Document:

exh10-3.htm

     

      

    

    Back to Form
8-K

     

    Exhibit
10.3

     

    

      WELLCARE
HEALTH PLANS, INC.

      

      NON-QUALIFIED
STOCK OPTION AGREEMENT

      FOR

      THOMAS
F. O’NEIL III

       

      Agreement

       

      1.                      Grant of
Option.  WellCare Health Plans, Inc. (the “Company”) hereby
grants, as of April 1, 2008, to Thomas F. O’Neil III (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 $39.70 (the “Option Price”).  The Option is being granted as
an “employee inducement award” within the meaning of Section 303A(8) of the New
York Stock Exchange Listed Company Manual.  The Option shall be
subject to the terms and conditions set forth herein.  The Option is a
non-qualified stock option, and not an incentive stock option conforming to the
requirements of Section 422 of the Code.  The Optionee agrees to be
bound by all of the terms and conditions hereof and all applicable laws and
regulations.

       

      2.                      Definitions.  

       

      i.           “Board”
means the Board of Directors of the Company.

       

      ii.           “Cause”
shall have such meaning as otherwise set forth in the Employment
Agreement.

       

      iii.           “Change
in Control” shall have such meaning as otherwise set forth in the
Employment Agreement.

       

      iv.           “Code”
means the Internal Revenue Code of 1986, as amended.

       

      v.           “Committee”
means the Compensation Committee of the Board.

       

      vi.           “Common
Stock” means the Common Stock, par value $.01 per share, of the Company, and any
other shares into which such stock may be changed by reason of a
recapitalization, reorganization, merger, consolidation or any other change in
the corporate structure or capital stock of the Company.

       

      vii.           “Competition” is
deemed to occur if a person whose employment with the Company or its
Subsidiaries has terminated engages as an officer, director, shareholder, owner,
partner, joint venturer, or in any managerial capacity, whether as an employee,
independent contractor, consultant or advisor (paid or unpaid), or as a sales
representative, or otherwise participates, in each case, in any business that
sells, markets, or provides any benefits or services within any state in which
the Company, Comprehensive Health Management, Inc. or their respective
subsidiaries (each, a “WellCare Company”) is doing business at the time the
Optionee ceases to be employed by the Company that are in direct competition
with the benefits or services provided by such WellCare Company in such
state.

       

      viii.                      “Disability”
means a disability that would entitle an eligible participant to
payment

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      of
monthly disability payments under any Company disability plan or any agreement
between the eligible participant and the Company as otherwise determined by the
Committee.

       

      ix.           “Employment
Agreement” means the employment agreement dated April 1, 2008 between
the Optionee, the Company and Comprehensive Health Management, Inc., a Florida
corporation (“CHMI”).

       

      x.           “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

       

      xi.           “Fair
Market Value” of a share of Common Stock of the Company means, as of the
date in question, the officially-quoted closing selling price of the stock (or
if no selling price is quoted, the bid price) on the principal securities
exchange on which the Common Stock is then listed for trading (including for
this purpose the Nasdaq National Market) (the “Market”) for the applicable
trading day or, if the Common Stock is not then listed or quoted in the Market,
the Fair Market Value shall be the fair value of the Common Stock determined in
good faith by the Board; provided, however, that when shares received upon
exercise of an option are immediately sold in the open market, the net sale
price received may be used to determine the Fair Market Value of any shares used
to pay the exercise price or applicable withholding taxes and to compute the
withholding taxes.

       

      xii.                      “Good
Reason” shall have such meaning as otherwise set forth in the Employment
Agreement.

       

      xiii.                      “Subsidiary”
means a corporation or other entity of which outstanding shares or ownership
interests representing 50% or more of the combined voting power of such
corporation or other entity entitled to elect the management thereof, or such
lesser percentage as may be approved by the Committee, are owned directly or
indirectly by the Company.

       

      3.                      Exercise
Schedule.  Except as otherwise provided in Sections 6 and 7 of
this Agreement, 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
Option shall vest in equal annual installments on each of April, 2009, 2010,
2011 and 2012 (each, a “Vesting Date”) provided that the Optionee’s employment
or service with the Company and its Subsidiaries during the period beginning on
April 1, 2008 continues through and on the applicable Vesting Date.

       

      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.

       

      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. 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.

       

      
        
           

        

        
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      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 delivery of written notice by the Optionee 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 Optionee shall deliver, together with
the written notice, 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) arrangements that are
satisfactory to the Committee in its sole discretion have been made for
Optionee’s payment to the Company 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
(including the New York Stock Exchange) or interdealer quotation system 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 delivery of outstanding
shares of Common Stock with a Fair Market Value on the date of exercise equal to
the aggregate exercise price payable with respect to the Options’ exercise, (c)
to the extent permissible, 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, (d) 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 (e) by any combination of the
foregoing.

       

                In
the event the Optionee elects to pay the Option Price pursuant to clause (b)
above, (i) only a whole number of share(s) of Common Stock (and not fractional
shares of Common Stock) may be tendered in payment, (ii) the Optionee must
present evidence acceptable to the Company that the Optionee has owned any such
shares of Common Stock tendered in payment of the Option Price (and that such
tendered 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, and (iii)
Common Stock must be delivered to the Company.  Delivery for this
purpose may, at the election of the Optionee, be made either by (A) physical
delivery of the certificate(s) for all such shares of Common Stock tendered in
payment of the Option Price, accompanied by duly executed instruments of
transfer in a form acceptable to the Company, or (B) direction to the Optionee’s
broker to transfer, by book entry, such shares of Common Stock from a brokerage
account of the Optionee to a brokerage account specified by the
Company.  When payment of the Option Price is made by delivery of
Common Stock, 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 of Common Stock tendered in payment (plus any applicable taxes)
shall be paid in cash.  The Optionee may not tender shares of Common
Stock having a Fair Market Value exceeding the Option Price payable with respect
to the portion of the Option being exercised (plus any applicable
taxes).

       

      
        
           

        

        
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                In
the event the Optionee elects to pay the Option Price pursuant to clause (d)
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.

       

      6.                      Termination of Optionee’s
Service.

       

      (a)           Death or
Disability.  If the Optionee ceases to be a director, officer
or employee of, or to perform other services for, the Company, CHMI or any
Subsidiary due to the Optionee’s death or Disability, 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 such one year period, unless the Optionee has
received written consent to do so from the Company.

       

      (b)           Termination for
Cause.  If the Optionee’s employment or service as a director,
officer or employee of, or other performance of services for, the Company, CHMI
or any Subsidiary is terminated for Cause, 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 or any Subsidiary for any reason
other than death, Disability, or Cause, 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 such 90
day 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 Subsidiary, and the Optionee’s service
was terminated (i) by the Company or CHMI without Cause, (ii) by reason of the
Optionee’s death, Disability, or retirement (as defined under any Company or
CHMI pension plan or retirement program or termination of Optionee’s employment
on retirement with the approval of the Committee), or (iii) by the Optionee for
Good Reason, in any case, within twelve months after there is a Change in
Control of the Company, 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. 

      
        
           

        

        
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      (f)              Extension of
Post-Termination of Service Exercise Period.  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 beyond the expiration of the Option in
accordance with Section 7(a).

      

      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 tenth 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 (c) of the
definition of a Change in Control in the Employment Agreement, 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.  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

       

      
        
           

        

        
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      Company
with respect to any shares of Common 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.

       

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

       

      12.                      Interpretation. The
undersigned Optionee hereby accepts as binding, conclusive and final all
decisions or interpretations of the Committee upon any questions arising
under  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.           Adjustments.  In
the event of a reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, distribution of assets, or any
other change in the corporate structure or shares of the Company, the Committee
shall make such adjustment as it deems appropriate in the number and kind of
shares subject to your Option and in the Option Price.  Any such
adjustment shall be final, conclusive and binding for all purposes of the
Plan.

       

      15.           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 you,
the individual exercising the Option, 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
registration statement under the 1933 Act is in effect with respect to the
securities covered by the Option, the Company

       

      
        
           

        

        
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      shall not
be required to sell or issue such securities unless the Committee has received
evidence satisfactory to it that the holder of such Option may acquire such
securities pursuant to an exemption from registration under the 1933 Act and
applicable state securities laws or regulations.  Any determination in
this connection by the Committee shall be final, binding, and
conclusive.  The Company hereby agrees that, as soon as reasonably
practicable following the date (after the date of this Agreement) on which the
Company becomes eligible to use Form S-8 for the registration under the 1933 Act
of the securities covered by the Option, the Company will file a registration
statement on Form S-8 to register all of the securities covered by the
Option.  Other than as set forth in the preceding sentence, the
Company shall not be obligated to take any affirmative action in order to cause
the exercise of the Option or the issuance of securities pursuant thereto to
comply with any law or regulation of any governmental authority.  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.

       

      (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, and the Shares to be
received as a result of the exercise of the Option, 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 Option or such Shares nor with the present intention of
distributing or selling such Option or such Shares; (iv) the Optionee has made a
detailed inquiry concerning the Company and its business and services, officers
and personnel; (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, 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 the Shares to be
received as a result of the exercise of the Option and to make an informed
investment decision with respect to both the Option and the Shares; (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 (or the Shares to be received as a result of the exercise of
the Option) and is able to bear the economic risks of holding the Option or the
Shares 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 neither the Option nor any of such
Shares can be transferred or sold unless subsequently registered under the 1933
Act and any applicable state securities laws and regulations or unless an
exemption from such registration is available.  The Optionee 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, and on requirements relating
to the Company which are outside of the Optionee’s control.

       

      
        
          
          

        

        
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      16.           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.

       

      *  *  *  *  *

       

      IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of
the first day
of April, 2008.

       

      
        	 	COMPANY:
      

                 

                WELLCARE
      HEALTH PLANS, INC.

                 

              
	 	By:  /s/  Heath Schiesser 
      

                Name: 
      Heath Schiesser

                Title: 
      President & CEO

              

      

       

      

      Optionee
hereby accepts this Option subject to all of the terms and provisions
hereof.  Optionee has reviewed this Option in its entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Option, and
fully understands all provisions of the Option.

       

      

      
      

       

      
        	 	Dated:  April
      1, 2008
	 	OPTIONEE:  /s/  Thomas F. O'Neil
      III  

      

       

       

       

       

      
 

      
        
           

        

        
          - 8
-exh10-4.htm

    
      

    

    Back to Form 8-K

    Exhibit
10.4

     

    
      
         

         

         

        WELLCARE
HEALTH PLANS, INC.

         

        INDEMNIFICATION
AGREEMENT

         

        

        This
INDEMNIFICATION AGREEMENT (this “Agreement”) is entered into as of April 1,
2008, by and between WellCare Health Plans, Inc., a Delaware corporation (the
“Company”), and Thomas F. O’Neil III, (“Indemnitee”).  Capitalized
terms used and not otherwise defined in this Agreement have the meanings set
forth in Section 10 hereof.

         

        RECITALS

         

        A.           The
Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the directors, officers, employees, agents and fiduciaries of the
Company and its Subsidiaries, the significant increases in the cost of such
insurance and the general reductions in the coverage of such
insurance.

         

        B.           The
Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and
fiduciaries to expensive litigation risks at the same time as the availability
and coverage of liability insurance has been severely limited.

         

        C.           Indemnitee
does not regard the current protection available as adequate under the present
circumstances, and Indemnitee and other directors, officers, employees, agents
and fiduciaries of the Company may not be willing to continue to serve in such
capacities without additional protection.

         

        D.           The
Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and/or one or more of its
Subsidiaries and, in order to induce Indemnitee to provide or to continue to
provide services to the Company and/or one or more of its Subsidiaries, wishes
to provide for the indemnification and advancing of expenses to Indemnitee to
the maximum extent permitted by law.

         

        E.           In
view of the considerations set forth above, the Company desires that Indemnitee
be indemnified by the Company as set forth herein.

         

        NOW,
THEREFORE, the Company and Indemnitee hereby agree as follows:

         

        1.         Indemnification

         

        (a)             Indemnification
of Expenses. The
Company shall indemnify Indemnitee to the fullest extent permitted by law if
Indemnitee was or is or becomes a party to or witness or other participant in,
or is threatened to be made a party to or witness or other participant in, any
Proceeding, against any and all Expenses, including all interest, assessments
and other charges paid or payable in connection with or in respect of such
Expenses.  Subject to Section 1(b) hereof, such payment of
Expenses shall be made by the Company as soon as practicable but in any event no
later than thirty (30) days after written demand by Indemnitee therefor is
presented to the Company.

         

        
          
             

          

          
             

            
              

            

          

          
             

          

        

         

                (b)             Reviewing
Party.  Notwithstanding anything to the contrary in Sections 1(a) or
2(a) hereof:

         

        (i)           the
indemnification obligations of the Company under Section 1(a) hereof shall
be subject to the condition that the Reviewing Party shall not have determined
that Indemnitee would not be permitted to be indemnified under applicable law;
and

         

        (ii)           the
obligation of the Company to make an advance payment of Expenses to Indemnitee
pursuant to Section 2(a) hereof (an “Expense Advance”) shall be subject to
the condition that, if, when and to the extent that the Reviewing Party
determines that Indemnitee would not be permitted to be indemnified under
applicable law, the Company shall be entitled to be reimbursed by Indemnitee
(who hereby agrees to reimburse the Company) for all such amounts theretofore
paid by Company to Indemnitee; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court of
competent jurisdiction to secure a determination that Indemnitee should be
indemnified under applicable law, any determination made by the Reviewing Party
that Indemnitee would not be permitted to be indemnified under applicable law
shall not be binding and Indemnitee shall not be required to reimburse the
Company for any Expense Advance until a final judicial determination is made
with respect thereto (as to which all rights of appeal therefrom have been
exhausted or lapsed).

         

        Indemnitee’s
obligation to reimburse the Company for any Expense Advance shall be unsecured
and no interest shall be charged thereon.  If there has not been a
Change in Control, or it there has been a Change in Control which has been
approved by a majority of the directors of the Company who were directors
immediately prior to the Change in Control (the “Incumbent Directors”), the
Reviewing Party shall be selected by the Board of Directors of the Company, and
if there has been a Change in Control which has not been approved by a majority
of the Incumbent Directors, the Reviewing Party shall be the Independent Legal
Counsel.  If there has been no determination by the Reviewing Party or
if the Reviewing Party determines that Indemnitee would not be permitted to be
indemnified in whole or in part under applicable law, Indemnitee shall have the
right to commence litigation seeking an initial determination by the court or
challenging any such determination by the Reviewing Party or any aspect thereof,
including the legal or factual bases therefor, and the Company hereby consents
to service of process and to appear in any such proceeding. Any determination by
the Reviewing Party otherwise shall be conclusive and binding on the Company and
Indemnitee.

         

        (c)             Contribution .  If the
indemnification obligations of the Company under Section 1(a) hereof shall be
held by a court of competent jurisdiction for any reason other than that set
forth in Section 8(a) hereof to be unavailable to Indemnitee in respect of any
Expense, then the Company, in lieu of indemnifying Indemnitee thereunder, shall
contribute to the amount paid or payable by Indemnitee as a result of such
Expense (i) in such proportion as is appropriate to reflect the relative
benefits received by the Company and Indemnitee, or (ii) if the allocation
provided by clause (i) above is not permitted by applicable law, in such
proportion as is appropriate to reflect not only the relative benefits referred
to in clause (i) above but also the relative fault of the Company and Indemnitee
in connection with the action or inaction which resulted in such Expense, as
well as any other relevant equitable considerations.  The Company and
Indemnitee agree that it would not be just and equitable if contribution
pursuant to this Section 1(c) were determined by pro rata or per capita
allocation or by any other method of allocation which does not take account of
the equitable considerations referred to in the immediately preceding
sentence.

         

        
          
             

          

          
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        (d)             Mandatory Payment of
Expenses.   Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful on the merits or
otherwise, including, without limitation, the dismissal of an action without
prejudice, in defense of any Proceeding or in the defense of any claim, issue or
matter therein, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

         

        2.         Expenses; Indemnification
Procedure Advancement of Expenses.  Subject
to the terms and conditions of Section 1(b) hereof and to the extent not
prohibited by applicable law, the Company shall advance all Expenses incurred by
Indemnitee.  The advances to be made hereunder shall be paid by the
Company to Indemnitee as soon as practicable but in any event no later than
thirty (30) days after written demand by Indemnitee therefor to the
Company.

         

        (b)             Notice; Cooperation by Indemnitee.
 Indemnitee shall, as a condition precedent to Indemnitee’s right to be
indemnified under this Agreement, give the Company notice in writing as soon as
practicable of any Proceeding for which indemnification will or could be sought
under this Agreement.  In addition, Indemnitee shall give the Company
such information and cooperation as it may reasonably require and as shall be
within Indemnitee’s power.

         

        (c)             No Presumptions; Burden of
Proof

         

        (i)           For
purposes of this Agreement, the termination of any Proceeding by judgment,
order, settlement (whether with or without court approval) or conviction, or
upon a plea of nolo contendre or its equivalent, shall not create a presumption
that Indemnitee did not meet any particular standard of conduct or have any
particular belief or that a court has determined that indemnification is not
permitted by applicable law.  In addition, neither the failure of the
Reviewing Party to have made a determination as to whether Indemnitee has met
any particular standard of conduct or had any particular belief, nor an actual
determination by the Reviewing Party that Indemnitee has not met such standard
of conduct or did not have such belief, prior to the commencement of legal
proceedings by Indemnitee to secure a judicial determination that Indemnitee
should be indemnified under applicable law, shall be a defense to Indemnitee’s
claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief.

         

        
          
             

          

          
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        (ii)           In
connection with any determination by the Reviewing Party or otherwise as to
whether Indemnitee is entitled to be indemnified hereunder, the burden of proof
shall be on the Company to establish that Indemnitee is not so
entitled.

         

        (d)             Notice to Insurers.  If, at
the time of the receipt by the Company of a notice of a Proceeding pursuant to
Section 2(b) hereof, the Company has liability insurance in effect which
may cover such Proceeding, the Company shall give prompt notice of the
commencement of such Proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of Indemnitee, all amounts payable as a result of such action, suit, proceeding,
inquiry or investigation in accordance with the terms of such
policies.

         

                  (e)             Selection of
Counsel.   In the event the Company shall be obligated
hereunder to pay the Expenses of a Proceeding, the Company shall be entitled to
assume the defense of such Proceeding with counsel approved by Indemnitee, which
approval shall not be unreasonably withheld or delayed, upon the delivery to
Indemnitee of written notice of its election so to do. After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same Proceeding; provided that (i) Indemnitee
shall have the right to employ Indemnitee’s counsel in any such Proceeding at
Indemnitee’s expense and (ii) if (A) the employment of counsel by
Indemnitee has been previously authorized by the Company, (B) Indemnitee
shall have reasonably concluded that there is a conflict of interest between the
Company and Indemnitee in the conduct of any such defense, or (C) the
Company shall not continue to retain such counsel to defend such Proceeding,
then the fees and expenses of Indemnitee’s counsel shall be at the expense of
the Company.  The Company shall have the right to conduct such defense
as it sees fit in its sole discretion, provided that the Company has the right
to settle any claim against Indemnitee only with the consent of Indemnitee,
which shall not be unreasonably withheld or delayed.

         

        
          
            
            

          

          
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        3.         Scope; Nonexclusivity
Scope.   It is understood
that the parties to this Agreement intend for this Agreement to be interpreted
and enforced so as to provide indemnification and advancement of Expenses to
Indemnitee to the fullest extent now or hereafter permitted by law, subject only
to the express exceptions and limitations otherwise set forth in this
Agreement.  In the event of any change after the date of this
Agreement in any applicable law, statute or rule which expands the right of the
Company to indemnify a member of the Board of Directors or an officer, employee,
agent or fiduciary of the Company or any Subsidiary, as applicable, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits afforded by such change.  In the event of any change
in any applicable law, statute or rule which narrows the right of the Company to
indemnify a member of the Board of Directors or an officer, employee, agent or
fiduciary of the Company or any Subsidiary, as applicable, such change, to the
extent not otherwise required by such law, statute or rule to be applied to this
Agreement, shall have no effect on this Agreement or the parties’ rights and
obligations hereunder.

         

        (b)             Nonexclusivity.   The
indemnification and advancement of Expenses provided by this Agreement shall be
in addition to any rights to which Indemnitee may be entitled under the charter
documents of the Company or any Subsidiary, any agreement, any vote of
stockholders or disinterested directors, the General Corporation Law of the
State of Delaware, or otherwise. 

         

        4.         No Duplication of Payments. The
Company shall not be liable under this Agreement to make any payment in
connection with any Proceeding against Indemnitee to the extent Indemnitee has
otherwise actually received payment (under any insurance policy, charter
documents of the Company or any Subsidiary or otherwise) of the amounts
otherwise indemnifiable hereunder.

         

        5.         Partial Indemnification.  If
Indemnitee is entitled under any provision of this Agreement to indemnification
by the Company for some or a portion of Expenses incurred in connection with any
Proceeding, but not for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which
Indemnitee is entitled.

         

        6.         Mutual
Acknowledgement.  Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors, officers, employees, agents or
fiduciaries under this Agreement or otherwise.  Indemnitee understands
and acknowledges that the Company may be required in the future to undertake
with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company’s right under public policy to indemnify Indemnitee.

         

        7.         Maintenance of Liability Insurance.
The Company shall, from time to time, make the good faith determination whether
or not it is practicable for the Company to obtain and maintain a policy or
policies of insurance with reputable insurance companies providing the officers
and directors of the Company with coverage for losses from wrongful acts, or to
ensure the Company’s performance of its indemnification obligations under this
Agreement.  Among other considerations, the Company will weigh the
costs of obtaining such insurance coverage against the protection afforded by
such coverage.  In all policies of director and officer liability
insurance, Indemnitee shall be named as an insured in such a manner as to
provide Indemnitee the same rights and benefits as are accorded to the most
favorably insured of the Company’s directors, if Indemnitee is a director, or of
the Company’s officers, if Indemnitee is not a director of the Company but is an
officer.  Notwithstanding the foregoing, the Company shall have no
obligation to obtain or maintain such insurance if the Company determines in
good faith that such insurance is not reasonably available, if the premium costs
for such insurance are disproportionate to the amount of coverage proved, if the
coverage provided by such insurance is limited by exclusions so as to provide an
insufficient benefit, or if Indemnitee is covered by similar insurance
maintained by a parent or Subsidiary of the Company

         

        
          
             

          

          
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        8.         Exceptions.  Notwithstanding
anything to the contrary herein other than Section 1(d) hereof, the Company
shall not be obligated pursuant to the terms of this
Agreement:

         

        Notwithstanding
anything to the contrary herein other than Section 1(d) hereof, the Company
shall not be obligated pursuant to the terms of this Agreement:

         

        (a)             Unlawful Claims.  To
indemnify Indemnitee with respect to any Proceeding if a final decision by a
court having jurisdiction shall have determined that such indemnification is not
lawful;

         

        To
indemnify Indemnitee with respect to any Proceeding if a final decision by a
court having jurisdiction shall have determined that such indemnification is not
lawful;

         

        (b)             Proceedings Initiated by
Indemnitee.  To indemnify or advance Expenses to Indemnitee with
respect to Proceedings initiated or brought voluntarily by Indemnitee and not by
way of defense, except (i) with respect to any Proceeding (x) brought
to establish or enforce a right to indemnification or advancement of Expenses
under this Agreement, or any other agreement, or insurance policy, or the
charter documents of the Company or any Subsidiary, now or hereafter in effect
relating to any Proceeding, or (y) specifically authorized by the Board of
Directors, or (ii) as otherwise required under Section 145 of the
Delaware General Corporation Law, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advance expense payment or
insurance recovery, as the case may be; provided, however, that such
indemnification or advancement of Expenses may be provided by the Company in
specific cases if the Board of Directors determines it to be
appropriate;

         

        (c)             Claims Under Section 16(b). 
To
indemnify Indemnitee for Expenses, judgments, fines or penalties sustained in
any Proceeding for an accounting of profits arising from the purchase and sale
by Indemnitee of securities of the Company in violation of Section 16(b) of
the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), rules and regulations promulgated thereunder, or
any similar provisions of any federal, state or local statute;
or

         

        (d)             Lack of Good Faith.   To
indemnify Indemnitee for any Expenses incurred by Indemnitee with respect to any
Proceeding instituted by Indemnitee to enforce or interpret this Agreement, if a
court of competent jurisdiction determines that each of the material assertions
made by Indemnitee in such Proceeding was not made in good faith or was
frivolous.

         

        9.         Period of Limitations. No legal action
shall be brought and no cause of action shall be asserted by or in the right of
the Company against Indemnitee, Indemnitee’s estate, spouse, heirs, executors or
personal or legal representatives after the expiration of three (3) years from
the date of accrual of such cause of action, and any claim or cause of action of
the Company shall be extinguished and deemed released unless asserted by the
timely filing of a legal action within such three-year period; provided,
however, that if any shorter period of limitations is otherwise applicable to
any such cause of action, such shorter period shall govern. 

         

        
          
            
            

          

          
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        10.         Construction of Certain Terms and
Phrases.  As used
in this Agreement, the following terms and phrases shall have the meanings set
forth below:

         

            (a)             A
“Change in Control” shall be deemed to have occurred if (i) any “person” (as
such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities under an employee benefit
plan of the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company, (A) who is or becomes the beneficial
owner, directly or indirectly, of securities of the Company representing 10% or
more of the combined voting power of the Company’s then outstanding Voting
Securities, increases his beneficial ownership of such securities by 5% or more
over the percentage so owned by such person, or (B) becomes the “beneficial
owner” (as defined in Rule 13d-3 under said Act), directly or indirectly,
of securities of the Company representing more than 20% of the total voting
power represented by the Company’s then outstanding Voting Securities,
(ii) during any period of two consecutive years, individuals who at the
beginning of such period constitute the Board of Directors of the Company and
any new director whose election by the Board of Directors or nomination for
election by the Company’s stockholders was approved by a vote of at least
two-thirds of the directors then still in office who either were directors at
the beginning of the period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority thereof,
or (iii)  the stockholders of the Company approve a merger or consolidation
of the Company with any other corporation other than a merger or consolidation
which would result in the Voting Securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving
entity) at least 80% of the total voting power represented
by the Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or the stockholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series of
transactions) all or substantially all of the Company’s assets.

         

        (b)             References
to the “Company” shall include, in addition to the resulting corporation, any
constituent corporation (including any constituent of a constituent) absorbed in
a consolidation or merger which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers, employees,
agents or fiduciaries, so that if Indemnitee is or was a director, officer,
employee, agent or fiduciary of such constituent corporation, or is or was
serving at the request of such constituent corporation as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint venture,
employee benefit plan, trust or other enterprise, Indemnitee shall stand in the
same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

         

        
          
            
            

          

          
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        (c)             “Expense”
shall include any and all expenses (including attorneys’ fees and all other
costs, expenses and obligations incurred in connection with investigating,
defending, being a witness in or participating in (including on appeal), or
preparing to defend, be a witness in or participate in, a Proceeding),
judgments, fines, penalties and amounts paid in settlement (if such settlement
is approved in advance by the Company, which approval shall not be unreasonably
withheld or delayed) of a Proceeding, and any federal, state, local or foreign
taxes imposed on Indemnitee as a result of the actual or deemed receipt of any
payments under this Agreement.

         

        (d)             “Independent
Legal Counsel” shall mean an attorney or firm of attorneys who shall not have
otherwise performed services for the Company or Indemnitee within the last three
years (other than with respect to matters concerning the rights of Indemnitee
under this Agreement, or of other indemnitees under similar indemnity
agreements).  Independent Legal Counsel shall be selected as
follows:  (i) by a majority of the Disinterested Directors if there
has not been a Change in Control or if there has been a Change in Control which
has been approved by a majority of the Incumbent Directors; or (ii) by
Indemnitee, subject to the approval by a majority of the Disinterested Directors
(which shall not be unreasonably withheld), if there has been a Change in
Control which has not been approved by a majority of the Incumbent
Directors.  The Company agrees to pay the reasonable fees of the
Independent Legal Counsel, regardless of which party selects the Independent
Legal Counsel.

         

        (e)             References
to “other enterprises” shall include employee benefit plans; references to
“fines” shall include any excise taxes assessed on Indemnitee with respect to an
employee benefit plan; and references to “serving at the request of the Company”
shall include any service as a director, officer, employee, agent or fiduciary
of the Company which imposes duties on, or involves services by, such director,
officer, employee, agent or fiduciary with respect to an employee benefit plan,
its participants or its beneficiaries.

        (f)             “Proceeding”
shall mean any threatened, pending or completed action, suit, proceeding or
alternative dispute resolution mechanism, or any hearing, inquiry or
investigation that Indemnitee in good faith believes might lead to the
institution of any such action, suit, proceeding or alternative dispute
resolution mechanism, whether brought by or in the right of the Company or any
Subsidiary or otherwise, and whether civil, criminal, administrative,
investigative or other, in which Indemnitee was or is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or
witness or other participant by reason of (or arising in part out of) any event
or occurrence related to the fact that Indemnitee is or was a director, officer,
employee, agent or fiduciary of the Company or any Subsidiary, or is or was
serving at the request of the Company or any Subsidiary as a director, officer,
employee, agent or fiduciary of another corporation, partnership, joint venture,
trust or other enterprise, or by reason of any action or inaction on the part of
Indemnitee while
serving in such capacity.

         

        (g)             “Reviewing
Party” shall mean (i) the Board of Directors acting by a majority vote of
the directors who are not and were not parties to the Proceeding in respect of
which indemnification is being sought (the “Disinterested Directors”),
(ii) a committee of some or all of the Disinterested Directors designated
by a majority vote of the Disinterested Directors, or (iii) Independent
Legal Counsel.

         

        
          
            
            

          

          
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        (h)             “Subsidiary”
shall mean any corporation or other entity of which more than 50% of the
outstanding Voting Securities is owned directly or indirectly by the Company, by
the Company and one or more other Subsidiaries, or by one or more other
Subsidiaries.

         

        (i)             “Voting
Securities” shall mean any securities of the Company that vote generally in the
election of directors.

         

        11.   Counterparts: This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original.

         

        This
Agreement may be executed in one or more counterparts, each of which shall
constitute an original.

         

        12.      Binding Effect; Successors and
Assigns.  This
Agreement shall be binding upon and inure to the benefit of and be enforceable
by the parties hereto and their respective successors (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business and/or assets of the Company), assigns,
spouses, heirs, and personal and legal representatives. The Company shall
require and cause any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of
the business and/or assets of the Company, by written agreement in form and
substance reasonably satisfactory to Indemnitee, expressly to assume and agree
to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place. This
Agreement shall continue in effect with respect to any Proceeding regardless of
whether Indemnitee continues to serve as a director, officer, employee, agent or
fiduciary of the Company, any Subsidiary or any other enterprise at the
Company’s request.

         

             
13.     Attorneys’ Fees.  In the event
that any action is instituted by Indemnitee under this Agreement or under any
liability insurance policies maintained by the Company to enforce or interpret
any of the terms hereof or thereof, Indemnitee shall be entitled to be paid all
expenses incurred by Indemnitee with respect to such action, regardless of
whether Indemnitee is ultimately successful in such action, and shall be
entitled to the advancement of such expenses with respect to such action,
unless, as a part of such action, a court of competent jurisdiction over such
action determines that each of the material assertions made by Indemnitee as a
basis for such action was not made in good faith or was frivolous. In the event
of an action instituted by or in the name of the Company under this Agreement to
enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all expenses incurred by Indemnitee in defense of such
action (including costs and expenses incurred with respect to Indemnitee
counterclaims and cross-claims made in such action), and shall be entitled to
the advancement of such expenses with respect to such action, unless, as a part
of such action, a court having jurisdiction over such action determines that
each of Indemnitee’s material defenses to such action was not made in good faith
or was frivolous.

         

        14.            Notice. All notices and other
communications required or permitted hereunder shall be in writing, shall be
effective when received, and shall in any event be deemed to be received
(a) five (5) days after deposit with the U.S. Postal Service or other
applicable postal service, if delivered by certified or registered mail, postage
prepaid, (b) upon delivery, if delivered by hand, (c) one business day
after the business day of deposit with Federal Express or similar overnight
courier, freight prepaid, or (d) one day after the business day of delivery by
facsimile transmission, if delivered by facsimile transmission, with copy by
first class mail, postage prepaid, and shall be addressed if to Indemnitee, at
Indemnitee’s address as set forth beneath Indemnitee’s signature to this
Agreement and if to the Company at the address of its principal corporate
offices (attention: Secretary) or at such other address as a party may designate
by ten days’ advance written notice to the other party hereto.

         

        
          
            
            

          

          
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        15.              Headings. The
headings used in this Agreement have been inserted for convenience of reference
only and do not define or limit the provisions hereof.

         

        16.              Severability. The
provisions of this Agreement shall be severable in the event that any of the
provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or
otherwise unenforceable, and the remaining provisions shall remain enforceable
to the fullest extent permitted by law. Furthermore, to the fullest extent
possible, the provisions of this Agreement (including, without limitations, each
portion of this Agreement containing any provision held to be invalid, void or
otherwise
unenforceable, that is not itself invalid, void or unenforceable) shall be
construed so as to give effect to the intent manifested by the provision held
invalid, illegal or unenforceable.

         

        17.              Choice of
Law. This
Agreement shall be governed by and its provisions construed and enforced in
accordance with the laws of the State of Delaware, as applied to contracts
between Delaware residents, entered into and to be performed entirely within the
State of Delaware, without regard to the conflict of laws principles
thereof.

         

        18.              Subrogation. In the
event of payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee who shall
execute all documents required and shall do all acts that may be necessary to
secure such rights and to enable the Company effectively to bring suit to
enforce such rights.

         

        19.              Amendment and
Termination. No
amendment, modification, termination or cancellation of this Agreement shall be
effective unless it is in writing signed by both the parties hereto. No waiver
of any of the provisions of this Agreement shall be deemed or shall constitute a
waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver.

         

        20.              Integration and Entire
Agreement. This
Agreement sets forth the entire understanding between the parties hereto and
supersedes and merges all previous written and oral negotiations, commitments,
understandings and agreements relating to the subject matter hereof between the
parties hereto.

         

        21.              No Construction as
Employment Agreement. Nothing
contained in this Agreement shall be construed as giving Indemnitee any right to
be retained in the employ of the Company or any of its
Subsidiaries.

         

        

         

        

         

        [SIGNATURE
PAGE FOLLOWS]

         

        
          
             

          

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

         

        WELLCARE
HEALTH PLANS, INC.

         

        By:  /s/  Heath Schiesser

        Name:    Heath Schiesser

        Title:  President
& CEO

         

        AGREED TO
AND ACCEPTED BY:

         

        Signature:  /s/  Thomas F. O'Neil
III   

        Name:  Thomas F. O’Neil
III                                                                

        Address: 108 St. Dunstan's Road

        Baltimore, Maryland
21212

         

        
          
             

          

          
            -11
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