Document:

EX-10.5

Exhibit 10.5

AMENDMENT NO. 1 TO

EXECUTIVE EMPLOYMENT AGREEMENT

THIS AMENDMENT TO THE EXECUTIVE EMPLOYMENT AGREEMENT (this “Amendment”) by and between
AMERIGROUP CORPORATION, a Delaware corporation (the “Company”) and James G. Carlson (“Executive”),
is made as of November 6, 2008.

WHEREAS, the Company and Executive are parties to that certain Executive Employment Agreement
dated as of January 16, 2008 (the “Agreement”);

WHEREAS, the Company and Executive wish to amend the Agreement as set forth below to comply
with Section 409A of the Internal Revenue Code; and

WHEREAS, the Company and the Executive may amend the Agreement by a signed writing;

NOW, THEREFORE, the Agreement is hereby amended as follows:

	1.	 	The first sentence of Section 4(b)(i)(A) of the Agreement is hereby deleted in its entirety
and replaced with the following sentence:

Subject to Sections 4(b)(i)(B) and 4(d) hereof, in the event that (x) the Company
terminates Executive’s employment pursuant to Section 4(a)(i) (Without Cause), or (y)
Executive terminates his employment pursuant to Section 4(a)(iv) (For Changed
Circumstances), the Company shall, on the sixtieth (60th) day following
Executive’s effective date of termination, pay Executive a cash amount equal to the sum
of (aa) all Base Salary which has accrued as of the date of Executive’s termination and
is then unpaid and any cash bonus under Section 3(c) that has been awarded by the Board
and is then unpaid, (bb) the value (based on Executive’s then-current Base Salary) of
paid annual leave which has accrued through the effective date of Executive’s
termination and is then unused, and (cc) the Special Separation Payment (defined below).

	2.	 	Section 4(b)(i)(B) is hereby deleted in its entirety and replaced with the following:

Notwithstanding the foregoing, the Company’s obligation to pay Executive any amount in
respect of the Special Separation Payment shall be contingent upon Executive’s execution
and delivery (and, if applicable, timely non-revocation) of a Severance Agreement (with
terms that are not inconsistent with the terms of this Agreement) and the Company’s
standard form of general release within fifty-two (52) days following the date of
Executive’s termination of employment.

	3.	 	Section 4(b)(ii) of the Agreement is hereby deleted in its entirety and replaced with the
following:

In the event that Executive’s employment terminates pursuant to Section 4(a)(v) (Death
or Permanent Disability), the Company shall pay Executive or his estate the same amount
that is payable pursuant to Section 4(b)(i)(A), including the limitations applicable to
termination during the Protected Period (as defined in the Company’s Change in Control
Benefit Policy), provided (x) in the case of termination related to death, such amount
shall be reduced by all amounts payable to Executive’s beneficiaries pursuant to life
insurance policies on Executive’s life (group term or otherwise) maintained by the
Company, and shall be paid within thirty (30) days of Executive’s death (but not earlier
than the effective date of the release of claims described in clause (z) below), (y) in
the case of termination related to Executive being Permanently Disabled, such amount
shall be paid in full on the first day of the first month following the month in which
such termination became effective (but not earlier than the effective date of the
release of claims described in clause (z) below), provided such amount shall be reduced
by the present value as calculated by the Company using the prime rate (as announced by
the Company’s primary lending institution as of the date of determination of the
Permanent Disability) as the discount rate for such calculation, of any monthly
disability benefit that will be payable to Executive during the first twenty-four (24)
months of disability, under any disability insurance coverage provided to Executive by
the Company (group or individual), and (z) the Company’s obligation to pay Executive or
his estate any amount pursuant to this Section 4(b)(ii) shall be contingent upon
Executive’s (or his personal representative’s), or the personal representative of
Executive’s estate, execution and delivery to the Company of a Severance Agreement (with
terms that are not inconsistent with the terms of this Agreement) and the Company’s
standard form of general release within fifty-two (52) days following the date of
Executive’s termination of employment; provided, however, that if
Executive’s termination of employment because of death or Permanent Disability, as the
case may be, occurs after October during any year, payment shall be made not earlier
than the first day of the next following year.

	4.	 	Section 4(b)(v) of the Agreement is hereby deleted in its entirety and replaced with the
following:

Upon the effective date of any termination of Executive’s employment hereunder (without
regard to whether the termination constitutes a “separation from service” within the
meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”)),
Executive shall be deemed to have resigned from the Board and any and all offices and
other positions held by Executive in the Company and/or any of its affiliates and upon
the Company’s request, Executive shall confirm such resignation in writing.

	5.	 	A new Section 4(d) is hereby added to the Agreement to read in its entirety as follows:

Conditions to Payment and Acceleration; Section 409A. The intent of the parties
is that payments and benefits under this Agreement comply with Section 409A of the Code
(“Section 409A”) to the extent subject thereto, and, accordingly, to the maximum extent
permitted, this Agreement shall be interpreted and administered to be in compliance
therewith. Notwithstanding anything contained herein to the contrary (other than as
expressly provided in Section 4(b)(v)), the Executive shall not be considered to have
terminated employment with the Company for purposes of this Agreement unless the
Executive would be considered to have incurred a “separation from service” from the
Company within the meaning of Section 409A. Each amount to be paid or benefit to be
provided under this Agreement shall be construed as a separate identified payment for
purposes of Section 409A, and any payments described in Section 4 of this Agreement that
are due within the “short term deferral period” within the meaning of Section 409A shall
not be treated as deferred compensation unless applicable law requires otherwise. If
current or future regulations or guidance from the Internal Revenue Service dictates, or
the Company’s counsel determines in accordance with applicable law or regulations, that
any payments or benefits due to the Executive hereunder would cause the application of
an accelerated or additional tax under Section 409A of the Internal Revenue Code,
amounts that would otherwise be payable and benefits that would otherwise be provided
pursuant to this Agreement during the six-month period immediately following the
Executive’s termination of employment shall instead be paid on the first business day
after the date that is six months following the Executive’s termination of employment
(or upon the Executive’s death, if earlier). To the extent required to avoid an
accelerated or additional tax under Section 409A, amounts reimbursable to Executive
under this Agreement shall be paid to Executive on or before the last day of the year
following the year in which the expense was incurred and the amount of expenses eligible
for reimbursement (and in-kind benefits provided to Executive) during any one year may
not effect amounts reimbursable or provided in any subsequent year; provided,
however, that with respect to any reimbursements for any taxes which Executive
would become entitled to under the terms of the Agreement, the payment of such
reimbursements shall be made by the Company no later than the end of the calendar year
following the calendar year in which Executive remits the related taxes.

	6.	 	This Amendment shall be governed by, interpreted under and construed in accordance with the
laws of the Commonwealth of Virginia.

	7.	 	Except as modified by this Amendment, the Agreement is hereby confirmed in all respects.

[signature page follows]

1

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date and the
year first written above.

AMERIGROUP CORPORATION,

a Delaware corporation

	 	 	 
	/s/ Stanley F. Baldwin

	 	

	 

	 	 
	By: Stanley F. Baldwin

	 	

Title: Executive Vice President, General Counsel

and Secretary

EXECUTIVE:

/s/ James G. Carlson

	 	 	JAMES G. CARLSON

2EX-10.6

Exhibit 10.6

AMERIGROUP CORPORATION

SEVERANCE PLAN

Effective July 30, 2008

TABLE OF CONTENTS

Page

	 	 	 	 	 	 	 	 	 
	INTRODUCTION
	 	 	 	 	 	 	1	 
	ARTICLE IDEFINITIONS
	 	 	 	 	 	 	2	 
	1.01.
	 	Administrator	 	 	2	 
	1.02.
	 	Agreement and Release	 	 	2	 
	1.03.
	 	Base Pay	 	 	2	 
	1.04.
	 	Board	 	 	2	 
	1.05.
	 	Change in Control Benefits Policy	 	 	2	 
	1.06.
	 	Code	 	 	2	 
	1.07.
	 	Committee	 	 	2	 
	1.08.
	 	Company	 	 	2	 
	1.09.
	 	Compensation Committee	 	 	2	 
	1.10.
	 	Effective Date	 	 	3	 
	1.11.
	 	Eligible Employee	 	 	3	 
	1.12.
	 	Employee	 	 	3	 
	1.13.
	 	ERISA	 	 	3	 
	1.14.
	 	Fiduciary	 	 	3	 
	1.15.
	 	Named Fiduciary	 	 	3	 
	1.16.
	 	Participant	 	 	3	 
	1.17.
	 	Plan	 	 	3	 
	1.18.
	 	Plan Year	 	 	4	 
	1.19.
	 	Separation Date	 	 	4	 
	1.20.
	 	Subsidiary	 	 	4	 
	1.21.
	 	Year of Service	 	 	4	 
	ARTICLE IIPARTICIPATION
	 	 	4	 
	2.01.
	 	Participation Requirements	 	 	4	 
	2.02.
	 	Determination of Eligibility for Participation	 	 	5	 
	ARTICLE IIIBENEFITS
	 	 	 	 	 	 	5	 
	3.01.
	 	Severance Pay	 	 	5	 
	3.02.
	 	Other Benefits	 	 	6	 
	ARTICLE IVAMENDMENT AND TERMINATION
	 	 	6	 
	4.01.
	 	Amendment	 	 	6	 
	4.02.
	 	Termination	 	 	6	 
	ARTICLE VADMINISTRATION
	 	 	7	 
	5.01.
	 	Named Fiduciaries, Allocation of Responsibility	 	 	7	 
	5.02.
	 	Administrator Powers and Duties	 	 	7	 
	5.03.
	 	Records and Reports	 	 	8	 
	5.04.
	 	Payment of Expenses	 	 	8	 
	5.05.
	 	Limitation of Liability	 	 	8	 
	5.06.
	 	Claims	 	 	9	 
	5.07.
	 	Fiduciary Discretion	 	 	11	 
	ARTICLE VIGENERAL PROVISIONS
	 	 	11	 
	6.01.
	 	Construction	 	 	11	 
	6.02.
	 	Governing Law	 	 	11	 
	6.03.
	 	Plan Creates No Separate Rights	 	 	11	 
	6.04.
	 	Mistake-of-Fact Contributions	 	 	12	 
	6.05.
	 	Non-Alienation of Benefits	 	 	12	 
	6.06.
	 	Action by Company	 	 	12	 

INTRODUCTION

The AMERIGROUP Corporation Severance Plan (the Plan) was established, effective July 30, 2008,
by AMERIGROUP Corporation in order to assist Eligible Employees upon termination of employment from
the Company in certain circumstances. The Plan provides severance benefits to Eligible Employees
who become Participants.

The Plan is intended to be a “welfare plan,” but not a “pension plan,” as defined in ERISA
sections 3(1) and 3(2), respectively. The Plan must be interpreted and administered in a manner
that is consistent with that intent.

1

ARTICLE I

DEFINITIONS

	 	 	 
	1.01.	 	Administrator
	
 
	 	Administrator means the Committee.
	1.02.

	 	Agreement and Release
	
 
	 	 

Agreement and Release means the form required by the Administrator that must be executed by a
Participant in accordance with Plan section 2.01 to be eligible for benefits under the Plan.

1.03. Base Pay

Base Pay means a Participant’s regular base salary as in effect on his Separation Date,
excluding commissions and bonuses.

	 	 	 
	1.04.	 	Board
	
 
	 	Board means the Company’s board of directors or other governing body.
	1.05.

	 	Change in Control Benefits Policy
	
 
	 	 

Change in Control Benefits Policy means the Company’s Change in Control Benefits Policy,
originally effective February 12, 2007, as amended and restated July 30, 2008 and November 6, 2008,
and as subsequently amended from time to time.

	 	 	 
	1.06.	 	Code
	
 
	 	Code means the Internal Revenue Code of 1986, as amended at any relevant time.
	1.07.

	 	Committee
	
 
	 	 
	
 
	 	Committee means the Company’s Benefit Appeals Committee.
	1.08.

	 	Company
	
 
	 	 

Company means AMERIGROUP Corporation, a Delaware corporation, its successor and its
Subsidiaries.

	 	 	 
	1.09	 	Compensation Committee
	
 
	 	Compensation Committee means the Compensation Committee of the Board.
	1.10.

	 	Effective Date
	
 
	 	 
	
 
	 	Effective Date means July 30, 2008.
	1.11.

	 	Eligible Employee
	
 
	 	 

Eligible Employee means all full-time and part-time benefits eligible Employees (determined in
accordance with the Company’s established payroll accounting and personnel policies), provided,
however, that an Employee with an individual employment agreement between the Employee and the
Company is not an Eligible Employee.

1.12. Employee

Employee means an individual who renders personal services to the Company and who is subject
to the control of the Company. An individual who is in an employer-employee relationship with a
Company as determined for Federal Insurance Contribution Act purposes and Federal Employment Tax
purposes, including Code section 3401(c), automatically satisfies the preceding sentence’s
requirements for determinations of whether that individual renders personal services and is subject
to the control of a Company. Individuals designated by the Company as independent contractors are
not Employees for purposes of the Plan.

1.13. ERISA

ERISA means the Employee Retirement Income Security Act of 1974, as amended at any relevant
time.

1.14. Fiduciary

Fiduciary means a fiduciary, as defined in ERISA section 3(21)(A).

1.15. Named Fiduciary

Named Fiduciary means a named fiduciary, as defined in ERISA section 402(a)(2).

1.16. Participant

Participant means an Eligible Employee who has satisfied the participation requirements
provided in Plan article II.

1.17. Plan

Plan means the AMERIGROUP Corporation Severance Plan as amended from time to time.

1.18. Plan Year

Plan Year means the twelve-month period beginning each January 1 and ending each December 31.
For the period beginning July 30, 2008, Plan Year means the period from July 30, 2008, through
December 31, 2008.

1.19. Separation Date

Separation Date means the date that an Eligible Employee’s employment with the Company
terminates.

1.20. Subsidiary

Subsidiary means any corporation, partnership, limited liability company or other entity
(other than the Company) in an unbroken chain of corporations, partnerships, limited liability
companies or other entities beginning with the Company, if each such entity (other than the last
entity) in the unbroken chain owns securities possessing 50% or more of the total combined voting
power of all classes of securities in one of the other entities in the chain.

1.21. Year of Service

Year of Service means each completed twelve consecutive month period commencing on the
Participant’s date of employment. No fractional or partial Years of Service shall be credited
under the Plan.

ARTICLE II

PARTICIPATION

2.01. Participation Requirements

(a) Subject to subsections (b), (c) and (d) below, an Eligible Employee becomes a Participant
if his or her employment with the Company is terminated after the Effective Date for reasons other
than for cause (as determined by the Administrator in its sole and absolute discretion) or death.

(b) An Eligible Employee’s entitlement to benefits under the Plan is subject to the execution
of an Agreement and Release in the time and manner specified by the Administrator.

(c) If an Eligible Employee’s employment is terminated during the Protected Period (as defined
below) following a Change in Control (as defined below), and such termination would entitle the
Eligible Employee to receive Severance Payments (as defined below) under the Change in Control
Benefit Policy, then the Eligible Employee shall not be eligible to participate and receive
benefits under the Plan. For purposes of this Plan section 2.01(c), the terms “Change in Control”,
“Protected Period” and “Severance Payments” shall have meaning ascribed to them in the Change in
Control Benefits Policy.

(d) An Eligible Employee whose position with the Company was selected for elimination prior to
the Effective Date is not entitled to benefits under the Plan, even if such Eligible Employee
remained employed for a period of time after the Effective Date or was not notified of the
elimination of such Eligible Employee’s position until after the Effective Date.

2.02. Determination of Eligibility for Participation

(a) The Administrator must determine each person’s eligibility for participation in this Plan.
All good-faith determinations by the Administrator are conclusive and binding on all persons for
the plan year in question, and there is no right of appeal.

(b) An Eligible Employee who has been offered and accepted employment in another position with
the Company, or any of its affiliates, will become ineligible to receive the Severance Payments
described herein.

ARTICLE III

BENEFITS

3.01. Severance Pay

(a) Severance Amount. The amount of a Participant’s severance pay benefits shall be
determined by multiplying such Participant’s weekly Base Pay times the number of weeks of severance
determined pursuant to Exhibit I, attached hereto. Severance pay benefits shall be subject to such
conditions as the Administrator shall, in its sole discretion determine; provided that no award may
exceed two times the applicable Participant’s annual compensation during the calendar year
preceding the year of the Participant’s Separation Date. A Participant shall be entitled to
benefits under this Article III to the extent that such Participant has signed and delivered to the
Administrator an Agreement and Release in the form provided by and in the time and manner
satisfactory to the Administrator.

(b) Form and Time of Payment. Severance pay provided under this Plan section will be paid in
a single sum (less any applicable federal, state, and local income or employment taxes) within 30
days after the Participant’s proper and timely execution of an Agreement and Release.

(c) Bonus Payment.

(i) If the Participant’s Separation Date is before the date in a calendar year in which
a bonus for the prior calendar year is paid, such Participant shall be entitled to a bonus
for such prior calendar year, payable at the Participant’s target bonus level but only to
the extent accrued for such year and in no event to exceed Participant’s target bonus level.
The Participant will not be eligible for a bonus with respect to the calendar year that
includes his Separation Date.

(ii) If the Participant’s Separation Date is after the date in a calendar year in which
a bonus for the prior calendar year has been paid, such Participant shall be eligible for a
bonus for the calendar year that includes his Separation Date equal to one-half of the
target bonus for such year.

(iii) The payment of the bonus described in (i) above shall be payable only and to the
extent of the payment of similar bonuses to active Employees for such calendar year.

3.02. Other Benefits

(a) Paid Accumulated Leave (“PAL”). A Participant is entitled to payment on account of any
PAL that is accrued but has not been used as of the Participant’s Separation Date. The benefits
provided under this Plan section, less applicable federal, state, and local income and employment
taxes, will be paid as soon as practicable after the Participant’s Separation Date.

(b) Outplacement. To the extent authorized by the Administrator, a Participant may be
entitled to reasonable outplacement assistance, as defined in Section 409A of the Internal Revenue
Code, based on the Company’s three-tier management levels and in the amount determined by the
Administrator.

(c) COBRA. A Participant who properly elects continuation coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1985 (“COBRA”) shall be entitled to a partial subsidy equal to
the subsidy provided to active Employees under the Company’s group health plan for the number of
weeks used in Exhibit I to calculate his or her severance pay benefit or for the period he or she
elects COBRA coverage, whichever is less. The COBRA subsidy is the same subsidy the Company
provides directly to the COBRA vendor on behalf of an active Employee.

ARTICLE IV

AMENDMENT AND TERMINATION

4.01. Amendment

By action of the Compensation Committee, the Company may modify, alter, or amend the Plan, in
whole or in part. An amendment may be made retroactively if it is necessary to make this Plan
conform to applicable law.

4.02. Termination

(a) By action of the Compensation Committee, the Company may terminate the Plan at any time or
for any reason.

(b) If the Company no longer exists (by merger, consolidation, reorganization of the Company,
or otherwise), the Plan terminates unless a successor to the Company continues it.

2

ARTICLE V

ADMINISTRATION

5.01. Named Fiduciaries, Allocation of Responsibility

(a) The Company and the Administrator are Named Fiduciaries. Each is severally liable for its
responsibilities.

(b) The Administrator has only the responsibilities described in this Plan and those delegated
by the Company.

(c) All responsibilities not specifically delegated to another Named Fiduciary remain with the
Company, including designating all Named Fiduciaries not named in this Plan. The Company’s
responsibilities include drafting and designing the Plan and the amendments to it; funding
according to the Plan’s terms; and designating all additional Fiduciaries not named in this Plan.
The Company has the power to delegate fiduciary responsibilities that the Plan does not
specifically delegate. A delegation may be made to any legal person. Each person to whom
fiduciary responsibility is delegated serves at the Company’s pleasure and for the compensation
that the Company and that person determine in advance, except as prohibited by law. A person to
whom responsibility is delegated may resign after thirty (30) days’ notice to the Company. The
Company may make additional delegations, including delegations occasioned by resignation, death, or
other cause, and including delegations to successor Administrators.

(d) This Plan allocates to each Named Fiduciary the individual responsibilities assigned.
Named Fiduciaries do not share responsibilities unless the Plan so provides.

(e) Whenever the Plan requires one Named Fiduciary to follow the directions of another Named
Fiduciary, the two have not been assigned to share the responsibility. The Named Fiduciary giving
directions bears the sole responsibility for those directions, and the responsibility of the Named
Fiduciary receiving those directions is to follow directions as long as on their face the
directions are not improper under applicable law.

5.02. Administrator Powers and Duties

The Administrator must administer the Plan by its terms and has all powers necessary to do so.
The Administrator is agent for service of legal process unless it designates another person to be
agent for service of legal process. The Administrator must interpret the Plan. The
Administrator’s duties include, but are not limited to determining the answers to all questions
relating to the Employees’ eligibility to become Participants.

A determination that the Administrator makes in good faith is conclusive and binding on all
persons. The Administrator’s decisions, however, may not take away any rights that the Plan
specifically gives to a Participant. If an individual who is the Administrator is also a
Participant, he must abstain from any action that directly affects him as a Participant in a manner
different from other similarly situated Participants. The Plan, however, does not prevent an
individual who is the Administrator who is also a Participant or a beneficiary from receiving any
benefit to which he may be entitled, if the benefit is computed and paid on a basis that is
consistently applied to all other Participants and beneficiaries.

The Administrator may employ and compensate from the Company’s assets according to Plan
section 5.04 such accountants, counsel, specialists, and other advisory and clerical persons as it
deems necessary or desirable in connection with the Plan’s administration. The Administrator is
entitled to rely conclusively on any opinions from its accountant or counsel. Except to the extent
prohibited by law, the Administrator is fully protected by the Company and the Employees and the
Participants whenever it takes action based in good faith on advice from its advisors.

5.03. Records and Reports

The Company must supply information to the Administrator sufficient to enable the
Administrator to fulfill its duties. The Administrator must keep all books of account, records,
and other data necessary for proper administration of the Plan. The Administrator may appoint any
person as agent to keep records.

5.04. Payment of Expenses

Until the Company determines otherwise, the Administrator serves without compensation. The
Company must pay the Administrator’s expenses, including any expenses incident to the functioning
of the Administrator, fees of accountants, legal counsel, and other similar specialists, and other
costs of administering the Plan.

5.05. Limitation of Liability

If permissible by law, the Administrator serves without bond. If the law requires bond, the
Administrator must secure the minimum bond required and obtain necessary payments according to Plan
section 5.04. Unless the Plan provides otherwise, the Administrator is not liable for another
Fiduciary’s act or omission. To the extent allowed by law and except as otherwise provided in the
Plan, the Administrator is not liable for any action or omission that is not the result of the
Administrator’s own negligence or bad faith.

As permitted by law and as limited by any agreement in writing between the Company and the
Administrator, the Company must indemnify and save the Administrator harmless against expenses,
claims, and liabilities arising out of being the Administrator, except expenses, claims, and
liabilities arising out of the Administrator’s or member’s own negligence or bad faith. The
Company may obtain insurance against acts or omissions of the Administrator. If the Company fails
to obtain that insurance, the Administrator may obtain insurance and must be reimbursed according
to Plan section 5.04 and as permitted by law. At its own expense, the Company may employ its own
counsel to defend or maintain, either in its own name or in the name of the Administrator, any suit
or litigation arising under the Plan concerning the Administrator.

5.06. Claims

(a) Initial Benefit Payment. It is not necessary to file a claim in order to receive
Plan benefits.

(b) Written Claims Required for Review. Subject to the Plan’s review procedures, a
request for a review of claims for benefits under this Plan generally must be made in written or
electronic form to the Administrator or to any person the Administrator designates to receive
claims. If the Administrator makes claim forms available, those forms must be used; otherwise, a
claim by a Participant communicated in writing to the Administrator or its designated reviewer is
satisfactory.

(1) Plan’s terms and conditions. On any claim for Plan benefits, a Participant
may be required to acknowledge the existence of and the terms and conditions in the Plan.
He may also be required to acknowledge that a copy of the Plan has been made available to
him. The Administrator may require a Participant to agree to abide by the terms and
conditions of this Plan.

(2) Time limit for filing claims. Each Participant shall submit claims for
Plan benefits to the Administrator within 90 days after the end of the Plan Year. Any
claims for a Plan Year that are submitted after these deadlines will not be paid.

(3) Plan’s response to initial claim for benefits. In general, on receipt of a
claim, the Administrator must respond in writing (or electronically, if applicable) within
90 days. If applicable, the first written notice to the claimant must indicate any special
circumstances requiring an extension of time for the decision. A notice of an extension of
time must indicate the date by which the Administrator expects to give a decision. An
extension of time for processing may not exceed 90 days after the end of the initial 90-day
period.

(4) Content of notice of denied claims. In general, if a claim is wholly or
partially denied, the Administrator shall give written notice within the time provided in
subsection (3) above. An adverse notice shall specify

(A) the specific reason for the denial,

(B) reference to the specific provisions of the Plan on which the denial is
based;

(C) a description of any additional material or information necessary for the
Participant to perfect the claim and an explanation of why that material or
information is necessary; and

(D) a description of the Plan’s review procedures and the time limits
applicable to such procedures, including a statement of the Participant’s right to
bring a civil action under ERISA section 502(a) following an Adverse Benefit
Determination on review.

(c) General Procedures for Appeal of Adverse Benefit Determination. In general, a
Participant shall have 60 days following receipt of a notification of an Adverse Benefit
Determination within which to appeal the determination. Participants shall have the opportunity to
submit written comments, documents, records, and other information relating to the claim for
benefits. Participants shall be provided, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the Participant’s claim
for benefits. Review of an Adverse Benefit Determination shall take into account all comments,
documents, records, and other information submitted by the Participant relating to the claim,
without regard to whether the information was submitted or considered in the initial benefit
determination.

(d) Timing of Benefit Determination on Review. In general, the Administrator shall
notify a Participant of the Plan’s benefit determination on review within 60 days after receipt of
the Participant’s request for review, unless the Administrator determines that special
circumstances (such as the need to hold a hearing, if provided for by the Plan) require an
extension of time for processing the claim. If the Administrator determines that an extension of
time for processing the claim is required, written notice of the extension shall be furnished to
the Participant prior to the termination of the initial 60-day period. In no event shall the
extension exceed a period of 60 days from the end of the initial period. The extension notice
shall indicate the special circumstances requiring an extension of time and the date by which the
Plan expects to render the determination on review.

(e) Manner and Content of Benefit Determination on Review. The Administrator shall
provide the Participant with written or electronic notification of a Plan’s benefit determination
on review. In the case of an Adverse Benefit Determination, the notification shall set forth:

(1) the specific reason or reasons for the adverse determination;

(2) a reference to the specific Plan provision on which the benefit determination is
based;

(3) a statement that the Participant is entitled to receive, upon request and free of
charge, reasonable access to, and copies of, all documents, records, and other information
relevant to the Participant’s claim for benefits; and

(4) a statement describing any voluntary appeal procedure offered by the Plan and the
Participant’s right to obtain the information about the procedures, and a statement of the
Participant’s right to bring an action under ERISA section 502(a).

(f) Determination Final. Except for a written request for a review of an Adverse
Benefit Determination, all good-faith determinations by the Administrator or other designated
reviewer are conclusive and binding on all persons, and there is no right of appeal. Any
electronic notification shall comply with the standards of ERISA section 2520.104b-1(c)(1)(i).

5.07. Fiduciary Discretion

In discharging the duties assigned to it under the Plan, each Fiduciary has the discretion to
interpret the Plan; adopt, amend and rescind rules and regulations pertaining to its duties under
the Plan; and to make all other determinations necessary or advisable for the discharge of its
duties under the Plan. Each Fiduciary’s discretionary authority is absolute and exclusive if
exercised in a uniform and nondiscriminatory manner with respect to similarly situated individuals.
The express grant in the Plan of any specific power to a Fiduciary with respect to any duty
assigned to it under the Plan must not be construed as limiting any power or authority of the
Fiduciary to discharge its duties. A Fiduciary’s decision is final and conclusive unless it is
established that the Fiduciary’s decision constituted an abuse of its discretion. Benefits under
the Plan will be paid only if the Administrator or its delegate decides in its discretion that the
applicant is entitled to them.

ARTICLE VI

GENERAL PROVISIONS

6.01. Construction

One gender includes the other, and the singular and plural include each other when the meaning
would be appropriate. The Plan’s headings and subheadings have been inserted for convenience of
reference only and must be ignored in any construction of the provisions. If a provision of this
Plan is illegal or invalid, that illegality or invalidity does not affect other provisions. Any
term with an initial capital not expected by capitalization rules is a defined term according to
Plan article I. This Plan must be construed according to the applicable provisions of the Code and
Treasury Regulations in a manner that assures that the Plan provides the benefits and tax
consequences intended for Participants. Any terms defined in the Code or Treasury Regulations in a
manner that assures that the Plan provides the benefits and tax consequences intended for
Participants. Any terms defined in the Code or Treasury Regulations that are not defined terms
according to Plan article I are incorporated in this Plan by reference.

6.02. Governing Law

This Plan is construed, enforced, and administered in accordance with the laws of the
Commonwealth of Virginia (other than its choice of law rules), except to the extent that those laws
are superseded by the laws of the United States of America.

6.03. Plan Creates No Separate Rights

The creation, continuance, or change of the Plan or any payment does not give any person a
non-statutory legal or equitable right against the Company; or any of the Company’s officers,
agents, or other persons employed by the Company. The Plan does not modify the terms of a
Participant’s employment.

6.04. Mistake-of-Fact Contributions

If the Company makes any benefit contribution because of a mistake of fact, the portion of the
benefit contribution due to the mistake of fact must be returned to the contributor, as authorized
by regulations under ERISA section 403.

6.05. Non-Alienation of Benefits

Except as permitted by law and this section, no assignment of any rights or benefits arising
under the Plan is permitted or recognized. No rights or benefits are subject to attachment or
other legal or equitable process or subject to the jurisdiction of any bankruptcy court. If any
Participant is adjudicated bankrupt or attempts to assign any benefits, then in the Company’s
discretion, those benefits cease. If that happens, the Administrator may apply those benefits for
that Participant or his dependents as the Administrator sees fit. The Company is not liable for or
subject to the debts, contracts, liabilities, or torts of any person entitled to benefits under
this Plan.

6.06. Action by Company

Any action of the Company under this Plan may be by resolution of its Board, by the
Compensation Committee or by any officer or other person with authorization from that Board or
Compensation Committee.

3

EXHIBIT I

SEVERANCE PAYMENTS

As of July 30, 2008

	 	 	 	 	 	 	 	 	 
	 	 	Employee Title/Pay Grade
	 	 	Associate	 	Manager and Above	 	VP and Above	 	EVPs and Regional
	 	 	(below Grade 21)	 	(including	 	(including Plan	 	CEOs
	
 
	 	

	 	Associates in Grade

21 and up)
	 	CEOs and COOs)

	 	—

	
 
	 	 	 	 
	 	

	 	

	Minimum Severance

	 	2 weeks
	 	6 weeks
	 	16 weeks
	 	52 weeks
	
 
	 	 
	 	 
	 	 
	 	

	Additional Severance

	 	Additional week per

Year of Service
	 	Additional two

weeks per Year of

Service
	 	Additional two

weeks per Year of

Service
	 	

None
	 

	 	 
	 	 
	 	 
	 	 
	Maximum Severance

	 	26 weeks
	 	26 weeks
	 	39 weeks
	 	52 weeks
	 

	 	 
	 	 
	 	 
	 	 
	Long Term Incentive

Plan (“LTIP”)	 	N/A	 	N/A	 	N/A for VPs. SVP’s and above will receive
the LTIP installments under any existing
LTIP plans for which the Compensation
Committee has approved funding as of the
date of termination.
	 	 	 	 	 	 	 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]