Exhibit 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as
of November 9, 2009, among UNIVERSAL AMERICAN CORP., a New York corporation (the
“Borrower”), the Lenders party to the Credit Agreement (hereinafter defined) and
BANK OF AMERICA, N.A., as the Administrative Agent for the Lenders.

 

The Borrower, the Lenders and the Administrative Agent are party to the Credit
Agreement dated as of September 18, 2007 (as heretofore amended, waived or
otherwise modified, the “Credit Agreement”), and have agreed, upon the following
terms and conditions, to amend the Credit Agreement in certain respects. 
Accordingly, for valuable and acknowledged consideration, the Borrower, the
Lenders and the Administrative Agent agree as follows:

 

1.                                       Terms and References.  Unless otherwise
stated in this Amendment, (a) terms defined in the Credit Agreement have the
same meanings when used in this Amendment and (b) references to “Sections” are
to the Credit Agreement’s sections.

 

2.                                       Amendments.

 

(a)                                  The grid appearing in the definition of
“Applicable Rate” set forth in Section 1.01 is amended to read in its entirety
as follows:

 

Level

 

Consolidated
Leverage Ratio

 

Eurodollar Rate
+
Letters of Credit

 

Base Rate
+

 

Commitment
Fee Rate

 

1

 

> 2.00:1.00

 

1.250

%

.250

%

.300

%

2

 

< 2.00:1.00 and > 1.25:1.00

 

1.125

%

.125

%

.275

%

3

 

< 1.25:1.00

 

1.000

%

.0

%

.250

%

 

(b)                                 Section 7.06(d) is amended to read in its
entirety as follows:

 

(d)                                 if a Rating Condition exists at the time
such Restricted Payment is declared, the Borrower may declare or make, directly
or indirectly, a Restricted Payment if such Restricted Payment is payable in
cash and the amount of such Restricted Payment, when aggregated with the amount
of all other Restricted Payments committed to be made in cash pursuant to this
Section 7.06(d) at a time that a Rating Condition exists, does not exceed
$200,000,000; provided that with respect to any Restricted Payment declared
and/or made pursuant to this Section 7.06(d) in excess of $125,000,000 in the
aggregate, the Borrower will make a prepayment of the Term Loans pursuant to
Section 2.05(a) in an amount equal to fifty percent (50%) of the amount of such
Restricted Payment (but solely with respect to any Restricted Payment (or
portion thereof) that is in excess of $125,000,000 in the aggregate) not less
than five (5) Business Days after such Restricted Payment is made.

 

First Amendment to

Credit Agreement

 

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3.                                       Conditions Precedent to Effectiveness
of Amendment.  This Amendment shall not be effective unless and until the
Administrative Agent receives: (a) counterparts of this Amendment executed by
the Borrower, the Required Lenders and the Administrative Agent and consented to
in writing by the Guarantors; (b) payment of an amendment fee to each Lender
that executes and delivers this Amendment at or before noon, New York time on
November 9, 2009, in an amount equal to .20% of the sum of (i) the outstanding
principal balance of the Term Loan owing to such Lender and (ii) the Revolving
Credit Commitment of such Lender, in each case immediately before giving effect
to this Amendment; (c) payment of all reasonable expenses, including reasonable
legal fees and expenses of counsel to the Administrative Agent, incurred by the
Administrative Agent in connection with this Amendment, to the extent invoiced
to the Borrower on or prior to the date hereof; and (d) such documents as the
Administrative Agent may reasonably request to evidence the due authorization of
the execution, delivery and performance by the Borrower and each of the
Guarantors of this Amendment, the incumbency of the officer of the Borrower and
each of the Guarantors executing this Amendment, and any other matters relevant
thereto.

 

4.                                       Representations.  The Borrower
represents and warrants to the Administrative Agent and the Lenders as follows: 
(a) the execution, delivery and performance by the Borrower of this Amendment
and the Credit Agreement, as amended hereby, have been duly authorized by all
necessary corporate action; (b) after giving effect to this Amendment, all
representations and warranties made or deemed made by the Borrower in the Loan
Documents are true and correct in all material respects as of the date hereof
(provided that any such representation and warranty that is qualified as to
“materiality,” “Material Adverse Effect” or similar language is true and correct
in all respects), except to the extent that such representations and warranties
expressly relate solely to an earlier date, in which case such representations
and warranties were true and accurate in all material respects on and as of such
earlier date (provided that any such representation and warranty that was
qualified as to “materiality,” “Material Adverse Effect” or similar language was
true and correct in all respects), and except for changes in factual
circumstances not prohibited by the Credit Agreement; and (c) no Default or
Event of Default has occurred and is continuing as of the date hereof.

 

5.                                       Effect of Amendment.  This Amendment is
a Loan Document.  Except as expressly modified and amended by this Amendment,
all of the terms, provisions and conditions of the Loan Documents shall remain
unchanged and in full force and effect.  If any part of this Amendment is for
any reason found to be unenforceable, all other portions of it shall
nevertheless remain enforceable.  The Loan Documents and any and all other
documents heretofore, now or hereafter executed and delivered pursuant to the
terms of the Credit Agreement are hereby amended so that any reference to the
Credit Agreement shall mean a reference to the Credit Agreement as amended
hereby.

 

6.                                       Expenses.  The Borrower shall pay all
reasonable fees and expenses paid or incurred by the Administrative Agent
incident to this Amendment, including, without limitation, the reasonable fees
and expenses of the Administrative Agent’s counsel in connection with the
negotiation, preparation, delivery and execution of this Amendment and any
related documents.

 

7.                                       Governing Law.  This Amendment shall be
governed by and construed in accordance with and be governed by the laws of the
State of New York, without regard to conflict of laws principles.

 

8.                                       Counterparts.  This Amendment may be
executed in any number of counterparts and by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which taken together shall constitute one and the same
instrument.  Delivery of an executed signature page to this Amendment by
telecopy or other electronic imaging means shall be effective as delivery of a
manually executed counterpart of this Amendment.

 

First Amendment to

Credit Agreement

 

2

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9.                                       ENTIRETY.  THIS AMENDMENT, THE CREDIT
AGREEMENT, AND THE OTHER LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE
PARTIES AND SUPERCEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING
TO THE SUBJECT MATTER HEREOF.  THESE LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

10.                                 Parties.  This Amendment binds and inures to
the benefit of the Borrower, the Guarantors, the Administrative Agent, the
Lenders and their respective permitted successors and assigns.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK.

SIGNATURE PAGES FOLLOW.]

 

First Amendment to

Credit Agreement

 

3

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

UNIVERSAL AMERICAN CORP., as the Borrower

 

 

 

 

 

By:

 

 

 

Robert A. Waegelein, Executive Vice President
and Chief Financial Officer

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

BANK OF AMERICA, N.A., as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

 

 

BANK OF AMERICA, N.A., as the

 

Administrative Agent

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

BANK OF COMMUNICATIONS CO., LTD., NEW
YORK BRANCH, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

RAYMOND JAMES BANK FSB, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

CALYON NEW YORK BRANCH, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

CHANG HWA COMMERCIAL BANK, LTD., LOS
ANGELES BRANCH, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

CITIBANK, N.A., as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

SUNTRUST BANK, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

U.S. BANK NATIONAL ASSOCIATION, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

FIFTH THIRD BANK, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

NATIONAL BANK OF EGYPT, NEW YORK BRANCH, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

NATIONAL CITY BANK, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

TAIPEI FUBON COMMERCIAL BANK, LOS ANGELES BRANCH, as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

UNION BANK OF CALIFORNIA, N.A., as a Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

                                                                    , as a
Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of
the date first set forth above, among Universal American Corp., as the Borrower,
Bank of America, N.A., as the Administrative Agent, and certain Lenders party
thereto.

 

 

                                                                    , as a
Lender

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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To induce the Administrative Agent and the Lenders to enter into this Amendment,
the undersigned consent and agree (a) to its execution and delivery and terms
and conditions thereof, (b) that this document in no way releases, diminishes,
impairs, reduces, or otherwise adversely affects any Liens, Guaranties,
assurances, or other obligations or undertakings of any of the undersigned under
any Loan Documents, and (c) that this Amendment binds each of the undersigned
and its successors and permitted assigns and inures to the benefit of the
Administrative Agent, the Lenders, and their respective successors and permitted
assigns.

 

 

HERITAGE HEALTH SYSTEMS, INC., as a Guarantor

 

MEMBERHEALTH LLC, as a Guarantor

 

 

 

 

 

 

By:

 

 

By:

 

 

Name:

 

 

 

Name:

 

 

Title:

 

 

 

Title:

 

 

Signature Page to First Amendment to Credit Agreement

 

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