Document:

Exhibit
10.5

 

BRIGHT
HEALTH INC.

OPTION
GRANT NOTICE

2016
STOCK INCENTIVE PLAN

 

Bright
Health Inc., a Delaware corporation (the “Company”), pursuant to its 2016 Stock Incentive Plan (the “Plan”),
hereby grants to the Optionee an option to purchase the number of shares of the Company’s Common Stock, par value $0.0001
(the “Common Stock”), set forth below (the “Option”). The Option is subject to all of the
terms and conditions as set forth herein and in the Option Agreement attached hereto and the Plan.

 

	Optionee:
	Date
    of Grant:
	Number
    of Option Shares:	 	 
	Exercise
    Price per Share:
	Expiration
    Date:
	Type
    of Grant:	☐ Incentive Stock Option      ☐ Non-Statutory Stock Option
	Exercise
    and Vesting Schedule:

 

 

 

The
undersigned Optionee acknowledges that he or she has received a copy of this Grant Notice, the Option Agreement and the Plan.
As an express condition to the grant of the Option hereunder, the Optionee agrees to be bound by the terms of this Grant Notice,
the Option Agreement and the Plan. The undersigned Optionee further acknowledges that as of the Date of Grant, this Grant Notice,
the Option Agreement and the Plan set forth the entire understanding between the Optionee and the Company regarding the acquisition
of stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options
previously granted and delivered to the Optionee under the Plan, and (ii) any agreements noted in an attachment to this Grant
Notice.

 

	BRIGHT
    HEALTH INC.	 	OPTIONEE
	 	 	 	 
	By:	 	 	 
	Signature	 	Signature
	 	 	 	 
	Title:	 	 	Date:	 
	 	 	 	 
	Date:	 	 	Address:	 
	 	 	 	 

    

    

    

OPTION
AGREEMENT

UNDER
THE

BRIGHT
HEALTH INC. 2016 STOCK INCENTIVE PLAN

 

Pursuant
to the Grant Notice (the “Grant Notice”), and subject to the terms of this Option Agreement and the Bright
Health Inc. 2016 Stock Incentive Plan (the “Plan”), Bright Health Inc., a Delaware corporation (the “Company”),
and the Optionee agree as follows. Capitalized terms not otherwise defined in this Agreement or in the Grant Notice will have
the same meanings as set forth in the Plan.

 

1.            
Grant of Option. Subject to the terms and conditions set forth herein and in the Plan, the Company hereby grants to the
Optionee the Option to purchase up to the number of shares of Common Stock provided in the Grant Notice (the “Option
Shares”), at an exercise price per share as provided in the Grant Notice.

 

2.            
Termination of Service. Subject to the limitations contained herein and in the Plan: (a) if the Optionee’s Service
is terminated by reason of death, Disability or Retirement, then this Option will, to the extent exercisable as of the date of
such termination, remain exercisable in full for a period of six (6) months after the date of such termination (but in no event
after the expiration date of this Option, as set forth in the Grant Notice (the “Expiration Date”)); and (b)
if the Optionee’s Service is terminated for any reason other than death, Disability or Retirement, then this Option will,
to the extent exercisable as of the date of such termination, remain exercisable in full for a period of ninety (90) days after
the date of such termination (but in no event after the Expiration Date).

 

3.            
Forfeiture Events. If the Optionee is determined by the Committee, acting in its sole discretion, to have taken any action
that would constitute Cause or an Adverse Action, irrespective of whether such action or the Committee’s determination occurs
before or after termination of the Optionee’s Service and irrespective of whether or not the Optionee was terminated for
Cause: (a) all rights of the Optionee under this Agreement and the Plan will terminate and be forfeited without notice of any
kind; and (b) the Committee in its sole discretion may require the Optionee to surrender and return to the Company all or any
shares of Common Stock received, or to disgorge all or any profits or any other economic value (however defined by the Committee)
made or realized by the Optionee, during the period beginning one year prior to the Optionee’s termination of Service in
connection with this Option or any shares of Common Stock issued upon the exercise of this Option.

 

4.             Method
of Exercise; Withholding.

 

(a)
            Notice. This Option may be exercised by the Optionee
in whole or in part from time to time, subject to the conditions contained in the Plan and in this Agreement, by delivery, in
person, by facsimile or electronic transmission (if confirmed) or through the mail, to the Company at its principal executive
office in Minnesota (Attention: Chief Financial Officer), of a written notice of exercise. Such notice must be in a form satisfactory
to the Committee, must identify this Option, must specify the number of Option Shares with respect to which this Option is being
exercised, and must be signed by the person or persons so exercising this Option. Such notice must be accompanied by payment in
full of the total purchase price of the Option Shares purchased. If this Option is being exercised, as provided by the Plan, by
any person or persons other than the Optionee, the notice must be accompanied by appropriate proof of right of such person or
persons to exercise this Option. As soon as practicable after the effective exercise of this Option, the Optionee will be recorded
on the books of the Company as the owner of the shares purchased, and the Company will deliver to the Optionee one or more duly
issued stock certificates evidencing such ownership.

    1

    

    

(b)
            Stockholders’ Agreement. The Optionee hereby agrees
that upon exercise of this Option, the Optionee (or his or her beneficiary, if applicable) shall be bound by the terms and conditions
of the Stockholders’ Agreement of the Company, dated as of March 25, 2016 (as amended, the “Stockholders’
Agreement”). The rights and obligations of the Optionee with respect to Common Stock obtained upon exercise of this
Option shall be governed by the terms and conditions of the Stockholders’ Agreement.

 

(c)
            Payment. The total purchase price of the shares to be purchased
upon exercise of this Option must be paid entirely in cash or cash equivalent (including check, bank draft or money order); provided,
however, that the Committee, in its sole discretion, may allow such payments to be made, in whole or in part, by: (i) tender,
or attestation as to ownership, of Previously Acquired Shares; (ii) a promissory note (on terms acceptable to the Committee in
its sole discretion); (iii) such other consideration as may be approved by the Committee from time to time; or (iv) a combination
of such methods.

 

(d)
            Withholding. The Company is entitled to (i) withhold
and deduct from future wages of the Optionee (or from other amounts that may be due and owing to the Optionee from the Company
or a Subsidiary), or make other arrangements for the collection of, an amount the Company deems necessary to satisfy its obligation
to withhold federal, foreign, state or local income or other taxes attributable to this Option, including the grant or exercise
of this Option or a disqualifying disposition of stock if this Option is an Incentive Stock Option; (ii) withhold cash paid or
payable or shares of Common Stock from the shares issued or otherwise issuable to the Optionee in connection with this Option;
or (iii) require the Optionee promptly to remit the amount of such withholding to the Company before taking any action, including
issuing any shares of Common Stock, with respect to this Option.

 

5.             Rights
of Optionees; Transferability

 

(a)
            Service. Nothing in the Plan or in this Agreement confers
upon the Optionee any right to continue in the Service of the Company or any Subsidiary or interferes with or limits in any way
the right of the Company or any Subsidiary to terminate the Service of the Optionee at any time, with or without notice and with
or without cause.

 

(b)
             Rights as a Stockholder. The Optionee or a permitted
transferee of this Option will have no rights and no privileges as a stockholder of the Company unless and until this Option is
duly exercised and the Optionee (or such transferee) has become the holder of record of shares of Common Stock.

 

(c)
             Non-Transferability. Except pursuant to testamentary
will or the laws of descent and distribution or as otherwise expressly permitted by the Plan, unless approved by the Committee
in its sole discretion, no right or interest of the Optionee in this Option prior to the exercise of this Option will be assignable
or transferable, or subjected to any lien, during the lifetime of the Optionee, either voluntarily or involuntarily, directly
or indirectly, by operation of law or otherwise.

    2

    

    

6.            Change
in Control.

 

(a)
            Treatment. Pursuant to Section 11.2 of the Plan, in connection
with a Change in Control, unless provision is made in connection with the Change in Control in the sole discretion of the parties
to the Change in Control for the assumption or continuation of this Option by the successor entity, this Option, whether or not
vested, will be canceled and terminated and in connection with such cancellation and termination the Optionee will receive for
each Option Share a cash payment (or the delivery of shares of stock, other securities or a combination of cash, stock and securities
with a fair market value (as determined by the Committee in good faith) equivalent to such cash payment) equal to the difference,
if any, between the consideration received by stockholders of the Company in respect of a share of Common Stock in connection
with such Change in Control and the purchase price per share under this Option, multiplied by the number of Option Shares subject
to this Option that were vested at the time of cancellation; provided, however, that if such product is zero ($0)
or less this Option may be canceled and terminated without payment therefor.

 

(b)
            Stockholders’ Representative. In connection with any
Change in Control, the Optionee agrees that (i) any Stockholders’ Representative appointed by the Company’s stockholders
in connection with such Change in Control will, without any further authorization or other action by the Optionee, be appointed
as such Optionee’s representative and attorney-in-fact in connection with such Change in Control on the same terms and to
the same extent as such Stockholders’ Representative is appointed by the Company’s stockholders in connection with
such Change in Control and (ii) the Optionee will execute promptly on request of the Company any documents the Company deems necessary
or desirable to provide further assurance of the foregoing appointment.

 

7.             Securities
Laws Restrictions.

 

(a)
            General Restrictions. The Company will not be required to
issue any shares of Common Stock pursuant to this Option, and the Optionee may not sell, assign, transfer or otherwise dispose
of shares of Common Stock issued pursuant to this Option unless: (i) there is in effect with respect to such shares a registration
statement under the Securities Act and any applicable securities laws of a state or foreign jurisdiction or an exemption from
such registration under the Securities Act and applicable state or foreign securities laws; and (ii) any other conditions set
forth in Section 13.1 of the Plan are satisfied. The Company may condition such issuance, sale or transfer upon the receipt of
any representations or agreements from the parties involved, and the placement of any legends on certificates representing shares
of Common Stock, as may be deemed necessary or advisable by the Company in order to comply with such securities law or other restrictions.

 

(b)            Market
Stand-Off Agreement. The holder of any shares of Common Stock issued pursuant to this Option may not sell, assign, transfer
or otherwise dispose of, make any short sale of, grant any option for the purchase of, or enter into any hedging or similar transaction
with the same economic effect as a sale of, any Common Stock (or other securities) of the Company held by such holder for a period
of time after the effective date of certain registration statements of the Company filed under the Securities Act (other than
those included in the registration), as set forth in Section 13.2 of the Plan.

    3

    

    

8.             Miscellaneous.

 

(a)
           Option Subject to Plan. This Option and the Option Shares granted
and issued pursuant to this Agreement have been granted and issued under, and are subject to the terms of, the Plan. The terms
of the Plan are incorporated by reference in this Agreement in their entirety, and the Optionee, by execution of the Grant Notice,
acknowledges having received a copy of the Plan. The provisions of this Agreement will be interpreted as to be consistent with
the Plan, and any ambiguities in this Agreement will be interpreted by reference to the Plan. If any provision of this Agreement
is inconsistent with the terms of the Plan, the terms of the Plan will prevail.

 

(b)
            Binding Effect. This Agreement will be binding upon the heirs,
executors, administrators and successors of the parties to this Agreement.

 

(c)
            Changes in Capital Structure. The Option granted under this
Agreement will be subject to adjustment or substitution as provided in Section 4.3 of the Plan.

 

(d)
            Governing Law. All rights and obligations under this Agreement
will be construed in accordance with the Plan and governed by the laws of the State of Delaware, without regard to conflicts of
laws provisions.

 

(e)
            Entire Agreement. This Agreement, the Grant Notice, the Plan
and the Stockholders’ Agreement set forth the entire agreement and understanding of the parties to this Agreement with respect
to the grant and exercise of this Option and the administration of the Plan and supersede all prior agreements, arrangements,
plans and understandings relating to the grant and exercise of this Option and the administration of the Plan.

 

(f)
             Amendment and Waiver. Other than as provided in
the Plan, this Agreement may be amended, waived, modified or canceled only by a written instrument executed by the parties to
this Agreement or, in the case of a waiver, by the party waiving compliance.

 

(g)
           Construction. Wherever possible, each provision of this Agreement
will be interpreted so that it is valid under the applicable law. If any provision of this Agreement is to any extent invalid
under the applicable law, such provision will still be effective to the extent it remains valid. The remainder of this Agreement
also will continue to be valid, and the entire Agreement will continue to be valid in other jurisdictions.

    4Exhibit 10.6

 

BRIGHT HEALTH MANAGEMENT
INC.

ANNUAL INCENTIVE PLAN

 

		SECTION I.	ESTABLISHMENT AND PURPOSE

 

Bright Health Management Inc. (the “Company”) hereby establishes
this Annual Incentive Plan (the “Plan”), effective January 1, 2020 through December 31, 2020. The Plan complements
the Company’s compensation philosophy by providing market-competitive incentive compensation designed to reward employees for Company
profitability, individual performance, and overall collaboration.

 

The incentive provided to a Participant under the Plan is termed an
 “Individual Incentive Award.” The Plan sets out the terms under which an Individual Incentive Award may be granted and payable
to a Participant.

 

		SECTION II.	DEFINITIONS

 

For purposes of the Plan, unless the context otherwise requires, the
following terms have the meanings set out below:

 

		2.1.	“Board” means the Board of Directors of the Company, as constituted from time to time.

 

		2.2.	“Business Leader” means the Company-designated
Business or Functional leader, or successor position, to whom the Participant reports, directly or indirectly.

 

		2.3.	“Cause” means the Participant’s dishonesty,
fraud, misappropriation of funds, theft, harassment, acts of violence, acts punishable by law, gross misconduct, misconduct as described
in the Bright Health Employee Handbook.

 

		2.4.	“Code” means the Internal Revenue Code of 1986,
as amended, and the Treasury Regulations or authoritative guidance promulgated thereunder, and any successor thereto.

 

		2.5.	“Committee” means the committee appointed by the Board to administer the Plan pursuant to Section 6.1.

 

		2.6.	“Disabled” or “Disability,”
with respect to an employee, means that the employee is unable to engage in any substantial gainful activity by reason of medically determinable
physical or mental impairment that is expected to last for a continuous period of not less than 12 months.

 

		2.7.	“Executive Leader” means a member of the Executive
Leadership Team of the Company.

 

		2.8.	“Fiscal Year” means the Company’s fiscal
year, January 1st through December 31st.

 

		2.9.	“Incentive Award Payment Date” means the date that
the Incentive Award is paid. This date is after end of the Fiscal Year in which the Individual Incentive Award is granted, but no later
than the 15th day of March of that year.

 

		2.10.	“Individual Incentive Award” means the amount that
may be awarded to a Participant, as a lump sum cash award.

 

CONFIDENTIAL

 

    1

     

    

 

		2.11.	“Participant,” with respect to an Individual Incentive
Award, means an employee to whom the Individual Incentive Award has been granted. In order to be granted an Individual Incentive Award
the employee must satisfy all of the eligibility requirements set out in Section III.

  

		2.12.	“Termination of Employment” means the voluntary or involuntary end of the employment relationship between a Participant
and the Company (and all related entities).

 

		SECTION III.	ELIGIBILITY

 

		3.1.	Eligibility Requirements. An employee must satisfy the following
requirements in order to be granted an Individual Incentive Award:

 

		(a)	Minimum Service. The employee must have been employed by the Company for at least two consecutive months ending on the last
day of the Fiscal Year in which the Individual Incentive Award is granted.

 

		(b)	Employment. To be eligible to be granted an Individual Incentive Award, the employee must have been employed by the Company
continuously until the Incentive Award Payment Date.

 

		(c)	Exception for Death or Disability. An employee who otherwise satisfies the eligibility requirements but fails to satisfy the
employment requirement solely due to the employee’s death or Disability and meets the eligibility requirements in Section 3.1
(a) will nevertheless be eligible to be granted an Individual Incentive Award.

 

		3.2.	Termination of Employment for Cause. Notwithstanding anything
in the Plan to the contrary, in no event will a Participant be entitled to receive any Individual Incentive Award if the Participant has
a termination of employment due to Cause.

 

		SECTION IV.	INDIVIDUAL INCENTIVE AWARDS

 

A participant’s Individual Incentive Award for a Fiscal Year,
if any, is completely discretionary based on individual, team and Company performance results, and are subject to the eligibility requirements
set forth in the Plan. Individual Incentive Awards are prorated for time employed during the Fiscal Year.

 

The Business Leader, with the approval of an Executive Leader and the
CEO, will determine the amount of the Individual Incentive Award, if any, granted to an employee for a Fiscal Year. Executive Leader Individual
Incentive Awards, including the CEO, will be approved by the Board of Directors.

 

		SECTION V.	PAYMENT OF AWARDS

 

		5.1	Time and Form of Payment

 

Individual Incentive Awards will be paid as lump sum cash awards
on the Incentive Award Payment Date.

 

		5.2	Death or Disability

 

If,
after the Fiscal Year but before the Incentive Award Payment Date, a Participant becomes Disabled or dies, the Participant’s
entire Individual Incentive Award will be paid on the Incentive Award Payment Date. Payment of an Award following a Participant’s
death shall be made to the Participant’s designated beneficiary, surviving spouse or estate.

 

CONFIDENTIAL

 

    2

     

    

 

		SECTION VI.	ADMINISTRATION

 

		6.1	Administration by the Committee; Decisions Binding

 

The Plan will be interpreted and administered by the Committee,
which shall consist of at least two members appointed by the Board. The actions of the Committee will be final and binding on all persons,
including the Participants and any Beneficiary, and will be given the maximum deference permitted by law.

 

		6.2	Authority of the Committee

 

The Committee, in its sole discretion, will have the power,
subject to, and within the limitations of, the express provisions of the Plan to:

 

		(a)	Determine from time to time which employees of the Company will be designated as eligible to participate in the Plan and the terms
under which they will be entitled to participate;

 

		(b)	Establish, change and adjust, in its sole discretion, an eligible employee’s Individual Incentive Award; and

 

		(c)	Interpret all Plan provisions and decide all disputes concerning eligibility and payment under the Plan.

 

		6.3	Delegation by the Committee

 

The Committee may delegate its powers and responsibilities
under the Plan to one or more officers of the Company.

 

		SECTION VII.	GENERAL PROVISIONS

 

		7.1	Amendment and Termination of
the Plan

 

The Plan may be terminated, modified, amended, or changed at
any time for any reason by the Committee, provided however, that no payments under this Plan will be made except as may be allowable by
Section 409A of the Code and other applicable law.

 

		7.2	Funding

 

The Plan will be funded out of the Company’s general
assets. No provision of the Plan will require the Company, for the purpose of satisfying any obligations under the Plan, to purchase assets
or place any assets in a trust or other entity to which contributions are made or otherwise to segregate any assets, nor will the Company
maintain separate bank accounts, books, records or other evidence of the existence of a segregated or separately maintained or administered
fund for such purposes. No Participant or Beneficiary will have a right under the Plan other than as an unsecured general creditor of
the Company.

 

CONFIDENTIAL

 

    3

     

    

 

		7.3	No Guarantee of Future Service

 

Selection of an employee to participate under the Plan will
not provide any guarantee or promise of continued employment with the Company (or any of its subsidiaries), and the Company (or any subsidiary
employing the employee) retains the right to terminate the employment of any employee at any time, with or without cause, for any reason
or no reason, except as may be restricted by law or contract.

 

		7.4	No Right to Award

 

The Plan does not create a contractual obligation on the part
of the Company to provide Individual Incentive Awards (except as specifically provided in the Plan) or other compensation. The grant or
payment of an Individual Incentive Award in any Fiscal Year does not imply any entitlement to such grant or payment for any subsequent
Fiscal Year.

 

		7.5	Tax Withholding/Social Charges

 

The Company has the power and the right to deduct or withhold
an amount sufficient to satisfy all Federal, state, local taxes (including social charges) that the Company reasonably determines is required
to be withheld with respect to any Individual Incentive Award made under the Plan.

 

		7.6	Compliance with Section 409A

 

Notwithstanding
anything in the Plan to the contrary, Individual Incentive Awards are intended to be exempt from the requirements of Section 409A
of the Code as “short term deferral,” and in the event that any Individual Incentive Award does not qualify for treatment
as an exempt short-term deferral, it is intended that such amount will be paid in a manner that satisfies the requirements of Section 409A
of the Code. The Plan and any Individual Incentive Award shall be construed and administered to give full effect to such intention. Notwithstanding
anything in the Plan to the contrary, the Company makes no guarantee of any tax result with respect to the payments hereunder, and each
Participant is fully responsible for all individual income and employment taxes owed upon any payment made to the Participant.

 

		7.7	No Assignment or Transfer

 

To the maximum extent permitted by law, a Participant’s
right or benefits under this Plan will not be subject to anticipation, alienation, sale, assignment, pledge, encumbrance or charge, and
any attempt to anticipate, alienate, sell, assign, pledge, encumber or charge the same will be void. No right or benefit hereunder will
in any manner be liable for or subject to the debts, contracts, liabilities, or torts of the person entitled to such benefit.

 

		7.8	Governing Law and Jurisdiction

 

The
Plan and each Individual Incentive Award made under and/or in accordance with the Plan, and all determinations made and actions taken
pursuant thereto, to the extent not otherwise governed by the Internal Revenue Code or other laws of the United States, shall be governed
by the laws of the State of Delaware and construed in accordance therewith without giving effect to any principles of conflicts of laws.
Any legal proceeding regarding controversies, disputes, and claims arising hereunder shall be submitted to the state courts located
in Hennepin County, State of Minnesota or the United States District Court for the District of Minnesota sitting in Hennepin County, State
of Minnesota.

 

		7.10	Successors and Assigns

 

The Plan will be binding upon and will inure to the benefit
of the Company and its successor(s) and assign(s).

 

CONFIDENTIAL

 

    4

     

    

 

This Bright Health Management Inc. Annual Incentive Plan is adopted
by an authorized officer of the Company effective as of the 15 day of Oct., 2020.

 

	By:	/s/ Keith Nelsen	 
	 	 	 
	 	 	 
	Name:	Keith Nelsen	 
	 	 	 
	 	 	 
	Title:	General Counsel	 

 

CONFIDENTIAL

 

    5

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