Document:

Exhibit 10.13

 

WAIVER AND SECOND AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS WAIVER AND SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT
AGREEMENT (this “Waiver
and Amendment”) is entered into as of December 30, 2005,
among UNIVERSAL AMERICAN FINANCIAL CORP.,
a New York corporation (the “Borrower”),
the Banks party to the Credit Agreement (hereinafter defined) and BANK OF AMERICA, N.A., as the Administrative Agent for the
Banks.

 

The Borrower, the Banks and the Administrative Agent are party to the
Amended and Restated Credit Agreement dated as of May 28, 2004, as amended
by the First Amendment to Amended and Restated Credit Agreement dated as of
June 2, 2005 (the “Credit Agreement”). The
Borrower has advised the Banks and the Administrative Agent that the Borrower
has purchased shares of its capital stock during its fiscal year ending
December 31, 2005 in an amount equal to $10.9 million (such purchase in
such amount being herein called the “Subject Purchase”), which amount is in excess
of that permitted by Clause
(B) of Section
7.08(a)(ii) of the Credit Agreement and has requested that the
Banks waive the Event of Default that has occurred as a result thereof and that
the Administrative Agent acknowledge such waiver. The Borrower has also requested
that the Banks agree to amend Clause (B) of Section 7.08(a)(ii) of the Credit Agreement
and that the Administrative Agent acknowledge such amendment. Accordingly, for
valuable and acknowledged consideration, the Borrower, the Banks and the
Administrative Agent agree and acknowledge as follows:

 

1.             Terms and References. Unless
otherwise stated in this Waiver and Amendment, (a) terms defined in the Credit
Agreement have the same meanings when used in this Waiver and Amendment and (b)
references to “Sections” are to the Credit
Agreement’s sections.

 

2.             Waiver. The Banks hereby waive the
Event of Default that has occurred as the result of the Subject Purchase and
agree that such Event of Default is no longer continuing.

 

3.             Amendment. Clause (B) of Section 7.08(a)(ii)
is amended and restated to read in its entirety as follows:

 

“(B) other than with the cash proceeds of
capital stock issued by the Borrower or any of its Subsidiaries after the
Initial Borrowing Date, in an amount not exceeding (1) $1,000,000 in the
aggregate during the fiscal year ending December 31, 2004, (2) $11,000,000
in the aggregate during the fiscal year ending December 31, 2005, or (3)
$30,000,000 in the aggregate after January 1, 2006.”

 

4.             Conditions Precedent to Effectiveness of Waiver
and Amendment. This Waiver and Amendment shall not be effective
until the Administrative Agent receives: (a) counterparts of this Waiver and
Amendment executed by the Borrower, the Subsidiary Guarantors, the Required
Banks and the Administrative Agent; (b) 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 Waiver and
Amendment, to the extent invoiced to the Borrower on or prior to the date
hereof; and (c) such other agreements, documents, instruments and items as the
Administrative Agent may reasonably request, including, without limitation,
documents evidencing the due authorization of the execution, delivery and
performance by the Borrower and each of the Subsidiary Guarantors of this
Waiver and Amendment, the incumbency of the officer of the Borrower and each of
the Subsidiary Guarantors executing this Waiver and Amendment, and any other
matters relevant thereto.

 

1

 

5.             Representations. The Borrower
represents and warrants to the Administrative Agent and the Banks as
follows:  (a) the execution, delivery and
performance by the Borrower of this Waiver and Amendment and the Credit Agreement,
as amended hereby, have been duly authorized by all necessary corporate action;
(b) all representations and warranties made or deemed made by the Borrower in
the Credit Documents are true and correct as of 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 on and as of such earlier date) and except for changes in factual
circumstances not prohibited by the Credit Agreement; and (c) except as waived
hereby, no Default or Event of Default has occurred and is continuing as of the
date hereof.

 

6.             Effect of Waiver and Amendment.
This Waiver and Amendment is a Credit Document. The waiver set forth in this
Waiver and Amendment is limited to the Event of Default existing as a result of
the Subject Purchase and does not constitute the waiver of any other matter now
or hereafter requiring the consent or waiver of the Banks or the Administrative
Agent under the Credit Documents. Except as expressly modified and amended by
this Waiver and Amendment, all of the terms, provisions and conditions of the
Credit Documents, and the Liens created thereby, shall remain unchanged and in
full force and effect and are hereby ratified and confirmed. If any part of
this Waiver and Amendment is for any reason found to be unenforceable, all
other portions of it shall nevertheless remain enforceable. The Credit
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 waived and amended hereby.

 

7.             Expenses. The Borrower shall pay all
reasonable fees and expenses paid or incurred by the Administrative Agent
incident to this Waiver and 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
Waiver and Amendment and any related documents.

 

8.             Governing Law. This Waiver and
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.

 

9.             Counterparts. This Waiver and 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.

 

10.           ENTIRETY. THIS WAIVER AND AMENDMENT, THE
CREDIT AGREEMENT, AND THE OTHER CREDIT DOCUMENTS EMBODY THE ENTIRE AGREEMENT
BETWEEN THE PARTIES AND SUPERCEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS, IF
ANY, RELATING TO THE SUBJECT MATTER HEREOF. THESE CREDIT 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.

 

11.           Parties. This Waiver and Amendment
binds and inures to the benefit of the Borrower, the Subsidiary Guarantors, the
Administrative Agent, the Banks and their respective permitted successors and
assigns.

 

[REMAINDER OF PAGE
INTENTIONALLY BLANK.

SIGNATURE PAGES FOLLOW.]

 

2

 

	
  UNIVERSAL AMERICAN FINANCIAL

  	
   

  	
  HAMILTON FLOATING RATE FUND, LLC,

  
	
  CORP., as the Borrower

  	
   

  	
  as a Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert Waegelein

  	
   

  	
  By:

  	
  /s/ Dean Stephan

  
	
   

  	
  Robert
  Waegelein, Executive Vice

  	
   

  	
   

  	
  Dean Stephan, Managing Director

  
	
   

  	
  President
  and Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ING CAPITAL LLC,
  as a Bank

  
	
  BANK OF AMERICA, N.A., as a Bank and as

  	
   

  	
   

  
	
  the
  Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Mark R. Newsome

  
	
   

  	
   

  	
   

  	
  Mark R. Newsome, Director

  
	
  By:

  	
  /s/ Jeffrey M. Shaver

  	
   

  	
   

  
	
   

  	
  Jeffrey M. Shaver, Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUNTRUST BANK, as
  a Bank

  
	
  THE BANK OF NEW YORK,
  as a Bank

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Christine E. Moss

  
	
  By:

  	
  /s/ Thomas McGinley

  	
   

  	
   

  	
  Christine E. Moss, First Vice President

  
	
   

  	
  Thomas McGinley, Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RAYMOND JAMES BANK, FSB,
  as a Bank

  
	
  DENALI CAPITAL, LLC, managing
  member of

  	
   

  	
   

  
	
  DC Funding Partners, portfolio manager for

  	
   

  	
   

  
	
  DENALI CAPITAL CLO III, LTD,
  or an

  	
   

  	
  By:

  	
  /s/ Thomas F. Macina

  
	
  affiliate

  	
   

  	
   

  	
  Thomas F. Macina, SeniorVice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nicole D. Kouba

  	
   

  	
   

  
	
   

  	
  Nicole D. Kouba, Vice President

  	
   

  	
  OWS CLO 1 LTD., as
  a Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DENALI CAPITAL, LLC, managing
  member of

  	
   

  	
  By:

  	
  /s/ Dean Sterian

  
	
  DC Funding Partners, portfolio manager for

  	
   

  	
   

  	
  Dean Sterian, Managing Director

  
	
  DENALI CAPITAL CLO IV, LTD,
  or an

  	
   

  	
   

  
	
  affiliate

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Nicole D. Kouba

  	
   

  	
   

  
	
   

  	
  Nicole D. Kouba, Vice President

  	
   

  	
   

  
											

 

 

Signature Page to Waiver and Second Amendment
to Amended and Restated Credit Agreement

 

 

To induce the Administrative Agent and the Banks to enter into this
Waiver and Amendment, the undersigned consent and agree (a) to its execution
and delivery and terms and conditions thereof, (b) that this document in no way
releases, diminishes, impairs, reduces, or otherwise adversely affects any
Liens, Subsidiary Guaranties, assurances, or other obligations or undertakings
of any of the undersigned under any Credit Documents, and (c) that this
Amendment binds each of the undersigned and its successors and permitted
assigns and inures to the benefit of the Administrative Agent, the Banks, and
their respective successors and permitted assigns.

 

 

	
  WORLDNET SERVICES CORP.,
  as a

  Guarantor

  	
  HERITAGE HEALTH SYSTEMS OF TEXAS,

  INC., as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert Waegelein

  	
   

  	
  By:

  	
  /s/ Theodore M. Carpenter, Jr

  	
   

  
	
   

  	
  Robert
  Waegelein, Chief Financial Officer

  	
   

  	
  Theodore
  M. Carpenter, Jr., President

  
	
   

  	
   

  
	
   

  	
   

  
	
  UNIVERSAL AMERICAN FINANCIAL

  SERVICES, INC., as a Guarantor

  	
  HHS TEXAS MANAGEMENT, INC.,
  as a

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert Waegelein

  	
   

  	
  By:

  	
  /s/ Steven C. Holman

  	
   

  
	
   

  	
  Robert
  Waegelein, President

  	
   

  	
  Steven
  C. Holman, Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
  QUINCY COVERAGE CORPORATION,
  as a

  Guarantor

  	
  CHCS SERVICES INC.,
  as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert Waegelein

  	
   

  
	
  By:

  	
  /s/ Robert Waegelein

  	
   

  	
   

  	
  Robert
  Waegelein, Executive Vice

  	
   

  
	
   

  	
  Robert
  Waegelein, President

  	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
  HERITAGE HEALTH SYSTEMS, INC.,
  as a

  Guarantor

  	
  CHCS INC., as a
  Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Waegelein

  	
   

  
	
  By:

  	
  /s/ Steven C. Holman

  	
   

  	
   

  	
  Robert
  Waegelein, Executive Vice

  	
   

  
	
   

  	
  Steven C. Holman, Assistant Secretary

  	
   

  	
  President

  

 

 

Signature Page to Waiver and Second Amendment
to Amended and Restated Credit Agreement

 

 

	
  PSO MANAGEMENT OF TEXAS, LLC,
  as a

  Guarantor

  	
  HHS-HPN NETWORK, INC.,
  as a Guarantor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Steven C. Holman

  	
   

  
	
  By:

  	
  /s/
  Steven C. Holman

  	
   

  	
   

  	
  Steven C. Holman, Secretary

  	
   

  
	
   

  	
  Steven C. Holman, Vice President

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HHS TEXAS MANAGEMENT, L.P.,
  as a

  Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  HHS Texas Management, Inc.,
  its

  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Steven C. Holman

  	
   

  
	
   

  	
   

  	
   

  	
  Steven C. Holman, Secretary

  

 

 

Signature Page to Waiver and Second Amendment
to Amended and Restated Credit AgreementExhibit 10.17

 

UNIVERSAL AMERICAN

FINANCIAL CORP.

 

 

INTEROFFICE MEMORANDUM

 

 

	
  TO:

  	
   

  	
  JASON ISRAEL

  
	
  FROM:

  	
   

  	
  RICHARD A. BARASCH

  
	
  DATE:

  	
   

  	
  JUNE 17, 2002

  
	
   

  	
   

  	
   

  
	
  SUBJECT:

  	
   

  	
  JASON ISRAEL

  
	
   

  	
   

  	
  EMPLOYMENT OFFER

  

 

Jason, I am delighted that you have decided to join
our team.

 

Following is a summary of
what we discussed. Please review and let me know if this is correct and, if so,
we will put it in a formal letter.

 

1)              Title: Chief Operating Officer, CHCS Services, Inc.

 

2)              Duties: Part of senior management team
of UHCO, manage the operations of the TPA, UHCO corporate administrative
responsibilities.

 

3)              Salary: $260,000 per annum, paid bi-weekly

 

4)              Bonus:

 

a.               Target Bonus: 50% of salary.

b.              Guaranteed minimum bonus for 2002 of $20,000.

c.               Target is based 70% on company hitting its
earnings goats, 30% on individual performance.

d.              Bonus cycle is 1/1 to 12/31 of each year;
bonus determined in March and paid in April of subsequent year, after
numbers are finalized.

e.               Bonus paid 70% in cash, 30% in UHCO stock
based on price prior to year-end earnings release

 

5)              Participation in Senior Equity Plan: an
additional $500,000 of equity based compensation will be awarded to senior
management based on company

 

 

performance, in a plan being worked out currently.
You will be a part of this plan with an expectation of $60 to 90K of value
(prorated for 2002).

 

6)              Initial Option Grant: 60,000 options, 15,000
to vest immediately, 15,000 on each of the next three anniversaries of your
start date. Options may be granted in future years.

 

7)              $500/ month car allowance

 

8)              Normal benefits

 

9)              Vacation: 4 weeks per year, “use it or lose
it” in each year.

 

10)        For as long as needed, you will agree to spend as much time as is
needed in Pensacola; an appropriate apartment will be provided for your use,
plus your travel, plus travel for your wife as appropriate.

 

11)        Severance: If UHCO is sold, and you are not offered an appropriate job
by new owner, you will get one year severance in salary. Otherwise,

 

a.               For the first 6 months, severance will be 6
months salary

b.              Thereafter, one year.

 

12)        If it is decided that you should move to Pensacola, we will pay for a
standard moving package.

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