Back to Form 10-K/A
Exhibit 10.124
CONFIDENTIAL
STOCK OPTION AGREEMENT AND
GENERAL RELEASE
This Stock Option Agreement and General Release
(the “ Agreement ”), by and between
Comprehensive Health Management, Inc., a Florida corporation (the
“ Company ”), and Anil Kottoor, an
individual (“ Employee ”),
is entered into as of the “Effective Date,” as defined
below in Section 11. The Company and Employee shall be
referred to collectively herein as the
“Parties.”
WHEREAS, the Company wishes to provide certain
consideration in exchange for a release of liabilities by Employee
and certain other covenants and agreements by Employee;
and
WHEREAS, Employee and the Company wish to
formalize their agreement.
NOW, THEREFORE, in consideration of the
foregoing and the mutual covenants and agreements set forth herein,
which covenants and agreements constitute good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereto agree as follows:
1.
Unconditional and Full General Release of All Claims
.
(a) In
exchange for the consideration set forth in Section 2 below, on
behalf of Employee, Employee’s agents, attorneys, heirs,
administrators, executors, assigns, and other representatives, and
anyone acting or claiming on Employee’s or their joint or
several behalf, Employee hereby covenants never to sue and
releases, waives, acquits, and forever discharges the Company, its
divisions, subsidiaries, affiliates, parents, related entities, and
their respective past or present employees, officers, directors,
stockholders, partners, investors, executives, managers, agents,
attorneys, representatives, successors, and assigns, and anyone
acting on their joint or several behalf (collectively, the “
Releasees ”), from any and all claims, actions,
causes of action, demands, damages, suits in equity, costs,
expenses, liabilities, or other losses, of any kind whatsoever,
whether known or unknown, that exist or may exist from the
beginning of time up to and including the date of Employee’s
execution of this Agreement or that in any way arise from, grow out
of, or are related to any events or circumstances that occurred on
or prior to the date of Employee’s execution of this
Agreement, including, but not limited to, any matter related to
Employee’s employment with the Company or the termination
thereof. By way of example only, and without limiting
the immediately preceding sentence, as used herein the terms
“claims,” “causes of action,” and
“demands” shall include, and Employee agrees that
neither Employee nor Employee’s representative(s) shall file,
or cause to be filed, a complaint, lawsuit, or any other claim
against the Releasees with respect to (i) any federal, state,
or local employment law or statute, including, but not limited to,
Title VII of the Civil Rights Act of 1964, as amended, the
Americans with Disabilities Act, the Family and Medical Leave Act,
the Employee Retirement Income Security Act, and Chapters 448 or
760 of the Florida Statutes, or (ii) any claim based on the
existence or breach of oral or written contracts of employment, the
negligence of any Releasees, negligent or intentional
misrepresentations, promissory estoppel, interference with contract
or employment, defamation or damage to business or personal
reputation, assault and battery, negligent or intentional
infliction of emotional distress, unlawful discharge in violation
of public policy, discrimination, retaliation, wrongful discharge,
sexual harassment, whistleblowing, breach of implied covenant of
good faith and fair dealing, fraud, stock fraud, equity, tort,
intellectual property, personal injury, spoliation of evidence,
wage and hour law, statute or common law, claims for severance pay,
claims related to equity compensation and/or fringe benefits,
claims for attorneys’ fees, vacation pay, debts, accounts,
compensatory damages, punitive or exemplary damages, or liquidated
damages.
(b) Employee
acknowledges and agrees that Employee has been properly paid for
all hours worked, that Employee has not suffered any on-the-job
injury for which Employee has not already filed a claim, that
Employee has been properly provided any leave of absence because of
Employee’s or a family member’s health condition, and
that Employee has not been subjected to any improper treatment,
conduct, or actions due to or related to Employee’s request
for, or Employee’s taking of, any leave of absence because of
Employee’s own or a family member’s health
condition.
(c) Nothing
in this Agreement will waive, relinquish, diminish, or in any way
affect (i) any vested rights that Employee may have under Company
retirement plans, or (ii) any rights or claims that, as a matter of
law, cannot be released or waived. Although Employee is not
precluded from filing a charge with the U.S. Equal Employment
Opportunity Commission (“ EEOC ”) or
participating in an EEOC investigation, Employee, to the maximum
extent permitted by law, expressly waives any right to monetary
recovery or any other individual relief in connection with any EEOC
charge or other administrative charge or should any federal, state,
or local administrative agency or any other person pursue any
claims on Employee’s behalf arising out of or related to
Employee’s employment with the Company and/or the termination
of that employment.
2.
Consideration .
(a) In
exchange for Employee’s commitments as outlined in this
Agreement, the Company will provide Employee the right to execute
amendments to each of Employee’s stock option agreements (
“Option Extension Agreements”
). Execution by Employee of the Option Extension
Agreements shall render the post-termination of service exercise
period for the stock options that are vested and unexercised as of
the Termination Date extended for any period during which Employee
cannot exercise such stock options, because such an exercise would
violate an applicable Federal, state, local, or foreign law, until
30 days after the exercise of such stock options first would no
longer violate any applicable Federal, state, local, and foreign
laws.
(b) Employee
acknowledges that any portion of any equity award, including, but
not limited to, grants of restricted stock and options to purchase
shares of common stock, par value $.01 per share, of WellCare
Health Plans, Inc., that are not vested as of the Termination Date,
as defined in Section 3, shall expire and be forfeited in
accordance with the terms of Employee’s equity
agreements.
(c) Employee
acknowledges that, absent this Agreement, Employee has no legal,
contractual, or other entitlement to the consideration set forth in
this Section 2, and such consideration constitutes valid and
sufficient consideration for Employee’s release of claims and
other obligations set forth in this Agreement.
(d) Employee
acknowledges and agrees that the Company, including its Releasees,
has made no representations regarding the tax consequences of any
consideration received by Employee pursuant to this
Agreement. Employee agrees to pay federal, state, and/or
local taxes, if any, that are required by law to be paid with
respect to the consideration received
hereunder. Employee also agrees to indemnify and hold
the Company and the other Releasees harmless from any claims,
demands, deficiencies, levies, assessments, executions, judgments,
or recoveries by any government entity against the Company and the
other Releasees for any amounts claimed due as a result of this
Agreement pursuant to claims made under any federal, state, or
local tax laws. Employee further agrees to indemnify and
hold the Company and the other Releasees harmless for any
deficiencies, levies, assessments, fines, penalties, and/or
interest assessed by reason of any such claim.
(e) Employee
acknowledges and agrees that, should Employee breach any of
Employee’s commitments as set forth in this Agreement, the
Company may, in addition to pursuing all legal and equitable rights
and remedies that might be available, without limitation, terminate
any rights provided to Employee pursuant to this
Agreement.
3.
Severance of Employment . Pursuant to this
Agreement, Employee agrees and recognizes that Employee’s
employment relationship with the Company will terminate as of the
close of business on December 19, 2008 ( the “
Termination Date ”).
4.
Non-Competition; Non-Solicitation . Employee
acknowledges and agrees to comply with the restrictive covenants
set forth in Exhibit A, which is attached hereto and incorporated
by reference herein.
5.
Confidential Information . Employee agrees that
Employee shall not at any time for any reason, in any fashion, form
or manner, either directly or indirectly, divulge, disclose, or
communicate to any person, firm, corporation, or other business
entity, in any manner whatsoever, any confidential information or
trade secrets concerning the business of the Company or any of its
affiliates, including without limiting the generality of the
foregoing, methods or systems of its or their operation or
management, any information regarding its or their financial
matters, or any other material information (including member,
subscriber and provider lists and identifying information regarding
members and subscribers) concerning the business of the Company or
any of its affiliates, its or their manner of operation, its or
their plans or other material data (the “
Business ”). Employee agrees that
Employee shall not retain any confidential or proprietary
information, including, without limitation, any member, subscriber,
or provider lists, identifying information regarding members or
subscribers, pricing methods, financial structures, correspondence,
accounts, records, or any other documents or property made or held
by Employee or under Employee’s control in relation to the
Business of the Company or its affiliates, nor shall Employee
retain any copy of any such confidential or proprietary
information, all of which (whether in hard copy or electronic
format and including all originals and copies) shall immediately be
returned to the Company by Employee prior to the Termination Date
as defined above in Section 3.
6.
Nondisclosure of Terms .
(a) Employee
agrees that the terms and conditions of this Agreement are and
shall remain confidential. Except as specifically set
forth herein, Employee shall not disclose the terms of this
Agreement in whole or in part to any individual or entity without
prior written consent of the Company.
(b) Employee
agrees that Employee shall not disclose the terms of this Agreement
to any person except (i) to members of Employee’s
immediate family and Employee’s professional advisors, who
shall be advised of the confidentiality provisions of this Section
6, (ii) to the extent required by a final and binding court
order or other compulsory process, (iii) to any federal,
state, or local taxing authority, or (iv) upon request, to any
federal, state, or administrative enforcement agency, including,
but not