Document:

creditagreementamendment.htm

Back to Form 8-K

Exhibit 10.1

EXECUTION COPY

 

 

AMENDMENT NO. 2

 

Dated as of March 3, 2011

 

to

 

CREDIT AGREEMENT

 

Dated as of May 12, 2010

 

THIS AMENDMENT NO. 2 (“Amendment”) is made as of March 3, 2011 by and among The WellCare Management Group, Inc. (“WMG”), WellCare Health Plans, Inc. (“Parent” and together with WMG, the “Borrowers”), the financial institutions listed on the signature pages hereof (collectively, the “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Lenders (the “Administrative Agent”), under that certain Credit Agreement dated as of May 12, 2010 by and among the Borrower, the Lenders and the Administrative Agent (as may be further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”).  Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent have agreed to make certain amendments to the Credit Agreement;

 

WHEREAS, the parties hereto have agreed to such amendments on the terms and conditions set forth herein;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto have agreed to enter into this Amendment.

 

1.             Amendments to Credit Agreement.  Effective as of March 3, 2011, the Credit Agreement is hereby amended as follows:

 

(a)           Section 1.01 of the Credit Agreement is amended to add the following definition in the appropriate alphabetical order:

 

“Permitted Litigation Bonds” means the tradable unsecured bonds in an aggregate principal amount not to exceed $112,500,000 issued in connection with the Stipulation and Agreement of Settlement dated December 17, 2010 among Parent and a group of five public pension funds appointed by the United States District Court for the Middle District of Florida to act as lead plaintiffs in the consolidated securities class action Eastwood Enterprises, L.L.C. v. Farha, et al., (Case No. 8:07-cv-1940-VMC-EAJ), so long as such bonds (i) mature no earlier than December 31, 2016, (ii) do not require any scheduled amortization payments prior to such date and (iii) bear interest at a rate not in excess of 6% per annum.

 

CH1 5725649v.4

  

  

  

 

(b)           Section 6.01 of the Credit Agreement is amended to (i) delete the word “and” appearing at the end of clause (s) thereof, (ii) delete the period appearing at the end of clause (t) thereof and to replace such period with “; and” and (iii) add the following as a new clause (u) thereof:

 

(u)           the Permitted Litigation Bonds.

 

2.             Conditions of Effectiveness.  The effectiveness of this Amendment is subject to the conditions precedent that the Administrative Agent shall have received counterparts of this Amendment duly executed by the Borrowers, the Lenders and the Administrative Agent and the Consent and Reaffirmation attached hereto duly executed by the Subsidiary Guarantors.

 

3.             Representations and Warranties of the Borrower.  Each Borrower hereby represents and warrants that this Amendment and the Credit Agreement, as amended hereby, constitute legal, valid and binding obligations of such Borrower enforceable against such Borrower in accordance with their terms except as such enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting creditors rights generally and except as enforceability may be limited by general principle of equity and an implied covenant of good faith.

 

4.             Reference to and Effect on the Credit Agreement.

 

(a)           Upon the effectiveness hereof, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

(b)           Except as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

 

(c)           The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

 

5.             Governing Law.  This Amendment shall be construed in accordance with and governed by the law of the State of New York.

 

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

 

7.             Counterparts.  This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Signatures delivered by facsimile or PDF shall have the same force and effect as manual signatures delivered in person.

 

[Signature Pages Follow]

  

  

  

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

 

 

 

	 	 	 
WELLCARE HEALTH PLANS, INC., as a Borrower

	 
	 	 	
 

 

	 
	 	 	By  	/s/ Thomas L. Tran	 
	 	 	 	Name: Thomas L. Tran	 
	 	 	 	Title: Senior Vice President and Chief Financial Officer	 

 

 

 

	 	 	
THE WELLCARE MANAGEMENT GROUP, INC., as a Borrower

	 
	 	 	
 

 

	 
	 	 	By  	/s/ Thomas L. Tran	 
	 	 	 	Name: Thomas L. Tran	 
	 	 	 	Title: Treasurer and Chief Financial Officer	 

 

 

 

 

 

 

Signature Page to Amendment No. 2

WellCare Health Plans, Inc. and The WellCare Management Group, Inc.

Credit Agreement dated as of May 12, 2010

  

  

  

 

 

 

	 	 	
 
JPMORGAN CHASE BANK, N.A., individually as a Lender and as Administrative Agent

	 
	 	 	
 

 

	 
	 	 	By  	/s/ Robert L. Mendoza	 
	 	 	 	Name: Robert L. Mendoza	 
	 	 	 	Title: Vice President	 

 

 

Signature Page to Amendment No. 2

WellCare Health Plans, Inc. and The WellCare Management Group, Inc.

Credit Agreement dated as of May 12, 2010

  

  

  

CONSENT AND REAFFIRMATION

 

The undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 2 to the Credit Agreement dated as of May 12, 2010 (the “Credit Agreement”) by and among The WellCare Management Group, Inc. (“WMG”), WellCare Health Plans, Inc. (“Parent” and together with WMG, the “Borrowers”), the financial institutions listed on the signature pages hereof (collectively, the “Lenders”) and JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the Lenders (the “Administrative Agent”), which Amendment No. 2 is dated as of March 3, 2011 (the “Amendment”).  Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.   Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Credit Agreement (including, but not limited to, the Subsidiary Guaranty) and any other Loan Document executed by it and acknowledges and agrees that such agreements and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed.  All references to the Credit Agreement contained in the above-referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment.

 

Dated:  March 3, 2011

 

[Signature Page Follows]

 

  

  

  

	
WCG HEALTH MANAGEMENT, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	
HARMONY BEHAVIORAL HEALTH, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	  	  
	
HARMONY BEHAVIORAL HEALTH IPA, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	
COMPREHENSIVE HEALTH MANAGEMENT, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran 

Title:  Treasurer and Chief Financial Officer

	  	  
	
HARMONY HEALTH SYSTEMS, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	
WELLCARE SPECIALTY PHARMACY, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	  	  
	
WELLCARE PHARMACY BENEFITS MANAGEMENT, INC.

 

By: /s/ Thomas L. Tran                                        

Name:  Thomas L. Tran

Title:  Treasurer and Chief Financial Officer

	  

 

 

 

 

Signature Page to Consent and Reaffirmation to Amendment No. 2

WellCare Health Plans, Inc. and The WellCare Management Group, Inc.

Credit Agreement dated as of May 12, 2010EX-10.1

PROMISSORY NOTE

$300,000.00 March   , 2011

FOR VALUE RECEIVED, Circle Entertainment Inc., a Delaware corporation (the “Payor”), hereby
unconditionally promises to pay to the order of        (the “Payee”), in
lawful money of the United States of America in immediately available funds, the principal sum of
Three Hundred Thousand Dollars ($300,000.00), together with interest thereon, compounded annually,
from the date hereof through maturity at the rate of 6.00% per annum (calculated on the actual
number of days elapsed and an assumed year of 360 days) (the “Stated Rate”). This
principal amount, together with interest accrued thereon at the Stated Rate commencing on the date
hereof, shall be due and payable in full upon demand.

This Promissory Note (“Note”) evidences Payee’s loan to Payor in the principal amount
of this Note.

Payor shall use the principal amount of this Note for working capital requirements. So long
as any amounts under this Note remain unpaid, Payor shall not incur any indebtedness for borrowed
money without the prior written consent of Payee (which consent shall not be unreasonably withheld,
delayed or conditioned). For the avoidance of doubt and ambiguity, the foregoing restriction on the
incurrence of indebtedness for borrowed money shall not apply to indebtedness incurred by Payor in
the ordinary course of business for goods and services from trade creditors.

The principal and accrued interest balance of this Note may be prepaid in whole or in part at
any time without a premium or penalty of any kind.

If any Acceleration Event (as defined below) shall occur for any reason then and in any such
event, in addition to all rights and remedies of the Payee under this Note, applicable law or
otherwise, all such rights and remedies being cumulative, not exclusive and enforceable
alternatively, successively and concurrently, the Payee may, at its option, declare due any or all
of the Payor’s obligations, liabilities and indebtedness owing to the Payee under this Note
whereupon the then unpaid balance hereof shall immediately be due and payable, together with all
expenses of collection hereof, including, but not limited to, attorneys’ fees and legal expenses
(for this purpose, the Payor shall pay all trial and appellate attorneys’ fees, costs and expenses,
paid or incurred by the Payee in connection with collection of this Note). If the foregoing unpaid
balances, expenses and collection costs are not paid upon demand upon the occurrence of an
Acceleration Event (collectively, the “Unpaid Amounts”), such Unpaid Amounts shall bear
interest until paid in full at the Stated Rate plus 5.00% per annum or the maximum interest rate
then permitted under applicable law (whichever is less) (the “Default Rate”). From and
after maturity of this Note, the Unpaid Amounts shall bear interest until paid in full at the
Default Rate. For purposes hereof, “Acceleration Event” means the first to occur of the following:
(i) if any principal or accrued interest or other amount owing under this Note is not paid when due
and such default continues unremedied for fifteen (15) days after written notice provided by Payee
to Payor, (ii) Payor having made an assignment for the benefit of creditors, filed a petition in
bankruptcy, applied to or petitioned any tribunal for the appointment of a custodian, receiver,
intervener or trustee for Payor, or commenced any proceeding for any arrangement or readjustment of
its debts, (iii) any such petition or application having been filed or proceeding having commenced
against Payor and Payor not having interposed a defense thereto within the time permitted under
applicable law, (iv) the sale or other disposition of all or substantially all of Payor’s assets,
(v) the dissolution of Payor or (vi) the failure by Payor to perform any other covenant, agreement
or condition contained in this Note and such default continues unremedied for thirty (30) days
after written notice thereof is given to Payor by Payee; provided, however, in the event such
default is curable but is not reasonably capable of cure within said 30-day period, Payor shall
have such additional time as required to cure any such default so long as Payor is diligently
undertaking the cure of such default.

The Payor (i) waives diligence, demand, presentment, protest and notice of any kind, except
for any notice expressly required by the provisions of this Note, and (ii) agrees that it will not
be necessary for the Payee to first institute suit in order to enforce payment of this Note.

The validity, interpretation and enforcement of this Note and any dispute arising in
connection herewith or therewith shall be governed by the internal laws of the State of New York
(without giving effect to principles of conflicts of law).

The Payor irrevocably consents and submits to the exclusive jurisdiction of the state courts
of the State of New York located in the County of New York and the United States District Court
whose district covers such county, and waives any objection based on venue or forum non conveniens
with respect to any action instituted therein arising under this Note.

EACH OF PAYOR AND PAYEE HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER THIS NOTE, AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY.

The Payor may not assign this Note and/or delegate any of its obligations hereunder without
the written consent of the Payee. This Note is not secured by any collateral of any nature.
Neither this Note nor all or any portion of the Payee’s rights and interests herein may be
negotiated, assigned, pledged, hypothecated or otherwise transferred by Payee.

The Payor shall be solely responsible for any necessary tax or assessment relating to this
Note; provided, however, that the Payor shall not be responsible for Payee’s tax obligations
arising from receipt of funds set forth herein.

If any term or provision of this Note shall be held invalid, illegal or unenforceable, the
validity of all other terms and provisions hereof shall in no way be affected thereby.

The waiver by the Payee of the Payor’s prompt and complete performance of, or default under,
any provision of this Note shall not operate nor be construed as a waiver of any subsequent breach
or default, and the failure by the Payee to exercise any right or remedy which it may possess
hereunder or under applicable law shall not operate nor be construed as a bar to the exercise of
any such right or remedy upon the occurrence of any subsequent breach or default.

[Signature Page Follows]

1

IN WITNESS WHEREOF, the Payor has executed this Promissory Note the day and year first written
above.

CIRCLE ENTERTAINMENT INC.

	 	 	 
	By:

	 	

	
 
	 	 
	Name:

	 	Mitchell J. Nelson
	
 
	 	 
	Title:

	 	Executive Vice President
	
 
	 	 

2

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