Document:

FIRST AMENDMENT TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

AND OTHER LOAN DOCUMENTS

  

This FIRST AMENDMENT
TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT AND OTHER LOAN DOCUMENTS (this “Amendment”) is made as of
the 28th day of April, 2014, by and among BG STAFFING, INC., a Delaware corporation, f/k/a LTN Staffing, LLC, a Delaware limited
liability company (“BG Staffing, Inc.”), BG STAFFING, LLC, a Delaware limited liability company (“BG
Staffing, LLC”), BG PERSONNEL SERVICES, LP, a Texas limited partnership (“BG Personnel Services”),
BG PERSONNEL, LP, a Texas limited partnership (“BG Personnel”), and B G STAFF SERVICES INC., a Texas corporation
(“B G Staff Services”, and together with BG Staffing, Inc., BG Staffing, LLC, BG Personnel Services and BG Personnel,
collectively, “Borrowers” and each a “Borrower”), and FIFTH THIRD BANK, an Ohio banking corporation,
successor by merger with Fifth Third Bank, a Michigan banking corporation (“Lender”).

 

W I T N E S S E T H:

 

WHEREAS, Borrowers
and Lender are parties to that certain Amended and Restated Loan and Security Agreement dated as of January 29, 2014 (as amended,
restated, modified or supplemented and in effect from time to time, the “Loan Agreement”); and

 

WHEREAS, Borrowers
have requested that Lender amend the Loan Agreement and the other Loan Documents in certain respects, and Lender is agreeable to
such request, on and subject to the terms and conditions set forth herein.

 

NOW, THEREFORE, the parties hereto hereby
agree as follows:

 

1.Definitions.
Capitalized terms used herein which are defined in the Loan Agreement and not otherwise defined herein are used with the meanings
given such terms in the Loan Agreement.

 

2.Amendments
to Loan Agreement. The Loan Agreement is hereby amended as follows:

 

(a)by amending and
restating the following definitions in Section 1.1 in their respective entireties to read as follows:

 

“Borrowing Base Amount”
shall mean:

 

(a)(i)
for the period from March 30, 2014 through and including August 31, 2014, an amount equal to eighty-five percent (85%) of the net
amount (after deduction of such reserves and allowances as Lender deems proper and necessary, including an accrual for sales rebates)
of all Eligible Accounts, and (ii) on September 1, 2014 and thereafter, an amount equal to eighty percent (80%) of the net amount
(after deduction of such reserves and allowances as Lender deems proper and necessary, including an accrual for sales rebates)
of all Eligible Accounts; plus

 

    	 

    	 

    

 

(b)an
amount equal to the lesser of (i) (A) for the period from March 30, 2014 through and including August 31, 2014, an amount equal
to eighty-five percent (85%) of the net amount (after deduction of such reserves and allowances as Lender deems proper and necessary)
of all Eligible Unbilled Accounts, and (B) on September 1, 2014 and thereafter, an amount equal to eighty percent (80%) of the
net amount (after deduction of such reserves and allowances as Lender deems proper and necessary) of all Eligible Unbilled Accounts,
and (ii) One Million and No/100 Dollars ($1,000,000.00).

 

  “Debt Service Coverage Ratio” shall mean the ratio of (a) consolidated EBITDA plus (i) all Earn Out Payments made by any Borrower for such period to the extent treated as an expense, plus (ii) all management fees due to Taglich Brothers, Inc. and its affiliates which Borrowers have accrued but not paid and all director fees due by BG Staffing, Inc. to its directors which Borrowers have accrued but not paid, less (iii) all distributions and dividends made to the members, shareholders or partners of Borrowers (other than distributions and/or dividends to other Borrowers), less (iv) federal and state income taxes paid by Borrowers for such period, less (v) capital expenditures (other than capital expenditures financed with the proceeds of purchase money indebtedness or capital leases to the extent permitted under this Agreement), to (b) consolidated Debt Service.

 

  “EBITDA” shall mean for any period, the consolidated net income of Borrowers, determined in accordance with GAAP consistently applied, plus (i) Interest Expense for such period, plus (ii) federal and state income taxes of Borrowers for such period, plus (iii) all depreciation and amortization of capitalized costs for such period, plus (iv) actual closing costs in an amount not to exceed $400,000 incurred by Borrowers in connection with closing the API Purchase Transaction, provided that such closing costs are verified by Lender and consented to by Lender in its sole discretion, plus (v) actual closing costs in an amount not to exceed $400,000 incurred by Borrowers in connection with closing the InStaff Purchase Transaction, provided that such closing costs are verified by Lender and consented to by Lender in its sole discretion, plus (vi) actual closing costs in an amount not to exceed $250,000 incurred by Borrowers in connection with the conversion of BG Staffing, Inc. from a limited liability company to a corporation and related transactions, provided that such closing costs are verified by Lender and consented to by Lender in its sole discretion, plus (vii) all other non-cash items. Notwithstanding the foregoing, however, for purposes of testing the Debt Service Coverage Ratio financial covenant pursuant to Section 10.1 of this Agreement, the Total Funded Indebtedness to Adjusted EBITDA Ratio financial covenant pursuant to Section 10.2 of this Agreement and the Adjusted EBITDA financial covenant pursuant to Section 10.3 of this Agreement, the following shall be permitted to be added back to EBITDA for the relevant calculation periods: (A) pre-transaction InStaff EBITDA in the amount of $60,413 for the month of January 2013, $117,224 for the month of February 2013, $336,562 for the month of March 2013, $206,803 for the month of April 2013, and $204,664 for the month of May 2013, and (B) the non-cash portion of loss on extinguishment of Debt not to exceed $960,000 for the month of February 2014.

 

    	-2-

    	 

    

 

3.Amendment
to the Other Loan Documents. The other Loan Documents are hereby amended to the extent necessary to be consistent with the
foregoing amendments to the Loan Agreement.

 

4.Reaffirmation
and Confirmation of Security Interests. Each Borrower hereby confirms to Lender that such Borrower has granted to Lender a
security interest in or Lien upon substantially all of the property of such Borrower, including, without limitation, the Collateral,
to secure the Obligations. Each Borrower hereby reaffirms its grant of such security interest and Lien to Lender for such purpose
in all respects.

 

In addition to the
foregoing:

 

(a)BG Staffing,
Inc. hereby confirms to Lender that BG Staffing, Inc. has granted to Lender a security interest in or Lien upon the Pledged Collateral
(as defined in that certain Membership Interests Security Agreement dated as of May 24, 2010 by and between BG Staffing, Inc. and
Lender (as amended, restated, modified or supplemented and in effect from time to time, the “Membership Interests Security
Agreement”)), to secure the Liabilities (as defined in the Membership Interests Security Agreement), under and pursuant
to the Membership Interests Security Agreement. BG Staffing, Inc. hereby expressly agrees that the Lien on the Pledged Collateral
shall secure all of the Liabilities (as defined in the Membership Interests Security Agreement), including, without limitation,
the Loans, and hereby reaffirms its grant of such security interest and Lien to Lender for such purpose in all respects. BG Staffing,
Inc. hereby further expressly agrees that upon consummation of the Subject Transactions, the Lien on such Pledged Collateral shall
continue to secure all of the Liabilities, including, without limitation, the Loans.

 

(b)BG Staffing,
Inc. hereby confirms to Lender that BG Staffing, Inc. has granted to Lender a security interest in or Lien upon the Pledged Collateral
(as defined in that certain Partnership Interests Security Agreement dated as of May 24, 2010 by and between BG Staffing, Inc.
and Lender (as amended, restated, modified or supplemented and in effect from time to time, the “Partnership Interests
Security Agreement”)), to secure the Liabilities (as defined in the Partnership Interests Security Agreement), under
and pursuant to the Partnership Interests Security Agreement. BG Staffing, Inc. hereby expressly agrees that the Lien on the Pledged
Collateral shall secure all of the Liabilities (as defined in the Partnership Interests Security Agreement), including, without
limitation, the Loans, and hereby reaffirms its grant of such security interest and Lien to Lender for such purpose in all respects.
BG Staffing, Inc. hereby further expressly agrees that upon consummation of the Subject Transactions, the Lien on such Pledged
Collateral shall continue to secure all of the Liabilities, including, without limitation, the Loans.

 

    	-3-

    	 

    

 

(c)BG Staffing,
LLC hereby confirms to Lender that BG Staffing, LLC has granted to Lender a security interest in or Lien upon the Pledged Collateral
(as defined in that certain Partnership Interests Security Agreement dated as of May 24, 2010 by and between BG Staffing, LLC and
Lender (as amended, restated, modified or supplemented and in effect from time to time, the “BG Staffing, LLC Partnership
Interests Security Agreement”)), to secure the Liabilities (as defined in the BG Staffing, LLC Partnership Interests
Security Agreement), under and pursuant to the BG Staffing, LLC Partnership Interests Security Agreement. BG Staffing, LLC hereby
expressly agrees that the Lien on the Pledged Collateral shall secure all of the Liabilities (as defined in the BG Staffing, LLC
Partnership Interests Security Agreement), including, without limitation, the Loans, and hereby reaffirms its grant of such security
interest and Lien to Lender for such purpose in all respects. BG Staffing hereby further expressly agrees that upon consummation
of the Subject Transactions, the Lien on such Pledged Collateral shall continue to secure all of the Liabilities, including, without
limitation, the Loans.

 

(d)BG Staffing,
Inc. hereby confirms to Lender that BG Staffing, Inc. has granted to Lender a security interest in or Lien upon the Pledged Collateral
(as defined in that certain Securities Pledge Agreement dated as of May 24, 2010 by and between BG Staffing, Inc. and Lender (as
amended, restated, modified or supplemented and in effect from time to time, the “Securities Pledge Agreement”)),
to secure the Liabilities (as defined in the Securities Pledge Agreement), under and pursuant to the Securities Pledge Agreement.
BG Staffing, Inc. hereby expressly agrees that the Lien on the Pledged Collateral shall secure all of the Liabilities (as defined
in the Securities Pledge Agreement), including, without limitation, the Loans, and hereby reaffirms its grant of such security
interest and Lien to Lender for such purpose in all respects. BG Staffing, Inc. hereby further expressly agrees that upon consummation
of the Subject Transactions, the Lien on such Pledged Collateral shall continue to secure all of the Liabilities, including, without
limitation, the Loans.

 

5.Representations
and Warranties. Each Borrower hereby represents, warrants and covenants to Lender that:

 

(a)Authorization.
Each Borrower is duly authorized to execute and deliver this Amendment and all deliveries required hereunder, and is and will continue
to be duly authorized to borrow monies under the Loan Agreement, as amended hereby, and to perform its obligations under the Loan
Agreement and the other Loan Documents.

 

(b)No Conflicts.
The execution and delivery of this Amendment and all deliveries required hereunder, and the performance by each Borrower of its
obligations under the Loan Agreement and the other Loan Documents do not and will not conflict with any provision of law or of
the charter or by-laws, operating agreement or partnership agreement of any Borrower or of any agreement binding upon any Borrower.

 

(c)Validity and
Binding Effect. This Amendment, the Loan Agreement and the other Loan Documents are a legal, valid and binding obligation of
each Borrower, enforceable against such Borrower in accordance with their respective terms, except as enforceability may be limited
by bankruptcy, insolvency or other similar laws of general application affecting the enforcement of creditors’ rights or
by general principles of equity limiting the availability of equitable remedies.

 

    	-4-

    	 

    

 

(d)No Events of
Default. As of the date hereof, no default or Event of Default under the Loan Agreement or any of the other Loan Documents
has occurred or is continuing.

 

(e)Warranties.
As of the date hereof, the representations and warranties in the Loan Agreement and the other Loan Documents are true and correct
in all material respects as though made on such date, except where a different date is specifically indicated.

 

6.Conditions
to Effectiveness. This Amendment shall be deemed to be effective as of the date hereof (the “Amendment Effective Date”),
and the effectiveness of this Amendment shall be subject to, the satisfaction of all of the following conditions:

 

(a)This Amendment,
duly authorized and fully executed by each Borrower and Lender, and the Consent and Ratification of Amended and Restated Capital
Contribution Agreement attached hereto and made a part hereof, duly authorized and fully executed by the parties thereto, shall
have been delivered to Lender.

 

(b)Payment by Borrowers
to Lender of an amendment fee in the amount of Seven Thousand Five Hundred and No/100 Dollars ($7,500.00).

 

(c)Such other documents,
instruments or agreements as Lender may reasonably request in order to effectuate fully the transactions contemplated herein shall
have been duly executed and delivered to Lender.

 

7.Costs and
Expenses. Borrowers shall jointly and severally pay all costs and expenses in connection with the preparation of this Amendment
and other related loan documents, including, without limitation, reasonable attorneys’ fees.

 

8.Further Assurances.
Each Borrower shall take such actions as are necessary or as Lender may reasonably request from time to time to ensure that the
Obligations under the Loan Documents are secured by substantially all of the assets of such Borrower, in each case as Lender may
determine, including (a) the execution and delivery of security agreements, pledge agreements, mortgages, deeds of trust, financing
statements and other documents, and the filing or recording of any of the foregoing, and (b) the delivery of certificated securities
and other collateral with respect to which perfection is obtained by possession.

 

9.Miscellaneous.

 

(a)Recitals; Captions.
The WHEREAS clauses at the beginning of this Amendment are part of this Amendment. Section captions and headings used in this Amendment
are for convenience only and are not part of and shall not affect the construction of this Amendment.

 

(b)Governing Law.
This Amendment shall be a contract made under and governed by the laws of the State of Illinois, without regard to conflict of
laws principles. Whenever possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and
valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under such law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Amendment.

 

    	-5-

    	 

    

 

(c)Counterparts.
This Amendment may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall
together constitute but one and the same document.

 

(d)Successors
and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

(e)References.
From and after the Amendment Effective Date, any reference to the Loan Agreement or the other Loan Documents contained in any notice,
request, certificate or other instrument, document or agreement executed concurrently with or after the execution and delivery
of this Amendment shall be deemed to include this Amendment unless the context shall otherwise require.

 

(f)Continued Effectiveness.
Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not serve to effect a novation
as to the Loan Agreement. The parties hereto expressly do not intend to extinguish the Loan Agreement. Instead, it is the express
intention of the parties hereto to reaffirm the indebtedness created under the Loan Agreement and secured by the Collateral. The
Loan Agreement and each of the other Loan Documents, except as modified hereby, remain in full force and effect and are hereby
reaffirmed in all respects.

 

(g)Customer Identification
- USA Patriot Act Notice; OFAC and Bank Secrecy Act. Lender hereby notifies each Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and Lender’s
policies and practices, Lender is required to obtain, verify and record certain information and documentation that identifies such
Borrower, which information includes the name and address of such Borrower and such other information that will allow Lender to
identify such Borrower in accordance with the Act. In addition, each Borrower shall (a) ensure that no person who owns a controlling
interest in or otherwise controls such Borrower or any subsidiary of such Borrower is or shall be listed on the Specially Designated
Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control (“OFAC”),
the Department of the Treasury or included in any Executive Orders, (b) not use or permit the use of the proceeds of the Loan to
violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c)
comply, and cause any of its subsidiaries to comply, with all applicable Bank Secrecy Act (“BSA”) laws and regulations,
as amended.

 

[Remainder
of page intentionally left blank; signature pages follow]

 

    	-6-

    	 

    

 

IN WITNESS WHEREOF,
the parties have executed this First Amendment to Amended and Restated Loan and Security Agreement and Other Loan Documents as
of the date first set forth above.

 

	 	BORROWERS:	 
	 	 	 	 
	 	BG STAFFING, INC., a Delaware corporation, f/k/a LTN Staffing, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	 
	 	Name:	L. Allen Baker, Jr.
	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	 	 	 
	 	BG STAFFING, LLC, a Delaware limited liability company
	 	 	 	 
	 	By:	BG Staffing, Inc., a Delaware corporation, f/k/a LTN Staffing, LLC, a Delaware limited liability company
	 	Its:	Sole Member
	 	 	 	 
	 		By:	 
	 	  	Name:	L. Allen Baker, Jr.
	 		Title:	President and Chief Executive Officer

 

	 	BG PERSONNEL
                                         SERVICES, LP, a Texas limited
                                         partnership

	 	 	 	 	 
	 	By:	BG Staffing, LLC, a Delaware limited liability company

	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	By: BG Staffing, Inc., a Delaware corporation, f/k/a LTN Staffing, LLC, a Delaware limited liability company
	 	 	Its:  	Sole Member
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:  	L. Allen Baker, Jr.
	 	 	 	Title:	President and Chief Executive Officer

 

    	-7-

    	 

    

 

	 	BG PERSONNEL,
                                         LP, a Texas limited partnership

	 	 	 	 	 
	 	By:	BG Staffing, LLC, a Delaware limited liability company,

	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	By: BG Staffing, Inc., a Delaware corporation, f/k/a LTN Staffing, LLC, a Delaware limited liability company
	 	 	Its:  	Sole Member
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	Name:  	L. Allen Baker, Jr.
	 	 	 	Title:	President and Chief Executive Officer

 

	 	B G STAFF SERVICES INC., a Texas corporation
	 	 	 
	 	By: 	 
	 	Name:  	L. Allen Baker, Jr.
	 	Title:	President and Chief Executive Officer

 

    	-8-

    	 

    

 

	 	LENDER:
	 	 	 
	 	FIFTH THIRD BANK, an Ohio banking corporation, successor by merger with Fifth Third Bank, a Michigan banking corporation
	 	 	 
	 	By: 	 
	 	Name:  	David L. Mistic
	 	Title:	Vice President
	 	 	 
	 	By: 	 
	 	Name:	Clayton A. Bruce
	 	Title:	Vice President

 

    	-9-Exhibit 10.2(p)-2014.03.31

Exhibit 10.2(p)

Schedule A
Notice of Option Grant 

Participant:        [●]
Company:        WellPoint, Inc.
		
	Notice:
	You have been granted the following nonqualified stock option to purchase shares of common stock of the Company in accordance with the terms of the Plan and the attached Nonqualified Stock Option Award Agreement.

Plan:    WellPoint Incentive Compensation Plan
Grant:            Grant Date:  [●]            Option Price per Share: $[●]            Number of Shares under Option:  [●]

		
	Exercisability:
	Subject to the terms of the Plan and this Agreement, your Option will become exercisable on and after the dates indicated below as to the number of Shares set forth below opposite each such date, plus any Shares as to which your Option could have been exercised previously but was not so exercised.

	
		
	Shares
	Date

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

	 
	 

In the event that a Change of Control (as defined in the Plan) occurs before your Termination, your Option will remain subject to the terms of this Agreement, unless the successor company does not assume your Option.  If a successor company does not assume your Option, then your Option shall become fully exercisable immediately prior to the Change of Control.  
		
	Expiration Date:
	Your Option will expire seven years from the Grant Date, subject to earlier termination as set forth in the Plan and this Agreement.

		
	Rejection:
	If you do not want to accept your Option, please return this Agreement, executed by you on the last page of this Agreement, at any time within sixty (60) days after the Grant Date to WellPoint, Inc., 120 Monument Circle, Indianapolis, Indiana 46204, Attention:  Stock Administration.  Do not return a signed copy of this Agreement if you accept your Option.  If you do not return a signed copy of this Agreement within sixty (60) days after the Grant Date, you will have accepted your Option and agreed to the terms and conditions set forth in this Agreement and the terms and conditions of the Plan.

Nonqualified Stock Option Award Agreement

This Nonqualified Stock Option Award Agreement (this “Agreement”) dated as of the Grant Date (the “Grant Date”) set forth in the Notice of Option Grant attached as Schedule A hereto (the “Grant Notice”) is made 

Exhibit 10.2(p)

between WellPoint, Inc. (the “Company”) and the Participant set forth in the Grant Notice.  The Grant Notice is included in and made part of this Agreement.
1.    Grant of the Option.  Subject to the provisions of this Agreement and the provisions of the Plan, the Company hereby grants to the Participant, pursuant to the Plan, the right and option (the “Option”) to purchase all or any part of the number of shares of common stock of the Company (“Shares”) as set forth in the Grant Notice at an Option Price (“Option Price”) per share and on the other terms as set forth in the Grant Notice.  This Option is intended to be a nonqualified stock option for federal income tax purposes. 

		
	2.
	Method of Exercise of the Option.

(a)    The Participant may exercise the Option, to the extent then exercisable, by delivering a notice to the Company’s captive broker in a form specified or accepted by the captive broker, specifying the number of Shares with respect to which the Option is being exercised.  

(b)    At the time the Participant exercises the Option, the Participant shall pay the Option Price of the Shares as to which the Option is being exercised and applicable taxes (i) in United States dollars by personal check, bank draft or money order; (ii) subject to such terms, conditions and limitations as the Compensation Committee of the Board of Directors of the Company (“Committee”) may prescribe, by tendering (either by actual delivery or attestation) unencumbered Shares previously acquired by the Participant having an aggregate Fair Market Value at the time of exercise equal to the total Option Price of the Shares for which the Option is so exercised; (iii) subject to such terms, conditions and limitations as the Committee may prescribe, a cashless (broker-assisted) exercise that complies with all applicable laws; or (iv) by a combination of the consideration provided for in the foregoing clauses (i), (ii) and (iii). 

3.    Termination.  The Option shall terminate upon the Participant’s Termination for any reason and no Shares may thereafter be purchased under the Option except as provided below.  Notwithstanding anything contained in this Agreement, the Option shall not be exercisable after the Expiration Date.

(a)    Retirement.  If the Participant’s Termination is due to Retirement (for purposes of this Agreement, defined as the Participant’s Termination after attaining age fifty-five (55) with at least ten (10) completed years of service or after attaining age sixty-five (65)), the Option shall continue to become exercisable according to the schedule set forth in the Grant Notice; provided that the Option shall terminate on the five-year anniversary of the date of the Participant’s Retirement but not later than the Expiration Date noted on the attached Schedule A; provided, further, that if the Participant’s Termination is due to Retirement during the calendar year of the Grant Date, the Option shall be immediately terminated on a pro-rata basis, measured by the number of completed full months in that calendar year during which the Participant was employed by the Company or an Affiliate (e.g., if the Participant’s Retirement occurs in September, 33.3% (or 4/12) of the Option shall be immediately terminated), and the non-terminated portion of the Option shall continue to become exercisable according to the schedule set forth in the Grant Notice.
(b)    Death and Disability.  If the Participant’s Termination is due to the Participant’s death or Disability (for purposes of this Agreement, as defined in the applicable WellPoint Long-Term Disability Plan), the Option shall immediately become fully exercisable and shall terminate on the five-year anniversary of the date of such Termination but not later than the Expiration Date noted on the attached Schedule A.    
(c)    Termination without Cause.  Unless Section 3(e) is applicable, if the Participant’s Termination is by the Company or an Affiliate without Cause (for purposes of this Agreement, defined as a violation of “conduct” as such term is defined in the WellPoint HR Corrective Action Policy and if the Participant participates in the WellPoint, Inc. Executive Agreement Plan (the "Agreement Plan"), the Key Associate Agreement or the Key Sales Associate Agreement also as defined in that plan or agreement) or voluntarily by the Participant, the Option, to the extent exercisable as of the date of such Termination, shall thereafter only be exercisable for a period of forty-five (45) days from the date of such Termination, but not later than the Expiration Date noted on the attached Schedule A. 

Exhibit 10.2(p)

(d)    Cause.  If the Participant’s Termination is for Cause, even if on the date of such Termination the Participant has met the definition of Retirement or Disability, then the portion of the Option that has not been exercised shall immediately terminate. 
(e)    Termination after Change in Control.  If after a Change in Control the Participant’s Termination is (i) by the Company or an Affiliate without Cause or (ii) if the Participant participates in the Executive Agreement Plan, by the Participant for Good Reason (as defined in the Executive Agreement Plan), the Option shall immediately become fully exercisable and shall terminate on the five-year anniversary of the date of such Termination but not later than the Expiration Date noted on the attached Schedule A.
(f)    Clawback Provision.  Notwithstanding any other provisions of this Agreement to the contrary, in the event that the Participant is a non-executive participant in the Agreement Plan, is an Executive (as defined by the Company) at the time of the Participant’s Termination, regardless of whether the Executive is then a participant in such Agreement Plan, or has the Amerigroup title of EVP or Regional CEO, the Option shall immediately terminate if the Participant breaches any provision of Section 3.6 or 3.10 of the Agreement Plan, in which case the Participant shall be subject to the “Return of Consideration” provision contained in Section 3.7 of the Agreement Plan.
4.    Transferability of the Option.  The Option shall not be transferable or assignable by the Participant except as provided in this Section 4 and the Option shall be exercisable, during the Participant’s lifetime, only by him/her or, during periods of legal disability, by his guardian or other legal representative.  No Option shall be subject to execution, attachment, or similar process.  The Participant shall have the right to appoint any individual or legal entity in writing, on a Designation of Beneficiary form as his/her beneficiary to receive any Option (to the extent not previously terminated or forfeited) under this Agreement upon the Participant’s death.  Such designation under this Agreement may be revoked by the Participant at any time and a new beneficiary may be appointed by the Participant by execution and submission to the Company, or its designee, of a revised Designation of Beneficiary form to this Agreement.  In order to be effective, a designation of beneficiary must be completed by the Participant on the Designation of Beneficiary form and received by the Company, or its designee, prior to the date of the Participant’s death.  If the Participant dies without such designation, the Option may be exercised only by the executor or administrator of the Participant’s estate or by a person who shall have acquired the right to such exercise by will or by the laws of descent and distribution. 

5.    Taxes and Withholdings.  At the time of receipt of Shares upon the exercise of all or any part of the Option, the Participant shall pay to the Company in cash (or make other arrangements, in accordance with Article XVIII of the Plan, for the satisfaction of) any taxes of any kind required by law to be withheld with respect to such Shares; provided, however, that pursuant to any procedures, and subject to any limitations as the Committee may prescribe and subject to applicable law, the Participant may elect to satisfy, in whole or in part, such withholding obligations by (a) withholding Shares otherwise deliverable to the Participant pursuant to the Option (provided, however, that the amount of any Shares so withheld shall not exceed the amount necessary to satisfy required Federal, state, local and non-United States withholding obligations using the minimum statutory withholding rates for Federal, state, local and/or non-U.S. tax purposes, including payroll taxes, that are applicable to supplemental taxable income) and/or (b) tendering to the Company Shares owned by the Participant (or the Participant and the Participant’s spouse jointly) based, in each case, on the Fair Market Value of the Shares on the payment date as determined by the Committee.  Any such election made by the Participant must be irrevocable, made in writing, signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate.
6.    No Rights as a Shareholder.  Neither the Participant nor any other person shall become the beneficial owner of the Shares subject to the Option, nor have any rights to dividends or other rights as a shareholder with respect to any such Shares, until the Participant has actually received such Shares following the exercise of the Option in accordance with the terms of the Plan and this Agreement.
7.    No Right to Continued Employment.  Neither the Option nor any terms contained in this Agreement shall confer upon the Participant any express or implied right to be retained in the employment or service of the Company or any Affiliate for any period, nor restrict in any way the right of the Company, which right is hereby expressly reserved, to terminate the Participant’s employment or service at any time with or without Cause.  The 

Exhibit 10.2(p)

Participant acknowledges and agrees that any right to exercise the Option is earned only by continuing as an employee of the Company or an Affiliate at the will of the Company or such Affiliate, or satisfaction of any other applicable terms and conditions contained in the Plan and this Agreement, and not through the act of being hired, being granted the Option or acquiring Shares hereunder.

8.    The Plan.  This Agreement is subject to all the terms, provisions and conditions of the Plan, which are incorporated herein by reference, and to such regulations as may from time to time be adopted by the Committee.  Unless defined herein, capitalized terms are as defined in the Plan.  In the event of any conflict between the provisions of the Plan and this Agreement, the provisions of the Plan shall control, and this Agreement shall be deemed to be modified accordingly.  The Plan and the prospectus describing the Plan can be found on the Company’s HR intranet.  A paper copy of the Plan and the prospectus shall be provided to the Participant upon the Participant’s written request to the Company at WellPoint, Inc., 120 Monument Circle, Indianapolis, Indiana  46204, Attention:  Corporate Secretary, Shareholder Services Department.  

		
	9.
	Compliance with Laws and Regulations.  

(a)    The Option and the obligation of the Company to sell and deliver Shares hereunder shall be subject in all respects to (i) all applicable Federal and state laws, rules and regulations and (ii) any registration, qualification, approvals or other requirements imposed by any government or regulatory agency or body which the Committee shall, in its discretion, determine to be necessary or applicable.  Moreover, the Option may not be exercised if its exercise, or the receipt of Shares pursuant thereto, would be contrary to applicable law.  If at any time the Company determines, in its discretion, that the listing, registration or qualification of Shares upon any national securities exchange or under any state or Federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable, the Company shall not be required to deliver any certificates for Shares to the Participant or any other person pursuant to this Agreement unless and until such listing, registration, qualification, consent or approval has been effected or obtained, or otherwise provided for, free of any conditions not acceptable to the Company.
(b)    The Shares received upon the exercise of the Option shall have been registered under the Securities Act of 1933 (“Securities Act”).  If the Participant is an “affiliate” of the Company, as that term is defined in Rule 144 under the Securities Act (“Rule 144”), the Participant may not sell the Shares received except in compliance with Rule 144.  Certificates representing Shares issued to an “affiliate” of the Company may bear a legend setting forth such restrictions on the disposition or transfer of the Shares as the Company deems appropriate to comply with Federal and state securities laws.
(c)    If at the time of exercise of all or part of the Option, the Shares are not registered under the Securities Act, and/or there is no current prospectus in effect under the Securities Act with respect to the Shares, the Participant shall execute, prior to the delivery of any Shares to the Participant by the Company pursuant to this Agreement, an agreement (in such form as the Company may specify) in which the Participant represents and warrants that the Participant is purchasing or acquiring the shares acquired under this Agreement for the Participant's own account, for investment only and not with a view to the resale or distribution thereof, and represents and agrees that any subsequent offer for sale or distribution of any kind of such Shares shall be made only pursuant to either (i) a registration statement on an appropriate form under the Securities Act, which registration statement has become effective and is current with regard to the Shares being offered or sold, or (ii) a specific exemption from the registration requirements of the Securities Act, but in claiming such exemption the Participant shall, prior to any offer for sale of such Shares, obtain a prior favorable written opinion, in form and substance satisfactory to the Company, from counsel for or approved by the Company, as to the applicability of such exemption thereto.
10.    Notices.   All notices by the Participant or the Participant’s assignees shall be addressed to WellPoint, Inc., 120 Monument Circle, Indianapolis, Indiana 46204, Attention:  Stock Administration, or such other address as the Company may from time to time specify.  All notices to the Participant shall be addressed to the Participant at the Participant’s address in the Company's records.

Exhibit 10.2(p)

11.    Other Plans.  The Participant acknowledges that any income derived from the exercise of the Option shall not affect the Participant’s participation in, or benefits under, any other benefit plan or other contract or arrangement maintained by the Company or any Affiliate.

12.    Recoupment Policy for Incentive Compensation.  The Company's Recoupment Policy for Incentive Compensation, as may be amended from time to time, shall apply to the Option, any Shares acquired upon exercise of the Option and any profits realized from the sale of such Shares to the extent that the Participant is covered by such policy.  If the Participant is covered by such policy, the policy may apply to recoup the Option, any Shares acquired upon exercise of the Option or profits realized from the sale of Shares previously covered by the Option either before, on or after the date on which the Participant becomes subject to such policy. 

WELLPOINT, INC.

By:        ______________________________
Printed:        Ramiro G. Peru
Its:        Chairman, Compensation Committee
WellPoint, Inc. Board of Directors

I DO NOT accept this Option:

Signature:    _________________________________       Date_______________________________

Printed Name:    _________________________________

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