Document:

promissorynote.htm

Back to Form 10-Q

Exhibit 10.12

 

Exhibit C

 

NON-NEGOTIABLE PROMISSORY NOTE

 

 

	$35,000,000.00	 	 May 5, 2011

 

                                                                                                                

FOR VALUE RECEIVED, the undersigned, WellCare Health Plans, Inc., a Delaware corporation whose corporate offices are located at 8735 Henderson Road, Renaissance 1, Tampa, Florida 33634 (the "Maker"), hereby promises to pay to an Escrow Agent to be designated by Lead Counsel on behalf of Lead Plaintiffs (the "Payee"), the principal sum of thirty-five million dollars ($35,000,000.00), in accordance with the terms and provisions of this Promissory Note (the "Note").

 

1. Purpose of This Note; Defined Terms. This Note is executed and delivered pursuant to the terms of a Stipulation and Agreement of Settlement (the "Stipulation") filed in the case of Eastwood Enterprises, LLC v. Farha, et al., pending in the United States District Court for the Middle District of Florida, Tampa Division (Case No. 8:07-cv-1940-VMC-EAJ). All capitalized terms herein shall have the same meaning as set forth in the Stipulation unless otherwise defined herein.

 

2. Due Date. The outstanding principal balance of this Note shall be due and payable in full on July 31, 2011 (the "Due Date"). On or before July 28, 2011, Lead Counsel shall designate to Maker the specific Escrow Agent and Escrow Account to which payment is to be made. This Note may be prepaid without penalty or interest.

 

(a)  Default. The occurrence of any one or more of the following events or conditions (each an "Event of Default") constitutes a default hereunder:

 

	 	(i)  	
the Maker's failure to make payment in full on or before the Due Date.

 

	 	(ii)	the Maker's insolvency, general assignment for the benefit of creditors, or the commencement by or against the Maker of any case, proceeding, or other action seeking reorganization, arrangement, adjustment, liquidation, dissolution, or composition of the Maker's debts under any law relating to bankruptcy, insolvency, or reorganization, or relief of debtors, or seeking appointment of a receiver, trustee, custodian, or other similar official for the Maker or for all or any substantial part of the Maker's assets which, in the case of involuntary proceedings, has not been withdrawn or dismissed within 60 days after the filing thereof.

 

                              (b) If an Event of Default shall occur, the entire unpaid principal amount of this Note shall accelerate and become immediately due and payable without presentment, demand, protest, or notice of any kind whatsoever including, but not limited to, notice of dishonor, nonpayment, and maturity, all of which are hereby expressly waived, and interest thereon shall

  

  

  

accrue at the rate and pursuant to the method set forth in 28 USC §1961 until all sums due are paid.

 

3. Maker's Representations and Warranties. The Maker hereby represents and warrants on the date hereof that:

 

(a) the Maker is not subject to regulation under any law or to any restriction under its organizational documents or under any contract to which the Maker is a party, breach of which would have a material adverse effect on the Maker, that limits the Maker's ability to incur indebtedness under this Note.

 

                   4. Maker's Waivers and Consents.

                              (a) The Maker hereby assents to any indulgence or any extension of the time for payment granted or permitted by the Payee.

                              (b) The Maker hereby waives presentment, demand, protest, and notice of any kind whatsoever in connection with the delivery, acceptance, performance, and enforcement of this Note.

                              (c) THE OBLIGATIONS OF THE MAKER TO PAY PRINCIPAL AND INTEREST AS PROVIDED IN THIS NOTE ARE ABSOLUTE AND UNCONDITIONAL, AND ARE (I) NOT SUBJECT TO ANY DEFENSE OR ANY RIGHT OF SET-OFF, RECOUPMENT, COUNTERCLAIM OR DEDUCTION OF ANY KIND WHICH MAY OTHERWISE BE AVAILABLE TO THE MAKER AND (II) WITHOUT ANY RIGHT OF SUSPENSION, DEFERMENT, OR REDUCTION THE MAKER MIGHT OTHERWISE HAVE AT LAW OR IN EQUITY AGAINST THE CLASS OR ANY CLASS MEMBER, THE PAYEE OR ANY OTHER HOLDER OF THIS NOTE. THE MAKER HEREBY WAIVES THE RIGHT TO ASSERT ANY SUCH DEFENSE (OTHER THAN ACTUAL PAYMENT OF THIS NOTE) OR OTHER RIGHT IN ANY ACTION OR PROCEEDING TO ENFORCE THIS NOTE.

 

5. Successors and Assigns. This Note shall be binding upon and inure to the benefit of the parties hereto and their respective successors. Neither the Maker nor the Payee may, without the prior written consent of the other party, assign any right, duty or obligation hereunder. Payee may not negotiate this Note without the prior written consent of the Maker.

 

6. Voidable Event. This Note shall terminate and be rendered void and unenforceable if the Stipulation is terminated pursuant to its terms.

 

7. Governing Law. The provisions of this Note shall be governed and construed according to the laws of Florida.

 

8. JURISDICTION; WAIVER OF JURY TRIAL. ANY PROCEEDING SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR IN CONNECTION WITH, THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE BROUGHT AND DETERMINED UPON WRITTEN APPLICATION TO THE COURT IN THE ACTION, PURSUANT TO THE CONTINUING JURISDICTION

 

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OF THE COURT AS SET FORTH IN THE JUDGMENT, AND IN NO OTHER FORUM. THE PARTIES HERETO HEREBY CONSENT TO THE JURISDICTION OF SUCH COURT AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING IN SUCH COURT. PURSUANT TO THE CONTINUING JURISDICTION OF THE COURT, ANY SUCH PROCEEDING MAY BE BROUGHT BEFORE THE COURT BY NOTICE OF MOTION SERVED IN ACCORDANCE WITH THE FEDERAL RULES OF CIVIL PROCEDURE AND THE LOCAL RULES OF PRACTICE OR IN SUCH OTHER MANNER AND WITHIN SUCH OTHER TIME PERIODS AS THE COURT MAY DIRECT. BOTH PARTIES HERETO HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY. LEAD PLAINTIFFS SHALL HAVE THE RIGHT TO BRING ANY SUCH PROCEEDING ON BEHALF OF, AND FOR THE BENEFIT OF, THE CLASS.

 

                   9. Notices.

 

                              (a) All notices hereunder shall be in writing and shall either be hand delivered, with receipt therefor, or sent by FedEx or similar overnight courier, with receipt therefor, or by certified or registered mail, postage prepaid, return receipt requested, as follows:

 

	 	 If to Maker:	WellCare Health Plans, Inc. 

8735 Henderson Road 

Renaissance 1, 3rd Floor 

Tampa, FL 33634 

Attn: John Richter

	 
	 	 	 	 
	 	With copy to:    	
Hogan Lovells US LLP 

555 13th Street, NW

Washington, DC 20004 

Attn: George H. Mernick, III, Esq.

	 
	 	 	 	 
	 	If to Payee: 	Bernstein Litowitz Berger & Grossmann LLP 

1285 Avenue of the Americas 

New York, New York 10019 

Attn: Steven B. Singer, Esq.

 

AND

 

Labaton Sucharow LLP

140 Broadway, 34th Floor 

New York, New York 10005 

Attn: Thomas Dubbs, Esq.

	 

                       

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Notices shall be effective when received; provided, however, that if any notice sent by overnight courier or by certified or registered mail is returned as undeliverable, such notice shall be deemed effective when mailed or given to such courier.

                              (b) Any of the foregoing entities may change the address to which notices are to be delivered to it hereunder by giving written notice to the others as provided in this paragraph.

 

10. Severability. In the event that any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Note, and this Note shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

 

IN WITNESS WHEREOF, Maker has executed this Note on this 5th day of May 2011.   

 

	 	 	  

MAKER: 

 

WellCare Health Plans, Inc.

	 	
 

 

 

 

 

	By: /s/ Thomas Tran                                          
	 	 	
Name: Thomas Tran

Title: Chief Financial Officer

 

 

 

 

4fa904amendment6.htm

Back to Form 10-Q

Exhibit 10.15

 

	
WellCare of Florida, Inc.

	  	
Medicaid HMO Non-Reform Contract

	
d/b/a Staywell Health Plan of Florida

	  	  

 

AHCA CONTRACT NO. FA904

AMENDMENT NO. 6

THIS CONTRACT, entered into between the STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRATION, hereinafter referred to as the “Agency” and WELLCARE OF FLORIDA, INC. D/B/A STAYWELL HEALTH PLAN OF FLORIDA, hereinafter referred to as the “Vendor” or “Health Plan”, is hereby amended as follows:

	
1.

	
Effective August 1, 2011, Attachment I, Scope of Services, Capitated Health Plans, is hereby amended to include Attachment I, Exhibit 1-A, Revised Maximum Enrollment Levels, attached hereto and made a part of the Contract.  All references in the Contract to Attachment I, Exhibit I, shall hereinafter also refer to Attachment I, Exhibit 1-A, as appropriate.

 

	
2.

	
Attachment II, Core Contract Provisions, Section XVI., Terms and Conditions, is hereby amended to include Item GG. as follows:

 

	  	
GG.  Work Authorization Program

 

	  	
The immigration Reform and Control Act of 1986 prohibits employers from knowingly hiring illegal workers.  The Vendor shall only employ individuals who may legally work in the United States – either U.S. citizens or foreign citizens who are authorized to work in the U.S.  The Vendor shall use the U.S. Department of Homeland Security’s E-Verify Employment Eligibility Verification system to verify the employment eligibility of:

	  	
Ø 

	
all persons employed by the Vendor, during the term of this Contract, to perform employment duties within Florida; and,

 

	  	
Ø 

	
all persons (including subcontractors) assigned by the Vendor to perform work pursuant to this Contract.

	  	
The Vendor shall include this provision in all subcontracts it enters into for the performance of work under this Contract.

	  	  
	  	
Unless otherwise stated, this amendment is effective upon execution by both parties.

	  	  
	  	
All provisions not in conflict with this amendment are still in effect and are to be performed at the level specified in the Contract.

	  	  
	  	
This amendment and all its attachments are hereby made a part of the Contract.

	  	  
	  	
This amendment cannot be executed unless all previous amendments to this Contract have been fully executed.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

 

AHCA Contract No. FA904, Amendment No. 6, Page 1 of 2

  

  

  

	
WellCare of Florida, Inc.

	  	
Medicaid HMO Non-Reform Contract

	
d/b/a Staywell Health Plan of Florida

	  	  

IN WITNESS WHEREOF, the Parties hereto have caused this five (5) page amendment (including all attachments) to be executed by their officials thereunto duly authorized.

	
WELLCARE OF FLORIDA, INC., D/B/A

STAYWELL HEALTH PLAN OF FLORIDA

	
STATE OF FLORIDA, AGENCY FOR 

HEALTH CARE ADMINISTRATION

	  	  	  	  	  	  
	
SIGNED

	  	  	
SIGNED

	  	  
	
BY:

	
/s/Christina Cooper

	  	
BY:

	/s/ Elizabeth Dudek

 

	
NAME:

	
Christina Cooper

	  	
Name:

	
Elizabeth Dudek

	
 

TITLE:

	
 

President, Florida & Hawaii Division

	  	
 

TITLE:

	
 

Secretary

	
 

DATE:

	
 

6/29/11

	  	
 

DATE:

	
  

6/30/11

 

 

List of Attachments/Exhibits included as part of this amendment:

 

	
Specify

Type

	  	
Letter/

Number

	  	
 

Description

	
Attachment I

	  	
Exhibit 1-A

	  	
Revised Maximum Enrollment Levels (3 Pages)

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

 

AHCA Contract No. FA904, Amendment No. 6, Page 2 of 2

  

  

  

 

	
WellCare of Florida, Inc.

	  	
Medicaid HMO Non-Reform Contract

	
d/b/a Staywell Health Plan of Florida

	  	  

ATTACHMENT I

EXHIBIT 1-A

REVISED MAXIMUM ENROLLMENT LEVELS

Maximum enrollment levels and Health Plan provider numbers associated with the counties and populations served.  Exhibit 2-NR-B provide the capitation rate tables respective to the areas of operation listed below.

A.  Non-Reform

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 3 Counties: Hernando, Sumter

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Hernando

	
15,000

	
015016901

	  	
Sumter

	
4,500

	
015016916

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 5 Counties: Pasco, Pinellas

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Pasco

	
7,000

	
015016903

	  	
Pinellas

	
15,000

	
015016904

 

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 6 Counties: Hillsborough, Manatee, Polk

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Hillsborough

	
28,000

	
015016902

	  	
Manatee

	
12,000

	
015016912

	  	
Polk

	
25,000

	
015016905

AHCA Contract No. FA904, Attachment I, Exhibit 1-A, Page 1 of 3

 

  

  

  

	
WellCare of Florida, Inc.

	  	
Medicaid HMO Non-Reform Contract

	
d/b/a Staywell Health Plan of Florida

	  	  

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 7 Counties: Orange, Seminole, Osceola, Brevard

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Orange

	
38,000

	
015016906

	  	
Seminole

	
6,000

	
015016908

	  	
Osceola

	
12,000

	
015016907

	  	
Brevard

	
14,000

	
015016913

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 8 Counties: Lee, Sarasota, Charlotte

 

	  	
Effective Date: 09/01/09, and 08/01/11 Charlotte

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Lee

	
15,000

	
015016911

	  	
Sarasota

	
6,000

	
015016914

	  	
Charlotte

	
27,000

	
TBD

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 9 Counties: Palm Beach, St. Lucie, Indian River

 

	  	
Effective Date: 09/01/09, and 08/01/11 Indian River

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Palm Beach

	
15,000

	
015016910

	  	
St. Lucie

	
4,500

	
015016915

	  	
Indian River

	
10,500

	
TBD

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

AHCA Contract No. FA904, Attachment I, Exhibit 1-A, Page 2 of 3

 

  

  

  

	
WellCare of Florida, Inc.

	  	
Medicaid HMO Non-Reform Contract

	
d/b/a Staywell Health Plan of Florida

	  	  

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 10 Counties:  Broward

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Broward

	
25,000

	
015016900

 

See Exhibit 2-NR-B Table 2, General Capitation Rates plus Mental Health Rates

	  	
Area 11 Counties:  Miami-Dade

 

	  	
Effective Date: 09/01/09

	  	
County

	
Enrollment Level

	
Provider Number

	  	
Miami-Dade

	
25,000

	
015016909

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

AHCA Contract No. FA904, Attachment I, Exhibit 1-A, Page 3 of 3

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