Document:

AMD16GACAID

Back to Form 8-K
Exhibit 10.1

AMENDMENT #16
TO CONTRACT #0654 BETWEEN
THE GEORGIA DEPARTMENT OF COMMUNITY HEALTH 
AND  
WELLCARE OF GEORGIA, INC. 

This Amendment is between the Georgia Department of Community Health (hereinafter referred to as “DCH” or the “Department”) and WellCare of Georgia, Inc.  (hereinafter referred to as “Contractor”) and is made effective on the date DCH receives approval from the Centers for Medicare and Medicaid Services (hereinafter referred to as “CMS”) and the Georgia Department of Administrative Services (“DOAS”), whichever last occurs, as further described herein. Unless expressly modified, deleted, or added in this Amendment #16, the terms and conditions of the original Contract, as previously amended, are expressly incorporated into this Amendment #16 as if completely restated herein.

WHEREAS, DCH and Contractor executed a Contract with an effective date of July 18, 2005, for the provision of services to members of the Georgia Families program; 
    
WHEREAS, DCH and Contractor desire to amend the Contract, pursuant to Section 32.0 Amendment in Writing, to add additional renewal options as further described herein; and

WHEREAS, DCH requests permission from CMS and DOAS to add such additional renewal options;

NOW THEREFORE, for and in consideration of the mutual promises of the parties, the terms, provisions and conditions of this Amendment and other good and valuable consideration, the sufficiency of which is hereby acknowledged, DCH and Contractor hereby agree as follows:
    
		
	I.
	To delete the language in Section 6.0, Term of Contract, in its entirety and replace it with the following language:  

This Contract shall begin on the Effective Date and shall continue until June 30, 2006 unless terminated earlier pursuant to Section 22, Termination of Contract. The parties agree that DCH has ten (10) options to renew this Contract for additional terms up to one (1) State fiscal year, which shall begin on July 1, and end at midnight on June 30 of the following year as follows:
	
			
	Initial Term:
	July 18, 2005 – June 30, 2006

	Renewal Option 1:
	July 1, 2006 – June 30, 2007

	Renewal Option 2:
	July 1, 2007 – June 30, 2008

	Renewal Option 3:
	July 1, 2008 – June 30, 2009

	Renewal Option 4:
	July 1, 2009 – June 30, 2010

	Renewal Option 5:
	July 1, 2010 – June 30, 2011

	Renewal Option 6:
	July 1, 2011 – June 30, 2012

	Renewal Option 7:
	July 1, 2012 – June 30, 2013

	Renewal Option 8:
	July 1, 2013 – June 30, 2014

	Renewal Option 9:
	July 1, 2014 – June 30, 2015

	Renewal Option 10:
	July 1, 2015 – June 30, 2016

    	
			
	Amendment #16
	 
	Page 1 of 15

	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

Pursuant to O.C.G.A. § 50-5-64(a)(2), all renewal options shall be exercisable solely and exclusively by DCH. The terms, conditions and pricing in effect at the time of renewal shall apply for each renewal option term. DCH will send Contractor written notice of its intent to exercise a renewal option under this Contract.  As to each term, the Contract shall be terminated absolutely at the close of the then current state fiscal year without further obligation by DCH. Notwithstanding any language to the contrary, DCH reserves the right to terminate this Contract prior to the close of the fiscal year pursuant to Section 22, Termination of Contract.

		
	II.
	To replace Attachment E, Business Associate Agreement, with the revised version of that agreement that is contained at Exhibit 1 to this Amendment.

		
	III.
	This Amendment is contingent upon receiving approval from both CMS and DOAS and shall be effective once written notices of such approvals are received by DCH.  DCH shall notify Contractor in writing upon receipt of responses from CMS and DOAS.  In the event approval is denied by either CMS or DOAS, this Amendment shall be null and void and have no effect upon the Contract.

		
	IV.
	DCH and Contractor agree that they have assumed an obligation to perform the covenants, agreements, duties, and obligations of the Contract, as modified and amended herein, and agree to abide by all the provisions, terms and conditions contained in the Contract as modified and amended.   

		
	V.
	This Amendment shall be binding and inure to the benefit of the Parties hereto, their heirs, representatives, successors, and assigns.  In the event of a conflict between the provisions of this Amendment and the Contract or any previous amendments, the provisions of this Amendment shall control and govern.  Additionally, in the event of a conflict between this Amendment and any exhibit or attachment incorporated into this Amendment, the provisions of this Amendment shall control and govern.  

		
	VI.
	It is understood by the Parties hereto that, if any part, term, or provision of this Amendment or this Amendment in its entirety is held to be illegal or in conflict with any law of this State, then DCH, at its sole option, may enforce the remaining unaffected portions or provisions of this Amendment or of the Contract and the rights and obligations of the Parties shall be construed and enforced as if the Contract or Amendment did not contain the particular part, term or provision held to be invalid. 

		
	VII.
	This Amendment shall be construed in accordance with the laws of the State of Georgia.

		
	VIII.
	All other terms and conditions contained in the Contract and any amendment thereto, not amended by this Amendment, shall remain in full force and effect.

		
	IX.
	Each Party has had the opportunity to be represented by counsel of its choice in negotiating this Amendment.  This Amendment shall therefore be deemed to have been negotiated and prepared at the joint request, direction, and consideration of the Parties, at arms’ length, with the advice and participation of counsel, and will be interpreted in accordance with its terms without favor to any Party. 

    	
			
	Amendment #16
	 
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

		
	X.
	This amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto were upon the same instrument Any signature below that is transmitted by facsimile or other electronic means shall be binding and effective as the original. 

Signatures on the following page

    	
			
	Amendment #16
	 
	Page 3 of 15

	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

SIGNATURE PAGE

IN WITNESS WHEREOF, DCH and Contractor, through their authorized officers and agents, have caused this Amendment to be executed on their behalf as of the date indicated.

GEORGIA DEPARTMENT OF COMMUNITY HEALTH

	
			
	/s/ Clyde L. Reese, III
	 
	March 5, 2014

	Clyde L. Reese III, Esq., Commissioner
	 
	Date

	 
	 
	 

	 
	 
	 

	/s/ Jerry L. Dubberly
	 
	3/4/14

	Jerry Dubberly, Chief
	 
	Date

	Division of Medical Assistance Plans

	 
	 

WELLCARE OF GEORGIA, INC. 

	
				
	BY:
	/s/ Roman T. Kulich
	 
	2/27/14

	 
	*SIGNATURE
	 
	Date

	 
	 
	 
	 

	 
	Roman T. Kulich
	 
	 

	 
	Please Print/Type Name Here
	 
	 

	 
	 
	 
	 

	 
	TITLE President                                         
	 
	 

	 
	 
	 
	 

* Must be President, Vice President, CEO or Other Officer Authorized by Corporate Resolution to Execute on Behalf of and Bind the Entity to a Contract

    	
			
	Amendment #16
	 
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

EXHIBIT 1

ATTACHMENT E

BUSINESS ASSOCIATE AGREEMENT (REVISED)

This Business Associate Agreement (hereinafter referred to as “Agreement”), effective this 8th day of April, 2014 (hereinafter the “Effective Date”) is made and entered into by and between the Georgia Department of Community Health (hereinafter referred to as “DCH”) and WellCare of Georgia, Inc. (hereinafter referred to as “Contractor”) as Attachment E to Contract No. 0654 between DCH and Contractor dated July 18, 2005  (hereinafter referred to as the “Contract”).

WHEREAS, DCH is a hybrid entity, as defined in the Health Insurance Portability and Accountability Act of 1996, Public Law 104-191 (“HIPAA”), and is required by HIPAA to enter into a Business Associate Agreement with certain entities that provide functions, activities, or services on behalf of or in support of health care components of DCH, which functions, activities or services involve the use of Protected Health Information as defined by HIPAA (“PHI”); 

WHEREAS, Contractor, under the Contract provides functions, activities, or services involving the use of PHI;

NOW, THEREFORE, for and in consideration of the mutual promises, covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, DCH and Contractor (each individually a “Party” and collectively the “Parties”) hereby agree as follows:

		
	1.
	Terms used but not otherwise defined in this Agreement shall have the same meaning as those terms have in HIPAA and in Title XIII of the American Recovery and Reinvestment Act of 2009 (the Health Information Technology for Economic and Clinical Health Act, or “HITECH”), and in the implementing regulations of HIPAA and HITECH.  Implementing regulations are published as the Standards for Privacy and Security of Individually Identifiable Health Information in 45 C.F.R. Parts 160 and 164. Together, HIPAA, HITECH, and their implementing regulations are referred to in this Agreement as the “Privacy Rule and Security Rule.”  If the meaning of any defined term is changed by law or regulation, then this Agreement will be automatically modified to conform to such change. The term “NIST Baseline Controls” means the baseline controls set forth in National Institute of Standards and Technology (NIST) SP 800-53 established for “moderate impact” information.  

		
	2.
	Except as limited in this Agreement, Contractor may use or disclose PHI only to the extent necessary to meet its responsibilities as set forth in the Contract provided that such use or disclosure would not violate the Privacy Rule or the Security Rule, if done by DCH. Furthermore, except as otherwise limited in this Agreement, Contractor may:

		
	A.
	Use PHI for internal quality control and auditing purposes.

		
	B.
	Use or disclose PHI as Required by Law.

		
	C.
	After providing written notification to DCH’s Office of Inspector General, use PHI to make a report to a health oversight agency authorized by law to investigate DCH (or otherwise 

    	
			
	Amendment #16
	 
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

oversee the conduct or conditions of the DCH) about any DCH conduct that Contractor in good faith believes to be unlawful as permitted by 45 C.F.R. 164.502(j)(1).  Notwithstanding the foregoing, Contractor shall not be required to provide prior written notice to DCH’s Office of Inspector General if Contractor is provided written instruction otherwise by the health oversight agency authorized by law to investigate DCH.  
		
	D.
	Use and disclose PHI to consult with an attorney for purposes of determining Contractor’s legal options with regard to reporting conduct by DCH that Contractor in good faith believes to be unlawful, as permitted by 45 C.F.R. 164.502(j)(1).

		
	3.
	Contractor represents and warrants that only individuals designated by title or name on Attachments E-1 and E-2 will request PHI from DCH or access DCH PHI in order to perform the services of the Contract, and these individuals will only request the minimum necessary amount of information necessary in order to perform the services.

		
	4.
	Contractor represents and warrants that the individuals listed by title on Attachment E-1 require access to PHI in order to perform services under the Contract.  Contractor agrees to send updates to Attachment E-1 whenever necessary.  Uses or disclosures of PHI by individuals not described on Attachment E-1 are impermissible.  

		
	5.
	Contractor represents and warrants that the individuals listed by name on Attachment E-2 require access to a DCH information system in order to perform services under the Contract.  Contractor agrees to notify the Project Leader and the Access Control Coordinator named on Attachment E-2 immediately, but at least within 24 hours, of any change in the need for DCH information system access by any individual listed on Attachment E-2.  Any failure to report a change within the 24 hour time period will be considered a security incident and may be reported to Contractor’s Privacy and Security Officer, Information Security Officer and the Georgia Technology Authority for proper handling and sanctions.  

		
	6.
	Contractor agrees that it is a Business Associate to DCH as a result of the Contract, and represents and warrants to DCH that it complies with the Privacy Rule and Security Rule requirements that apply to Business Associates and will continue to comply with these requirements. Contractor further represents and warrants to DCH that it maintains and follows written policies and procedures to achieve and maintain compliance with the HIPAA Privacy and Security Rules that apply to Business Associates, including, but not limited to policies and procedures addressing HIPAA’s requirements that Business Associates use, request and disclose only the minimum amount of PHI necessary to perform their services, and updates such policies and procedures as necessary in order to comply with the HIPAA Privacy and Security Rules that apply to Business Associates and will continue to maintain and update such policies and procedures. These policies and procedures, and evidence of their implementation, shall be provided to DCH upon request.  

		
	7.
	The Parties agree that a copy of all communications related to compliance with this Agreement will be forwarded to the following Privacy and Security Contacts:

    	
			
	Amendment #16
	 
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

	
					
	A.
	At DCH:
	Kori Woodward-Dickens
	 
	 

	 
	 
	HIPAA Privacy and Security Specialist, Office of General Counsel

	 
	 
	hipaa@dch.ga.gov
	 
	 

	 
	 
	kdickens@dch.ga.gov
	 
	 

	 
	 
	404-651-5016
	 
	 

	 
	 
	 
	 
	 

	 
	 
	Sherman Harris
	 
	 

	 
	 
	Agency Information Security Officer

	 
	 
	sheharris@dch.ga.gov
	 
	 

	 
	 
	404-656-9653
	 
	 

	 
	 
	 
	 
	 

	 
	At Contractor:
	Michael Yount
	 
	 

	 
	 
	Chief Privacy/Security Officer
	 

	 
	 
	Michael.Yount@wellcare.com
	 

	 
	 
	813-206-5282
	 
	 

	 
	 
	 
	 
	 

Contractor further agrees that it will:

		
	A.
	Not request, create, receive, use or disclose PHI other than as permitted or required by this Agreement, the Contract, or as required by law.

		
	B.
	Establish, maintain and use appropriate administrative, physical and technical safeguards to prevent use or disclosure of the PHI other than as provided for by this Agreement or the Contract. Such safeguards must include an Information Security Program which consists of internal policies, standards and procedures built on the HIPAA Security Rules and the CMS HIPAA Security Series, unless DCH has agreed in writing that the control is not appropriate or applicable. 

		
	C.
	Implement and use administrative, physical and technical safeguards that reasonably and appropriately protect the confidentiality, integrity and availability of the electronic protected health information that it creates, receives, maintains, or transmits on behalf of DCH.  Such safeguards must include an Information Security Program which consists of internal policies, standards and procedures built on the HIPAA Security Rules and the CMS HIPAA Security Series, unless DCH has agreed in writing that the control is not appropriate or applicable.

		
	D.
	Implement the HITRUST Common Security Framework (CSF) by first quarter 2015;

		
	E.
	In addition to the safeguards described above, Contractor shall include access controls that restrict access to PHI to the individuals listed on E-1 and E-2, as amended from time to time, shall implement encryption of all electronic PHI during transmission and will use the following safeguards to protect PHI at rest:

		
	(1)
	Perimeter and multi-layer DMZ firewalls;

		
	(2)
	Intrusion Prevention Systems (IPS);

		
	(3)
	Data Loss Prevention (DLS) tools for Network and End-Point;

    	
			
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	(4)
	End-Point Protection (this includes host firewall, host IPS, Anti-virus and Malware protection, and full disk encryption for laptops)

		
	(5)
	Network Access Controls (NAC)

		
	(6)
	Web and Spam Filtering

		
	(7)
	Anti-virus/Malware Protection (email)

		
	(8)
	Database encryption

		
	(9)
	Centralized Logging and Monitoring Solution

		
	(10)
	Access Control Lists (this includes the following levels (1) File, Folder Share Level, (2) Database Level, and (3) Application Level)

		
	F.
	Upon DCH’s reasonable request, but no more frequently than annually, obtain an independent assessment of Contractor’s implementation of the HITRUST Common Security Framework (CSF) and the additional safeguards required by this Agreement with respect to DCH PHI, provide the results of such assessments to DCH, and ensure that corrective actions identified during the independent assessment are implemented.

		
	G.
	Mitigate, to the extent practicable, any harmful effect that may be known to Contractor from a use or disclosure of PHI by Contractor in violation of the requirements of this Agreement, the Contract or applicable regulations.  Contractor shall bear the costs of mitigation, which shall include the reasonable costs of credit monitoring and may include credit restoration, if applicable, when the use or disclosure results in exposure of information commonly used in identity theft.

		
	H.
	Maintain a business associate agreement with its agents or subcontractors to whom it provides PHI, in accordance with which such agents or subcontractors are contractually obligated to comply with at least the same obligations that apply to Contractor under this Agreement, and ensure that its agents or subcontractors comply with the conditions, restrictions, prohibitions and other limitations regarding the request for, creation, receipt, use or disclosure of PHI, that are applicable to Contractor under this Agreement and the Contract.

		
	I.
	Report to DCH any use or disclosure of PHI that is not provided for by this Agreement or the Contract of which it becomes aware. 

		
	J.
	Make an initial report to the DCH in writing in such form as DCH may require within three (3) business days after Contractor (or any subcontractor) becomes aware of the unauthorized use or disclosure.  This report will require Contractor to identify the following:

		
	i.
	The nature of the impermissible use or disclosure (the “incident”), which will include a brief description of what happened, including the date it occurred and the date Contractor discovered the incident; 

		
	ii.
	The Protected Health Information involved in the impermissible use or disclosure, such as whether the full name, social security number, date of birth, home address, account number or other information were involved);

    	
			
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	iii.
	Who (by title, access permission level and employer) made the impermissible use or disclosure and who received the Protected Health Information as a result;

		
	iv.
	What corrective or investigational action Contractor took or will take to prevent further impermissible uses or disclosures, to mitigate harmful effects, and to prevent against any further incidents;

		
	v.
	What steps individuals who may have been harmed by the incident might take to protect themselves; and

		
	vi.
	Whether Contractor believes that the impermissible use or disclosure constitutes a Breach of Unsecured Protected Health Information.

Upon request by the DCH HIPAA Privacy and Security Officer or the DCH Information Security Officer, Contractor agrees to make a complete report to the DCH in writing within two weeks of the initial report that includes a root cause analysis and a proposed corrective action plan.  Upon approval of a corrective action plan by the DCH, Contractor agrees to implement the corrective action plan and provide proof of implementation to the DCH within ten (10) business days of DCH’s request for proof of implementation.  
		
	K.
	Report to the DCH HIPAA Privacy and Security Officer and the DCH Agency Information Security Officer any successful unauthorized access, modification, or destruction of PHI or interference with system operations in Contractor’s information systems as soon as practicable but in no event later than three (3) business days of discovery.  If such a security incident resulted in a use or disclosure of PHI not permitted by this Agreement, Contractor shall also make a report of the impermissible use or disclosure as described above.  Contractor agrees to make a complete report to the DCH in writing within two weeks of the initial report that includes a root cause analysis and, if appropriate, a proposed corrective action plan designed to protect PHI from similar security incidents in the future.  Upon DCH’s approval of Contractor’s corrective action plan, Contractor agrees to implement the corrective action plan and provide proof of implementation to the DCH.  

		
	L.
	Upon DCH’s reasonable request and not more frequently than once per quarter, report to the DCH Agency Information Security Officer any (A) attempted (but unsuccessful) unauthorized access, use, disclosure, modification, or destruction of PHI or (B) attempted (but unsuccessful) interference with system operations in Contractor’s information systems.  Contractor does not need to report trivial incidents that occur on a daily basis, such as scans, “pings,” or other routine attempts that do not penetrate computer networks or servers or result in interference with system operations.

		
	M.
	Cooperate with DCH and provide assistance necessary for DCH to determine whether a Breach of Unsecured Protected Health Information has occurred, and whether notification of the Breach is legally required or otherwise appropriate. Contractor agrees to assist DCH in its efforts to comply with the HIPAA Privacy and Security Rules, as amended from time to time.  To that end, the Contractor will abide by any requirements mandated by the HIPAA Privacy and Security Rules or any other applicable laws in the course of this Contract.  Contractor warrants that it will cooperate with DCH, including cooperation with DCH privacy officials and other compliance officers required by the HIPAA Privacy and Security Rules 

    	
			
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

and all implementing regulations, in the course of performance of this Contract so that both parties will be in compliance with HIPAA. 
		
	N.
	If DCH determines that a Breach of Unsecured Protected Health Information has occurred as a result of Contractor’s impermissible use or disclosure of PHI or failure to comply with obligations set forth in this Agreement or in the Privacy or Security Rules, provide all notifications to Individuals, HHS and/or the media, on behalf of DCH, after the notifications are approved by the DCH.  Contractor shall provide these notifications in accordance with the security breach notification requirements set forth in 42 U.S.C. §17932 and 45 C.F.R. Parts 160 & 164 subparts A, D & E as of their respective Compliance Dates, and shall pay for the reasonable and actual costs associated with such notifications.  

In the event that DCH determines a Breach has occurred, without unreasonable delay, and in any event no later than thirty (30) calendar days after Discovery, Contractor shall provide the DCH HIPAA Privacy and Security Officer a list of Individuals and a copy of the template notification letter to be sent to Individuals.  Contractor shall begin the notification process only after obtaining DCH’s approval of the template notification letter. Within ten (10) business days of receipt of the template notification letter, DCH shall either: send notice of approval to Contractor or send notice of modifications that must be made to the template notification letter. 
		
	O.
	Make any amendment(s) to PHI in a Designated Record Set that DCH directs or agrees to pursuant to 45 CFR 164.526 within five (5) business days after request of DCH. Contractor also agrees to provide DCH with written confirmation of the amendment in such format and within such time as DCH may require. 

		
	P.
	In order to meet the requirements under 45 CFR 164.524, regarding an individual’s right of access, Contractor shall, within five (5) business days following DCH’s request, or as otherwise required by state or federal law or regulation, or by another time as may be agreed upon in writing by the DCH, provide DCH access to the PHI in an individual’s Designated Record Set.  However, if requested by DCH, Contractor shall provide access to the PHI in a Designated Record Set directly to the individual to whom such information relates.  

		
	Q.
	Give the Secretary of the U.S. Department of Health and Human Services (the “Secretary”) or the Secretary’s designees access to Contractor’s books and records and policies, practices or procedures relating to the use and disclosure of PHI for or on behalf of DCH within five (5) business days after the Secretary or the Secretary’s designees request such access or otherwise as the Secretary or the Secretary’s designees may require. Contractor also agrees to make such information available for review, inspection and copying by the Secretary or the Secretary’s designees during normal business hours at the location or locations where such information is maintained or to otherwise provide such information to the Secretary or the Secretary’s designees in such form, format or manner as the Secretary or the Secretary’s designees may require.

		
	R.
	Document all disclosures of PHI and information related to such disclosures as would be required for DCH to respond to a request by an Individual or by the Secretary for an accounting of disclosures of PHI in accordance with 45 C.F.R. § 164.528.  By no later than five (5) business days of receipt of a written request from DCH, or as otherwise required by state or federal law or regulation, or by another time as may be agreed upon in writing by the DCH 

    	
			
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HIPAA Privacy and Security Officer, Contractor shall provide an accounting of disclosures of PHI regarding an Individual to DCH.  If requested by DCH, Contractor shall provide an accounting of disclosures directly to the individual.  Contractor shall maintain a record of any accounting made directly to an individual at the individual’s request and shall provide such record to the DCH upon request.
		
	S.
	In addition to any indemnification provisions in the Contract, indemnify the DCH from any liability resulting from any violation of the HIPAA Privacy and Security Rules or Breach that arises from the conduct or omission of Contractor or its employee(s), agent(s) or subcontractor(s).  Such liability will include, but not be limited to, all actual and direct costs and/or losses, civil penalties and reasonable attorneys’ fees imposed on DCH. 

		
	T.
	For any requirements in this Agreement that include deadlines, pay performance guarantee payments of $300.00 per calendar day, starting with the day after the deadline and continuing until Contractor complies with the requirement.  Contractor shall ensure that its agreements with subcontractors enable Contractor to meet these deadlines.

		
	8.
	DCH agrees that it will:

		
	A.
	Notify Contractor of any new limitation in the applicable Notice of Privacy Practices in accordance with the provisions of the Privacy Rule if, and to the extent that, DCH determines in the exercise of its sole discretion that such limitation will affect Contractor’s use or disclosure of PHI. 

		
	B.
	Notify Contractor of any change in, or revocation of, authorization by an Individual for DCH to use or disclose PHI to the extent that DCH determines in the exercise of its sole discretion that such change or revocation will affect Contractor’s use or disclosure of PHI. 

		
	C.
	Notify Contractor of any restriction regarding its use or disclosure of PHI that DCH has agreed to in accordance with the Privacy Rule if, and to the extent that, DCH determines in the exercise of its sole discretion that such restriction will affect Contractor’s use or disclosure of PHI.

		
	D.
	Prior to agreeing to any changes in or revocation of permission by an Individual, or any restriction, to use or disclose PHI, DCH agrees to contact Contractor to determine feasibility of compliance.  DCH agrees to assume all costs incurred by Contractor in compliance with such special requests.

		
	9.
	The Term of this Agreement shall be effective on the Effective Date and shall terminate when all of the PHI provided by DCH to Contractor, or created or received by Contractor on behalf of DCH, is destroyed or returned to DCH, or, if it is infeasible to return or destroy PHI, protections are extended to such information, in accordance with the termination provisions in this section. 

		
	A.
	Termination for Cause.   Upon DCH’s knowledge of a material breach of this Agreement by Contractor, DCH shall either:

		
	i.
	Provide an opportunity for Contractor to cure the breach of Agreement within a reasonable period of time, which shall be within thirty (30) calendar days after receiving written notification of the breach by DCH; 

    	
			
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	ii.
	If Contractor fails to cure the breach of Agreement, terminate the Contract upon thirty (30) calendar days notice; or 

		
	iii.
	If neither termination nor cure is feasible, DCH shall report the breach of Agreement to the Secretary of the Department of Health and Human Services.

		
	B.
	Effect of Termination.  

		
	i.
	Upon termination of this Agreement, for any reason, DCH and Contractor shall determine whether return of PHI is feasible. If return of the PHI is not feasible, Contractor agrees to continue to extend the protections of this Agreement to the PHI for so long as the Contractor maintains the PHI and shall limit the use and disclosure of the PHI to those purposes that made return or destruction of the PHI infeasible. If at any time it becomes feasible to return or destroy any such PHI maintained pursuant to this paragraph, Contractor must notify DCH and obtain instructions from DCH for either the return or destruction of the PHI.  

		
	ii.
	Contractor agrees that it will limit its further use or disclosure of PHI only to those purposes DCH may, in the exercise of its sole discretion, deem to be in the public interest or necessary for the protection of such PHI, and will take such additional actions as DCH may require for the protection of patient privacy and the safeguarding, security and protection of such PHI.  

		
	iii.
	This Effect of Termination section survives the termination of the Agreement.

		
	10.
	Interpretation.  Any ambiguity in this Agreement shall be resolved to permit DCH and Contractor to comply with applicable laws, rules and regulations, the HIPAA Privacy Rule, the HIPAA Security Rule and any rules, regulations, requirements, rulings, interpretations, procedures or other actions related thereto that are promulgated, issued or taken by or on behalf of the Secretary; provided that  applicable laws, rules and regulations and the laws of the State of Georgia shall supersede the Privacy Rule if, and to the extent that, they impose additional requirements, have requirements that are more stringent than or have been interpreted to provide greater protection of patient privacy or the security or safeguarding of PHI than those of  the HIPAA Privacy Rule.

		
	11.
	No Third Party Beneficiaries. Nothing express or implied in this Agreement is intended to confer, nor shall anything herein confer, upon any person other than the Parties and the respective successors or assigns of the Parties, any rights, remedies, obligations or liabilities whatsoever.

		
	12.
	All other terms and conditions contained in the Contract and any amendment thereto, not amended by this Agreement, shall remain in full force and effect.

(Signatures on following page)

    	
			
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

IN WITNESS WHEREOF, Contractor, through its authorized officer and agent, has caused this Agreement to be executed on its behalf as of the date indicated.

WELLCARE OF GEORGIA, INC. 

	
				
	BY:
	/s/ Roman T. Kulich
	 
	2/27/14

	 
	SIGNATURE
	 
	Date

	 
	 
	 
	 

	 
	Roman T. Kulich
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	President                                                     
	 
	 

	 
	TITLE*
	 
	 

* Must be President, Vice President, CEO or Other Officer Authorized to Execute on Behalf of and Bind the Entity to a Contract

    	
			
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	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

ATTACHMENT E-1

List of Individuals Permitted to Receive, Use and Disclose DCH PHI

The following Position Titles, as employees and/or representatives of Contractor, need access to DCH Protected Health Information in order for Contractor to perform the services described in the Contract:

		
	•
	Annette Zerbe – Regulatory Affairs

		
	•
	Joshua Luft – Reporting & Analytics

		
	•
	James Johnson – IT & Operations

		
	•
	Franklin Moultrie – Project Analysis

		
	•
	Avis Boswell – Project Administration 

Transfers of PHI must comply with DCH Policy and Procedure 419: Appropriate Use of Information Technology Resources.
Approved methods of secure delivery of PHI between Contractor and DCH:
		
	•
	Secure FTP file transfer (preferred)

		
	•
	Encrypted email or email sent through “secure tunnel” approved by DCH Information Security Officer

		
	•
	Email of encrypted document (password must be sent by telephone only)

		
	•
	Encrypted portable media device and tracked delivery method

Contractor must update this list as needed and provide the updated form to DCH.  Use of DCH Protected Health Information by individuals who are not described on this Attachment E-1, as amended from time to time, is impermissible and a violation of the Agreement. Contractor must update this Attachment E-1 as needed and provide the updated form to DCH.  

	
				
	DCH Project Leader Contact Information:
	Lynnette R. Rhodes

	 
	 
	Deputy Director, Medicaid Operations

	 
	 
	Georgia Department of Community Health

	 
	 
	2 Peachtree St., NW – 36th Floor

	 
	 
	Atlanta, Georgia 30303

	 
	 
	(404) 656-7513

    	
			
	Amendment #16
	 
	Page 14 of 15

	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.
	 
	 

ATTACHMENT E-2

Part 1:  
Please initial beside the correct option.  Please select only one option.

		
	_________
	Contractor DOES NOT need any user accounts to access DCH Information Systems.  Do not complete Part 2 of this form.

		
	____X____
	Contractor DOES need user accounts to access DCH Information Systems.  Please complete Part 2 of this form.

Part 2:  
Please complete the table below if you indicated that Contractor DOES need any user accounts to access DCH Information Systems.  Please attach additional pages if needed.

List of Individuals Authorized to Access a DCH Information System Containing PHI

The following individuals, as employees and/or representatives of Contractor, need access to DCH Information Systems containing DCH Protected Health Information in order for Contractor to perform the services described in the Contract:

	
				
	Full Name
	Employer
	DCH Information System
	Type of Access 
(Read only? Write?)

	Separate Attachment
	 
	 
	 

	 
	 
	 
	 

	

	 
	 
	 

The DCH Project Leader must submit a completed DCH Network Access Request Form for each individual listed above.  Access will be granted and changed in accordance with DCH Policy and Procedure 435:  Managing Authorization, Access and Control of Information Systems.   

Contractor must notify the Project Leader identified in the Contract and the DCH Access Control Coordinator (clewis@dch.ga.gov and helpdesk@dch.ga.gov) immediately, but at least within 24 hours, after any individual on this list no longer needs the level of access described.  Failure to provide this notification on time is a violation of the Agreement and will be reported as a security incident.

Contractor must update this Attachment E-2 as needed and provide the updated form to DCH.  
	
				
	DCH Project Leader Contact Information:
	Lynnette R. Rhodes

	 
	 
	Deputy Director, Medicaid Operations

	 
	 
	Georgia Department of Community Health

	 
	 
	2 Peachtree St., NW – 36th Floor

	 
	 
	Atlanta, Georgia 30303

	 
	 
	(404) 656-7513

    	
			
	Amendment #16
	 
	Page 15 of 15

	Contract #0654
	 
	 

	WELLCARE OF GEORGIA, INC.ambt_ex1030.htm

EXHIBIT 10.30

 

SEPARATION AGREEMENT AND FULL RELEASE OF CLAIMS

 

This Agreement and Full Release of Claims (the “Agreement”) is made and entered into as of the 27 day of November, 2013, between Stacey Fitzgerald (“you”) and Ambient Corporation (“Ambient” or “the Company”).  In consideration for good and valuable consideration, the sufficiency of which is hereby acknowledged, and the parties’ execution of this Agreement and the promises and covenants contained herein, you and Ambient hereby agree as follows:

 

1. You resigned from Ambient effective as of November 5, 2013 (the “Termination Date”).  You have been paid your regular salary through the Termination Date, less applicable statutory deductions.  You have been paid for any accrued but unused vacation days.  Your group health insurance provided by Ambient will continue until and including November 30, 2013.  After that time, your benefits will cease, unless you reinstate your health benefits pursuant to COBRA.  You have been notified about your COBRA rights and obligations under separate cover.

 

2. Consideration: In consideration of your execution of this Agreement without revocation in accordance with Paragraph 17 below, and your fulfillment of the promises made herein, you will receive the following benefits:

 

a. Four (4) months of severance payable in accordance with the Company’s regular payroll (“Severance Period”).  Such payments will begin on the first regular pay day after expiration of the Revocation Period without revocation.  The first such payment shall be in an amount equal to the salary you would have earned between November 6, 2013 and the payment date.  Severance payments will be based on your current salary of $200,000, less all applicable statutory deductions and withholdings.

 

b. During the Severance Period -- if you elect COBRA coverage --  the Company will continue to pay towards such coverage the same percentage of your COBRA insurance premiums that it was paying towards your medical insurance premiums as of your Termination Date.

 

c. Other than as set forth in this Paragraph 2, you will not receive -- and you acknowledge that you are not entitled to receive -- any additional payments or benefits of any kind from Ambient or any Releasee (as defined in Paragraph 5 below), and you agree that such payments fully satisfy any and all obligations that Ambient or any Releasee has to you.  You acknowledge that you would not be entitled to receive the payments and benefits specified in this Paragraph 2 absent your execution of this Agreement and the fulfillment of the promises made herein.  You acknowledge that vesting of any and all stock options granted to you during your employment ceased on your Termination Date.

 

3. Expense Reimbursement:  The Company agrees to reimburse you for any reasonable business expenses you incur during your employment (subject to submission of appropriate substantiation in accordance with Company procedures).

 

4. References:  You shall direct all requests for references from any potential future employer or other third parties to Rebecca Blake at Insight Performance, who shall provide dates of employment and positions held and will tell the person seeking the reference that company policy prohibits the sharing of any additional information.  In the event Rebecca Blake no longer works at Insight Performance and/or is no longer assigned to assist the Company, you shall direct all such requests to Abraham Kimelman, who shall provide dates of employment and positions held and will tell the person seeking the reference that company policy prohibits the sharing of any additional information.

 

5. Release by you: In consideration of Ambient’s execution of this Agreement and of the payments and benefits provided for above, which you acknowledge is adequate consideration, on behalf of yourself and your representatives, heirs, executors, administrators, agents, successors and assigns, you hereby irrevocably and unconditionally waive, release, and forever discharge and covenant not to sue Ambient its respective past and present parents, subsidiaries, affiliates, and divisions, and each of their respective past and present officers, directors, members, managers, partners, stockholders, agents, employees, representatives, predecessors, successors and assigns, in each of their individual, corporate, and other capacities (collectively with Ambient, the “Releasees”), from any and all claims, liabilities and causes of action of any kind which you ever had, now have or hereafter may have against Ambient or any Releasee by reason of any matter, cause or thing whatsoever occurring on or at any time prior to the full execution of this Agreement, whether known or unknown to you and including, but not limited to, all claims arising out of any matters or things relating to any services you provided to any Releasee, based upon any contract, whether express or implied, oral or written, tort or public policy, claim for costs, fees or expenses, including but not limited to, your employment contract with the Company, or any allegation of illegal employment practices, defamation or breach of any federal, state or local fair employment practice, equal opportunity law or wage and hour law, as amended, including but not limited to the Age Discrimination of Employment Act of 1967; National Labor Relations Act; Title VII of the Civil Rights Act of 1964; Sections 1981 through 1988 of Title 42 of the United States Code; the Employee Retirement Income Security Act of 1974; the Immigration Reform and Control Act; the Americans with Disabilities Act of 1990; the Family and Medical Leave Act of 1993; the Fair Labor Standards Act; the Occupational Safety and Health Act; the Fair Credit Reporting Act; the Consolidated Omnibus Budget Reconciliation Act; and The Sarbanes Oxley Act.

 

  

1

  

Notwithstanding the foregoing, your release of the Company does not include and will not preclude: (a) non-termination related claims under the Massachusetts Workers Compensation Act (M.G.L. c. 152) or any disability insurance policy/plan; (b) rights to vested benefits under any applicable retirement and/or pension plans; (c) non-termination related claims under the Employee Retirement Income Security Act (29 U.S.C. § 1001 et seq.); (d) rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”); (e) claims for unemployment compensation; (f) any rights you may have to obtain contribution as permitted by law in the event of entry of judgment against the Company as a result of any act or failure to act for which you and the Company are held jointly liable; (g) any rights you may have pursuant to the Company’s insurance coverage for directors and officers; (h) any rights to you may have for indemnification and/or defense pursuant to the Company’s By-Laws, insurance policies, and/or applicable law; and/or (i) you from filing a charge with the Equal Employment Opportunity Commission concerning claims of discrimination, although you specifically waive your right to recover any damages or other relief in any claim or suit brought by or through the Equal Employment Opportunity Commission or any other state or local agency on your behalf under Title VII of the Civil Rights Act of 1964, as amended, the American with Disabilities Act, the Age Discrimination in Employment Act, the Connecticut Fair Employment Practices Act, or any other federal or state discrimination law, except where prohibited by law.  You covenant and agree that you will not assert any claim or initiate any legal or other action against any Releasee with respect to any matter covered by the foregoing release. You acknowledge and agree that if you or any of your representatives, heirs, executors or administrators should hereafter make against any Releasee any claim or demand or commence or threaten to commence any action, claim or proceeding otherwise prohibited by this Agreement, this Section may be raised as a complete bar to any such action, claim or proceeding.  Unless prohibited by law, the applicable Releasee may recover from you all costs incurred in connection with such action, claim or proceeding, including attorneys’ fees if it is determined that any such action, claim or proceedings is prohibited by this Agreement.  Nothing herein is intended to prevent you from enforcing this Agreement.

 

You acknowledge that certain states provide that a general release of claims does not extend to claims which the person executing the release does not know or suspect to exist in his/her favor at the time of executing the release which, if known, may have materially affected his/her entering into this Agreement.  Being aware that such statutory protection may be available to you, you expressly, voluntarily and knowingly waive any arguable benefit or protection from any such statute in executing this Agreement, known or unknown.

 

6. Release by the Company:  In consideration of your execution of this Agreement, which the Company acknowledges is adequate consideration, on behalf of itself, its past and present parents, subsidiaries, affiliates, and divisions, and its successors, and assigns, the Company hereby irrevocably and unconditionally waives, releases, and forever discharges and covenants not to sue you, from any and all claims, liabilities and causes of action of any kind which it ever had, now has or hereafter may have against you by reason of any matter, cause or thing whatsoever occurring on or at any time prior to the full execution of this Agreement, whether known or unknown to the Company.

 

The Company covenants and agrees that it and its past and present parents, subsidiaries, affiliates, and divisions and its successors and assigns will not assert any claim or initiate any legal or other action against you with respect to any matter covered by the foregoing release. The Company acknowledges and agrees that if it or its past and present parents, subsidiaries, divisions successors or its successors, affiliates and/or assigns should hereafter make against you any claim or demand or commence or threaten to commence any action, claim or proceeding otherwise prohibited by this Agreement, this Section may be raised as a complete bar to any such action, claim or proceeding.  Unless prohibited by law, you may recover from the Company all costs incurred in connection with such action, claim or proceeding, including attorneys’ fees if it is determined that any such action, claim or proceedings is prohibited by this Agreement.

 

Confidentiality and Non-Competition Agreement.  You have previously executed the Employee Confidentiality and Non-Competition Agreement annexed hereto as Exhibit A (“NDA”), which shall be incorporated by reference into this Agreement and made a part hereof.  All references herein to this Agreement shall be construed to include Exhibit A.  You acknowledge and reaffirm your continuing obligations thereunder.  You understand that continued compliance with the NDA is a condition to your receipt of payments and benefits under this Agreement.  This Agreement, its terms and the negotiations leading up to the execution of this Agreement are confidential, except as required by law,  and you agree not to disclose any such information to any third party except in strict confidence to your accountant, attorney, spouse, or significant other, or as required by law.  To the extent that you divulge the terms of this Agreement to your accountant, attorney, spouse or significant other, you will advise them that they must not divulge the terms of this Agreement. Moreover, you agree that neither you nor your attorneys will file this document with the Court or make it public in any way.  If you are asked about the facts, amount and/or terms of this Agreement, you will state: “my case has been resolved and I cannot comment further on the matter” and will give no additional information.  This paragraph does not preclude you from providing information or testimony or disclosing this Agreement pursuant to compulsory process of law.  You will give the Company prompt notice upon your receipt of notice of such process so that the Company may seek an appropriate protective order.  Notwithstanding the terms of this provision, the tax treatment and tax structure of the terms of this Agreement may be reported and disclosed in a manner consistent with all federal, state and local tax laws.

 

7. Section 409A.  All benefits hereunder are intended to be paid solely on account of a  separation pay plan as specified in this Agreement due to your separation from service within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Code”), and to be excludible from the requirements of Code Section 409A, either as separation pay amounts or as a short-term deferral amounts (e.g., amounts payable under the schedule prior to March 15 of the calendar year following the calendar year of your separation from service) to the maximum possible extent.  Any reimbursements or in-kind benefits provided during your employment or under this Agreement shall be made or provided to you as part of said separation pay plan and shall be excludible from the requirements of Section 409A of the Code pursuant to the exception from 409A of the Code for such reimbursement and in-kind benefits that are furnished as part of said separation pay plan, and in all events such reimbursement or benefit and the benefits pursuant to Section 2(a) above shall be paid to you, or on your behalf, no later than March 15 of the calendar year following the calendar year of your separation from service.  Furthermore, nothing herein shall be construed as a guarantee of any particular tax treatment to you.

 

  

2

  

8. Non-Admission and No Wrongdoing.  Nothing contained in this Agreement shall be deemed to constitute an admission or evidence of any wrongdoing or liability on the part of you or the Company and Releasees, nor of any violation of any federal, state or municipal statute, regulation or principle of common law or equity.  The Company and Releasees expressly deny any wrongdoing of any kind in regard to your employment or your termination.  Further, by signing this Agreement you acknowledge that this Agreement is being entered into voluntarily and solely for the purpose of amicably resolving all matters concerning the termination of your employment.

 

9. Company Property.  You represent that you have returned to the Company any and all Company property in your possession in good working order, ordinary wear and tear excepted, including, but not limited to: company vehicles; credit cards; equipment (including, without limitation, computer equipment); supplies; samples; prototypes; keys; and documents such as financial reports, manufacturing data, client lists, customer and vendor information, price lists, phone listings, and equipment lists you have in your possession or under your control belonging to the Company and Releasees or containing confidential or proprietary information concerning the Company and Releasees or their customers or operations (“Company Information”).  You warrant that you have not retained, or delivered to any person or entity copies of Company Information or permitted any copies of Company Information to be made by any other person or entity.

 

10. Unemployment.  The Company agrees that when you apply for unemployment, it will not respond to requests by the Massachusetts Department of Unemployment Assistance for information, unless compelled by subpoena or other compulsory process of law.

 

11. Insurance/Indemnification.  The Company agrees that it will maintain insurance coverage under: (i) the Directors and Officers Liability Insurance Policy (Policy Number: PT12DOL602998IV) with Navigators Insurance Company, the Excess Liability Policy (Policy Number: NHS649186) with RSUI Indemnity Company, and any other applicable insurance policies (together, the “Policies”); or (ii) another insurance policy (or policies that have at least the same scope and coverage amounts as set forth in the Policies (the “Successor Policies”) until the expiration of the applicable statute of limitations for all claims that could be filed against you that would be subject to coverage under the Policies or the Successor Policies, as the case may be.  The Company agrees that if any covered claim is filed against you, it will pay for the full retention amount associated with such claim.  The Company agrees to defend and indemnify you fully for any loss, cost, judgment, settlement or expense (including attorneys’ fee) incurred in connection with any covered matter that exceeds the limits set forth in the Policies or the Successor Policies, as the case may be.

 

12. Mutual Non-Disparagement.  You agree not to knowingly make any statement, written or verbal, to any third party that may be harmful to the Company or injurious to its goodwill, reputation or business standing at any time in the future.  John Joyce and each member of the Board of Directors of the Company agrees not to knowingly make any statement, written or verbal, to any third party that may be harmful to you or injurious to your goodwill, reputation or business standing at any time in the future.

 

13. No Voluntary Assistance.   You agree that you will not voluntarily assist other individuals or entities in bringing claims against the Releasees.  You understand that this promise constitutes a waiver of the right to voluntarily assist other individuals or entities bringing claims against the Releasees, and you waive any such right.  The word “voluntarily” in the foregoing paragraph shall not  include any claim where you are compelled by subpoena or court order to participate in any claim brought by a third party.

 

14. Entire Agreement/No Modifications/Termination of Employment Agreement.  This Agreement, in addition to the NDA, fully supersedes any and all prior agreements, representations or understandings, written or oral between the parties, including but not limited to, the subject matter of this Agreement or any related matter.  This Agreement may only be amended by a writing signed by the parties to this Agreement.  All existing employment agreements between you and the Company, whether oral or written, other than the NDA, are hereby terminated.

 

15. Governing Law:  This Agreement will be governed by and construed in accordance with the laws of the State of Massachusetts (without regard to the conflict of laws rules thereof that would require the application of the laws of another state).

 

16. Assignment:  This Agreement shall inure to the benefit of and shall be binding upon you and your executors, administrators, heirs and legal representatives.  You may not sell or otherwise assign your rights, obligations, or benefits under this Agreement and any attempt to do so shall be void. This Agreement will be assigned by the Company to any legal successor of the Company, and the Company agrees to provide you with prior written consent of such assignment. This Agreement shall inure to the benefit of and shall be binding on the Company’s successors and assigns.

 

All severance pay payable to you under this Agreement shall be payable to your estate in the event of your death. This Agreement shall terminate upon your death.

 

17. Revocation Period.  YOU ACKNOWLEDGE THAT YOU MAY REVOKE THIS AGREEMENT WITHIN SEVEN (7) DAYS AFTER ITS EXECUTION (THE “REVOCATION PERIOD”). ANY REVOCATION WITHIN THIS REVOCATION PERIOD MUST BE SUBMITTED, IN WRITING, TO THE COMPANY AND MUST STATE “I HEREBY REVOKE MY ACCEPTANCE OF MY SEPARATION AGREEMENT AND GENERAL RELEASE.”  THE REVOCATION MUST BE MAILED OR SENT BY FACSIMILE TO ABRAHAM KIMELMAN, FAX NO. (617) 332-7260, AND RECEIVED BY THE COMPANY PRIOR TO THE EXPIRATION OF THE REVOCATION PERIOD.  IF THE LAST DAY OF THE REVOCATION PERIOD IS A SATURDAY, SUNDAY OR LEGAL HOLIDAY, THEN THE REVOCATION PERIOD SHALL NOT EXPIRE UNTIL THE NEXT FOLLOWING DAY WHICH IS NOT A SATURDAY, SUNDAY OR LEGAL HOLIDAY.  YOU UNDERSTAND THAT YOU WILL NOT RECEIVE THE PAYMENTS SPECIFIED IN PARAGRAPH 2 OF THE AGREEMENT UNTIL AFTER THE REVOCATION PERIOD ELAPSES, AND THE AGREEMENT SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL AFTER THE REVOCATION PERIOD HAS EXPIRED.

 

  

3

  

You specifically acknowledge the following:

 

	
1.  

	
You had 21 days to consider this Agreement;

 

	
2.  

	
You have read this entire Agreement including the full release of claims and fully understand its terms;

 

	
3.  

	
You were advised in writing to consult with an attorney prior to signing this Agreement and were given an opportunity to review this Agreement with an attorney;

 

	
4.  

	
You are voluntarily entering into this Agreement knowingly of your own free will and without undue influence or stress;

 

	
5.  

	
The waiver specifically refers to rights or claims arising under the Age Discrimination in Employment Act of 1967 as amended;

 

	
6.  

	
You have not waived any rights after the date that you execute this Agreement;

 

	
7.  

	
You would not otherwise be entitled to the payments and benefits and other considerations provided by this Agreement;

 

	
8.  

	
The Agreement provides you with a period of seven (7) days following the execution of this Agreement to revoke the Agreement, as explained herein in Paragraph 17; and

 

	
9.  

	
The Agreement will not become effective until the eighth day following execution by you of this Agreement.

 

If you sign this Agreement prior to the expiration of the twenty-one (21) days given to consider the Agreement, you do so voluntarily and of your own free will.

 

PLEASE READ CAREFULLY.  THIS AGREEMENT HAS IMPORTANT LEGAL CONSEQUENCES.

 

  

4

  

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	 	 	Date: 11/29/13	 
	 
Ambient Corporation

	 	 	 
	 	 	 	 
	By:	/s/	 	 	 
	 	 
John J. Joyce, Chief Executive Officer

	 	 	 
	 	 	 	 	 
	 	/s/	 	Date: 11/27/13	 
	 	Stacey Fitzgerald	 	 	 
	 	 	 	 	 

 

  

5

  

 

EXHIBIT A

AMBIENT CORPORATION

EMPLOYEE CONFIDENTIALITY AND NON-COMPETITION AGREEMENT

 

THIS EMPLOYEE CONFIDENTIALITY AND NON-COMPETITION AGREEMENT (this "Agreement") entered into as of July 9, 2012, by and between AMBIENT CORPORATION, a Delaware corporation with its principal place of business at 7 Wells Avenue, Suite 11, Newton, MA  02459 (hereinafter called the "Company") and Stacey Fitzgerald (hereinafter called "Employee").

 

WITNESSETH:

 

WHEREAS, in pursuing its smart grid communications platforms business, Company has developed and acquired valuable proprietary information, technology, intellectual property, inventions, trade secrets, production and marketing plans, client and prospective client information and lists, equipment, business methods and strategic plans; and

 

WHEREAS, the secrecy of Company’s proprietary information, trade secrets and inventions, and the protection of its patents, are essential, because Company is engaged in a highly competitive industry which requires a substantial continuing commitment to research, development and innovation to remain competitive; and

 

WHEREAS, it has been and will continue to be necessary for Company to impart to Employee knowledge of its proprietary information, inventions and trade secrets and to involve Employee in various aspects of research, development, business methods and business plans, during which involvement, of necessity, Employee will gain additional knowledge of Company's inventions, trade secrets and other confidential information, all for the purpose of equipping and enabling Employee to discharge his/her duties effectively to the mutual advantage of himself/herself and Company; and

 

WHEREAS, Employee recognizes that Company must, for its protection, place reasonable limitations on Employee's ability to use and disclose Company's proprietary information, inventions and trade secrets and, further, that Company, in order that such limitations shall be effective, must have the right to enforce such limitations by way of injunctive relief, both temporary and permanent;

 

NOW THEREFORE, in consideration for the employment of Employee by the Company and in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows:

 

Section 1.  Inventions.

 

1.1           Any and all inventions, ideas, improvements, processes, formula and discoveries, whether or not patentable, conceived, devised, made, acquired or reduced to practice by Employee, either alone or in conjunction with others, during the period of Employee's employment by Company (including, without limitation, prior employment by Company and/or its subsidiaries) which relate or reasonably appertain to the business engaged in by Company or its subsidiaries, or to any products now manufactured, advertised or sold by Company or its subsidiaries, or to any products in the process of development by Company or its subsidiaries, or to any similar or competitive products, or to the method or process of making or using any such products, or which result from duties or tasks assigned to Employee by Company, whether so devised, made, acquired or reduced to practice during working hours or otherwise, with the materials and tools of Company or its subsidiaries or otherwise, and (except as provided in Section 1.2) shall be the sole and exclusive property of Company; and Employee shall, without further compensation or consideration, but at the expense of Company:

 

(a)           fully and promptly disclose to Company all information with respect to such inventions, ideas, improvements, processes, formulae and discoveries;

 

(b)           whenever requested by Company, promptly execute and cooperate in the filing and prosecution of any and all applications, assignments and other instruments which Company shall deem necessary in order to apply for and obtain Letters Patent of the United States and of foreign countries for such inventions, ideas, improvements, processes, formulae and discoveries, and in order to assign and convey to Company, or to Company's nominee, the sole and exclusive right, title and interest in and to such inventions, ideas, improvements, processes, formula and discoveries or any applications or patents thereon; and

 

(c)           whenever requested by Company, promptly deliver to Company evidence with respect to such inventions, ideas, improvements, processes, formulae and discoveries for the purpose of any legal proceedings and testify with respect thereto in any legal proceedings.

 

  

A-1

  

Section 2.                      Confidential Information.

 

2.1           Employee shall exercise utmost diligence to protect and guard the secret and confidential proprietary information, technology, intellectual property, inventions, trade secrets, production and marketing plans, client and prospective client information and lists, equipment, business methods and strategic plans of Company and its subsidiaries, relating to the business engaged in by Company and its subsidiaries (hereinafter collectively referred to as "Confidential Information").   Confidential Information shall not include any information that: (a) was in Employee's possession prior to Employee's employment with Company; (b) is or becomes a matter of public knowledge through no fault of Employee or Company; (c) is rightfully received by Employee from a third party that is not under any duty of confidentiality with respect to such information; or (d) is generally made available to third parties by Company without any restrictions on disclosure.

 

2.2           Neither during Employee's employment by Company nor thereafter shall Employee, directly or indirectly, use for himself/herself or another, or disclose to another, any Confidential Information which has in any manner come into the Employee's knowledge, except as such disclosure or use may be reasonably required in connection with his/her employment by Company or may be consented to in advance in writing by Company.

 

2.3           Each of the foregoing obligations of Employee regarding Confidential Information shall also apply with respect to Confidential Information of customers, suppliers, contractors, joint ventures, affiliates and others with whom Company or any of its subsidiaries has a business relationship.

 

2.4           Unless otherwise required by statute or government rule or regulation, all copies of Confidential Information, shall be returned to the Company immediately upon request without retaining copies thereof. This obligation includes Confidential Information stored on computer hardware/software which shall be deleted forthwith after a copy is provided to Company.

 

Section 3.  Non-Competition.

 

3.1           During the term of his/her employment with the Company and during the Non-Compete Period (as defined below), Employee shall not, without the prior written approval of the President of Company, perform any of the following acts:

 

(a)           accept employment with any business wherever located which engages in any business in the Territory (as hereinafter defined) which competes with Company or any of its subsidiaries if the employment in question either would include the performance of duties similar to those performed by Employee for Company or would place him/her in a working relationship with persons performing such duties; or

 

(b)           directly or indirectly, for himself/herself or an behalf of others, as an individual on his/her own account or as an employee, agent or representative for any person, partnership, firm or corporation, engage in, aid in the operation of, contribute his/her knowledge to, or own, manage, operate or participate in the ownership, management or control of any business wherever located which competes with Company or any of its subsidiaries in the Territory.  Nothing contained in this Section 3 shall be construed to prohibit Employee from owning, either of record or beneficially, up to five percent (5%) of the shares or other equity interest of any publicly traded company which competes with the Company or any of its subsidiaries.

 

3.2           Employee and Company agree that, in view of the character of Employee's work and of the business engaged in by Company and its subsidiaries, in view of the nature of the market in which Company and its subsidiaries compete, it is reasonable and necessary for the protection of Company and its subsidiaries that the “Territory” referred to in Section 3.1 means the United States of America and Canada.

 

3.3           The provisions of this Section 3 shall not in any way or to any extent limit the obligations of Employee under any other Section of this Agreement.

 

3.4           For purposes of this Agreement, the Non-Compete Period shall be a period of one (1) year from the effective date of the termination of Employee’s employment by Company or any of its subsidiaries (the “Termination Date”), unless a court of competent jurisdiction orders a shorter period of time.

 

Section 4.  Employee, Customer or Supplier Interference.  During the term of his/her employment with the Company and for two (2) years after the Termination Date, Employee shall not, directly or indirectly, for himself/herself or on behalf of others, (a) induce or attempt to induce any other employee to quit Company's employ or the employ of any Company subsidiary, interfere with or disrupt Company's or the subsidiary’s relationship with any other employee or solicit, entice, take or employ any other employee of Company or the subsidiary; and/or (b) call upon, solicit, divert or attempt to solicit or divert from Company or its subsidiaries any of their customers or suppliers, or potential customers or suppliers whose business was solicited by Company or one of its subsidiaries, or who were identified in writing by Company or one of its subsidiaries as a potential customer or supplier, during Employee's employment with Company; provided, however, that nothing in this Section 4.1 shall be deemed to prohibit Employee from calling upon or soliciting a customer or supplier if such action relates solely to a business or matter that is not competitive with Company and its subsidiaries.

 

  

A-2

  

Section 5.  Miscellaneous.

 

5.1           Each covenant set forth in this Agreement is separate and distinct from every other covenant and, if any such covenant, or any part of any such covenant, is declared to be invalid by a court of competent jurisdiction, the remaining obligations of this Agreement shall be deemed to be independent and divisible and shall remain in full force and effect as if the invalid covenant or covenants never were part of this Agreement.  In the event that a court of competent jurisdiction shall determine that any provision of this Agreement or the application thereof is unenforceable in whole or in part, the parties hereto agree that said court in making such determination shall have the power to reduce the duration and scope of such provision or otherwise modify, in any way necessary, such provision to the extent necessary to make it enforceable, and that the Agreement in its modified form shall be valid and enforceable to the full extent permitted by law.

 

5.2           Failure on Company's part to exercise any rights or privileges granted to it by this Agreement or to insist upon the full performance of all obligations or duties assumed by Employee shall not be construed as waiving any such rights, privileges, obligations or duties, or as creating any custom contrary thereto.

 

5.3           If Employee shall violate any of the terms of this Agreement, Company, in addition to any other remedies it may have, shall be entitled to an injunction (including a temporary restraining order and/or a temporary and/or a preliminary injunction), without the necessity of proving actual damages and without the posting of a bond, to be issued by any court of equity of competent jurisdiction, enjoining and restraining Employee from such wrongful acts, and Employee shall reimburse Company for all reasonable attorneys' fees and expenses incurred by it to enforce this Agreement.

 

5.4           The provisions hereof shall survive and continue in full force and effect after termination of Employee's employment with Company, whether such termination is with or without cause, or is voluntary or involuntary.

 

5.5           Whenever written notice is required to be given by this Agreement, adequate notice shall be deemed to have been given if the written notice is sent by first class mail addressed as follows:

 

(a)           To Employee at either his/her last known residence or his/her place of business as noted on the records of Company;

 

Stacey Fitzgerald

11 Wayne Avenue

Braintree, MA  02184

 

 

(b)           To Company as shown below:

 

AMBIENT CORPORATION

Attn:  Abraham Kimelman

7 Wells Avenue, Suite 11

Newton, MA 02459

 

5.6           The validity of this Agreement shall be determined under and shall be governed in all respects by, the laws of the State of Massachusetts, even though all or a substantial part of Employee's duties may be performed elsewhere. The parties agree to submit to the jurisdiction of any appropriate state court of record or federal district court in the district in which the Company’s offices are located for purposes of resolving any dispute arising under this Agreement.

 

5.7           This Agreement shall be binding upon and inure to the benefit of the parties, their successors and assigns.

 

5.8           This Agreement contains the entire agreement between the parties and Employee agrees that no other promises or inducements have been made unless contained in writing, attached hereto or incorporated herein by reference.

 

  

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement in duplicate as of the date first above written.

 

	EMPLOYEE 	 	AMBIENT CORPORATION	 
	 	 	 	 
	/s/ Stacey Fitzgerald  	 	/s/ Abraham Kimelman	 
	Name: Stacey Fitzgerald  	 	Name: Abraham Kimelman	 
	 	 	 	 
	Date: July 9, 2012  	 	Title: Manager of Accounting	 
	 	 	 	 

 

 

 

 

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