Document:

Exhibit 10.18

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of November 4, 2013, to be effective as of September 30, 2013, among UNIVERSAL AMERICAN CORP., a Delaware corporation (the “Borrower”), other Loan Parties, certain Lenders party to the Credit Agreement (hereinafter defined) and BANK OF AMERICA, N.A., as the Administrative Agent for the Lenders.

 

The Borrower, the Lenders and the Administrative Agent are party to the Credit Agreement dated as of March 2, 2012 (as heretofore amended or modified, the “Credit Agreement”), and have agreed, upon the following terms and conditions, to amend the Credit Agreement in certain respects. Accordingly, for valuable and acknowledged consideration, the Borrower, the Lenders and the Administrative Agent agree as follows:

 

1.                                      Defined Terms.  Unless otherwise stated in this Amendment, terms defined in the Credit Agreement have the same meanings when used in this Amendment.

 

2.                                      Amendments to Credit Agreement.

 

(a)                                 The following definitions are added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

 

“Interim Leverage Ratio” means, as of any date of determination, the ratio of (a) all Indebtedness of the Borrower and its Subsidiaries, on a consolidated basis, as of such date to (b) the sum of (i) all Indebtedness of the Borrower and its Subsidiaries, on a consolidated basis, as of such date plus (ii) consolidated shareholders’ equity (excluding accumulated other comprehensive income) of the Borrower and its Subsidiaries as of such date determined in accordance with GAAP.

 

“Interim Period” means the period commencing on September 30, 2013 to and including December 31, 2014. The Interim Period shall include the fiscal quarter ending on September 30, 2013.

 

“Liquid Assets” means, at any time of determination, the sum of (a) the difference of (i) the Revolving Credit Facility then in effect minus (ii) the Total Revolving Credit Outstandings plus (b) unrestricted cash and Cash Equivalents of the Borrower (excluding its Subsidiaries).

 

(b)                                 The definition of “Pro Forma Compliance” in Section 1.01 of the Credit Agreement is hereby amended by adding the following at the end thereof:

 

“Notwithstanding the foregoing, during the Interim Period, the reference to Section 7.11(b) and (c) in the foregoing clause (a) shall be deemed to be Section 7.11(d), (e) and (f), provided that in determining Pro Forma Compliance during the Interim Period, the maximum permitted Interim Leverage Ratio referenced in Section 7.11(d) shall be deemed to be 20%.”

 

 

(c)                                  Each of Section 7.02(j) and Section 7.03(h)(iv) of the Credit Agreement is hereby amended by adding “, if applicable” immediately after the reference to “Section 7.11(b)”.

 

(d)                                 Section 7.06(e) of the Credit Agreement is hereby amended by adding the following at the end thereof:

 

“Notwithstanding the foregoing, this clause (e) shall not apply during the Interim Period.”

 

(e)                                  Section 7.06 of the Credit Agreement is hereby amended by adding the following clause (f) at the end thereof:

 

“(f) during the Interim Period, the Borrower may make Restricted Payments in cash not to exceed $20,000,000, in the aggregate, solely for the purpose of redeeming the Equity Interests of Borrower owned by certain holders of 5% or more of the Equity Interests of the Borrower and their respective Affiliates; provided that (i) the Borrower shall notify the Administrative Agent of each such Restricted Payment at least five (5) Business Days in advance, (ii) each time the Borrower makes such Restricted Payment, the Borrower shall, at the same time, prepay the principal amount of the Term Facility Loans in an amount equal to 50% of such Restricted Payment and such amount shall be applied to the principal repayment installments with respect to the Term Facility under Section 2.07(a) in direct order of maturity, and (iii) no Term Facility Lender may reject its portion of such prepayment.”

 

(f)                                   Section 7.11(b) of the Credit Agreement is hereby amended by adding the following at the end thereof:

 

“Notwithstanding the foregoing, compliance with this clause (b) shall not be required with respect to each fiscal quarter ending during the Interim Period; provided that (i) the Applicable Rate during the Interim Period shall continue to be determined based on the Consolidated Leverage Ratio and (ii) the Borrower shall continue to deliver the Compliance Certificate, including information regarding Consolidated Leverage Ratio, in accordance with Section 6.02(b) hereof.”

 

(g)                                  Section 7.11(c) of the Credit Agreement is hereby amended by adding the following at the end thereof:

 

“Notwithstanding the foregoing, compliance with this clause (c) shall not be required with respect to each fiscal quarter ending during the Interim Period; provided the Borrower shall continue to deliver the Compliance Certificate, including information regarding Consolidated Debt Service Coverage Ratio, in accordance with Section 6.02(b) hereof.”

 

(h)                                 Section 7.11 of the Credit Agreement is hereby amended by adding the following clauses (d), (e) and (f) at the end thereof:

 

“(d) Interim Leverage Ratio.  Permit the Interim Leverage Ratio to be more than 22.5% at any time during the Interim Period.

 

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(e) Minimum Liquidity.  Permit the Liquid Assets to be less than $95,000,000 at any time during the Interim Period.

 

(f) Aggregate Risk Based Capital.  Permit the Risk Based Capital Ratio, on an aggregate basis for all Regulated Insurance Companies, as of the end of any quarterly accounting period during the Interim Period, to be less than 2.00:1.00.”

 

(i)                                     During the Interim Period, Schedule 1 to Exhibit D (Compliance Certificate) of the Credit Agreement shall be replaced with Appendix A attached hereto.

 

3.                                      Conditions Precedent to Effectiveness of Amendment.  This Amendment shall not be effective unless and until:

 

(a)                                 the Administrative Agent receives:

 

(i)                                     counterparts of this Amendment executed by the Borrower and the other Loan Parties, the Required Lenders and the Administrative Agent;

 

(ii)                                  payment of the Term Facility Loans in the principal amount of $17,835,739.20 (representing the aggregate principal amount required to be paid during the Interim Period (other than the installment payment required on September 30, 2013) under Section 2.07(a) of the Credit Agreement), together with accrued interest thereon (the “Required Amortization Payment”); provided that the Borrower may not request a Borrowing under the Revolving Credit Facility and use the proceeds of such Borrowing to make such Required Amortization Payment;

 

(iii)                               payment of an amendment fee to each Lender that executes and delivers this Amendment at or before noon, New York time on October 31, 2013, in an amount equal to 0.125% of the sum of (i) the outstanding principal balance of the Term Facility Loan owing to such Lender and (ii) the Revolving Credit Commitment of such Lender, in each case immediately before giving effect to the Required Amortization Payment;

 

(iv)                              payment of all fees set forth in the Fee Letter executed in connection with this Amendment; and

 

(v)                                 payment of all reasonable expenses, including reasonable legal fees and expenses of counsel to the Administrative Agent, incurred by the Administrative Agent in connection with this Amendment;

 

(b)                                 all representations and warranties made or deemed made by the Borrower and each other Loan Party in the Loan Documents are true and correct in all respects as of the date hereof as if made on the date hereof, except to the extent that such representations and warranties expressly relate solely to an earlier date, in which case such representations and warranties were true and accurate in all respects on and as of such earlier date;

 

(c)                                  no Default or Event of Default shall have occurred and be continuing both before and after giving effect to the transactions contemplated in this Amendment; and

 

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(d)                                 the Administrative Agent receives duly executed officer certificates, together with all amendments and supplements to the Organization Documents of the Loan Parties since March 2, 2012.

 

4.                                      Acknowledgment and Ratification.

 

(a)                                 As a material inducement to the Administrative Agent and Lenders to execute and deliver this Amendment, the Borrower and each other Loan Party (i) consent to the agreements in this Amendment, and (ii) agree and acknowledge that the execution, delivery, and performance of this Amendment shall in no way release, diminish, impair, reduce, or otherwise affect the respective obligations of Borrower or the other Loan Parties under their respective Loan Documents, which Loan Documents shall remain in full force and effect, and all Liens, guaranties, and rights thereunder are hereby ratified and confirmed.  The receipt of each other Loan Party’s consent and acknowledgement hereunder shall not constitute a requirement that the Administrative Agent and Lenders obtain such consent or acknowledgement in connection with any other amendment, modification, or waiver of any term or provision of any Loan Documents.

 

(b)                                 The Borrower agrees that prior to December 31, 2014, it shall not request any increase in the Revolving Credit Facility or the Term Facility, or to request any Additional Term Facility, and any such request shall be disregarded and shall be of no effect whatsoever.

 

(c)                                  The Lenders hereby acknowledge that the Required Amortization Payment represents installment payments required to be made by the Borrower under Section 2.07(a) of the Credit Agreement during the Interim Period (other than the installment payment required on September 30, 2013). For the avoidance of doubt, the Required Amortization Payment shall be applied to the principal repayment installments with respect to the Term Facility under Section 2.07(a) of the Credit Agreement in direct order of maturity.

 

(d)                                 The Administrative Agent, the Lenders and the Borrower agree that in calculating Excess Cash Flow, (i) only $3,567,147.84 of the Required Amortization Payment shall be included in clause (b)(ii) of the definition of “Excess Cash Flow” for the Excess Cash Flow Period ending on December 31, 2013, and (ii) the remainder of the Required Amortization Payment shall be included in clause (b)(ii) of the definition of “Excess Cash Flow” for the Excess Cash Flow Period ending on December 31, 2014.

 

(e)                                  Without limiting any applicable terms or conditions in the Credit Agreement, the Administrative Agent, the Lenders and the Borrower acknowledge that as of the date hereof and in addition to the amount permitted under Section 7.06(f) of the Credit Agreement, the amount of Restricted Payments the Borrower may make under Section 7.06(d) of the Credit Agreement is $45,222,000.

 

5.                                      Eligible Contract Participant Status.

 

(a)                                 Any Guarantee of, or collateral securing, the Obligations, provided by a Loan Party that is not an “eligible contract participant” under the Commodity Exchange Act (the “Specified Loan Party”) shall not include the Excluded Swap Obligation.

 

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(b)                                 Each Loan Party that is a Qualified ECP Loan Party hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Swap Obligation as may be needed by such Specified Loan Party from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Loan Party’s obligations and undertakings hereunder voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount). The obligations and undertakings of each Qualified ECP Loan Party hereunder shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full. Each Qualified ECP Loan Party intends this clause (b) to constitute, and this clause (b) shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.

 

(c)                                  “Swap Obligations” means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

 

(d)                                 “Excluded Swap Obligation” means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Loan Party of, or the grant by such Loan Party of a security interest to secure, such Swap Obligation is or becomes illegal under the Commodity Exchange Act or the Commodity Futures Trading Commission by virtue of such Loan Party’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Swap Obligation or security interest is or becomes illegal.

 

(e)                                  “Qualified ECP Loan Party” shall mean, at any time, each Loan Party with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1418(A)(v)(II) of the Commodity Exchange Act.

 

6.                                      Representations.  Each Loan Party represents and warrants to the Administrative Agent and the Lenders as follows: (a) the execution, delivery and performance by such Loan Party of this Amendment has been duly authorized by all necessary corporate action; (b) after giving effect to this Amendment, all representations and warranties made or deemed made by each Loan Party in the Loan Documents are true and correct in all respects as of the date hereof as if made on the date hereof, except to the extent that such representations and warranties expressly relate solely to an earlier date, in which case such representations and warranties were true and accurate in all respects on and as of such earlier date; and (c) after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing as of the date hereof.

 

7.                                      Effect of Amendment.  This Amendment is a Loan Document.  Except as expressly modified and amended by this Amendment, all of the terms, provisions and conditions of the Loan Documents shall remain unchanged and in full force and effect. The execution, delivery, and effectiveness of this Amendment shall not operate as a waiver of any rights of Lenders under

 

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any Loan Document, nor constitute a waiver under any of the Loan Documents. If any part of this Amendment is for any reason found to be unenforceable, all other portions of it shall nevertheless remain enforceable.  The Loan Documents and any and all other documents heretofore, now or hereafter executed and delivered pursuant to the terms of the Credit Agreement are hereby amended so that any reference to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.

 

8.                                      Expenses.  The Borrower shall pay all reasonable fees and expenses paid or incurred by the Administrative Agent incident to this Amendment, including, without limitation, the reasonable fees and expenses of the Administrative Agent’s counsel in connection with the negotiation, preparation, delivery and execution of this Amendment and any related documents.

 

9.                                      Waivers.

 

(a)                                 Each Lender that executes and delivers this Amendment hereby waives all breakage costs incurred by it and required to be paid by the Borrower pursuant to Section 3.05 of the Credit Agreement in connection with the Required Amortization Payment.

 

(b)                                 Each Loan Party (i) acknowledges and agrees that, as of the date hereof, it has no actual or potential claim or cause of action against the Administrative Agent or any Lender relating to any Loan Documents or any actions or events occurring on or before the date of this Amendment and (ii) waives and releases any right to assert such claim or cause of action to the extent based on actions or events occurring on or before the date hereof.

 

11.                               Governing Law.  This Amendment shall be governed by and construed in accordance with and be governed by the laws of the State of New York, without regard to conflict of laws principles.

 

12.                               Counterparts.  This Amendment may be executed in any number of counterparts and by the 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 one and the same instrument.  Delivery of an executed signature page to this Amendment by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Amendment.

 

13.                               ENTIRETY.  THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND SUPERCEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER HEREOF.  THESE LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

 

14.                               Parties.  This Amendment binds and inures to the benefit of the Borrower, the other Loan Parties, the Administrative Agent, the Lenders and their respective permitted successors and assigns.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK.]

 

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Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

	
 
    	
THE BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
UNIVERSAL AMERICAN CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
President   and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
OTHER   LOAN PARTIES:
    
	
 
    	
 
    	
 
    
	
 
    	
UNIVERSAL AMERICAN HOLDINGS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
UNIVERSAL AMERICAN CORP.,
    
	
 
    	
 
    	
its Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
s/s   Robert A. Waegelein
    
	
 
    	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
 
    	
Title:
    	
President   and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HERITAGE HEALTH SYSTEMS, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APS PARENT, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
Vice   President
    
					

 

Signature Page to First Amendment to Credit Agreement

 

 

Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

 

	
 
    	
UAM/APS   HOLDING CORP.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COLLABORATIVE   HEALTH SYSTEMS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
Executive   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
COLLABORATIVE   HEALTH SOLUTIONS, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
UNIVERSAL   AMERICAN CORP.,
    
	
 
    	
 
    	
its   Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
 
    	
Title:
    	
President   and Chief Financial Officer
    

 

Signature Page to First Amendment to Credit Agreement

 

 

Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

 

	
 
    	
APS   HEALTHCARE, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
APS   HEALTHCARE HOLDINGS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
APS   HEALTHCARE BETHESDA, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INNOVATIVE   RESOURCE GROUP, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert A. Waegelein
    
	
 
    	
Name:
    	
Robert   A. Waegelein
    
	
 
    	
Title:
    	
President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HARMONY   HEALTH, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   James P. McAleer
    
	
 
    	
Name:
    	
James   P. McAleer
    
	
 
    	
Title:
    	
Vice   President
    

 

Signature Page to First Amendment to Credit Agreement

 

 

Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

	
 
    	
BANK OF AMERICA, N.A., as
    
	
 
    	
Administrative   Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/Aamir   Saleem
    
	
 
    	
Name:
    	
Aamir   Saleem
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Yinghua Zhang
    
	
 
    	
Name:
    	
Yinghua   Zhang
    
	
 
    	
Title:
    	
Vice   President
    

 

 

Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

	
 
    	
FIFTH   THIRD BANK, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Vera B. McEvoy
    
	
 
    	
Name:
    	
Vera   B. McEvoy
    
	
 
    	
Title:
    	
Healthcare   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
SunTrust   Bank, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Katherine Bass
    
	
 
    	
Name:
    	
Katherine   Bass
    
	
 
    	
Title:
    	
Director
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
U.S.   BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jennifer Hwang
    
	
 
    	
Name:
    	
Jennifer   Hwang
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
UNION   BANK, N.A., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard A. Lopatt
    
	
 
    	
Name:
    	
Richard   A. Lopatt
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ASSOCIATED   BANK, NATIONAL 
    
	
 
    	
ASSOCIATION, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Liliana Huerta
    
	
 
    	
Name
    	
Liliana   Huerta
    
	
 
    	
Title:
    	
Vice   President
    

 

 

Signature Page to that certain First Amendment to Credit Agreement dated as of the date first set forth above, among Universal American Corp., as the Borrower, the other Loan Parties, Bank of America, N.A., as the Administrative Agent, and certain Lenders party thereto.

 

	
 
    	
COMPASS   BANK, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brandon Kelley
    
	
 
    	
Name:
    	
Brandon   Kelley
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GOLDMAN   SACHS BANK USA, as a Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michelle Latzoni
    
	
 
    	
Name:
    	
Michelle   Latzoni
    
	
 
    	
Title:
    	
Authorized   SignatoryEnertopia Corporation: Exhibit 10.1 - Filed by newsfilecorp.com

Exhibit 10.1

STOCK OPTION AGREEMENT 

ENERTOPIA CORP. 

THIS AGREEMENT is entered into as of the 5th day of November,
2013 (the “Date of Grant”) 

BETWEEN: 

ENERTOPIA CORP., a company
incorporated pursuant to the laws of the State of Nevada, of Suite 950 1130 West
Pender, Vancouver, BC V6E 4A4 

(the “Company”) 

AND: 

(the “Optionee”) 

WHEREAS: 

A.          The Board of Directors of the Company (the “Board”) has
approved and adopted the 2011 Stock Option Plan (the “Plan”), pursuant to which
the Board is authorized to grant to employees and other selected persons stock
options to purchase common shares of the Company (the “Common Stock”); 

B.          The Plan provides for the granting of stock options that
either (i) are intended to qualify as “Incentive Stock Options” within the
meaning of Section 422 of the Internal Revenue Code of 1986, as amended (the
“Code”), or (ii) do not qualify under Section 422 of the Code (“Non-Qualified
Stock Options”); and 

C.          The Board has authorized the grant to the Optionee of
options to purchase a total of 250,000 shares of Common Stock (the
“Options”), which Options are intended to be (select one): 

[   ]   
 Incentive Stock Options; 

[X]     Qualified
Stock Options 

NOW THEREFORE, the Company agrees to offer to the Optionee the
option to purchase, upon the terms and conditions set forth herein and in the
Plan, XXX shares of Common Stock. Capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Plan. 

ITEM 1          Exercise price. The exercise price of the options shall
be us $0.06 per share. 

ITEM 2          Limitation on the number of shares. If the options
granted hereby are incentive stock options, the number of shares which may be
acquired upon exercise thereof is subject to the limitations set forth in
section 5.1 of the plan. 

- 2 – 

ITEM 3          Vesting schedule. The options shall vest in accordance
with exhibit a. 

ITEM 4          Options not transferable. The options may not be
transferred, assigned, pledged or hypothecated in any manner (whether by
operation of law or otherwise) other than by will, by applicable laws of descent
and distribution or, in the case of a non-qualified stock option, pursuant to a
qualified domestic relations order, and shall not be subject to execution,
attachment or similar process; provided, however, that if the options
represent a non-qualified stock option, such option is transferable without
payment of consideration to immediate family members of the optionee or to
trusts or partnerships established exclusively for the benefit of the optionee
and optionee’s immediate family members. Upon any attempt to transfer, pledge,
hypothecate or otherwise dispose of any option or of any right or privilege
conferred by the plan contrary to the provisions thereof, or upon the sale, levy
or attachment or similar process upon the rights and privileges conferred by the
plan, such option shall thereupon terminate and become null and void. 

ITEM 5          Investment intent. By accepting the options, the optionee represents and agrees that none of the shares of common stock purchased
upon exercise of the options will be distributed in violation of applicable
federal and state laws and regulations. In addition, the company may require, as
a condition of exercising the options, that the optionee execute an undertaking,
in such a form as the company shall reasonably specify, that the stock is being
purchased only for investment and without any then-present intention to sell or
distribute such shares. 

ITEM 6          Termination of employment and options. Vested options
shall terminate, to the extent not previously exercised, upon the occurrence of
the first of the following events: 

	 	(A) 	
      Expiration. Five (5) years from the date of
  grant.

	 	 	 
	 	(B) 	
      Termination for cause. The date of the first discovery by
      the company of any reason for the termination of an optionee’s employment
      or contractual relationship with the company or any related company for
      cause (as determined in the sole discretion of the plan administrator),
      and, if an optionee’s employment is suspended pending any investigation by
      the company as to whether the optionee’s employment should be terminated
      for cause, the optionee’s rights under this agreement and the plan shall
      likewise be suspended during the period of any such
  investigation.

	 	 	 
	 	(C) 	
      Termination due to death or disability. The expiration of
      one (1) year from the date of the death of the optionee or cessation of an
      optionee’s employment or contractual relationship by reason of disability
      (as defined in section 5.1(g) of the plan). If an optionee’s employment or
      contractual relationship is terminated by death, any option held by the
      optionee shall be exercisable only by the person or persons to whom such
      optionee’s rights under such option shall pass by the optionee’s will or
      by the laws of descent and distribution.

	 	 	 
	 	(D) 	
      Termination for any other reason. The expiration of
      ninety (90) days from the date of an optionee’s termination of employment
      or contractual relationship with the company or any related corporation for any reason
whatsoever other than termination of service as a director, cause, death or
disability (as defined in section 5.1(g) of the plan). 

- 3 – 

Each unvested Option granted pursuant hereto shall terminate
immediately upon termination of the Optionee’s employment or contractual
relationship with the Company for any reason whatsoever, including Disability
unless vesting is accelerated in accordance with Section 5.1(f) of the Plan.

ITEM 7          Stock. In the case of any stock split, stock
dividend or like change in the nature of shares of stock covered by this
agreement, the number of shares and exercise price shall be proportionately
adjusted as set forth in section 5.1(m) of the plan. 

ITEM 8          Exercise of option. Options shall be exercisable,
in full or in part, at any time after vesting, until termination; provided,
however, that any optionee who is subject to the reporting and liability
provisions of section 16 of the securities exchange act of 1934 with
respect to the common stock shall be precluded from selling or transferring any
common stock or other security underlying an option during the six (6) months
immediately following the grant of that option. If less than all of the shares
included in the vested portion of any option are purchased, the remainder may be
purchased at any subsequent time prior to the expiration of the option term. No
portion of any option for less than fifty (50) shares (as adjusted pursuant to
section 5.1(m) of the plan) may be exercised; provided, that if the vested
portion of any option is less than fifty (50) shares, it may be exercised with
respect to all shares for which it is vested. Only whole shares may be issued
pursuant to an option, and to the extent that an option covers less than one (1)
share, it is unexercisable. 

Each exercise of the Option shall be by means of delivery of a
notice of election to exercise (which may be in the form attached hereto as
Exhibit B) to the President of the Company at its principal executive
office, specifying the number of shares of Common Stock to be purchased and
accompanied by payment in cash by certified check or cashier’s check in the
amount of the full exercise price for the Common Stock to be purchased. In
addition to payment in cash by certified check or cashier’s check, an Optionee
or transferee of an Option may pay for all or any portion of the aggregate
exercise price by complying with one or more of the following alternatives: 

	 	(A) 	
      By delivering to the company shares of common stock
      previously held by such person, duly endorsed for transfer to the company,
      or by the company withholding shares of common stock otherwise deliverable
      pursuant to exercise of the option, which shares of common stock received
      or withheld shall have a fair market value at the date of exercise (as
      determined by the plan administrator) equal to the aggregate purchase
      price to be paid by the optionee upon such exercise; or

	 	 	 
	 	(B) 	
      By complying with any other payment mechanism approved by
      the plan administrator at the time of
exercise.

- 4 – 

It is a condition precedent to the issuance of shares of Common
Stock that the Optionee execute and/or deliver to the Company all documents and
withholding taxes required in accordance with Section 5.1 of the Plan. 

ITEM 9          Holding period for incentive stock options. In
order to obtain the tax treatment provided for incentive stock options by
section 422 of the code, the shares of common stock received upon exercising any
incentive stock options received pursuant to this agreement must be sold, if at
all, after a date which is later of two (2) years from the date of this
agreement is entered into or one (1) year from the date upon which the options
are exercised. The optionee agrees to report sales of shares prior to the above
determined date to the company within one (1) business day after such sale is
concluded. The optionee also agrees to pay to the company, within five (5)
business days after such sale is concluded, the amount necessary for the company
to satisfy its withholding requirement required by the code in the manner
specified in section 5.1(l) of the plan. Nothing in this section 9 is intended
as a representation that common stock may be sold without registration under
state and federal securities laws or an exemption therefrom or that such
registration or exemption will be available at any specified time. 

ITEM 10          Resale restrictions may apply. Any resale of the
shares of common stock received upon exercising any options will be subject to
resale restrictions contained in the securities legislation applicable to the
optionee. The optionee acknowledges and agrees that the optionee is solely
responsible (and the company is not in any way responsible) for compliance with
applicable resale restrictions. 

ITEM 11          Subject to 2011 stock option plan. The terms of
the options are subject to the provisions of the plan, as the same may from time
to time be amended, and any inconsistencies between this agreement and the plan,
as the same may be from time to time amended, shall be governed by the
provisions of the plan, a copy of which has been delivered to the optionee, and
which is available for inspection at the principal offices of the company. 

ITEM 12          Professional advice. The acceptance of the
options and the sale of common stock issued pursuant to the exercise of options
may have consequences under federal and state tax and securities laws which may
vary depending upon the individual circumstances of the optionee. Accordingly,
the optionee acknowledges that he or she has been advised to consult his or her
personal legal and tax advisor in connection with this agreement and his or her
dealings with respect to options. Without limiting other matters to be
considered with the assistance of the optionee’s professional advisors, the
optionee should consider: (a) whether upon the exercise of options, the optionee
will file an election with the internal revenue service pursuant to section
83(b) of the code and the implications of alternative minimum tax pursuant to
the code; (b) the merits and risks of an investment in the underlying shares of
common stock; and (c) any resale restrictions that might apply under applicable
securities laws. 

ITEM 13          No employment relationship. Whether or not any
options are to be granted under this plan shall be exclusively within the
discretion of the plan administrator, and nothing contained in this plan shall
be construed as giving any person any right to participate under this plan. The
grant of an option shall in no way constitute any form of agreement or
understanding binding on the company or any related company, express or implied,
that the company or any related company will employ or contract with an
optionee, for any length of time, nor shall it interfere in any way with the company’s or, where applicable, a
related company’s right to terminate optionee’s employment at any time, which
right is hereby reserved. 

- 5 – 

ITEM 14          Entire agreement. This agreement is the only
agreement between the optionee and the company with respect to the options, and
this agreement and the plan supersede all prior and contemporaneous oral and
written statements and representations and contain the entire agreement between
the parties with respect to the options. 

ITEM 15          Notices. Any notice required or permitted to be
made or given hereunder shall be mailed or delivered personally to the addresses
set forth below, or as changed from time to time by written notice to the other:

	 	The Company: 	
	 	 	  
	 	 	Enertopia Corp. 
	 	 	Suite 950 1130 West Pender Street 
	 	 	Vancouver, BC V6E 4A4 
	 	 	Attention: President 
	 	 	  
	 	With a copy to:	 
	 	 	  
	 	 	W.L. Macdonald Law Corporation 
	 	 	400 – 570 Granville Street 
	 	 	Vancouver, British Columbia V6C 3P1 
	 	 	Attention: William Macdonald 
	 	 	  
	 	 	  
	 	 	  
	 	The Optionee: 	  
	 	 	 
	 	 	__________________________
	 	 	__________________________
	 	 	__________________________
	 	 	__________________________

ENERTOPIA CORP. 

	Per: 	__________________________
	 	Authorized Signatory 
	 	  
	 	  
	 	__________________________
	 	[  ] 

- 6 – 

EXHIBIT A 

TERMS OF THE OPTION 

	Name of the Optionee: 	  
	   	 
	Date of Grant: 	November 5, 2013 
	   	 
	Designation: 	Qualified Stock Options 
	  	 
	1. 	Number of Options granted: 	XXX stock options 
	 	  	 
	2. 	Purchase Price: 	$0.06 per share 
	 	  	 
	3. 	Vesting Date: 	XXX options on November 5, 2013; 
	  	   	  
	4. 	Expiration Date: 	November 5, 2018 

- 7 – 

EXHIBIT B 

To: 

Enertopia Corp. 
Suite 950
1130 West Pender 
Vancouver, BC V6E 4A4 
Attention: President 

Notice of Election to Exercise 

This Notice of Election to Exercise shall constitute proper
notice pursuant to Section 5.1(h) of Enertopia Corp.’s (the “Company”) 2011
Stock Option Plan (the “Plan”) and Section 8 of that certain Stock Option
Agreement (the “Agreement”) dated as of the _______day of __________________,
20___, between the Company and the undersigned. 

The undersigned hereby elects to exercise Optionee’s option to
purchase __________________shares of the common stock of the Company at a price
of US$0.06 per share, for aggregate consideration of US$__________, on the terms
and conditions set forth in the Agreement and the Plan. Such aggregate
consideration, in the form specified in Section 8 of the Agreement, accompanies
this notice. 

The Optionee hereby directs the Company to issue, register and
deliver the certificates representing the shares as follows: 

	Registration Information: 	 	Delivery Instructions: 
	  	 	 
	Name to appear on certificates 	 	Name 
	  	 	 
	  	 	 
	Address 	 	Address 
	 	 	 
	 	 	 
	  	 	  
	 	 	  
	  	 	Telephone Number 

- 8 – 

DATED at ____________________________________, the _______day
of ________________________, 20___. 

	 	 
    
	 	(Name of Optionee – Please type or print)

	 	 
	 	   
	 	(Signature and, if applicable, Office) 
	 	 
	 	 
    
	 	(Address of Optionee) 
	 	  
	 	  
	 	(City, State, and Zip Code of Optionee)

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