Document:

severanceagmt2.htm

    Back to Form
10-K/A

     

    Exhibit 10.125

     

    CONFIDENTIAL

      SEPARATION AGREEMENT AND GENERAL
RELEASE

      

      This Separation 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
21(f).  The Company and Employee shall be referred to collectively
herein as the “Parties.”

      

      WHEREAS, the Company wishes to provide
certain termination 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 regarding the termination of their
relationship.

       

      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 Age Discrimination in
Employment Act (“ADEA”), 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.

      
        
           

        

        
          1

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      (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
shall provide the following:

      

      (i)           Payment
in the aggregate gross amount of $1,379,821.15 (ONE MILLION THREE HUNDRED
SEVENTY-NINE THOUSAND EIGHT HUNDRED TWENTY-ONE DOLLARS AND FIFTEEN CENTS) (the
“Separation
Pay”).  The Separation Pay is equal to the sum
of:  Employee’s current base salary for the period from the
Termination Date, as defined below in Section 3, through May 1, 2010
($430,096.15) (“Severance”), and the Special Retention Bonus ($157,500), the
Long-Term Incentive Cash Award ($354,375), the Focal Point Bonus ($201,600), and
the 2009 Additional Retention Bonus ($236,250), each bonus under that certain
letter agreement dated July 2, 2008.  The Separation Pay shall be paid
as follows: (x) on the Effective Date, a lump sum payment in the amount of
$713,475, representing the total of the Special Retention Bonus, the Long-Term
Incentive Cash Award, and the Focal Point Bonus; (y) on July 1, 2009, a lump sum
payment in the amount of $139,326.92, representing the portion of the Severance
covering the period from the Termination Date, as defined in Section 3, through
July 1, 2009, and the remainder of the Severance, $290,769.23, in equal
installments thereafter in accordance with the Company’s regular payroll
schedule through May 1, 2010; and (z) on May 1, 2010, a lump sum payment of
$236,250, representing the 2009 Additional Retention Bonus.  The right
to the series of installment payments pursuant to this Section shall be treated
as a right to a series of separate payments.  Employee acknowledges
and agrees that Employee is not otherwise entitled to the Separation Pay set
forth herein, absent the execution of this Agreement.

      
        
           

        

        
          2

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      (ii)           Should
Employee elect to receive Consolidated Omnibus Budget Reconciliation Act (“COBRA”)
continuation coverage under the Company’s medical plan, the Company shall, for a
maximum period from the Effective Date, as defined below in Section 21(f),
through May 1, 2010 (the “Continuation
Coverage Period”), reimburse Employee the same portion of the premium
costs for the medical portion of such COBRA coverage as the Company was paying
on Employee’s behalf under the Company’s medical plan immediately prior to the
termination of Employee’s employment; provided that
Employee is and remains eligible for such COBRA continuation coverage and provided, further, that the
Company’s obligation to reimburse any such premium costs shall be terminated
after the occurrence of the earlier of the expiration of the Continuation
Coverage Period or Employee’s entitlement to comparable substitute coverage from
another employer at any time during the Continuation Coverage
Period.  It is understood and agreed that any period during which the
Company reimburses Employee’s COBRA premium costs pursuant to the preceding
sentence shall count toward the COBRA period to which Employee shall be entitled
by law.

      

      (b)           Employee
shall not accrue or be eligible for any additional salary, pay, benefits, or
other consideration from the Company other than that outlined
herein.  All payments hereunder, including the Separation Pay, shall
be subject to all applicable withholding taxes and other
deductions.

      

      (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 financial consideration
received by Employee pursuant to this Agreement, including COBRA premium
reimbursement amounts.  Employee agrees to pay federal, state, and/or
local taxes, if any, that are required by law to be paid with respect to the
financial 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.

      
        
           

        

        
          3

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

      (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 further payments otherwise due and owing 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 is
terminated 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) Employee warrants Employee returned to the Company on or before the
Termination Date.

      

      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 limited to, the United States Attorney’s
Office for the Middle District of Florida.  Upon Employee’s receipt of
any order, subpoena, or other compulsory process demanding production or
disclosure of this Agreement, Employee agrees that no later than ten business
days prior to the date that such disclosure is to be made, Employee will notify
the Company in writing of the requested disclosure, including the proposed date
of the disclosure, the reason for the requested disclosure, and the identity of
the individual or entity requesting the disclosure.

      
        
           

        

        
          4

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      (c)           Employee
further understands and agrees that this Agreement shall not be admissible as
evidence in any court proceeding or administrative proceeding, except that the
Company or Employee may submit this Agreement to any appropriate forum in the
event of an alleged breach of this Agreement.

      

      (d)           Notwithstanding
the foregoing, during the Restricted Period, as defined in Exhibit A, Employee
agrees to disclose the existence of Exhibit A and provide a copy of same to any
prospective employer, partner, joint venturer, investor, or lender prior to
entering into any employment, partnership, or other business relationship with
such person or entity.

      

      7.           Future
Cooperation.  For purposes of this Section 7, references to the
“Company” shall include the Company, WellCare Health Plans, Inc., and any
subsidiary or affiliate thereof.

      

      (a)           Government Investigations and
Responses to Subpoenas.  Subject to the Company’s preservation
and assertion of any otherwise applicable evidentiary privileges, no provision
of this Agreement shall in any way restrict Employee’s ability to cooperate or
communicate with any federal, state, or local agency in connection with any
federal, state, or local investigation or informal inquiry or be construed as
prohibiting the provision of non-privileged documents and/or testimony by
Employee in response to a subpoena issued by a court of competent jurisdiction,
or as may otherwise be required by law.  Employee understands that the
Company expects Employee to cooperate fully and respond to questions candidly
and truthfully in any such investigation or informal inquiry.  In the
event of receipt of any subpoena issued at the request of any private sector
person or entity, Employee agrees to notify the Company promptly before
complying with the subpoena, so that the Company may take appropriate action to
protect its interests, including moving to quash the subpoena, as long as
provision of such notice does not violate any applicable law, rule, or court
order.  If the Company seeks to prevent disclosure in accordance with
applicable legal procedures and provides Employee with notice before the
deadline for compliance with a subpoena, Employee shall not make any such
disclosures until either such objections are withdrawn or finally adjudicated by
the tribunal.

      

      (b)           Internal Investigations and Legal
Proceedings.

      

      (i)           Employee
agrees to cooperate fully and completely with the Company, its advisors, and its
legal counsel and respond to questions candidly and truthfully with respect to
any internal inquiry or investigation and any legal proceeding involving the
Company.  Such cooperation shall include being available at reasonable
times and places for interviews, reviewing documents, testifying in a deposition
or a legal or administrative proceeding, and providing advice to the Company in
preparing defenses to any pending or potential future claims against the
Company.  The Company agrees to reimburse Employee for all reasonable
out-of-pocket expenses incurred in connection with rendering such
services.

      
        
           

        

        
          5

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      (ii)           If
Employee is legally required to appear or participate in any proceeding that
involves or is brought against the Company, Employee agrees to disclose to the
Company no later than ten business days prior to the date that such disclosure
is to be made what Employee plans to say or produce and otherwise cooperate
fully with the Company.

      

      (iii)           Employee
shall, at any time and from time to time and at no cost to the Company, take any
and all steps necessary to carry out the purposes and intent of this
Agreement.

       

      (c)           It
is expressly understood and agreed that nothing in this Section or the Agreement
(or any other agreements with the Company) shall require Employee to take any
action (including, without limitation, consenting to an interview in any
investigation or litigation) that Employee reasonably and in good faith believes
would compromise Employee’s rights or privileges under the United States
Constitution or any state constitution.

      

      8.           Nondisparagement; No
Communication Regarding the Company.  Employee agrees not to
make any malicious, derogatory, disparaging, or defamatory statements or
communications, whether written or oral, to any third party about or regarding
the Company or any Releasees or any aspect of Employee’s prior employment with
the Company.  In connection with seeking future employment with a
third party, Employee may discuss Employee’s prior work experience, so long as
Employee complies with the provisions of this Section in the course of such
discussions.

      

      9.           Provisions Necessary and
Reasonable. Employee agrees that (a) the provisions of Sections 4, 5, and
8 of this Agreement are necessary and reasonable to protect the Company’s
confidential information and goodwill; (b) the specific temporal, geographic,
and substantive provisions of Exhibit A of this Agreement are reasonable and
necessary to protect the Company’s legitimate business interests; and (c) in the
event of any breach of any of the covenants set forth herein, the Company would
suffer substantial irreparable harm and would not have an adequate remedy at law
for such breach.  In recognition of the foregoing, the Employee agrees
that in the event of a breach or threatened breach of any of these covenants, in
addition to such other remedies as the Company may have at law, without posting
any bond or security, the Company shall be entitled to seek and obtain equitable
relief, in the form of specific performance, and/or temporary, preliminary, or
permanent injunctive relief, or any other equitable remedy that then may be
available.  The seeking of an injunction or order shall not affect the
Company’s right to seek and obtain damages or other equitable relief on account
of any such actual or threatened breach.

       

      If any of the covenants contained in
Sections 4 (incorporating Exhibit A), 5, or 8 hereof, or any part thereof, are
held to be unenforceable by a court of competent jurisdiction because of the
length of time, area covered, or activity covered thereby, the Parties agree
that the court making such a determination shall have the power to adjust,
reduce, or otherwise reform any such covenant to the extent necessary to cure
any invalidity and to the protect the interests of the Company to the fullest
extent of the law; that the area, time period, and scope of activity restricted
shall be the maximum area, time period, and scope of activity the court deems
valid and enforceable; and that as reformed, such covenant shall then be
enforced.

      
        
           

        

        
          6

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      10.           No Admission of Wrongful
Conduct.  Employee hereby acknowledges and agrees that, by the
Company providing the consideration described above and entering into this
Agreement, neither the Company nor the Releasees are admitting any unlawful or
otherwise wrongful conduct or liability to Employee or Employee’s heirs,
executors, administrators, assigns, agents, or representatives.

      

      11.           Employee
Acknowledgment.  EMPLOYEE UNDERSTANDS AND AGREES THAT EMPLOYEE
MAY BE WAIVING SIGNIFICANT LEGAL RIGHTS BY SIGNING THIS AGREEMENT AND
ACKNOWLEDGES THAT EMPLOYEE IS EXECUTING THIS AGREEMENT VOLUNTARILY AND OF
EMPLOYEE’S OWN FREE WILL, AND THAT EMPLOYEE FULLY UNDERSTANDS THE TERMS OF THIS
AGREEMENT.  Further, Employee acknowledges that Employee has had an
opportunity to review this Agreement fully and to discuss its terms with legal
counsel or any other advisor of Employee’s choice prior to its
execution.

      

      12.           Indemnification.  Employee
hereby agrees to indemnify and hold the Company and Releasees harmless from and
against any and all losses, costs, damages, or expenses, including without
limitation, attorneys’ fees incurred by the Company and Releasees, or any of
them, arising out of any breach of this Agreement by Employee.

      

      13.           Ownership of Claims; No
Filing of Claims.  Employee represents, warrants, and agrees
that Employee has not heretofore assigned or transferred, or purported to assign
or transfer, to any person any claim or portion thereof or interest
therein.  Employee further represents and warrants that Employee does
not presently have on file any claim, charge, grievance, or complaint against
any of the Releasees in or with any administrative, state, federal or
governmental entity, agency, board, or court or before any other tribunal or
panel or arbitrators, public or private, based upon any actions or omissions by
the Releasees occurring prior to Employee’s execution of the
Agreement.

      

      14.           No Attorneys’ Fees or
Costs.  Each of Employee and the Company acknowledges and
agrees that the other shall not be required to pay any attorneys’ fees or any
other costs incurred as a result of any representation of either party in
connection with the preparation, consideration, and execution of the
Agreement.

      

      15.           Arbitration.  Any
dispute regarding any aspect of this Agreement, including its formation, or any
act that would violate any provision in this Agreement (other than disputes with
respect to alleged violations of the covenants contained in Sections 4
(incorporating Exhibit A), 5, or 8 hereof, and the Company’s pursuit of the
remedies described in Section 9 hereof in connection therewith) shall be
resolved in final and binding arbitration by an experienced employment law
arbitrator licensed to practice law in Florida and selected in accordance with
the rules of the American Arbitration Association, as the exclusive remedy for
such dispute.  Judgment on any award rendered by such arbitrator may
be entered in any court having proper jurisdiction.

      
        
           

        

        
          7

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

      16.           No
Representations.  Employee represents and acknowledges that in
executing this Agreement Employee is not relying upon, and has not relied upon,
any representation or statement, other than as set forth herein, made by the
Company or any agents, representatives, or attorneys of the Company with regard
to the subject matter, basis, or effect of this Agreement or
otherwise.

      

      17.           Successors.  This
Agreement shall be binding upon, inure to the benefit of, and be enforceable by
the Parties hereto and their respective successors and assigns.

      

      18.           Governing Law;
Jurisdiction.  This Agreement is made and entered into in the
State of Florida and shall in all respects be interpreted, enforced, and
governed by and under the internal laws of the State of Florida.  Each
of the undersigned hereby consents to the personal jurisdiction of the state and
federal courts in the County of Hillsborough, Florida, for purposes of any
action to enforce, or for a breach of, this Agreement.

      

      19.           Counterparts and Facsimile
Execution.  This Agreement may be executed and delivered (a) in
one or more counterparts, each of which shall be deemed to be an original, but
all of which together shall constitute one and the same instrument and/or (b) by
facsimile, in which case (i) the instrument so executed and delivered shall be
binding and effective for all purposes, and (ii) the Parties shall nevertheless
exchange substitute hard copies of such facsimile instruments as soon thereafter
as practicable (but the failure to do so shall not affect the validity of the
instruments executed and delivered by facsimile).

      

      20.           Entire
Agreement.  This Agreement constitutes the entire agreement
between the Company and Employee and supersedes any prior written or oral
agreements, understandings, or arrangements between the Parties regarding any of
the items addressed herein, with the exception of the Stock Agreement and
General Release dated December 18, 2008, and the Option Extension Agreements
dated December 18, 2008, which shall remain in full force and
effect.  Any modifications to this Agreement must be made in writing
and signed by both Parties.

       

                     
21.            Acceptance of Agreement;
Revocation; Notice of
Rights.  Employee acknowledges, agrees, and understands
that:

       

      (a)           This
Agreement was received by Employee on December 19, 2008.  Employee may
accept this Agreement by returning a signed original to the
Company.  This Agreement shall be withdrawn if not accepted as
provided in the previous sentence on or before the close of business on January
9, 2009, it being understood that Employee need not wait until January 9, 2009,
to execute the Agreement.

       

      (b)           Under
this Agreement, Employee is waiving and releasing, among other claims, any
rights and claims that may exist under the ADEA.

       

      (c)           The
consideration that is being provided to Employee under this Agreement is of
significant value and in addition to what Employee otherwise would be
entitled.

       

      (d)           Employee
is being advised in writing to consult with an attorney before signing this
Agreement.

      
        
           

        

        
          8

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

       

      (e)           Employee
is being given a period of at least 21 days within which to review and consider
this Agreement before signing it.

       

                      
               (f)           Employee
may revoke this Agreement by delivering written confirmation of revocation to
Thomas F. O’Neil III, care of WellCare Health Plans, Inc., 8735 Henderson Road,
Renaissance Two, Tampa, Florida 33634, within seven days after Employee signs
the Agreement, and this Agreement shall not become effective and enforceable
until such seven-day period has expired.  Accordingly, the Effective
Date of this Agreement shall be the eighth day following Employee’s signing of
this Agreement, provided Employee has not revoked this Agreement before
then.  

      

      22.           Miscellaneous.

      

                                
     (a)           Should
any part, term, or provision of this Agreement be declared or determined by a
court of competent jurisdiction to be illegal or invalid, the validity of the
remaining parts, terms, or provisions shall not be affected thereby, and said
illegal or invalid part, term, or provision shall be deemed not to be a part of
this Agreement.

      

                                     
(b)           As used in
this Agreement, the masculine, feminine, or neuter gender and the singular or
plural number shall be deemed to include the others whenever the context so
indicates or requires.

      
        
           

        

        
          9

          
            

          

        

        
           

          
            CONFIDENTIAL

            

            

          

        

      

      IN WITNESS WHEREOF, Employee and a duly
authorized representative of the Company hereby certify that they have read this
Agreement in its entirety and voluntarily executed it in the presence of
competent witnesses as of the date set forth under their respective
signatures.

      

        	
                EMPLOYEE

                 

                 

                 

                 

                 

                /s/ Anil
      Kottoor                                   
         

                Anil
      Kottoor

                 

                 

                12/19/08                                                   
      

                Date

                 

                /s/ Karen
      Mulroe                                    
      

                Witness

                 

                12/19/08                                                    
      

                Date

              	 
      	
                COMPANY

                 

                COMPREHENSIVE
      HEALTH 

                MANAGEMENT,
      INC.

                 

                 

                By:
      /s/ Thomas F. O'Neil
      III                                    
      

                       
      Thomas F. O’Neil III

                Senior
      Vice President, General Counsel

                 

                12/18/08                                                                     
      

                Date

                 

                /s/ Michael
      Haber                                                    
      

                Witness

                 

                12/19/08                                                                     
      

                Date

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

      EXHIBIT A TO SEPARATION
AGREEMENT AND GENERAL RELEASE

      Non-Competition;
Non-Solicitation Agreement

       

      Anil Kottoor (“Employee”),
in exchange for consideration provided by Comprehensive Health Management, Inc.
(“CHMI”), including consideration
provided to Employee pursuant to the terms of the Separation Agreement and
General Release entered into between Employee and CHMI, agrees as
follows:

       

      A.           Employee
shall not, from Employee’s termination of employment with CHMI through May 1,
2010 (the “Restricted
Period”),
directly or indirectly, alone or as a partner, joint venturer, officer,
director, employee, consultant, agent, independent contractor, or stockholder
(other than as provided below), accept employment with, or otherwise provide any
services on behalf of, any entity (or any affiliate, subsidiary, division, or
other business unit of such entity) that provides managed care programs and/or
services to individuals receiving benefits under any Medicare, Medicaid, or
S-CHIP government program, including any stand-alone prescription drug program
or private fee-for-service program (collectively “Government
Programs”),
within any state where CHMI or any subsidiary or affiliate of CHMI (collectively
the “Company”)
does business as of the date on which Employee’s employment with CHMI terminates
or in any state where the Company is actively pursuing business opportunities
that are known to Employee as of the date on which Employee’s employment with
CHMI terminates.  Notwithstanding the foregoing, Employee shall not be
prohibited during the Restricted Period from (i) acting as a passive investor
where Employee owns not more than two percent of the issued and outstanding
capital stock of any publicly-held company, or (ii) accepting employment with
any entity that receives less than 25% of its total revenues from Government
Programs, so long as such employment is within a separate and distinct business
unit of such entity that does not derive revenues from Government Programs, and
Employee is not in any way involved in any aspect of the business relating to
Government Programs.

       

      B.           During
the Restricted Period, Employee shall not, without the prior written consent of
the Company, recruit, hire, or solicit any employee or former employee of the
Company or otherwise encourage any employee of the Company to leave his or her
employment with the Company.

       

      C.           During
the Restricted Period, Employee shall not (i) solicit or accept business from
any customer, provider, member, or independent contractor of the Company or any
prospective customer, provider, member, or independent contractor being pursued
by the Company, to the extent such business involves products or services that
are competitive with those offered by the Company; (ii) request, encourage, or
advise any current or prospective employee, regulator, customer, provider,
member, independent contractor, or agent of the Company to withdraw, cancel,
curtail, or otherwise adversely modify its business dealings with the Company or
not to proceed with, or enter into, any business relationship with the Company;
or (iii) otherwise damage or interfere in any way with (or attempt to damage or
interfere with) the relationships between the Company and current or prospective
employees, regulators, customers, providers, members, independent contractors,
or agents of the Company.

       

      EMPLOYEE

      

      
        	
                /s/
      Anil
      Kottoor                    
      

              	 
      	
                Date:
      12/19/08                       
      

              

      

      Anil
KottoorEX-10.1

AMENDMENT NO. 5

AMENDMENT AGREEMENT NO. 5, dated as of April 29, 2009 (this “Agreement”) to the
Revolving Credit Agreement, dated as of October 24, 2006, as amended as of March 16, 2008, as of
April 24, 2008, as of March 16, 2009 and as of April 14, 2009 (as so amended, the “Credit
Agreement”), among The PMI Group, Inc., a Delaware corporation (the “Borrower”), the
lenders referred to therein (the “Lenders”) and Bank of America, N.A., as Administrative
Agent (in such capacity, together with any successor in such capacity, the “Administrative
Agent”).

INTRODUCTORY STATEMENTS

All capitalized terms not otherwise defined in this Agreement are used herein as defined in
the Credit Agreement.

The Borrower has requested that the Lenders agree to amend certain provisions of the Credit
Agreement as hereinafter set forth.

Subject to the terms and conditions hereof, the Lenders signatory to this Agreement are
willing to agree to such amendments, but only upon the terms and conditions set forth herein.

In consideration of the mutual agreements contained herein and other good and valuable
consideration the receipt of which is hereby acknowledged, the parties hereto hereby agree as
follows:

SECTION 1. Amendments to the Credit Agreement.

(A) Section 7.06(a) of the Credit Agreement is hereby amended in its entirety to
read as follows:

(a) Adjusted Consolidated Net Worth. Permit Adjusted Consolidated Net Worth
to be less than (i) $1,200,000,000 at any time on or prior to May 8, 2009 and (ii)
$1,505,000,000 at any time thereafter.

(B) Section 7.06(b) of the Credit Agreement is hereby amended in its entirety to
read as follows:

(b) Maximum Risk to Statutory Capital Ratio. Permit the Risk to Capital
Ratio of PMI Mortgage Insurance Co. to be greater than (i) 24.0 to 1.0 at any time
on or prior to May 8, 2009 and (ii) 20:1 to 1.0 at any time thereafter.

(C) Section 8.01(o) of the Credit Agreement is hereby amended in its entirety to
read as follows:

(o) Maintenance of Ratings. PMI Insurance shall at any time after May 8,
2009 fail to maintain (i) a financial strength rating of at least Baa from Moody’s
and (ii) a financial strength rating of at least BBB from S&P. For the avoidance of
doubt, it shall not be an Event of Default if PMI Insurance maintains a financial
strength rating of at least Baa from Moody’s or a financial strength rating of at
least BBB from S&P.

SECTION 2. Agreement with Respect to Extensions of Credit. Without limiting or
waiving the terms and provisions of the Credit Agreement, the Borrower hereby agrees that it shall
not at any time seek, and shall not be entitled, to borrow any Loan or to have any Letter of Credit
issued, amended, renewed or extended (other than the renewal of a Letter of Credit outstanding on
the Amendment No. 5 Effective Date so long as the face amount thereof is not increased in
connection therewith, or a Loan made pursuant to Section 2.13(c) of the Credit Agreement to
refinance an Unreimbursed Amount), unless at such time and after giving effect to such borrowing,
issuance, amendment, renewal or extension (i) Adjusted Consolidated Net Worth is at least
$1,505,000,000, (ii) the Risk to Capital Ratio of PMI Mortgage Insurance Co. is not greater than
20.0 to 1.0 and (iii) PMI Insurance maintains a financial strength rating of at least (x) Baa from
Moody’s or (y) BBB from S&P.

SECTION 3. Agreement with Respect to Investments. Without limiting or waiving the
terms and provisions of the Credit Agreement, the Borrower hereby agrees that it shall not at any
time make directly or indirectly any Investment in any Subsidiary or Affiliate of the Borrower,
unless at such time and after giving effect to such Investment (i) Adjusted Consolidated Net Worth
is at least $1,505,000,000, (ii) the Risk to Capital Ratio of PMI Mortgage Insurance Co. is not
greater than 20.0 to 1.0 and (iii) PMI Insurance maintains a financial strength rating of at least
(x) Baa from Moody’s or (y) BBB from S&P.

SECTION 4. Representations and Warranties. The Borrower represents and warrants, as
of the date hereof and as of the Amendment No. 5 Effective Date, to the Administrative Agent, the
L/C Issuer and the Lenders that:

(A) the execution, delivery and performance by the Borrower of this Agreement, the
Credit Agreement as modified by this Agreement and any other documents or instruments delivered
pursuant to Section 5 hereof (i) have been duly authorized by all requisite corporate
action on the part of the Borrower; and (ii) will not violate (x) any provision of any statute,
rule or regulation, or any Organizational Document of the Borrower, (y) any applicable order of any
court or any rule, regulation or order of any other agency of government, or (z) any indenture,
agreement or other instrument to which Borrower is a party or by which the Borrower or any of its
property is bound, or be in conflict with, result in a breach of, constitute (with notice or lapse
of time or both) a default under, or create any right to terminate, any such indenture, agreement,
or other instrument;

(B) upon the occurrence of the Amendment No. 5 Effective Date, this Agreement and
each other agreement delivered pursuant to Section 5 hereof will constitute the legal,
valid and binding obligation of the Borrower, enforceable in accordance with its terms, except as
the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization or
other similar laws affecting creditors’ rights generally and by general equitable principles
(regardless of whether the issue of enforceability is considered in a proceeding in equity or at
law);

(C) no Default or Event of Default has occurred and is continuing under the Credit
Agreement prior to giving effect to this Agreement; and

(D) the Borrower has obtained all consents and waivers from any Persons necessary
for the execution, delivery and performance of this Agreement and any other document or transaction
contemplated hereby.

SECTION 5. Effective Date. This Agreement shall not become effective until the date
on which all of the following conditions precedent shall have been satisfied, or waived in writing
(such date being referred to herein as the “Amendment No. 5 Effective Date”):

(A) The Administrative Agent shall have received fully executed counterparts of
this Agreement executed by (i) the Borrower, (ii) the Administrative Agent and (iii) the Required
Lenders.

(B) All representations and warranties contained in Section 4 of this
Agreement shall be true.

SECTION 6. CONFIRMATION AND ACKNOWLEDGEMENT OF THE OBLIGATIONS; RELEASE. THE BORROWER
HEREBY (A) CONFIRMS AND ACKNOWLEDGES TO THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS
THAT IT IS VALIDLY AND JUSTLY INDEBTED TO THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS
FOR THE PAYMENT OF ALL OBLIGATIONS (AS DEFINED IN THE CREDIT AGREEMENT) WITHOUT OFFSET, DEFENSE,
CAUSE OF ACTION OR COUNTERCLAIM OF ANY KIND OR NATURE WHATSOEVER AND (B) REAFFIRMS AND ADMITS THE
VALIDITY AND ENFORCEABILITY OF THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS. THE BORROWER, ON
ITS OWN BEHALF AND ON BEHALF OF ITS SUCCESSORS AND ASSIGNS, HEREBY WAIVES, RELEASES AND DISCHARGES
THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS AND ALL OF THE AFFILIATES OF THE
ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS, AND ALL OF THE DIRECTORS, OFFICERS,
EMPLOYEES, ATTORNEYS, AGENTS, SUCCESSORS AND ASSIGNS OF THE ADMINISTRATIVE AGENT, THE L/C ISSUER
AND THE LENDERS AND SUCH AFFILIATES, FROM ANY AND ALL CLAIMS, DEMANDS, ACTIONS OR CAUSES OF ACTION
(KNOWN AND UNKNOWN) ARISING OUT OF OR IN ANY WAY RELATING TO ANY OF THE LOAN DOCUMENTS AND ANY
DOCUMENTS, AGREEMENTS, DEALINGS OR OTHER MATTERS CONNECTED WITH ANY OF THE LOAN DOCUMENTS, IN EACH
CASE TO THE EXTENT ARISING (X) ON OR PRIOR TO THE AMENDMENT NO. 5 EFFECTIVE DATE OR (Y) OUT OF, OR
RELATING TO, ACTIONS, DEALINGS OR MATTERS OCCURRING ON OR PRIOR TO THE AMENDMENT NO. 5 EFFECTIVE
DATE.

SECTION 7. Costs and Expenses. The Borrower acknowledges and agrees that its payment
obligations set forth in Section 10.04 of the Credit Agreement include the costs and expenses
incurred by the Administrative Agent and each Lender in connection with the preparation, execution
and delivery of this Agreement, the Security Documents and any other documentation contemplated
hereby or thereby (whether or not this Agreement or any Security Document becomes effective or the
transactions contemplated hereby or thereby are consummated and whether or not a Default or Event
of Default has occurred or is continuing), including, but not limited to, (i) the reasonable fees
and disbursements of Kaye Scholer LLP, counsel to the Administrative Agent and (ii) the reasonable
fees and disbursements of any other counsel to the Administrative Agent or any Lender.

SECTION 8. Limited Modification; Ratification of Credit Agreement.

(A) Except to the extent hereby expressly modified, the Credit Agreement remains
in full force and effect and is hereby ratified and confirmed.

(B) This Agreement shall be limited precisely as written and shall not be deemed
(i) to be a consent granted pursuant to, or a waiver or modification of, any other term or
condition of the Credit Agreement or any of the instruments or agreements referred to therein or a
waiver of any Default or Event of Default under the Credit Agreement, whether or not known to the
Administrative Agent, the L/C Issuer or the Lenders or (ii) to prejudice any right or rights which
the Administrative Agent, the L/C Issuer or the Lenders may now have or have in the future under or
in connection with any Loan Document or any of the instruments or agreements referred to in a Loan
Document. The Administrative Agent, L/C Issuer and the Lenders hereby expressly reserve all of the
Administrative Agent’s, the L/C Issuer’s or the Lenders’ (as applicable) respective rights and
remedies under the Credit Agreement and each of the other Loan Documents, as well as under
applicable law. No failure to exercise, delay in exercising or any singular or partial exercise,
by the Administrative Agent, the L/C Issuer or any of the Lenders of any right, power or remedy
hereunder or any of the other Loan Documents shall operate as a waiver thereof or in the case of a
singular or partial exercise of a right, power or remedy, preclude any other or further exercise
thereof of any other right, power or remedy, nor shall any of the Loan Documents be construed as a
standstill or a forbearance by any of the Administrative Agent, the L/C Issuer or the Lenders of
their rights and remedies thereunder. All remedies of the Administrative Agent, the L/C Issuer or
the Lenders are cumulative and are not exclusive of any other remedies under any other Loan
Document or provided by applicable law. Except to the extent hereby modified, the Credit Agreement
shall continue in full force and effect in accordance with the provisions thereof on the date
hereof and the Credit Agreement as heretofore amended or modified and as modified by this Agreement
are hereby ratified and confirmed. As used in the Credit Agreement, the terms “Credit Agreement,”
“this Agreement,” “herein,” “hereafter,” “hereto,” “hereof,” and words of similar import, shall,
unless the context otherwise requires, mean the Credit Agreement as modified by this Agreement.
Reference to the terms “Agreement” or “Credit Agreement” appearing in the Exhibits or Schedules to
the Credit Agreement or in the other Loan Documents shall, unless the context otherwise requires,
mean the Credit Agreement as modified by this Agreement. This Agreement shall be deemed to have
been jointly drafted, and no provision of it shall be interpreted or construed for, or against, any
party hereto because such party purportedly prepared or requested such provision, any other
provision, or this Agreement as a whole.

SECTION 9. Counterparts. This Agreement may be executed in any number of counterparts
and by the 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 taken together shall constitute but
one and the same instrument. Delivery of an executed signature page to this Agreement by facsimile
shall be as effective as delivery of a manually executed counterpart of this Agreement. The
Administrative Agent shall promptly notify the Borrower of the occurrence of the Amendment No. 5
Effective Date.

SECTION 10. Loan Document. This Agreement is a Loan Document pursuant to the Credit
Agreement and shall (unless expressly indicated herein or therein) be construed, administered, and
applied, in accordance with all of the terms and provisions of the Credit Agreement.

SECTION 11. Severability. Any provision of this Agreement which is invalid, illegal
or unenforceable under the applicable law of any jurisdiction, shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability without invalidating
the remaining provisions hereof, and any such invalidity, illegality or unenforceability in any
jurisdiction shall not invalidate such provision in any other jurisdiction.

SECTION 12. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WHICH ARE APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED WHOLLY WITHIN THE STATE OF NEW YORK.

SECTION 13. Successors and Assigns. The provisions of this Agreement shall be binding
upon, and inure to the benefit of, the parties hereto and their respective successors and assigns.

SECTION 14. Headings. The headings of this Agreement are for the purposes of
reference only and shall not affect the construction of, or be taken into consideration in
interpreting, this Agreement.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the day and the year first above written.

BORROWER:

THE PMI GROUP, INC.

By: /s/ Donald P. Lofe, Jr.

Name: Donald P. Lofe, Jr.

Title: EVP, CFO and CAO

ADMINISTRATIVE AGENT AND LENDERS:

BANK OF AMERICA, N.A., as Administrative Agent,
Lender and L/C Issuer

	 	 	 	By:
/s/ Tyler D. Levings

	 	 	Name: Tyler D. Levings

Title: Senior Vice President

SUN TRUST BANK, N.A.

	 	 	 	By:
/s/ Katherine Bass

	 	 	Name: Katherine Bass

Title: First Vice President

	 	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION

	 	 	 	By:
/s/ Michael Thomas

	 	 	Name: Michael Thomas

Title: Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]