Document:

restrictedstockform.htm

    
       

      Back to Form 8-K

      Exhibit 10.3

      WELLCARE
HEALTH PLANS, INC.

      2004
EQUITY INCENTIVE PLAN

       

      RESTRICTED
STOCK AGREEMENT

       

      FOR

       

      THOMAS
TRAN

       

       

      This RESTRICTED STOCK AGREEMENT
(the “Agreement”)
is made and entered into effective as of __________  ___, 2008, by and
between WellCare Health Plans, Inc., a Delaware corporation (the “Company”),
and Thomas Tran (the “Grantee”).

       

      RECITALS

       

      In consideration of services to be
rendered by the Grantee and to provide incentive to the Grantee to remain with
the Company and its Subsidiaries, it is in the best interests of the Company to
make a grant of Restricted Stock to Grantee in accordance with the terms of this
Agreement; and

       

      The Restricted Stock is granted
pursuant to the WellCare Health Plans, Inc. 2004 Equity Incentive Plan (the
“Plan”)
which is incorporated herein for all purposes.  The Grantee hereby
acknowledges receipt of a copy of the Plan.  Unless otherwise provided
herein, terms used herein that are defined in the Plan and not defined herein
shall have the meanings attributable thereto in the Plan.

       

      NOW, THEREFORE, for and in
consideration of the mutual premises, covenants and agreements contained herein,
and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties hereto, intending to be legally bound,
hereby agree as follows:

       

      1.           Award of Restricted
Stock.  The Company hereby grants, on the date set forth above
(the “Date
of Grant”), to the Grantee, 50,000 shares of common stock, par value $.01
per share, of the Company (collectively, the “Restricted
Stock”), which Restricted Stock is and shall be subject to the terms,
provisions and restrictions set forth in this Agreement and in the
Plan.  As a condition to entering into this Agreement, and as a
condition to the issuance of the Restricted Stock (or any other securities of
the Company), the Grantee agrees to be bound by all of the terms and conditions
herein and in the Plan.  The purchase price per share of Restricted
Stock is $.01 per share (the par value of a share of common stock of the
Company), which shall be paid in cash within ten days of the Date of
Grant.

       

      2.           Vesting of Restricted
Stock.

       

      (a)           Except
as otherwise provided in Section 3 hereof, 25% of Restricted Stock shall become
vested on each anniversary of the Date of Grant (each such date being a “Vesting Date”),
provided that the
Grantee’s employment with the Company, Comprehensive Health Management, Inc.
(“CHMI”)
or any other Subsidiary continues through and on the applicable Vesting
Date.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      (b)           Except
as otherwise provided in Section 3 hereof, there shall be no proportionate or
partial vesting of Restricted Stock in or during the months, days or periods
prior to each Vesting Date, and all vesting of Restricted Stock shall occur only
on the applicable Vesting Date.

       

      3.           Termination of
Services.

       

      (a)           If
the Grantees ceases to be an officer or employee of the Company, CHMI and any
other Subsidiary (the “Date of
Termination”), for any reason whatsoever, any portion of the Restricted
Stock which is not yet then vested, and which does not then become vested
pursuant to this Section 3, shall automatically and without notice terminate, be
forfeited and become null and void.

       

      (b)           Notwithstanding
the foregoing, if the Grantee ceases to be an officer or employee of the
Company, CHMI or any other Subsidiary, and the Grantee’s employment was
terminated (i) by the Company, CHMI or any other Subsidiary without Cause, as
defined in the Employment Agreement dated as of July 21, 2008 among the Grantee,
the Company and CHMI (the “Employment
Agreement”) or (ii) by the Grantee for Good Reason, as defined in the
Employment Agreement, in either case, within twelve months after there is a
Change in Control of the Company, as defined in Section 2(c) of the Plan, then
the unvested Restricted Stock shall become immediately vested as of the Date of
Termination.

       

      (c)           Notwithstanding
any other term or provision of this Agreement, in the event that the Grantee’s
employment with the Company, CHMI or any other Subsidiary is terminated on
account of the Grantee’s death or Disability, as defined in the Employment
Agreement, any unvested portion of the Restricted Stock shall become immediately
vested as of the Date of the Termination.

       

      (d)           Notwithstanding
any other term or provision of this Agreement but subject to the provisions of
the Plan, the Committee shall be authorized, in its sole discretion, based upon
its review and evaluation of the performance of the Grantee and of the Company
and its Subsidiaries, to accelerate the vesting of all or any portion of the
Restricted Stock under this Agreement, at such times and upon such terms and
conditions as the Committee shall deem advisable.

       

      4.           Delivery of Restricted
Stock.  The Company shall make a book entry in its stock ledger
for the Restricted Stock registered in the Grantee’s name.  Upon
vesting, certificates for the Restricted Stock will be issued in the name of the
Grantee and shall be delivered to the Grantee’s address on record with the
Company or to such other address as the Grantee may instruct the
Company.  The Company shall include a restrictive legend on any stock
certificates evidencing shares of Restricted Stock issued under the Plan or
under this Agreement or, in the case of uncertificated shares of Restricted
Stock issued thereunder, on the required notices described in Section 151(f) of
the Delaware General Corporation Law (the “DGCL”).

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      5.           Rights with Respect to
Restricted Stock.

       

      (a)           Except
as otherwise provided in this Agreement, the Grantee shall have, with respect to
all of the shares of Restricted Stock, whether vested or unvested, all of the
rights of a holder of shares of common stock of the Company, including without
limitation (i) the right to vote such Restricted Stock, (ii) the right to
receive dividends, if any, as may be declared on the Restricted Stock from time
to time, and (iii) the rights available to all holders of shares of common stock
of the Company upon any merger, consolidation, reorganization, liquidation or
dissolution, stock split-up, stock dividend or recapitalization undertaken by
the Company.

       

      (b)           If
at any time while this Agreement is in effect (or shares of Restricted Stock
granted hereunder shall be or remain unvested while Grantee’s employment
continues and has not yet terminated or ceased for any reason), there shall be
any increase or decrease in the number of issued and outstanding shares of the
Company through the declaration of a stock dividend or through any
recapitalization resulting in a stock split-up, combination or exchange of such
shares, then and in that event, the Committee shall make any adjustments it
deems fair and appropriate, in view of such change, in the number of shares of
Restricted Stock then subject to this Agreement.  If any such
adjustment shall result in a fractional share, such fraction shall be
disregarded.

       

      (c)           Notwithstanding
any term or provision of this Agreement to the contrary, the existence of this
Agreement, or of any outstanding Restricted Stock awarded hereunder, shall not
affect in any manner the right, power or authority of the Company to make,
authorize or consummate: (i) any or all adjustments, recapitalizations,
reorganizations or other changes in the Company’s capital structure or its
business; (ii) any merger, consolidation or similar transaction by or of the
Company; (iii) any offer, issue or sale by the Company of any capital stock of
the Company, including any equity or debt securities, or preferred or preference
stock that would rank prior to or on parity with the Restricted Stock and/or
that would include, have or possess other rights, benefits and/or preferences
superior to those that the Restricted Stock includes, has or possesses, or any
warrants, options or rights with respect to any of the foregoing; (iv) the
dissolution or liquidation of the Company; (v) any sale, transfer or assignment
of all or any part of the stock, assets or business of the Company; or (vi) any
other corporate transaction, act or proceeding (whether of a similar character
or otherwise).

       

      6.           Transferability.  Unless
otherwise determined by the Committee, the shares of Restricted Stock are not
transferable until and unless they become vested in accordance with this
Agreement, provided, that in no event may shares of Restricted Stock be
transferred unless there is an available exemption under federal and applicable
state securities laws and regulations (as determined in the sole and absolute
discretion of the Company).  The terms of this Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of the
Grantee.  Any attempt to effect a Transfer of any shares of Restricted
Stock prior to the date on which the shares of Restricted Stock become vested
shall be void ab
initio.  For purposes of this Agreement, “Transfer” shall mean
any sale, transfer, encumbrance, gift, donation, assignment, pledge,
hypothecation, or other disposition, whether similar or dissimilar to those
previously enumerated, whether voluntary or involuntary, and including, but not
limited to, any disposition by operation of law, by court order, by judicial
process, or by foreclosure, levy or attachment.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      7.           Tax Withholding
Obligations.

       

      (a)           Subject
to the availability of “surplus” within the meaning of the DGCL, the Company
shall withhold a number of shares of the Company’s common stock (rounded down)
otherwise deliverable to the Grantee having a Fair Market Value sufficient to
satisfy the statutory minimum of all or part of the Grantee’s estimated total
federal, state and local tax obligations associated with the award or vesting of
the Restricted Stock; provided, however, the Grantee may
elect, by providing the Company with at least two weeks prior notice, to satisfy
such tax withholding obligations by depositing with the Company an amount of
cash equal to the amount determined by the Company to be required with respect
to any withholding taxes, FICA contributions or the like under federal, state or
local statute, ordinance rule or regulation in connection with the award or
vesting of the Restricted Stock.  Alternatively, the Company may, in
its sole and absolute discretion and to the extent permitted by law, deduct from
any payment of any kind otherwise due to the Grantee any federal, state or local
taxes of any kind required by law to be withheld with respect to the Restricted
Stock.  In the event there is no available surplus (as determined in
the sole and absolute discretion of the Committee), the Grantee shall be
required to satisfy any required tax withholding obligations by making a cash
payment to the Company.  In the event there is no available surplus
and the Grantee does not make a cash payment to the Company to satisfy any
required tax withholding obligations within one (1) business day of a request by
the Company to do so, the shares of Restricted Stock that otherwise would have
vested shall be forfeited.

       

      (b)           Tax
consequences on the Grantee (including without limitation federal, state, local
and foreign income tax consequences) with respect to the Restricted Stock
(including without limitation the grant, vesting and/or forfeiture thereof) are
the sole responsibility of the Grantee.  The Grantee shall consult
with his or her own personal accountant(s) and/or tax advisor(s) regarding these
matters, the making of a Section 83(b) election and the Grantee’s filing,
withholding and payment (or tax liability) obligations.

       

      8.           Amendment, Modification and
Assignment.  This Agreement may only be modified or amended in
a writing signed by the parties hereto.  No promises, assurances,
commitments, agreements, undertakings or representations, whether oral, written,
electronic or otherwise, and whether express or implied, with respect to the
subject matter hereof, have been made by either party which are not set forth
expressly in this Agreement.  Unless otherwise consented to in writing
by the Company, in its sole discretion, this Agreement (and Grantee’s rights
hereunder) may not be assigned, and the obligations of Grantee hereunder may not
be delegated, in whole or in part.  The rights and obligations created
hereunder shall be binding on the Grantee and his heirs and legal
representatives and on the successors and assigns of the Company.

       

      9.           Complete
Agreement.  This Agreement (together with those agreements and
documents expressly referred to herein, for the purposes referred to herein)
embody the complete and entire agreement and understanding between the parties
with respect to the subject matter hereof, and supersede any and all prior
promises, assurances, commitments, agreements, undertakings or representations,
whether oral, written, electronic or otherwise, and whether express or implied,
which may relate to the subject matter hereof in any way.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      10.           Requirements of
Law.

       

       

      (a)           The
Company shall in no event be obligated to register for resale any securities
covered hereby pursuant to the Securities Act of 1933, as amended (the “1933
Act”).

       

      (b)           Grantee
Representations.  The Grantee hereby represents and warrants to
the Company that:  (i) the Grantee understands and accepts that the
grant of Restricted Stock by the Company to the Grantee is intended to be exempt
from registration under the 1933 Act by virtue of Section 4(2) of the 1933 Act;
(ii) the Grantee understands and accepts that the grant of Restricted Stock by
the Company to the Grantee is intended to be exempt from registration under the
securities laws of the state or states in which the grant of such Restricted
Stock is deemed to be made, by virtue of transactional exemptions set forth
therein; (iii) the shares of Restricted Stock of the Company acquired by the
Grantee hereunder are being acquired solely for his own account, for investment
purposes only and not with a view to, or for sale in connection with, any
distribution (as such term is used in Section 2(11) of the 1933 Act) of such
shares of Restricted Stock nor with the present intention of distributing or
selling any of such shares of Restricted Stock; (iv) the Grantee has made a
detailed inquiry concerning the Company and its business and services, officers
and personnel, including the ongoing governmental investigations and the
investigation by special committee of the Board (“Special
Committee”); (v) the Company has made available to the Grantee, or such
Grantee has had access to, any and all information, financial or otherwise,
concerning the Company and its businesses and services, officers and personnel
which the Grantee has requested or deemed relevant (including information
regarding the ongoing investigations of the Company by certain federal and state
agencies and other regulatory bodies, as well as related private party
proceedings, the Special Committee investigation and the Company’s ongoing
response thereto); (vi) the Grantee has such knowledge and experience in
financial and business matters in order to evaluate the merits and risks of
investment in the shares of Restricted Stock of the Company and to make an
informed investment decision with respect thereto; (vii) the Grantee is an
“accredited investor” as defined in Regulation D promulgated under the 1933 Act;
and (viii) the Grantee can bear a complete loss of the value of the shares of
Restricted Stock and is able to bear the economic risks of holding the
Restricted Stock for an indefinite period.  The Grantee also
understands that his shares of Restricted Stock have not been registered under
the 1933 Act or any applicable state securities laws and regulations and that
such shares of Restricted Stock cannot be transferred or sold unless an
exemption from registration under federal and any applicable state securities
laws and regulations is available.  The Grantee further acknowledges
that if an exemption from registration is available, it may be conditioned on
various requirements including, but not limited to, the time and manner of sale,
the holding period for the shares of Restricted Stock, and on information and
other requirements relating to the Company which are outside of the Grantee’s
control.

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

                     
11.           Miscellaneous.

       

      (a)           No Right to Continued
Employment.  This Agreement and the grant of Restricted Stock
hereunder shall not confer, or be construed to confer, upon the Grantee any
right to employment, or continued employment, with the Company or any
Subsidiary.

       

      (b)           No Limit on Other
Compensation Arrangements.  Nothing contained in this Agreement
shall preclude the Company or any Subsidiary from adopting or continuing in
effect other or additional compensation plans, agreements or arrangements, and
any such plans, agreements and arrangements may be either generally applicable
or applicable only in specific cases or to specific persons.

       

      (c)           Severability.  If
any term or provision of this Agreement is or becomes or is deemed to be
invalid, illegal or unenforceable in any jurisdiction or under any applicable
law, rule or regulation, then such provision shall be construed or deemed
amended to conform to applicable law (or if such provision cannot be so
construed or deemed amended without materially altering the purpose or intent of
this Agreement and the grant of Restricted Stock hereunder, such provision shall
be stricken as to such jurisdiction and the remainder of this Agreement and the
award hereunder shall remain in full force and effect).

       

      (d)           No Trust or Fund
Created.  Neither this Agreement nor the grant of Restricted
Stock hereunder shall create or be construed to create a trust or separate fund
of any kind or a fiduciary relationship between the Company or any Subsidiary
and the Grantee or any other person.  To the extent that the Grantee
or any other person acquires a right to receive payments from the Company or any
Subsidiary pursuant to this Agreement, such right shall be no greater than the
right of any unsecured general creditor of the Company.

       

      (e)           Electronic Delivery and
Signatures. Grantee hereby consents and agrees to electronic delivery of
any Plan documents, proxy materials, annual reports and other related
documents.  If the Company establishes procedures for an electronic
signature system for delivery and acceptance of Plan documents (including
documents relating to any programs adopted under the Plan), Grantee hereby
consents to such procedures and agrees that his or her electronic signature is
the same as, and shall have the same force and effect as, his or her manual
signature.  Grantee consents and agrees that any such procedures and
delivery may be effected by a third party engaged by the Company to provide
administrative services related to the Plan, including any program adopted under
the Plan.

       

      (f)         
  Law
Governing.  This Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of Delaware
(without reference to the conflict of laws rules or principles
thereof).

       

      (g)           Interpretation. 
The Grantee accepts the Restricted Stock subject to all of the terms, provisions
and restrictions of this Agreement and the Plan.  The undersigned
Grantee hereby accepts as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions arising under this
Agreement.

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      (h)           Headings.  Section,
paragraph and other headings and captions are provided solely as a convenience
to facilitate reference.  Such headings and captions shall not be
deemed in any way material or relevant to the construction, meaning or
interpretation of this Agreement or any term or provision hereof.

       

      (i)        
   Notices.  Any
notice under this Agreement shall be in writing and shall be deemed to have been
duly given when delivered personally or when deposited in the United States
mail, registered, postage prepaid, and addressed, in the case of the Company, to
the Company’s Secretary at 8735 Henderson Road, Renaissance Two, Tampa, Florida
33634, or if the Company should move its principal office, to such principal
office, and, in the case of the Grantee, to the Grantee’s last permanent address
as shown on the Company’s records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the
requirements of this Section.

       

      (j)        
   Non-Waiver of
Breach.  The waiver by any party hereto of the other party’s
prompt and complete performance, or breach or violation, of any term or
provision of this Agreement shall be effected solely in a writing signed by such
party, and shall not operate nor be construed as a waiver of any subsequent
breach or violation, and the waiver by any party hereto to exercise any right or
remedy which he or it may possess shall not operate nor be construed as the
waiver of such right or remedy by such party, or as a bar to the exercise of
such right or remedy by such party, upon the occurrence of any subsequent breach
or violation.

       

      (k)           Counterparts.  This
Agreement may be executed in two or more separate counterparts, each of which
shall be an original, and all of which together shall constitute one and the
same agreement.

       

                 12.           Company Right to
Recover.

       

      If it is ever determined by the Board
of Directors, in its sole and absolute discretion, that actions by the Grantee
have constituted: (i) wrongdoing that contributed to (A) any material
misstatement or omission from any report or statement filed by the Company with
the U.S. Securities and Exchange Commission or (B) any statement, certification,
cost report, claim for payment, or other filing made under Medicare or
Medicaid that was false, fraudulent, or for an item or service not provided as
claimed; (ii) gross misconduct; (iii) breach of fiduciary duty to the Company or
any Subsidiary; or (iv) fraud, then the Restricted Stock, including any
shares of Restricted Stock that previously vested, shall be immediately
forfeited and thereupon the Restricted Stock, including any shares of Restricted
Stock that previously vested, shall be cancelled; provided, further, that if the
vested shares have been sold prior to the Board of Director’s determination, the
Grantee shall be required to pay to the Company an amount equal to the amount
realized on such sale. In addition, the Restricted Stock, including any shares
of Restricted Stock that previously vested and gains resulting from the sale of
such vested shares, shall be subject to forfeiture in accordance with the
Company’s standard policies relating to such forfeitures and clawbacks, as such
policies are in effect at the time of grant of the Restricted
Stock.

       

      * * * * *
* * *

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      IN WITNESS WHEREOF, the parties hereto,
intending to be legally bound, have executed this Agreement as of the date first
written above.

       

      

       

      WELLCARE HEALTH PLANS,
INC.

      

      

      By:
_____________________________

      Name: Heath G. Schiesser

      Title: President and Chief Executive
Officer

      

      

      Grantee acknowledges receipt of a copy
of the Plan and represents that he or she is familiar with the terms and
provisions thereof, and hereby accepts this Agreement subject to all of the
terms and provisions thereof.  Grantee has reviewed the Plan and this
Agreement in their entirety, has had an opportunity to obtain the advice of
counsel prior to executing this Agreement, and fully understands all provisions
of this Agreement.

       

      GRANTEE:

       

      By:           __________________________________

      Thomas Tran

      8non-qualifiedstockoption.htm

    
      
Back to Form
8-K

      Exhibit 10.4

      WELLCARE
HEALTH PLANS, INC.

      2004
EQUITY INCENTIVE PLAN

      

      NON-QUALIFIED
STOCK OPTION AGREEMENT

      FOR

      THOMAS
TRAN

       

      Agreement

       

      1.             
          Grant of
Option.  WellCare Health Plans, Inc. (the “Company”)
hereby grants, as of __________  ___, 2008, to Thomas Tran (the “Optionee”)
an option (the “Option”)
to purchase up to 100,000 shares of the Company’s Common Stock, $0.01 par value
per share (the “Shares”),
at an exercise price per share equal to $_______ (the “Option
Price”).  The Option shall be subject to the terms and
conditions set forth herein.  The Option was issued pursuant to the
Company’s 2004 Equity Incentive Plan (the “Plan”),
which is incorporated herein for all purposes.  The Option is a
Non-Qualified Stock Option, and not an Incentive Stock Option.  The
Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all of the terms and conditions hereof and thereof and all applicable
laws and regulations.

       

      2.                  
     Definitions.  Unless
otherwise provided herein, terms used herein that are defined in the Plan and
not defined herein shall have the meanings attributed thereto in the
Plan.

       

      3.                  
     Exercise
Schedule.  Except as otherwise provided in Sections 6 and 7 of
this Agreement, or in the Plan, the Option is exercisable in installments as
provided below, which shall be cumulative. To the extent that the Option has
become exercisable with respect to a percentage of Shares as provided below, the
Option may thereafter be exercised by the Optionee, in whole or in part, at any
time or from time to time prior to the expiration of the Option as provided
herein. The following table indicates each date (the “Vesting
Date”) upon which the Optionee shall be entitled to exercise the Option
with respect to the percentage of Shares granted as indicated beside the date,
provided that the Optionee’s employment or service with the Company and its
Subsidiaries during the period beginning on __________  ___, 2008 (the
“Vesting
Commencement Date”) continues through and on the applicable Vesting
Date:

       

      Percentage of
Shares                                                                Vesting
Date

       

      25%                                           First
anniversary of the VestingCommencement Date

       

      50%                                           Second
anniversary of the VestingCommencement Date

       

      75%                                           Third
anniversary of the VestingCommencement Date

       

      100%                                         Fourth
anniversary of the VestingCommencement Date

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      Notwithstanding
anything contained herein to the contrary, once the Option has vested and become
exercisable with respect to 100% of the Shares, then the Option shall be fully
vested and the provisions of the preceding sentence shall cease to
apply.  NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE OPTION
CANNOT BE EXERCISED UNTIL THE COMPANY IS AGAIN CURRENT IN ITS PERIODIC REPORT
FILINGS WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION (THE “SEC”) AND
HAS FILED ALL PERIODIC REPORTS REQUIRED TO BE FILED BY THE COMPANY WITH THE SEC
WITHIN THE PRECEDING TWELVE MONTHS.

       

                           
    Except as otherwise specifically provided herein, there shall
be no proportionate or partial vesting in the periods prior to each Vesting
Date, and all vesting shall occur only on the appropriate Vesting Date. Except
as otherwise specifically provided herein, upon the termination of the
Optionee’s employment or service with the Company and its Subsidiaries, any
unvested portion of the Option shall terminate and be null and
void.

       

      4.                   
   Method of
Exercise.  The vested portion of this Option shall be
exercisable in whole or in part in accordance with the exercise schedule set
forth in Section 3 hereof by written notice which shall state the election to
exercise the Option, the number of Shares in respect of which the Option is
being exercised (which number must be a whole number), and such other
representations and agreements as to the holder’s investment intent with respect
to such Shares as may be required by the Company pursuant to the provisions of
the Plan.  Such written notice shall be signed by the Optionee and
shall be delivered in person or by certified mail to the Secretary of the
Company.  The written notice shall be accompanied by payment of the
Option Price.  This Option shall be deemed to be exercised after both
(a) receipt by the Company of such written notice accompanied by the Option
Price and (b) receipt by the Company of the Optionee’s cash payment of the
amount, if any, that is necessary to be withheld in accordance with applicable
Federal or state withholding requirements.  No Shares will be issued
pursuant to the Option unless and until such issuance and such exercise shall
comply with all relevant provisions of applicable law, including the
requirements of any stock exchange upon which the Shares then may be
traded.

       

      5.                  
    Method of
Payment.  Payment of the Option Price shall be by any of the
following, or a combination thereof, at the election of the Optionee: (a) in
cash (including check, bank draft, money order or wire transfer of immediately
available funds), (b) by simultaneous sale through a broker reasonably
acceptable to the Committee of Shares acquired on exercise, as permitted under
Regulation T of the Federal Reserve Board, (c) by authorizing the Company to
withhold from issuance a number of Shares issuable upon exercise of the Option
which, when multiplied by the Fair Market Value of a share of Common Stock on
the date of exercise, is equal to the Option Price payable with respect to the
portion of the Option being exercised or (d) by any combination of the
foregoing.  

       

                      
      In the event the Optionee elects to pay the
Option Price pursuant to clause (c) above, (i) only a whole number of Share(s)
(and not fractional Shares) may be withheld in payment and (ii) the Optionee
must present evidence acceptable to the Company that the Optionee has owned a
number of shares of Common Stock at least equal to the number of Shares to be
withheld in payment of the Option Price (and that such owned shares of Common
Stock have not been subject to any substantial risk of forfeiture) for at least
six months prior to the date of exercise.  When payment of the Option
Price is made by withholding of Shares, the difference, if any, between the
Option Price payable with respect to the portion of the Option being exercised
and the Fair Market Value of the Shares withheld in payment (plus any applicable
taxes) shall be paid in cash.  The Optionee may not authorize the
withholding of Shares having a Fair Market Value exceeding the Option Price
payable with respect to the portion of the Option being exercised (plus any
applicable taxes).  Any withheld Shares shall no longer be issuable
under the Option.

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      6.                  
    Termination of Optionee’s
Service.

       

                 (a)           Death or
Disability.  If the Optionee ceases to be an officer or
employee of, or to perform other services for, the Company, Comprehensive Health
Management, Inc. (“CHMI”) or any other Subsidiary
due to the Optionee’s death or Disability, as defined in the Employment
Agreement dated as of July 21, 2008 among the Optionee, the Company and CHMI
(the “Employment
Agreement”), the Option shall become fully vested on the date of such
cessation and shall remain exercisable for a period of one year from the date of
such cessation, but in no event after the expiration date provided in Section
7(a) below; provided, that the Option shall immediately terminate and become
null and void in the event that the Optionee engages in Competition during any
such post-termination exercise period, unless the Optionee has received written
consent to do so from the Company.

       

                 (b)      
    Termination for
Cause.  If the Optionee’s employment by, or other performance
of services for, the Company, CHMI or any other Subsidiary is terminated for
Cause, as defined in the Employment Agreement, the Option shall expire and be
forfeited immediately upon such termination, whether or not then
exercisable.

       

                 (c)           Other Termination of
Service.  If the Optionee ceases to be an officer or employee
of, or to perform other services for, the Company, CHMI and any other Subsidiary
for any reason other than death, Disability, as defined in the Employment
Agreement, or Cause, as defined in the Employment Agreement, the portion of the
Option that was exercisable on the date of such cessation shall remain so for a
period of 90 days after the date of such cessation, but in no event after the
expiration date provided in Section 7(a) below; provided, that the Option shall
immediately terminate in the event that the Optionee engages in Competition
during any such post-termination exercise period, unless the Optionee has
received written consent to do so from the Company.

       

                 (d)           Termination of Service
Following a Change in Control.  Notwithstanding the foregoing,
if the Optionee ceases to be an officer or employee of, or to perform other
services for, the Company, CHMI or any other Subsidiary,
and the Optionee’s service was terminated (i) by the Company, CHMI or any other
Subsidiary without Cause, as defined in the Employment Agreement, or (ii) by the
Optionee for Good Reason, as defined in the Employment Agreement, in either
case, within twelve months after there is a Change in Control of the Company, as
defined in Section 2(c) of the Plan, then the Option shall be immediately fully
exercisable and shall remain so for the applicable period following the
Optionee’s termination of service, as described in this Section 6.

       

                 (e)           Extension of
Post-Termination of Service Exercise Period.  Notwithstanding the foregoing, the period during which
the Option can be exercised after a
termination of service subject to Sections 6(a), (c), or (d)
above will be extended for any period during which the Optionee cannot exercise
the Option because such an exercise would violate an applicable Federal, state,
local, or foreign law, until 30 days after the
exercise of the Option first would no
longer violate an applicable Federal, state, local, and foreign laws,
but in no event after the expiration date
of the Option provided in Section 7(a) below.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      7.                 
      Other Termination of
Option.

       

                 (a)           Expiration of
Option.  Notwithstanding anything to the contrary, any
unexercised portion of the Option shall automatically and without notice
terminate and become null and void on the seventh anniversary of the date as of
which the Option is granted.

       

                 (b)           Cancellation by the
Committee.  Notwithstanding anything to the contrary, in
connection with any transaction of the type specified by clause (iii) of the
definition of a Change in Control in Section 2(c) of the Plan, the Committee
may, in its discretion, (i) cancel the Option in consideration for payment to
the Optionee of an amount equal to the portion of the consideration that would
have  been payable to the Optionee pursuant to such transaction if the
Option had been fully exercised immediately prior to such transaction, less
the aggregate Option Price that would have been payable therefor, or (ii) if the
amount that would have been payable to the Optionee pursuant to such transaction
if the Option had been fully exercised immediately prior thereto would be equal
to or less than the aggregate Option Price that would have been payable
therefor, cancel the Option for no consideration or payment of any
kind.  Payment of any amount payable pursuant to the preceding
sentence may be made in cash or, in the event that the consideration to be
received in such transaction includes securities or other property, in cash
and/or securities or other property in the Committee’s discretion.

       

                 (c)     
      Corporate
Transactions.  Notwithstanding anything to the contrary, to the extent
not previously exercised, the Option shall terminate immediately in the event of
the liquidation or dissolution of the Company.

       

      8.                   
    Transferability.  Unless
otherwise determined by the Committee, the Option granted hereby is not
transferable otherwise than by will or under the applicable laws of descent and
distribution, and during the lifetime of the Optionee the Option shall be
exercisable only by the Optionee, or the Optionee’s guardian or legal
representative. In addition, the Option shall not be assigned, negotiated,
pledged or hypothecated in any way (whether by operation of law or otherwise),
and the Option shall not be subject to execution, attachment or similar process.
Upon any attempt to transfer, assign, negotiate, pledge or hypothecate the
Option, or in the event of any levy upon the Option by reason of any execution,
attachment or similar process contrary to the provisions hereof, the Option
shall immediately become null and void.  The terms of this Option
shall be binding upon the executors, administrators, heirs, successors and
assigns of the Optionee. 

       

      9.                   
    No Rights of
Stockholders.  Neither the Optionee nor any personal
representative (or beneficiary) shall be, or shall have any of the rights and
privileges of, a stockholder of the Company with respect to any shares of Stock
purchasable or issuable upon the exercise of the Option, in whole or in part,
prior to the date of exercise of the Option.

       

      10.                      No Right to Continued
Employment or Service.  Neither the Option nor this Agreement
shall confer upon the Optionee any right to continued employment or service with
the Company.

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      11.                      Law
Governing.  This Agreement shall be governed in accordance with
and governed by the internal laws of the State of Delaware.

       

      12.                      Interpretation/Provisions of
Plan
Control. This Agreement is subject to all the terms, conditions and
provisions of the Plan, including, without limitation, the amendment provisions
thereof, and to such rules, regulations and interpretations relating to the Plan
adopted by the Committee as may be in effect from time to time. If and to the
extent that this Agreement conflicts or is inconsistent with the terms,
conditions and provisions of the Plan, the Plan shall control, and this
Agreement shall be deemed to be modified accordingly. The Optionee accepts
the Option subject to all the terms and provisions of the Plan and this
Agreement.  The undersigned Optionee hereby accepts as binding,
conclusive and final all decisions or interpretations of the Committee upon any
questions arising under the Plan and this Agreement.

       

      13.                      Notices.  Any
notice under this Agreement shall be in writing and shall be deemed to have been
duly given when delivered personally or when deposited in the United States
mail, registered, postage prepaid, and addressed, in the case of the Company, to
the Company’s Secretary at:

       

                                                 8735
Henderson Road

                                                 Renaissance
Two

                                               
Tampa, FL
33634

      

      or if the
Company should move its principal office, to such principal office, and, in the
case of the Optionee, to the Optionee’s last permanent address as shown on the
Company’s records, subject to the right of either party to designate some other
address at any time hereafter in a notice satisfying the requirements of this
Section.

       

      14.                     
Requirements of
Law.

       

                
(a)           The Company shall not
be required to sell or issue any securities under the Option if the sale or
issuance of such securities would constitute a violation by the Optionee or the
Company of any provisions of any law or regulation of any governmental
authority, including without limitation any federal or state securities laws or
regulations.  If at any time the Company shall determine, in its
discretion, that the listing, registration or qualification of any securities
subject to the Option upon any securities exchange or under
any governmental regulatory body is necessary or desirable as a condition
of, or in connection with, the issuance or purchase of securities hereunder, the
Option may not be exercised in whole or in part unless such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Company, and any delay
caused thereby shall in no way affect the date of termination of the
Option.  Specifically in connection with the Securities Act of
1933, as amended (the “1933
Act”), upon the exercise of the Option, unless a Form S-8 registration
statement under the 1933 Act is in effect with respect to the securities covered
by the Option, the Company shall not be required to sell or issue such
securities.  As to any jurisdiction that expressly imposes the
requirement that the Option shall not be exercisable until the securities
covered by such Option are registered or are exempt from registration, the
exercise of such Option (under circumstances in which the laws of such
jurisdiction apply) shall be deemed conditioned upon the effectiveness of such
registration or the availability of such an exemption.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

               
(b)            Optionee
Representations.  The Optionee hereby represents and warrants
to the Company that:  (i) the Optionee understands and accepts that
the grant of the Option by the Company to the Optionee is intended to be exempt
from registration under the 1933 Act by virtue of Section 4(2) of the 1933 Act;
(ii) the Optionee understands and accepts that the grant of the Option by the
Company to the Optionee is intended to be exempt from registration under the
securities laws of the state or states in which the grant of such Option is
deemed to be made, by virtue of transactional exemptions set forth therein;
(iii) the Option acquired by the Optionee hereunder is being acquired solely for
his own account, for investment purposes only and not with a view to, or for
sale in connection with, any distribution (as such term is used in Section 2(11)
of the 1933 Act) of such Option nor with the present intention of distributing
or selling such Option; (iv) the Optionee has made a detailed inquiry concerning
the Company and its business and services, officers and personnel, including the
ongoing governmental investigations and the investigation by special committee
of the Board (“Special
Committee”); (v) the Company has made available to the Optionee, or such
Optionee has had access to, any and all information, financial or otherwise,
concerning the Company and its businesses and services, officers and personnel
which the Optionee has requested or deems relevant (including information
regarding the ongoing investigations of the Company by certain federal and state
agencies and other regulatory bodies, as well as related private party
proceedings, the Special Committee investigation and the Company’s ongoing
response thereto); (vi) the Optionee has such knowledge and experience in
financial and business matters in order to evaluate the merits and risks of
investment in the Option and to make an informed investment decision with
respect to the Option; (vii) the Optionee is an “accredited investor” as defined
in Regulation D promulgated under the 1933 Act; and (viii) the Optionee can bear
a complete loss of the value of the Option and is able to bear the economic
risks of holding the Option for an indefinite period.  The Optionee
also understands that neither the Option nor the Shares to be received as a
result of the exercise of the Option have been registered under the 1933 Act or
any applicable state securities laws and regulations and that the Option cannot
be exercised until the Company is again current in its periodic report filings
with the SEC and has filed all periodic reports required to be filed by the
Company within the preceding twelve months.

       

      15.                      Tax
Consequences.  Set forth below is a brief summary as of the
date of this Option of some of the federal tax consequences of exercise of this
Option and disposition of the Shares.  THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.  THE OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING
THIS OPTION OR DISPOSING OF THE SHARES.

       

                 (a)           The
Optionee will not recognize any income on receipt of the Option.

       

                 (b)           The
Optionee will recognize ordinary income at the time he exercises the Option
equal to the amount by which the Fair Market Value of the Shares on the date of
exercise exceeds the Option Price paid for the Shares.  The amount so
recognized is subject to federal withholding and employment taxes if the
Optionee is an employee.

       

                 (c)           The
Optionee’s tax basis for the Shares received as a result of the exercise of the
Option will be equal to the Fair Market Value of those Shares on the date of the
exercise.

       

                 (d)           Upon
the sale of the Shares, the Optionee will recognize a capital gain or loss on
the difference between the amount realized from the sale of the Shares and the
Fair Market Value on the date of exercise.  The gain or loss would be
short- or long-term depending upon whether the Shares were held for at
least one year after the date of exercise of the Option.

       

      16.                      Company Right to Recover
Option Stock or Option Gains. If it
is ever determined by the Board of Directors, in its sole and absolute
discretion, that actions by the Optionee have constituted: (i) wrongdoing that
contributed to (A) any material misstatement or omission from any report or
statement filed by the Company with the SEC or (B) any statement, certification,
cost report, claim for payment, or other filing made under Medicare or
Medicaid that was false, fraudulent, or for an item or service not provided as
claimed; (ii) gross misconduct; (iii) breach of fiduciary duty to the Company or
any Subsidiary; or (iv) fraud, then the
Option shall be immediately forfeited and thereupon the Option shall be cancelled; provided,
further, that if the Option has been exercised prior to the Board of
Director’s determination, the Optionee shall be required to pay
to the Company an amount equal to the difference between the aggregate
value
of the Shares acquired upon such exercise of the Option at the date of the Board
determination and the aggregate exercise price paid by Optionee.  In
addition, the Option and gains resulting from the exercise of the Option, shall
be subject to forfeiture in accordance with the Company’s standard
policies relating to such forfeitures and clawbacks, as such policies are in
effect at the time of grant of the Option.

       

      *  *  *  *  *

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the parties hereto, intending to be legally bound, have
executed this Agreement as of the date first written above.

       

                                                                                 COMPANY:

       

                                                                                 WELLCARE
HEALTH PLANS, INC.

       

                                                                                 By: ______________________________                                                               

                                                                                 Name:
Heath G. Schiesser

                                                                                 Title:
President and Chief Executive Officer

      

      

                 Optionee
acknowledges receipt of a copy of the Plan and represents that he or she is
familiar with the terms and provisions thereof, and hereby accepts this Option
subject to all of the terms and provisions thereof.  Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option, and fully
understands all provisions of the Option.

       

      OPTIONEE:

       

      _________________                                                                           

      Thomas
Tran

      7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00144-of-00352.parquet"}]]