any person who is an executive officer of the Company (as determined for purposes of the Exchange Act) shall be considered of comparable rank) or a material reduction in Grantee’s target bonus opportunity for the year in which or any year after the year in which the Change in Control occurs from Grantee’s target bonus opportunity for the year in which the Change in Control occurs (if any) as established under any employment agreement Grantee has with the Company or any bonus plan of the Company applicable to Grantee (or, if no such target bonus opportunity has yet been established for Grantee under a bonus plan applicable to Grantee for the year in which the Change in Control has occurred, the target bonus opportunity so established for Grantee for the immediately preceding year (if any)). For purposes of this provision, an action or actions of the Company will be deemed "material" if, individually or in the aggregate, the action or actions result(s) or potentially result(s) in a reduction in compensation in the current year or a future year having a present value to Grantee of at least one and one half percent (1.5%) of Grantee’s then current base salary, provided that Grantee will have a legal right to claim damages for a breach of contract for any action by the Company or event having an effect described under those paragraphs that does not meet this objective materiality test, and actions may be material in a given case at levels less than the specified level.

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b.          a material diminution in Grantee’s position, duties or responsibilities as in effect at the time of a Change in Control or the assignment to Grantee of duties which are materially inconsistent with such position, duties and authority, unless in either case such change is made with the consent of the Grantee; or
​
c.           the relocation by more than 50 miles of the offices of the Company which constitute at the time of the Change in Control Grantee’s principal location for the performance of his or her services to the Company;
​
	​

	​

	​
	provided that, in each such case, Grantee provides notice to the Company within 90 days that such event or condition constituting Good Reason has arisen, and such event or condition continues uncured for a period of more than 30 days after Grantee gives notice thereof to the Company, and Grantee terminates Service within eighteen months after such event or condition has arisen.

	​
	For purposes of the foregoing definitions, (A) “the Company” shall include any entity that succeeds to all or substantially all of the business of the Company, (B) “Affiliate” of a person or other entity shall mean a person or other entity that directly or indirectly controls, is controlled by, or is under common control with the person or other entity specified, and (C) “Voting Stock” shall mean any capital stock of any class or classes having general voting power under ordinary circumstances, in the absence of contingencies, to elect the directors of a corporation and reference to a percentage of Voting Stock shall refer to such percentage of the votes that all such Voting Stock is entitled to cast.

	Settlement of Award:
	Unit Shares in settlement of this Award (or, at the Company’s election, cash in lieu thereof) shall be delivered to Grantee on the Vesting Date (such date, the “Settlement Date”) as further provided in Grantee’s Restricted Stock Unit Agreement with the Company.

	Dividend Equivalent Rights:
	NONE.

	Transfer Restrictions:
	Unit Shares issued in settlement of this Award shall not be subject to any additional transfer restrictions, other than those provided by Grantee’s Restricted Stock Unit
Agreement.

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By signing your name below, you acknowledge and agree that this Award is governed by the terms and conditions of the Magellan Health, Inc. 2016 Management Incentive Plan (“Plan”), or a predecessor plan, and the Restricted Stock Unit Agreement, reference number 2016-[GRANT DATE], 2020 (“Agreement”), both of which are hereby made a part of this document. Capitalized terms used but not defined in this Notice of Restricted Stock Unit Award shall have the meanings assigned to them in the Plan and Agreement.
​
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	​
	MAGELLAN HEALTH, INC.

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	​

	​
	​

	​
	​
	​

	
	​
	Name: Kenneth J. Fasola

	​
	Title: Chief Executive Officer

	​
	​

	​
	​

	GRANTEE:
	​

	​
	​

	​
	​

	​
	​
	​

	Name: David Bourdon
	​

	​
	​
	​

	Date
	​

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MAGELLAN HEALTH, INC.
2016 MANAGEMENT INCENTIVE PLAN 
RESTRICTED STOCK UNIT AGREEMENT
REFERENCE NUMBER: 2016- [GRANT DATE], 2020 – David Bourdon
As of [GRANT DATE], 2020
1.           GRANT OF RESTRICTED STOCK UNITS.
​
(a)             Restricted Stock Units. On the terms and conditions set forth in this Restricted Stock Unit Agreement (the “Agreement”) and each Notice of Restricted Stock Unit Award referencing this Agreement, Magellan Health, Inc. (the “Company,” as further defined below) grants to the Grantee referred to on the signature page hereof the right to receive on the Settlement Date (as hereinafter defined) the number of shares of Ordinary Common Stock,
$0.01 par value per share, of the Company (“Shares,” as further defined below) equal to the number of “Stock Units” awarded to the Grantee as set forth in the Notice of Restricted Stock Unit Award, subject to adjustment thereto on account of any change that may be made in the Shares as provided by Section 4 below (the “Unit Shares”). Each such Notice of Restricted Stock Unit Award, together with this referenced Agreement, shall be a separate “Restricted Stock Unit” governed by the terms of this Agreement and any such separate Restricted Stock Unit may be referred to herein as the “Restricted Stock Unit,” and, as pertinent, any of multiple Notices of Restricted Stock Unit Award referencing this Agreement may be referred to herein as the “Restricted Stock Unit Award Notice.”
​
(b)             2016 Management Incentive Plan and Defined Terms. The Restricted Stock Unit Award is granted under and subject to the terms of the 2016 Management Incentive Plan, or a predecessor plan, as amended and supplemented from time to time (the “Plan”), which is incorporated herein by this reference. Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Plan or Restricted Stock Unit Award Notice.
​
(c)              Scope of this Agreement. This Agreement shall apply both to the Restricted Stock Unit and to any Unit Shares acquired upon the settlement of the Restricted Stock Units. This Agreement references the terms of the Non-Competition, Non-Solicitation, and Confidentiality Agreement previously executed by Grantee and the Company or a Related Employer (as defined in Plan Section 12(a)(i)) and/or any similar agreement that legally binds Grantee not to compete with or not to solicit employees or customers of the Company or any Related Employer and related covenants (any or all of the foregoing being the “Non-Compete Agreement”).
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2.           VESTING AND SETTLEMENT OF RESTRICTED STOCK UNITS.
​
(a)             Vesting. The Restricted Stock Unit shall vest in whole or in part on the date or dates provided by the Notice of Restricted Stock Unit Award, provided that Grantee remains in the Service of the Company or a Related Employer company at such date; it being understood that the Notice of Restricted Stock Unit Award may provide that the Restricted Stock Unit shall vest upon termination of Grantee’s Service in such circumstances as are provided in the Notice of Restricted Stock Unit Award (subject to Section 2(d) below).
​
(b)             Settlement in Shares. Subject to following provisions of this Section 2, the Company shall settle the Restricted Stock Unit, to the extent it has vested, on the date on which the Restricted Stock Unit has vested (or, if such date is not a Business Day, the preceding Business Day) by the delivery to Grantee of the number of Unit Shares equal to the number of Restricted Stock Units so vested. The date on which a Restricted Stock Unit is to be settled is herein referred to as the “Settlement Date.” Subject to Section 2(b) below, in settlement of the Restricted Stock Unit, the Company shall cause to be issued on the Settlement Date or as soon as practicable thereafter (but not more than five business days) an appropriate certificate or certificates for the Unit Shares, registered in the name of the Grantee (or, at the direction of the Grantee, in the names of such person and his or her spouse as community property or as joint tenants with right of survivorship or as tenants in the entirety); provided, however, that such Unit Shares shall be subject to such restrictions on transfer or other restrictions as are provided by the Restricted Stock Unit Award Notice and the certificates so issued may bear a legend reflecting such restrictions and any restrictions applicable in accordance with Sections 2(g) and 3(c) below.
​
(c)              Alternative Settlement in Cash. In lieu of settlement of the Restricted Stock Unit in Unit Shares, the Committee may in its sole discretion elect to settle all or a portion of the Restricted Stock Unit by a cash payment equal to the Fair Market Value as of the Settlement Date of the Unit Shares that would otherwise have been issued under this Agreement. Such payment may be made by good check of the Company issued in accordance with its normal payroll practices or such other means as are acceptable to the Company
​
(d)             Withholding Requirements. The Company may withhold any tax (or other governmental obligation) the Company is required to withhold as a result of the grant of the Restricted Stock Unit and/or the issuance of Unit Shares (or cash in lieu of Unit Shares) in settlement of a Restricted Stock Unit and, as a condition to the grant of the Restricted Stock Unit or issuance of the Unit Shares in settlement thereof, the Grantee shall make arrangements satisfactory to the Company to enable it to satisfy all such withholding requirements.
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(e)              Injurious Conduct.
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(i)         In the event that the Grantee has engaged in Injurious Conduct (as defined in Section 2(e)(ii)(A) below) during Grantee’s Service or during the Restricted Period (as defined in Section 2(e)(ii)(B) below) following termination of Grantee’s Service, then the following forfeitures and related terms will apply to the Award and the Unit Shares and related benefits (including Dividend
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Equivalents and/or dividends), as authorized by Plan Section 12 and other applicable provisions of the Plan:
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(A)       No Unit Shares shall be issued to Grantee in connection with the settlement of the Award after such determination (even if the Award is fully vested) nor shall any other benefit thereafter accrue to the Grantee under this Agreement (including by reason of the lapse of any restriction on transfer or other restriction then applicable to Unit Shares that have been issued).
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(B)         The unsettled Award shall be forfeited and shall terminate and any Unit Shares subject to any such restrictions shall be forfeited.
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(C)         As authorized by the Plan (including Sections 12(a) and (b)), any benefits realized by Grantee as a result of the Award, if the Award vested during the three-year period prior to the time such Injurious Conduct occurred (or, if longer than three years, the period equal to the Restricted Period), including benefits resulting from the lapse of any restrictions on Shares issued as a result thereof and Dividend Equivalents relating to the Award and dividends relating to the such Shares, shall be forfeited by Grantee and Grantee shall pay over to the Company any Shares received by Grantee in connection with the Award, if still owned by Grantee, or the cash value of such Shares (such value to be measured as of the date of the cash payment by Grantee hereunder), together with any cash amount received by Grantee as related Award benefits (without discount or interest; for clarity, taxes previously withheld will be deemed to have been received by Grantee).
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(ii)      The forfeitures and related terms of Section 2(e)(i) are subject to the following:
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(A)       For purposes of this Agreement, “Injurious Conduct” means an event as specified in Plan Section 12(a)(i) or a violation by Grantee of any material provision of Grantee’s Non-Compete Agreement with the Company or any Related Company or, if Grantee has no Non-Compete Agreement, an event as specified in Plan Section 12(a)(ii).
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(B)       For purposes of this Agreement, the “Restricted Period” means the length of the period during which Grantee remains bound by non-competition and/or non-solicitation covenants following termination of Grantee’s Service under Grantee’s Non-Compete Agreement, except that, if Grantee is not bound by a Non-Compete Agreement, the Restricted Period will be one year.
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(C)       The terms of this Section 2 are intended to modify and supersede certain
terms of Plan Section 12, including modifying the definition of “Injurious Conduct” and modifying the post-termination periods in which forfeitures
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may occur and during which (under Plan Section 12(c)) the Committee shall determine whether Injurious Conduct has occurred and any resulting forfeitures, and therefore the terms of this Section 2 control to the extent the terms differ from Plan Section 12. The forfeitures or related terms of this Section 2 may be waived or limited by the terms of any agreement executed by the Company with the approval of the Committee.
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(D)       In the case of Section 2(e)(i)(A) and (B), such forfeitures and related terms will not apply to the Award if the settlement of the Award has been deferred at the election of the Grantee and if the Award was fully vested for a period of at least three years or, if longer, a period at least equal to the Restricted Period before the date such Injurious Conduct occurred; in such case, the Company is not excused from settling, completing delivery of or removing any legend restricting the transfer of the Award or Shares and any related Dividend Equivalent Rights or dividends.
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(E)       Any forfeitures hereunder, based on the Committee’s determination that Grantee has engaged in Injurious Conduct during Grantee’s Service or during the Restricted Period, and the terms of this Section 2 shall not relieve Grantee of any other liability s/he may have to the Company or a Related Employer as a result of engaging in the Injurious Conduct, including any right of the Company or any Related Employer to injunctive or other equitable relief.
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(f)              Transfer Restrictions On Unit Shares. Subject to Section 2(d) above and Sections 2(g) and 3(c) below, unless otherwise provided by the Restricted Stock Unit Award Notice or another agreement between Grantee and the Company, upon the acquisition of Unit Shares pursuant to the settlement of a Restricted Stock Unit Award, Grantee shall be free to dispose of the Unit Shares so acquired in any manner and at any time.
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(g)             Securities Law Restrictions On Issuance of Unit Shares. Unless a registration statement under the Securities Act permitting the sale and delivery of Unit Shares upon settlement of the Restricted Stock Unit Award is in effect on the Settlement Date, the Company shall not be required to issue Unit Shares upon such settlement, except as otherwise provided in this subsection. The Company shall use its commercially reasonable efforts to register under the Securities Act sufficient Unit Shares to permit delivery to Grantee of all Unit Shares that may be acquired by Grantee upon the settlement of the Restricted Stock Unit Award; provided, however, that the Company shall only be so required to register the Unit Shares on Form S-8 under the Securities Act (or any successor form). Notwithstanding the foregoing, the Company shall, if Grantee has given the Company at least 90 days’ notice requesting the Company to register in accordance with the foregoing provisions of this subsection the Unit Shares that may then be acquired by Grantee upon settlement of the Restricted Stock Unit Award and the Company has failed to do so, issue Unit Shares to Grantee upon settlement of the Restricted Stock Unit Award without registration thereof under the Securities Act if (i) Grantee represents, effective on the date of such issuance, in writing in a form acceptable to the Company (A) that such Unit Shares are being acquired for investment and not with a present view to distribution, (B) Grantee understands that the Unit
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Shares have not been registered under the Securities Act and cannot be sold or otherwise Transferred unless a registration statement under the Securities Act is in effect with respect thereto or the Company has received an opinion of counsel, satisfactory to it, to the effect that such registration is not required, (C) that Grantee has, alone or together with any qualified advisor, such knowledge and experience in financial and business matters as is necessary to evaluate the risks of an investment in the Unit Shares, is acquiring the Unit Shares based on an independent evaluation of the long-term prospects of an investment in the Unit Shares and has been furnished with such financial and other information regarding the Company as the Grantee has requested for purposes of making such evaluation, and (D) Grantee is able to bear the economic risk of an investment in the Unit Shares subject to such restrictions on Transfer and (ii) if the Company determines that under the circumstances issuing the Unit Shares pursuant to such settlement of the Restricted Stock Unit Award is lawful; provided, however, that the Company may require, as a condition of such issuance of Unit Shares, that Grantee execute and deliver to it such other certificates, agreements and other instruments as in the judgment of the Company, upon advice of counsel, are necessary or appropriate to assure that the Unit Shares are issued to Grantee in accordance with the Securities Act and any other applicable securities law and may require that any certificates representing Unit Shares so issued bear any restrictive legend appropriate for such purpose. In addition, even if a registration statement under the Securities Act permitting the delivery of Unit Shares upon settlement of the Restricted Stock Unit Award is in effect at the Settlement Date, the Company may suspend the issuance of Unit Shares pursuant to the settlement of all Restricted Stock Unit Awards issued under the Plan for such period of time as in the judgment of the Company, upon advice of counsel, is necessary in order for the Company to come into compliance with all the reporting requirements applicable to the Company pursuant to Section 13(a) of the Exchange Act or to otherwise avoid in connection with the issuance of the Unit Shares under such registration statement a violation of Sections 10, 11 or 12 of the Securities Act. If the Company suspends the issuance of Unit Shares pursuant to the settlement of Restricted Stock Unit Awards issued under the Plan, the Company shall give prompt written notice thereof to the Grantee (but the failure of the Company to give such notice shall not prevent the Company from suspending the issuance of Unit Shares as permitted hereby) and, at such time as such period of suspension ends, shall give prompt written notice thereof to Grantee. Notwithstanding that the Company in accordance with this subsection may not be able to issue Unit Shares in settlement of a Restricted Stock Unit, the Company shall not be required to settle a Restricted Stock Unit in cash, but may do so if it elects in its discretion to do so, as provided by Section 2(c) above.
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(h)             Special Distribution Rules to Comply with Code Section 409A. In the event that any Restricted Stock Units constitute a “deferral of compensation” under Section 409A of the Internal Revenue Code (the “Code”), the timing of settlement of such Restricted Stock Units (hereinafter defined as “409A RSUs” will be subject to applicable limitations under Code Section 409A and Section 19(a) of the Plan, including the following restrictions on settlement:
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(i)         The “six-month delay rule.” The six-month delay rule will apply to 409A RSUs if these four conditions are met:
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(A)       The Grantee has a “separation from service” (within the meaning of Treasury Regulation § 1.409A-1(h));
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(B)       A distribution of Shares is triggered by the separation from service (but not due to death);
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(C)       The Grantee is a “key employee” (as defined in Code Section 416(i) without regard to paragraph (5) thereof). The Company will determine status of “key employees” annually, under administrative procedures applicable to all plans and arrangements subject to Code Section 409A; and
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(D)       The Company’s stock is publicly traded on an established securities market or otherwise.
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If it applies, the six-month delay rule will delay a distribution in settlement of 409A RSUs triggered by the Grantee’s separation from service where the distribution otherwise would be within six months after the separation.
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(a)  Any delayed payment shall be made on the date six months after the Grantee’s separation from service.
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(b)  During the six-month delay period, accelerated distribution will be permitted in the event of the Grantee’s death and for no other reason (including no acceleration upon a Change in Control), except for the limited exceptions permitted under the Code Section 409A regulations.
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(c)  Any payment that is not triggered by a separation from service, or triggered by a separation from service but which would be made more than six months after separation (without applying this six-month delay rule), shall be unaffected by the six-month delay rule. Each payment in a series of installments would be treated as a separate payment for this purpose. If the terms of a 409A RSU agreement impose this six-month delay rule in circumstances in which it is not required for compliance with 409A, those terms shall not be given effect.
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(ii)        Change in Control Rule.
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a.  If any distribution of 409A RSUs would be triggered by a Change in Control, such distribution will be made only if, in connection with the Change in Control, there occurs a change in the ownership of the Company, a change in effective control of the Company, or a change in the ownership of a substantial portion of the assets of the Company as defined in Treasury Regulation § 1.409A-3(i)(5) (a "409A Change in Control").
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b.  In this case, distribution of the 409A RSUs shall occur not later than five business days after (i) the occurrence of a 409A Change in Control
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occurring at the time of or following the Change in Control or (ii) upon occurrence of the Change in Control occurring within 90 days after the 409A Change in Control, but only if the occurrence of the Change in Control is non-discretionary and objectively determinable at the time of the 409A Change in Control (in this case, the Grantee shall have no influence on when during such 90-day period the settlement shall occur).
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c.  Upon a Change in Control during the six-month delay period, no accelerated distribution applies (even if the events involve a 409A Change in Control) to a distribution delayed by application of the six- month delay rule.
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(iii)       Separation from Service.
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(A)       Any distribution in settlement of 409A RSUs that is triggered by a termination of employment will occur only at such time as the participant has had a “separation from service” within the meaning of Treasury Regulation § 1.409A-1(h), regardless of whether any other event might be viewed as a termination of employment by the Company for any other purpose.
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(B)       In particular, if a grantee switches to part-time employment or becomes a consultant in connection with a termination of employment, whether the event will be deemed a termination of employment for purposes of 409A RSUs will be determined in accordance with Treasury Regulation § 1.409A-1(h).
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(iv)       Other Restrictions.
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(A)       The settlement of 409A RSUs may not be accelerated by the Company except to the extent permitted under Code Section 409A.
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(B)       Any restriction imposed on RSUs under these 409A Compliance Rules or imposed on RSUs under the terms of other documents solely to ensure compliance with Code Section 409A shall not be applied to RSUs that are not 409A RSUs except to the extent necessary to preserve the status of such RSUs as not 409A RSUs. If any mandatory term required for 409A RSUs or non-409A RSUs to avoid tax penalties under Code Section 409A is not otherwise explicitly provided under this document or other applicable documents, such term is hereby incorporated by reference and fully applicable as though set forth at length herein, and
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(v)        Any other applicable provisions of Plan Section 19(a) will apply to such Restricted Stock Units.
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3.           TRANSFER OF RESTRICTED STOCK UNIT AWARD OR UNIT SHARES
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(a)             Transfers Generally Prohibited. Except as otherwise provided by the Restricted Stock Unit Award Notice or otherwise permitted by the Plan or in the case of a transfer permitted by Section 3(b) below, the Restricted Stock Unit Award may be settled only during the Grantee’s lifetime and only by the issuance of Unit Shares (or a cash payment in lieu thereof where permitted by the Restricted Stock Unit Award Notice) to Grantee. Except as otherwise provided in Section 3(b) below, the Restricted Stock Unit Award and the rights and privileges conferred by the Restricted Stock Unit Award shall not be sold or otherwise Transferred.
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(b)             Certain Transfers Permitted. Notwithstanding the foregoing provisions of this Section 3, the Restricted Stock Unit Award may be Transferred (i) in the event of the Grantee’s death, by will or the laws of descent and distribution or by a written beneficiary designation accepted by the Company, (ii) by operation of law in connection with a merger, consolidation, recapitalization, reclassification or exchange of Shares, reorganization or similar transaction involving the Company and affecting the Shares generally or (iii) with the approval of the Committee, to a member of Grantee’s family, or a trust primarily for the benefit of Grantee and/or one or more members of Grantee’s family, or to a corporation, partnership or other entity primarily for the benefit of Grantee and/or one or more such family members and/or trusts or (iv) with the approval of the Committee, in another estate or personal financial planning transaction; provided, however, that in any such case the Restricted Stock Unit Award so Transferred and, upon issuance of Unit Shares in settlement thereof, the Unit Shares issued to the Transferee shall remain subject in the hands of the Transferee to the restrictions on Transfer provided hereby and all other terms hereof, including the terms of Section 2(c) above. The foregoing notwithstanding, if RSUs constitute deferrals of compensation for purposes of Code Section 409A, RSUs and any related right of Grantee shall not be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Grantee or his or her beneficiary, except as permitted under Code Section 409A and regulations and guidance thereunder.
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(c)              Fiduciary, Securities Law and Officer Restrictions. As an employee, officer and/or director of the Company, Grantee may be subject to restrictions on his or her ability to sell or otherwise Transfer Unit Shares by reason of being a fiduciary for the Company or by reason of federal or state securities laws and/or the policies regarding transactions in securities of the Company from time to time adopted by the Company and applicable to Grantee in connection therewith. Nothing contained herein shall relieve Grantee of any restriction on sale or other Transfer of Unit Shares provided thereby and any other restrictions of sale or other Transfer of Unit Shares provided herein (including in a Restricted Stock Unit Award Notice or in the Plan) shall be in addition to and not in lieu of any other restrictions provided thereby. Pursuant to the Company’s Equity Ownership Policy currently in effect and as may be amended from time to time, certain officers of the Company are currently, or may in the future be, subject to restrictions on sales or transfers of Unit Shares and other equity rights issued by the Company. If Grantee is at any time subject to such Equity Ownership Policy, sale or transfer of Grantees’ Unit Shares shall be restricted as provided in such Equity Ownership Policy.
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4.           ADJUSTMENT OF SHARES.
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(a)             Adjustment Generally. If while the Restricted Stock Unit remains in effect there shall be any change in the outstanding Shares of the class which are to be issued upon settlement of the Restricted Stock Unit, through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, reverse stock split, combination of shares, exchange of shares for other securities or other like change in the outstanding Shares, or any spin-off, split-off, dividend in kind or other extraordinary dividend or other distribution in respect of such outstanding Shares or other extraordinary change in the capital structure of the Company, an adjustment shall be made to the terms of the Restricted Stock Unit so that the Restricted Stock Unit shall thereafter be ultimately settled, otherwise on the same terms and conditions as provided by the Restricted Stock Unit Award Notice, this Agreement and the Plan, for such securities, cash and/or other property as would have been received in respect of the Shares that would have been issued upon settlement of the Restricted Stock Unit had the Restricted Stock Unit been settled in full immediately prior to such change or distribution (whether or not the Restricted Stock Unit was then fully vested) or, if and to the extent the Committee determines that so adjusting the consideration to be received upon settlement of the Restricted Stock Unit, in whole or in part, is not practicable, the Committee shall equitably modify the consideration to be received in respect of the settlement of the Restricted Stock Unit or other pertinent terms and conditions of the Restricted Stock Unit as provided by Section 4(b) below. Such an adjustment shall be made successively each time any such change in the outstanding Shares of the class which may be received upon settlement of the Restricted Stock Unit or extraordinary distribution in respect of such outstanding Shares or extraordinary change in the capital structure of the Company shall occur.
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(b)             Modification of Restricted Stock Unit. In the event any change in the outstanding Shares of the class which may be received upon settlement of the Restricted Stock Unit or extraordinary distribution in respect of such outstanding Shares or extraordinary change in the capital structure of the Company described in Section 4(a) above occurs, or in the event of any change in applicable laws or any change in circumstances which results in or would result in any substantial dilution or enlargement of the rights granted to, or available for, Grantee in respect of a Restricted Stock Unit or otherwise as a participant in the Plan or which otherwise warrants equitable adjustment to the terms and conditions of the Restricted Stock Unit because such event or circumstances interferes with the intended operation of the Plan (including the intended tax consequences of Awards) occurs, then the Committee shall adjust the number and kind of Unit Shares and/or other securities and/or cash or other property that may be issued or delivered upon the settlement of the Restricted Stock Unit and/or adjust the other terms and conditions of the Restricted Stock Unit as the Committee in its discretion determines to be equitable in order to prevent dilution or enlargement of the Grantee’s rights in respect of the Restricted Stock Unit as such existed before such event. Appropriate adjustments shall likewise be made by the Committee in other terms and conditions of the Restricted Stock Unit to reflect equitably such changes in circumstances, including modifications of performance targets and changes in the length of performance periods relating to the vesting of the Restricted Stock Unit or any restrictions on Unit Shares. Notwithstanding the foregoing, no adjustment shall be made which is prohibited by Section 13 of the Plan.
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(c)              Modifications To Comply With Section 409A. To the extent applicable, this Agreement (including any related Notice of Restricted Stock Award) shall be interpreted in accordance with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder, including without limitation any such regulations or guidance that may be issued after the date on which a Restricted Stock Unit was awarded. Without limiting the authority of the Committee under Section 4(b) above to make modifications to the Restricted Stock Unit by reason of changes in law or circumstances that would result in any substantial dilution or enlargement of the rights granted to, or available for, Grantee in respect of a Restricted Stock Unit or otherwise as a participant in the Plan or which otherwise warrants equitable adjustment to the terms and conditions of the Restricted Stock Unit because such event interferes with the operation of the Plan, and notwithstanding any provision of this Agreement to the contrary, in the event that the Committee or an authorized officer of the Company determines that any amounts will be immediately taxable to the Participant under Section 409A of the Code and related Department of Treasury guidance (or subject the Grantee to a penalty tax) in connection with the grant or vesting of the Restricted Stock Unit or any other provision of the Restricted Stock Unit Award Notice or this Agreement or the Plan, the Company may (a) adopt such amendments to the Restricted Stock Unit, including amendments to this Agreement (having prospective or retroactive effect), that the Committee or authorized officer determines to be necessary or appropriate to preserve the intended tax treatment of the Restricted Stock Unit and/or (b) take such other actions as the Committee or authorized officer determines to be necessary or appropriate to comply with the requirements of Section 409A of the Code and related Department of Treasury guidance, including such Department of Treasury guidance and other interpretive materials as may be issued after the date on which such Restricted Stock Unit was awarded, but only to the extent permitted under Code Section 409A and regulations and guidance thereunder.           .
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5.           MISCELLANEOUS PROVISIONS.
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(a)             Rights as a Shareholder. Neither the Grantee nor the Grantee’s personal representative or permitted Transferee shall have any rights as a shareholder with respect to any Unit Shares until the Grantee or his or her personal representative or permitted Transferee becomes entitled to receive such Unit Shares pursuant to this Agreement, the Plan and the applicable Restricted Stock Unit Award Notice, and any such right shall also be subject to Sections 2(g) and 3(c) above.
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(b)             Tenure. Nothing in the Restricted Stock Unit Award Notice, this Agreement or in the Plan shall confer upon the Grantee any right to continue in the Company’s Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Related Employer) or of the Grantee, which rights are hereby expressly reserved by each, to terminate his or her Service at any time and for any reason, with or without cause.
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(c)              Notification. Any notification required by the terms of this Agreement shall be given in writing and shall be deemed effective upon personal delivery to the Treasurer, General Counsel, Secretary or any Assistant Secretary of the Company or five Business Days upon deposit with the United States Postal Service, by registered or certified mail, with
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postage and fees prepaid addressed to the Company. A notice shall be addressed to the Company at its principal executive office, marked to the attention of the Corporate Secretary, and to the Grantee at the address that s/he most recently provided to the Company.
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(d)             Entire Agreement. This Agreement, any related Restricted Stock Unit Award Notice and the Plan constitute the entire contract between the parties hereto with regard to the subject matter hereof and supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter hereof.
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(e)              Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition whether of like or different nature.
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(f)              Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon the Grantee, the Grantee’s personal representatives, heirs, legatees and other permitted Transferees, assigns and the legal representatives, heirs and legatees of the Grantee’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to be joined herein and be bound by the terms hereof.
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(g)             Choice of Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, as such laws are applied to contracts entered into and performed in such State.
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6.           DEFINITIONS.
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(a)             “Code” shall mean the Internal Revenue Code of 1986, as amended and as the same may be amended from time to time, and the regulations promulgated thereunder.
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(b)             “Company” shall mean Magellan Health, Inc., a Delaware corporation, and any successor thereto.
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(c)              “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended and as the same may be amended from time to time, and any successor statute, and the rules and regulations promulgated thereunder.
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(d)             “Securities Act” shall mean the Securities Act of 1933, as amended and as the same may be amended from time to time, and any successor statute, and the rules and regulations promulgated thereunder.
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(e)              “Share” shall mean a share of Ordinary Common Stock, $0.01 par value per share, of the Company, as the same may generally be exchanged for or changed into any other share of capital stock or other security of the Company or any other company in connection with a transaction referred to in Section 4 above (and in the event of any such successive exchange or change, any security resulting from any such successive exchange or change).
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(f)              “Transfer” shall mean, with respect to any Restricted Stock Unit or any Unit Share, any sale, assignment, transfer, alienation, conveyance, gift, bequest by will or under intestacy laws, pledge, lien encumbrance or other disposition, with or without consideration, of all or part of such Restricted Stock Unit or any Unit Share, or of any beneficial interest therein, now or hereafter owned by the Grantee, including by execution, attachments, levy or similar process.
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In consideration of the foregoing and intending to be legally bound hereby, the Company and the Grantee named below have executed this Agreement as of the date first above written.
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	MAGELLAN HEALTH, INC.
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	By: 
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	Name: Kenneth J. Fasola
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	Title: Chief Executive Officer
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	READ AND ACCEPTED BY GRANTEE:
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	Signature – David Bourdon
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	David Bourdon
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	Print Name
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	Address of Grantee:
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EXHIBIT C
Form of Settlement Agreement and General Release
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This letter agreement (the “Letter”) outlines the terms of your separation of employment with Magellan Health, Inc. (the “Company”), effective the close of business on
. In connection with your termination, this Letter will confirm the payments and entitlements due to you pursuant to the Employment Agreement between you and the Company, dated as of _                              , 2020 (“Employment Agreement”) and these payments and entitlements (other than the Accrued Amounts as defined in the Employment Agreement) are in addition to any payments you would have received if you had not executed this Letter. The terms are as follows:
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I.          As a settlement payment, pursuant to Section of the Employment Agreement the Company shall pay or provide to you [list all payments and entitlements under the Employment Agreement], at the times required in the Employment Agreement or the applicable plan or award agreement.
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II.         The Company and you agree that all payments made hereunder are “wages” for purposes of FICA, FUTA and income tax withholding and such taxes shall be withheld from the payments to be made hereunder. Payments (other than Accrued Amounts) shall be in consideration of both the release of all other claims described below in Paragraph III and your continuing compliance with Sections 7, 8, and 9 of the Employment Agreement. You further agree that you will submit any request for amounts owed as reimbursement for expenses incurred during the course of your employment to            within two (2) weeks of your last day of employment. No other sums (contingent or otherwise) shall be paid to you in respect of your employment by the Company, and any such sums (whether or not owed) are hereby expressly waived by you; provided, however, that you (i) may elect to continue your health insurance coverage, as mandated by COBRA, which may continue to the extent required by applicable law, and (ii) shall be entitled to any vested rights you may have under any employee pension, welfare benefit plan or short or long-term incentive plan and any applicable award agreement of the Company or its subsidiaries or affiliates. Notwithstanding the foregoing, you shall remain entitled to your rights under Sections 6(e)(ii), 12 and 20 of the Employment Agreement.
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III.        As a material inducement to the Company to agree to the terms of this Letter and in consideration of the payments to be made by the Company to you, you agree, with full understanding of the contents and legal effect of this Letter and having the right and opportunity to consult with your counsel, to release and discharge the Company, its shareholders, officers, directors, supervisors, managers, members, employees, agents, representatives, attorneys, parent companies, divisions, subsidiaries and affiliates, and all related entities of any kind or nature, and its and their predecessors, successors, heirs, executors, administrators, and assigns (collectively, the "Released Parties") from any and all claims, actions, causes of action, grievances, suits, charges, or complaints of any kind or nature whatsoever, that you ever had or now have, whether fixed or contingent, liquidated or unliquidated, known or unknown, suspected or unsuspected, and whether arising in tort, contract, statute, or equity, before any federal, state, local, or private court, agency, arbitrator, mediator, or other entity, regardless of the relief or remedy. Without limiting the generality of the foregoing, it being the intention of the parties to make this release as broad
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and as general as the law permits, this release specifically includes any and all claims arising from any alleged violation by the Released Parties under the Age Discrimination in Employment Act of 1967, as amended; the Fair Labor Standards Act, as amended; Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1866, as amended by the Civil Rights Act of 1991 (42 U.S.C. § 1981); the Rehabilitation Act of 1973, as amended; the Employee Retirement Income Security Act of 1974, as amended; the Americans with Disabilities Act, as amended; the Family and Medical Leave Act, as amended; the Equal Pay Act; the Worker Adjustment and Retraining Notification Act; Executive Order 11246; Executive Order 11141; and other federal, state, and local laws similar to any of them and any other statutory claim, employment or other contract or implied contract claim, or common law claim for wrongful discharge, breach of an implied covenant of good faith and fair dealing, defamation, or invasion of privacy arising out of or involving your employment with the Company, the termination of your employment with the Company, or involving any continuing effects of your employment with the Company or termination of employment with the Company; provided, that you do not waive or release (i) any claims with respect to the right to enforce this Letter, or the Employment Agreement with respect to your rights in the Employment Agreement which survive your termination of employment as set forth in Sections 6(f) and 11 of the Employment Agreement and Paragraph II of this Letter; (ii) any rights to indemnification (and advancement of expenses) and/or coverage under any applicable directors’ and officers’ insurance policies as set forth in Section 20 of the Employment Agreement or as otherwise provided under the Company’s or any subsidiary’s or affiliates’ corporate documents or their applicable directors’ and officers’ insurance policies; (iii) your right to receive an award from a Government Agency under its whistleblower program for reporting in good faith a possible violation of law to such Government Agency; (iv) any recovery to which you may be entitled pursuant to applicable workers’ compensation and unemployment insurance laws; (v) your right to challenge the validity of this Agreement under the Age Discrimination in Employment Act, or (vi) any right where a waiver is expressly prohibited by law or any right or claim which arising after the date you execute this Letter. For purposes of this Letter, “Government Agency” means the Equal Employment Opportunity Commission, the National Labor Relations Board, the Occupational Safety and Health Administration, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, or any other self-regulatory organization or any other federal, state or local governmental agency or commission. You further acknowledge that you are aware that statutes exist that render null and void releases and discharges of any claims, rights, demands, liabilities, action and causes of action which are unknown to the releasing or discharging party at the time of execution of the release and discharge. You hereby expressly waive, surrender and agree to forego any protection to which you would otherwise be entitled by virtue of the existence of any such statute in any jurisdiction including, but not limited to, the State of Delaware, with respect to claims released by you herein.
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IV.       For yourself, your heirs, executors, administrators, successors and assigns, you agree not to bring, file, charge, claim, sue or cause, assist, or permit to be brought, filed, charged or claimed any action, cause of action, or proceeding regarding or in any way related to any of the claims released by you in Paragraph III hereof, and further agree that this Letter is, will constitute and may be pleaded as, a bar to any such claim, action, cause of action or proceeding. If any government agency or court assumes jurisdiction of any charge, complaint, or cause of action covered by this Letter, you will not seek and will not accept any personal equitable or monetary relief in connection with such investigation, civil action, suit or legal proceeding.
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V.         You acknowledge that this Letter does not limit or interfere with your right, without notice to or authorization of the Company, to communicate and cooperate in good faith with a Government Agency for the purpose of (i) reporting a possible violation of any U.S. federal, state, or local law or regulation, (ii) participating in any investigation or proceeding that may be conducted or managed by any Government Agency, including by providing documents or other information, or (iii) filing a charge or complaint with a Government Agency. Additionally, you shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (a) in confidence to a federal, state, or local government official, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or (c) in court proceedings if you file a lawsuit for retaliation by an employer for reporting a suspected violation of law, or to your attorney in such lawsuit, provided that you must file any document containing the trade secret under seal, and you may not disclose the trade secret, except pursuant to court order. Notwithstanding the foregoing, under no circumstance will you be authorized to make any disclosures as to which the Company may assert protections from disclosure under the attorney-client privilege or the attorney work product doctrine, without prior written consent of the Company’s General Counsel or another authorized officer designated by the Company.
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VI.       From and after the date you execute this Letter, you represent that you have not made, and agree that you will not make, to any third party any disparaging, untrue, or misleading written or oral statements about or relating to the Company or its products or services (or about or relating to any officer, director, or employee of the Company). The Company agrees to instruct its then-current members of the Board of Directors and its then-current executive officers of the Company (as defined in the Securities Exchange Act of 1934, as amended and rules thereunder) not to defame or disparage you in any medium at any time. Notwithstanding the foregoing, any party may make truthful statements to the extent required by applicable law, or any court or governmental or self-regulatory agency. In addition, you may make truthful statements without breaching this Paragraph VI in connection with the exercise of your rights under Paragraph V of this Letter or to the extent necessary in connection with any cooperation provided by you pursuant to Paragraph XIII of this Letter.
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VII.      You acknowledge and agree that you shall continue to be bound by the terms and conditions of the Employment Agreement which continue to apply following termination of your employment, including the protective covenants of Sections 7, 8 and 9.
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VIII.     If any provision of this Letter is found by a court to be invalid or unenforceable, in whole or in part, then such provision will be construed and/or modified or restricted to the extent and in the manner necessary to render it valid and enforceable, or will be deemed excised from this Letter, and this Letter will be construed and enforced to the maximum extent permitted by law, as if such provision had been originally incorporated herein as so modified or restricted, or as if such provision had not been originally incorporated herein, as the case may be, so that, once modified, this Letter will be enforceable to the maximum extent permitted by the law in existence at the time of the requested enforcement.
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IX.       A waiver by the Company or you of a breach of any provision of this Letter by the other party shall not operate or be construed as a waiver or estoppel of any subsequent breach by the Company or you, as applicable. No waiver shall be valid unless in
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writing and signed by an authorized officer of the Company and you.
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X.         A.        Unless and until publicly disclosed by  the  Company  or  any  successor thereto, you agree that you will keep the terms and/or amounts set forth in this Letter completely confidential and will not disclose any information concerning this Letter's terms and amounts to any person other than your attorney, accountant, tax advisor, or immediate family. You understand and agree that the terms of this Letter may be required to be disclosed by the Company under securities or other laws or rules. In addition, you may disclose the terms and/or the amounts set forth in this Letter to the extent required by applicable law, or any court or governmental or self-regulatory agency, in connection with exercising your rights under Paragraph V of this Letter Agreement or in connection with any dispute with respect to the enforcement of the Employment Agreement or this Letter.
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B.         You represent and certify that you have carefully read and fully understand all of the provisions and effects of this Letter, have knowingly and voluntarily signed this Letter freely and without coercion, and acknowledge that on                                                           , the Company advised you to consult with an attorney prior to agreeing to the terms of this Letter and further advised you that you had at least forty-five (45) days (until                                                 ) within which to consider the terms of this Letter. You are voluntarily signing this Letter and neither the Company nor its agents, representatives, or attorneys made any representations concerning the terms or effects of this Letter other than those contained in the Letter itself.
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C.         You acknowledge that you have seven (7) days from the date this Letter is executed by you in which to revoke your acceptance, and this Letter will not be effective or enforceable until such seven (7)-day period has expired.
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XI.       This Letter sets forth the entire agreement between the parties, and fully supersedes any and all prior agreements or understandings between the parties pertaining to actual or potential claims arising from your employment with the Company or the termination of your employment with the Company (except for claims not released by you in Paragraph III above); provided, however, that all obligations and rights arising under the Employment Agreement, which are incorporated by reference herein or which survive pursuant to Sections 6(f) and 11 of the Employment Agreement, will not be released, will be unaffected hereby and will remain in full force and effect.
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XII.      If you or your heirs, executors, administrators, successors or assigns (a) challenge the enforceability of this Letter, or (b) file a charge of discrimination, a lawsuit, or a claim of any kind for any matter released by you herein, you or your heirs, executors, administrators, successors or assigns shall be obligated to tender back to the Company all payments made to you or them under this Letter and to indemnify and hold harmless the Company from and against all liability, costs and expenses, including attorneys’ fees, arising out of said challenge or action by you, your heirs, executors, administrators, successors or assigns.
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XIII.     You agree that prior to your last day of employment you are expected to fully assist the Company in the transition of files and projects with which you have been involved, maintaining a professional and supportive position while interacting with employees or vendors. In connection with any and all claims, disputes, negotiations, investigations, lawsuits or administrative proceedings involving the Company of which you have knowledge and which relate
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to matters which occurred during your employment with the Company, you agree to make yourself reasonably available, upon reasonable notice from the Company, and without the necessity of subpoena, to provide information or documents, provide declarations or statements to the Company, meet with attorneys or other representatives of the Company, prepare for and give depositions or testimony, and/or otherwise cooperate in the investigation, defense or prosecution of any or all such matters; provided such cooperation is not adverse to your legal interests. The Company agrees to promptly reimburse you for all reasonable expenses occurred by you in connection with any cooperation under this Paragraph XIII.
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XIV.    This Letter may not be altered, amended, or modified except in writing signed by both you and the Company.
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XV.      This Letter shall be governed by, and construed in accordance with, the laws of the State of Delaware and any court action commenced to enforce this Release shall have as its sole and exclusive venue of the courts of Delaware.
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PLEASE READ THIS LETTER AND CAREFULLY CONSIDER ALL OF ITS PROVISIONS BEFORE SIGNING IT. THIS LETTER CONTAINS A RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS, INCLUDING THOSE UNDER THE FEDERAL AGE DISCRIMINATION IN EMPLOYMENT ACT, AND OTHER FEDERAL, STATE AND LOCAL LAWS PROHIBITING DISCRIMINATION IN EMPLOYMENT, EXCEPT AS OTHERWISE PROVIDED IN THIS RELEASE.
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If you have any questions, please call me. Please also call me if you have a change of address or telephone number since the Company will send you a Form W-2 at the end of the year and I may need to contact you with additional benefits information.
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	Sincerely,

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	Magellan Health, Inc.

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	By:

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	Title:

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	Dated:
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	I voluntarily agree and accept the terms of this Letter.
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	Dated:
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65Exhibit 10.1

 

DEALERSHIP ASSET PURCHASE AGREEMENT

 

This DEALERSHIP ASSET PURCHASE AGREEMENT
(this “Agreement”) is effective as of the date Anthony J. Gargano, P.A. (“Escrow Agent”)
executes the escrow receipt on the last page hereto (the “Effective Date”), and is among LMP Automotive
Holdings, Inc., a Delaware corporation or its assigns (“Buyer”), William B. Fuccillo, Sr., an individual
(collectively, “Principal”), and Fuccillo Affiliates of Florida, Inc. and Fuccillo Associates of Florida,
Inc., Florida corporations (each, a “Seller” and collectively, “Sellers”; and
Sellers together with Buyer and Principal, each a “Party” and, collectively, the “Parties”).

 

RECITALS:

 

WHEREAS, Sellers own, control and
operate two KIA motor vehicle dealerships (each, a “Dealership” and collectively, the “Dealerships”)
located at 404 N. E. Pine Island Road, Cape Coral, Florida 33909 and 202 Tamiami Trail, Port Charlotte, Florida 33953 (collectively,
the “Dealership Premises”), under sales and service agreements with KIA Motors America, Inc. (“Manufacturer”);
and

 

WHEREAS, Sellers and Principal desire
to sell and transfer substantially all of the Dealerships’ assets (as more particularly described in Section 2 below,
excluding the Excluded Assets defined below, collectively, the “Dealership Assets”) to Buyer and Buyer
desires to purchase said assets on the terms and conditions hereinafter set forth.

 

AGREEMENT:

 

NOW, THEREFORE, in consideration
for the mutual promises contained in this Agreement, the receipt and sufficiency of which is hereby acknowledged by each Party,
it is agreed as follows:

 

1. Earnest
Money & Brokers. Within three (3) business days after the first date that Buyer has signed this Agreement and received
from Sellers a complete, fully executed copy of this Agreement signed by Sellers, Principal and the Escrow Agent, Buyer shall deliver
to Escrow Agent $1,000,000.00 as earnest money (the “Earnest Money”) to be held in trust by Escrow Agent
for and on behalf of the Parties pursuant to this Agreement. On the Closing Date, if the Closing occurs, the Earnest Money will
be applied to the Purchase Price. Upon the sooner to occur of Closing or termination of this Agreement, the Earnest Money will
be paid as provided in Section 15(a). If any third party claims any right or interest in all or any portion of the Purchase
Price based on such third party’s agreement with, or interest in, Sellers or Principal and such claim is disputed by Sellers
or Principal, then Buyer may elect to proceed with Closing by placing the disputed portion of the Purchase Price with the Escrow
Agent. Kerrigan Advisors, Inc. (the “Broker”) assisted Seller with the transactions contemplated herein;
the fees of which will be paid by Seller on the Closing Date.

 

2. Dealership
Assets & Excluded Assets. Subject to the terms and conditions contained in this Agreement, upon the consummation of
the transactions contemplated by this Agreement (the “Closing”, and the date thereof, the “Closing
Date”), Sellers shall sell to Buyer, and Buyer shall purchase from Sellers, the following Dealership Assets:

 

(a) Fixed
Assets: Buyer shall purchase from Sellers, and Sellers shall sell to Buyer, all fixed assets owned by Sellers on the Closing
Date and used in connection with the Dealerships or the Dealership Premises (collectively, the “Fixed Assets”).
Fixed Assets include Seller-owned vehicles not in inventory (i.e., “company vehicles”) but exclude assets that would
be properly characterized as leasehold improvements, fixtures (as defined by Florida law) or real property. A bill of sale, assignment
and assumption Agreement executed at Closing (the “Bill of Sale”) will contain a list and description
of all of the Fixed Assets sold to Buyer. The Purchase Price for the Fixed Assets will be an amount equal to the net book value
of such Fixed Assets as of the last day of the month immediately preceding the Closing Date after being entered on the original
in service date for an amount equal to the actual, out-of-pocket initial purchase price for such Fixed Assets on such original
in service date and depreciated in accordance with industry standard depreciation provisions consistently applied.

 

    Page 1 of 29

     

    

 

(b) New
Vehicles. Buyer shall purchase from Sellers and Sellers shall sell to Buyer Sellers’ new, unregistered and unused 2020
and subsequent model year Manufacturer vehicles in Sellers’ inventory in the ordinary course of business and identified by
Sellers on the Closing Date, including all untitled demonstrators and service loaners at each Dealership (collectively, “New
Vehicles”). The New Vehicle purchase price will be an amount equal to the actual net cost to Sellers of each
New Vehicle, as reflected on Manufacturer’s original invoice without interest or finance cost; plus Sellers’
direct out-of-pocket cost of dealer-installed optional parts and accessories theretofore installed upon New Vehicles (including
Seller’s actual, verifiable out of pocket cost of labor, rust-proofing, undercoating, nitrogen, scotch guarding, door edge
guards, spare tires, window tint, interior/exterior paint protection, lift kits, window guards, spoiler and pinstripes); less
the cost of any accessories, equipment or parts missing from any New Vehicle; less all applicable dealer hold-backs, incentives
(in any form, including wholesale programs) and rebates (including all floor plan credits, advertising consideration or other inventory-based
rebates or incentives paid or payable to Seller); less “prep” expenses for New Vehicles which have not yet been
prepared for sale; and less the cost to repair any damage as determined by a reputable independent body shop. The purchase
price of New Vehicles with more than 500 miles but less than 5,000 miles will be reduced by $0.25 per mile. New Vehicles with 5,000
or more miles will be valued as a Used Vehicle (defined below). The Bill of Sale will contain a list and description of all of
New Vehicles sold to Buyer. Notwithstanding any provision herein to the contrary, (i) New Vehicles reported to the Manufacturer
as sold (or “retail delivered”) or damaged and/or repaired such that Buyer would be required under applicable law or
commercially reasonable standards and practices to disclose the repairs to a customer will be Used Vehicles; and (ii) “dealer
traded” New Vehicles will be valued as if such New Vehicle had been invoiced to Sellers by Manufacturer and will not exceed
the actual net cost thereof to Sellers; and (iii) New Vehicles in stock for more than twelve (12) months.

 

(c) Used
Vehicles. Buyer may purchase all vehicles other than the New Vehicles in Sellers’ vehicle inventory as of the
Closing Date at a mutually agreed upon price (collectively, “Used Vehicles”). If the Parties are unable
to agree on the price of any Used Vehicle, then each such Used Vehicle will be excluded from the sale and removed from the Dealership
Premises within thirty (30) days after the Closing. The Bill of Sale will contain a list and description of all Used Vehicles sold
to Buyer.

 

(d) Parts;
Accessories and Other Inventories.

 

(i) Manufacturer
Parts and Accessories. All new, genuine, unused, unopened, undamaged current returnable and non-returnable parts and accessories
(including new cores) purchased by Sellers from the Manufacturer or a Manufacturer's authorized distributor of such parts and accessories
listed in the Manufacturer's or supplier's, as the case may be, current parts and accessories price book, as applicable, with supplements
in effect on the date of the inventory described in Section 2(d)(iv) below (“OEM Parts”).

 

    Page 2 of 29

     

    

 

(ii) Non-OEM
Parts, Accessories and Tires. All new, unused, unopened and undamaged non-OEM parts, accessories and tires (“Non-OEM
Parts”) purchased by Seller and useable on Manufacturer's vehicles.

 

(iii) Miscellaneous
Supplies. All useable and saleable general hardware consisting of bolts, nuts, washers, screws and fittings, all useable and
saleable bulk items, such as brake pads, regardless of whether the package has been opened, and all useable and saleable gas, oil
and grease (“Miscellaneous Supplies”).

 

(iv) Inventory.
A physical inventory of Sellers' OEM Parts, Non-OEM Parts and Miscellaneous Supplies will be taken in the presence of Buyer's and
Sellers' representatives by an inventory service mutually acceptable to Buyer and Sellers, the collective cost of which will be
paid 50% by Buyer and 50% by Sellers. The purchase price for the OEM Parts is the price listed in the Manufacturer's or a Manufacturer
authorized distributor's, price list or catalogues, with supplements, in effect at the time of the physical inventory MINUS any
credits, discounts, allowances, rebates or other incentives which the Sellers have or will receive. Any obsolete OEM Parts shall
be purchased by Buyer at one-half of list or catalogue prices or at a price determined by the inventory service in the absence
of any catalogue pricing.

 

(v) Return
Rights, etc. Upon Closing, if permitted by the Manufacturer, Sellers shall assign to Buyer, Sellers’
parts return rights and privileges. At the request of Buyer, Sellers shall use their best efforts to assist Buyer in effecting
any parts return offered by the Manufacturer (including, if necessary, applying for parts return in Sellers’ name), and Sellers
shall promptly pay over to Buyer any monies received from the Manufacturer related to OEM Parts that have been purchased by Buyer
from Sellers. Buyer is not obligated to purchase any parts, accessories or other goods in which the parts code has had no sales
in the twelve (12) months prior to Closing. Buyer will not be obligated to purchase more than one year’s supply of any non-returnable
part or accessory (based on trailing one year historical sales). The purchase price for all other parts not addressed in this Section
will equal the value thereof as mutually agreed between Buyer and Sellers. If any parts and accessories or other inventories or
goods that Buyer is not obligated to purchase hereunder are not removed from the Dealership Premises within thirty (30) days after
the Closing Date, such property will automatically become Dealership Assets transferred to Buyer pursuant to the Bill of Sale without
additional consideration.

 

(e) Miscellaneous
Assets & Goodwill. Buyer shall purchase from Sellers, and Sellers shall sell to Buyer, Sellers’ telephone and data
numbers, website addresses and domain names owned or registered by or on Sellers’ behalf, by Principal or the Dealership
(excluding any Excluded Assets, provided, that Sellers shall redirect internet traffic arriving at www.fuccillokiaofcapecoral.com
and www.fuccillokiaofportcharlotte.com to a domain name(s) provided by Buyer for at least one (1) year After the Closing Date),
e-mail addresses, classified telephone and internet advertising, prospect data, customer sales, lease, finance and service records
(both hard copy and electronic format (including deal jackets), for no additional cost to Buyer), Sellers’ workman’s
compensation and unemployment rating in the State of Florida to the extent that they are lawfully transferred, all lawfully transferable
licenses and permits of the Dealerships or Sellers, Dealership Intellectual Property (defined below), leasehold improvements and
fixtures, unused internal and customer repair order forms, customer lists and marketing materials and catalogues, retail buyer’s
order forms, office and shop supplies, shop reference manuals, parts reference catalogs, all books and records necessary for the
continued operation of the Dealerships (including training and promotional materials, employee records of employees hired by Buyer,
P.O. Boxes, third party warranties in Sellers’ favor and all licenses and rights to use all software (other than DMS systems
not assumed by Buyer) on or used in connection with any personal computer or other computing device used in connection with the
Dealership, etc.), parts sales tickets, unused purchase order forms and all other forms and Sellers’ goodwill and going concern
value relating to the Dealership. “Dealership Intellectual Property” means all (i) patents, patent applications,
patent disclosures and improvements, (ii) trademarks, trade names, service marks, trade dress, and logos, (iii) copyrights and
registrations and applications for registration thereof, (iv) computer software, data and documentation, (v) trade secrets; and
(vi) social media, directory assistance, reputation management and e-commerce sites and accounts (including E-Bay, Facebook, Instagram,
Twitter, yelp!, Dealer Rater, Edmunds and Google programs). The purchase price for the assets described in this Section 2(f)
is $36,000,000.00, which will be allocated between the Dealerships by mutual written agreement of the Parties in the Closing Memorandum
(defined below).

 

    Page 3 of 29

     

    

 

(f) Excluded
Assets. Notwithstanding any contrary provision contained herein, Sellers shall retain, and shall not sell to Buyer, except
by mutual written agreement, assets not included in the enumeration of Dealership Assets, including the following specific items
(collectively, the “Excluded Assets”):

 

(i) cash
and cash equivalents on hand and in banks, certificates of deposit, commercial paper, stocks, bonds and other liquid investments
and LIFO reserves;

 

(ii) Sellers’
accounts receivable of (including, but not limited to, any “contracts in transit”, rebates receivable, holdbacks, discounts
receivable, credit life commission, receivable and finance Sellers receivables, both current and deferred);

 

(iii) any
prepaid expense, insurance, interest, utilities, security deposits with respect to all real estate leases and assumed liabilities
or rent accrued to the benefit of Sellers as of the Closing Date;

 

(iv) the
minute book, corporate records and corporate seal of Sellers;

 

(v) the
Purchase Price;

 

(vi) Sellers'
right to enforce this Agreement;

 

(vii) as
contemplated by Section 2(c), all Used Vehicles which Buyer does not elect to purchase;

 

(viii) all
of Sellers' employee benefit plans;

 

(ix) those
items of personal property owned by Principal, located at the Dealership Premises and listed on Schedule 2(g);

 

(x) all
trade names and uniform resource locators and any and all content related to portcharlottecredit.com, capecoralcredit.com, hugekiacredit.com,
and any other intellectual property used or usable in the Dealerships’ business containing the name “Fuccillo”,
“Billy”, “Huge”, “It's Huge” or any combination of these words and/or used by an Affiliate
of Sellers in the operation of its or their business(es);

 

(xi) any
correspondence or records of Sellers that constitutes attorney-client privileged communications; and

 

(xii) Sellers'
contracts or policies of insurance and any refunds of taxes or tax loss carry forward of Seller.

 

    Page 4 of 29

     

    

 

3. Pro-rations
& Assumed Contracts.

 

(a) Prepaid
Expenses & Pro-rations. Buyer shall purchase from Sellers, and Sellers shall sell to Buyer, the Dealerships’ prepaid
expense items incurred in the ordinary course of business at the direct out-of-pocket cost to Sellers for such items and provided
such prepaid expenses provide future benefit to Buyer. All deposits and prorations which are normal and reasonable will be made
as of Closing, including but not limited to the pro-ration of personal property taxes and utilities.

 

(b) Customer
Deposits & Work in Process. Upon Closing, Sellers shall transfer to Buyer, in the form of a credit against the payment
of the Purchase Price, all customer deposits for incomplete orders taken by Sellers in the ordinary course of business. Sellers
shall retain all escheatable deposits. At the Closing, Sellers shall furnish Buyer with a list of such deposits (including “we
owes”, due bills, etc.), setting forth, as to each, the name and address of the customer, any goods or services owed to the
customer and the amount of the deposit, and Sellers shall deliver to Buyer all documents in Sellers’ possession reflecting
such deposits, we owes, due bills, etc. The Bill of Sale will contain a list and description of such customer transactions (and
Work in Process, as detailed below). Buyer shall purchase from Sellers, and Sellers shall sell to Buyer, Sellers’ pending
service orders written by Sellers in the ordinary course of business for an amount equal to Sellers’ actual cost for parts
and labor for any such orders which are in process at the opening of business on the Closing Date (“Work in Process”).
Sellers shall not receive the revenue from such Work in Process. Buyer may reject (and Sellers shall retain) all Work in Process
where (i) the Work in Process was not placed in the normal course of business; or (ii) Sellers do not possess an order signed by
the customer authorizing such service, the vehicle isn’t at the Dealership Premises on the Closing Date or such order has
been open for longer than 21 days prior to the Closing Date. If the Work in Process is on terms that cause the Dealership to suffer
a loss, Seller shall reimburse Buyer for such losses upon demand.

 

(c) Assumed
Contracts. As of the Closing Date, Buyer shall assume Sellers’ contractual obligations listed on Schedule 3(c)
hereto on the Closing Date (collectively, “Assumed Contracts”). The term “Assumed Contracts”
excludes obligations and liabilities arising by the Closing Date or by reason of any breach or alleged breach by Sellers, regardless
of when such obligation or liability is asserted. During the Inspection Period, Sellers shall provide Buyer with complete copies
of all contracts Sellers propose for Buyer to assume along with a written summary in the form of Schedule 3(c) attached
hereto on the Effective Date. Buyer is not obligated to assume any contract that is not incurred in the ordinary course of business
or that cannot be terminated without a penalty or premium in two years or less. Sellers and Buyer shall use commercially reasonable
efforts to agree in writing to a final Schedule 3(c) at least ten (10) days prior to expiration of the Inspection Period.
Sellers shall arrange for assignment of the Assumed Contracts at Sellers’ cost, except to the extent that Buyer needs to
be involved in the assignment/assumption process which will be at Buyer's expense.

 

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4.
Dealership Premises.

 

(a) Real
Estate Contract. Buyer will purchase the Dealership Premises from Sellers’ affiliates, WBF Florida Properties, LLC and
WBF Florida Properties III, LLC, Florida limited liability companies, pursuant to a real estate contract effective as of the Effective
Date (as it may be amended and assigned, the “Real Estate Contract”).

 

(b) New
Communication Lines. With reasonable prior notice, Sellers shall give Buyer and its employees and subcontractors reasonable
access to the Dealership Premises before Closing for the purpose of installing communications lines (“New Communications
Lines”) which in Buyer’s reasonable judgment are necessary to allow Buyer, immediately after Closing, to connect
those premises and the computer systems, telephone systems, networks and data bases in them to Buyer’s computer systems,
telephone systems, networks and data bases; provided, however, that Buyer shall not use the New Communications Lines
before the Closing, other than for testing purposes. If this Agreement is terminated for any reason, Buyer shall promptly, but
in no event later than fifteen (15) days after such termination, remove the New Communications Lines and repair any damage caused
by such removal returning the Dealership Premises to substantially the same condition that existed prior to the installation of
the New Communication Lines, all to the reasonable satisfaction of the Sellers. Buyer’s installation and, if applicable,
removal of the New Communications Lines will be done in a manner that does not interfere with Sellers’ operation of the Dealerships
and that does not damage the Dealership Premises. At least one week before the anticipated Closing Date, Sellers shall provide
Buyer with digital access to Sellers’ vehicle inventory. Buyer may also arrange for Sellers’ employees to attend D.M.S.
and other training prior to Closing so long as such training does not interfere with such employee’s work duties to Sellers.

 

5. Inspection
Period. Beginning on the Effective Date, Buyer may conduct due diligence at Buyer’s expense regarding the Dealerships
and Dealership Premises, including obtaining such reports and studies as Buyer deems appropriate. Until the sixtieth (60th) day
after the Effective Date (the “Inspection Period”), Buyer may terminate this Agreement for any or no
reason upon written notice to Sellers and receive a full refund of the Earnest Money without any written permission from Sellers,
Principals or any other person or entity. If Buyer has not received the PCAOB Audit, as defined below, at least ten (10) business
days before the expiration of the Inspection Period, then the Inspection Period will automatically be extended, solely for purposes
of reviewing and accepting the PCAOB Audit, to the tenth (10th) business day after Buyer's receipt of the PCAOB Audit
(“Extended Inspection Period”). During the Extended Inspection Period, Buyer may terminate this Agreement
and receive a full refund of the Earnest Money only if Buyer is dissatisfied with the PCAOB Audit. During the Inspection Period,
Sellers shall provide to Buyer and Buyer’s representatives reasonable access to the books, records, reports, employees, information
and facilities of the Dealerships and the Dealership Premises, and shall make Sellers’ officers, employees, accountants and
attorneys available at reasonable times to discuss with Buyer and Buyer’s representatives such aspects of the business of
the Dealerships and the Dealership Premises. Sellers shall provide two (2) years (2018 and 2019) of PCAOB standard audited financial
statements performed by The Bonadio Group (or other mutually agreed to CPA firm) (the “PCAOB Audit”)
during the Inspection Period; provided, that upon receiving verification of Sellers' actual cost of the PCAOB Audit, Buyer
will reimburse Sellers’ actual costs for the PCAOB Audit not to exceed $150,000.00 within five (5) business days after receiving
the verification of actual cost. Sellers shall provide Buyer with all of Sellers’ Manufacturer financial statements within
fifteen (15) days after month's end.

 

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6. Purchase
Price; Closing & Structuring Fee.

 

(a) Purchase
Price & Closing. The Closing will occur on a mutually agreed to business day by the Closing Date Deadline (defined below)
within fifteen (15) days after the satisfaction or waiver of the pre-Closing Date conditions contained in Section 9 below,
and the draft of the Closing Memorandum (defined below) will be prepared on the day prior to such business day. The “Closing
Date Deadline” means December 31, 2020. If the Closing has not occurred by the Closing Date Deadline and a protest
is pending before the applicable Florida dealer regulatory board, or litigation with the Manufacturer is pending, then the Parties
may mutually agree to extend the Closing Date Deadline as necessary upon notice to Seller. Buyer shall pay Sellers the purchase
price for the Dealership Assets (the “Purchase Price”) in immediately available funds on the Closing
Date. Each Party shall use the Purchase Price and other allocation described in the spreadsheet used by the Parties to calculate
the Purchase Price mutually agreed to and executed and delivered by the Parties upon Closing (the “Closing Memorandum”)
and an IRS Form 8594 (asset acquisition statement) to be filed by each Party with the Internal Revenue Service for the tax year
in which the Closing occurs, in accordance with the rules prescribed under Section 1060 of the Internal Revenue Code, as amended.
Neither Party will take any position inconsistent with such allocation unless otherwise required by applicable law. Each Party
shall provide the other Party with a copy of any information to be furnished to the Secretary of the Treasury as required by Section
1060.

 

(b) Hart-Scott-Rodino
Act. Filing under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) may be
required. If filing or notice or other action is required under the HSR Act with respect to the transactions outlined herein, then
Buyer shall be responsible for such filing or notice and Buyer and Sellers shall each pay one-half of all costs, including filing
and attorneys’ fees, associated therewith. Sellers shall cooperate fully with Buyer in said action and promptly provide all
requisite information.

 

(c) Equity
Opportunity. Subject to Manufacturer approval, Buyer will allow Principal and the Dealerships’ general managers to purchase
up to an aggregate of fifteen percent (15%) of the motor vehicle division (not real estate division) of Buyers’ equity (i.e.,
the Dealership owners on the Closing Date once this Agreement is assigned).

 

7. Sellers’
and Principal's Representations & Warranties. Each Seller and Principal represents and warrants to Buyer as follows
on the Effective Date and the Closing Date:

 

(a) Formation.
Seller is duly formed, validly existing, and in good standing under the laws of the State of Florida and is duly qualified to transact
business in the city and county in which its Dealership Premises is located. Principal is Seller’s only individual with direct
or indirect ownership in either Seller.

 

(b) Authority.
Seller has the requisite legal power and authority to execute and deliver this Agreement, to perform its obligations hereunder,
and to consummate the transactions contemplated hereby, all of which have been duly authorized and approved by all necessary action
and for which no consent of any person or governmental authority is required. This Agreement constitutes each Seller’s valid
and legally binding obligation, enforceable in accordance with its terms, subject only to the application of the Bankruptcy Code
of the United States and any other applicable liquidation, conservatorship, bankruptcy or similar state or federal law from time
to time in effect affecting the rights of creditors generally.

 

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(c) Conflicts.
The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby is permitted by Seller’s
organizational documents and resolutions and Seller’s agreements and obligations. The execution, delivery, and performance
of this Agreement by Seller does not require the consent of Seller’s creditors or of any other person other than the Manufacturer,
other than such consents as have been, or prior to the Closing will be, obtained.

 

(d) Financials.
True, correct and complete copies of at least three (3) years of Manufacturer financial statements have been delivered by Sellers
to Buyer for Buyer’s review in connection with its due diligence investigation of the Dealership and the Dealership Assets.
The three (3) years of Manufacturer financial statements have been prepared in all material respects in accordance with Manufacturer’s
requirements. The PCAOB Audit will be provided to buyer as soon as it is completed and available for distribution.

 

(e) Compliance.
To Sellers' knowledge, the Dealership and the Dealership Assets comply in all respects with, and the Dealership has been conducted
in all respects in compliance with, all laws, rules and regulations (including all worker safety and all Environmental Laws (as
hereinafter defined)), applicable zoning and other laws, ordinances, regulations and building codes, and neither Seller nor Principal
has received any notice of any violation thereof which has not been cured.

 

(f) Litigation.
There are no actions, suits or legal proceedings pending, or, to Seller’s or Principal's knowledge, threatened, against or
affecting Seller, the Dealership or the Dealership Assets which might adversely affect Seller’s power or authority to carry
out the transactions to be performed by Seller hereunder.

 

(g) Dealership
Assets. Seller is the owner of, and has, good and marketable title to all of the Dealership Assets (including intangible assets
such as websites and domain names); all of the Dealership Assets will be transferred to Buyer free and clear of all liens and encumbrances;
and all of the Dealership Assets to be sold under the terms of this Agreement are, or on the Closing Date will be, in good operating
condition and repair. Seller does not utilize any tangible or intangible personal property (e.g., websites, delivery vehicles,
trade names, off-site storage facilities, no equipment leases, etc.) or real estate in its operation of the Dealership that is
not either being sold to Buyer as a Dealership Asset or subject of the Real Estate Contract, except the Excluded Assets.

 

(h) Manufacturer.
Manufacturer has not notified Seller or Principal of (i) any deficiency in Dealership operations (including, but not limited to,
brand imaging, facility conditions, sales efficiency, customer satisfaction, warranty work and reimbursement, or sales incentives);
(ii) a present or future need for facility improvements or upgrades in connection with the Dealership or the Dealership Premises;
or (iii) the awarding or possible awarding of a Manufacturer dealership to any person or entity in the Metropolitan Statistical
Areas in which the Dealership operates. The Dealership does not sell vehicles for export. Except in the ordinary course of Manufacturer’s
business, Manufacturer has not audited Seller’s sales, service or warranty practices or documentation, or refused or charged
back vehicle sales or warranty claims. To Sellers' knowledge, the Dealership Premises and the improvements thereon are compliant
with all Manufacturer requirements, guidelines and programs, and Seller is eligible for all facility/sales related incentives offered
by the Manufacturer or its distributor.

 

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(i) Licenses.
To Sellers' knowledge, (i) none of the permits or licenses used by Seller in the operation of the Dealership have been terminated
or revoked; (ii) no violations have been recorded regarding such licenses or permits; (iii) no proceeding is pending or threatened
seeking the revocation or limitation of any such licenses or permits; and (iv) there is not, and has not been, any violation in
any respect of federal, state and/or local laws, rules, regulations and orders applicable to the Dealership or the Dealership Premises.

 

(j) Warranties.
Seller does not have, or agreed to accept for others, any warranty or service obligations to any third party and Seller has not
offered its customers any marketing or added-value programs or plans for which Seller is responsible for administration or the
liability thereof, including, but not limited to programs commonly called “tires for life”, “oil changes for
life”, “car wash/detailing service plans”, “rewards programs” or any similar offers.

 

(k) Assumed
Contracts. The summaries of the Assumed Contracts on Schedule 3(c) accurately describe such Assumed Contracts, neither
party to any Assumed Contract is in breach, in any material respect, of such Assumed Contract, and all payments or obligations
on the Assumed Contracts are, or as of the Closing Date will be current.

 

(l) Options,
Rights of First Refusal. Except for the right of Buyer to acquire the Dealership Assets pursuant to this Agreement, Buyer’s
rights pursuant to the Real Estate Contract and any acquisition rights of the Manufacturer under the applicable Dealer Sales and
Service Agreement or any other written agreements between Sellers and Manufacturer, no other person or entity has any right to
acquire all or any portion of the Dealership Assets, the Dealership Premises or any interest therein, or Seller’s Manufacturer
contract rights or privileges.

 

(m) 
Taxes. Seller has duly filed all foreign, federal, state, county and local income, excise, sales, property, withholding,
unemployment, social security, franchise, license, information returns and other tax returns and reports, or appropriate and permitted
extensions thereto, required to be filed by it to the date hereof with respect to the Dealership, the Dealership Premises and the
Dealership Assets. Each such return is true, correct, and complete in all material respects, and Seller has paid all taxes, assessments,
amounts, interest and penalties due to applicable governmental authority. Seller has no liability for any taxes, assessments, amounts,
interest or penalties of any nature whatsoever other than those for which Seller has created sufficient reserves or made other
adequate provision. To Sellers' knowledge, no governmental authority is now asserting or threatening to assert any deficiency or
assessment for additional taxes, interest, penalties or fines with respect to Seller, the Dealership or the Dealership Assets or
the Dealership Premises.

 

(n) Employment
Matters. Seller has no oral or written collective bargaining or organized labor contracts or employment agreements, whether
or not legally binding, nor is Seller currently paying any deferred compensation or retirement allowance to anyone. Seller has
no contract for the future employment of any person. Seller is not delinquent in payments to any of its employees for any wages,
salaries, commissions, bonuses or other direct compensation for any services performed by them to the date hereof or amounts required
to be reimbursed to such employees. Seller has no knowledge that any Seller employee intends to terminate his or her employment.
Seller has complied in all material respects with the applicable requirements for its employee medical and benefit plans, if any,
as set forth in the Internal Revenue Code of 1986, as amended (the “Code”), and the Employee Retirement
Income Security Act of 1974, as amended, and the regulations promulgated thereunder (“ERISA”), including
Section 4980B of the Code (as well as its predecessor provision, Section 162(k) of the Code) and Sections 601 through 608, inclusive,
of ERISA, which provisions are hereinafter referred to collectively as “COBRA”.

 

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(o) Environmental.
(i) neither Seller nor Principal have received any notice from any governmental authority alleging a violation of any Environmental
Laws that are applicable to the Dealership Premises, (ii) to Sellers' knowledge, Seller has complied in all material respects with
all Environmental Laws that are applicable to the Dealership Premises, and has obtained and has been in compliance in all material
respects with all required governmental environmental permits with respect to the Dealership, and (iii) no unauthorized storage,
treatment, discharge or disposal of Hazardous Materials on the Dealership Premises has been made by Seller or its employees or
agents, except in compliance in all material respects with applicable Environmental Laws. “Environmental Laws”
means any federal, state or local statute, ordinance, rule or regulation relating to the existence, cleanup, removal and/or remedy
of contamination on property, the protection of the environment from spilled, emitted, discharged, discarded, deposited or emplaced
Hazardous Materials, the generation, use, transport, storage, handling, disposal, removal or recovery of Hazardous Materials, and
the exposure to hazardous, toxic, or other substances determined by law to be harmful, including the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 as amended (“CERCLA”), The Toxic Substances Control
Act, The Clean Air Act, and the Resource, Conservation and Recovery Act of 1976; and the term “Hazardous Material”
means any “hazardous substance,” as defined by §101(14) of CERCLA.

 

(p) Brokers.
Except for Broker, all negotiations relating to this Agreement, the Real Estate Contract and the transactions contemplated hereby
and thereby have been carried on without the participation of any person acting on Seller’s or Principal's behalf in such
manner as to give rise to any valid claim against Buyer for any brokerage or finder’s commission, fee, expense, or similar
compensation.

 

(q) Disclosure.
No representation or warranty made by Seller in this Agreement, or in any statement, certificate, or other instrument furnished
to Buyer pursuant hereto, or in connection with the transactions contemplated hereby, contains (or will contain, when furnished)
any untrue statement of a material fact or omits (or will omit, when furnished) a material fact necessary to make the statements
herein or therein not misleading.

 

As used in this Agreement, the phrases “knowledge of Seller”
or “Seller’s knowledge” means the knowledge of Seller’s officers, Principal and the Dealership’s
managers.

 

8. Buyer’s
Warranties & Representations. Buyer represents and warrants to Sellers and Principals as follows on the Effective Date
and the Closing Date:

 

(a) Formation.
Buyer is a Delaware corporation. Buyer’s assignees will be an entity duly formed and validly existing with authority to conduct
business in Florida on the Closing Date.

 

(b) Authority.
Buyer has the requisite legal power and authority to execute and deliver this Agreement, to perform the obligations of Buyer hereunder,
and to consummate the transactions contemplated hereby, all of which have been duly authorized and approved by all necessary entity
action and for which no consent of any person or governmental authority is required which has not been obtained, and no filing
with or other notification to any person or governmental authority is required which has not been properly completed. This Agreement
constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms, subject only to the application
of debtor relief laws and general equitable principles.

 

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9. Conditions
to Obligations of Buyer. The obligation of Buyer to consummate the transactions contemplated by this Agreement are subject
to the fulfillment (or express written waiver by Buyer) prior to or at the Closing, of all of the following conditions:

 

(a) Manufacturer
Approval. Manufacturer issued to Buyer a new Dealership Sales and Service Agreement, or commitment therefor, on terms and conditions
reasonably acceptable to Buyer in its sole discretion, permitting Buyer to operate the Dealerships at the Dealership Premises as
Sellers have operated them in the past.

 

(b) Assumed
Contracts. Buyer shall have received copies of all Assumed Contracts to the extent that said contracts require the consent
of the Vendor, said consents have been obtained.

 

(c) Seller
Performance; Accuracy of Representations. Sellers and Principal have performed in all material respects all of their obligations
hereunder to be performed prior to or at Closing. Sellers’ representations and warranties contained in this Agreement are
true and correct as of the date made.

 

(d) Licenses
& Approvals. Buyer obtained, or is in the process of obtaining, all required licenses and permits from governmental and
other agencies to operate a new and used vehicle dealership and repair, body shop and service facility at the Dealership Premises,
in the same manner as currently operated by Seller; provided, however, that if Sellers have agreed to execute for the benefit of
the Buyer the Temporary License Use Agreement set forth as Exhibit A then this condition is deemed satisfied. If required
by law, Buyer and Sellers have obtained all approvals required by the HSR Act, including clearances and completion of any waiting
periods required by the HSR Act.

 

(e) Seller
Authorization. Buyer received evidence reasonably acceptable to Buyer regarding Sellers’ due organization and authority
to enter into the transactions described herein, including evidence of existence and good standing in the State of Florida and
an officer’s certificate in form acceptable to Buyer containing a copy of resolutions duly adopted by Sellers’ appropriate
governing body and owners approving the transactions contemplated hereby.

 

(f) No
Material Adverse Change. Between the Effective Date and the Closing Date (i) there has been no material adverse change to the
Dealership, the Dealership Premises or the Dealership Assets, (ii) there has been no federal, state or local legislative or regulatory
change affecting the services, products or business of the Dealerships, which would have a material adverse effect on the Dealerships,
the Dealership Premises or the Dealership Assets and (iii) none of the Dealership Assets have been damaged by fire, flood, casualty,
act of God or the public enemy or other cause, which damages would have a material adverse effect on the Dealership, the Dealership
Premises or the Dealership Assets.

 

(g) WARN
Act. If applicable, Sellers complied with the provisions of the Workers Adjustment and Retraining Notification Act, 29 U.S.C.
§2101-2109.

 

(h) No
Litigation. No action, suit, filing requirement, waiting period or proceeding has been instituted, applied or mandated by a
governmental agency or any other third party to prohibit or restrain the sale contemplated by this Agreement or otherwise challenge
the power and authority of the Parties to enter into this Agreement or to carry out their obligations hereunder or the legality
or validity of the sale contemplated by this Agreement.

 

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(i) License
Use. Each Seller executed and delivered a license use agreement in the form of Exhibit A hereto.

 

(j) Financing.
Buyer has consummated its Dealership Asset financing arrangements with its lender(s) on terms acceptable to Buyer in its sole discretion;
provided, however, that once the Inspection Period has expired, this condition shall be deemed satisfied. An extension of the Inspection
Period for PCAOB purposes does not extend the Inspection Period for purposes of this financing condition.

 

(k) Closing
Memorandum & Bill of Sale; etc. Each Seller must have executed and delivered a Closing Memorandum, a Bill of Sale, all
Manufacturer-required documents, vehicle title documents, state tax compliance certificates, additional insured certificate and
such other deeds, assignments or certificates of title, documents and other instruments of transfer and conveyance as may reasonably
be required by Buyer, each in form and substance reasonably satisfactory to Buyer.

 

(l) 
Non-Competition Agreement. Sellers, Principal and any other individuals with direct or indirect ownership in either Sellers
executed and delivered the non-competition agreement in the form attached hereto as Exhibit B (the “Non-Competition
Agreement”).

 

(m) 
Simultaneous Real Estate Closing. The Closing hereunder will occur simultaneously with the “Closing” under,
and as defined in, the Real Estate Contract.

 

10. Conditions
to Sellers’ Obligations. Sellers’ obligation to consummate the transactions contemplated by this Agreement
are subject to the fulfillment (or written waiver by Sellers), prior to or at the Closing, of all of the following conditions:

 

(a) Purchase
Price Payment. Buyer paid the Purchase Price to Sellers.

 

(b) Buyer
Performance. Buyer performed in all material respects all of its obligations hereunder to be performed prior to or at Closing
each of Buyer’s representations and warranties contained in this Agreement shall be true and accurate as of the date made.

 

(c) Closing
Memorandum. Buyer executed and delivered the Closing Memoranda.

 

(d) Simultaneous
Closing. The Closing hereunder will occur simultaneously with the “Closing” under, and as defined in, the Real
Estate Contract.

 

11. Employees.

 

(a) Benefits.
Sellers and Principal shall terminate or take all appropriate action in connection with pension, profit sharing and health and
welfare benefit plans, if any, that are applicable to Sellers and/or Sellers’ employees (“Plans”),
prior to or at Closing, so that Buyer will have no responsibility or liability or obligation of any nature under Plans to any person,
firm or corporation whatsoever. If any applicable law provides that Buyer is or will be liable for any liability or obligation
under any Plan despite Sellers’ and Principal's contractual liability for such liability or obligation hereunder, and Sellers
and Principal fail to pay or perform such liability or obligation within five (5) days after Buyer’s written demand, then
such amounts may be set off from time to time from any amount Buyer (or its affiliate) owes Principal or Sellers (or their respective
affiliate). Sellers (including all employers, whether or not incorporated, that are treated together with Sellers as a single employer
within the meaning of Section 414 of the Code or, where appropriate, Sellers’ health and welfare benefit plans that are “group
health plans” will retain liability for and will pay when due all benefits (including all liabilities and obligations for
or arising from any “COBRA” health care continuation coverage required to be provided under Section 4980B of the Code
and Sections 601-608 of ERISA) attributable as of the Closing Date to “covered employees” or “qualified beneficiaries”
entitled to “continuation coverage” (as those terms are defined in Section 4980B of the Code) regardless of when services
were rendered or expenses incurred.

 

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(b) Vacation
& Sick Leave Wages. Sellers shall pay all wages (including earned but unused vacation wages, whether or not yet vested)
due to Sellers’ employees as of the Closing Date. Sellers shall terminate their employees as of the close of business of
the day immediately preceding the Closing Date. Provided the Closing takes place, Buyer may, but is not obligated to, employ Sellers’
employees who are willing to accept the offered employment with Buyer, and Buyer will give due regard to such employees’
benefits from their prior employer, so long as such employees meet all eligibility requirements, including any probationary period.

 

12. Receivables
& Manufacturer Payments.

 

(a) Sellers’
Receivables. Following the Closing, Buyer, on Sellers’ behalf and as Sellers’ agent, shall accept payment of Sellers’
accounts receivable and Manufacturer warranty payments arising out of the operation of the Dealerships prior to Closing for a period
of 120 days. Buyer shall turn over to Sellers on the last day of each calendar month during said period all of the monies so accepted
on said accounts receivable during the previous calendar month. Buyer is not obligated to accept payments of such accounts receivable
after such 120-day period, but if Buyer does so then Buyer shall hold same in trust for Sellers and promptly pay the same over
to Sellers. Buyer’s responsibility, so far as such collection is concerned, is only to accept monies paid on such accounts
receivable and will not include any obligation to attempt to enforce payment thereof, or to send out bills or statements therefor.
No adjustment will be made in any of such accounts receivable without Sellers’ permission. Sellers reserve the right to pursue
legal remedies of collection upon default by the customer with respect to any receivables owed to Sellers.

 

(b) Manufacturer
Payments. The Parties shall use their commercially reasonable efforts to ensure that (i) amounts due to Sellers but collected
by Buyer (e.g., Manufacturer receivables, Manufacturer credits relating to items such as warranty claims or other claims, credit
card payments, etc.) arising out of or in connection with the operation of the Dealerships prior to Closing will be paid over to
Sellers promptly; (ii) amounts due to Buyer but collected by Sellers arising out of or in connection with the operation of the
Dealerships on or following the Closing or as provided in this Agreement will be paid over to Buyer promptly; (iii) amounts paid
by Sellers but owed by Buyer as a result of Manufacturer erroneously billing Sellers for items arising out of or in connection
with the operation of the Dealerships following Closing will be paid over to Sellers promptly; and (iv) amounts paid by Buyer but
owed by Sellers (e.g., any finance contract chargebacks, insurance (e.g. credit life, accident and health, extended warranty, etc.)
chargebacks, or repossessions and all rebates to Sellers’ customers of premiums for credit life insurance, credit accident
and health insurance, mechanical insurance coverage and GAP insurance) as a result of Manufacturer erroneously billing Buyer for
items arising out of or in connection with the operation of the Dealerships prior to Closing will be paid over to Buyer promptly.
This section survives Closing indefinitely. If there are vehicles in-transit on the Closing Date (whether or not they are physically
present) that have not been funded by Sellers’ floor plan lender and the Parties do not know whether they will be paid for
by Buyer’s floor plan lender or Sellers’ floor plan lender, then the Parties may separately schedule those vehicles,
Buyer will buy them but not pay for them, and, if such vehicles are funded by Sellers’ floor plan lender, then Sellers shall
notify Buyer and Buyer shall promptly pay Sellers’ floor plan lender such amounts. Any other payments related to such vehicles
misdirected by the Manufacturer will be redistributed as contemplated by this Section 12(b).

 

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13. Pre-Closing
Covenants.

 

(a) Pre-Closing.
Promptly upon the execution of this Agreement, Sellers shall notify the Manufacturer in writing regarding the transactions contemplated
by this Agreement and shall provide Buyer's counsel with a copy of same. Buyer (or its affiliate) shall promptly apply to the Manufacturer
for the issuance of a contractual right to operate an automobile dealership upon the Dealership Premises. The Parties shall use
commercially reasonable best efforts to obtain Manufacturer approval as soon as possible. If Buyer determines that an action before
the appropriate Florida governmental authority is necessary to compel Manufacturer approval, then Buyer may elect in its sole discretion
to initiate such action in Sellers’ name at Buyer’s expense. Sellers and Principal shall promptly provide the requisite
information, documents and access necessary to prepare for Closing and ensure a seamless operational transfer of the Dealership
Assets. Effective as of the Closing, Sellers shall terminate their dealer sales and service agreements with the Manufacturer and
execute and deliver all of the Manufacturer’s customary documents and promptly remove Manufacturer’s intellectual property
from all publicly visible assets in every form and medium (i.e., retained internet sites, signs, etc.). Sellers shall fully cooperate
with Buyer, and take all reasonable steps to assist Buyer, in Buyer’s efforts to obtain its own similar dealer sales and
service agreements with the Manufacturer. All actions to be taken at the Closing pursuant to this Agreement will be deemed to have
occurred simultaneously, and no action, document or transaction will be deemed to have been taken, delivered or effected, until
all such actions, documents and transactions have been taken, delivered or effected. Promptly after the Closing, Sellers shall
transfer to Buyer certificates of title or origin for all vehicles and all of its registration lists, owner follow-up lists and
service files on hand as of the Closing, provided that such lists and files relate to the Dealership Assets. If Sellers
present assets for purchase post-Closing that would have otherwise been Dealership Assets, then such assets may be purchased at
a mutually agreed to price or otherwise retained by Sellers.  This does not apply to in-transit vehicles from the factory.
Buyer shall retain and safeguard the pre-Closing customer paper deal jackets retained by Buyer in accordance with law, and, until
Buyer destroys such records in accordance with company policy in effect from time to time, Sellers shall have reasonable access
to Sellers’ pre-Closing customer records (e.g., paper deal jackets) and any records related to Assumed Contracts after the
Closing for any legitimate purpose, such as (by way of example and not by limitation) for resolving customer inquiries.

 

(b) Dealership
Operations Pending Closing. Pending Closing, Sellers shall continue to operate the Dealerships in substantially the same manner
as they have been operated by Sellers in the past and Sellers shall: (i) use commercially reasonable efforts to maintain working
relationships with all suppliers, customers, employees and others having contact with the Dealerships and bring all payables current
as of the Closing Date; (ii) maintain current insurance policies in full force and effect; (iii) exercise reasonable diligence
in safeguarding and maintaining the confidentiality of all books, reports and data pertaining to the Dealerships, including use
its best efforts to ensure that Sellers’ sales and service records remain adequately protected; failure to do so in any material
way shall be a breach of this Agreement; (iv) except as in the ordinary course of business or in furtherance of past practice,
not grant increases in salary, pay or other employment related benefits to any Dealership officers or employees or allow, suggest
or require employees to take unused vacation, in every case, without the written consent of Buyer; (v) not conduct any liquidation,
close-out or going out of business sale or, except in the ordinary course of business, purchase more than $20,000 in Fixed Assets
at once or in the aggregate in any month; (vi) not remove any Fixed Assets from the Dealership Premises prior to Closing except
in the ordinary course of business; (vii) except as in the ordinary course of business or in furtherance of past practice, not
enter into any contract or agreement which is not terminable without penalty on not more than 30 days’ notice and/or which
provides for payment by the Dealerships (whether actual or accrued) in excess of $10,000.00 without the prior written consent of
Buyer; (viii) not transfer any inventory or employee of the Dealerships to Sellers’ (or Sellers’ owners’) other
business, or transfer any inventory or employee of any of Sellers’ (or its owners’) other businesses to the Dealerships;
and (ix) not take or permit any action which would result in Sellers’ representations or warranties becoming incorrect or
untrue in any material respect.

 

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(c) No
Negotiations or Discussions. Until the Closing Date, Sellers and Principal shall deal exclusively with Buyer regarding the
sale of the Dealership Assets and the transactions contemplated by the Real Estate Contract. Sellers and Principals shall not pursue,
initiate, encourage or engage in any negotiations or discussions with, or provide any information to, any person or entity (other
than Buyer and its representatives and affiliates) regarding the sale or possible sale to any such person or entity of the Dealership
Assets, Dealership Premises or Sellers’ equity or any merger, consolidation, joint venture, management agreement, or any
other transaction of any nature with Sellers or Principal, which would hinder or frustrate Buyer from closing in accordance with
the terms of this Agreement (a “Prohibited Discussion”). If any person or entity other than Buyer initiates
a Prohibited Discussion, then Sellers or Principal (as the case may be) shall inform Buyer in writing and inform such person or
entity of the existence of this Agreement, and that any Prohibited Discussion would constitute a violation of this Agreement.

 

14. Indemnification.
Except as expressly written in this Agreement, Buyer is not assuming any liabilities or obligations of Sellers or Principal whether
absolute, contingent, accrued, known or unknown. Examples of liabilities that may exist, which Buyer is not assuming include, but
are not limited to, the following (collectively, “Liabilities Not Assumed”): (1) violations of any local,
state, or federal Environmental Laws or the actual, alleged or threatened discharge, dispersal, seepage, migration, release or
escape of hazardous materials or other nuisances into the environment (including the pre-Closing management and off-site disposal
of waste oil, used oil filters and other industrial wastes and any fines or penalties associated with pre-Closing Environmental
Law violations); (2) violations of any applicable law relating to labor or employment, including violations of any collective bargaining
agreement; (3) violations of, failure to comply with, or any obligation arising under, any applicable law relating to any welfare,
retirement, vacation or other benefit plan or any plan covered by the Employee Retirement Income Security Act of 1974, as amended,
or the failure to comply with the continuation coverage requirements of Title X of the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended; (4) any pending or threatened law suit, claim or other action against Seller, whether from personal injury,
wrongful death or property damage, or whether arising out of employment or a contractual or alleged contractual right; (5) any
finance contract chargebacks, insurance (e.g. credit life, accident and health, extended warranty, etc.) chargebacks, or repossessions
and all rebates to Sellers’ customers of premiums for credit life insurance, credit accident and health insurance, mechanical
insurance coverage and GAP insurance; and (6) any tax liabilities for any period or portion thereof ending by the Closing Date.

 

    Page 15 of 29

     

    

 

(a) Indemnification
by Sellers and Principal. Sellers and Principal, jointly and severally, shall indemnify, defend, and hold harmless Buyer, its
affiliates and subsidiaries, and their respective owners, general partners, partners, managers, members, controlling persons, directors,
officers, employees, agents, attorneys, and their successors and assigns (collectively, the “Buyer Indemnified Parties”)
from and against, and to pay to Buyer Indemnified Parties the amount of, all losses, claims, obligations, demands, assessments,
penalties, fines, forfeitures, liabilities, costs, and other damages, including reasonable attorneys’ fees and expenses,
whether or not involving a third-party claim (collectively, “Damages”), arising directly or indirectly
from (i) Sellers’ or Principal's breach of this Agreement, including any representations or warranties herein; (ii) all Liabilities
Not Assumed; and (iii) Sellers’, Principal's, the Dealerships’ or Sellers’ employee’s act or omission prior
to the Closing Date (e.g., the Dealerships’ operations up to the Closing Date).

 

(b) Indemnification
by Buyer. Buyer shall indemnify, defend, and hold harmless Sellers and Sellers’ owners, controlling persons, directors,
officers, employees, agents, attorneys, and affiliates, and Principal and their affiliates, heirs, successors, assigns, and personal
representatives (collectively, the “Seller Indemnified Parties”, and together with Buyer Indemnified
Parties, the “Indemnified Parties”) from and against, and to pay to the Seller Indemnified Parties the
amount of, all Damages arising directly or indirectly from (i) Buyer’s breach of this Agreement, including any representations
or warranties herein; (ii) relating to any of the Assumed Contracts arising on or after the Closing Date; or (iii) any act or omission
of Buyer, the Dealerships or Buyer’s employees on or after the Closing Date (e.g., the Dealerships’ operations on and
after the Closing Date).

 

(c) Expiration
of Indemnification Obligations. Except as otherwise expressly provided in this Agreement, the rights of the Indemnified Parties
to indemnification with respect to breaches of representations and warranties will expire and be of no further effect after the
second (2nd) anniversary of the Closing Date, and accordingly no Indemnified Party may seek indemnification under this
Agreement with respect to breaches of representations and warranties after the second (2nd) anniversary of the Closing
Date. The foregoing notwithstanding, none of the provisions set forth in this Agreement, including but not limited to the provisions
contained in this section, will be deemed to limit the time period during which a claim based on a Party’s fraud (whether
of commission or omission), criminal conduct, or intentional wrongdoing, or a claim for breach of any covenant, may be brought.
Buyer’s right to indemnification, reimbursement or any other remedy based upon Sellers’ and Principals’ representations,
warranties, covenants and obligations in this Agreement (or any document executed in connection herewith) will not be affected
by any investigation (including any environmental investigation or assessment) conducted, or any knowledge acquired (or capable
of being acquired) at any time; provided, however, that if any actual knowledge was acquired by Buyer’s officers prior to
Closing and Buyer failed to make Sellers aware of the investigative results or knowledge and afforded Sellers an opportunity to
cure, then with respect thereto Buyer is not entitled to indemnification.

 

    Page 16 of 29

     

    

 

15. Default
& Termination. Notwithstanding any provision in this Section 15 to the contrary, no Party may terminate this
Agreement due to the breach of another Party if the first Party is in breach of this Agreement.

 

(a) Termination.
The Parties may exercise their respective rights of termination by the delivery of written notice of termination to the other Party
at any time prior to the completion of the Closing (including as provided in Section 5). A default by the “Buyer”
or the “Seller” under, and as defined in, the Real Estate Contract will be deemed to be a default hereunder by the
Buyer or Seller, respectively, and termination of the Real Estate Contract will automatically terminate this Agreement. This Agreement
and the transactions contemplated hereby may be terminated on or before the Closing Date as follows:

 

(i) 
By the mutual written agreement of the Parties, at which time the Earnest Money will be promptly paid in accordance with said written
agreement;

 

(ii) By
Buyer for any or no reason by providing written notice during the Inspection Period as provided in Section 5, at which time
the Earnest Money will be promptly paid to Buyer upon Buyer’s written notice (i.e., no permission is required from Sellers
or Principal);

 

(iii) By
Buyer if a breach of any provision of this Agreement has been committed by Sellers or Principal and such breach has not been either
(A) cured within ten (10) days (or commenced within said ten (10) day period in the event that the breach cannot be cured within
said ten (10) day period) after written notice to Sellers, or (B) waived in writing by Buyer, at which time the Earnest Money will
be promptly paid to Buyer upon the joint instructions of the Parties;

 

(iv) By
Sellers if a breach of any provision of this Agreement has been committed by Buyer and such breach has not been either (A) cured
within ten (10) days (or commenced within said ten (10) day period in the event that the breach cannot be cured within said ten
(10) day period) after written notice to Buyer, or (B) waived in writing by Sellers, at which time the Earnest Money will be promptly
paid to Sellers upon the joint instructions of the Parties;

 

(v) By
Buyer if any of the conditions to the obligations of Buyer set forth in Section 9 have not been satisfied by the third (3rd)
business day prior to the designated Closing Date Deadline (other than due to Buyer’s breach of this Agreement) and Buyer
has not by then waived such condition in writing, at which time the Earnest Money will be promptly paid to Buyer;

 

(vi) By
Sellers if Sellers’ conditions precedent to Closing in Section 10 have not been satisfied by the Closing Date Deadline
(other than due to Sellers’ breach of this Agreement) and Sellers have not then waived such condition in writing, at which
time the Earnest Money will be promptly paid to Buyer; or

 

(vii) By
Buyer or Seller, if the Closing has not occurred by the Closing Date Deadline, for any reason other than a breach by the terminating
Party, at which time the Earnest Money will be promptly paid to Buyer.

 

(b) Buyer’s
Default. If prior to Closing Buyer breaches this Agreement and fails to cure as provided above, then Sellers’ and Principals’
sole right and exclusive remedy will be to either (i) terminate this Agreement by giving written notice thereof to Buyer and then
Sellers may take the Earnest Money as liquidated damages in full settlement of all claims, remedies or causes of actions against
Buyer under this Agreement, including the remedy of specific performance and other forms of equitable relief; or (ii) within ninety
(90) days after Sellers’ initial notice of default, pursue an action in equity against Buyer for the specific performance
by Buyer of the terms and provisions of this Agreement. It is impossible to estimate more precisely the damages which might be
suffered by Sellers and Principals upon Buyer’s default. Sellers’ and Principals’ retention of the Earnest Money
pursuant to Section 15(b)(i) is intended not as a penalty, but as full liquidated damages. The right to receive and retain
the Earnest Money as full liquidated damages is Sellers’ and Principals’ sole and exclusive remedy upon a default hereunder
by Buyer.

 

    Page 17 of 29

     

    

 

(c) Seller
or Principal Default. If prior to Closing Sellers or Principal breach this Agreement and fail to cure as provided above, then
Buyer may exercise any and all rights and remedies available to it at law or in equity, including (i) an action in equity against
Sellers and/or Principal (pursuant to which Buyer is not obligated to post a bond or prove special damages or irreparable injury)
for the specific performance by Sellers and Principal of the terms and provisions of this Agreement; and (if specific performance
is unavailable)/or (ii) the right to terminate this Agreement by giving written notice of such termination to Sellers and Principal
and receive a full refund of the Earnest Money without prejudice to any of Buyer’s rights or remedies including an action
for actual damages.

 

16. Miscellaneous.

 

(a) Transaction
& Enforcement Costs. Except as otherwise provided in Section 5 herein, each Party shall bear its own costs and expenses,
including legal and accounting fees, incurred in connection with this Agreement and the transactions contemplated hereby, and shall
pay such costs and expenses whether or not the Closing occurs. Upon any litigation between or among the Parties to enforce any
provisions or rights hereunder, the unsuccessful Party shall pay to the successful Party therein all costs and expenses of such
Party (and any of such Party’s agents, such as attorneys or accountants) expressly including, but not limited to, reasonable
attorneys’ fees and court costs incurred therein by such successful Party, which costs, expenses and attorneys’ fees
will be included in and as a part of any judgment rendered in such litigation.

 

(b) Confidentiality.
Each Party and its representatives shall hold in strict confidence all data and information obtained in connection with this transaction,
including all financial and other information of or related to the Dealerships and the terms of this Agreement, and shall not directly
or indirectly at any time reveal, report, publish, disclose or transfer to any person any of such data and information or utilize
any of such data or information for any purpose; provided, however, each Party may disclose information as required
by law and to Manufacturer and legal, tax, accounting advisors, lenders and potential lenders and other parties deemed by a Party
to be necessary or appropriate in connection with the transactions described herein, provided that such persons acknowledge that
they too are bound by the confidentiality provisions contained herein. Notwithstanding any contrary provision herein, Buyer may
notify governmental organizations (e.g., the Security and Exchange Commission) of this Agreement and the transactions contemplated
hereby by filing an unredacted copy of this Agreement.

 

(c) Relationship
& Authority. Each Party is acting as an independent contractor. Each Party is responsible for all taxes relating to its
operation, including payroll taxes for its employees and nothing in this Agreement is intended to create a relationship, express
or implied, of employer-employee or partnership or joint venture between or among any Party. Each individual executing this instrument
on behalf of a Party individually represents and warrants that such Party is validly existing, that such execution has been duly
authorized, that the terms of the instrument will be binding upon the Party, and that such individual is duly authorized to execute
this instrument on behalf of such Party.

 

    Page 18 of 29

     

    

 

(d) Notices.
All notices and other communications provided for hereunder will be in writing, unless otherwise specified, and will be deemed
to have been duly given if delivered personally, via e-mail, via Federal Express or other nationally recognized courier, or mailed,
registered or certified mail, postage prepaid, to the addresses on the signature pages hereof or at such other addresses as a Party
may designate from time to time in writing. Notices will be effective upon receipt or refusal to accept delivery. Notices on behalf
of either Party may be given by the attorneys representing such Party.

 

(e) Integration;
Amendments & Time. This Agreement and the Real Estate Contract contain the entire understanding between the Parties and
supersede any prior understanding and/or oral agreements between them respecting the subject matter of this Agreement (including
that certain letter agreement among Buyer and Sellers dated August 21, 2020). Any modification or amendment of this Agreement will
be in writing and executed by Sellers, Principal and Buyer. Time is of the essence in this Agreement. If the last day to perform
under a provision of this Agreement or the final day of any period (e.g., Inspection Period or Closing Date Deadline) falls on
a Saturday, Sunday, or legal holiday, then such performance deadline or period is automatically extended through the next day which
is not a Saturday, Sunday, or legal holiday.

 

(f) Interpretation
& Administration. The words “include”, “includes”, “included”, “including”
and “such as” do not limit the preceding words or terms and are deemed to be followed by the words “without limitation”.
The Parties have a duty of good faith and fair dealing. All captions and headings contained in this Agreement are for convenience
of reference only and will not be construed to limit or extend the terms or conditions of this Agreement. Any schedule or exhibit
referenced herein but not present on the Effective Date shall be provided by Sellers at least five days prior to expiration of
the Inspection Period, otherwise, the Inspection Period shall be extended so that Buyer has five days to consider such information.
All pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural, as the context may require.
All terms defined in this Agreement in their singular or plural forms, have correlative meanings when used herein in their plural
or singular forms, respectively. Each Party and its counsel have reviewed this Agreement and the rule of construction that any
ambiguities are to be resolved against the drafter will not be employed in the interpretation of this Agreement or any amendments,
schedules or exhibits hereto. Except as expressly provided herein (e.g., “industry standard depreciation” or “as
reflected on Manufacturer’s statement”), all accounting matters required or contemplated by this Agreement will be
in accordance with generally accepted accounting principles. This Agreement may be executed in one or more counterparts and delivered
by e-mail or facsimile, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together,
will be deemed to constitute one and the same agreement. This Agreement will be binding upon and inure to the benefit of the Parties,
their successors and permitted assigns. No Party may assign this Agreement or any rights, interests or obligations hereunder without
the prior written approval of the other Parties hereto; provided, however, Buyer may assign or otherwise transfer all of Buyer’s
rights, obligations and benefits hereunder to any entities owned or controlled by, or under common control with, Buyer without
Sellers’ or Principal's consent. Notwithstanding any such assignment, Buyer will remain liable as a guarantor of the obligations
of the assignee until Closing is consummated and all references to Buyer herein are deemed a reference to both Buyer as of the
Effective Date and any applicable assignees of that Buyer. The invalidity of any one or more phrases, sentences, clauses, paragraphs,
or sections of this Agreement will not affect the remaining portions of this Agreement. Sections 14 through 17 of
this Agreement will survive the expiration and termination of this Agreement. No failure or delay by any Party to enforce any right
specified herein will operate as a waiver of such right, nor will any single partial exercise of a right preclude any further or
later enforcement of the right.

 

    Page 19 of 29

     

    

 

(g) Further
Assurances. At the request of Buyer and at Buyer’s expense, Sellers and Principal shall cooperate in the preparation
by Buyer of all filings to be made by Buyer with the Securities and Exchange Commission including any periodic filings and any
filing with respect to a registered offering of its securities by Buyer and the closing of the offering registered thereby. Upon
Buyer’s request at any time, Sellers and Principals shall take any act, including executing and delivering any document,
necessary or advisable to transfer to and vest in Buyer, and protect its rights, title and interest in and enjoyment of, all the
Dealership Assets and Dealership Premises and otherwise to carry out the provisions of this Agreement (including user names and
passwords for sites and accounts for or related to social media, directory assistance or reputation management and Closing Memorandum
error corrections). Such further acts include terminations or transfers of trade name filings and domain name assignments and assisting
Buyer in its efforts to be restated as a successor employer for employment tax purposes with respect to the Sellers’ employees
hired by the Buyer, including, but not limited to, the annual wage limitation for FICA tax, and to meet the requirements of Revenue
Procedure 2004-53, Section 4, Standard Procedure, for federal payroll tax purposes.

 

(h) Escrow
Agent. Escrow Agent’s duties pursuant to this Agreement are purely ministerial in nature, and the Escrow Agent shall
incur no liability whatsoever except for its willful misconduct or gross negligence, so long as the Escrow Agent is acting in good
faith. The Parties hereby release the Escrow Agent from any liability for any error of judgment or for any act done or omitted
to be done by the Escrow Agent in the good faith performance of its duties hereunder and do each hereby indemnify the Escrow Agent
against, and shall hold, save, and defend the Escrow Agent harmless from, any costs, liabilities, and expenses incurred by the
Escrow Agent in serving as Escrow Agent hereunder and in faithfully discharging its duties and obligations hereunder. The Escrow
Agent is acting as a stakeholder only with respect to the Earnest Money. If there is any dispute as to whether the Escrow Agent
is obligated to deliver the Earnest Money or as to whom the Earnest Money is to be delivered, the Escrow Agent may refuse to make
any delivery and may continue to hold the Earnest Money until receipt by the Escrow Agent of an authorization in writing, signed
by Sellers and Buyer, directing the disposition of the Earnest Money, or, in the absence of such written authorization, the Escrow
Agent may hold the Earnest Money until a final determination of the rights of the Parties in an appropriate judicial proceeding.
If such written authorization is not given, or a proceeding for such determination is not begun, within thirty (30) days after
notice to the Escrow Agent of such dispute, the Escrow Agent may bring an appropriate action or proceeding for leave to deposit
the Earnest Money in a court of competent jurisdiction pending such determination. The Escrow Agent shall be reimbursed for all
costs and expenses of such action or proceeding, including reasonable attorneys’ fees and disbursements, by the Party determined
not to be entitled to the Earnest Money. Upon making delivery of the Earnest Money in any of the manners herein provided, the Escrow
Agent shall have no further liability or obligation hereunder. The Escrow Agent shall execute the Escrow Receipt attached hereto
in order to confirm that it has received the Earnest Money and is holding the same on deposit in accordance with the provisions
hereof.

 

    Page 20 of 29

     

    

 

(i) Applicable
Law & Venue. This Agreement will be governed by and construed and enforced in
accordance with the internal laws and judicial decisions of the State of Florida without regard to conflict of law provisions thereof.
Any litigation, action or proceeding arising out of or relating to this Agreement will be held exclusively in any Florida state
or Federal court. Each Party waives any objection which it might have now or hereafter to the venue of any such litigation, action
or proceeding, submits to the sole and exclusive jurisdiction of any such court and waives any claim or defense of inconvenient
forum. Each Party consents to service of process at such Party’s address as provided herein (and updated in writing from
time to time).

 

(j) JURY
WAIVER. IN ANY CIVIL ACTION, COUNTERCLAIM OR PROCEEDING, WHETHER AT LAW OR IN EQUITY, WHICH ARISES OUT OF, CONCERNS OR RELATES
TO THIS AGREEMENT, ANY AND ALL TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE PERFORMANCE OF THIS AGREEMENT OR THE RELATIONSHIP
CREATED BY THIS AGREEMENT, WHETHER SOUNDING IN CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE, TRIAL SHALL BE TO A COURT OF COMPETENT
JURISDICTION AND NOT TO A JURY. THE PARTIES HEREBY IRREVOCABLY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY. ANY PARTY MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE OTHER PARTY TO
THIS AGREEMENT OF THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. THIS WAIVER IS KNOWINGLY, INTENTIONALLY AND VOLUNTARILY MADE BY EACH
PARTY AND EACH PARTY HEREBY REPRESENTS AND WARRANTS THAT NO PERSONS OR ENTITIES ACTING ON BEHALF OF THE OTHER PARTY HAS MADE ANY
REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. EACH PARTY ACKNOWLEDGES
TO THE OTHER THAT IT HAS READ AND UNDERSTANDS THE EFFECT OF THIS JURY WAIVER PROVISION.

 

17. Joint
& Several Liability. Each Seller’s and Principal's representations, warranties,
covenants, duties, obligations and agreements in this Agreement are the joint and several representations, warranties, covenants,
duties obligations and agreements of both Sellers and Principal.

 

    Page 21 of 29

     

    

IN WITNESS WHEREOF, the Parties executed
and delivered this Agreement as of the Effective Date.

 

	Fuccillo Affiliates of Florida, Inc. and Fuccillo Associates of Florida, Inc., Florida corporations, as Seller	 	LMP Automotive Holdings, Inc., a Delaware corporation, as Buyer
	 	 	 	 	 
	By:	 	 	By:	 
	 	William B. Fuccillo, Jr., Vice President of both	 	 	Sam Tawfik, Chief Executive Officer

 

	 	Notice Address:	 	 	Notice Address:
	 	10524 U.S. Route 11, P.O. Box 69	 	 	601 N. State Road 7
	 	Adams, New York 13605	 	 	Plantation, FL 33179
	 	 	 	 	sam@lmpmotors.com
	 	 	 	 	richard.aldahan@lmpmotors.com

 

	Copy to:	Robert S. Scalione, Esq.	 	 	 
	 	Melvin & Melvin, PLLC	 	Copy to:	Nolen, PLLC
	 	217 South Salina Street	 	 	6000 Monroe Road, Suite 350
	 	Syracuse, New York 13202	 	 	Charlotte, North Carolina 28212
	 	(O) 315-422-1311, Ext. 160	 	 	Brian.Nolen@NolenPLLC.com
	 	(C) 315-382-2926	 	 	 
	 	rscalione@melvinlaw.com	 	 	 

 

	 	 	 
	
        William B. Fuccillo,
        Sr., individually, as Principal by William B. Fuccillo, Jr., his attorney-in-fact pursuant to that certain Durable Power
        of Attorney dated July 31, 2020

         

        Notice Address:

        10524 U.S. Route 11

        P.O. Box 69

        Adams, New York 13605
	 	 

 

    Page 22 of 29

     

    

 

Schedule 3(c) – Assumed Contracts

 

(Completed during the Inspection Period)

 

	Counter
    Party	 	Date
    and Term	 	Cost	 	Termination
    

    Rights
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

    Page 23 of 29

     

    

EXHIBIT A

 

TEMPORARY LICENSE USE AGREEMENT

 

Reference is hereby made to that certain
Dealership Asset Purchase Agreement dated as of September [●], 2020 (the “Asset Purchase Agreement”),
by and among [●] (“Seller”), [●], William B. Fuccillo, Sr. (“Principal”),
and (the “Buyer”). Capitalized terms used herein and not defined have the meaning of that term(s) as
defined in the Asset Purchase Agreement.

 

Seller hereby grants the Buyer the authority
to use the Seller’s motor vehicle sales licenses and dealer plates (collectively, the “Dealer Licenses”)
in the operation of the Dealership commencing at 12:01 a.m. on the date of this agreement and terminating on the earlier of (x)
the Buyer obtaining its Licenses in its own name or (y) at 12:00 Noon on the forty-fifth (45th) days after the date
of this Agreement (“Temporary Use Period”). During the Temporary Use Period, only the Buyer may operate
under the Dealer License. The temporary use of the dealer plates hereunder may only be used for (i) non-overnight test drives and
only if an employee of the Purchaser accompanies the customer during the test drive (if permitted by applicable pandemic response
rules); (ii) manager's demonstration vehicles; and (iii) the relocation of vehicles to and from storage lot(s) to the Dealership.
The temporary use of the dealer plates hereunder shall not be used for overnight test drives or on service loaners.

 

As a material inducement to the Seller to
permit the Buyer's use of the Dealer Licenses (i) the Buyer represents and warrants that it has applied for, and will use commercially
reasonable efforts to obtain, its own license with the Department of Revenue and other regulatory authorities of the State of Florida
as promptly as practicable following the date hereof and (ii) the Buyer shall defend, indemnify and hold the Seller and any of
its affiliates, officers, employees or shareholders, harmless from and against any cost, liability, damages, losses or fines, including
reasonable attorneys' fees, incurred by the Seller, or any of its respective affiliates, officers, employees or shareholders in
connection with or as a result of the Buyer's or its officers, employees, shareholders and/or representatives, use or misuse of
the Dealer License. This is an integrated agreement that constitutes the entire understanding between the parties with respect
to the subject matter herein. Nothing contained in this Agreement is intended to effectuate a transfer or assignment from the Seller
to the Buyer of any license held by the Seller or to grant rights to the Buyer that are prohibited by applicable Florida law. The
Buyer agrees to add the Seller as an additional insured to its general liability insurance policy for the term of this Temporary
License Use Agreement plus ten (10) days and to provide written proof to the Seller that the Seller is an additional named insured,
which shall state such insurance shall not be cancelled within thirty (30) days prior written notice to the Seller.

 

During the Temporary Use Period, the following
shall apply:

 

1. Seller
shall maintain the Dealer Licenses as current and in good standing.

 

2. Buyer
shall use the Dealer Licenses at its own expense.

 

3. Buyer
will at all times provide Seller with all documents and information regarding Buyer's use of such rights as Seller may reasonably
request and Seller shall reasonably cooperate with Buyer in conjunction with said use.

 

    Page 24 of 29

     

    

 

4. This
Agreement shall be construed, enforced and interpreted under and in accordance with the laws of the State of Florida.

 

5. Nothing
contained in this Agreement, whether expressed or implied, is intended to confirm any rights or remedies under or by reason of
this Agreement on any person other than the parties hereto and their respective successors and assigns nor is anything in this
Agreement intended to release or discharge the obligations or liabilities of any third person to any party to this Agreement nor
any right of subrogation or action over or against any party to this Agreement.

 

6. No
party hereto may transfer or assign their rights or obligations under this Agreement to any third party without first obtaining
the prior written consent of the other parties hereto.

 

7. No
waiver of any breach or default hereunder shall be considered valid unless in writing and signed by the party giving such waiver
and no such waiver once given shall be deemed to constitute a waiver for any subsequent breach or default of the same or similar
nature.

 

8. This
Agreement constitutes the complete agreement between the parties hereto and incorporates all prior discussions, agreements and
representations made in regard to the matters set forth herein. This Agreement may not be amended, modified or changed except by
a writing signed by the party to be changed by said amendment, change or modification.

 

9. This
Agreement may be executed in any number of counterparts and delivered by e-mail or facsimile, each of which when executed will
be an original, but such counterparts will together constitute one and the same instrument.

 

	 	SELLER:
	 	 
	 	[●]
	 	 	 
	 	By	                       
	 	 	WILLIAM B. FUCCILLO, JR.
	 	 	Vice President
	 	 	 
	 	BUYER:
	 	 
	 	[●]
	 	 	 
	 	By	 
	 	Name	
	 	Title	

 

 

    Page 25 of 29

     

    

 

EXHIBIT B

 

NON-COMPETITION AGREEMENT

This NON-COMPETITION AGREEMENT (this “Agreement”) is made and entered into as of [●], 2020,
by and among Fuccillo Affiliates of Florida, Inc., Fuccillo Associates of Florida, Inc., and William B. Fuccillo, Sr., an individual
(collectively, “Sellers”), and [●] and [●] (the “Buyers”).

 

WHEREAS, Sellers have been involved
in the ownership or operation of two KIA motor vehicle dealerships located in Cape Coral and Port Charlotte, Florida (the “Dealerships”)
for several years and have developed a significant reputation in the Cape Coral and Port Charlotte metropolitan areas and the surrounding
regions in connection with sales, lease and service of motor vehicles and with the general operation of the Dealerships;

 

WHEREAS, Buyers (as co-assignees
of LMP Automotive Holdings, Inc.), Principal and the Dealerships’ prior owners are parties to a Dealership Asset Purchase
Agreement effective as of September [●], 2020, regarding the Dealerships (as it may be amended or assigned, the “APA”;
undefined capitalized terms used herein are used as defined in the APA); and

 

WHEREAS, in order to protect the
future business operations of Buyers from such competition Sellers have agreed to refrain from taking certain actions as detailed
herein.

 

NOW, THEREFORE, in exchange
for $10.00 and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

 

1. Term.
The term of this Agreement is two (2) years commencing on the Closing Date (the “Term”); provided,
however, the Term will be automatically extended by a period of time equal to the time(s) during which a Seller is in breach
of this Agreement.

 

2. Non-competition.
During the Term, Sellers shall not in any capacity or role participate in any business engaged in the retail sale, lease, repair
or service of new motor vehicles, parts or accessories in the following jurisdictions (collectively, the “Restricted
Territory”):

 

		(a)	Charlotte County, Florida;

		(b)	Glades County, Florida;

		(c)	Hendry County, Florida;

		(d)	Collier County, Florida;

		(e)	Sarasota County, Florida;

		(f)	De Soto County, Florida;

		(g)	Highlands County, Florida; or

		(h)	Glades County, Florida.

 

Nothing herein prohibits the continued operation of Fuccillo
Nissan of Clearwater at its current location or Fuccillo Kia of Clermont at its current location upon its completion of construction
in 2021.

 

3. No
solicitation or hiring. During the first two (2) years of the Term, without the prior express written consent of Buyers, Sellers
shall not (and shall not attempt to, permit or cause any of their respective affiliates, subsidiaries, contractors or representatives
or their respective owners, directors, officers, employees, contractors, agents, representatives or third parties to) hire or solicit
to hire any Dealership employee that worked for a Dealership at any time during the period of time from August 21, 2020, through
the Term (each, a “Restricted Party”). Notwithstanding the foregoing, nothing contained herein prohibits
Sellers, or any affiliates of Sellers, from placing general advertisement for employment.

 

    Page 26 of 29

     

    

 

4. Enforcement.

 

(a) Injunctive
Relief. Irreparable damage will result to Buyers upon Sellers’ breach of this Agreement, and upon such a Seller breach,
Buyer will be entitled, in addition to any other rights and remedies available at law or in equity, to an injunction to restrain
and enjoin Sellers from violating the restrictive covenants in this Agreement (collectively, the “Restrictive Covenants”)
without the necessity of posting any bond or proving special damages or irreparable injury. Sellers shall be responsible for all
expenses incurred by Buyers, including reasonable legal fees of Buyers in any litigation involving Buyers and Sellers involving
this Agreement in which Buyers prevail. If there is a suit in equity by Buyers against Sellers to enforce this Agreement, and the
court refuses for any reason to enforce the Agreement by injunction, then such suit in equity will not be a bar to a later suit
to recover damages.

 

(b) Interpretation;
Severability. The parties hereto do not intend for the Restrictive Covenants to violate any public policy or statutory or common
law. If a court of competent jurisdiction renders a ruling holding that any one or more of the provisions of this Agreement, including
the stated term and/or geographic coverage of the Restrictive Covenants, constitute an unreasonable restriction, then the Restrictive
Covenants will not be rendered void but will apply to such extent and as to such time period and geographic areas as the court
may determine constitutes a reasonable restriction under the circumstances. For clarity, put another way, a court shall be allowed
to revise the restrictions to cover the maximum period, scope and area permitted by law. The parties specifically intend that the
Restrictive Covenants will be construed as a series of separate and independent covenants for each restrictive action and for each
distinct geographic area contained within the stated territory. Sellers’ representations,
warranties, covenants, duties, obligations and agreements in this Agreement are the joint and several representations, warranties,
covenants, duties, obligations and agreements of Sellers and each person or entity included in the definition of “Sellers”
in the Preamble.

 

5. Assignment;
Incorporation by Reference. Buyers may freely assign their rights and duties under this Agreement by providing Sellers written
notice. Sections 16 and 17 of the APA are incorporated herein by this reference, mutatis mutandis.

 

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IN WITNESS WHEREOF the parties hereto
executed and delivered this Agreement as of the date in the Preamble above.

 

	Fuccillo Affiliates of Florida, Inc. and Fuccillo Associates of Florida, Inc., Florida corporations, as Sellers	 	[●], a [●], and [●], a [●] as Buyer
	 	 	 	 	 
	By:	 	 	By:  	 
	 	William B. Fuccillo, JR., Vice	 	 	Name & Title:
	 	President of Both	 	 	 

 

	 	 
	William B. Fuccillo, Sr., individually, as Principal by William B. Fuccillo, Jr., his attorney-in-fact pursuant to that certain Durable Power of Attorney dated July 31, 2020	 

 

    Page 28 of 29

     

    

 

ESCROW RECEIPT

 

“Fuccillo KIA of Cape Coral”
& “Fuccillo KIA of Port Charlotte” 

Dealership Asset Purchase Agreement

 

Escrow Agent agrees to be bound by the Dealership Asset Purchase
Agreement and acknowledges receipt of:

 

		☐	A. Executed copies of the Dealership Asset Purchase Agreement on
September __, 2020;

 

		☐	B. Earnest
                                         Money in the amount of $1,000,000.00 on September __, 2020.

 

The Effective Date of the Dealership Asset Purchase Agreement
is the first date on which Escrow Agent was in possession of both items described above, and thus, the Effective Date is September
__, 2020.

 

Escrow Agent:

 

Anthony J. Gargano,
P.A.

 

	By:	 	 
	 	Anthony J. Gargano, Esq.	 
	 	 	 
	 	Dated:  September __, 2020	 
	 	 	 
	 	Notice Address:	 
	 	2240 West First Street, Suite 105	 
	 	Fort Myers, Florida 33901	 
	 	Office Phone: 239-337-2280 Ext. 3	 
	 	Cell Phone: 239-229-7166	 
	 	Fax: 239-337-7705	 
	 	TGargano@GarganoLaw.com	 

 

Escrow Agent acknowledges having reviewed this Dealership Asset
Purchase Agreement and will be bound by those provisions thereof which pertain to Escrow Agent and its duties thereunder.

 

 

 

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