Exhibit 10.01

FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”), dated as of
June 9, 2006, is entered into among TORCHMARK CORPORATION, a Delaware
corporation (the “Borrower”), TMK RE LTD., a Bermuda reinsurance corporation
(“TMK”), the lenders listed on the signature pages hereof as Lenders (the
“Lenders”), and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line
Lender and L/C Issuer.

BACKGROUND

A. The Borrower, the Lenders, the Administrative Agent, the Swing Line Lender
and the L/C Issuer are parties to that certain Credit Agreement, dated as of
November 18, 2004, (the “Credit Agreement”). The terms defined in the Credit
Agreement and not otherwise defined herein shall be used herein as defined in
the Credit Agreement.

B. The Borrower has requested certain amendments to the Credit Agreement.

C. The Lenders, the Administrative Agent, the Swing Line Lender and the L/C
Issuer hereby agree to amend the Credit Agreement and provide the requested
waiver, subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the covenants, conditions and agreements
hereafter set forth, and for other good and valuable consideration, the receipt
and adequacy of which are all hereby acknowledged, the Borrower, the Lenders,
the Swing Line Lender, the L/C Issuer and the Administrative Agent covenant and
agree as follows:

1. AMENDMENTS.

(a) The definition of “Consolidated Indebtedness” set forth in Section 1.01 of
the Credit Agreement is hereby amended to read as follows:

“Consolidated Indebtedness” means the Indebtedness of the Borrower and its
Subsidiaries (excluding any obligations in respect of Subordinated Debt not to
exceed $250,000,000 in aggregate principal amount) determined on a consolidated
basis in accordance with GAAP.

(b) The definition of “Consolidated Interest Expense” set forth in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

“Consolidated Interest Expense” means, for any period of calculation, interest
expense, whether paid or accrued, of the Borrower and its Subsidiaries
(excluding any interest expense in respect of Subordinated Debt, the aggregate
principal amount of which does not exceed $250,000,000) calculated on a
consolidated basis in accordance with GAAP.

 

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(c) The definition of “Consolidated Net Worth” set forth in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:

“Consolidated Net Worth” means, at any date of determination, the amount of
consolidated common and preferred shareholders’ equity of the Borrower and its
Subsidiaries (including, without limitation, Subordinated Debt, the aggregate
principal amount of which does not exceed $250,000,000), determined as at such
date in accordance with GAAP; provided, however, that the effect of the
application of FAS 115 shall be excluded when computing Consolidated Net Worth.

(d) The definition of “Debenture Purchase Agreements” set forth in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

“Debenture Purchase Agreements” means (i) the Debenture Purchase Agreement dated
as of November 2, 2001 between the Borrower and Torchmark Capital Trust I
entered into in connection with the Trust Preferred Securities I, as in effect
on November 2, 2001, (ii) the Debenture Purchase Agreement dated as of
December 13, 2001 between the Borrower and Torchmark Capital Trust II entered
into in connection with the Trust Preferred Securities II, as in effect on
December 13, 2001, and (iii) any other agreement between the Borrower and a
third Person with respect to the issuance of Subordinated Debt or Preferred
Securities.

(e) The definition of “Junior Subordinated Debentures” set forth in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

“Junior Subordinated Debentures” means, collectively, the 7 3/4% Junior
Subordinated Debentures due 2041 of the Borrower in an aggregate amount of
$154,639,200 issued in connection with the Trust Preferred Securities I and
Trust Preferred Securities II, respectively.

(f) The definition of “Preferred Securities” set forth in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:

“Preferred Securities” means, to the extent outstanding, collectively, the Trust
Preferred Securities I, the Trust Preferred Securities II, and any other trust
preferred securities issued in connection with any other Subordinated Debt.

(g) Section 1.01 of the Credit Agreement is hereby amended by adding the defined
term “Subordinated Debt” thereto in proper alphabetical order to read as
follows:

“Subordinated Debt” means, collectively, (i) the Junior Subordinated Debentures
and (ii) any other unsecured Indebtedness of the Borrower (and not a Subsidiary)
which is subordinated by its terms to the prior payment in full of the
Obligations evidenced by this Agreement in a manner no less favorable to the
Lenders than the Junior Subordinated Debentures and which contain covenants that
are not less favorable to the Borrower than those contained in the Junior
Subordinated Debentures.

 

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(h) Section 7.12 of the Credit Agreement is hereby amended to read as follows:

7.12 Preferred Securities. The Borrower shall not, and shall not permit
Torchmark Capital Trust I, Torchmark Capital Trust II or any other obligor in
respect of any other Preferred Securities to, declare or pay dividends or
distributions on, or redeem, purchase or otherwise acquire, any Preferred
Securities or any portion thereof if at such time, or after giving effect
thereto, a Default or Event of Default exists or would exist.

2. REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its execution
and delivery hereof, the Borrower represents and warrants that, as of the date
hereof:

(a) the representations and warranties contained in the Credit Agreement and the
other Loan Documents are true and correct on and as of the date hereof as made
on and as of such date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they shall be
true and correct as of such earlier date;

(b) no event has occurred and is continuing which constitutes a Default or an
Event of Default;

(c) (i) each of the Borrower and TMK has full power and authority to execute and
deliver this First Amendment, (ii) this First Amendment has been duly executed
and delivered by each of the Borrower and TMK, and (iii) this First Amendment
and the Credit Agreement, as amended hereby, constitute the legal, valid and
binding obligations of each of the Borrower and TMK, enforceable in accordance
with their respective terms, except as enforceability may be limited by
applicable Debtor Relief Laws and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law) and except as
rights to indemnity may be limited by federal or state securities laws;

(d) neither the execution, delivery and performance of this First Amendment or
the Credit Agreement, as amended hereby, nor the consummation of any
transactions contemplated herein or therein, will conflict with any Law or
Organization Documents of the Borrower or TMK, or any indenture, agreement or
other instrument to which the Borrower or TMK or any of their respective
property is subject; and

(e) no authorization, approval, consent, or other action by, notice to, or
filing with, any Governmental Authority or other Person not previously obtained
is required for the execution, delivery or performance by the Borrower or TMK of
this First Amendment.

3. CONDITIONS TO EFFECTIVENESS. This First Amendment shall be effective upon
satisfaction or completion of the following:

(a) the Administrative Agent shall have received counterparts of this First
Amendment executed by the Required Lenders;

(b) the Administrative Agent shall have received counterparts of this First
Amendment executed by each of the Borrower and TMK; and

 

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(c) the Administrative Agent shall have received, in form and substance
satisfactory to the Administrative Agent and its counsel, such other documents,
certificates and instruments as the Administrative Agent shall reasonably
require.

4. REFERENCE TO THE CREDIT AGREEMENT.

(a) Upon the effectiveness of this First Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, or words of like import shall mean
and be a reference to the Credit Agreement, as affected and amended hereby.

(b) The Credit Agreement, as amended by the amendments referred to above, shall
remain in full force and effect and is hereby ratified and confirmed.

5. COSTS, EXPENSES AND TAXES. Each Loan Party agrees to pay on demand all
reasonable costs and expenses of the Administrative Agent in connection with the
preparation, reproduction, execution and delivery of this First Amendment and
the other instruments and documents to be delivered hereunder (including the
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent with respect thereto).

6. EXECUTION IN COUNTERPARTS. This First Amendment may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed and delivered shall be deemed to be an original and
all of which when taken together shall constitute but one and the same
instrument. For purposes of this First Amendment, a counterpart hereof (or
signature page thereto) signed and transmitted by any Person party hereto to the
Administrative Agent (or its counsel) by facsimile machine, telecopier or
electronic mail is to be treated as an original. The signature of such Person
thereon, for purposes hereof, is to be considered as an original signature, and
the counterpart (or signature page thereto) so transmitted is to be considered
to have the same binding effect as an original signature on an original
document.

7. GOVERNING LAW; BINDING EFFECT. This First Amendment shall be governed by and
construed in accordance with the laws of the State of Texas applicable to
agreements made and to be performed entirely within such state, provided that
each party shall retain all rights arising under federal law, and shall be
binding upon the parties hereto and their respective successors and assigns.

8. HEADINGS. Section headings in this First Amendment are included herein for
convenience of reference only and shall not constitute a part of this First
Amendment for any other purpose.

9. ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS FIRST AMENDMENT,
AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

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REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

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IN WITNESS WHEREOF, this First Amendment is executed as of the date first set
forth above.

 

TORCHMARK CORPORATION By:  

/s/ Michael J. Klyce

Name:   Michael J. Klyce Title:   Vice President and Treasurer TMK RE, LTD. By:
 

/s/ Michael J. Klyce

Name:   Michael J. Klyce Title:   Assistant Treasurer

 

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BANK OF AMERICA, N.A., as Administrative Agent By:  

/s/ Aamir Saleem

Name:   Aamir Saleem Title:   Vice President

 

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BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender By:  

/s/ Jason Cassity

Name:   Jason Cassity Title:   Vice President

 

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JPMORGAN CHASE BANK, N.A., as Syndication Agent By:  

 

Name:  

 

Title:  

 

 

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JPMORGAN CHASE BANK, N.A., as a Lender By:  

 

Name:  

 

Title:  

 

 

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KEYBANK NATIONAL ASSOCIATION, as a Lender By:  

/s/ Mary K. Young

Name:   Mary K. Young Title:   Senior Vice President

 

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REGIONS BANK, as a Lender By:  

/s/ Brook H. Balogh

Name:   Brook H. Balogh Title:   Senior Vice President

 

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SUNTRUST BANK, as a Lender By:  

/s/ Kelly Gunter

Name:   Kelly Gunter Title:   Vice President

 

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THE BANK OF NEW YORK, as a Lender By:  

/s/ Lizanne T. Eberle

Name:   Lizanne T. Eberle Title:   Vice President

 

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HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender By:  

/s/ Daniel G. Serrao

Name:   Daniel G. Serrao Title:   Senior Vice President

 

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WACHOVIA BANK, N.A., as a Lender By:  

/s/ W. Spencer Ragland

Name:   W. Spencer Ragland Title:   Senior Vice President

 

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AMSOUTH BANK, as a Lender By:  

/s/ David A. Simmons

Name:   David A. Simmons Title:   Senior Vice President

 

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COMERICA BANK, as a Lender By:  

/s/ Janet L. Wheeler

Name:   Janet L. Wheeler Title:   Assistant Vice President

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender By:  

/s/ Thomas W. Doddridge

Name:   Thomas W. Doddridge Title:   Vice President

 

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COMPASS BANK, as a Lender By:  

/s/ Alex Morton

Name:   Alex Morton Title:   Senior Vice President

 

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FIRST COMMERCIAL BANK, as a Lender By:  

/s/ James W. Brunstad

Name:   James W. Brunstad Title:   Senior Vice President

 

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UMB BANK, n.a., as a Lender By:  

/s/ David A. Proffitt

Name:   David A. Proffitt Title:   Senior Vice President

 

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