Document:

METROPOLITAN
HEALTH NETWORKS, INC.

     

    Non-Qualified Stock Option
Agreement

     

    This
Non-Qualified Stock Option Agreement
certifies that, pursuant to the Metropolitan Health Networks, Inc. (the
“Company”) Omnibus Equity
Compensation Plan (the “Plan”), the Compensation Committee has granted an
option to purchase shares of common stock, par value $.001 per share (the
“Common Stock”) of Metropolitan Health Networks, Inc. as stated
below.  Capitalized terms used herein and not defined shall have the
meaning ascribed to such terms in the Plan.

     

    
    

     

    
      	 	Optionee:  	 	__________________________________________
	 	 	 	 
	 	Address: 	 	__________________________________________
	 	 	 	__________________________________________
	 	 	 	 
	 	Number of
      Shares  	 	_______ shares of
      the Common Stock (the Subject to the Option“Option Shares”)
	 	 	 	 
	 	Option Exercise
      Price: 	 	US$_______ per share
      of Common Stock (the “PerShare Exercise Price”), which is equal to the
      marketprice of the Common Stock at [the end of businesson the day
      preceding the Grant Date][the end of business on __________]
	 	 	 	 
	 	 Grant
      Date:   	 	___________
      ________, 200___ (the “Grant Date”)

    

     

    
      
        	 	METROPOLITAN HEALTHNETWORKS,
      INC.
	 	 
	 Dated:  As
      of _________ ____, 200__  	
                By:___________________________________

                    Michael
      M. Earley

                    Chairman and
      Chief Executive Officer

              
	 	 

      

    

                                                                                

    The
undersigned hereby accepts the foregoing option and agrees to the terms and
conditions thereof as described in Exhibit A attached
hereto and made a part hereof.  The undersigned hereby acknowledges
receipt of a copy of the Metropolitan Health Networks, Inc. Omnibus Equity Compensation Plan,
a copy of which is attached hereto as Exhibit B, and agrees
to be bound by the terms of such Plan.

    
       

      
        
          	 	OPTIONEE
	 	 
	 Dated:  As
      of _________ ____, 200__  	
                  ___________________________________

                  Name:

                
	 	 

        

      

                            

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    EXHIBIT
A

    

    Terms and conditions of the
Non-Qualified Stock Option Agreement for Employees

    

    1. Grant of
Option.  Metropolitan Health Networks, Inc., a Florida
corporation (the “Company”), hereby grants to the Optionee, as of the Grant Date
an option (the “Option”), pursuant to the Plan, to purchase the Option Shares at
the Per Share Exercise Price, purchasable as set forth in and subject to the
terms and conditions of this Option and the Plan.  Except where the
context otherwise requires, the term “Company” shall include all future
subsidiaries of the Company as defined in Sections 424(e) and 424(f) of the
Internal Revenue Code of 1986, as amended or replaced from time to time (the
“Code”).

     

    2. Non-Qualified Stock
Option.  The Option shall constitute and be treated at all
times by the Optionee and the Company as a "non-qualified stock option" for U.S.
Federal income tax purposes and shall not constitute and shall not be treated as
an "incentive stock option" as defined under Section 422(b) of the
Code.

     

    3. Exercise of Option and
Provisions for Termination;Vesting
Schedule.  The Option shall [fully vest on the Grant Date][vest
as follows:____% of the Option Shares will vest and become exercisable on the
___ anniversary of the Grant Date, ____% of the Option Shares will vest and
become exercisable on the ___ anniversary of the Grant Date, :____% of the
Option Shares will vest and become exercisable on the ___ anniversary of the
Grant Date, :____% of the Option Shares will vest and become exercisable on the
___ anniversary of the Grant Date].  Except as otherwise provided in
this Agreement, this Option may be exercised at any time during the period (the
“Exercise Period”) [commencing on the Grant Date and terminating on the ten year
(10th)
anniversary of the Grant Date (the “Expiration Date”).]  This Option
may not be exercised at any time on or after the Expiration Date.

     

    (a) Exercise
Procedure.  Subject to the conditions set forth in this
Agreement and the Plan, this Option shall be exercised by the Optionee’s
delivery of written notice of exercise to the General Counsel of the Company,
specifying the number of Option Shares to be purchased and the purchase price to
be paid therefor (the “Purchase Price”).  Such notice must be signed
and dated and be accompanied by payment in full of the Purchase Price in
accordance with Section 4 of this Agreement.  Such exercise shall be
effective upon receipt by the General Counsel of the Company of such written
notice together with the Purchase Price.  The Optionee may purchase
less than the number of Shares covered hereby, provided that no partial exercise
of this Option may be for any fractional Share.

     

    4. Payment of Purchase
Price.  Payment of the Purchase Price for the Shares purchased
upon the exercise of this Option shall be made by delivery to the Company of one
or some combination of the following items of consideration with a value on the
date of exercise equal to the Purchase Price of the subject Shares:

     

    (a) cash;

     

    (b) a
certified check or bank check;

     

    
      
        
        

      

      
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    (c) a cash
equivalent instrument that is reasonably acceptable to the Company;
or

     

    (d) shares of
Common Stock (provided that the such shares of Common Stock have been held by
the Optionee (or any other person or persons exercising the Option) for at least
six months).

     

    5. Delivery of Option
Shares:  Compliance with Securities Law, Etc.

     

    (a) General.  The
Company shall, upon payment of the option price for the number of Option Shares
purchased and paid for, make prompt delivery of such Option Shares to the
Optionee, provided
that if any law or regulation require the Company to take any action with
respect to such Option Shares before the issuance thereof, then the date of
delivery of such Option Shares shall be extended for the period necessary to
complete such action.

     

    (b) Listing Qualifications,
Securities Law Compliance, Etc.  Notwithstanding anything to
the contrary in this Agreement, no shares of Common Stock purchased upon
exercise of the Option, and no certificate representing such shares, shall be
issued or delivered if (a) such shares have not been admitted to listing upon
official notice of issuance on each stock exchange, if any, upon which shares of
that class are then listed, or (b) in the opinion of counsel to the
Company, such issuance or delivery would (i) cause the Company to be in
violation of or to incur liability under any federal, state or other securities
law, or any other requirement of law or any requirement of any stock exchange
regulations or listing agreement to which the Company is a party, or of any
administrative or regulatory body having jurisdiction over the Company or
(ii) require registration (apart from any registrations as have been
theretofore completed by the Company covering such shares) under any federal,
state, or other securities or similar law.

     

    6. No Special Employment or
Similar Rights.  Nothing
contained in the Plan or this Option shall be construed or deemed by a person
under any circumstances to bind the Company to continue the employment or other
relationship of the Optionee with the Company for the period within which this
Option may be exercised or otherwise.

     

    7. Rights as a
Shareholder.  The Optionee shall have no rights as a
shareholder with respect to any Option Shares which may be purchased by exercise
of this Option (including, without limitation, any rights to receive dividends
or non-cash distributions with respect to such Option Shares) unless and until a
certificate representing such Option Shares is duly issued and delivered to the
Optionee.  No adjustment shall be made for dividends or other rights
for which the record date is prior to the date such certificate is
issued.

     

    8. Adjustment
Provisions.

     

    (a) General.  If,
through or as a result of any consolidation of shares of Common Stock, merger or
consolidation of the Company or its Subsidiaries or sale or other disposition by
the Company or its Subsidiaries of all or a portion of its assets, any other
change in the Company's or its Subsidiaries' corporate structure, or any
distribution to shareholders other than a cash dividend results in the
outstanding shares of Common Stock, or any securities exchanged therefor or
received in their place, being exchanged for a different number or class of
shares of Common Stock or other securities of the Company, or for shares of
Common Stock or other securities of any other Company; or new, different or
additional shares or other securities of the Company or of any other Company
being received by the holders of outstanding shares of Common Stock, the
Optionee shall, with respect to this Option or any unexercised portion hereof,
be entitled to the rights and benefits, and be subject to the limitations, set
forth in the Plan.

     

    
      
        
        

      

      
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    (b) Board Authority to Make
Adjustments.  Any adjustments under this Section 8 will be made
by the Board of Directors and/or the Compensation Committee, whose determination
as to what adjustments, if any, will be made and the extent thereof will be
final, binding and conclusive.  No fractional Shares will be issued
pursuant to this Option on account of any such adjustments.

     

    9. Change of
Control.  In the event of an Acceleration Event (as such term
is defined in the Plan) or upon the occurrence of a Change of Control (as such
term is defined in the Plan) prior to the Expiration Date or termination of this
Option, the Option granted hereunder, to the extent not previously exercisable
and vested, shall become immediately exercisable and fully vested.

     

    10. Withholding
Taxes.  The Company’s obligation to deliver Option Shares upon
the exercise of this Option shall be subject to the Optionee’s satisfaction of
all applicable, federal, state and local income and employment tax withholding
requirements.

     

    11. Financial Restatements Due
to Intentional Misconduct or Gross Negligence.

     

    (a)           In
the event that the disinterested and independent (as determined in accordance
with the NYSE AMEX listing standards) members of the Board of Directors
determine (the “Board Determination”) that the Optionee’s intentional misconduct
or gross negligence directly or indirectly caused or contributed to a
restatement of the Company’s consolidated financial statements due to the
material non-compliance of the Company with any financial reporting requirement
under the U.S. federal securities laws, whether such restatement is required by
law or the Board of Directors determines, in its discretion, such restatement is
necessary or desirable to serve the best interests of the Company, then any
vested and unvested Options then held by the Optionee that were granted during
the three month period prior to or the nine month period following the first
public issuance or filing with the Securities Exchange Commission (whichever
occurs first) of the incorrect financial statements shall be immediately
cancelled and rendered null and void without any payment therefor. In addition,
for any Options that were exercised during the nine month period following the
first public issuance or filing with the Securities Exchange Commission
(whichever occurs first) of the incorrect financial statements (the “Covered
Options”), the Optionee shall be required to repay or otherwise reimburse the
Company, upon demand, an amount in cash or shares of Common Stock having a value
equal to the amount described in clause (i), (ii) or (iii) below, depending on
whether the Optionee still holds the Option Shares acquired upon exercise of the
Covered Options:

     

    (i)           to
the extent that such Option Shares have been sold, the difference between the
aggregate proceeds received from such sale of such Option Shares over the
aggregate Option Exercise Price for such Option Shares,

     

    
      
        
        

      

      
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    (ii)           to
the extent that such Option Shares have been transferred otherwise than for
value (ex. a transfer by gift, a transfer upon death), the difference between:
(x) the greatest of (a) the Fair Market Value (as defined in the Plan) of such
Option Shares on the date the Covered Options were exercised, (b) the Fair
Market Value of such Option Shares on the date the Option Shares underlying the
Covered Options were transferred and (c) the Fair Market Value of such Option
Shares on the date of the Board Determination and (y) the aggregate Option
Exercise Price with respect to such Option Shares; and/or

     

    (iii)           to
the extent that such Option Shares have not been sold or otherwise transferred
at the time the Company demand is made, the difference between: (x) the greater
of (a) the Fair Market Value of such Option Shares on the date the Covered
Options were exercised and (b) the Fair Market Value of such Option Shares on
the date of the Board Determination and (y) the aggregate Option Exercise Price
with respect to such Option Shares.

     

    (b)           This
section does not constitute the Company’s exclusive remedy for the Optionee’s
commission of intentional misconduct or gross negligence.  The Company
may seek any additional legal or equitable remedy, including injunctive relief,
for any such violations. The provisions in this section are essential economic
conditions to the Company’s grant of Options to the Optionee. By receiving the
grant of Options hereunder, the Optionee agrees that the Company may deduct from
any amounts it owes the Optionee from time to time (such as wages or other
compensation, deferred compensation credits, vacation pay, any severance or
other payments owed following a Termination of Employment, as well as any other
amounts owed to the Optionee by the Company) to the extent of any amounts the
Optionee owes the Company under this section. The provisions of this section and
any amounts repayable by the Optionee hereunder are intended to be in addition
to any rights to repayment the Company may have under Section 304 of the
Sarbanes-Oxley Act of 2002 and other applicable law.

     

    12. Representations.  The
Optionee represents, warrants and covenants that:

     

    (a) Any
Option Shares purchased upon the exercise of this Option shall be acquired for
the Optionee’s account for investment only, and not with a view to, or for sale
in connection with, any distribution of the Option Shares in violation of the
Securities Act, or any rule or regulation under the Securities Act.

     

    (b) The
Optionee has had such opportunity as he or she has deemed adequate to obtain
from representatives of the Company such information as is necessary to permit
the Optionee to evaluate the merits and risks of his or her investment in the
Company.

     

    (c) The
Optionee is able to bear the economic risk of holding such Option Shares
acquired pursuant to the exercise of this Option for an indefinite
period.

     

    
      (d) The
Optionee understands the tax consequences of the granting of the Option, the
acquisition of rights to exercise the Option with respect to any Option Shares,
the exercise, release or other disposal of the Option and purchase of Option
Shares hereunder, and the subsequent sale or other disposition of any Option
Shares acquired hereunder.  In addition, the Optionee understands that
the Company may be required to pay, or account for taxes in respect of any
compensation income, or other income or gain realized by the Optionee upon
exercise of the Option granted hereunder.  To the extent that the
Company is required to pay, account for or withhold any such taxes, then, unless
both the Optionee and the Compensation Committee have otherwise agreed upon
alternate arrangements, the Optionee hereby agrees that the Company may deduct
from any payments of any kind otherwise due to the Optionee an amount equal to
the total taxes required to be so paid, accounted for or withheld (as permitted
by law), or if such payments are inadequate to satisfy such taxes, or if no such
payments are due or to become due to the Optionee, then the Optionee agrees to
provide the Company with cash funds or make other arrangements satisfactory to
the Company regarding such payment.  It is understood that all matters
with respect to the total amount of taxes to be withheld in respect of any such
compensation income shall be determined by the Company in its sole
discretion.

       

    

    
      
        
        

      

      
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    By making
payment upon exercise of this option, the Optionee shall be deemed to have
reaffirmed, as of the date of such payment, the representations made in this
Section 12.

     

    13. Restrictions on Transfer of
Option Shares.

     

    (a) The
Optionee hereby acknowledges and agrees that the Option shall not be
transferable by the Optionee other than by will or by the laws of descent and
distribution, and shall be exercisable during the lifetime of the Optionee only
by him or by his guardian or legal representative.

     

    (b) The
Optionee hereby acknowledges that in connection with any public offering of the
Company’s Common Stock, the underwriters for the Company may require that the
Company's officers, directors, and/or certain other shareholders not sell their
Shares for a certain period of time before or after the effectiveness of any
registration statement of the Company filed in connection with such
offering.  The Optionee hereby agrees that upon the Company's request
in connection with any such public offering, that the Optionee will not,
directly or indirectly, offer, sell, contract to sell, make subject to any
purchase option, or otherwise dispose of any Option Shares for a period
requested by the underwriter or its representative, not to exceed ten (10) days
before and 90 days after the date of the effectiveness of any such registration
statement, without the prior written consent of the underwriter or its
representative.

     

    14. Legends.  All
stock certificates representing Option Shares issued to the Optionee upon
exercise of this Option shall have affixed thereto legends substantially in the
following form, in addition to any other legends required by applicable state
law:

     

    “The
shares of stock represented by this certificate are subject to certain
restrictions on transfer contained in an Option Agreement, a copy of which will
be furnished upon request by the issuer.” 

     

    
      15. Termination of
Employment.  The Option shall lapse and cease to be exercisable
within three months following a Termination of Employment for any reason (the
“Termination Exercise Period”).  Upon a Termination of Employment of
the Optionee by the Company for any reason other than for cause, the Option
granted hereunder, to the extent not previously exercisable and vested, shall
become immediately exercisable and fully vested in accordance with its
terms.  Notwithstanding the foregoing, the Termination Exercise Period
shall be extended to one year and the Option granted hereunder, to the extent
not previously exercisable and vested, shall become immediately exercisable and
fully vested in accordance with its terms, in the event employment shall have
terminated:

    

    
      
        
        

      

      
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      (i)    as a
result of Retirement or Disability; and

       

      (ii)           as
a result of death, or if death shall have occurred during the Termination
Exercise Period.

       

    

    
      The
Compensation Committee reserves the right to cancel or suspend the Option
granted hereunder if the Optionee is terminated for cause or the Compensation
Committee determines that the Optionee is competing or has competed with the
Company as set forth in Sections 3.15 and 14.2 of the Plan.

       

      16. Effectiveness of the Grant
of the Option.  The grant of the Option by the Company to the
Optionee shall not become effective until the Optionee executes the cover page
of this Agreement and returns this Agreement with the executed cover page to the
Company.  In the event the Optionee fails to execute and return this
Agreement to the Company within one month after the Grant Date, this Agreement
shall immediately terminate in all respects and this Agreement shall immediately
cease to be an operative contract.

       

      17. Plan
Documents.  This Agreement is qualified in its entirety by
reference to the provisions of the Plan, as amended from time to time, which are
hereby incorporated herein by reference.  The interpretation and
construction by the Compensation Committee of the Plan, this Agreement, the
Option granted hereunder, and such rules and regulations as may be adopted by
the Compensation Committee for the purpose of administering the Plan, shall be
final, binding and conclusive.  Until the Option shall expire,
terminate, or be exercised in full, the Company shall, upon written request
therefor, send a copy of the Plan, in its then-current form, to the Optionee or
any other person or entity then entitled to exercise the Options.

       

    

    18. Miscellaneous.

     

    (a) This
Agreement may (except as provided in the Plan) only be amended, altered or
modified by a written instrument signed by the parties hereto, or their
respective successors, and it may not be terminated (except as provided herein
or in the Plan).

     

    (b) All
notices under this Option shall be mailed or delivered by hand to (i) the
Company at the address set forth below, (ii) the Optionee at the address set
forth on the first page of this option, or (iii) at such other address as may be
designated in writing by either of the parties to one another.

     

    If to the
Company:               Metropolitan
Health Networks, Inc.

    250 South Australian Avenue, Suite
400

    West Palm Beach, FL
33401.

    

    If to the
Optionee:                See
address of Optionee on the cover page of this Agreement.

    

    
      
        
        

      

      
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    19. Applicable
Law.  This Option shall be governed by and construed in
accordance with the laws of the State of Florida, but without regard to the
principle of conflict of laws thereof.  If any one or more provisions
of this Agreement shall be found to be illegal or unenforceable in any respect,
the validity and enforceability of the remaining provisions hereof shall not in
any way be affected or impaired thereby.  The parties hereto hereby
submit themselves to the exclusive jurisdiction of the state or Federal courts
located in Palm Beach County, Florida and (a) agree and acknowledge that any
claim, action or pro­ceeding regarding the Company or this Agreement shall
be brought in such courts, and (b) hereby waive any objections to such venue,
including, without limitation, any objections based on such venue being an
inconvenient forum.

     

    20. Entire
Agreement.  This Agreement constitutes the entire agreement
between the Company and the Optionee and supersedes any prior agreements and
understandings, oral or written, between the Company and the Optionee concerning
the subject matter of this Agreement.

     

    21. Construction.  The
section headings contained in this Agreement are for reference only and shall
have no effect on the interpretation of any of the provisions of this
Agreement.

     

    22. Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company and upon the legal
representatives, executors, administrators, heirs, legatees and any permitted
assignee of the Optionee.

     

    

    
      
        
        

      

      
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    EXHIBIT
B

    

    COMPANY’S
OMNIBUS EQUITY COMPENSATION PLAN

    

    
      	 
      

    

    [See
Attached]

     

     

    
      
        
        

      

      
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No.: ______

    METROPOLITAN
HEALTH NETWORKS, INC.

     

    Restricted Stock Award
Agreement for Independent Directors

     

    _________
Shares of Restricted Stock

     

    THIS AGREEMENT (this
“Agreement”) dated as of the ______ day of __________, 2007, between METROPOLITAN HEALTH NETWORKS,
INC., a Florida corporation (the “Company”) and
_________________________________ (“Participant”) is made pursuant and subject
to the provisions of the Company’s Omnibus Equity Compensation Plan (the
“Plan”), a copy of which has been made available to Participant.  All
terms used herein that are defined in the Plan have the same meaning given them
in the Plan.

     

    1. Award of
Stock.  Pursuant to the Plan, the Company, on [___________]
(the “Date of Grant”) granted to Participant, subject to the terms and
conditions of the Plan and subject further to the terms and conditions herein
set forth, an Award of ______ shares of Restricted Stock.

     

    2. Restrictions.  The shares of
Restricted Stock are nontransferable and are subject to forfeiture until
vested.

     

    3. Vesting.  Subject
to paragraph 4 through 6 below, Participant’s interest in the shares of
Restricted Stock shall become transferable and nonforfeitable (“Vested”) on the
one (1) year anniversary of the Date of Grant.

     

    4. Death or
Disability.  In the event of
Participant’s death or Disability (as defined in the Plan) while serving as a
member of the Board of Directors (a “Director”) of the Company and prior to the
forfeiture of the shares of Restricted Stock under paragraph 6, all shares of
Restricted Stock that are not then Vested shall become Vested as of the date of
Participant’s termination of service as a Director of the Company on account of
death or Disability.

     

    5. Change in
Control.  Notwithstanding any other provision of this
Agreement, all shares of Restricted Stock not previously forfeited shall become
Vested upon a Change in Control (as such term is defined in Section 13.2 of the
Plan).

     

    6. Forfeiture.  Upon
the Participant’s termination of service as a Director of the Company (and all
affiliates) for any reason (other than on account of the Participant’s death or
becoming Permanently and Totally Disabled or in connection with a Change in
Control), all non-Vested shares of Restricted Stock granted under this Agreement
shall be forfeited as of the date of termination and the escrow shall be
terminated.

     

    7. Escrow
for Restricted Shares.

     

    (a) Until the
Restricted Stock is Vested, the underlying shares shall be held by the Company
in escrow.  Upon becoming vested, a share certificate for the newly
vested shares shall be delivered to the Participant as soon as administratively
feasible after the date of vesting.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Subject
to the requirements of Paragraph 8, the Participant shall have all the rights of
a shareholder with respect to the shares held in escrow, including the right to
vote the shares and to receive all dividends and other distributions paid with
respect to the shares.

     

    (c) Any
shares held in escrow under this Agreement shall be held, and a certificate
shall be issued, in the name of the Participant.  The Participant does
hereby irrevocably constitute and appoint the Company’s Chief Financial Officer
and Controller as Participant’s attorney to transfer any forfeited shares on the
books of the Company with full power of substitution in the
premises.  The Chief Financial Officer and/or the Controller shall use
the authority granted in this paragraph 7 to cancel any shares of Restricted
Stock that are forfeited.

     

    8. Share
Distributions and Dividends.  If a dividend or
other distribution declared with respect to Company shares is payable in shares,
any shares distributed with respect to the shares of Restricted Stock held in
escrow hereunder also shall be held in escrow subject to the same terms and
restrictions applicable to the escrowed shares to which such distribution
relates.  If the Shares held in escrow shall be changed into or
exchangeable for a different number or kind of stock or other securities of the
Company or other corporation (whether through reorganization, reclassification,
recapitalization, stock split-up, merger or otherwise), such substituted stock
or other securities shall be held in escrow subject to the same terms and
restrictions as were applicable to the replaced shares of Restricted
Stock.

     

    9. Confidentiality
and Non-Competition.  Notwithstanding
any other provision of this Agreement, any Restricted Stock granted pursuant to
this Agreement or the proceeds from the sale of any shares of Vested Restricted
Stock shall be forfeited by you if you engage in any conduct that violates any
non-competition, confidentiality or non-solicitation obligation owed by you to
the Company (or any of its affiliates or subsidiaries) whether pursuant to an
agreement, policy, common law, statute or otherwise.  You acknowledge
that this grant constitutes good, valuable and sufficient consideration for your
performance of those provisions.

     

    10. Fractional
Shares.  A fractional share shall not be issued hereunder, and
when any provision hereof may cause a fractional share to be issued, any such
fractional share shall be disregarded.

     

    11. No Right
to Continued Participation as Director of the Company.  Neither
the Plan nor this Agreement shall confer upon you any right to continue serving
as a Director of (or any other relationship with) the Company or any subsidiary,
affiliate, or parent thereof, or limit in any respect the right of the Company
or any subsidiary, affiliate, or parent thereof to terminate your services as a
Director of, or other relationship with, the Company or any subsidiary,
affiliate, or parent thereof, as the case may be, at any time.

     

    12. Financial Restatements Due
to Intentional Misconduct or Gross Negligence

     

    
      
         

      

      
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    (a)           In
the event that the disinterested and independent (as determined in accordance
with the NYSE AMEX listing standards) members of the Board of Directors
determine (the “Board Determination”) that the Participant’s intentional
misconduct or gross negligence directly or indirectly caused or contributed to a
restatement of the Company’s consolidated financial statements due to the
material non-compliance of the Company with any financial reporting requirement
under the U.S. federal securities laws, whether such restatement is required by
law or the Board of Directors determines, in its discretion, such restatement is
necessary or desirable to serve the best interests of the Company, then any
shares of Restricted Stock that are not yet Vested that were granted during the
three month period prior to or the nine month period following the first public
issuance or filing with the Securities Exchange Commission (whichever occurs
first) of the incorrect financial statements shall be immediately and
irrevocably forfeited without any payment therefor. In addition, for any shares
of Restricted Stock that became vested during the nine month period following
the first public issuance or filing with the Securities Exchange Commission
(whichever occurs first) of the incorrect financial statements (“Covered Vested
Shares”):

     

    (i)           to
the extent that such Covered Vested Shares have not been sold or otherwise
transferred by the Participant at the time the Company demand is made, such
Covered Vested Shares shall be immediately and irrevocably forfeited without any
payment therefor;

     

    (ii)           to
the extent that such Covered Vested Shares have been sold, the Participant shall
be required to repay or otherwise reimburse the Company, upon demand, an amount
in cash or Common Stock equal to the aggregate proceeds received from such sale
of such Covered Vested Shares; and

     

    (iii)           to
the extent that such Covered Vested Shares have been transferred otherwise than
for value (ex. a transfer by gift, a transfer upon death), the Participant shall
be required to repay or otherwise reimburse the Company, upon demand, an amount
in cash or Common Stock equal to the greatest of (a) the Fair Market Value (as
defined in the Plan) of such Covered Vested Shares on the date the Covered
Vested Shares became vested, (b) the Fair Market Value of such Covered Vested
Shares on the date the Covered Vested Shares were transferred and (c) the Fair
Market Value of such Covered Vested Shares on the date of the Board
Determination.

     

    (b)           This
section does not constitute the Company’s exclusive remedy for the Participant’s
commission of intentional misconduct or gross negligence.  The Company
may seek any additional legal or equitable remedy, including injunctive relief,
for any such violations. The provisions in this section are essential economic
conditions to the Company’s grant of Restricted Stock to the Participant. By
receiving the grant of Restricted Stock hereunder, the Participant agrees that
the Company may deduct from any amounts it owes the Participant from time to
time (such as wages or other compensation, deferred compensation credits,
vacation pay, any severance or other payments owed following a Termination of
Employment, as well as any other amounts owed to the Participant by the Company)
to the extent of any amounts the Participant owes the Company under this
section. The provisions of this section and any amounts repayable by the
Optionee hereunder are intended to be in addition to any rights to repayment the
Company may have under Section 304 of the Sarbanes-Oxley Act of 2002 and other
applicable law.

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    13. Adjustments.  In
the event that, after the date hereof, the outstanding shares of the Company's
common stock shall be increased or decreased or changed into or exchanged for a
different number or kind of shares of stock or other securities of the Company
or of another corporation through reorganization, merger or consolidation,
recapitalization, reclassification, stock split, split-up, combination or
exchange of shares or declaration of any dividends payable in common stock, the
Committee shall appropriately adjust the number of shares of Restricted Stock
(to the nearest possible full share), and such adjustment shall be effective and
binding for all purposes of this Agreement and the Plan.

     

    14. Governing
Law.  Except as otherwise required by applicable law, this
Agreement shall be governed by and construed in accordance with the laws of the
State of Florida, but without regard to the principle of conflict of laws
thereof.  If any one or more provisions of this Agreement shall be
found to be illegal or unenforceable in any respect, the validity and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby.

     

    15. Plan
Documents.  This Agreement is qualified in its entirety by
reference to the provisions of the Plan, as amended from time to time, which are
hereby incorporated herein by reference.  Capitalized terms not
defined herein shall have the meaning ascribed to them in the
Plan.  However, notwithstanding the above, no Plan amendment may
deprive you of any Restricted Stock theretofore granted under the Plan without
your consent, and no Plan amendment requiring shareholder approval (if any) may
be made without such shareholder approval.  The interpretation and
construction by the Committee of the Plan, this Agreement, the Restricted Stock
granted hereunder, and such rules and regulations as may be adopted by the
Committee for the purpose of administering the Plan, shall be final and binding
upon you.  Until the Restricted Stock shall expire, terminate, or Vest
in full, the Company shall, upon written request therefore, send a copy of the
Plan, in its then-current form, to you or any other person or entity then
entitled to the Restricted Stock.

     

    16. Binding
Effect.  This Agreement shall be binding upon and inure to the
benefit of the successors and assigns of the Company and upon the legal
representatives, executors, administrators, heirs, legatees and any permitted
assignee of the Participant.

     

    17. Section
83(b) Election.  The Participant
may make a Section 83(b) election to treat the shares of Restricted Stock
granted to him under Paragraph 1 as taxable income at the time of transfer under
this Agreement.  A section 83(b) election form (with accompanying
instructions) which may be used for this purpose is attached to this Agreement
as Exhibit
A.

     

    18. Tax
Withholding.  Participant shall make arrangements, satisfactory
to the Company, for the satisfaction of income and employment tax withholding
requirements related to the Restricted Stock.  In accordance with such
procedures as may be established by the Committee, Participant may surrender
shares of common stock, including shares of Vested Restricted Stock, in
satisfaction of the tax withholding requirement; provided, however, that the
number of shares to be surrendered or withheld shall be determined using the
minimum rate at which income and employment taxes must be withheld and the Fair
Market Value of common stock as of the date of withholding.

     

    
      
         

      

      
        - 4
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    19. Notices.  All notices and
other communications required or permitted hereunder shall be in writing and
deemed to have been received on the date of delivery if delivered by hand or
overnight express, or three days after the date of posting if mailed by
registered or certified mail, postage prepaid, addressed to the Company, c/o
General Counsel, at 250 S. Australian Avenue, Suite 400, West Palm Beach,
Florida 33401, and to Participant at Participant’s address as set forth on the
signature page hereto (or such other address to which the Company or you hereby
notify the other party hereto to send such notices and
communications).  Such notices and other communications shall not be
considered delivered until actually received or deemed received pursuant to this
Section 19.

     

    20. Further
Assurances.  The parties agree to execute such further
instruments and to take such further action as may reasonably be necessary to
carry out the intent of this Agreement.

     

    21. Entire
Agreement. This Agreement constitutes the entire agreement between the
Company and Participant and supersedes any prior agreements and understandings,
oral or written, between the Company and you concerning the subject matter of
this Agreement.

     

    22. Construction.  The section
headings contained in this Agreement are for reference only and shall have no
effect on the interpretation of any of the provisions of this
Agreement.

     

    23. Amendment.  This Agreement
may (except as provided in the Plan) only be amended, altered or modified by a
written instrument signed by the parties hereto, or their respective successors,
and it may not be terminated (except as provided herein or in the
Plan).

     

    
      
         

      

      
        - 5
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    IN WITNESS WHEREOF, the
Company has caused this Agreement to be signed by a duly authorized officer, and
Participant has affixed his signature hereto.

    

    

    METROPOLITAN HEALTH NETWORKS,
INC.

    

    

    

    By:                                                                

    Michael M. Earley,
Chairman

    

    

    

    

    DIRECTOR

    

    

    ________________________________

    Address:

    

    Social
Security Number:

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

      Grant No.: ______

       

    

    EXHIBIT
A

     

    ELECTION
TO INCLUDE VALUE OF RESTRICTED PROPERTY

     

    IN GROSS INCOME IN YEAR OF
TRANSFER UNDER SECTION 83(b)

     

    Pursuant
to Section 83(b) of the Internal Revenue Code of 1986, as amended, I hereby
elect to include in my gross income at the time of transfer the amount
includible under Section 83(b) with respect to the restricted property described
below, in accordance with applicable regulations:

     

    1.           The name, address and taxpayer
information number of the undersigned are:

     

    Name:   __________________________________              

    Address:                                                                                                               

    Taxpayer
Identification Number:                                                                       

     

    2.           Description of property with respect
to which the election is being made:

     

    __________________________
shares of common stock, $.001 par value, of Metropolitan Health Networks,
Inc.

     

    
      	
              3.

            	
              Date on which the property was
      transferred and taxable year for which the election is
      made:

            

    

     

    Date of
transfer:                                                      

     

    Taxable
year for which election made:  Calendar year ______

     

    4.           The nature of the restriction(s) to
which the property is subject:

     

    Forfeiture
in the event that the undersigned terminates his/her services as a member of the
Board of Directors of Metropolitan Health Networks, Inc. before the restricted
shares becomes vested in accordance with the terms of the Restricted Stock Award
Agreement.

    

    5.           Fair market value at time of
transfer:

     

    The fair
market value at the time of transfer (determined without regard to any
restrictions other than restrictions which by their terms will never lapse) of
the property with respect to which this election is being made is ______ per
share, for an aggregate fair market value of $_____________.

     

    6.           Amount paid for the
property:

     

    No amount
has been paid by the undersigned for said property.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    7.           Furnishing statement to
company:

     

    A copy of
this statement has been furnished to Metropolitan Health Networks,
Inc.

     

    

    Dated:                                           

     

    Signature:                                                                       

    Name:                                                                       

     

    
      
         

      

      
        - 2
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    INSTRUCTIONS FOR SECTION
83(b) ELECTION FORM:

     

    1.      Review
and complete all items on this form, including:

     

    
      	
              §  

            	
              Address
      and taxpayer identification number (i.e., Social Security number) (Item
      1)

            

    

     

    
      	
              §  

            	
              Date
      of transfer (Item 3)

            

    

     

    
      	
              §  

            	
              Fair
      market value per share and in the aggregate (Item
  5)

            

    

     

    
      	
              §  

            	
              Signature
      and date (bottom)

            

    

     

    2.      Provide
a copy of this form within 30 days of the date of the agreement to:

     

    
      	
              §  

            	
              the
      CFO or Controller for Metropolitan Health Networks,
  Inc.

            

    

     

    
      	
              §  

            	
              Director,
      Internal Revenue Service Center, of the Service Center where you expect to
      file your income tax return

            

    

     

    
      	 
      

    

    
      	
              3.

            	
              Attach
      a copy of this form to your Federal income tax return for the calendar
      year involved.

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