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Title: |
Credit Agreement |
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Entities: |
Banc of America Securities LLC; Ceres Group, Inc.; Chase Manhattan Bank; JPMorgan Chase Bank; Raymond James Bank; U.S. Bank, NA; Universal American Financial Corp.; Wells Fargo Bank, NA; Federal National Mortgage Association; Bank of America, NA; Weil, Gotshal & Manges LLP; The CIT Group/Equipment Financing, Inc.; ING Capital LLC |
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Date: |
2003 |
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Size: |
Preview shows 27KB of 409KB total |
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Price: |
$99 |
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ID: |
#292390 |
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CREDIT AGREEMENT
among
UNIVERSAL AMERICAN FINANCIAL CORP.,
VARIOUS LENDING INSTITUTIONS,
and
BANK OF AMERICA, N.A.,
as the Administrative Agent,
the Collateral Agent and the L/C Issuer
Dated as of March 31, 2003
$80,000,000
THE CIT GROUP/EQUIPMENT FINANCING, INC., as Syndication Agent
ING CAPITAL LLC, as Documentation Agent
BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger and Book Manager
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
{S} {C}
SECTION 1. Amount and Terms of Credit........................................................1
1.01 Commitments............................................................................1
1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.........................2
1.03 Notice of Borrowing....................................................................2
1.04 Disbursement of Funds..................................................................2
1.05 Notes..................................................................................3
1.06 Conversions............................................................................3
1.07 Letters of Credit......................................................................4
1.08 Pro Rata Borrowings...................................................................10
1.09 Interest..............................................................................11
1.10 Interest Periods......................................................................11
1.11 Increased Costs, Illegality, etc......................................................12
1.12 Compensation..........................................................................14
1.13 Change of Lending Office..............................................................15
1.14 Replacement of Banks..................................................................15
SECTION 2. Fees; Commitments................................................................15
2.01 Fees..................................................................................15
2.02 Mandatory Reductions of Commitments...................................................16
SECTION 3. Payments.........................................................................16
3.01 Termination or Reduction of the Total Revolving Loan Commitment.......................16
3.02 Voluntary Prepayments.................................................................16
3.03 Mandatory Repayments and Prepayments..................................................17
3.04 Method and Place of Payment...........................................................19
3.05 Net Payments..........................................................................19
SECTION 4. Conditions Precedent.............................................................22
4.01 Effectiveness; Notes..................................................................22
4.02 No Default; Representations and Warranties............................................22
4.03 Officer's Certificate.................................................................23
4.04 Opinions of Counsel...................................................................23
4.05 Corporate Proceedings.................................................................23
4.06 No Material Adverse Effect............................................................23
4.07 Litigation............................................................................23
4.08 Subsidiary Guaranty...................................................................23
4.09 Pledge Agreement......................................................................24
4.10 Security Agreement....................................................................24
4.11 Surplus Note..........................................................................24
4.12 Lien Searches.........................................................................25
4.13 Consummation of the Transaction.......................................................25
4.14 Acquisition Documents.................................................................25
4.15 Tax Sharing Agreements................................................................25
4.16 Financial Statements; Projections.....................................................25
4.17 Approvals, etc........................................................................26
4.18 Indebtedness..........................................................................26
4.19 Payment of Fees.......................................................................26
4.20 Notice of Borrowing...................................................................26
4.21 Insurance Policies....................................................................26
4.22 Capital Structure.....................................................................27
i
{PAGE}
SECTION 5. Representations, Warranties and Agreements.......................................27
5.01 Corporate Status......................................................................27
5.02 Corporate Power and Authority.........................................................27
5.03 No Contravention of Laws, Agreements or Organizational Documents......................27
5.04 Litigation and Contingent Liabilities.................................................28
5.05 Use of Proceeds; Margin Regulations...................................................28
5.06 Approvals.............................................................................28
5.07 Investment Company Act................................................................28
5.08 Public Utility Holding Company Act....................................................29
5.09 True and Complete Disclosure; Projections and Assumptions.............................29
5.10 Consummation of Transaction...........................................................29
5.11 Financial Condition; Financial Statements.............................................29
5.12 Security Interests....................................................................30
5.13 Tax Returns and Payments..............................................................30
5.14 Compliance with ERISA.................................................................31
5.15 Subsidiaries..........................................................................31
5.16 Intellectual Property, etc............................................................32
5.17 Pollution and Other Regulations.......................................................32
5.18 Labor Relations; Collective Bargaining Agreements.....................................32
5.19 Representations and Warranties in Transaction Documents...............................33
5.20 Indebtedness..........................................................................33
5.21 Compliance with Statutes, etc.........................................................33
5.22 Insurance Licenses....................................................................33
SECTION 6. Affirmative Covenants............................................................33
6.01 Information Covenants.................................................................33
6.02 Books, Records and Inspections........................................................36
6.03 Insurance.............................................................................37
6.04 Payment of Taxes......................................................................37
6.05 Corporate Franchises..................................................................37
6.06 Compliance with Statutes, etc.........................................................37
6.07 ERISA.................................................................................37
6.08 Performance of Obligations............................................................38
6.09 Good Repair...........................................................................38
6.10 End of Fiscal Years; Fiscal Quarters..................................................38
6.11 Maintenance of Licenses and Permits...................................................38
6.12 Register..............................................................................38
SECTION 7. Negative Covenants...............................................................39
7.01 Changes in Business...................................................................39
7.02 Consolidation, Merger, Sale or Purchase of Assets.....................................39
7.03 Liens.................................................................................41
7.04 Indebtedness..........................................................................43
7.05 Capital Expenditures..................................................................44
7.06 Advances, Investments and Loans.......................................................45
7.07 Modifications of Agreements, etc......................................................46
7.08 Dividends, Restricted Payments, etc...................................................47
7.09 Transactions with Affiliates..........................................................48
7.10 Leverage Ratio........................................................................48
7.11 Fixed Charge Coverage Ratio...........................................................48
7.12 Minimum Risk Based Capital............................................................48
7.13 Minimum Consolidated Net Worth........................................................48
7.14 Minimum Combined Adjusted Statutory Capital and Surplus...............................48
ii
{PAGE}
7.15 Issuance of Stock.....................................................................49
7.16 Creation of Subsidiaries..............................................................49
7.17 Partnership Agreements................................................................49
SECTION 8. Events of Default................................................................49
8.01 Payments..............................................................................49
8.02 Representations, etc..................................................................50
8.03 Covenants.............................................................................50
8.04 Default Under Other Agreements........................................................50
8.05 Bankruptcy, etc.......................................................................50
8.06 ERISA.................................................................................51
8.07 Invalidity of Credit Documents........................................................51
8.08 Collateral Documents..................................................................51
8.09 Judgments.............................................................................51
8.10 Remedies Upon Event of Default........................................................51
8.11 Application of Funds..................................................................52
SECTION 9. Definitions......................................................................53
SECTION 10. The Administrative Agent.........................................................72
10.01 Appointment...........................................................................72
10.02 Delegation of Duties..................................................................73
10.03 Liability of the Administrative Agent.................................................73
10.04 Reliance by the Administrative Agent..................................................73
10.05 Notice of Default.....................................................................74
10.06 Credit Decision; Disclosure of Information by the Administrative Agent................74
10.07 Indemnification.......................................................................74
10.08 The Administrative Agent in its Individual Capacity...................................75
10.09 Successor Administrative Agent........................................................75
10.10 Administrative Agent May File Proofs of Claim.........................................76
10.11 Other Agents; Arrangers and Managers..................................................76
SECTION 11. Miscellaneous....................................................................76
11.01 Payment of Expenses and Taxes; Indemnification by the Borrower........................76
11.02 Right of Setoff.......................................................................78
11.03 Notices...............................................................................78
11.04 Benefit of Agreement..................................................................79
11.05 No Waiver; Remedies Cumulative........................................................81
11.06 Payments Pro Rata.....................................................................81
11.07 Payments Set Aside....................................................................82
11.08 Calculations; Computations............................................................82
11.09 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE......................................83
11.10 Counterparts..........................................................................84
11.11 Effectiveness.........................................................................84
11.12 Headings Descriptive..................................................................84
11.13 Amendment or Waiver...................................................................84
11.14 Survival..............................................................................85
11.15 Domicile of Loans.....................................................................85
11.16 Interest Rate Limitations.............................................................85
11.17 Confidentiality.......................................................................86
11.18 WAIVER OF JURY TRIAL..................................................................87
11.19 Severability..........................................................................87
11.20 Entire Agreement......................................................................87
{/TABLE}
iii
{PAGE}
Schedule 1 - List of Banks and Commitments
Schedule 2 - Bank Addresses
Schedule 5.04 - Existing Litigation
Schedule 5.13 - Past Due Tax Returns and Payments
Schedule 5.14 - Pension Plans and Post-Retirement Health Care Obligations
Schedule 5.15 - Subsidiaries
Schedule 5.18 - Collective Bargaining Agreements
Schedule 5.20 - Existing Indebtedness
Schedule 7.03 - Existing Liens
Schedule 7.06 - Existing Investment Commitments
Exhibit A - Form of Notice of Borrowing
Exhibit B-1 - Form of Term Note
Exhibit B-2 - Form of Revolving Note
Exhibit C - Form of Opinion(s) of Counsel to the Credit Parties
Exhibit D - Form of Officer's Certificate
Exhibit E - Form of Section 3.05(e)(ii) Certificate
Exhibit F - Form of Subsidiary Guaranty
Exhibit G - Form of Pledge Agreement
Exhibit H - Form of Security Agreement
Exhibit I - Form of Compliance Certificate
Exhibit J - Form of Assignment and Assumption Agreement
iv
{PAGE}
CREDIT AGREEMENT, dated as of March 31, 2003, among UNIVERSAL
AMERICAN FINANCIAL CORP., a New York corporation (the "Borrower"), the lending
institutions listed from time to time on Schedule 1 hereto (each a "Bank" and,
collectively, the "Banks"), and BANK OF AMERICA, N.A., as Administrative Agent
(the "Administrative Agent") and L/C Issuer (defined herein). Unless otherwise
defined herein, all capitalized terms used herein and defined in Section 9 are
used herein as so defined.
W I T N E S S E T H :
WHEREAS, subject to and upon the terms and conditions set forth
herein, the Banks are willing to make available to the Borrower the credit
facilities provided for herein.
NOW, THEREFORE, IT IS AGREED:
SECTION 1. Amount and Terms of Credit.
1.01 Commitments. Subject to and upon the terms and conditions herein
set forth, each Bank severally agrees to make a loan or loans (each a "Loan"
and, collectively, the "Loans") to the Borrower, which Loans shall be drawn, to
the extent such Bank has a commitment under such Facility, under the Term Loan
Facility and the Revolving Loan Facility, respectively, as set forth below:
(a) Each Loan under the Term Loan Facility (each, a "Term
Loan" and, collectively, the "Term Loans"):
(i) shall be incurred by the Borrower on the
Initial Borrowing Date;
(ii) shall be denominated in Dollars;
(iii) may, except as hereinafter provided, at
the option of the Borrower, be incurred and maintained as,
and/or converted into, Base Rate Loans or Eurodollar
Loans;
(iv) shall not exceed, for any Bank, the Term
Loan Commitment of such Bank; and
(v) once repaid, may not be reborrowed.
(b) Each Loan under the Revolving Loan Facility (each, a
"Revolving Loan" and, collectively, the "Revolving Loans"):
(i) may be incurred by the Borrower at any time
and from time to time on and after the Initial Borrowing
Date but prior to the Revolving Loan Maturity Date;
(ii) shall be denominated in Dollars;
(iii) may, except as hereinafter provided, at
the option of the Borrower, be incurred and maintained as,
and/or converted into, Base Rate Loans or Eurodollar
Loans, provided that all Revolving Loans incurred as part
of the same Borrowing shall, unless otherwise specifically
provided herein, consist of Revolving Loans of the same
Type;
(iv) may be repaid and reborrowed in accordance
with the provisions hereof; and
1
{PAGE}
(v) shall not exceed, for any Bank, a principal
amount which, when added to the Outstanding Amount of all
other Revolving Loans made by such Bank plus such Bank's
pro rata share of the Outstanding Amount of all L/C
Obligations, equals the Revolving Loan Commitment of such
Bank.
1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.
The aggregate principal amount of each Borrowing hereunder shall not be less
than $1,000,000 and, if in excess thereof, shall be in an integral multiple of
$500,000; provided, however, that a Borrowing of Revolving Loans constituting
Base Rate Loans may be equal to the Total Unutilized Revolving Loan Commitment.
More than one Borrowing may be incurred on any day; provided that at no time
shall there be outstanding more than three Borrowings of Term Loans that are
Eurodollar Loans and five Borrowings of Revolving Loans that are Eurodollar
Loans.
1.03 Notice of Borrowing.
(a) Whenever the Borrower desires to incur Loans under any
Facility, it shall give the Administrative Agent at its Notice
Office, prior to 12:00 Noon (New York time), at least three Business
Days' prior written notice (or telephonic notice promptly confirmed
in writing) of each Borrowing of Eurodollar Loans and at least one
Business Day's prior written notice (or telephonic notice promptly
confirmed in writing) of each Borrowing of Base Rate Loans to be
incurred hereunder. Each such notice (each, a "Notice of Borrowing")
shall, except as expressly provided in Section 1.11, be irrevocable,
and, in the case of each written notice and each written confirmation
of telephonic notice, shall be substantially in the form of Exhibit A
hereto, appropriately completed to specify (i) the Facility pursuant
to which such Borrowing is to be made, (ii) the aggregate principal
amount of the Loans to be made pursuant to such Borrowing, (iii) the
date of such Borrowing (which shall be a Business Day) and (iv)
whether such Borrowing shall consist of Base Rate Loans or Eurodollar
Loans and, if Eurodollar Loans, the Interest Period to be initially
applicable thereto. The Administrative Agent shall promptly give each
Bank which has a Commitment under the Facility specified in the
relevant Notice of Borrowing written notice (or telephonic notice
promptly confirmed in writing) of each proposed Borrowing, of such
Bank's proportionate share thereof and of the other matters covered
by the relevant Notice of Borrowing.
(b) Without in any way limiting the obligation of the
Borrower to confirm in writing any notice it may give hereunder by
telephone, the Administrative Agent may act prior to receipt of
written confirmation without liability upon the basis of such
telephonic notice, believed by the Administrative Agent in good faith
to be from an Authorized Officer of the Borrower.
1.04 Disbursement of Funds.
(a) Subject to the terms and conditions herein set forth,
no later than 11:00 A.M. (New York time) on the date specified in
each Notice of Borrowing, each Bank with a Commitment under the
relevant Facility will make available its pro rata share of each
Borrowing requested to be made on such date in the manner provided
below. All amounts shall be made available to the Administrative
Agent in immediately available funds, denominated in Dollars, at the
Payment Office and the Administrative Agent will promptly make
available to the Borrower by depositing to the Borrower's account at
the Payment Office or such other account as the Borrower may
designate, the amounts so made available in immediately available
funds, denominated in Dollars. Unless the Administrative Agent shall
have been notified by any Bank prior to the date of Borrowing that
such Bank does not intend to make available to the Administrative
Agent its portion of the Borrowing or Borrowings to be made on such
date, the Administrative Agent may assume that such Bank has made
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