Document:

exv10w7w7

 

Exhibit 10.7.7

	 	 	 
	

	 	Illinois Department of Public Aid
	

	 	201 South Grand Avenue East
	

	 	Springfield, Illinois 62763-0001
	 
	 	 
	Rod R. Blagojevich, Governor

	 	Telephone: (217) 524-7478
	Barry S. Maram, Director

	 	TTY: (800) 526-5812

March 31, 2004

Jean Moise

President & CEO

Amerigroup Illinois, Inc.

211 W. Wacker Drive, Suite
#1350
Chicago, IL 60606

Dear Mr. Moise,

Enclosed please find four originals of an amendment to the Contract for
Furnishing Health Services between Amerigroup Illinois, Inc. and the
Department. This amendment changes the expansion language in the Contract to
allow the Department’s expansion approval letter including an amended
Attachment Ito be incorporated in and become part of the Contract.

Please have all four originals completed and signed, and return them to my
attention no later than close of business Monday, May 12, 2004.

If you have any questions, please feel free to contact me at
(217) 524-7478. 

Sincerely,

Kelly Carter, Chief

Bureau of Contract Management

Attachments

	 	 	 
	E-mail: dpawebmaster@state.il.us

	 	Internet: http://www.state.il.us/dpa/

 

 

STATE OF ILLINOIS

DEPARTMENT OF PUBLIC AID

AMENDMENT NO. 1 TO THE

CONTRACT FOR FURNISHING HEALTH SERVICES

BY A

MANAGED CARE ORGANIZATION

2004-24-001-KA1

WHEREAS, the parties to the Contract for Furnishing Health Services by a
Managed Care Organization (“CONTRACT”), the Illinois Department of Public
Aid, 201 South Grand Avenue East, Springfield, Illinois 62763-0001
(herein referred to as “Department”), acting by and through its Director,
and Amerigroup Illinois, Inc., 211 West Wacker Drive, Chicago, Illinois
60606 (hereinafter referred to as “Contractor”), desire to amend the
CONTRACT; and

WHEREAS, pursuant to Article 9, Section 9.9 (a) of the CONTRACT, the
CONTRACT may be modified or amended by the mutual consent of the parties;

NOW THEREFORE, the CONTRACT shall be amended as follows:

	1.	 	Article 3, is amended by replacing the last sentence
of paragraph 3A with the following sentence:
	 
	 	 	Should the Department agree in writing to the
expansion request, the Department’s approval letter
including an amended Attachment I, shall be
incorporated in and become part of the Contract.

	 	 	All other terms and conditions of the CONTRACT shall remain in full force and
effect.

          IN WITNESS WHEREOF, the parties have hereunto caused this agreement
to amend the CONTRACT to be executed by their duly authorized
representatives, effective March 15, 2004.

	 	 	 	 	 	 	 	 	 
	DEPARTMENT OF PUBLIC AID	 	CONTRACTOR	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	/S/ Jean R. Moise
	 	 	
 	 	 	
 
	

	 	      Barry S. Maram	 	 	 	 	 	 
	 	 	 	 	Printed Name:	Jean R. Moise
	 
	 	 	 	 	 	 	 	 
	Title:	 	Director	 	Title:	Pres. & C.O.O.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:
	4/14/04	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	 	 	FEIN:	 	 	 	 
	 	 	 	 	 	
 

 

 

STATE OF ILLINOIS

DEPARTMENT OF PUBLIC AID

AMENDMENT NO. 1 TO THE

CONTRACT FOR FURNISHING HEALTH SERVICES

BY A

MANAGED CARE ORGANIZATION

2004-24-001-KA1

WHEREAS, the parties to the Contract for Furnishing Health Services by a
Managed Care Organization (“CONTRACT”), the Illinois Department of Public
Aid, 201 South Grand Avenue East, Springfield, Illinois 62763-0001 (herein
referred to as “Department”), acting by and through its Director, and
Amerigroup Illinois, Inc., 211 West Wacker Drive, Chicago, Illinois 60606
(hereinafter referred to as “Contractor”), desire to amend the CONTRACT; and

WHEREAS, pursuant to Article 9, Section 9.9 (a) of the CONTRACT, the CONTRACT
may be modified or amended by the mutual consent of the parties;

NOW THEREFORE, the CONTRACT shall be amended as follows:

	1.	 	Article 3, is amended by replacing the last sentence of
paragraph 3.4 with the following sentence:
	 
	 	 	Should the Department agree in writing to the expansion
request, the Department’s approval letter including an
amended Attachment I, shall be incorporated in and
become part of the Contract.

	 	 	All other terms and conditions of the CONTRACT shall remain in full force
and effect.

          IN WITNESS WHEREOF, the parties have hereunto caused this agreement to
amend the CONTRACT to be executed by their duly authorized representatives,
effective March 15, 2004.

	 	 	 	 	 	 	 	 	 
	DEPARTMENT OF PUBLIC AID	 	CONTRACTOR	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	/S/ Jean R. Moise
	 	 	
 	 	 	
 
	

	 	      Barry S. Maram	 	 	 	 	 	 
	 	 	 	 	Printed Name:	Jean R. Moise
	 
	 	 	 	 	 	 	 	 
	Title:	 	Director	 	Title:	Pres. & C.O.O.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:
	4/14/04	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	 	 	FEIN:	 	 	 	 
	 	 	 	 	 	
 

 

 

STATE OF ILLINOIS

DEPARTMENT OF PUBLIC AID

AMENDMENT NO. 1 TO THE

CONTRACT FOR FURNISHING HEALTH SERVICES

BY A

MANAGED CARE ORGANIZATION

2004-24-001-KA1

	 	 	WHEREAS, the parties to the Contract for Furnishing Health Services by a
Managed Care Organization (“CONTRACT”), the Illinois Department of Public
Aid, 201 South Grand Avenue East, Springfield, Illinois 62763-0001 (herein
referred to as “Department”), acting by and through its Director, and
Amerigroup Illinois, Inc., 211 West Wacker Drive, Chicago, Illinois 60606
(hereinafter referred to as “Contractor”), desire to amend the CONTRACT;
and
	 
	 	 	WHEREAS, pursuant to Article 9, Section 9.9 (a) of the CONTRACT, the
CONTRACT may be modified or amended by the mutual consent of the parties;
	 
	 	 	NOW THEREFORE, the CONTRACT shall be amended as follows:

	1.	 	Article 3, is amended by replacing the last sentence of
paragraph 3.4 with the following sentence:
	 
	 	 	Should the Department agree in writing to the
expansion request, the Department’s approval letter
including an amended Attachment I, shall be
incorporated in and become part of the Contract.

	 	 	All other terms and conditions of the CONTRACT shall remain in full force
and effect.

          IN WITNESS WHEREOF, the parties have hereunto caused this agreement
to amend the CONTRACT to be executed by their duly authorized
representatives, effective March 15, 2004.

	 	 	 	 	 	 	 	 	 
	DEPARTMENT OF PUBLIC AID	 	CONTRACTOR	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	/S/ Jean R. Moise
	 	 	
 	 	 	
 
	

	 	      Barry S. Maram	 	 	 	 	 	 
	 	 	 	 	Printed Name:	Jean R. Moise
	 
	 	 	 	 	 	 	 	 
	Title:	 	Director	 	Title:	Pres. & C.O.O.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:
	4/14/04	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	 	 	FEIN:	 	 	 	 
	 	 	 	 	 	
 

 

 

STATE OF ILLINOIS

DEPARTMENT OF PUBLIC AID

AMENDMENT NO. 1 TO THE

CONTRACT FOR FURNISHING HEALTH SERVICES

BY A

MANAGED CARE ORGANIZATION

2004-24-001-KA1

WHEREAS, the parties to the Contract for Furnishing Health Services by a
Managed Care Organization (“CONTRACT”), the Illinois Department of Public
Aid, 201 South Grand Avenue East, Springfield, Illinois 62763-0001 (herein
referred to as “Department”), acting by and through its Director, and
Amerigroup Illinois, Inc., 211 West Wacker Drive, Chicago, Illinois 60606
(hereinafter referred to as “Contractor”), desire to amend the CONTRACT;
and

WHEREAS, pursuant to Article 9, Section 9.9 (a) of the CONTRACT, the CONTRACT
may be modified or amended by the mutual consent of the parties;

NOW THEREFORE, the CONTRACT shall be amended as follows:

	1.	 	Article 3, is amended by replacing the last sentence of
paragraph 3.4 with the
following sentence:
	 
	 	 	Should the Department agree in writing to the
expansion request, the Department’s approval letter
including an amended Attachment I, shall be
incorporated in and become part of the Contract.

	 	 	All other terms and conditions of the CONTRACT shall remain in full force
and effect.

          IN WITNESS WHEREOF, the parties have hereunto caused this agreement to
amend the CONTRACT to be executed by their duly authorized representatives,
effective March 15, 2004.

	 	 	 	 	 	 	 	 	 
	DEPARTMENT OF PUBLIC AID	 	CONTRACTOR	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	 	 	By:	/S/ Jean R. Moise
	 	 	
 	 	 	
 
	

	 	      Barry S. Maram	 	 	 	 	 	 
	 	 	 	 	Printed Name:	Jean R. Moise
	 
	 	 	 	 	 	 	 	 
	Title:	 	Director	 	Title:	Pres. & C.O.O.
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:
	4/14/04	 	 
	

	 	
 	 	 	 	 	 	 
	

	 	 	 	FEIN:exv10w17w7

 

Exhibit 10.17.7

AMENDMENT NO. 1

     THIS AMENDMENT NO. 1 dated as of June 7, 2004 (this “Amendment”) of
that certain Credit Agreement referenced below is by and among AMERIGROUP
CORPORATION, a Delaware corporation (the “Borrower”), the Guarantors and
the Lenders identified on the signature pages hereto and BANK OF AMERICA, N.A.,
as Administrative Agent. Capitalized terms used but not otherwise defined
herein shall have the meanings provided in the Credit Agreement.

WITNESSETH

     WHEREAS, a $95 million revolving credit facility has been established in
favor of the Borrower pursuant to the terms of that Amended and Restated
Credit Agreement dated as of October 22, 2003 (as amended and modified, the
“Credit Agreement”) among the Borrower, the Guarantors, the Lenders
identified therein, and Bank of America, N.A., as Administrative Agent;

     WHEREAS, the Borrower has requested certain modifications to the
terms of the Credit Agreement; and

     WHEREAS, the Lenders identified on the signature pages hereto have
agreed to the requested modifications on the terms and conditions set forth
herein;

     NOW, THEREFORE, in consideration of these premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

     SECTION 1 Amendments to the Credit Agreement. The Credit
Agreement is hereby amended in the following respects:

     1.1 Borrower Cash Flow. Clause (f) in definition of “Borrower
Cash Flow” is amended to read as follows:

	 	 	“minus (f) cash Investments made in members of the Consolidated
Group and Affiliates during such period (but excluding, in any
event, for purposes hereof, initial investments made in Domestic
Subsidiaries to finance the costs of acquisition and/or formation,
minimum net worth requirements, initial capital expenditures, transaction
costs and transition costs, in each case made within 90 days prior to or
after acquisition or formation), in each case determined on an
unconsolidated basis on the accrual basis of accounting in accordance
with GAAP. Except as otherwise expressly provided, the applicable period
shall be for the four consecutive fiscal quarters ending as of the date
of determination.”

     1.2 Fixed Charge Coverage Ratio. Section 8.15(b) is amended and
restated in its entirety to read as follows:

     (b) Fixed Charge Coverage Ratio. As of the end of each
fiscal quarter, permit the Fixed Charge Coverage Ratio for such
period to be less than 1.75 to 1.00.

     SECTION 2 Conditions Precedent. This Amendment shall be effective
immediately upon receipt by the Agent of all of the following, each in form
and substance satisfactory to the Administrative Agent:

     (a) counterparts of this Amendment duly executed by the Credit
Parties and the Required Lenders; and

 

 

          (b) an amendment fee, for the ratable benefit of each Lender
(including Bank of America) that consents to this Amendment on or before
June 4, 2004 (the “Consenting Lenders”) equal to five basis points
(0.05%) on the aggregate Revolving Commitments of the Consenting Lenders,
and any and all other fees due in connection herewith, which fees shall
be deemed fully earned and due and payable on the effective date of this
Amendment.

     SECTION 3 Miscellaneous.

     3.1 The Credit Parties hereby affirm that, after giving effect to this
Amendment, the representations and warranties set forth in the Credit
Agreement and the other Credit Documents are true and correct in all material
respects as of the date hereof (except those which expressly relate to an
earlier period).

     3.2 Except as modified hereby, all of the terms and provisions of the
Credit Agreement and the other Credit Documents (including schedules and
exhibits thereto) shall remain in full force and effect.

     3.3 The Borrower agrees to pay all reasonable costs and expenses
of the Administrative Agent in connection with the preparation, execution
and delivery of this Amendment, including the reasonable fees and expenses
of Moore & Van Allen, PLLC.

     3.4 This Amendment may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed an original, and it shall
not be necessary in making proof of this Amendment to produce or account for
more than one such counterpart. Delivery by any party hereto of an executed
counterpart of this Amendment by facsimile shall be effective as such party’s
original executed counterpart and shall constitute a representation that such
party’s original executed counterpart will be delivered.

     3.5 This Amendment shall be deemed to be a contract made under, and for
all purposes shall be construed in accordance with, the laws of the State of
New York.

[remainder of page intentionally left blank]

2

 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Amendment to be duly executed and delivered as of the date first
above written.

	 	 	 	 	 	 	 
	BORROWER:	 	AMERIGROUP CORPORATION,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Sherri Lee	 	 
	 	 	 	 	
 
	

	 	Name:
	 	Sherri Lee	 	 
	

	 	Title:
	 	Senior Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	GUARANTORS:	 	PHP HOLDINGS, INC.

a Florida corporation	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Sherri Lee	 	 
	 	 	 	 	
 
	

	 	Name:
	 	Sherri Lee	 	 
	

	 	Title:
	 	Senior Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	AGENT:	 	BANK OF AMERICA, N.A., in its capacity as
Administrative Agent and Collateral Agent	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Annie Cuenco	 	 
	 	 	 	 	
 
	

	 	Name:
	 	Annie Cuenco	 	 
	

	 	Title:
	 	Assistant Vice President	 	 
	 
	 	 	 	 	 	 
	LENDERS:	 	BANK OF AMERICA, N.A., in its capacity as Lender,
L/C  Issuer, Lender and Swing Line Lender	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Joseph L. Corah	 	 
	 	 	 	 	
 
	

	 	Name:	 	 	 	 
	

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	CIBC INC.	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ George Knight	 	 
	 	 	 	 	
 
	

	 	Name:
	 	George Knight	 	 
	

	 	Title:
	 	Managing Director, CIBC World Markets Corp., as Agent
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON, acting through its

Cayman Islands Branch	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Paul L. Colon
	 	Vanessa Gomez
	 	 	 	 	
 
	

	 	Name:
	 	Paul L. Colon
	 	Vanessa Gomez
	

	 	Title:
	 	Director
	 	Associates
	 
	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	

	 	By:
	 	/s/ Todd J. Eagle	 	 
	 	 	 	 	
 
	

	 	Name:
	 	Todd J. Eagle	 	 
	

	 	Title:
	 	Vice President	 	 

AMERIGROUP CORPORATION

AMENDMENT NO. 1

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