Document:

EX-10.3

EXHIBIT 10.3

AMERIGROUP CORPORATION

2009 EQUITY INCENTIVE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

This Nonqualified Stock Option Agreement (the “Option Agreement”) is made and entered into as
of       , 20       (the “Date of Grant”), by and between AMERIGROUP Corporation, a Delaware
corporation (the “Company”), and        (the “Optionee”). Capitalized terms not defined
herein shall have the meaning ascribed to them in the Company’s 2009 Equity Incentive Plan (the
“Plan”).

1. Number of Shares. The Company hereby grants to Optionee an option (this “Option”)
to purchase        Shares (the “Option Shares”) at an Exercise Price per Share of $     ,
subject to all of the terms and conditions of this Option Agreement and the Plan.

2. Option Term. The term of the Option (the “Option Term”) shall commence on the Date
of Grant set forth above and, unless the Option is previously terminated pursuant to Section 5
below, shall terminate on the [ ] anniversary thereof (the “Expiration Date”). As of the
Expiration Date, all rights of Optionee hereunder shall terminate.

3. Conditions of Exercise.

AT THE DISCRETION OF THE ADMINISTRATOR:

(a) Subject to Section 5 below, the Option shall become vested on the Date of Grant as to
     percent (     %) of the Option Shares, as to an additional        percent (     %) of the
Option Shares on       , 20       and as to an additional        percent (     %) of the Option Shares
quarterly thereafter, such that the Option shall become fully (100%) vested on       , 20      .

[OR]

(a) Subject to Section 5 below, the Option shall become vested as to        of the
Option Shares on the        anniversary of the Date of Grant, and as to an additional        of
the Option Shares        thereafter, such that the Option shall become fully (100%) vested on
     .

(b) Prior to the Expiration Date, this Option may, subject to Section 5 below, be exercised in
whole or in part at any time, but only as to Option Shares that have vested. Without limiting
Section 5, if Optionee’s employment or service with the Company and all Subsidiaries and Affiliates
terminates, then from and after such Termination Date (as defined in Section 5 below), this Option
may be exercised only with respect to Option Shares that have vested as of the Termination Date and
only as expressly permitted pursuant to Section 5.

(c) This Option may not be exercised for a fraction of a share.

4. Method of Exercise of Option.

(a) The Option may be exercised by delivering to the Company an executed stock option exercise
agreement in the form attached hereto as Exhibit A, or in such other form as may be
approved by the Administrator from time to time (the “Exercise Agreement”), which shall set forth,
inter alia, (i) Optionee’s election to exercise the Option and (ii) the number of
vested Option Shares being purchased, and payment in full of the aggregate Exercise Price of such
Option Shares. If someone other than Optionee exercises the Option, then such person must submit
documentation reasonably acceptable to the Company verifying that such person has the legal right
to exercise the Option.

(b) The Option may not be exercised unless such exercise is in compliance with all applicable
federal and state securities law, as they are in effect on the date of exercise.

(c) Payment of the aggregate Exercise Price for Option Shares being purchased and any
applicable withholding taxes may be made (i) in cash or by check, (ii) to the extent permitted by
applicable law, by means of a cashless exercise procedure through a broker acceptable to the
Administrator, (iii) through delivery of unrestricted Shares already owned by Optionee for more
than six months on the date of surrender, to the extent the shares have an aggregate Fair Market
Value on the date of surrender equal to the aggregate Exercise Price of the Shares as to which such
Option shall be exercised, (iv) through tendering an exercise notice in a form and manner
acceptable to the Administrator, in which case the Optionee will receive a number of Shares with a
Fair Market Value equal to the excess of the Fair Market Value of the Shares underlying the Option
on the date of exercise over the aggregate Exercise Price, or (v) by any other means of exercise
authorized from time to time by the Administrator.

5. Effect of Termination of Employment or Service, Change in Control and Disabling
Conduct.

(a) Termination of Employment or Service Generally.

(i) Upon the termination of Optionee’s employment or service with the Company and all
Subsidiaries and Affiliates, the Option shall immediately terminate as to any Option Shares that
have not previously vested as of the date of such termination (the “Termination Date”).

(ii) Any portion of the Option that has vested as of the Termination Date shall be exercisable
in whole or in part for a period of [Insert post-termination exercise period, as determined by the
Administrator] following the Termination Date (the “Post-Termination Exercise Period”) unless
Optionee has been terminated for Cause or engaged in Disabling Conduct (defined below);
provided, in no event may the Option be exercised after the Expiration Date.

(iii) In the event of termination by reason of Optionee’s death or Disability, the
Post-Termination Exercise Period shall extend until the date that is twelve months from the
Termination Date; provided, in no event may the Option be exercised after the Expiration
Date.

(iv) Upon the expiration of the Post-Termination Exercise Period any unexercised portion of
the Option shall terminate in full (whether or not then exercisable).

(b) Termination for Cause; Disabling Conduct.

(i) The Option shall terminate in full (whether or not then exercisable) immediately upon the
termination of Optionee’s employment with the Company or any Subsidiary or Affiliate for Cause.

(ii) The Option also shall terminate in full (whether or not then exercisable) immediately if
Optionee engages in Disabling Conduct.

[AT THE DISCRETION OF THE ADMINISTRATOR, EITHER]

(c) Change in Control. For purposes of Section 5(a) above, any portion of the Option
that has not previously vested shall be deemed fully vested if Optionee’s employment or service
with the Company or any Subsidiary or Affiliate is terminated by the Company or any Subsidiary or
Affiliate or any successor entity for any reason (other than for Cause or as a result of Disabling
Conduct) within two years following a Change in Control or if Optionee terminates employment or
service with the Company or any Subsidiary or Affiliate within two years following the Change in
Control and after there is a material adverse change in the nature or status of Optionee’s duties
or responsibilities from those in effect immediately prior to the Change in Control.

[OR]

(c) Change in Control. Any portion of the Option that has not previously vested shall
become fully vested upon a Change in Control.

(d) Definition of Disabling Conduct. As used herein, “Disabling Conduct” shall mean
conduct involving a breach of the covenants made in Section 6 below.

6. Covenant Not to Compete.

(a) In consideration for the grant of the Option, and as a material condition to the grant,
Optionee hereby expressly agrees as follows:

(i) Optionee will act in the best interests of the Company and its Subsidiaries and Affiliates
(each, an “AMERIGROUP Company” and collectively, the “AMERIGROUP Companies”) throughout the period
of Optionee’s employment with any of the AMERIGROUP Companies; and

(ii) at all times while employed by any AMERIGROUP Company and at all times during the Covered
Post-Employment Period (defined below), Optionee will not (A) compete with any AMERIGROUP Company
by serving a Competitor (defined below) in any managerial capacity, or in any capacity that
influences business strategy, with respect to a Covered Product or Service (defined below) that the
Competitor is offering in a Covered Area (defined below) or developing to offer in a Covered Area,
or (B) solicit for employment, interfere with the employment relationship of or endeavor to entice
away any employee of any AMERIGROUP Company; provided, however, that in the event
the Company terminates the Optionee’s employment without Cause [or as described in Section 5(c), or
the Optionee voluntarily terminates his or her employment under the circumstances described in
Section 5(c)] [NOTE: BRACKETED LANGUAGE TO BE USED IF DOUBLE-TRIGGER SECTION 5(C) IS USED], the
non-competition covenants in Section 6(a)(ii)(A) shall terminate and be of no further force or
effect beginning at the close of business on the Optionee’s last day of employment with the
applicable AMERIGROUP Company; and

(iii) at all times while employed by any AMERIGROUP Company and at all times thereafter, the
Optionee will maintain in strict confidence, and will not reveal to any person or entity (except as
may be required in the ordinary course of performing the Optionee’s duties as an employee of the
AMERIGROUP Company), any Confidential Information.

(b) As used herein,

(i) The “Covered Post-Employment Period” means the twelve (12) month period beginning on the
first day on which Optionee is no longer employed by any AMERIGROUP Company as a result of
Optionee’s resignation or termination for Cause and ending on the first anniversary of such date.

(ii) “Competitor” means any entity or person that provides or is planning to provide a Covered
Product or Service in competition with a Covered Product or Service that an AMERIGROUP Company is
actively developing, marketing, providing or selling.

(iii) “Confidential Information” means an AMERIGROUP Company’s proprietary and/or non-public
information concerning its business and affairs, including, without limitation, trade secrets,
strategies, business plans, marketing and advertising plans, member and provider information,
employee and personnel information, contracts, training manuals, financial projections, budgets and
non-public financial data (including, without limitation, statements with premium revenue and/or
provider compensation terms, reports of actuaries, medical loss reports, balance sheets and income
statements).

(iv) A “Covered Product or Service” shall mean a managed health care product or service (A)
offered or provided to any beneficiary of, and/or participant in, any Medicare, Medicare-related,
Medicaid, Medicaid-related, or SSI program, any government-funded children’s health insurance
program or any federal and/or state sponsored health care program that is substantially similar to
any of such programs, (B) offered or provided to any beneficiary of and/or participant in any
government-funded or government sponsored health care program that directly competes or will
directly compete with any managed health care product or service offered or being developed to be
offered by any AMERIGROUP Company or (C) that directly competes or will directly compete with any
commercial managed health care product or service offered or being developed to be offered by any
AMERIGROUP Company.

(v) The “Covered Area” shall consist of each city, county and other similar governmental
territory in which an AMERIGROUP Company provides, or has made material efforts to develop and
provide, a Covered Product or Service to its members, if in the course of Optionee’s employment
with an AMERIGROUP Company he or she (A) has provided services to an AMERIGROUP Company with
respect to the Covered Products or Services in such city, county or governmental territory, or (B)
reviewed or discussed Confidential Information of an AMERIGROUP Company with respect to the Covered
Product or Service in such city, county or governmental territory.

(c) Optionee agrees that any breach by Optionee of the covenants made in Section 6(a) above
may cause irreparable damage to one or more of the AMERIGROUP Companies and that in the event of
such breach each AMERIGROUP Company shall have, in addition to any and all remedies of law, the
right to an injunction, specific performance or other equitable relief to prevent the violation of
Optionee’s obligations hereunder. Optionee agrees that any such AMERIGROUP Company may seek and
obtain injunctive relief without posting an injunction bond. Optionee hereby acknowledges and
agrees that Optionee will have access to confidential and proprietary information and trade secrets
concerning the AMERIGROUP Companies during Optionee’s employment and that the covenants in Section
6(a) are reasonable in scope and necessary to protect the legitimate business interests of the
AMERIGROUP Companies. Optionee hereby further expressly acknowledges and agrees that each
AMERIGROUP Company is an express third party beneficiary of the terms of this Agreement. (For the
avoidance of doubt, Optionee acknowledges and agrees that the experience and/or knowledge that
Optionee acquires in the course of his or her employment with an AMERIGROUP Company may relate not
only to the Covered Products and Services of the AMERIGROUP Company with which he or she is
employed, but also those of other AMERIGROUP Companies.)

7. Adjustments. In the event of any Change in Capitalization, the Administrator shall
take such actions pursuant to Section 5 of the Plan (including the provisions thereof relating to
the cancellation of Awards in exchange for a payment in cash or other property) as it deems
appropriate.

8. Certain Changes. In the event of a Change in Control, or an Optionee’s Disability,
retirement or death, the Administrator may accelerate the date on which the Option becomes
exercisable, or otherwise adjust any of the terms of the Option, provided that no action
under this Section 8 shall adversely affect Optionee’s rights hereunder without the consent of
Optionee.

9. Nontransferability of Option. Except under the laws of descent and distribution,
Optionee shall not be permitted to sell, transfer, pledge or assign the Option or this Option
Agreement; provided that subject to such terms and conditions as the Administrator may
establish, Optionee shall be permitted to transfer this Option to a trust controlled by Optionee
during Optionee’s lifetime for estate planning purposes or to make a gift of this Option to an
Immediate Family Member. Unless transferred pursuant to the preceding sentence, the Option shall
be exercisable, during Optionee’s lifetime, only by Optionee. Without limiting the generality of
the foregoing, except as otherwise provided herein, the Option may not be assigned, transferred,
pledged or hypothecated in any way, shall not be assignable by operation of law, and shall not be
subject to execution, attachment or similar process. Any attempted assignment, transfer, pledge,
hypothecation or other disposition of the Option contrary to the provisions hereof, and the levy of
any execution, attachment or similar process upon the Option shall be null and void and without
effect.

10. Notices. All notices and other communications under this Agreement shall be in
writing and shall be given by facsimile or first class mail, certified or registered with return
receipt requested, and shall be deemed to have been duly given three days after mailing or 24 hours
after transmission by facsimile to the respective parties at the address set forth under such
party’s signature page hereto. Either party hereto may change such party’s address for notices by
notice duly given pursuant hereto.

11. Tax Consequences. The tax laws and regulations applicable to the exercise of the
Option and the disposition of the Option Shares are complex and subject to change. Optionee should
consult a tax adviser before exercising the Option or disposing of the Shares.

12. Securities Laws Requirements. The Option shall not be exercisable to any extent,
and the Company shall not be obligated to transfer any Option Shares to Optionee upon exercise of
such Option, if such exercise, in the opinion of counsel for the Company, would violate the
Securities Act of 1933 (the “Securities Act”) or any other Federal or state statutes having similar
requirements as may be in effect at that time.

13. No Obligation to Register Option Shares. The Company shall be under no obligation
to register the Option Shares pursuant to the Securities Act or any other Federal or state
securities laws.

14. Investment Representation. Optionee hereby represents and warrants to the Company
that Optionee, by reason of Optionee’s business or financial experience (or the business or
financial experience of Optionee’s professional advisors who are unaffiliated with, and who are not
compensated by, the Company or any affiliate or selling agent of the Company, directly or
indirectly), has the capacity to protect Optionee’s own interests in connection with the
transactions contemplated under this Option Agreement.

15. Protections Against Violations of Agreement. No purported sale, assignment,
mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other)
or other disposition of, or creation of a security interest in or lien on, any of the Option Shares
by any holder thereof in violation of the provisions of this Agreement or the Certificate of
Incorporation or the Bylaws of the Company, will be valid, and the Company will not transfer any of
said Option Shares on its books nor will any of said Option Shares be entitled to vote, nor will
any dividends be paid thereon, unless and until there has been full compliance with said provisions
to the satisfaction of the Company. The foregoing restrictions are in addition to, and not in lieu
of, any other remedies, legal or equitable, available to enforce said provisions.

16. Withholding Requirements. The Company’s obligations under this Option Agreement
shall be subject to all applicable tax and other withholding requirements, and the Company shall,
to the extent permitted by law and the Plan, have the right to deduct any withholding amounts from
any payment or transfer of any kind otherwise due to Optionee.

17. Clawback. If (x) the Optionee breaches the terms of Section 6 or (y) the Company
has been required to prepare an accounting restatement due to material noncompliance, as a result
of fraud or misconduct, with any financial reporting requirement under the securities laws, and the
Administrator has determined in its sole discretion that the Optionee had knowledge of or should
have known of the material noncompliance or the circumstances that gave rise to such noncompliance
and failed to take reasonable steps to bring it to the attention of appropriate individuals within
the Company or personally and knowingly engaged in practices which materially contributed to the
circumstances that enabled a material noncompliance to occur, the Company may demand repayment of
any amounts realized by Optionee under this Option (determined before the application of any
taxes). The Optionee shall be required to provide repayment within ten (10) days following such
demand.

18. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any
time any provision of this Option Agreement shall in no way be construed to be a waiver of such
provision or of any other provision hereof.

19. Governing Law. With the exception of Section 6 above, this Option Agreement shall
be governed by and construed according to the laws of the State of Delaware without regard to its
principles of conflict of laws. The provisions of Section 6 above shall be governed by and
construed according to the laws of the Commonwealth of Virginia without regard to its principles of
conflict of laws.

20. Incorporation of Plan. The Plan is hereby incorporated by reference and made a
part hereof, and the Option and this Option Agreement shall be subject to all terms and conditions
of the Plan.

21. Amendments; Construction. The Administrator may amend the terms of this Option
Agreement prospectively or retroactively at any time, but no such amendment shall impair the rights
of Optionee hereunder without his or her consent. To the extent the terms of Section 6 above
conflict with any prior agreement between the parties related to such subject matter, the terms of
Section 6 shall supersede such conflicting terms and control. Headings to Sections of this Option
Agreement are intended for convenience of reference only, are not part of this Option Agreement and
shall have no affect on the interpretation hereof.

22. Rights as a Stockholder. Neither Optionee nor any of Optionee’s successors in
interest shall have any rights as a stockholder of the Company with respect to any shares of Common
Stock subject to the Option until the date of issuance of a stock certificate for such shares of
Common Stock.

23. Agreement Not a Contract for Services. Neither the Plan, the granting of the
Option, this Option Agreement nor any other action taken pursuant to the Plan shall constitute or
be evidence of any agreement or understanding, express or implied, that Optionee has a right to
continue to provide services as an officer, director, employee, consultant or advisor of the
Company or any Subsidiary or Affiliate for any period of time or at any specific rate of
compensation.

24. Authority of the Administrator. The Administrator shall have full authority to
interpret and construe the terms of the Plan and this Option Agreement. The determination of the
Administrator as to any such matter of interpretation or construction shall be final, binding and
conclusive.

25. Survival of Terms. This Option Agreement shall apply to and bind Optionee and the
Company and their respective permitted assignees and transferees, heirs, legatees, executors,
administrators and legal successors. The terms of Section 6 shall expressly survive the
termination of the Option and this Agreement.

26. Acceptance. Optionee hereby acknowledges receipt of a copy of the Plan and this
Option Agreement. Optionee has read and understands the terms and provisions thereof, and accepts
the Option subject to all the terms and conditions of the Plan and this Agreement.

27. Severability. Should any provision of this Option Agreement be held by a court of
competent jurisdiction to be unenforceable, or enforceable only if modified, such holding shall not
affect the validity of the remainder of this Option Agreement, the balance of which shall continue
to be binding upon the parties hereto with any such modification (if any) to become a part hereof
and treated as though contained in this original Option Agreement. Moreover, if one or more of the
provisions contained in this Option Agreement shall for any reason be held to be excessively broad
as to scope, activity, subject or otherwise so as to be unenforceable, in lieu of severing such
unenforceable provision, such provision or provisions shall be construed by the appropriate
judicial body by limiting or reducing it or them, so as to be enforceable to the maximum extent
compatible with the applicable law as it shall then appear, and such determination by such judicial
body shall not affect the enforceability of such provisions or provisions in any other
jurisdiction.

[SIGNATURE PAGE FOLLOWS]

1

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Option Agreement on
the day and year first above written.

AMERIGROUP CORPORATION

By:

Stanley F. Baldwin

Executive Vice President, General Counsel

and Secretary

Address: AMERIGROUP Corporation

4425 Corporation Lane

Virginia Beach, VA 23462

Facsimile:       

Attn: Stanley F. Baldwin

OPTIONEE:

      

Address:

Social Security Number:

EXHIBIT A

AMERIGROUP CORPORATION

2009 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

NOTICE OF EXERCISE

______________, ____

AMERIGROUP Corporation

4425 Corporation Lane

Virginia Beach, VA 23462

Attn:       

On       , I was granted an option (an “Option”) by AMERIGROUP Corporation (the “Company”)
under the Company’s 2009 Equity Incentive Plan (the “Plan”) and a stock option agreement, between
me and the Company (the “Agreement”). This letter is to notify you that I wish to purchase Option
Shares under the Agreement as set forth below.

Exercise of Option

1. I wish to purchase        Option Shares at the current exercise price of $    per share for
a total cost of $     .

2. I am paying for these Option Shares as follows:

	 	 	 	       By authorizing the Company to withhold from the
number of Option Shares I would otherwise receive that number of whole
Shares having a Fair Market Value equal to the aggregate Exercise
Price, with any fractional share amounts to be settled by cash and/or
certified or cashier’s check.

	 	 	 	       By enclosing cash and/or a certified or
cashier’s check payable to the Company in the amount of $     .

	 	 	 	       By means of a cashless exercise procedure
through the following broker:       .

	 	 	 	       By delivery of unrestricted shares of Company
stock already owned by me for more than six months on the date of
surrender, and which have an aggregate fair market value on the date of
surrender equal to the aggregate exercise price of the Option Shares as
to which the Option is being exercised, with any fractional share
amounts to be settled by cash and/or a certified or cashier’s check.

3. I am paying the local, state and federal withholding taxes and/or all other taxes that the
Company has advised me are due as follows:

	 	 	 	       By enclosing cash and/or a certified or
cashier’s check payable to the Company in the amount of $     .

	 	 	 	       By authorizing the Company to withhold from the
number of Option Shares I would otherwise receive that number of whole
Shares having a fair market value equal to the minimum tax withholding
due, with any fractional share amounts to be settled by cash and/or a
certified or cashier’s check.

	 	 	 	       By delivery of unrestricted shares of Company
stock already owned by me for more than six months on the date of
surrender, and which have an aggregate fair market value on the date of
surrender equal to the minimum tax withholding due, with any fractional
share amounts to be settled by cash and/or a certified or cashier’s
check.

4. In exercising my Option, I hereby warrant and represent to the Company that I have not
engaged in Disabling Conduct and acknowledge that the Company has no obligation to issue a
certificate evidencing any Option Shares purchasable by me until the purchase price of such Option
Shares is fully paid as set forth in the Option Agreement.

Very truly yours,

Optionee

Name and Address (please print)

	 	 	 
	Telephone Number

	 	(    )
	
 
	 	 
	Social Security Number

	 	

	
 
	 	 

2EX-10.4

EXHIBIT 10.4

AMERIGROUP CORPORATION

2009 EQUITY INCENTIVE PLAN

RESTRICTED STOCK AGREEMENT

This Restricted Stock Agreement is made and entered into as of       , 20       (the “Date of
Grant”), by and between AMERIGROUP Corporation, a Delaware corporation (the “Company”), and
     (the “Participant”). Capitalized terms not defined herein shall have the meaning
ascribed to them in the Company’s 2009 Equity Incentive Plan (the “Plan”).

1. Number of Shares. The Company hereby grants to the Participant        shares of
Restricted Stock, subject to all of the terms and conditions of this Restricted Stock Agreement and
the Plan. Such shares of Restricted Stock shall be evidenced by a book entry statement bearing the
restrictive legends described in Section 6 hereof. The book entry transfer evidencing the shares
of Restricted Stock shall be held in the custody of the Company until the restrictions thereon
shall have lapsed, and, as a condition to the grant of the Restricted Stock, the Participant shall
deliver to the Company a stock power, endorsed in blank, relating to the Restricted Stock in such
form as the Secretary of the Company may require. Reasonably promptly after the restrictions on
transferability of a share of Restricted Stock shall lapse, the Company shall cause to be delivered
to the Participant a certificate evidencing such share, free of the legends described in Section 6
hereof.

2. Lapse of Restrictions.

(a) Subject to Section 4 hereof, the restrictions on transfer set forth in Section 2(b) hereof
shall lapse as follows, subject to the continued employment of Participant by the Company or one of
its Affiliates:

[INSERT VESTING SCHEDULE AS DETERMINED BY THE ADMINISTRATOR]

Upon termination of the Participant’s employment with the Company (or any subsidiary of the
Company), any shares of Restricted Stock as to which the restrictions on transferability shall not
already have lapsed shall be immediately forfeited by the Participant and transferred to, and
reacquired by, the Company without consideration of any kind.

(b) Until the restrictions on transfer of the Restricted Stock lapse as provided in Section
2(a) hereof, or as otherwise provided in the Plan, no transfer of the Restricted Stock or any of
the Participant’s rights with respect to the Restricted Stock, whether voluntary or involuntary, by
operation of law or otherwise, shall be permitted. Unless the Administrator determines otherwise,
upon any attempt to transfer a share of Restricted Stock or any rights in respect of a share of
Restricted Stock before the lapse of such restrictions, such share, and all of the rights related
thereto, shall be immediately forfeited by the Participant and transferred to, and reacquired by,
the Company without consideration of any kind.

3. Adjustments. In the event of any Change in Capitalization, the Administrator shall
take such actions pursuant to Section 5 of the Plan (including the provisions thereof relating to
the cancellation of Awards in exchange for a payment in cash or other property) as it deems
appropriate.

4. Change in Control. [AT THE DISCRETION OF THE ADMINISTRATOR, EITHER]

Any shares of Restricted Stock that have not previously vested shall be deemed fully vested if the
Participant’s employment or service with the Company or any Subsidiary or Affiliate is terminated
by the Company or any Subsidiary or Affiliate or any successor entity for any reason (other than
for Cause or as a result of Disabling Conduct (defined below)) within two years following a Change
in Control or if the Participant terminates employment or service with the Company or any
Subsidiary or Affiliate within two years following the Change in Control and after there is a
material adverse change in the nature or status of the Participant’s duties or responsibilities
from those in effect immediately prior to the Change in Control. For purposes of the preceding
sentence, “Disabling Conduct” shall mean conduct involving a breach of the covenants made in
Section 5 hereof.

[OR]

Any shares of Restricted Stock that have not previously vested shall become fully vested upon a
Change in Control.

5. Covenant Not to Compete.

(a) In consideration for the grant of the Restricted Stock, and as a material condition to the
grant, the Participant hereby expressly agrees as follows:

(i) The Participant will act in the best interests of the Company and its Subsidiaries
and Affiliates (each, an “AMERIGROUP Company” and collectively, the “AMERIGROUP Companies”)
throughout the period of the Participant’s employment with any of the AMERIGROUP Companies;
and

(ii) At all times while employed by any AMERIGROUP Company and at all times during the
Covered Post-Employment Period (defined below), the Participant will not (A) compete with
any AMERIGROUP Company by serving a Competitor (defined below) in any managerial capacity,
or in any capacity that influences business strategy, with respect to a Covered Product or
Service (defined below) that the Competitor is offering in a Covered Area (defined below) or
developing to offer in a Covered Area, or (B) solicit for employment, interfere with the
employment relationship of or endeavor to entice away any employee of any AMERIGROUP
Company; provided, however, that in the event the Company terminates the
Participant’s employment without Cause [or as described in Section 4, or the Participant
voluntarily terminates his or her employment under the circumstances described in Section 4]
[NOTE: BRACKETED LANGUAGE TO BE USED IF DOUBLE-TRIGGER SECTION 4 IS USED], the
non-competition covenants in Section 5(a)(ii)(A) shall terminate and be of no further force
or effect beginning at the close of business on the Participant’s last day of employment
with the applicable AMERIGROUP Company;

(iii) at all times while employed by any AMERIGROUP Company and at all times
thereafter, the Participant will maintain in strict confidence, and will not reveal to any
person or entity (except as may be required in the ordinary course of performing the
Participant’s duties as an employee of the AMERIGROUP Company), any Confidential
Information.

(b) As used herein,

(i) The “Covered Post-Employment Period” means the twelve (12) month period beginning
on the first day on which the Participant is no longer employed by any AMERIGROUP Company as
a result of the Participant’s resignation or termination for Cause and ending on the first
anniversary of such date.

(ii) “Competitor” means any entity or person that provides, or is planning to provide,
a Covered Product or Service in competition with a Covered Product or Service that an
AMERIGROUP Company is actively developing, marketing, providing or selling.

(iii) “Confidential Information” means an AMERIGROUP Company’s proprietary and/or
non-public information concerning its business and affairs, including, without limitation,
trade secrets, strategies, business plans, marketing and advertising plans, member and
provider information, employee and personnel information, contracts, training manuals,
financial projections, budgets and non-public financial data (including, without limitation,
statements with premium revenue and/or provider compensation terms, reports of actuaries,
medical loss reports, balance sheets and income statements).

(iv) A “Covered Product or Service” shall mean a managed health care product or service
(A) offered or provided to any beneficiary of and/or participant in any Medicare,
Medicare-related, Medicaid, Medicaid-related, or SSI program, any government-funded
children’s health insurance program or any federal and/or state sponsored health care
program that is substantially similar to any of such programs, (B) offered or provided to
any beneficiary of and/or participant in any government-funded or government sponsored
health care program that directly competes or will directly compete with any managed health
care product or service offered or being developed to be offered by any AMERIGROUP Company
or (C) that directly competes or will directly compete with any commercial managed health
care product or service offered or being developed to be offered by any AMERIGROUP Company.

(v) The “Covered Area” shall consist of each city, county and other similar
governmental territory in which an AMERIGROUP Company provides or has made material efforts
to develop and provide a Covered Product or Service to its members, if in the course of the
Participant’s employment with an AMERIGROUP Company he or she (A) has provided services to
an AMERIGROUP Company with respect to the Covered Products or Services in such city, county
or governmental territory, or (B) reviewed or discussed Confidential Information of an
AMERIGROUP Company with respect to the Covered Product or Service in such city, county or
governmental territory.

(c) The Participant agrees that any breach by the Participant of the covenants made in Section
5(a) may cause irreparable damage to one or more of the AMERIGROUP Companies and that in the event
of such breach each AMERIGROUP Company shall have, in addition to any and all remedies of law, the
right to an injunction, specific performance or other equitable relief to prevent the violation of
the Participant’s obligations hereunder. The Participant agrees that any such AMERIGROUP Company
may seek and obtain injunctive relief without posting an injunction bond. The Participant hereby
acknowledges and agrees that the Participant will have access to confidential and proprietary
information and trade secrets concerning the AMERIGROUP Companies during the Participant’s
employment and that the covenants in Section 5(a) are reasonable in scope and necessary to protect
the legitimate business interests of the AMERIGROUP Companies. The Participant hereby further
expressly acknowledges and agrees that each AMERIGROUP Company is an express third-party
beneficiary of the terms of this Agreement. (For the avoidance of doubt, the Participant
acknowledges and agrees that the experience and/or knowledge that the Participant acquires in the
course of his or her employment with an AMERIGROUP Company may relate not only to the Covered
Products and Services of the AMERIGROUP Company with which he or she is employed, but also those of
other AMERIGROUP Companies.)

6. Legend on Certificates. The Participant agrees that any book entry statement
issued for shares of Restricted Stock prior to the lapse of any outstanding restrictions relating
thereto shall bear the following legend (in addition to any other legend or legends required under
applicable federal and state securities laws):

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON
TRANSFER AND RIGHTS OF REPURCHASE (THE “RESTRICTIONS”) AS SET FORTH IN THE AMERIGROUP
CORPORATION 2009 EQUITY INCENTIVE PLAN AND A RESTRICTED STOCK AGREEMENT ENTERED INTO
BETWEEN THE REGISTERED OWNER AND AMERIGROUP CORPORATION, COPIES OF WHICH ARE ON FILE WITH
THE SECRETARY OF THE COMPANY. ANY ATTEMPT TO DISPOSE OF THESE SHARES IN CONTRAVENTION OF
THE RESTRICTIONS, INCLUDING BY WAY OF SALE, ASSIGNMENT, TRANSFER, PLEDGE, HYPOTHECATION OR
OTHERWISE, SHALL BE NULL AND VOID AND WITHOUT EFFECT.

7. Certain Changes. In the event of a Change in Control, or a Participant’s
Disability, retirement or death, the Administrator may accelerate the date on which the
restrictions on transfer set forth in Section 2(b) hereof shall lapse or otherwise adjust any of
the terms of the Restricted Stock; provided that no action under this Section 7 shall
adversely affect the Participant’s rights hereunder.

8. Notices. All notices and other communications under this Restricted Stock
Agreement shall be in writing and shall be given by facsimile or first class mail, certified or
registered with return receipt requested, and shall be deemed to have been duly given three days
after mailing or 24 hours after transmission by facsimile to the respective parties at the address
set forth under such party’s signature page hereto. Either party hereto may change such party’s
address for notices by notice duly given pursuant hereto.

9. Securities Laws Requirements. The Company shall not be obligated to transfer any
Shares to the Participant free of the restrictive legend described in Section 6 hereof if such
transfer, in the opinion of counsel for the Company, would violate the Securities Act of 1933, as
amended (the “Securities Act”) (or any other federal or state statutes having similar requirements
as may be in effect at that time).

10. No Obligation to Register. The Company shall be under no obligation to register
the shares of Restricted Stock pursuant to the Securities Act or any other federal or state
securities laws.

11. Protections Against Violations of Agreement. No purported sale, assignment,
mortgage, hypothecation, transfer, pledge, encumbrance, gift, transfer in trust (voting or other)
or other disposition of, or creation of a security interest in or lien on, any of the shares of
Restricted Stock by any holder thereof in violation of the provisions of this Restricted Stock
Agreement or the Certificate of Incorporation or the Bylaws of the Company, will be valid, and the
Company will not transfer any of said shares of Restricted Stock on its books nor will any of said
shares of Restricted Stock be entitled to vote, nor will any dividends be paid thereon, unless and
until there has been full compliance with said provisions to the satisfaction of the Company. The
foregoing restrictions are in addition to, and not in lieu of, any other remedies, legal or
equitable, available to enforce said provisions.

12. Taxes. The Participant shall pay to the Company promptly upon request, and in any
event at the time the Participant recognizes taxable income in respect to the shares of Restricted
Stock (or, if the Participant makes an election under section 83(b) of the Code in connection with
such grant), an amount equal to the taxes the Company determines it is required to withhold under
applicable tax laws with respect to the shares of Restricted Stock. The Participant may satisfy
the foregoing requirement by making a payment to the Company in cash or, with the approval of the
Administrator, by delivering already owned unrestricted Shares or electing to have the Company
withhold unrestricted shares from delivery in each case, having a value equal to the minimum amount
of tax required to be withheld. Such Shares shall be valued at their Fair Market Value on the date
as of which the amount of tax to be withheld is determined. Fractional share amounts shall be
settled in cash. The Participant shall promptly notify the Company of any election made pursuant
to section 83(b) of the Code. A form of such election is attached hereto as Exhibit A.

THE PARTICIPANT ACKNOWLEDGES THAT IT IS THE PARTICIPANT’S SOLE RESPONSIBILITY AND NOT THE
COMPANY’S TO TIMELY FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE, EVEN IF THE
PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO MAKE THIS FILING ON THE
PARTICIPANT’S BEHALF.

The Participant acknowledges that the tax laws and regulations applicable to the Restricted Stock
and the disposition of the shares of Restricted Stock following vesting are complex and subject to
change.

13. Failure to Enforce Not a Waiver. The failure of the Company to enforce at any
time any provision of this Restricted Stock Agreement shall in no way be construed to be a waiver
of such provision or of any other provision hereof.

14. Investment Representation. The Participant hereby represents and warrants to the
Company that the Participant, by reason of the Participant’s business or financial experience (or
the business or financial experience of the Participant’s professional advisors who are
unaffiliated with, and who are not compensated by, the Company or any affiliate or selling agent of
the Company, directly or indirectly), has the capacity to protect the Participant’s own interests
in connection with the transactions contemplated under this Restricted Stock Agreement.

15. Clawback. If (x) the Participant breaches the terms of Section 5 or (y) the
Company has been required to prepare an accounting restatement due to material noncompliance, as a
result of fraud or misconduct, with any financial reporting requirement under the securities laws,
and the Administrator has determined in its sole discretion that the Participant had knowledge of
or should have known of the material noncompliance or the circumstances that gave rise to such
noncompliance and failed to take reasonable steps to bring it to the attention of appropriate
individuals within the Company or personally and knowingly engaged in practices which materially
contributed to the circumstances that enabled a material noncompliance to occur, the Company may
demand repayment of any amounts realized by Participant under this Award (determined before the
application of any taxes). The Participant shall be required to provide repayment within ten (10)
days following such demand.

16. Governing Law. With the exception of Section 5 above, this Restricted Stock
Agreement shall be governed by and construed according to the laws of the State of Delaware without
regard to its principles of conflict of laws. The provisions of Section 5 above shall be governed
by and construed according to the laws of the Commonwealth of Virginia without regard to its
principles of conflict of laws.

17. Incorporation of Plan. The Plan is hereby incorporated by reference and made a
part hereof, and the shares of Restricted Stock and this Restricted Stock Agreement shall be
subject to all terms and conditions of the Plan.

18. Amendments; Construction. The Administrator may amend the terms of this
Restricted Stock Agreement prospectively or retroactively at any time, but no such amendment shall
impair the rights of the Participant hereunder without his or her consent. To the extent the terms
of Section 5 above conflict with any prior agreement between the parties related to such subject
matter, the terms of Section 5 shall supersede such conflicting terms and control. Headings to
Sections of this Restricted Stock Agreement are intended for convenience of reference only, are not
part of this Restricted Stock Agreement and shall have no affect on the interpretation hereof.

19. Survival of Terms. This Restricted Stock Agreement shall apply to and bind the
Participant and the Company and their respective permitted assignees and transferees, heirs,
legatees, executors, administrators and legal successors. The terms of Section 5 shall expressly
survive the forfeiture of the Restricted Stock and this Agreement.

20. Rights as a Stockholder. Subject to the restrictions set forth in the Plan and
this Restricted Stock Agreement, the Participant shall possess all incidents of ownership with
respect to the shares of Restricted Stock, including the right to receive or reinvest dividends
with respect to such shares of Restricted Stock and to vote such shares of Restricted Stock.

21. Agreement Not a Contract for Services. Neither the Plan, the granting of the
shares of Restricted Stock, this Restricted Stock Agreement nor any other action taken pursuant to
the Plan shall constitute or be evidence of any agreement or understanding, express or implied,
that the Participant has a right to continue to provide services as an officer, director, employee,
consultant or advisor of the Company or any Subsidiary or Affiliate for any period of time or at
any specific rate of compensation.

22. Authority of the Administrator. The Administrator shall have full authority to
interpret and construe the terms of the Plan and this Restricted Stock Agreement. The
determination of the Administrator as to any such matter of interpretation or construction shall be
final, binding and conclusive.

23. Representations. The Participant has reviewed with his own tax advisors the
Federal, state, local and foreign tax consequences of the transactions contemplated by this
Restricted Stock Agreement. The Participant is relying solely on such advisors and not on any
statements or representations of the Company or any of its agents. The Participant understands
that he (and not the Company) shall be responsible for any tax liability that may arise as a result
of the transactions contemplated by this Restricted Stock Agreement.

24. Severability. Should any provision of this Restricted Stock Agreement be held by
a court of competent jurisdiction to be unenforceable, or enforceable only if modified, such
holding shall not affect the validity of the remainder of this Restricted Stock Agreement, the
balance of which shall continue to be binding upon the parties hereto with any such modification
(if any) to become a part hereof and treated as though contained in this original Restricted Stock
Agreement. Moreover, if one or more of the provisions contained in this Restricted Stock Agreement
shall for any reason be held to be excessively broad as to scope, activity, subject or otherwise so
as to be unenforceable, in lieu of severing such unenforceable provision, such provision or
provisions shall be construed by the appropriate judicial body by limiting or reducing it or them,
so as to be enforceable to the maximum extent compatible with the applicable law as it shall then
appear, and such determination by such judicial body shall not affect the enforceability of such
provisions or provisions in any other jurisdiction.

25. Acceptance. The Participant hereby acknowledges receipt of a copy of the Plan and
this Restricted Stock Agreement. The Participant has read and understands the terms and provisions
thereof, and accepts the shares of Restricted Stock subject to all the terms and conditions of the
Plan and this Restricted Stock Agreement. The Participant hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon any questions
arising under this Restricted Stock Agreement.

[SIGNATURE PAGE FOLLOWS]

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IN WITNESS WHEREOF, the parties hereto have executed and delivered this Restricted Stock
Agreement on the day and year first above written.

AMERIGROUP CORPORATION

By:

Stanley F. Baldwin

Executive Vice President, General Counsel

and Secretary

Address: AMERIGROUP Corporation

4425 Corporation Lane

Virginia Beach, VA 23462

Facsimile:       

Attn: Stanley F. Baldwin

PARTICIPANT:

      

Address:

Social Security Number:

EXHIBIT A

ELECTION UNDER SECTION 83(b)

OF THE INTERNAL REVENUE CODE OF 1986

The undersigned taxpayer hereby elects, pursuant to section 83(b) of the Internal Revenue Code of
1986, as amended, to include in taxpayer’s gross income for the current taxable year the amount of
any compensation taxable to taxpayer in connection with taxpayer’s receipt of the property
described below:

1. The name, address, taxpayer identification number and taxable year of the undersigned are
as follows:

NAME OF TAXPAYER:

NAME OF SPOUSE:

ADDRESS:

IDENTIFICATION NUMBER OF TAXPAYER:

IDENTIFICATION NUMBER OF SPOUSE:

TAXABLE YEAR:

2. The property with respect to which the election is made is described as follows:      
shares (the “Shares”) of AMERIGROUP Corporation (“Company”).

3. The date on which the property was transferred is:       , 20      .

4. The property is subject to the following restrictions:

The Shares may not be transferred and are subject to forfeiture under the terms of an
agreement between the taxpayer and the Company. These restrictions lapse upon the
satisfaction of certain conditions in such agreement.

5. The fair market value at the time of transfer, determined without regard to any restriction
other than a restriction which by its terms will never lapse, of such property is:
$       .

6. The amount (if any) paid for such property is: $       .

The undersigned has submitted a copy of this statement to the person for whom the services were
performed in connection with the undersigned’s receipt of the above-described property. The
transferee of such property is the person performing the services in connection with the transfer
of said property.

The undersigned understands that the foregoing election may not be revoked except with the
consent of the Commissioner.

Dated:       , 20      

Taxpayer

The undersigned spouse of taxpayer joins in this election.

Dated:       , 20      

Spouse of Taxpayer

2

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