Exhibit 10.6
GOLDMAN SACHS CREDIT PARTNERS L.P.
85 Broad Street
New York, New York 10004
April 18, 2007
Wachovia Bank, National Association
Wachovia Capital Markets, LLC
201 S. College Street
Charlotte, NC 28288-0680
AMERIGROUP Corporation
PHP Holdings, Inc.
4425 Corporation Lane
Virginia Beach, Virginia 23462
     Re:      AMERIGROUP Corporation Credit Facilities
Ladies and Gentlemen:
     Reference is made to the Credit Agreement among AMERIGROUP Corporation
(“Borrower”), certain subsidiaries of Borrower, Goldman Sachs Credit Partners
L.P. (“GSCP”), Wachovia Bank, National Association and Wachovia Capital Markets,
LLC (collectively, “Wachovia”) and the several Lenders from time to time party
thereto (the “Lenders”), dated as of March 26, 2007 (as amended, restated or
otherwise modified from time to time, the “Credit Agreement”). Unless otherwise
defined herein, capitalized terms used herein have the same meanings as
specified in the Credit Agreement.
     GSCP, as one of the Joint Lead Arrangers, has consulted with Wachovia and
the Borrower on the following proposed amendments to the Credit Agreement:
     1. The definition of “Applicable Margin” would be amended and restated in
its entirety as follows:
          ““Applicable Margin’’ means (i) with respect to Term Loans, a
percentage, per annum, equal to 2.00% with respect to Eurodollar Rate Loans and
1.00% with respect to Base Rate Loans, (ii) initially, with respect to
(a) Revolving Loans, a percentage, per annum, equal to 2.25% with respect to
Eurodollar Rate Loans and (b) Revolving Loans and Swing Line Loans, a
percentage, per annum, equal to 1.25% with respect to Base Rate Loans, and
(iii) thereafter, with respect to the Revolving Loans and Swing Line Loans, a
percentage, per annum, determined by reference to the Leverage Ratio in effect
from time to time as set forth below:

 

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                              Applicable Margin for     Applicable Margin for  
Revolving Loans and Swing     Revolving Loans that are   Line Loans that are
Base Rate Leverage Ratio   Eurodollar Rate Loans   Loans
³ 1.50:1.00
    2.25 %     1.25 %
< 1.50:1.00
    2.00 %     1.00 %

No change in the Applicable Margin shall be effective until three Business Days
after the date on which Administrative Agent shall have received the applicable
financial statements and a Compliance Certificate pursuant to Section 5.2(a)
calculating the Leverage Ratio. At any time Borrower has not submitted to
Administrative Agent the applicable information as and when required under
Section 5.2(a), the Applicable Margin shall be determined as if the Leverage
Ratio were in excess of 1.50:1.00. Within one Business Day of receipt of the
applicable information under Section 5.2(a), Administrative Agent shall give
each Lender telefacsimile or telephonic notice (confirmed in writing) of the
Applicable Margin in effect from such date.”
     2. Subsection 10.5(c)(i) would be amended and restated in its entirety as
follows:
          “(i) increase any Revolving Commitment or Credit-Linked Commitment of
any Lender over the amount thereof then in effect without the consent of such
Lender; provided, no amendment, modification or waiver of any condition
precedent, covenant, Default or Event of Default shall constitute an increase in
any Revolving Commitment or Credit-Linked Commitment of any Lender;”
     Please confirm that the foregoing is in accordance with your understanding
by signing and returning to us a copy of this letter at your earliest
convenience. These amendments will become effective upon our receipt of executed
copies of this letter by all the parties hereto.
[Signature Pages Follow]

 

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            Very truly yours,

GOLDMAN SACHS CREDIT PARTNERS L.P.

 
      By:           Name:           Title:        

[SIGNATURE PAGE TO AMENDMENT LETTER]

 

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          Agreed and Accepted,
as of the date first written above:    
 
        WACHOVIA CAPITAL MARKETS, LLC    
 
       
By:
       
 
       
 
  Name:    
 
  Title:    
 
        WACHOVIA BANK, NATIONAL ASSOCIATION    
 
       
By:
       
 
       
 
  Name:    
 
  Title:    

[SIGNATURE PAGE TO AMENDMENT LETTER]

 

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          Agreed and Accepted,
as of the date first written above:    
 
        AMERIGROUP CORPORATION    
 
       
By:
       
 
       
 
  Name:    
 
  Title:    
 
        PHP HOLDINGS, INC.    
 
       
By:
       
 
       
 
  Name:    
 
  Title:    

[SIGNATURE PAGE TO AMENDMENT LETTER]