Document:

EX-10.1

AMENDMENT

TO THE

AMERIGROUP CORPORATION SEVERANCE PLAN

WHEREAS, AMERIGROUP Corporation, a Delaware corporation (the “Company”), maintains the
AMERIGROUP Corporation Severance Plan (as amended, the “Plan”) for the benefit of its employees and
the employees of its participating subsidiaries;

WHEREAS, the Company is authorized, pursuant to Article IV of the Plan, to amend the Plan; and

WHEREAS, it is deemed desirable to amend the Plan as set forth herein.

NOW, THEREFORE, the Plan is hereby amended as follows, effective as of March 30, 2011.

1. Plan subsection 3.01(b) is amended to read as follows:

(b) Form and Time of Payment. Severance pay provided under this Plan section
will be paid in a single lump sum (less any applicable federal, state and local income or
employment taxes) on the 60th day following Participant’s effective date of termination.
Notwithstanding the foregoing, the Company’s obligation to pay a Participant severance pay
under this Plan shall be contingent upon Participant’s execution and delivery (and, if
applicable, timely non-revocation) of a severance agreement and release within fifty-two
(52) days following the date of Participant’s termination of employment.

2. Plan subsection 3.01(c) is amended to read as follows:

(c) Bonus Payment.

(i) If the Participant’s Separation Date is on or before March 15 of a particular year,
such Participant shall be entitled to a bonus for the prior calendar year, but only to the
extent the bonus was accrued for such year based on performance as determined by the
Administrator and in no event to exceed Participant’s target bonus for the prior year. The
Participant will not be eligible for a bonus with respect to the calendar year that includes
his Separation Date.

(ii) If the Participant’s Separation Date is after March 15 of a particular year, such
Participant shall not be eligible for a bonus for that year, but shall be eligible for a
payment equal to one-half of the target bonus for the calendar year prior to the calendar
year in which the Separation Date occurs; provided, however, that if the Participant did not
have a target bonus established for the prior calendar year, the Participant shall be
eligible for a prorated bonus for the current year, not to exceed 50% of the current year’s
bonus target, but only to the extent that such bonus (A) has been accrued and (B) meets the
performance conditions established in the first 90 days of the year, both conditions as
determined by the Administrator.

(iii) The payment of the bonus described in (i) above shall be payable only and to the
extent of the payment of similar bonuses to active Employees for such calendar year.

3. Exhibit I to the Plan is deleted in its entirety and replaced with the Exhibit
I attached hereto.

4. In all other respects, the Plan, as effective as of July 30, 2008 and as amended prior to
the date hereof, is ratified and affirmed.

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IN WITNESS WHEREOF, the Company has caused this amendment to be executed this 30th day of
March, 2011.

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EXHIBIT I

SEVERANCE PAYMENTS

As of March 30, 2011

3EX-10.2

AMENDMENT NO. 3 TO

EMPLOYMENT AGREEMENT

THIS AMENDMENT No. 3 TO EMPLOYMENT AGREEMENT (this “Amendment”) by and between AMERIGROUP
CORPORATION, a Delaware corporation (the “Company”) and James G. Carlson (“Executive”) is made as
of March 30, 2011.

WHEREAS, the Company and Executive are parties to that certain Employment Agreement dated as
of January 16, 2008, as amended pursuant to Amendment No. 1 thereto dated November 6, 2008 and
Amendment No. 2 thereto dated August 4, 2009 (as amended, the “Agreement”);

WHEREAS, the Company and Executive wish to amend the Agreement as set forth herein, and the
parties may amend the Agreement by a signed writing.

NOW, THEREFORE, the Agreement is hereby amended as follows:

	1.	 	The second sentence of Section 4(b)(i)(A) of the Agreement is hereby deleted in its entirety
and replaced with the following sentence:

The “Special Separation Payment” shall be a lump sum amount equal to the sum of (1)
two times (2x) the amount of Executive’s Base Salary rate for the year in which
termination of employment occurs, plus (2) two times (2x) the amount of
Executive’s annual cash bonus target for the calendar year immediately prior to the
calendar year in which termination of employment occurs plus (3) any cash
Long Term Incentive Plans (established under the 2007 Cash Incentive Plan or its
successor) payable in 2012 or 2013 for which the Compensation Committee of the
Company’s Board of Directors has approved funding as of the date of termination,
plus (4) the prorated amount (based on completed months of the applicable
award cycle) of any other outstanding long-term incentive cash award granted under
the 2007 Cash Incentive Plan or its successor, but only to the extent the
performance criteria under the applicable terms of the award have been met as of the
date of termination.

	2.	 	This Amendment shall be governed by, interpreted under and construed in accordance with the
laws of the Commonwealth of Virginia.

	3.	 	Except as modified by this Amendment, the Agreement is hereby confirmed in all respects.

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date and the
year first written above.

2WebFilings | EDGAR view

 

Exhibit 10.1
 
AMENDMENT NO. 1 TO AMENDED AND RESTATED ADVISORY AGREEMENT
This Amendment is made and entered into as of April 1, 2011 (this “Amendment”) and amends the Amended and Restated Advisory Agreement dated as of July 11, 2010 (the “Agreement”) among Wells Timberland REIT, Inc., a Maryland corporation (the “Company”), Wells Timberland Operating Partnership, L.P., a Delaware limited liability partnership (the “Partnership”), and Wells Timberland Management Organization, LLC, a Georgia limited liability company (the “Advisor”).  Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement. 
WHEREAS, each of the Company, the Partnership and, the Advisor desires to amend the Agreement.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, each of the Company, the Partnership and the Advisor agree as follows:
1.    Article 1 of the Agreement is hereby amended by inserting the following definitions:
“Adjusted Advisor Payment” has the meaning set forth in Section 8(F).
“Assets under Management” means the sum of (a) the actual amount invested on behalf of the Company in the Properties (including any incurred or assumed indebtedness related to the Properties and any capital improvements made subsequent to the initial investment) plus (b) with respect to Joint Ventures, the actual amount invested on behalf of the Company in the Joint Ventures plus the Company's allocable share of capital improvements made by the Joint Venture from cash flows generated by the Joint Venture, until such time as Advisor may estimate the value of all interests the Company holds in Properties or Joint Ventures for ERISA reporting purposes; and after such time, Assets under Management means the greater of (1) the sum of (x) the actual amount invested on behalf of the Company in the Properties (including any incurred or assumed indebtedness related to the Properties and any capital improvements made subsequent to the initial investment plus (y) with respect to Joint Ventures, the actual amount invested on behalf of the Company in the Joint Ventures plus the Company's allocable share of capital improvements made by the Joint Venture from cash flows generated by the Joint Venture, or (2) the aggregate value of the Company's interest in the Properties and Joint Ventures as established in connection with the most recent estimated valuation to assist ERISA fiduciaries in fulfilling their annual valuation and reporting responsibilities.  
“Credit Agreement” means the Amended and Restated Credit Agreement, dated as of March 24, 2010, among Timberlands II, LLC, a Delaware limited liability company, the Partnership, and CoBank, ACB, as the same may be amended from time to time.
 “Fiscal Quarter” means any quarter of a Fiscal Year. 
“Fiscal Year” means any period of twelve consecutive calendar months ending on December 31. 
“Free Cash Flow” means, for the measurement period, EBITDA (as defined in the Credit Agreement) less all capital expenditures paid by the Company on a consolidated basis less any cash distributions (except for payments of accrued but unpaid dividends as a result of any redemptions of the Company's Series A preferred stock and Series B preferred stock) paid by the Company on a consolidated basis less cash proceeds with respect to sales of Real Property (as defined in the Credit Agreement) equal to the Cost Basis (as defined in the Credit Agreement) of the Real Property sold.
“Free Cash Flow Calculation” means:  (i) Free Cash Flow for the four Fiscal Quarters then ended less (ii) 1.05 multiplied by Interest Expense for the four Fiscal Quarters then ended.
 

 

 

“Free Cash Flow Coverage Ratio” means the ratio derived on any measurement date by dividing (a) Free Cash Flow by (b) Interest Expense.
“Free Cash Flow Coverage Ratio Requirement” means that the Free Cash Flow Coverage Ratio is at least 1.05.
“Interest Expense” means, for the four most recent Fiscal Quarters then ended, the aggregate interest expense of the Borrowers (as defined in the Credit Agreement) in respect of the Loans (as defined in the Credit Agreement) for such period, determined in accordance with GAAP, including, without duplication, all commissions, discounts and other fees charged with respect to the amortization of debt discounts and the net costs under Rate Protection Agreements (as defined in the Credit Agreement), in each cash paid or payable during such period.
“Periodic Advisor Calculation” has the meaning set forth in Section 8(F).
“Periodic Assets under Management Calculation” has the meaning set forth in Section 8(F).
 “Reconciliation Statement” has the meaning set forth in Section 8(F).
2.    Article 1 of the Agreement is hereby amended by deleting the definition of “Asset Management Fee” and replacing it with the following definition:
ASSET MANAGEMENT FEE. A monthly fee in an amount equal to one-twelfth of 1.0% of Assets under Management.  
 
3.    Section 8(A) of the Agreement is hereby amended by inserting the following sentence in Section 8(A) immediately following the first sentence:
“The Asset Management Fee shall be calculated as of the last day of each preceding month, but shall be payable at the end of each Fiscal Quarter.”
4.    Section 8 of the Agreement is hereby amended by inserting the following provision as Sections 8(F) and 8(G):
(F)    ADJUSTED ADVISOR PAYMENT.  
(i)    Within 45 days after end of each Fiscal Quarter, and 90 days after the end of the Fiscal Year, and in no event later than the date of delivery of financial statements by the Advisor to the Company as of and for the end of such Fiscal Quarter, the Advisor shall provide or cause to be provided to the Company a statement (the “Reconciliation Statement”) setting forth, in reasonable detail and with appropriate calculations and computations, in all respects satisfactory to the Company: (a) as of and for the Fiscal Quarter then ended, the Asset Management Fee payable under Section 8(A) hereof plus all Operating Expenses to be reimbursed to the Advisor pursuant to Section 9(A) hereof (the “Periodic Advisor Calculation”), (b) as of and for the Fiscal Quarter then ended, a calculation setting forth one-quarter of 1.5% of Assets under Management (“Periodic Assets under Management Calculation”), and (c) the Free Cash Flow Calculation.  Such Reconciliation Statement shall also include calculations and computations, in all respects satisfactory to the Company, demonstrating compliance with Free Cash Flow Coverage Ratio Requirement as of and for the following four Fiscal Quarters on a pro forma basis after giving effect to any Adjusted Advisor Payment (as defined and described below).
(ii)    Subject to the reduction set forth in Section 8(G) and elsewhere in this Agreement, and in lieu of the Asset Management Fee payable under Section 8(A) hereof plus all Operating Expenses to be reimbursed to the Advisor pursuant to Section 9(A) hereof, the Advisor shall be entitled to receive for such period an amount equal to the least of (a) the Periodic Advisor Calculation, (b) the Periodic Assets under Management Calculation and (c) the Free Cash Flow Calculation (as applicable, the “Adjusted Advisor Payment”).
 

 

 

(G)    LIMITATIONS.
(i)    In no event will payments be made if the payment of such fees would cause an “Event of Default” under the Credit Agreement.
(ii)    No payment shall be made by the Company to the Advisor under this Agreement if such payment would cause the Company to fail to be in compliance with the Free Cash Flow Coverage Ratio Requirement as of and for the following four Fiscal Quarters on a pro forma basis after giving effect to such payment.  Such payment shall be reduced in an amount which, after giving effect to such payment, would cause the Company to be in compliance with the Free Cash Flow Coverage Ratio Requirement on a pro forma basis.  The remainder of the payment after such reduction shall be paid to the Advisor in accordance with this Agreement.
5.     Section 9(C)(i) is hereby amended by striking Section 9(C)(i) in its entirety and replacing it with the following:
(i)    Operating Expenses incurred by the Advisor on behalf of the Company and the Partnership and payable pursuant to this Section 9 shall be reimbursed at the end of each Fiscal Quarter to the Advisor. All other expenses incurred by the Advisor on behalf of the Company and the Partnership and payable pursuant to this Section 9 shall be reimbursed no less than monthly to the Advisor. The Advisor shall prepare a statement documenting the expenses of the Company and the Partnership during each Fiscal Quarter, and shall deliver such statement to the Company and the Partnership within 45 days after the end of each Fiscal Quarter.
4.    Except to the extent amended hereby, the provisions of the Advisory Agreement shall remain unmodified, and the Advisory Agreement, as amended by this Amendment, shall remain in full force and effect in accordance with its terms.
5.    This Amendment may be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
[Signatures appear on following page]

 

 

 
IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Advisory Agreement as of the date and year first above written.
 
		
	                                                  Wells Timberland REIT, Inc.

	 

	                                                                By:
	 

	                                                           Name:
	Douglas P. Williams

	                                                             Title:
	Executive Vice President

 
		
	                                                   Wells Timberland Operating Partnership, LP

	                                                                By:
	Wells Timberland REIT, Inc., its General Partner

	 
	 

	                                                                By:
	 

	                                                           Name:
	Douglas P. Williams

	                                                             Title:
	Executive Vice President

 
		
	                                                  Wells Timberland Management Organization, LLC

	 
	 

	                                                                By:
	 

	                                                           Name:
	Jess E. Jarratt

	                                                             Title:
	President

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