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Exhibit 10.74

    
      

    

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    Exhibit
      10.74

     

    
       

      

      APPENDIX
        X

      

      

      
        	 Agency Code 12000
                	 Contract No. C-014386
                
	 Period 10/1/1997 -
                6/30/2007	 Funding Amount for Period
                $107,510,771

      

       

      This
        is
        an AGREEMENT between THE STATE OF NEW YORK, acting by and through the
Department
        of Health. having
        its principal office at Corning
        Tower. Empire State Plaza. Albany, NY,
        (hereinafter referred to as the STATE), and Wellcare of New York, Inc.
        hereinafter referred to as the CONTRACTOR), for modification of -Contract
        Number
        C-014386 as reflected in the attached revisions to Section I.B.I, of the
        Agreement and Appendices A, A-2, E and L, and to extend the period of the
        contract through June 30, 2007.

       

      All
        other
        provisions of said AGREEMENT shall remain in full force and effect.

       

      IN
        WITNESS WHEREOF, the parties hereto have executed this AGREEMENT as of the
        dates
        appearing under their signatures.

      

      

      
        	
                CONTRACTOR
                  SIGNATURE

                 

              	
                STATE
                  AGENCY SIGNATURE

              
	
                By:/s/
                  Todd S. Farha

              	
                By:
                  /s/
                  Judith Arnold

                 

              
	
                Todd
                  Farha

                Printed
                  Name

              	
                Judith
                  Arnold

                Printed
                  Name

              
	
                 

                Title:
                  President and CEO

              	
                 

                Title:
                  Deputy Commissioner

                Division
                  of Planning, Policy & resource Development

              
	
                Date:
                  11/17/2006

              	
                 

                Date:
                  11/22/06

              
	
                 

              	
                 

              
	
                 

              	
                 

                State
                  Agency Certification:

                "In
                  addition to the acceptance of this contract, I also certify that
                  original
                  copies of this signature page will be attached to all other exact
                  copies
                  of this contract."

              

      

       

      STATE
        OF
        FLORIDA)    SS.:

       

      COUNTY
        OF
        HILLSBOROUGH)

       

      On
        the
        17th
        day of
        November 2006, before me personally appeared Todd S. Farha to me known, who
        being by me duly sworn, did depose and say that he/she resides at Tampa,
        Florida, that he is the President and CEO of the WellCare of New York., the
        corporation described herein which executed the foregoing instrument; and
        that
        he/she signed his/her name thereto by order of the board of directors of
        said
        corporation.

      

       

      (Notary)
        /s/ Rebecca Neal

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      STATE
        OF NEW YORK AGREEMENT

       

      Section
        I.B. 1. is revised to read as follows:

       

      

      I.
        Conditions of Agreement 

      B.I.
        This
        AGREEMENT is extended through June 30,2007.

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      STANDARD
        CLAUSES FOR NYS CONTRACTS 

      APPENDIX
        A

      

      STANDARD
        CLAUSES FOR NYS CONTRACTS

       

      The
        parties to the attached contract, license, lease, amendment or other agreement
        of any kind (hereinafter, "the contract" or "this contract") agree to be
        bound
        by the following clauses which are hereby made a part of the contract (the
        word
        "Contractor" herein refers to any party other than the State, whether a
        contractor, licenser, licensee, lessor, lessee or any other party):

       

      1.
        EXECUTORY
        CLAUSE.
        In
        accordance with Section 41 of the State
        Finance Law, the State shall have no liability under this contract to the
        Contractor or to anyone else beyond funds appropriated and available for
        this
        contract.

       

      2.
        NON-ASSIGNMENT
        CLAUSE.
        In
        accordance with Section 138 of the State Finance Law, this contract may not
        be
        assigned by the Contractor or its right, title or interest therein assigned,
        transferred, conveyed, sublet or otherwise disposed of without the previous
        consent, in writing, of the State and any attempts to assign the contract
        without the State's written consent are null and void. The Contractor may,
        however, assign its right to receive payment without the State's prior written
        consent unless this contract concerns Certificates of Participation pursuant
        to
        Article 5-A of the State Finance Law.

       

      3.
        COMPTROLLER'S
        APPROVAL.
        In
        accordance with Section 112 of the State Finance Law (or, if this contract
        is
        with the State University or City University of New York, Section 355 or
        Section
        6218 of the Education Law), if this contract exceeds $50,000 (or the minimum
        thresholds agreed to by the Office of the State Comptroller for certain S.U.N.Y.
        and C.U.N.Y. contracts), or if this is an amendment for any amount to a contract
        which, as so amended, exceeds said statutory amount, or if, by this contract,
        the State agrees to give something other than money when the value or reasonably
        estimated value of such consideration exceeds $10,000, it shall not be valid,
        effective or binding upon the State until it has been approved by the State
        Comptroller and filed in his office. Comptroller's approval of contracts
        let by
        the Office of General Services is required when such contracts exceed $85,000
        (State Finance Law Section 163.6.a).

       

      4.
        WORKERS'
        COMPENSATION BENEFITS.
        In
        accordance with Section 142 of the State Finance Law, this contract shall
        be
        void and of no force and effect unless the Contractor shall provide and maintain
        coverage during the life of this contract for the benefit of such employees
        as
        are required to be covered by the provisions of the Workers' Compensation
        Law.

       

      5.
        NON-DISCRIMINATION
        REQUIREMENTS.
        To the
        extent required by Article 15 of the Executive Law (also known as the Human
        Rights Law) and all other State and Federal statutory and constitutional
        non-discrimination provisions, the Contractor will not discriminate against
        any
        employee or applicant for employment because of race, creed, color, sex,
        national origin, sexual orientation, age, disability, genetic predisposition
        or
        carrier status, or marital status. Furthermore, in accordance with Section
        220-e
        of the Labor Law, if this is a contract for the construction, alteration
        or
        repair of any public building or public work or for the manufacture, sale
        or
        distribution of materials, equipment or supplies, and to the extent that
        this
        contract shall be performed within the State of New York, Contractor agrees
        that
        neither it nor its subcontractors shall, by reason of race, creed, color,
        disability, sex, or national origin: (a) discriminate in hiring against any
        New
        York State citizen who is qualified and available to perform the work; or
        (b)
        discriminate against or intimidate any employee hired for the performance
        of work under this contract. If this is a building service contract as defined
        in Section 230 of the Labor Law, then, in accordance with Section 239 thereof,
        Contractor agrees that neither it nor its subcontractors shall by reason
        of
        race, creed, color, national origin, age, sex or disability: (a) discriminate
        in
        hiring against any New York State citizen who is qualified and available
        to
        perform the work; or (b) discriminate against or intimidate any employee
        hired
        for the performance
        of work under this contract. Contractor is subject to fines of $50,00 per
        person
        per day for any violation of Section 220-e or Section 239 as well as possible
        termination of this contract and forfeiture of all moneys due hereunder for
        a
        second or subsequent violation.

       

      6.
        WAGE
        AMP HOURS PROVISIONS.
        If this
        is a public work contract
        covered by Article 8 of the Labor Law or a building service contract covered
        by
        Article 9 thereof, neither Contractor's employees nor the employees of its
        subcontractors may be required or permitted to work more than the number
        of
        hours or days stated in said statutes, except as otherwise provided in the
        Labor
        Law and as set forth in prevailing wage and supplement schedules issued by
        the
        State Labor Department. Furthermore, Contractor and its subcontractors must
        pay
        at least the prevailing wage rate and pay or provide the prevailing supplements,
        including the premium rates for overtime pay, as determined by the State
        Labor
        Department in accordance with the Labor Law.

       

      7.
        NON-COLLUSIVE BIDDING CERTIFICATION.
        In
        accordance with
        Section 139-d of the State Finance Law, if this contract was awarded based
        upon
        the submission of bids. Contractor affirms, under penalty of perjury, that
        its
        bid was arrived at independently and without collusion aimed at restricting
        competition. Contractor further affirms that, at the time Contractor submitted
        its bid, an authorized and responsible person executed and delivered to the
        State a non-collusive bidding certification on Contractor's behalf.

       

      8.
        INTERNATIONAL
        BOYCOTT PROHIBITION.
        In
        accordance with
        Section 220-f of the Labor Law and Section 139-h of the State Finance Law,
        if
        this contract exceeds $5,000, the Contractor agrees, as a material condition
        of
        the contract, that neither the Contractor nor any substantially owned or
        affiliated person, firm, partnership or corporation has participated, is
        participating, or shall participate in an international boycott in violation
        of
        the federal Export Administration Act of 1979 (50 USC App. Sections 2401
        et
        seq.) or regulations thereunder. If such Contractor, or any of the aforesaid
        affiliates of Contractor, is convicted or is otherwise found to have violated
        said laws or regulations upon the final determination of the United States
        Commerce Department or any other appropriate agency of the United States
        subsequent to the contract's execution, such contract, amendment or modification
        thereto shall be rendered forfeit and void. The Contractor shall so notify
        the
        State Comptroller within five (5) business days of such conviction,
        determination or disposition of appeal (2NYCRR 105.4).

       

      9.
        SET-OFF
        RIGHTS.
        The
        State shall have all of its common law, equitable and statutory rights of
        set-off. These rights shall include, but not be limited to, the State's option
        to withhold for the purposes of set-off any moneys due to the Contractor
        under
        this contract up to any amounts due and owing to the State with regard to
        this
        contract, any other contract with any State department or agency, including
        any
        contract for a term commencing prior to the term of this contract, plus any
        amounts due and owing to the State for any other reason including, without
        limitation, tax delinquencies, fee delinquencies or monetary penalties relative
        thereto. The State shall exercise its set-off rights in accordance with normal
        State practices including, in cases of set-off pursuant to an audit, the
        finalization of such audit by the State agency, its representatives, or the
        State Comptroller.

       

      10.
        RECORDS.
        The
        Contractor shall establish and maintain complete and accurate books, records,
        documents, accounts and other evidence directly pertinent to performance
        under
        this contract (hereinafter, collectively, "the Records"). The Records must
        be
        kept for the balance of the calendar year in which they were made and for
        six
        (6) additional years thereafter. The State Comptroller, the Attorney General
        and
        any other person or entity authorized to conduct an examination, as well
        as the
        agency or agencies involved in this contract, shall have access to the Records
        during normal business hours at an office of the Contractor

       

      Page
        1

      June,
        2006

       

      

      

      STANDARD
        CLAUSES FOR NYS CONTRACTS

      APPENDIX
        A

      

      within
        the State of New York or, if no such office is available, at a mutually
        agreeable and reasonable venue within the State, for the term specified above
        for the purposes of inspection, auditing and copying. The State shall take
        reasonable steps to protect from public disclosure any of the Records which
        are
        exempt from disclosure under Section 87 of the Public Officers Law (the
        "Statute") provided that: (i) the Contractor shall timely inform an appropriate
        State official, in writing, that said records should not be disclosed; and
        (ii)
        said records shall be sufficiently identified; and (iii) designation of said
        records as exempt under the Statute is reasonable. Nothing contained herein
        shall diminish, or in any way adversely affect, the State's right to discovery
        in any pending or future litigation.

       

      11.
        IDENTIFYING
        INFORMATION AND PRIVACY NOTIFICATION,
        (a)
        FEDERAL EMPLOYER IDENTIFICATION NUMBER and/or FEDERAL SOCIAL SECURITY NUMBER.
        All invoices or New York State standard vouchers submitted for payment for
        the
        sale of goods or services or the lease of real or personal property to a
        New
        York State agency must include the payee's identification number, i.e., the
        seller's or lessor's identification number. The number is either the payee's
        Federal employer identification number or Federal social security number,
        or
        both such numbers when the payee has both such numbers. Failure to include
        this
        number or numbers may delay payment. Where the payee does not have such number
        or numbers, the payee, on its invoice or New York State standard voucher,
        must
        give the reason or reasons why the payee does not have such number or
        numbers.

       

      (b)
        PRIVACY
        NOTIFICATION. (1) The authority to request the above personal information
        from a
        seller of goods or services or a lessor of real or personal property, and
        the
        authority to maintain such information, is found in Section 5 of the State
        Tax
        Law. Disclosure of this information by the seller or lessor to the State
        is
        mandatory. The principal purpose for which the information is collected is
        to
        enable the State to identify individuals, businesses and others who have
        been
        delinquent in filing tax returns or may have understated their tax liabilities
        and to generally identify persons affected by the taxes administered by the
        Commissioner of Taxation and Finance. The information will be used for tax
        administration purposes and for any other purpose authorized by
        law.

      (2)
        The
        personal information is requested by the purchasing unit of the agency
        contracting to purchase the goods or services or lease the real or personal
        property covered by this contract or lease. The information is maintained
        in New
        York State's Central Accounting System by the Director of Accounting Operations,
        Office of the State Comptroller, 110 State Street, Albany, NewYork
        12236.

       

      12.
        EQUAL
        EMPLOYMENT OPPORTUNITIES FOR MINORITIES AND WOMEN.
        In
        accordance with Section 312 of the Executive Law, if this contract is: (i)
        a
        written agreement or purchase order instrument, providing for a total
        expenditure in excess of $25,000.00, whereby a contracting agency is committed
        to expend or does expend funds in return for labor, services, supplies,
        equipment, materials or any combination of the foregoing, to be performed
        for,
        or rendered or furnished to the contracting agency; or (ii) a written agreement
        in excess of $100,000.00 whereby a contracting agency is committed to expend
        or
        does expend funds for the acquisition, construction, demolition, replacement,
        major repair or renovation of real property and improvements thereon; or
        (iii) a
        written agreement in excess of $100,000.00 whereby the owner of a State assisted
        housing project is committed to expend or does expend funds for the acquisition,
        construction, demolition, replacement, major repair or renovation of real
        property and improvements thereon for such project, then:

       

      (a)
        The
        Contractor will not discriminate against employees or applicants
        for employment because of race, creed, color, national origin, sex, age,
        disability or marital status, and will undertake or continue existing programs
        of affirmative action to ensure that minority group members and women are
        afforded equal employment opportunities without discrimination. Affirmative
        action shall mean recruitment, employment,
        job assignment, promotion, upgradings, demotion, transfer, layoff, or
        termination and rates of pay or other forms of compensation;

       

      (b)
        at
        the request of the contracting agency, the Contractor shall request each
        employment agency, labor union, or authorized representative of workers with
        which it has a collective bargaining or other agreement or understanding,
        to
        furnish a written statement that such employment agency, labor union or
        representative will not discriminate on the basis of race, creed, color,
        national origin, sex, age, disability or marital status and that such union
        or
        representative will affirmatively cooperate in the implementation of the
        contractor's obligations herein; and

       

      (c)
        the
        Contractor shall state, in all solicitations or advertisements for employees,
        that, in the performance of the State contract, all qualified applicants
        will be
        afforded equal employment opportunities without discrimination because of
        race,
        creed, color, national origin, sex, age, disability or marital
        status.

       

      Contractor
        will include the provisions of "a", "b", and "c" above, in every subcontract
        over $25,000.00 for the construction, demolition, replacement, major repair,
        renovation, planning or design of real property and improvements thereon
        (the
        "Work") except where the Work is for the beneficial use of the Contractor.
        Section 312 does not apply to: (i) work, goods or services unrelated to this
        contract; or (ii) employment outside New York State; or (iii) banking services,
        insurance policies or the sale of securities. The State shall consider
        compliance by a contractor or subcontractor with the requirements of any
        federal
        law concerning equal employment opportunity which effectuates the purpose
        of
        this section. The contracting agency shall determine whether the imposition
        of
        the requirements of the provisions hereof duplicate or conflict with any
        such
        federal law and if such duplication or conflict exists, the contracting agency
        shall waive the applicability of Section 312 to the extent of such duplication
        or conflict. Contractor will comply with all duly promulgated and lawful
        rules
        and regulations of the Governor's Office of Minority and Women's Business
        Development pertaining hereto.

       

      13.
        CONFLICTING
        TERMS.
        In the
        event of a conflict between the terms of the contract (including any and
        all
        attachments thereto and amendments thereof) and the terms of this Appendix
        A,
        the terms of this Appendix A shall control.

       

      14.
        GOVERNING
        LAW.
        This
        contract shall be governed by the laws of the State of New York except where
        the
        Federal supremacy clause requires otherwise.

       

      15. LATE
        PAYMENT.
        Timeliness of payment and any interest to be paid to Contractor for late
        payment
        shall be governed by Article 11-A of the State Finance Law to the extent
        required by law.

       

      16.
        NOARBITRATION.
        Disputes
        involving this contract, including the breach or alleged breach thereof,
        may not
        be submitted to binding arbitration (except where statutorily authorized),
        but
        must, instead, be heard in a court of competent jurisdiction of the State
        of New
        York.

       

      17.SERVICE
        OF
        PROCESS.
        In
        addition to the methods of service allowed by the State Civil Practice Law
&
Rules ("CPLR"), Contractor hereby consents to service of process upon it
        by
        registered or certified mail, return receipt requested. Service hereunder
        shall
        be complete upon Contractor's actual receipt of process or upon the State's
        receipt of the return thereof by the United States Postal Service as refused
        or
        undeliverable. Contractor must promptly notify the State, in writing, of
        each
        and every change of address to which service of process can be made. Service
        by
        the State to the last known address shall be sufficient. Contractor will
        have
        thirty (30) calendar days after service hereunder is complete in which to
        respond.

       

      Page
        2

       

      June,2006

       

      STANDARD
        CLAUSES FOR NYS CONTRACTS

       

      18.
        PROHIBITION
        ON PURCHASE OF TROPICAL HARDWOODS.
        The
        Contractor certifies and warrants that all wood products to be used under
        this
        contract award will be in accordance with, but not limited to, the
        specifications and provisions of State Finance Law §165. (Use of Tropical
        Hardwoods) which prohibits purchase and use of tropical hardwoods, unless
        specifically exempted, by the State or any governmental agency or political
        subdivision or public benefit corporation. Qualification for an exemption
        under
        this law will be the responsibility of the contractor to establish to meet
        with
        the approval of the State.

       

      In
        addition, when any portion of this contract involving the use of woods, whether
        supply or installation, is to be performed by any subcontractor, the prime
        Contractor will indicate and certify in the submitted bid proposal that the
        subcontractor has been informed and is in compliance with specifications
        and
        provisions regarding use of tropical hardwoods as detailed in §165 State Finance
        Law. Any such use must meet with the approval of the State; otherwise, the
        bid
        may not be considered responsive. Under bidder certifications, proof of
        qualification for exemption will be the responsibility of the Contractor
        to meet
        with the approval of the State.

       

      19.
        MACBRTDE
        FAIR EMPLOYMENT PRINCIPLES.
        In
accordance
        with the MacBride Fair Employment Principles (Chapter 807 of the Laws of
        1992),
        the Contractor hereby stipulates that the Contractor either (a) has no business
        operations in Northern Ireland, or (b) shall take lawful steps in good faith
        to
        conduct any business operations in Northern Ireland in accordance with the
        MacBride Fair Employment Principles (as described in Section 165 of the New
        York
        State Finance Law), and shall permit independent monitoring of compliance
        with
        such principles.

       

      20.
        OMNIBUS
        PROCUREMENT ACT OF 1992.
        It is
        the policy of New York State to maximize opportunities for the participation
        of
        New York State business enterprises, including minority and women-owned business
        enterprises as bidders, subcontractors and suppliers on its procurement
        contracts.

       

      Information
        on the availability of New York State subcontractors and suppliers is available
        from:

       

      NYS
        Department of Economic Development

      Division
        for Small Business

      30
        South
        Pearl St - 7th
        Floor

      Albany,
        New York 12245

      Telephone:
        518-292-5220

      Fax:
        518-292-5884

      http://WNVw.empire.state.ny.us

       

      A
        directory of certified minority and women-owned business enterprises is
        available from:

       

      NYS
        Department of Economic Development

      Division
        of Minority and Women's Business Development

      30
        South
        Pearl St - 2nd Floor

      Albany,
        New York 12245

      Telephone:
        518-292-5250

      Fax:
        518-292-5803

      http://www.empire.state.ny.us

       

      The
        Omnibus Procurement Act of 1992 requires that by signing this bid proposal
        or
        contract, as applicable. Contractors certify that whenever the total bid
        amount
        is greater than $1 million:

       

      (a)
        The
        Contractor has made reasonable efforts to encourage the participation of
        New
        York State Business Enterprises as suppliers and subcontractors, including
        certified minority and women-owned business enterprises, on this project,
        and
        has retained the documentation of these efforts to be provided upon request
        to
        the State;

       

      (b)
        The
        Contractor has complied with the Federal Equal Opportunity Act of 1972 (P.L.
        92-261), as amended;

       

      (c)
        The
        Contractor agrees to make reasonable efforts to provide notification to New
        York
        State residents of employment opportunities on this project through listing
        any
        such positions with the Job Service Division of the New York State Department
        of
        Labor, or providing such notification in such manner as is consistent with
        existing collective bargaining contracts or agreements. The Contractor agrees
        to
        document these efforts and to provide said documentation to the State upon
        request; and

       

      (d)
        The
        Contractor acknowledges notice that the State may seek to obtain offset credits
        from foreign countries as a result of this contract and agrees to cooperate
        with
        the State in these efforts.

       

      21.
        RECIPROCITY AND SANCTIONS PROVISIONS.
        Bidders
        are

      hereby
        notified that if their principal place of business is located in a country,
        nation, province, state or political subdivision that penalizes New York
        State
        vendors, and if the goods or services they offer will be substantially produced
        or performed outside New York State, the Omnibus Procurement Act 1994 and
        2000
        amendments (Chapter 684 and Chapter 383, respectively) require that they
        be
        denied contracts which they would otherwise obtain. NOTE: As of May 15, 2002,
        the list of discriminatory jurisdictions subject to this provision includes
        the
        states of South Carolina, Alaska, West Virginia, Wyoming, Louisiana and Hawaii.
        Contact NYS Department of Economic Development for a current list of
        jurisdictions subject to this provision.

       

      22. PURCHASES
        OF APPAREL. 
        In
        accordance with State Finance Law
        162
        (4-a), the State shall not purchase any apparel from any vendor unable or
        unwilling to certify that: (i) such apparel was manufactured in compliance
        with
        all applicable labor and occupational safety laws, including, but not limited
        to, child labor laws, wage and hours laws and workplace safety laws, and
        (ii)
        vendor will supply, with its bid (or, if not a bid situation, prior to or
        at the
        time of signing a contract with the State), if known, the names and addresses
        of
        each subcontractor and a list of all manufacturing plants to be utilized
        by the
        bidder.

       

      Page
        3 

      June,
        2006

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      APPENDIX
        A-2 

      PROGRAM
        SPECIFIC CLAUSES

       

      Section
        111.N.2 is revised to read as follows:

       

      2.
        Targeted Verification

       

      The
        CONTRACTOR shall verify the information taken by their marketers/facilitators
        with the family or employer (if applicable), using a sample of applications,
        which include the following three categories:

       

      •
        Applications with non-applying children or adults (if applicable) that impact
        eligibility.

      •
        Applications with a self-declaration of income. ,..-. ,-., ,

      •
        Applications with a declaration of no income/letter of support.

       

      CONTRACTORS
        that do not take applications from applicants other than through the mail
        shall
        not be required to conduct verification phone calls provided such applications
        do not contain a high volume of the above three categories as determined
        by the
        STATE. The STATE will conduct special audits of the applications taken by
        these
        plans through the mail to determine whether additional verification is
        required.

       

      The
        CONTRACTOR shall conduct verification phone calls on a stratified sample
        of
        applications to confirm the information provided by the applicant prior to
        its
        being submitted to the LOSS, another health plan, or enrolled in CHPlus B.
        The
        CONTRACTOR may develop its own process for conducting the verification phone
        calls. The sample may be drawn monthly or quarterly. For large plans (more
        than
        300 applications completed by facilitators per month) the sample shall be
        at
        least 10 percent of all applications in the period (month or quarter). Smaller
        plans (less than 300 per month) will need to verify 30 applications in these
        categories, collectively, per period. The CONTRACTOR is not required to track
        applications by the three categories above. That is one option for drawing
        the
        sample. Another option is to take a random sample of all applications at
        a
        percent believed to be high enough that the sample captures applications
        from
        each of the three categories above. The CONTRACTOR'S methodology for completing
        the verification phone calls shall be approved by the STATE prior to
        implementation and must be based on a projected number of applications to
        be
        received within each category.

       

      The
        CONTRACTOR shall over sample in the categories to be verified to permit
        replacement of those the plan is unable to reach. The CONTRACTOR may drop
        and
        replace applicants they are unable to verify due to an inability to reach
        the
        family after three attempts. There is no limit on the number that can be
        replaced as long as the final sample meets the number agreed upon in the
        CONTRACTOR'S plan approved by the STATE that shall be submitted pursuant
        to this
        agreement The CONTRACTOR is required to provide information to the STATE
        on the
        dropped cases including the number dropped in a period, the reasons for
        replacement (e.g., unable to contact, refused to cooperate). The CONTRACTOR
        shall make at least three attempts to contact the family at different times
        of
        the day (e.g., morning, afternoon, evening) prior to dropping the case. The
        replacement case shall fall within the same category as the sample case.
        For
        example, if the dropped case includes non-applying people affecting eligibility,
        the replacement case shall include non-applying people,

       

      Applications
        must be verified by the CONTRACTOR on a prospective basis, however, the
        CONTRACTOR is prohibited from delaying enrollment in order to implement such
        verification. The CONTRACTOR shall determine the sample and conduct the calls
        on
        an ongoing basis so as not to delay enrollment. The CONTRACTOR shall develop
        a
        methodology to conduct verification, based on the expected number of
        applications in each category.

       

      If
        the
        applicant concurs with all the information on the application, the CONTRACTOR
        is
        not required to take additional steps to verify the information. The CONTRACTOR
        must still complete the checklist.

       

      If
        the
        CONTRACTOR, through a verification phone call, finds that the application
        includes inaccurate information or misrepresentation of the applicant's
        circumstances, the CONTRACTOR must make best efforts todetermine if the
        inaccuracy was due to actions of the marketer/facilitator. The CONTRACTOR
        must
        investigate if the marketer/facilitator acted with the intent to falsify
        the
        application. The CONTRACTOR must not enroll the applicant if the new information
        renders them ineligible.

       

      If
        the
        CONTRACTOR finds that the marketer/facilitator's action did result in false
        information on the application, the CONTRACTOR shall remove the employee
        as a
        facilitator immediately and follow the CONTRACTOR'S process for employee
        disciplinary action. In addition, the CONTRACTOR shall review one month of
        prior
        applications taken by that marketer/facilitator.

       

      If
        evidence of fraud is found on any one of those applications, the CONTRACTOR
        shall review an additional two months of prior applications taken by the
        marketer/facilitator.

       

      If
        the
        intent is unclear or it is determined the marketer/facilitator made a mistake,
        the CONTRACTOR shall re-train the employee immediately. The CONTRACTOR shall
        review all subsequent applications submitted by the marketer/facilitator
        for the
        next month to ensure compliance. If continued mistakes are found on those
        applications, the CONTRACTOR shall remove the employeeas a facilitator
        immediately and follow the CONTRACTOR'S employee disciplinary action procedures.
        The review of individual marketer/facilitator applications shall encompass
        all
        applications for the period and does not need to be sorted into the three
        categories above.

       

      Verification
        of a specific facilitator's applications cannot substitute for the CONTRACTOR'S
        sample review required by this section of the AGREEMENT. The CONTRACTOR must
        make the appropriate adjustments to claims for CHPIus B applications fourd
        to be
        ineligible and must report their findings to the STATE. If CHPIus A, Medicaid,
        or FHPIus applicants appear ineligible for those programs, the CONTRACTOR
        shall
        refer those cases to the appropriate LOSS for review and action,

       

      The
        CONTRACTOR shall protect applicants who have been subjected to facilitator
        fraud. For those applications that are verified prior to enrollment the
        CONTRACTOR shall:

       

      •
Enroll
        applicants or forward to the LDSS those applications in which the information
        is
        verified by the applicant. '

      •
Enroll
        applicants or forward with corrections to the LDSS those applications in
        which
        information was omitted by the facilitator, but the individual is still
        eligible. The CONTRACTOR may obtain the corrected information over the phone,
        initial the application, and send a copy of the updated information to the
        applicant.

      •
Forward
        all signed Medicaid applications to LDSS batched according to whether applicants
        appear eligible or ineligible.

       

      For
        cases
        in which the CONTRACTOR retroactively reviewed the applications of a facilitator
        found to have committed fraud, the CONTRACTOR shall;

       

      •
Do
        nothing with enrollees who confirm the information on the
        application.

      •
Inform
        the LDSS of any Medicaid enrollees who may not be eligible based on the
        retrospective review.

      •
Allow
        CHPIus B enrollees to reapply if it appears that they may still be eligible
        for
        coverage. Coverage for a CHPIus B enrollee may be continued for two months
        while
        the new application is completed and processed. During this time any CHPIus
        B
        applicant found to be eligible in a higher family contribution category will
        be
        permitted to remain enrolled provided they remit the appropriate family
        contribution. A new code will be added to the KIDS system to permit the
        CONTRACTOR to track these children.

      •
Forward
        all new CHPIus A, Medicaid, and FHPIus applications to the LDSS with an
        explanation of the results of the verification.

       

      If
        during
        the course of the verification process, the CONTRACTOR identifies cases of
        fraud
        committed byapplicants and/or enrollees, those cases, with supporting evidence,
        shall be submitted to the STATE.

       

      Section
        111.N.5 is revised to read as follows:

       

      5.
        Reports

       

      The
        CONTRACTOR must submit quarterly reports on the results of these monitoring
        activities. Thereport is due 30 days after the end of the quarter beginning
        immediately after the STATE has approved the field monitoring programs.
        Thereafter, each quarterly report shall be due within 30 days following the
        end
        of the quarter. The reports shall include:

       

      •
The
        total number of applications received each month and the number of applications
        requiring further review.

      •
The
        number of applications in each of the three categories to be
        verified.

      •
The
        number of observed interviews and/or secret shopping encounters.

       

      This
        report will be added to the current list of reports, via certified letter
        to the
        CONTRACTOR'S Chief Executive Officer, and subject to the 2 percent penalty
        for
        late reports.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      APPENDIX
        E 

      

      Financial
        Information

       

      Sections
        A is revised to read as follows:

       

      B.
        Wellcare of New York, Inc. shall receive, for the period January 1, 2007
        through
        June 30, 2007, an amount up to, but not to exceed, $8,700,000 to provide
        and
        administer a Child Health Plus program for uninsured children in the counties
        identified in Appendix A-2, Section n.B.l of this AGREEMENT or as modified
        by
        the STATE. Payment of this amount is based on the CONTRACTOR meeting the
        responsibilities provided in this AGREEMENT.

       

      Additional
        Premium Information:

       

      For
        Bronx, Kings, New York and Queens county(ies):

      The
        total
        monthly premium shall be: $118.37

       

      The
        State
        share of the total monthly premium shall be $118.37 or the total monthly
        premium
        for children in families with gross household income less than 160% of the
        federal poverty level and children who are American Indians or
        Alaskan Natives (AI/AN).

       

      The
        State
        share of the total monthly premium shall be $ 10 9.3 7 or the total monthly
        premium minus $9 for children in families with gross household income between
        160% and 222% of the federal poverty level with a maximum of $27 per month
        per
        family. The State share is the total monthly premium less $9 for each of
        the
        first three children. For additional children, the State share is the total
        monthly premium.

       

      The
        State
        share of the total monthly premium shall be $103.37 or the total monthly
        premium
        minus $15 for children in families with gross household income between 223%
        and
        250% of the federal poverty level with a maximum of $45 per month per family.
        The State share is the total monthly premium less $15 for each of the first
        three children. For additional children, the State share is the total monthly
        premium.

       

      For
        Dutchess, Orange, Rockland, Sullivan and Ulster county(ies):

      The
        total
        monthly premium shall be: $ 106.67

       

      The
        State
        share of the total monthly premium shall be $106.67 or the total monthly
        premium
        for children in families with gross household income less than 160% of the
        federal poverty level and children who are American Indians or Alaskan Natives
        (AI/AN).

       

      The
        State
        share of the total monthly premium shall be $97.67 or the total monthly premium
        minus $9 for children in families with gross household income between 160%
        and
        222% of the federal poverty level with a maximum of $27 per month per family.
        The State share is the total monthly premium less $9 for each of the first
        three
        children. For additional children, the State share is the total monthly
        premium.

       

      The
        State
        share of the total monthly premium shall be $91.67 or the total monthly premium
        minus $ 15 for children in families with gross household income between 223%
        and
        250% of the federal poverty level with a maximum of $45 per month per family.
        The State share is the total monthly premium less $15 for each of the first
        three children. For additional children, the State share is the total monthly
        premium.

       

      For
        Albany, Columbia, Greene, Rensselaer county(ies):

      The
        total
        monthly premium shall be: $105.68

       

      The
        State
        share of the total monthly premium shall be $105.68 or the total monthly
        premium
        for children in families with gross household income less than 160% of the
        federal poverty level and children who are American Indians or Alaskan Natives
        (AI/AN).

       

      The
        State
        share of the total monthly premium shall be $96.68 or the total monthly premium
        minus $9 for children in families with gross household income between 160%
        and
        222% of the federal poverty level with a maximum of $27 per month per family.
        The State share is the total monthly premium less $9 for each of the first
        three
        children. For additional children, the State share is the total monthly
        premium.

       

      The
        State
        share of the total monthly premium shall be $90.68 or the total monthly premium
        minus $15 for children in families with gross household income between 223%
        and
        250% of the federal poverty level with a maximum of $45 per month per family.
        The State share is the total monthly premium less $15 for each of the first
        three children. For additional children, the State share is the total monthly
        premium.

       

      In
        the
        absence of an approved premium modification by the Department of Health and
        State Insurance Department, the premium above or subsequent premium approved
        (whichever is in effect) shall continue as the State's subsidy through June
        30,
        2007.

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      Appendix
        L 

      

      Privacy
        and Confidentiality

       

      Section II
        is revised as follows:

       

      II.
        Effective April 14, 2003, the CONTRACTOR shall comply with the following
        agreement:

       

      Federal
        Health Insurance Portability and Accountability Act (HIPAA) Business Associate
        Agreement ("Agreement")

       

      This
        Business Associate Agreement between the New York State Department of Health
        and
        Wellcare of New York, Inc. hereinafter referred to as the Business Associate,
        is
        effective on April
        14. 2003 to June 30. 2007.EX-10.1

SEPARATION AGREEMENT AND GENERAL RELEASE

This SEPARATION AGREEMENT AND GENERAL RELEASE (“Separation Agreement”) is made between Eric M.
Yoder, M.D. (“Associate”) and AMERIGROUP Corporation, its subsidiaries, successors, affiliates and
assigns, which are referred to herein, collectively and individually, as “AMERIGROUP” (Associate
and AMERIGROUP individually and collectively referred to herein as the “Party” or the “Parties”).

A. REASONS FOR AGREEMENT

1. AMERIGROUP and Associate have mutually agreed that Associate shall separate from AMERIGROUP,
effective as of the close of business on April 1, 2007 (the “End Date”).

2. In order to assist Associate in regard to this separation and as consideration for the
obligations from Associate specified below, AMERIGROUP agrees to provide the following benefits,
which are referred to herein as the “Special Separation Package.”

B. AGREEMENT

For and in consideration of the mutual promises and commitments specified herein, the Parties agree
as follows:

1. Special Separation Package

(a) No sooner than the eighth (8th) day after Associate executes this Separation
Agreement, provided that Associate has neither revoked nor breached this Separation Agreement,
Associate shall be allowed to take administrative leave for the period from February 5, 2007
through April 1, 2007 (the “Administrative Leave Period”).

(i) During the Administrative Leave Period, Associate shall:

(1) be compensated as follows in each case less all applicable taxes:

(A) for the period beginning on February 5, 2007 through February 28,
2007, Associate shall be paid by AMERIGROUP at his payroll rate of January
1, 2007;

(B) for the period beginning on March 1, 2007 through April 1, 2007, Associate
shall be paid at his payroll rate as of January 1, 2007, to the extent that he has
sufficient Paid Annual Leave (“PAL”), and

(C) in the event that his PAL is not sufficient for the period from March 1,
2007 to April 1, 2007, Associate shall be deemed to be on leave without pay.

	 	(2)	 	except as specifically provided herein, continue to receive
coverage under AMERIGROUP’s employee medical, dental, life, accidental death
and dismemberment, disability, and flexible spending plans at Associate’s
coverage or participation level as of January 1, 2007. Such coverage will
continue through April 30, 2007, and

	 	(3)	 	continue to vest stock options issued pursuant to any
AMERIGROUP Equity Incentive Plans (the “Stock Agreements”).

(ii) Notwithstanding anything to the contrary contained herein, during the Administrative
Leave Period, Associate shall not:

(1) accrue PAL;

	 	(2)	 	have any authority to contract for or on behalf of
AMERIGROUP, to incur obligations or indebtedness for or on behalf of
AMERIGROUP, or in any way to bind, act on behalf of, or represent AMERIGROUP,
and

(3) represent himself to be an employee of AMERIGROUP.

(b) Provided that Associate has executed this Separation Agreement and neither breached it nor
revoked it, and provided further that on the End Date, or as soon thereafter as is practicable,
Associate executes the General Release attached hereto as Exhibit A, AMERIGROUP will provide
Associate (i) a lump sum payment equal to Two Hundred Eighty-three Thousand Four Hundred Fifteen
and no/100 Dollars ($283,415.00), and (ii) a lump-sum payment of One Hundred Forty-five Thousand
and no/100ths Dollars ($145,000.00) for the payment of outplacement expenses and estimated COBRA
benefits, less, in each case, all applicable taxes.

(c) Provided that Associate has executed this Separation Agreement and neither breached it or
revoked it: no sooner than (i) the eighth (8) day after Associate executes this Separation
Agreement or (ii) the regularly scheduled payment date, whichever is later, Associate shall receive
(1) a cash bonus for the performance year 2006 under the 2003 Cash Incentive Plan in the amount of
One Hundred Twenty-five Thousand and no/100ths Dollars ($125,000.00), and (2) a payment of Forty
Thousand Six Hundred Eighty and no/100ths Dollars ($40,680.00) under the 2007 LTI Program; less, in
each case, all applicable taxes.

(d) Associate will be reimbursed for unreimbursed expenses incurred prior to the End Date, in
accordance with AMERIGROUP’s Travel Expense Policy. Notwithstanding the foregoing, Associate must
submit reimbursement requests, with receipts attached, prior to March 1, 2007.

(e) Associate and AMERIGROUP further agree that after the End Date, Associate may file an
application for unemployment compensation. Should Associate file an application for unemployment
compensation, AMERIGROUP will not contest the Associate’s request for benefits as approved by State
guidelines, provided that nothing in this Separation Agreement shall be construed as requiring
AMERIGROUP to provide false or misleading information to any federal, state or local agency.

(f) The benefits provided to Associate hereunder are unique to Associate’s separation. Nothing
herein shall be deemed to establish a separation agreement or other employee benefit plan or
program available to other AMERIGROUP employees. The Parties hereto agree that AMERIGROUP has no
formal severance package, is not obligated to provide any severance benefit, and is only obligated
to pay compensation that has already accrued.

(g) In accordance with its established policies, AMERIGROUP shall provide a neutral reference to
Associate and to any persons who inquire of AMERIGROUP for a reference on Associate. Such neutral
reference shall state that Associate was employed at AMERIGROUP from May 20, 1996, to the End Date.

(h) Associate acknowledges that Associate’s employment with AMERIGROUP will cease effective as of
the close of business on the End Date.

(i) Associate understands that Associate has no obligation to sign this Separation Agreement.
Whether or not Associate signs this Separation Agreement, Associate will be entitled to receive,
less in each case all applicable payroll taxes: (i) the compensation and accrued but unpaid PAL
that Associate has earned through the End Date, which shall be paid to Associate in the first
biweekly payroll distribution immediately following the End Date; (ii) all vested benefits under
AMERIGROUP’s 401(k) Plan, Deferred Compensation Plan and Stock Agreements, payable in accordance
with the terms of those plans; (iii) subject to the provisions of Section B.1(d), reimbursement for
incurred and unreimbursed expenses; and (iv) the benefits to which Associate is entitled under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) for the period of eighteen months
beginning on May 1, 2007.

(j) The Parties agree that the circumstances of Associate’s separation from employment do not
constitute a “for cause” termination pursuant to the applicable section of the Employee
Noncompetition, Nondisclosure and Developments Agreement (the “ENNDA”), if applicable, or pursuant
to the applicable sections of the Stock Agreements. Accordingly, if Associate has executed the
ENNDA, and/or has executed documents necessary to participate in the Stock Agreements, effective on
the End Date, Associate is released from the non-compete restrictions of the ENNDA, if applicable,
and of the Stock Agreements, if applicable. Notwithstanding the foregoing, Associate shall
continue to comply with all other terms of the ENNDA, if applicable, and the Stock Agreements, if
applicable, including, without limitation, the confidentiality, non-disclosure, and
non-solicitation provisions, and agrees and understands that the other restrictions contained in
those agreements survive execution of this Separation Agreement and Associate’s termination of
employment. Options and restricted stock shall cease to vest under any applicable Stock Agreement
as of the close of business on the End Date.

(k) Associate acknowledges that certain payments provided for hereunder are in excess of the
amounts that the Executive would otherwise be entitled to receive and that AMERIGROUP has no
obligation to enter into this Separation Agreement. In consideration for AMERIGROUP assuming these
additional obligations and entering into this Separation Agreement, and as a material inducement to
AMERIGROUP to enter into this Separation Agreement, the Associate agrees to execute (and not
revoke) a release (“Release”) substantially in the form attached hereto as Exhibit A. Execution
and non-revocation of the Release by Associate is a condition precedent to Associate’s receipt of
the Special Separation Package set forth in Paragraph B(1). This Separation Agreement is subject
in all respects to Associate’s execution (and non-revocation) of the Release.

2. General Release

(a) Associate states and affirms that as of the date of this Separation Agreement, Associate has
not previously filed or joined in any complaints, charges, or lawsuits against AMERIGROUP with any
governmental agency or court of law or equity. Associate agrees, for and on behalf of Associate
and Associate’s estate, heirs, spouse, life partner, representatives, successors and assigns, that
Associate has or will be finally and permanently separated from employment with AMERIGROUP at the
close of business on the End Date, and that Associate waives, releases and forever discharges
AMERIGROUP and all related entities, their directors, officers, employees, attorneys and agents,
all of whom are third-party beneficiaries of this Separation Agreement, from any and all claims,
known or unknown, that Associate has or may have relating to or arising out of Associate’s
employment with AMERIGROUP and the separation thereof, including, but not limited to, any claims of
wrongful discharge, breach of express or implied contract, fraud, misrepresentation, defamation,
liability in tort, claims of any kind, any claims under Title VII of the Civil Rights Act of 1964,
as amended, Age Discrimination in Employment Act, the Fair Labor Standards Act, the Family Medical
Leave Act, the Equal Pay Act, Worker’s Compensation laws, Employee Retirement Income Security Act
(except for any vested benefits under any tax qualified benefit plan), Older Workers Benefit
Protection Act, or any other Executive Orders, federal, state or local law relating to employment,
employee benefits or the termination of employment, or any other claim arising out of or relating
to Associate’s employment, excepting only the provisions of this Separation Agreement and the
regular separation benefits. Associate also represents that Associate has not given, sold,
assigned, or transferred to any one else, any claim, or a portion of a claim discussed in this
Separation Agreement.

(b) Associate also affirms that Associate has been paid for and/or has received all compensation,
wages, bonuses, commissions, and/or benefits to which Associate may be entitled. Associate
affirms that Associate has been granted any leave to which Associate was entitled under the Family
and Medical Leave Act or related state or local leave or disability accommodation laws, and that
there has been no retaliation as a result of, interference with, or restraint of Associate’s use of
such leave. Associate further affirms that Associate has no known workplace injuries or
occupational diseases.

(c) Associate further affirms that Associate has not been retaliated against for reporting any
allegations of wrongdoing by AMERIGROUP or its officers, including any allegations of corporate
fraud.

(d) Both Parties acknowledge that this Separation Agreement does not limit either Party’s right,
where applicable, to file or participate in an investigative proceeding of any federal, state or
local governmental agency. To the extent permitted by law, Associate agrees that if such an
administrative claim is made, Associate shall not be entitled to recover any individual monetary
relief or other individual remedies. Associate further agrees that Associate will not provide
information or testimony in any court action against AMERIGROUP except pursuant to a lawful
subpoena and that Associate will notify AMERIGROUP of any subpoena or informal request to testify
in Court that Associate receives within three (3) business days after Associate’s receipt of such
subpoena or informal request.

3. Claims and Actions

(a) Associate promises never to file a lawsuit asserting any claims that are released in this
Separation Agreement.

(b) This Separation Agreement does not waive any rights or claims that Associate may have which
arise after the date the Associate signs this Separation Agreement.

(c) If Associate breaks Associate’s promise in Section B.3(a) of this Separation Agreement and
files a lawsuit based in whole or in part on claims that Associate has released, or if a lawsuit is
initiated based in whole or in part on claims or that Associate has given, sold, assigned, or
transferred to any one else, Associate will pay for all costs incurred by AMERIGROUP, any related
companies or the directors or employees of any of them, including reasonable attorneys’ fees, in
defending against Associate’s claim.

(d) Associate agrees that at all times relative hereto, Associate was an employee at will.

4. Confidentiality and Cooperation

(a) Associate will not divulge or give to anyone any proprietary or confidential information
concerning AMERIGROUP’s business or affairs, employees and services obtained by Associate during
Associate’s employment.

(b) Associate agrees to return to AMERIGROUP on or before February 16, 2007, all of AMERIGROUP’s
documents, information (whether in paper or electronic form) and property in Associate’s
possession, control or custody including, but not limited to, Associate’s security badge, keys,
files, member lists, mailing lists, provider lists, account information, samples, prototypes, price
lists and pricing information, passwords, codes, and all of the tangible and intangible property
belonging to AMERIGROUP and relating to Associate’s employment with AMERIGROUP. Associate further
represents and warrants that Associate has not retained any copies, electronic or otherwise, of
such property.

(c) Except as specifically provided herein, if Associate has executed the ENNDA, and/or has
executed documents necessary to participate in the Stock Agreements, Associate shall continue to
comply with the terms of the ENNDA, if applicable, and/or the Stock Agreements, if applicable,
between Associate and AMERIGROUP, and Associate acknowledges that the obligations contained in
those agreements survive execution of this Separation Agreement and Associate’s termination of
employment. In particular, Associate shall not disclose any confidential or proprietary
information which Associate acquired as an employee of AMERIGROUP to any other person or entity, or
use such information in any manner that is detrimental to the interest of AMERIGROUP.

(d) Associate agrees to cooperate fully with AMERIGROUP in transitioning Associate’s work load and
work projects.

(e) Associate shall cooperate fully with AMERIGROUP in its defense of or other participation in any
administrative, judicial or other proceeding arising from any charge, complaint or other action
that has been or may be filed, and AMERIGROUP agrees to be responsible for those costs and expenses
reasonably incurred by Associate in fulfilling Associate’s obligations pursuant to this Section
B.4(e).

5. Special ADEA Waiver and Release Notification

(a) The General Release, paragraph 2 above, of this Separation Agreement, includes a waiver and
release of all claims under the Age Discrimination in Employment Act (“ADEA”) and, therefore,
pursuant to the requirements of the ADEA, Associate acknowledges that Associate has been:

	 	(i)	 	advised that the waiver and release includes, but is not limited to, all
claims under the ADEA arising up to and including the date of execution of this waiver
and release;

	 	(ii)	 	advised to consult with an attorney and/or other advisor concerning
Associate’s rights and obligations under this Separation Agreement prior to
Associate’s execution of it. Associate understands that whether or not to do so is
Associate’s decision. Associate agrees, however, that AMERIGROUP shall not be
required to pay any of Associate’s attorney’s fees in connection with Associate’s
consideration of this Separation Agreement, and that the settlement monies received in
Paragraph B.1 are in full and complete settlement of all matters between Associate and
AMERIGROUP, including but not limited to, attorney’s fees and costs;

	 	(iii)	 	advised that Associate has at least twenty-one (21) days within which to
consider this Separation Agreement, and

	 	(iv)	 	advised that Associate may revoke the portion of this Separation Agreement
that releases claims under the Age Discrimination in Employment Act (“ADEA”) within
seven (7) days of Associate’s signing it. Revocation can be made by delivering a
written notice of revocation to Stanley F. Baldwin, General Counsel, AMERIGROUP
Corporation, 4425 Corporation Lane, Virginia Beach, Virginia 23462. For such
revocation to be effective, said notice must be postmarked no later than the seventh
(7th) calendar day after Associate signs this Separation Agreement. If
Associate revokes this Separation Agreement, or any part of this Separation Agreement,
it shall not be effective or enforceable and Associate will not receive the benefits
described in Paragraph B.1.

6. Confirmation of Corporate Compliance

(a) Associate acknowledges that Associate will not be eligible to receive the benefits described
in the Special Separation Package if Associate is found to have committed or condoned during
Associate’s employment any acts of fraud against AMERIGROUP or fraud against the government. By
signing below, Associate hereby confirms that: Associate has not committed or condoned any such
fraudulent activity; Associate has complied with AMERIGROUP’s Corporate Compliance/Ethics Program
during Associate’s employment; Associate has not participated in or knowingly permitted others to
engage in any conduct prohibited by AMERIGROUP’s Corporate Compliance/Ethics Program; Associate
understands that Associate has a duty under that program to notify AMERIGROUP’s designated
Corporate Compliance/Ethics Officer of any knowledge of violation of such Program; and Associate is
not aware of any such violation by Associate or anyone else employed by AMERIGROUP. Associate
confirms that Associate has complied with the duties and obligations outlined in this Section and
Associate acknowledges that such compliance is a condition to Associate’s eligibility to receive
the benefits described in the Special Separation Package.

(b) Associate agrees to conduct an exit interview on or before the End Date with the Senior Vice
President for Business Ethics and will share any and all concerns regarding the operation of
AMERIGROUP whether or not those concerns were previously expressed to senior management. Associate
and AMERIGROUP agree that in the event the meeting is not recorded, that the Senior Vice President
for Business Ethics will create an attachment outlining the concerns raised by Associate and that
the attachment upon approval of both Associate and the Senior Vice President for Business Ethics
will become part of this Separation Agreement. Both parties agree that approval of the document
will not be withheld unreasonably. If the meeting is recorded, a copy of the recording will be
attached to this Separation Agreement.

7. Nonpiracy of Employees

Associate agrees that for one year from the End Date, Associate will not directly, on behalf of
Associate or any other entity or person, solicit, try to hire, hire, refer for hire, or assist in
hiring any personnel employed on the End Date by AMERIGROUP or AMERIGROUP’s subsidiaries.

8. Nondisparagement

Associate and AMERIGROUP each agree to refrain from disparaging the other. Nothing herein shall
preclude the giving of truthful testimony in any legal proceeding.

1

9. No Admission

It is understood and agreed that, prior to entering into this Separation Agreement, AMERIGROUP has
admitted no liability for the Special Separation Package provided herein or for any benefits other
than those provided by contract or AMERIGROUP policy or the provisions of this Separation
Agreement. AMERIGROUP has entered into this Separation Agreement solely for the purposes set forth
in Section A.2. and to maintain an amicable and cooperative relationship between Associate and
AMERIGROUP.

10. No Waiver or Breach or Remedy

A waiver by AMERIGROUP of the breach of any of the provisions of this Separation Agreement by
Associate shall not be deemed a waiver by AMERIGROUP or any subsequent breach, nor shall recourse
to any remedy hereunder be deemed a waiver of any other or further relief or remedy provided for
herein.

11. Severability

In the event that any provision of this Separation Agreement is determined to be invalid by a court
of competent jurisdiction, all other provisions of this Separation Agreement shall remain in full
force and effect.

12. Entire Agreement

(a) This Separation Agreement, its exhibits, if any, and the agreements incorporated herein by
reference constitute the entire understanding of the Parties relating to the subject matter hereof
and, subject to the provisions of Section B.1(j) and Section B.4(c) herein, supersedes and cancels
all agreements, written or oral, made prior to the date hereof between Associate and AMERIGROUP
relating to employment, salary, bonus, or other compensation of any description, equity
participation, pension, post-retirement benefits, severance or other remuneration, other than, if
and where applicable, the ENNDA, the Stock Agreements, AMERIGROUP’s 401(k) Plan, the Employee Stock
Purchase Plan and the Executive Deferred Compensation Plan.

(b) The Parties understand and agree that all terms of this Separation Agreement are contractual
and are not a mere recital, and represent and warrant that they are competent and possess the full
and complete authority to covenant and agree as herein provided.

(c) Associate understands, agrees, and represents that the covenants made herein and the releases
herein executed may affect rights and liabilities of substantial extent and agrees that the
covenants and releases provided herein are in Associate’s best interest. Associate represents and
warrants that, in negotiating and executing this Separation Agreement, Associate has had an
adequate opportunity to consult with competent counsel or other representatives of Associate’s
choosing concerning the meaning and effect of each term and provision hereof, and that there are no
representations, promises or agreements other than those expressly set forth in writing herein.
Associate acknowledges that Associate received a copy of this Separation Agreement and was offered
a reasonable period to consider it.

(d) The Parties agree that this is a negotiated separation agreement and that no term herein shall
be construed against a Party merely because that Party or its attorneys proposed or drafted such
term.

(e) The Parties have carefully read this Separation Agreement in its entirety; fully understand
and agree to its terms and provisions; intend and agree that it is final and binding and understand
that, in the event of a breach, either Party may seek relief, including damages, restitution and
injunctive relief, at law or in equity, in a court of competent jurisdiction.

(f) Each Party also agrees that, without receiving further consideration, it will sign and deliver
such documents and do anything else that is necessary in the future to make the provisions of this
Separation Agreement effective.

13. Agreement Binding

This Separation Agreement shall be binding on the Parties and upon their heirs, administrators,
representatives, executors, successors, and assigns and shall inure to their benefit and to that of
their heirs, administrators, representatives, executors, successors and assigns.

14. Violation 

(a) In the event that Associate violates any of the terms of this Separation Agreement, AMERIGROUP
reserves any rights it may have to terminate any or all of its commitments herein and to recover
any monies or other considerations previously provided to Associate and to pursue any other
remedies available to AMERIGROUP.

(b) Nothing contained in this Separation Agreement shall be construed to prevent Associate from
seeking legal redress in the event that AMERIGROUP violates this Separation Agreement.

15. Voluntary

(a) Associate agrees that Associate has read and carefully considered this Separation Agreement
and has had the opportunity to ask questions of AMERIGROUP representatives. Associate agrees that
Associate also had the opportunity to discuss this Separation Agreement with an attorney of
Associate’s choosing. Associate agrees that Associate is signing this Separation Agreement
voluntarily and of Associate’s own free will.

(b) Associate acknowledges that the Associate need not and should not sign this Separation
Agreement unless the statements in it are completely true and accurate.

16. Choice of Law

This Separation Agreement and the legal relationships among the Parties hereto shall be governed by
and construed in accordance with the laws of the Commonwealth of Virginia, without regard to
conflict of laws principles. Each Party hereby irrevocably consents in any dispute, action,
litigation or other proceeding concerning this Separation Agreement, to the jurisdiction of the
state and federal courts having venue for the City of Virginia Beach, Virginia, and irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such suit, action or proceeding in such court and further waives the right to
object, with respect to such suit, action or proceeding, that such court does not have jurisdiction
over such Party or that venue is improper.

17. Section Headings

The section headings in this Separation Agreement are intended to be for reference purposes only
and shall in no way be construed to modify or restrict any of the terms or provisions of this
Separation Agreement.

18. No Third-Party Rights

This Separation Agreement is entered into solely between AMERIGROUP and Associate and shall not be
deemed to create any rights in any third parties or to create any obligations of AMERIGROUP to any
third party, except as specifically stated herein.

19. Non-Parties

The officers, directors, employees, shareholders and representatives of AMERIGROUP are not Parties
to this Agreement and shall have no obligation or liability relating to this Separation Agreement.

20. Counterparts

This Separation Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which shall constitute one and the same instrument.

IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the foregoing
Separation Agreement.

2

ASSOCIATE

     

Eric M. Yoder, M.D.

AMERIGROUP CORPORATION

By:      

Stanley F. Baldwin

Executive Vice President

COMMONWEALTH OF VIRGINIA

Acknowledged before me by Eric M. Yoder, M.D. on the 14th day of February 2007.

     

Notary Public

My Commission Expires:

COMMONWEALTH OF VIRGINIA

Acknowledged before me by Stanley F. Baldwin, as Executive Vice President of AMERIGROUP
Corporation, on the 14th day of February 2007.

     

	 	 	 	 	 
	Notary Public
My Commission Expires:
	 	 	—	 
	 
	 	 	 	 

3

EXHIBIT A

GENERAL RELEASE

THIS GENERAL RELEASE (“Release Agreement”) is made between Eric M. Yoder, M.D. (“Associate”) and
AMERIGROUP Corporation, its subsidiaries, successors, affiliates and assigns, which are referred to
herein, collectively and individually, as “AMERIGROUP” (Associate and AMERIGROUP individually and
collectively referred to herein as the “Party” or the “Parties”).

REASONS FOR AGREEMENT

A. AMERIGROUP and Associate are Parties to that certain Separation Agreement (the “Separation
Agreement”).

B. Under the Separation Agreement, AMERIGROUP and Associate have agreed that Associate’s
employment with AMERIGROUP shall terminate effective as of the close of business on April 1, 2007
(the “End Date”).

C. In connection with such termination, AMERIGROUP has agreed to provide Associate with severance
payments under Section B.1 of the Separation Agreement (the “Severance Payments”) and as a
condition to receipt of such Severance Payments, Associate has agreed to execute and deliver this
Release Agreement.

NOW, THEREFORE, for and in consideration of the mutual promises and commitments specified herein
and in the Separation Agreement, the Parties agree as follows:

1. General Release.

Associate states and affirms that as of the date of this Release Agreement, Associate has not
previously filed or joined in any complaints, charges, or lawsuits against AMERIGROUP with any
governmental agency or court of law or equity. Associate agrees, for and on behalf of Associate
and Associate’s estate, heirs, spouse, life partner, representatives, successors and assigns, that
Associate has or will be finally and permanently separated from employment with AMERIGROUP as the
close of business on End Date, and that Associate waives, releases and forever discharges
AMERIGROUP and all related entities, their directors, officers, employees, attorneys and agents,
all of whom are third-party beneficiaries of this Release Agreement, from any and all claims, known
or unknown, that Associate has or may have relating to or arising out of Associate’s employment
with AMERIGROUP and the separation thereof, including but not limited to any claims of wrongful
discharge, breach of express or implied contract, fraud, misrepresentation, defamation, liability
in tort, claims of any kind, any claims under Title VII of the Civil Rights Act of 1964, as
amended, the Age Discrimination in Employment Act, the Fair Labor Standards Act, the Family
Medical Leave Act, the Equal Pay Act, Worker’s Compensation laws, the Associate Retirement Income
Security Act (except for any vested benefits under any tax qualified benefit plan), the Older
Workers Benefit Protection Act, or any other Executive Orders, federal, state or local law relating
to employment, employee benefits or the termination of employment, or any other claim arising out
of or relating to Associate’s employment, excepting only:

(a) Associate’s right to receive payment under Section B.1 of the Separation Agreement;

(b) Associate’s right to be offered benefits to which Associate is entitled under the
Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”);

(c) Associate’s accrued rights under AMERIGROUP’s 401(k) Plan and the Executive Deferred
Compensation Plan; and

	 	(d)	 	Associate’s rights under any Stock Agreements (subject to any effect of
Associate’s termination under such agreements) or Employee Stock Purchase Plan.

This Release Agreement does not waive any rights or claims that Associate may have which arise
after the date Associate signs this Release Agreement. Associate also represents that Associate
has not given, sold, assigned, or transferred to any one else, any claim, or a portion of a claim
discussed in this Release Agreement.

Associate also affirms that Associate has been paid for and/or has received all compensation,
wages, bonuses, commissions, and/or benefits to which Associate may be entitled. Associate
affirms that Associate has been granted any leave to which Associate was entitled under the Family
and Medical Leave Act or related state or local leave or disability accommodation laws, and that
there has been no retaliation as a result of, interference with, or restraint of Associate’s use of
such leave. Associate further affirms that Associate has no known workplace injuries or
occupational diseases.

Associate further affirms that Associate has not been retaliated against for reporting any
allegations of wrongdoing by AMERIGROUP or its officers, including any allegations of corporate
fraud.

Both Parties acknowledge that this Release Agreement does not limit either Party’s right, where
applicable, to file or participate in an investigative proceeding of any federal, state or local
governmental agency. To the extent permitted by law, Associate agrees that if such an
administrative claim is made, Associate shall not be entitled to recover any individual monetary
relief or other individual remedies. Associate further agrees that Associate will not provide
information or testimony in any court action against AMERIGROUP except pursuant to a lawful
subpoena and that Associate will notify AMERIGROUP of any subpoena or informal request to testify
in court that she receives within three (3) business days after her receipt of such subpoena or
informal request.

2. Claims and Actions.

(a) Associate promises never to file a lawsuit asserting any claims that are released in this
Release Agreement.

(b) This Release Agreement does not waive any rights or claims that Associate may have which arise
after the date the Associate signs this Release Agreement.

3. Special ADEA Waiver and Release Notification.

(a) The General Release, Section 1 above, of this Release Agreement, includes a waiver and release
of all claims under the Age Discrimination in Employment Act (“ADEA”) and, therefore, pursuant to
the requirements of the ADEA, Associate acknowledges that Associate has been:

	 	i.	 	advised that the waiver and release includes, but is not limited to, all
claims under the ADEA arising up to and including the date of execution of this waiver
and release;

	 	ii.	 	advised to consult with an attorney and/or other advisor concerning
Associate’s rights and obligations under this Release Agreement prior to Associate’s
execution of it. Associate understands that whether or not to do so is Associate’s
decision. Associate agrees, however, that AMERIGROUP shall not be required to pay any
of Associate’s attorney’s fees connection with Associate’s consideration of this
Release Agreement, and that the payments and benefits referenced above are in full and
complete settlement of all matters between Associate and AMERIGROUP, including, but
not limited to, attorney’s fees and costs; and

	 	iii.	 	given at least twenty-one (21) days within which to consider this Release
Agreement.

4. Entire Agreement.

(a) This Release Agreement, in conjunction with the surviving provisions of the Separation
Agreement, constitutes the entire agreement and understanding between the Parties and supercedes
all other agreements between the Parties whether oral or written with respect to the subject matter
hereto.

(b) The Parties understand and agree that all terms of this Release Agreement are contractual and
are not a mere recital and represent and warrant that they are competent and possess the full and
complete authority to covenant and agree as herein provided.

(c) Associate understands, agrees and represents that the covenants made herein and the releases
herein executed may affect rights and liabilities of substantial extent and agrees that the
covenants and releases provided herein are in Associate’s best interest. Associate represents and
warrants that, in negotiating and executing this Release Agreement, Associate has had an adequate
opportunity to consult with competent counsel or other representatives of Associate’s choosing
concerning the meaning and effect of each term and provision hereof, and that there are no
representations, promises or agreements other than those expressly set forth in writing herein.
Associate acknowledges that Associate received a copy of this Release Agreement and was offered a
reasonable period to consider it.

(d) The Parties agree that this is a negotiated release agreement and that no term herein shall be
construed against a Party merely because that Party or its attorneys proposed or drafted such term.

(e) The Parties have carefully read this Release Agreement in its entirety; fully understand and
agree to its terms and provisions; intend and agree that it is final and binding and understand
that, in the event of a breach, either Party may seek relief, including damages, restitution and
injunctive relief, at law or in equity, in a court of competent jurisdiction.

(f) Each Party also agrees that, without receiving further consideration, it will sign and deliver
such documents and do anything else that is necessary in the future to make the provisions of this
Release Agreement effective.

5. Voluntary.

Associate agrees that Associate has read and carefully considered this Release Agreement and has
had the opportunity to ask questions of company representatives. Associate agrees that Associate
also had the opportunity to discuss this Release Agreement with an attorney. Associate agrees that
Associate is signing this Release Agreement voluntarily and of Associate’s own free will.

6. Confirmation of Corporate Compliance.

Associate acknowledges that Associate will not be eligible to receive the Severance Benefits if
Associate is found to have committed or condoned during Associate’s employment any acts of fraud
against AMERIGROUP or fraud against the government. Associate hereby confirms that: Associate has
not committed or condoned any such fraudulent activity; Associate has complied with AMERIGROUP’s
Corporate Compliance/Ethics Program during Associate’s employment; Associate has not participated
in or knowingly permitted others to engage in any conduct prohibited by AMERIGROUP’s Corporate
Compliance/Ethics Program; Associate understands that Associate has a duty under that program to
notify AMERIGROUP’s designated Corporate Compliance/Ethics Officer of any knowledge of violation of
such Program; and Associate is not aware of any such violation by Associate or anyone else employed
by AMERIGROUP. Associate confirms that Associate has complied with the duties and obligations
outlined in this Section and Associate acknowledges that such compliance is a condition to
Associate’s eligibility to receive the benefits described in the Special Separation Package.

7. Choice of Law.

This Release Agreement and the legal relationships among the Parties hereto shall be governed by
and construed in accordance with the laws of the Commonwealth of Virginia, without regard to
conflict of laws principles. Each Party hereby irrevocably consents in any dispute, action,
litigation or other proceeding concerning this Release Agreement, to the jurisdiction of the state
and federal courts having venue for the City of Virginia Beach, Virginia, and irrevocably waives,
to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of
such suit, action or proceeding in such court and further waives the right to object, with respect
to such suit, action or proceeding, that such court does not have jurisdiction over such Party or
that venue is improper.

8. Section Headings.

The section headings in this Release Agreement are intended to be for reference purposes only and
shall in no way be construed to modify or restrict any of the terms or provisions of this Release
Agreement.

9. No Third-Party Rights.

This Release Agreement is entered into solely between AMERIGROUP and Associate and shall not be
deemed to create any rights in any third parties or to create any obligations of AMERIGROUP to any
third party, except as specifically stated herein, and, as provided under this Release Agreement.

10. Counterparts.

This Release Agreement may be executed in two or more counterparts, each of which shall be deemed
an original but all of which shall constitute one and the same instrument.

ASSOCIATE

     

Eric M. Yoder, M.D.

AMERIGROUP CORPORATION

By:      

Stanley F. Baldwin

Executive Vice President

COMMONWEALTH OF VIRGINIA

Acknowledged before me by Eric M. Yoder, M.D. on the 14th day of February 2007.

     

Notary Public

My Commission Expires:

COMMONWEALTH OF VIRGINIA

Acknowledged before me by Stanley F. Baldwin, as Executive Vice President of AMERIGROUP
Corporation, on the 14th day of February 2007.

     

	 	 	 	 	 
	Notary Public
My Commission Expires:
	 	 	—	 
	 
	 	 	 	 

4

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