Document:

Exhibit

    

Exhibit 10.3.c.

AMENDED AND RESTATED WELLCARE HEALTH PLANS, INC.
EXECUTIVE SEVERANCE PLAN

		
	1.
	Purpose of the Plan

The Board believes that it is in the best interests of the Company to encourage the continued employment and dedication of certain officers by providing economic security to such individuals in the event of certain terminations of employment, and the Plan has been established for this purpose.  The Plan is intended to be a “welfare plan” under ERISA providing benefits to a select group of management or highly compensated employees as described in DOL Regulation section 2520.104-24.  The Plan is separate from the WellCare Health Plans, Inc. Severance Plan, as amended from time to time.  Capitalized terms used in the Plan are defined in Section 10, except as otherwise specified.

		
	2.
	Effective Date

The Plan, as amended and restated effective December 13, 2018, shall be effective only with respect to a termination of employment covered by the Plan that occurs on or after December 13, 2018 (the “Effective Date”).

		
	3.
	Administration

(a)    The Committee shall act as the plan administrator and the “named fiduciary” of the Plan for purposes of ERISA.  Before a Change in Control, the Committee has sole and absolute discretion and authority to administer the Plan, including the sole and absolute discretion and authority to:

(i)    adopt such rules as it deems advisable in connection with the administration of the Plan, and to construe, interpret, apply and enforce the Plan and any such rules and to remedy ambiguities, errors or omissions in the Plan;

(ii)    determine questions of eligibility and entitlement to benefits and any other terms of the Plan applicable to the Participants; the Committee’s determinations are conclusive and binding on all parties affected by its determinations;

(iii)    act under the Plan on a case-by-case basis; the Committee’s decisions under the Plan need not be uniform with respect to similarly situated Participants; and

(iv)    delegate its authority under the Plan to any director, officer, employee, or group of directors, officers and/or employees of the Company.

(b)    If any person with administrative authority becomes eligible or makes a claim for Plan benefits, that person will have no authority with respect to any matter specifically affecting his/her individual interest under the Plan, and the Committee will designate another person to exercise such authority.

(c)    Notwithstanding anything in the Plan to the contrary, after a Change in Control, neither the Committee nor the Board nor any other person or entity shall have discretionary authority in the administration of the Plan, and any court or tribunal that adjudicates any dispute, controversy or claim in connection with any severance benefits under this Plan will apply a de novo standard of review to any determinations made by the Committee or Board following such Change in Control.  Such de novo standard shall apply notwithstanding the grant of full discretion hereunder to the Committee, the Board, or any person or entity or characterization of any decision by the Committee, the Board, or by such person or entity as final, binding or conclusive on any party.

		
	4.
	Participation

(a)    Eligibility.  Eligibility under the Plan is limited to Company employees designated by the Board as “executive officers” of WellCare within the meaning of Rule 3b-7 of the Exchange Act.  If the Board revokes such designation, the employee will cease being eligible for benefits under the Plan and cease being a Participant on the one year anniversary of such revocation; provided, however, that an employee who is a Participant immediately prior to a Change in Control shall continue being eligible for benefits under the Plan following a Change in Control subject to Section 9(a).  If a Participant is covered by any plan, program, policy or agreement with the Company that provides severance benefits upon termination of employment, then he or she will not be a Participant in this Plan.  To become a Participant, the employee must also become a party to a restrictive covenants agreement in the form provided by the Company.

(b)    Tier Designation.  The Board or the Committee shall designate a Participant as a Tier I Participant, Tier II Participant or Tier III Participant for purposes of participation in the Plan and may change such Tier designation.  If the Board or the Committee changes a Participant’s Tier designation in a manner that reduces the Participant’s Tier designation, that reduction shall not become effective until the first anniversary of the date on which the Board or the Committee approved such reduction; provided, however, if a Change in Control occurs prior to such first anniversary, such reduction shall not become effective.  

		
	5.
	Severance Benefits

(a)    Before a Change in Control.  If a Participant’s employment with the Company is terminated after the Effective Date and before a Change in Control either (i) by the Company for reasons other than Cause, death, or Disability, or (ii) by the Participant for Good Reason, then the Participant shall receive: (x) payment of the Accrued Obligations, (y) the Cash Severance benefit described in this Section 5(a) based on the Participant’s Tier as in effect on the date Participant’s employment with the Company is terminated, and (z) Health Benefit Continuation described in this Section 5(a) based on the Participant’s Tier as in effect on the date Participant’s employment with the Company is terminated.

	
			
	Tier as of Termination Date
	Cash Severance
	Health Benefit Continuation

	Tier I Participant
	1.5 x Base Salary plus
1.5 x Bonus
	18 months

	Tier II Participant
	1 x Base Salary plus
1 x Bonus
	12 months

	Tier III Participant
	1 x Base Salary plus
1 x Bonus
	12 months

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The Company shall pay the Base Salary portion of Participant’s Cash Severance as determined in accordance with this Section 5(a) in installments in accordance with the Company’s normal payroll schedule over 12 months beginning no later than the first regular payroll period following the expiration of any period during which a Participant may revoke the waiver and release of claims executed pursuant to Section 6(a), so long as that waiver and release is signed by the Participant and returned to the Company no later than 30 days after the Participant’s termination of employment and the Participant does not revoke such waiver and release of claims.  The Company shall pay the Bonus portion of Participant’s Cash Severance as determined in accordance with this Section 5(a) on the first anniversary of the Participant’s termination of employment, so long as the waiver and release has become effective and irrevocable as described above.  If a Change in Control occurs while payments of the Cash Severance as determined in accordance with this Section 5(a) are being made, the payments will continue to be paid as scheduled.

(b)    In Contemplation of a Change in Control.  If a Participant’s employment with the Company is terminated after the Effective Date and before a Change in Control by the Company for reasons other than Cause, death, or Disability, the Participant begins to receive severance in accordance with Section 5(a), a Change in Control occurs, and the Participant provides clear and convincing evidence to the Committee within 30 days after the Change in Control to support a claim that the Participant was terminated In Contemplation of a Change in Control, then within 70 days after the Change in Control, the Participant shall receive: (i) a single lump sum cash payment equal to the Cash Severance determined in accordance with Section 5(c) less the amount of Cash Severance already paid to the Participant under Section 5(a), and (ii) Health Benefit Continuation for the duration described in Section 5(c) based on the Participant’s Tier less the months of Health Benefit Continuation already provided under Section 5(a).  

(c)    After a Change in Control.  If a Participant’s employment with the Company is terminated within 24 months after a Change in Control either (i) by the Company for reasons other than Cause, death, or Disability, or (ii) by the Participant for Good Reason, then the Participant shall receive: (x) payment of the Accrued Obligations, (y) the Cash Severance benefit described in this Section 5(c) based on the Participant’s Tier as in effect on the date of the Change in Control, and (z) Health Benefit Continuation described in this Section 5(c) based on the Participant’s Tier as in effect on the date of the Change in Control.

	
			
	Tier as of Termination Date
	Cash Severance
	Health Benefit Continuation

	Tier I Participant
	3 x Base Salary plus
3 x Bonus plus
1x Prorated Bonus
	36 months

	Tier II Participant
	2 x Base Salary plus
2 x Bonus plus
1x Prorated Bonus
	24 months

	Tier III Participant
	1.5 x Base Salary plus
1.5 x Bonus plus
1x Prorated Bonus
	18 months

The Company shall pay the Participant’s Cash Severance as determined in accordance with this Section 5(c) in a single lump sum cash payment no later than the first regular payroll period following the expiration of any period during which a Participant may revoke the waiver and release of claims executed pursuant to Section 6(a), so long as that waiver and release is signed 

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by the Participant and returned to the Company no later than 30 days after the Participant’s termination of employment and the Participant does not revoke such waiver and release of claims.

(d)    Form of Severance under Existing Agreement.  Participants who are covered by an existing employment or severance agreement with the Company agree that their existing rights under that agreement are terminated and replaced with the provisions of this Plan; provided, however, that for the duration of the original remaining term of the employment or severance agreement only, the timing and form of severance (i.e., lump sum or installments) in the employment or severance agreement shall supersede the timing and form of payment provisions in this Section 5 and control the timing and form of payment of the Cash Severance.

(e)    Employment with Successor.  Notwithstanding anything to the contrary under the Plan, no severance benefits shall be paid to a Participant who is offered comparable employment by an entity that purchases a unit or asset of the Company or, following a Change in Control, by a successor to the Company.  “Comparable employment” is determined based on the facts and circumstances in each case, but means employment with duties, responsibilities, Base Salary, annual short-term incentive opportunity, annual long-term incentive opportunity and location that are substantially similar in the aggregate to the Participant’s prior employment with the Company.  A Participant who accepts comparable employment with a successor to the Company following a Change in Control remains entitled to receive severance benefits if the Participant’s employment is terminated as specified under Section 5(c).

(f)    Release of Claims and Restrictive Covenants.  Payment of Cash Severance and Health Benefit Continuation is subject to and contingent on the Participant’s satisfaction of the requirements of Section 6(a) (regarding waiver and release of claims) and Section 6(b) (regarding restrictive covenants).  If the period during which a Participant has discretion to execute or revoke the waiver and release of claims straddles two taxable years of the Participant, then the Company shall begin making the payment of Cash Severance in the second of such taxable years, regardless of which taxable year the Participant actually delivers the executed waiver and release to the Company.

(g)    Code Section 280G Cutback.  A Participant shall bear all expense of, and be solely responsible for, all federal, state, local or foreign taxes due with respect to any payment received under the Plan, including, without limitation, any excise tax imposed by Code section 4999.  Notwithstanding anything to the contrary in the Plan, in the event that any payment or benefit received or to be received by a Participant pursuant to the terms of the Plan (the “Plan Payments”) or in connection with the Participant’s termination of employment or contingent upon a Change in Control pursuant to any plan or arrangement or other agreement with the Company (together with the Plan Payments, the “Payments”) would be subject to the excise tax imposed by Code section 4999, as determined by the Committee, then the Plan Payments shall be reduced to the extent necessary to prevent any portion of the Payments from becoming nondeductible by the Participant’s employer under Code section 280G or subject to the excise tax imposed under Code section 4999, but only if, by reason of that reduction, the net after-tax benefit received by the Participant exceeds the net after-tax benefit the Participant would receive if no reduction was made.  For this purpose, “net after-tax benefit” means (i) the total of all Payments that would constitute “excess parachute payments” within the meaning of Code section 280G, less (ii) the amount of all federal, state, and local income taxes payable with respect to the Payments calculated at the maximum marginal income tax rate for each year in which the Payments shall be paid to the Participant (based on the rate in effect for that year as set forth in the Code as in effect at the time 

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of the first payment of the Payments), less (iii) the amount of excise taxes imposed on the Payments described in clause (i) above by Code section 4999.  If, pursuant to this Section, Payments are to be reduced, Payments will be reduced in this order: (1) Cash Severance, (2) Health Benefit Continuation, and (3) equity acceleration (to the extent applicable).

		
	6.
	Other Terms and Conditions of Eligibility

(a)    Waiver and Release of Claims.  As a condition to receiving severance benefits under the Plan, each Participant shall be required to sign and deliver to the Company, and may not revoke or violate the terms of, a general release of all claims against the Company, and the directors, officers, and employees of each of them, in the form attached as Exhibit A or such other form reasonably satisfactory to the Committee.  In no case will payments be made or begin before the end of any revocation period required by applicable law or regulation in connection with any release or waiver that the Participant is asked to sign.

(b)    Restrictive Covenants.  Any severance benefits specified under the Plan are provided, if at all, as consideration for, and are contingent upon, the Participant agreeing to, and abiding by, the restrictive covenants in the Participant’s restrictive covenants agreement with the Company.

(c)    At-Will Employment.  Each Participant is employed by the Company on an “at will” basis and nothing in this Plan shall give any Participant any right to continue in the employ of the Company.  A Participant shall have no rights under the Plan if the Participant’s employment is terminated by the Company, or any successor, with Cause or by the Participant without Good Reason, or due to the Participant’s death or Disability.

(d)    Nonduplication; No Impact on Benefits.

(i)    Payments to a Participant under the Plan shall be in lieu of any severance or similar payments that otherwise might be payable under any Company plan, program, policy or agreement with the Company that provides severance benefits upon termination of employment.

(ii)    Benefits payable under the Plan, whether paid in a lump sum or in periodic payments, will not increase or decrease the benefits otherwise available to a Participant under any company-sponsored retirement plan, welfare plan or any other employee benefit plan or program, unless otherwise expressly provided for in any particular plan or program.

(iii)    Any severance benefits specified under the Plan shall be reduced by the amount of any payment required by the Company to the Participant (A) because of insufficient advance notice of employment loss as may be required by law; or (B) under applicable law because of the termination of employment.

		
	7.
	Benefit Claims

(a)    Initial Claim.  Any claims concerning eligibility, participation, benefits or other aspects of the Plan must be submitted in writing and directed to the Committee, within 30 days after the communication of the determination that is the basis of the claim.  Within 30 days after receiving 

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a claim, the Committee will (i) either accept or deny the claim completely or partially and (ii) notify the Participant of acceptance or denial of the claim.  If a claim is partially or wholly denied, the Committee will provide a written denial to the Participant no later than 30 days after receipt of the initial claim request.  The written denial shall include specific reasons for the denial, specific references to the Plan provisions upon which the denial was based, a description of any additional material or information necessary for the Participant to perfect the claim, an explanation of why such material is necessary, and instructions on the Plan’s claim review procedure.  If the Committee requires additional time to process a claim because of special circumstances, the Committee, in its sole discretion, may extend the period 30 additional days.  The Committee must notify the Participant of any such extension prior to the expiration of the 30‐day period commencing from the date the Committee first received written submission of the claim.

(b)    Appeals.  The Participant may request in writing to the Board a review of a denied claim within 30 days after receipt of such denial.  Such written request must contain an explanation as to why the Participant is seeking a review.  For purposes of the review, the Participant has the right to: (i) submit written comments, documents, records and other information relating to the claim for benefits; (ii) request, free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claim for benefits; and (iii) a review that takes into account all comments, documents, records, and other information the Participant submitted relating to the claim, regardless of whether the information was submitted or considered in the initial decision.  A decision on such review will be rendered in writing within 30 days of the Board’s receipt of a request for review, unless special circumstances require an extension of time for processing, in which case a decision will be rendered as soon as possible but no later than 60 days after receipt of the request for review provided that written notice is provided to the Participant or the Participant’s authorized representative before the extension commences.  A written notice affirming the denial of a claim will set forth the specific reasons for the decision and make specific reference to Plan provisions upon which the decision or appeal is based.  In preparation for filing such a request for review, the Participant or the Participant’s authorized representative may review pertinent plan documents, and as part of the written request for review, may submit issues and comments concerning the claim.  No claim may be brought before or submitted to a court of law or other governmental entity unless and until the claims process under this Section 7 has been exhausted.

		
	8.
	Recoupment

(a)    Right of Recoupment.  If, at any time, the Board or the Committee, as the case may be, in its sole discretion determines that any action or omission by the Participant constituted (i) wrongdoing that contributed to (A) any material misstatement in or omission from any report or statement filed by the Company with the U.S. Securities and Exchange Commission or (B) a statement, certification, cost report, claim for payment or other filing made under Medicare or Medicaid that was false, fraudulent or for an item or service not provided as claimed; (ii) intentional or gross misconduct; (iii) a breach of a fiduciary duty to the Company; (iv) fraud; (v) a violation of the restrictive covenants; or (vi) non-compliance with the Company’s Code of Conduct and Business Ethics (“Code of Conduct”), policies or procedures to the material detriment of the Company, then in each such case, the Participant’s participation in the Plan shall be immediately terminated and the Participant shall repay to the Company, upon notice to the Participant by the Company, up to 100% of the pre-tax amount paid to the Participant pursuant to this Plan.  The Board or the Committee, as the case may be, shall determine in its sole discretion the date of occurrence of such action or omission and the percentage of the pre-tax amount received pursuant to this Plan that must be repaid to the Company.

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(b)    Method of Recoupment.  To the extent permitted by applicable law, the Company may enforce the recoupment of any or all amounts due under this Section 8 by withholding future payment of any severance benefits, seeking reimbursement of previously paid severance benefits, demanding direct cash payment, reducing any amount of compensation owed by the Company to the Participant, and/or such other means determined by the Board or Committee.

(c)    Nonexclusive Remedy.  The Company’s right of recoupment under this Section 8 is in addition to any remedy available to the Company with respect to any Participant, including, but not limited to, the initiation of civil or criminal proceedings and any right to repayment under the Sarbanes-Oxley Act of 2002, Dodd-Frank Wall Street Reform and Consumer Protection Act, and any other applicable law.

		
	9.
	General

(a)    Amendment and Termination of the Plan.  The Board or the Committee may amend or terminate the Plan in any respect; provided, however, if such amendment or termination (including any change to the severance benefits) shall be detrimental to a Participant, such amendment or termination shall be effective only with one year notice to such Participant; provided, further, that (i) any amendment or termination will not be effective if there is a Change in Control during the one year notice period, and (ii) the Plan cannot be amended or terminated during the 24 month period after a Change in Control.  A Participant ceasing to be eligible for a benefit under the Plan or a reduction in Tier designation before a Change in Control, as described in Section 4, is not an amendment or termination of the Plan.

(b)    Funding.  Benefits payable under the Plan will be paid only from the general assets of the Company.  The Plan does not create any right to, or interest in, any specific assets of the Company.

(c)    No Mitigation.  The Participant shall not be obligated to seek other employment in mitigation of the amounts payable under any provision of the Plan, and the obtaining of such other employment shall not effect any reduction of the Company’s obligations to pay the severance benefits provided under the Plan (unless in violation of the restrictive covenants specified under Section 6(b)).

(d)    Withholding.  The Company may withhold from any payments made under the Plan all federal, state, local or other taxes required pursuant to any law or governmental regulation or ruling.

(e)    Right to Offset.  To the extent permitted by law, the Company may offset against any obligation to pay any portion of the severance benefit under the Plan any outstanding amount of whatever nature that the Participant then owes to the Company in the capacity as an employee.  However, no amount of “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12)) that is payable to a Participant under the Plan may be used to offset any amount that the Participant then owes to the Company.

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(f)    Successors.  All rights under the Plan are personal to the Participant and without the prior written consent of the Committee shall not be assignable by the Participant.  The Plan shall inure to the benefit of and be enforceable by the Participant’s legal representative.  The Plan shall inure to the benefit of, and be binding upon, the Company and its successors and assigns.  Any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of WellCare shall be required to assume expressly and agree to perform the obligations set forth in the Plan in the same manner and to the same extent as the Company would be required to do so.

(g)    Governing Law.  The Plan and all determinations made and actions taken pursuant to the Plan shall be governed by the substantive laws, but not the choice of law rules, of the State of Florida or by United States federal law.

(h)    Dispute Resolution.  Any proceeding relating to this Plan or any Participant’s benefits hereunder, or for the recognition and enforcement of any judgment in respect thereof (a “Proceeding”), is subject to the exclusive jurisdiction of the courts of the State of Florida, the court of the United States of America for the District of Florida, and appellate courts having jurisdiction of appeals from any of the foregoing, and agrees that all claims in respect of any such Proceeding shall be heard and determined in such Florida State court or, to the extent permitted by law, in such federal court.  By participating in this Plan, each Participant hereby  (a) consents that any such Proceeding may and shall be brought in such courts and waives any objection that the Participant or the Company may now or thereafter have to the venue or jurisdiction of any such Proceeding in any such court or that such Proceeding was brought in an inconvenient court and agrees not to plead or claim the same, (b) waives all right to trial by jury in any Proceeding (whether based on contract, tort or otherwise) arising out of or relating to this Plan or the Participant’s employment by the Company or any affiliate of the Company, or the Participant’s or the Company’s performance under, or the enforcement of, this Plan, (c) agrees that service of process in any such Proceeding may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage prepaid, to such party at the Participant’s or the Company’s address on record with the Company and (d) agrees that nothing in this Plan shall affect the right to effect service of process in any other manner permitted by the laws of the State of Florida.  In addition to all other amounts payable under the Plan, the Company will pay all legal fees and expenses incurred by the Participant in connection with any dispute arising out of or relating to the Plan following or in contemplation of a Change in Control or the interpretation thereof (including, without limitation, all such fees and expenses, if any, incurred in seeking to obtain or enforce any right or benefit provided by the Plan), provided that, the Participant prevails on any material issue raised in any such Proceeding.
(i)    Severability.  If any provision of the Plan is declared illegal, invalid or otherwise unenforceable by a court of competent jurisdiction, the provision shall be reformed, if possible, to the extent necessary to render it legal, valid and enforceable, or otherwise deleted, and the remainder of the terms of the Plan shall not be affected except to the extent necessary to reform or delete such illegal, invalid or unenforceable provision.

(j)    Notices.  Notices and all other communications provided for under the Plan shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States certified mail, return receipt requested, or by overnight courier, postage prepaid, to the Company’s corporate headquarters address, to the attention of the Committee, or 

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to the Participant at the home address most recently communicated by the Participant to the Company in writing.

(k)    409A Compliance.

(i)    The Plan is intended to comply with, or otherwise be exempt from, Code section 409A.  The preceding provision, however, shall not be construed as a guarantee by the Company of any particular tax effect to a Participant under the Plan.  The Company shall not be liable to a Participant for any payment made under the Plan, at the direction or with the consent of the Participant, which is determined to result in an additional tax, penalty or interest under Code section 409A, nor for reporting in good faith any payment made under the Plan as an amount includible in gross income under Code section 409A.

(ii)    “Termination of employment,” or words of similar import, as used in this Plan means, for purposes of any payments under this Plan that are payments of deferred compensation subject to Code section 409A, the Participant’s “separation from service” as defined in Code section 409A.  For purposes of Code section 409A, the right to a series of installment payments under this Plan shall be treated as a right to a series of separate payments.

(iii)    With respect to any reimbursement of expenses of, or any provision of in‐kind benefits to, a Participant, as specified under this Plan: (A) the expenses eligible for reimbursement or the amount of in-kind benefits provided in one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind benefits provided in any other taxable year, except for any medical reimbursement arrangement providing for the reimbursement of expenses referred to in Code section 105(b); (B) the reimbursement of an eligible expense shall be made no later than the end of the year after the year in which such expense was incurred; and (C) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit.

(iv)    If a payment obligation under the Plan arises on account of a Participant’s termination of employment while a “specified employee” (as defined under Code section 409A and the regulations thereunder and determined in good faith by the Committee), any payment of “deferred compensation” (as defined under Treasury Regulation section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation sections 1.409A-1(b)(3) through (b)(12)) shall be made within 15 days after the end of the six-month period beginning on the date of such termination of employment or, if earlier, within 15 days after appointment of the personal representative or executor of the Participant’s estate following the death of the Participant.

		
	10.
	Definitions

The following definitions apply to the Plan:

“Accrued Obligations” means (i) the Participant’s Base Salary through the date of termination of employment, (ii) any accrued but unused paid time off and floating holiday pay, and (iii) unreimbursed business expenses.  The Company will pay the Accrued Obligations to the 

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Participant in a single lump sum cash payment within 10 days after the Participant’s termination of employment with the Company.  

“Affiliate” means Comprehensive Health Management, Inc. and any other entity, whether now or hereafter existing, which controls, is controlled by, or is under common control with, WellCare (including, but not limited to, joint ventures, limited liability companies, and partnerships).

“Base Salary” means the annual rate of base salary in effect as of the date of termination of employment, determined without regard to any reduction thereof that constitutes Good Reason.

“Board” means the Board of Directors of WellCare.

“Bonus” means, (i) with respect to any Participant who has been employed by the Company for a period of time in which he or she participated in the two (2) most recently completed annual short-term incentive bonus cycles that ended before his or her date of termination of employment, the average of the two (2) annual short-term incentive bonuses, if any, paid by the Company to the Participant with respect to those annual short-term incentive bonus cycles, provided that, if the first annual short-term incentive bonus included in the calculation was pro-rated to reflect the portion of the performance period in which the Participant was employed with the Company, then the amount of that first annual short-term incentive bonus shall be annualized solely for the calculation of the Bonus hereunder (such amount, the “Average Bonus”), or (ii) with respect to any Participant who has not been employed by the Company for a period of time in which he or she participated in the two (2) most recently completed annual short-term incentive bonus cycles that ended before his or her date of termination, the Participant’s annual short-term incentive bonus target amount in effect on the Participant’s date of termination of employment.     

“Cash Severance” means the sum of Base Salary, Bonus and, as applicable, Prorated Bonus as described in Section 5.

“Cause” means the occurrence of any one or more of the following events or conditions:

(i)    any willful act or willful omission, other than as a result of the Participant’s Disability, that constitutes a breach of any agreement to which the Company is a party or the Participant’s non-compliance with the Company’s Code of Conduct, policies or procedures to the material detriment of the Company;

(ii)     bad faith by the Participant in the performance of his duties, consisting of willful acts or willful omissions, other than as a result of the Participant’s Disability, to the material detriment of the Company;

(iii)    the Participant’s repeated failure to follow the reasonable and lawful directions of the Board (or committee of the Board) or Chief Executive Officer which is not cured within fifteen (15) days after written notice to the Participant; or

(iv)    the Participant’s commission of a crime that constitutes a felony involving fraud, conversion, misappropriation, or embezzlement under the laws of the United States or any political subdivision thereof.

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It shall be a condition precedent to the Company’s right to terminate the Participant’s employment for Cause as defined in (i) or (ii) that (x) the Company shall have first given the Participant written notice stating with reasonable specificity the breach on which such termination is premised within ninety (90) days after the Company becomes aware of such breach, and (y) if such breach is susceptible of cure or remedy, such breach has not been cured or remedied within fifteen (15) days after the Participant’s receipt of such notice.

“Change in Control” means the effective date of the occurrence of any of the following events:

(i)    any Person or Group is or becomes the Beneficial Owner, directly or indirectly, of securities of WellCare representing more than 50% of either (A) the then fair market value of the then outstanding securities of WellCare or (B) the combined voting power of the then outstanding securities of WellCare;

(ii)    the direct or indirect sale or transfer by WellCare of all or substantially all of its assets in a single transaction or a series of related transactions;

(iii)    the merger, consolidation or reorganization of WellCare with or into another corporation or other entity, in which the shareholders of more than 50% of the voting power of WellCare’s voting securities immediately before such merger, consolidation or reorganization do not own more than 50% of the voting power of the voting securities of the surviving corporation or other entity immediately after such merger, consolidation or reorganization; or

(iv)    during any consecutive 12-month period, individuals who at the beginning of such period constitute the Board (together with any new directors whose election by the Board or nomination for election by the stockholders of WellCare was approved by a vote of a majority of the directors on the Board then still in office who were either directors at the beginning of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of the Board then in office.

Notwithstanding the terms of this Section, none of the foregoing events shall constitute a Change in Control if such event is not a “Change in Control Event” under Treasury regulation section 1.409A-3(i)(5) or successor guidance of the Internal Revenue Service.

For purposes of determining whether a Change in Control has occurred, a Person or Group shall not be deemed to be “unrelated” if: (A) such Person or Group directly or indirectly has Beneficial Ownership of more than 50% of the issued and outstanding voting power of WellCare’s voting securities immediately before the transaction in question, (B) WellCare has Beneficial Ownership of more than 50% of the voting power of the issued and outstanding voting securities of such Person or Group, or (C) more than 50% of the voting power of the issued and outstanding voting securities of such Person or Group are owned, directly or indirectly, by Beneficial Owners of more than 50% of the issued and outstanding voting power of WellCare voting securities immediately before the transaction in question.

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The terms “Person,” “Group,” “Beneficial Owner,” and “Beneficial Ownership” shall have the meanings used in the Exchange Act.  Notwithstanding the foregoing, (A) Persons will not be considered to be acting as a “Group” solely because they purchase or own stock of WellCare at the same time, or as a result of purchases in the same public offering, (B) Persons will be considered to be acting as a “Group” if they are owners of a corporation that enters into a merger, consolidation, reorganization, purchase or acquisition of stock, or similar business transaction, with WellCare, and (C) if a Person, including an entity, owns stock both in WellCare and in a corporation that enters into a merger, consolidation, reorganization, purchase or acquisition of stock, or similar transaction, with WellCare, such Person shall be considered to be acting as a Group with other shareholders only with respect to the ownership in such corporation prior to the transaction.

“Code” means the Internal Revenue Code of 1986, as amended, and the regulations and Treasury guidance promulgated under it.

“Committee” means the Compensation Committee of the Board.  The Committee may delegate some or all of its authority under the Plan to any person, persons or subcommittee, in which event, the term “Committee” includes such person, persons or subcommittee to the extent of such delegation.

“Company” means WellCare and any Affiliate.

“Disability” means the Participant is unable to engage in any substantial gainful business activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or that has rendered the Participant unable effectively to carry out his/her duties and obligations to the Company or unable to participate effectively and actively in the management of the Company for a period of 90 consecutive days or for shorter periods aggregating to 120 days (whether or not consecutive) during any consecutive 12 months.

“Effective Date” has the meaning specified in Section 2.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the regulations and guidance promulgated under it.
    
“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and guidance promulgated under it.

“Good Reason” means, without the Participant’s consent:

(i)    the occurrence of either of the following conditions which occurs prior to a Change in Control: (A) a material diminution in the Participant’s Base Salary, annual short-term incentive opportunity or annual long-term incentive opportunity, except as applicable generally to other similarly situated senior executives of the Company; or (B) the Company requiring the Participant to be based at any office or location outside of fifty miles from the Participant’s current employment location, except for travel reasonably required in the performance of the Participant’s responsibilities; or

(ii)    the occurrence of any of the following conditions which occurs following a Change in Control: (A) any diminution in the Participant’s Base Salary, annual short-term 

12

incentive opportunity or annual long-term incentive opportunity; (B) the Company requiring the Participant to be based at any office or location outside of fifty miles from the Participant’s current employment location, except for travel reasonably required in the performance of the Participant’s responsibilities; (C) a material diminution in the Participant’s authority, duties or responsibilities, which, for the Chief Executive Officer, Chief Financial Officer and/or General Counsel, will be deemed to occur (without limitation) if such Participant’s duties and responsibilities are in respect of an entity that is not the most senior entity following the Change in Control.

It shall be a condition precedent to the Participant’s right to terminate Participant’s employment for Good Reason (before or after a Change in Control) that (A) the Participant shall have first given the Company written notice stating with reasonable specificity the breach on which such termination is premised within ninety (90) days after the Participant becomes aware or should have become aware of such breach, and (B) if such breach is susceptible of cure or remedy, such breach has not been cured or remedied within forty-five (45) days after receipt of such notice.

“Health Benefit Continuation” means subsidy by the Company of the portion of the Participant’s COBRA premium that exceeds the amount of the premium paid by active employees for the same coverage for the period following the Participant’s termination of employment with the Company designated in Section 5.  The Company will include the subsidy in the Participant’s taxable income and no gross-up will be provided.

“In Contemplation of a Change in Control” means the termination of the Participant’s employment by the Company for reasons other than Cause, death, or Disability within the 6 months prior to a Change in Control if the Participant demonstrates by clear and convincing evidence that the termination (i) was at the request of a third party who had taken steps reasonably calculated or intended to effect a Change in Control, or (ii) otherwise arose in contemplation or in anticipation of a Change in Control.

“Participant” means a person who has become a participant pursuant to Section 4 of the Plan.    

“Plan” means this WellCare Health Plans, Inc. Executive Severance Plan.

“Prorated Bonus” means an amount equal to (A) the Average Bonus multiplied by (B) a fraction, the numerator of which is the number of days in the performance period that have elapsed through the date of termination of employment and the denominator of which is the number of days in such year. 

 “WellCare” means WellCare Health Plans, Inc., a Delaware corporation.

Amended and Restated by the Compensation Committee: December 13, 2018

13EX-10.1

 Exhibit 10.1 

[Regional Management Corp. Letterhead] 

February 12, 2019 
 Mr. Donald E.
Thomas 
 979 Batesville Road, Suite B 
 Greer, SC 29651 

 

	 	Re:	 Chief Financial Officer Transition Matters 

Dear Don: 
 You currently serve as the Executive
Vice President and Chief Financial Officer of Regional Management Corp. (the “Corporation”) pursuant to the terms of that certain Employment Agreement, entered into as of August 30, 2017, between you and the Corporation (the
“Employment Agreement”; terms used in this Letter Agreement that are not defined herein have the meanings given in the Employment Agreement). You have notified the Corporation that you intend to voluntarily terminate your at-will employment with the Corporation pursuant to Section 2.7(c) of the Employment Agreement following the completion of an orderly transition of duties and responsibilities from you to a new Chief Financial
Officer to be identified by the Corporation, with the effective date of such termination of employment to be determined in good faith by you and the Corporation (the actual date of termination of employment being referred to herein as the
“Termination Date”). 
 This Letter Agreement (the “Letter Agreement”), effective as of February 12,
2019 (the “Effective Date”), sets forth certain understandings, agreements, and obligations between you and the Corporation related to your proposed voluntary termination of employment. You and the Corporation acknowledge and agree
that you are not eligible for “Retirement” as that term is defined and construed under any Stock Plan (as defined herein), long-term incentive award agreement, or other plan or agreement, and as a result, your proposed voluntary
termination of employment pursuant to Section 2.7(c) of the Employment Agreement limits your compensation in the year of your termination to your base salary (and, if not paid by the time of your termination, your Annual Bonus for the preceding
year). You and the Corporation acknowledge and agree that the Corporation and its stockholders, including you, are benefited by an orderly transition of duties and responsibilities from you to a new Chief Financial Officer, and such orderly
transition will require you to remain employed for an undetermined period of time. Therefore, you and the Corporation agree as follows: 
 1.
Transition Duties. During the period between the Effective Date of this Letter Agreement and your Termination Date (such period, the “Transition Period”), you agree to 

 
continue to serve as Executive Vice President and Chief Financial Officer and fulfill the duties and responsibilities of such positions in accordance with the terms of the Employment Agreement,
applicable laws, rules, and regulations (“Applicable Law”), and the directions of the Chief Executive Officer of the Corporation; provided, however, that you acknowledge and agree that the Chief Executive Officer of the Corporation,
the Board of Directors of the Corporation (the “Board”), and/or the Compensation Committee of the Board (the “Committee”) may determine that your title, duties, and/or responsibilities should be modified as
appropriate to facilitate the hiring of and transition to a new Chief Financial Officer. You expressly agree to use your best efforts to assist with such hiring and transition. During the Transition Period, you will principally perform your services
to the Corporation from the Corporation’s principal office in Greer, South Carolina. 
 2. Nature of Termination of Employment.
You acknowledge and agree that your proposed termination of employment constitutes a voluntary termination of employment by you pursuant to Section 2.7(c) of the Employment Agreement and that it does not constitute a “Retirement,” as
such term is defined and construed under any Stock Plan or long-term incentive award agreement. Further, you acknowledge and agree that your modified duties and responsibilities, the appointment of a new Chief Financial Officer, and the other
changes to the terms and conditions of your employment described in or related to the terms of this Letter Agreement shall not constitute a termination by you for “Good Reason,” an “Involuntary Termination,” or a termination by
the Corporation without “Cause,” as such terms are defined and construed under the Employment Agreement, any Stock Plan or long-term incentive award agreement, or the Annual Incentive Plan (as defined herein), and that you expressly
consent to such changes in position, duties, and compensation. 
 3. Amendment of Employment Agreement. You and the Corporation
acknowledge and agree that, as of the Effective Date, the Employment Agreement shall be amended as provided in this Letter Agreement, and that the rights and obligations thereunder of you and the Corporation under the Employment Agreement will be
modified as provided by this Letter Agreement. You hereby agree to waive and release any rights or claims related to the Employment Agreement to the extent modified by this Letter Agreement. You further acknowledge and agree that your right to
compensation under the terms of the Employment Agreement, including the compensation provided for under Section 2.4 (“Compensation”) and Section 2.7 (“Termination”) of the Employment Agreement, shall be modified as
provided in this Letter Agreement, and that the terms of this Letter Agreement related to compensation shall instead control. 
 4.
Compensation and Benefits. The provisions of Section 2.4 of the Employment Agreement shall no longer apply, and the provisions of this Section 4 shall supersede Section 2.4 of the Employment Agreement. The provisions of this
Section 4 shall control with respect to your rights to the compensation and benefits described herein. You acknowledge and agree that the compensation to be received pursuant to this Letter Agreement constitutes sufficient consideration for
your rights and obligations under this Letter Agreement, including but in no way limited to your continued compliance with the restrictive covenants as described in Section 6 herein and 

  
 2 

 
Article III of the Employment Agreement (as amended herein), and your execution of a release of claims as provided in Section 11 herein. 

(a) Base Salary. During the Transition Period, you will be paid an annualized base salary (“Salary”) of
$400,000 (pro-rated for any partial year), subject to increase (but not to decrease) by the Committee in its sole discretion. Your Salary will be paid to you periodically in accordance with the normal payroll
practices of the Corporation. Your right to Salary will terminate upon the termination of your employment with the Corporation on the Termination Date. 

(b) Annual Bonus. As you know, pursuant to the Corporation’s Annual Incentive Plan, as amended and restated (the
“Annual Incentive Plan”), the Committee previously awarded you the opportunity to earn a cash bonus based upon the Corporation’s and your performance in 2018 (the “2018 Annual Bonus”). You will remain eligible
to earn the 2018 Annual Bonus in accordance with and subject to the parameters previously established by the Committee and communicated to you. In addition, pursuant to the Annual Incentive Plan, the Committee will award you the opportunity to earn
a cash bonus based upon the Corporation’s and your performance in 2019 (the “2019 Annual Bonus”), with a target bonus equal to one hundred percent (100%) of your Salary. No later than March 31, 2019, the Committee will
establish and communicate to you the performance criteria associated with the 2019 Annual Bonus. With respect to the payment of the 2018 Annual Bonus and the 2019 Annual Bonus (each, an “Annual Bonus”), (i) if your Termination Date
occurs before the payment of your 2018 Annual Bonus, if any, the Corporation will pay you such Annual Bonus notwithstanding such termination of employment, and (ii) the Corporation agrees to pay you a
pro-rated portion of the 2019 Annual Bonus, if any, that you would have received had you remained employed with the Corporation through the end of 2019 (with such
pro-ration calculated based on the number of days elapsed during 2019 through the Termination Date, divided by 365), but in each case only to the extent that such Annual Bonus is earned based on performance
goals established for 2018 or 2019, as applicable, under the Annual Incentive Plan, as determined by the Committee in its sole discretion. Any such Annual Bonus(es) shall be payable when the Annual Bonus(es) would otherwise have been paid under the
Annual Incentive Plan had you remained employed by the Corporation (but in any event shall be paid prior to March 14th of the year following the year in which the Annual Bonus was earned) and otherwise in accordance with the terms of the Annual
Incentive Plan. 
 (c) Completion Bonus. Contingent upon your continued compliance with this Letter Agreement and the
Employment Agreement, as amended herein, including the carrying out of the duties and responsibilities outlined in Section 1 herein, the Corporation will pay you a bonus of $200,000 (the “Completion Bonus”) following the
completion of an orderly transition of duties and responsibilities from you to a new Chief Financial Officer, with the date of such completion (the “Completion Date”) to be determined by the Committee in its discretion, such
determination not to be unreasonably delayed. You will not earn, and the Corporation will not pay, the Completion Bonus if you voluntarily terminate your employment prior to the Completion Date or if the Corporation terminates you for Cause. If the
Corporation terminates you without Cause prior to the Completion Date, the Completion Bonus shall be considered earned by you as of such Termination 

  
 3 

 
Date. The Completion Bonus, to the extent earned, will be paid within 45 days following the Termination Date. 

(d)     Long-Term Incentive Awards. As you know, you have been granted certain long-term incentive
awards under the Corporation’s 2011 Stock Incentive Plan (the “2011 Plan”) and 2015 Long-Term Incentive Plan, as amended and restated (the “2015 Plan,” and, together with the 2011 Plan, also referred to
individually as a “Stock Plan” and collectively as the “Stock Plans”), and related award agreements. Any equity, equity-based awards, or incentive awards granted to you shall continue in accordance with their terms
and shall be governed by the terms of the applicable Stock Plan and related award agreement(s). For clarity, Section 2.8 (“Amendment to Certain Stock Option Award Agreements”) of the Employment Agreement shall continue in accordance
with its terms and shall survive termination of the Employment Agreement, as amended by this Letter Agreement. You expressly agree that you will not be eligible to receive any long-term incentive award commencing in 2019. You also acknowledge that
the Corporation has no obligation to notify you of the pending expiration or forfeiture of any award. 
 (e) Other
Benefits. During the Transition Period, you may continue to participate in the Corporation’s benefit plans and arrangements in which you currently participate (including, for clarity, the benefits described under Section 2.5 of the
Employment Agreement), to the extent you remain eligible and subject to the Corporation’s sole discretion to modify or terminate such plans and arrangements at any time. Following the Termination Date, you and the Corporation agree to continue
to coordinate in good faith to ensure that, in accordance with Section 2.5(f) of the Employment Agreement, the Corporation pays (or has paid) you the amount necessary to put you in substantially the same
after-tax position that you would have been in had you not elected to include the disability insurance premiums referenced in Section 2.5(f) in income (taking into account all federal, state, and local
income and employment taxes due as a result of the inclusion of such disability insurance premiums in income). You acknowledge and agree that you are not entitled to any additional compensation and benefits under the Employment Agreement, any Stock
Plan or related award agreement, the Annual Incentive Plan, this Letter Agreement, or otherwise except for the compensation and benefits expressly provided herein and accrued benefits under the Corporation’s 401(k) retirement plan. 

5. Severance. You acknowledge and agree that you are not entitled to any severance payments, including but not limited to under
Section 2.7 of the Employment Agreement (as amended herein), solely as a result of the changes to your employment terms as described in this Letter Agreement. Section 2.7 of the Employment Agreement shall be deemed amended by the
provisions of Section 2 herein and as described in this Section 5. You and the Corporation expressly agree that the provisions of Section 2.7(a) and Section 2.7(e) providing for the payment of certain severance benefits following
termination by the Corporation without “Cause,” termination by you for “Good Reason” (as such terms are interpreted in accordance with this Letter Agreement), and termination by the Corporation in the event of your
“Disability” shall continue in full force and effect with respect to associated termination events occurring on or before March 31, 2019, but that your rights to any such severance benefits shall terminate with respect to associated
termination events occurring after March 31, 2019. 

  
 4 

 6. Continuing Obligations. You expressly acknowledge and agree that you are obligated
to, shall continue to be obligated to, and shall, comply with the provisions of Article III (“Covenants”) and Section 4.7 (“Choice of Law; Forum Selection; Jury Waiver”) of the Employment Agreement (consistent with the
provisions of Section 3.12 of the Employment Agreement), and for the purposes of Article III of the Employment Agreement, the “Employment Period” shall include such period during which you are employed by the Corporation as an
employee through the Termination Date, notwithstanding the termination or modification of other provisions of the Employment Agreement or other changes to the terms and conditions of your employment. You acknowledge and agree that the terms and
conditions of Article III of the Employment Agreement are reasonable and necessary to protect the legitimate interests of the Corporation and that any violation of Article III of the Employment Agreement by you may cause substantial and irreparable
harm to the Corporation. You also agree that the Corporation may seek any remedies set forth in Article III of the Employment Agreement should you violate Article III of the Employment Agreement. You and the Corporation specifically agree that
Article III of the Employment Agreement is incorporated hereto by reference and integrated herein. Notwithstanding the foregoing, (a) nothing in this Letter Agreement prohibits you from reporting possible violations of federal law or regulation
to any governmental agency or entity, including but not limited to the Department of Justice, the Securities and Exchange Commission, the Congress, or any agency Inspector General, or making other disclosures that are protected under the
whistleblower provisions of federal law or regulation, and you acknowledge and understand that you do not need the prior authorization of the Corporation to make any such reports or disclosures and are not required to notify the Corporation that you
have made or will make such reports or disclosures; and (b) you will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a
federal, state, or local government official, either directly or indirectly, or to an attorney, and (B) solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document
filed in a lawsuit or other proceeding, if such filing is made under seal. 
 7. Continuing Cooperation. Until the expiration of the
applicable statutes of limitations, you agree to provide continuing cooperation to the Corporation in the prosecution and/or defense of any asserted or unasserted claims, charges, or lawsuits pending against it. Such cooperation shall include, but
not be limited to, providing the Corporation with information, affidavits, deposition testimony, or testimony as a witness in any forum; provided, however, that compliance with this Section 7 will not be enforced in such a way as to impose an
undue burden upon you. You also agree to participate in joint messages to financial institutions and oversight agencies. 
 8. Attorney
Fees Reimbursement. The Corporation shall pay the reasonable fees and expenses of your attorney not to exceed $10,000 in connection with the review and negotiation of this Letter Agreement. 

9. Employment At-Will. You acknowledge and agree that your employment is at-will and may be terminated by you or the Corporation, for any reason or no reason, at any time. 
 10.
Withholding and Taxes. You acknowledge that the Corporation shall deduct from any compensation payable to you or payable on your behalf under this Letter Agreement or 

  
 5 

 
otherwise all applicable federal, state, and local income and employment taxes and other taxes and withholdings required by Applicable Law. You acknowledge that the Corporation has made no
representation or warranty regarding the tax consequences associated with the benefits described under this Letter Agreement, that you agree to pay any federal, state, and local taxes for which you may be personally liable as a result of the
benefits under this Letter Agreement, and that the Corporation has no obligation to achieve any certain tax result for you. 
 11. Waiver
and Release. You acknowledge and agree that the Corporation may at any time require, as a condition to receipt of the Completion Bonus and the 2019 Annual Bonus payable under this Letter Agreement, that you (or a representative of your estate)
execute a waiver and release of claims discharging the Corporation and its subsidiaries, and their respective affiliates, and its and their officers, directors, managers, employees, agents, and representatives and the heirs, predecessors,
successors, and assigns of all of the foregoing, from any and all claims, actions, causes of action, or other liability, whether known or unknown, contingent or fixed, arising out of or in any way related to your employment, or the ending of your
employment with the Corporation or the benefits thereunder, including, without limitation, any claims under the Employment Agreement, this Letter Agreement, or other related instruments. The waiver and release will be in a form determined by the
Corporation, substantially similar to the form of release attached to the Employment Agreement as Exhibit A, as modified, mutatis mutandis, to reflect the terms of this Letter Agreement. The Corporation shall provide you with the release
within 15 days following the Termination Date and shall not be obligated to provide you with the Completion Bonus or the 2019 Annual Bonus unless (a) within 30 days following your receipt of the release from the Corporation, (i) you sign
and deliver the release, (ii) you have not revoked the release, and (iii) the rescission periods provided by Applicable Law have expired, and (b) you are in substantial compliance with the material terms of this Letter Agreement and
the Employment Agreement (including but not limited to Article III thereof), as modified by this Letter Agreement, as of the date of the payment of the Completion Bonus and the 2019 Annual Bonus. 

12. Indemnification. You will continue to be indemnified and held harmless by the Corporation for any third-party claims made against
you as an employee and/or executive of the Corporation in accordance with the Corporation’s amended and restated bylaws in effect on the date hereof. 

13. Amendment and Termination; Entire Agreement; Waiver. This Letter Agreement may be amended or terminated by a written agreement
between you and the Corporation. Except as otherwise provided herein, this Letter Agreement and the Employment Agreement, as modified by this Letter Agreement, contain the entire agreement between you and the Corporation related to the subject
matter hereof and supersede all prior agreements and understandings with respect to such subject matter, and you and the Corporation have made no agreements, representations, or warranties related to the subject matter of this Letter Agreement that
are not set forth herein. No term or condition of this Letter Agreement shall be deemed to have been waived, except by a statement in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be
deemed a continuing waiver unless specifically stated, shall operate only as to the specific term or condition waived, and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived.

  
 6 

 14. Compliance with Code Section 409A. The Corporation and you
agree that you both will cooperate in good faith so that no compensation paid to you by the Corporation under this Letter Agreement will violate Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and
the regulations promulgated thereunder; provided, however, that you acknowledge and agree that in the event that this Letter Agreement or any benefit described herein shall be deemed not to comply with Code Section 409A, then neither the
Corporation, the Board, the Committee, nor its or their designees, agents, or affiliates shall be liable to you or other persons for actions, decisions, or determinations made in good faith. You acknowledge and agree that you are considered a
“specified employee” within the meaning of Code Section 409A. As a result, the payment of any amounts that are considered deferred compensation subject to Code Section 409A and are to be paid on account of your separation from
service shall be deferred, as required by Code Section 409A(a)(2)(B)(i), for six (6) months after the Termination Date or, if earlier, the date of your death (the “409A Deferral Period”). Any payments that otherwise would
have been made during the 409A Deferral Period shall be paid in a lump sum on the first payroll date after the 409A Deferral Period expires, and the balance of any payments shall be made as described herein. Whenever payments under this Letter
Agreement are to be made in installments, each such installment shall be deemed to be a separate payment for purposes of Code Section 409A. Notwithstanding anything to the contrary contained herein, with respect to any reimbursement of
expenses, or any provision of in-kind benefits, that are subject to Code Section 409A, and related regulations or other guidance, the following conditions shall apply: (a) the expenses eligible for
reimbursement or the amount of in-kind benefits provided in any one taxable year shall not affect the expenses eligible for reimbursement or the amount of in-kind
benefits provided in any other taxable year, except for any medical reimbursement providing for the reimbursement of expenses referred to in Code Section 105(b); (b) the reimbursement of an eligible expense shall be made no later than the last
day of your taxable year following the taxable year in which such expense was incurred; and (c) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another
benefit. 
 15. Recoupment, Ownership, and Other Policies or Agreements. As a condition to entering into this Letter Agreement, you
expressly agree and acknowledge that you remain subject to certain forfeiture and recoupment (or “clawback”) restrictions and requirements, including but not limited to forfeiture and recoupment provisions that apply in the event of the
breach of restrictive covenants applicable to you, pursuant to (a) the Corporation’s Compensation Recoupment Policy, (b) the Stock Plans and related award agreements, and (c) the Annual Incentive Plan. In addition, you
acknowledge that you are subject to any such compensation recovery, recoupment, forfeiture, or other similar provisions as may apply to you under Applicable Law. 

16. Beneficiary. If you die before receiving all of the amounts payable to you in accordance with the terms and conditions of this
Letter Agreement, such amounts shall be paid to the beneficiary (“Beneficiary”) designated by you in writing to the Corporation during your lifetime, or if no such Beneficiary is designated, to your estate. You may change your
designation of Beneficiary or Beneficiaries at any time or from time to time without the consent of any prior Beneficiary, by submitting to the Corporation in writing a new designation of Beneficiary. 

17. Governing Law; Jurisdiction; Venue. All matters relating to the interpretation, construction, application, validity, and enforcement
of this Letter Agreement shall be governed by 

  
 7 

 
the laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule, whether of the State of Delaware or any other jurisdiction, that would cause the
application of laws of any jurisdiction other than the State of Delaware. You and the Corporation knowingly and voluntarily agree that any controversy or dispute arising out of or otherwise related to this Letter Agreement, including any employment
or statutory claim, shall be tried exclusively, without jury, and consent to personal jurisdiction in the state courts of Greenville, South Carolina or the United States District Court for the District of South Carolina situated in Greenville, South
Carolina, as appropriate. 
 18. Assignment. This Letter Agreement shall not be assignable, in whole or in part, by either party
without the written consent of the other party, except that the Corporation may, without your written consent, assign its rights and obligations under this Letter Agreement to any corporation or other business entity (a) with which the
Corporation may merge or consolidate, or (b) to which the Corporation may sell or transfer all or substantially all of its assets or capital stock. 

19. Separate Representation. You hereby acknowledge that you have had the opportunity to receive independent advice from counsel of your
own selection in connection with this Letter Agreement and have not relied to any extent on any director, officer, or stockholder of, or counsel to, the Corporation in deciding to enter into this Letter Agreement. 

20. Notices. Any notice hereunder shall be in writing and shall be deemed to have been duly given if delivered by hand, sent by
reputable next-day commercial courier, or sent by registered or certified mail, return receipt requested, postage prepaid, to the party to receive such notice addressed as follows: 

If to the Corporation: 
 Regional
Management Corp. 
 979 Batesville Road, Suite B 

Greer, SC 29651 
 Attention:
General Counsel 
 With a copy to: 

Womble Bond Dickinson (US) LLP 

One Wells Fargo Center 
 Suite
3500, 301 South College Street 
 Charlotte, NC 28202-6037 

Attention: Jane Jeffries Jones 

If to you, to your home address on file with the Corporation’s Human Resources department. 

or addressed to such other address as may have been furnished to the sender by notice hereunder. All notices shall be deemed given (a) on the date on
which delivered if delivered by hand, (b) on the next business day if sent by reputable overnight commercial courier, or (c) three business days after deposit in the mail if sent by certified mail, return receipt requested postage prepaid,
except that notice of change of address will be effective only upon receipt by the other party. 

  
 8 

 21. Counterparts. This Letter Agreement may be executed in any number of
counterparts, and such counterparts executed and delivered, each as an original, shall constitute but one and the same instrument. A copy of this Letter Agreement bearing the facsimile, photostatic, PDF, or other copy of a party hereto shall be as
valid for all purposes as a copy bearing that party’s original signature. 
 22. Severability. To the extent that any portion of
any provision of this Letter Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of this Letter Agreement shall be unaffected and shall continue in full force and effect. 

23. Captions and Headings. The captions and paragraph headings used in this Letter Agreement are for convenience of reference only and
shall not affect the construction or interpretation of this Letter Agreement or any of the provisions hereof. 
 On behalf of the Board and
the Corporation, we thank you for your service as Chief Financial Officer and look forward to your continued service in connection with this executive transition. If the terms of this Letter Agreement are acceptable, please sign the Letter Agreement
below and return it to me at your earliest opportunity. 
  

	
	Sincerely,
	
	/s/ Peter R. Knitzer
	 Peter R. Knitzer
 President and Chief
Executive Officer

 I have read and understand the provisions of this Letter Agreement and I hereby agree to the terms of
the Letter Agreement. 
  

	
	Signature:
	
	/s/ Donald E. Thomas
	 Donald E. Thomas
 Date:
February 12, 2019

  
 9

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