as Borrower,
as Guarantors,
as Administrative Agent, Lead Arranger and Collateral Agent,
CITIBANK, N.A. and
UBS SECURITIES LLC
as Co-Syndication Agents,
as Documentation Agent
RAYMOND JAMES BANK, FSB,
AMEGY BANK NATIONAL ASSOCIATION
and U.S. BANK, N.A.
as Senior Managing Agents
Page | ||||||
SECTION 1. | DEFINITIONS AND INTERPRETATION | 2 | ||||
1.1 | Definitions | 2 | ||||
1.2 | Accounting Terms | 36 | ||||
1.3 | Interpretation, etc | 36 | ||||
SECTION 2. | LOANS AND LETTERS OF CREDIT | 37 | ||||
2.1 | Term Loans | 37 | ||||
2.2 | Revolving Loans | 37 | ||||
2.3 | Swing Line Loans | 38 | ||||
2.4 | Issuance of Letters of Credit and Purchase of Participations Therein | 41 | ||||
2.5 | Pro Rata Shares; Availability of Funds | 45 | ||||
2.6 | Use of Proceeds | 46 | ||||
2.7 | Evidence of Debt; Register; Lenders’ Books and Records; Notes | 46 | ||||
2.8 | Interest on Loans | 47 | ||||
2.9 | Conversion/Continuation | 49 | ||||
2.10 | Default Interest | 49 | ||||
2.11 | Fees | 50 | ||||
2.12 | Scheduled Payments/Commitment Reductions | 51 | ||||
2.13 | Voluntary Prepayments/Commitment Reductions | 52 | ||||
2.14 | Mandatory Prepayments/Commitment Reductions | 53 | ||||
2.15 | Application of Prepayments/Reductions | 55 | ||||
2.16 | General Provisions Regarding Payments | 56 | ||||
2.17 | Ratable Sharing | 57 | ||||
2.18 | Making or Maintaining Eurodollar Rate Loans | 58 | ||||
2.19 | Increased Costs; Capital Adequacy | 60 | ||||
2.20 | Taxes; Withholding, etc. | 61 | ||||
2.21 | Obligation to Mitigate | 63 | ||||
2.22 | Defaulting Lenders | 63 | ||||
2.23 | Removal or Replacement of a Lender | 64 | ||||
SECTION 3. | CONDITIONS PRECEDENT | 65 | ||||
3.1 | Closing Date | 65 | ||||
3.2 | Conditions to Each Credit Extension | 70 | ||||
SECTION 4. | REPRESENTATIONS AND WARRANTIES | 71 | ||||
4.1 | Organization; Requisite Power and Authority; Qualification | 71 | ||||
4.2 | Equity Interests and Ownership; HMO Subsidiaries | 71 | ||||
4.3 | Due Authorization | 72 | ||||
4.4 | No Conflict | 72 | ||||
4.5 | Governmental Consents | 72 | ||||
4.6 | Binding Obligation | 72 |
i
Page | ||||||
4.7 | Historical Financial Statements | 73 | ||||
4.8 | Projections | 73 | ||||
4.9 | No Material Adverse Change | 73 | ||||
4.10 | No Restricted Junior Payments | 73 | ||||
4.11 | Adverse Proceedings, etc | 73 | ||||
4.12 | Payment of Taxes | 74 | ||||
4.13 | Properties | 74 | ||||
4.14 | Environmental Matters | 74 | ||||
4.15 | No Defaults | 75 | ||||
4.16 | Material Contracts | 75 | ||||
4.17 | Governmental Regulation | 75 | ||||
4.18 | Margin Stock | 75 | ||||
4.19 | Employee Matters | 75 | ||||
4.20 | Employee Benefit Plans | 76 | ||||
4.21 | Certain Fees | 76 | ||||
4.22 | Solvency | 76 | ||||
4.23 | Related Agreements | 76 | ||||
4.24 | Compliance with Statutes, etc | 77 | ||||
4.25 | Disclosure | 78 | ||||
4.26 | Anti-Terrorism Laws, Foreign Corrupt Practices Act, etc. | 78 | ||||
4.27 | Fraud and Abuse | 79 | ||||
SECTION 5. | AFFIRMATIVE COVENANTS | 79 | ||||
5.1 | Financial Statements and Other Reports | 79 | ||||
5.2 | Existence; Licensing | 84 | ||||
5.3 | Payment of Taxes and Claims | 84 | ||||
5.4 | Maintenance of Properties | 85 | ||||
5.5 | Insurance | 85 | ||||
5.6 | Books and Records; Inspections | 85 | ||||
5.7 | Lender Meetings | 86 | ||||
5.8 | Compliance with Laws | 86 | ||||
5.9 | Environmental | 86 | ||||
5.10 | Subsidiaries | 88 | ||||
5.11 | Additional Material Real Estate Assets | 88 | ||||
5.12 | Interest Rate Protection | 90 | ||||
5.13 | Further Assurances | 90 | ||||
5.14 | Maintenance of Ratings | 90 | ||||
5.15 | Post-Closing Actions | 90 | ||||
SECTION 6. | NEGATIVE COVENANTS | 91 | ||||
6.1 | Indebtedness | 91 | ||||
6.2 | Liens | 94 | ||||
6.3 | No Further Negative Pledges | 96 | ||||
6.4 | Restricted Junior Payments | 96 | ||||
6.5 | Restrictions on Subsidiary Distributions | 98 | ||||
6.6 | Investments | 99 | ||||
6.7 | Financial Covenants | 100 |
ii
Page | ||||||
6.8 | Fundamental Changes; Disposition of Assets; Acquisitions | 102 | ||||
6.9 | Disposal of Subsidiary Interests | 103 | ||||
6.10 | Sales and Lease Backs | 103 | ||||
6.11 | Transactions with Shareholders and Affiliates | 103 | ||||
6.12 | Conduct of Business | 104 | ||||
6.13 | Amendments or Waivers of Organizational Documents and Certain Related Agreements | 104 | ||||
6.14 | Amendments or Waivers of with respect to Certain Indebtedness | 104 | ||||
6.15 | Fiscal Year | 104 | ||||
6.16 | Anti-Terrorism Law; Anti-Money Laundering | 104 | ||||
6.17 | Embargoed Person | 105 | ||||
SECTION 7. | GUARANTY | 105 | ||||
7.1 | Guaranty of the Obligations | 105 | ||||
7.2 | Contribution by Guarantors | 105 | ||||
7.3 | Payment by Guarantors | 106 | ||||
7.4 | Liability of Guarantors Absolute | 106 | ||||
7.5 | Waivers by Guarantors | 108 | ||||
7.6 | Guarantors’ Rights of Subrogation, Contribution, etc | 109 | ||||
7.7 | Subordination of Other Obligations | 110 | ||||
7.8 | Continuing Guaranty | 110 | ||||
7.9 | Authority of Guarantors or Borrower | 110 | ||||
7.10 | Financial Condition of Borrower | 110 | ||||
7.11 | Bankruptcy, etc | 110 | ||||
7.12 | Discharge of Guaranty Upon Sale of Guarantor | 111 | ||||
SECTION 8. | EVENTS OF DEFAULT | 111 | ||||
8.1 | Events of Default | 111 | ||||
SECTION 9. | AGENTS | 115 | ||||
9.1 | Appointment of Agents | 115 | ||||
9.2 | Powers and Duties | 115 | ||||
9.3 | General Immunity | 115 | ||||
9.4 | Agents Entitled to Act as Lender | 117 | ||||
9.5 | Lenders’ Representations, Warranties and Acknowledgment | 117 | ||||
9.6 | Right to Indemnity | 117 | ||||
9.7 | Successor Administrative Agent, Collateral Agent and Swing Line Lender | 118 | ||||
9.8 | Collateral Documents and Guaranty | 120 | ||||
9.9 | Withholding Taxes | 121 | ||||
SECTION 10. | MISCELLANEOUS | 121 | ||||
10.1 | Notices | 121 | ||||
10.2 | Expenses | 122 | ||||
10.3 | Indemnity | 123 | ||||
10.4 | Set-Off | 124 | ||||
10.5 | Amendments and Waivers | 124 | ||||
10.6 | Successors and Assigns; Participations | 126 |
iii
Page | ||||||
10.7 | Independence of Covenants | 130 | ||||
10.8 | Survival of Representations, Warranties and Agreements | 130 | ||||
10.9 | No Waiver; Remedies Cumulative | 130 | ||||
10.10 | Marshalling; Payments Set Aside | 130 | ||||
10.11 | Severability | 130 | ||||
10.12 | Obligations Several; Independent Nature of Lenders’ Rights | 130 | ||||
10.13 | Headings | 131 | ||||
10.14 | APPLICABLE LAW | 131 | ||||
10.15 | CONSENT TO JURISDICTION | 131 | ||||
10.16 | WAIVER OF JURY TRIAL | 131 | ||||
10.17 | Confidentiality | 132 | ||||
10.18 | Usury Savings Clause | 133 | ||||
10.19 | Counterparts | 133 | ||||
10.20 | Effectiveness | 134 | ||||
10.21 | Patriot Act | 134 | ||||
10.22 | Electronic Execution of Assignments | 134 | ||||
10.23 | No Fiduciary Duty | 134 | ||||
10.24 | Lender Action | 134 |
iv
APPENDICES: | A-1 | Term Loan Commitments | ||||
A-2 | Revolving Commitments | |||||
B | Notice Addresses | |||||
SCHEDULES: | 4.1 | Jurisdictions of Organization | ||||
4.2 | Equity Interests and Ownership; HMO Subsidiaries | |||||
4.5 | Government Consents | |||||
4.13 | Material Real Estate Assets | |||||
4.16 | Material Contracts | |||||
5.15 | Post-Closing Actions | |||||
6.1 | Certain Indebtedness | |||||
6.2 | Certain Liens | |||||
6.3 | Negative Pledges | |||||
6.5 | Certain Restrictions on Subsidiary Distributions | |||||
6.6 | Certain Investments | |||||
6.11 | Certain Affiliate Transactions | |||||
EXHIBITS: | A-1 | Funding Notice | ||||
A-2 | Conversion/Continuation Notice | |||||
A-3 | Issuance Notice | |||||
B-1 | Term Loan Note | |||||
B-2 | Revolving Loan Note | |||||
B-3 | Swing Line Note | |||||
C | Compliance Certificate | |||||
D-1 | Opinion of Bass, Berry & Sims PLC | |||||
D-2 | Opinion of General Counsel of Borrower | |||||
E | Assignment Agreement | |||||
F | Certificate Re Non-bank Status | |||||
G-1 | Closing Date Certificate | |||||
G-2 | Solvency Certificate | |||||
H | Counterpart Agreement | |||||
I | Pledge and Security Agreement | |||||
J | Mortgage | |||||
K | Landlord Waiver and Consent Agreement | |||||
L | Intercompany Note |
v
2
3
Applicable | ||||||||
Revolving | ||||||||
Applicable Margin for | Commitment Fee | |||||||
Leverage Ratio | Term Loans and Revolving Loans | Percentage | ||||||
> 1.00:1.00 | 2.50 | % | 0.500 | % | ||||
< 1.00:1.00 and > 0.75:1.00 | 2.25 | % | 0.375 | % | ||||
< 0.75:1.00 | 2.00 | % | 0.250 | % |
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Installment Date | Principal Amount | |||
December 31, 2007 | $ | 3,750,000.00 | ||
March 31, 2008 | $ | 3,750,000.00 | ||
June 30, 2008 | $ | 3,750,000.00 | ||
September 30, 2008 | $ | 3,750,000.00 | ||
December 31, 2008 | $ | 7,500,000.00 | ||
March 31, 2009 | $ | 7,500,000.00 | ||
June 30, 2009 | $ | 7,500,000.00 | ||
September 30, 2009 | $ | 7,500,000.00 | ||
December 31, 2009 | $ | 7,500,000.00 | ||
March 31, 2010 | $ | 7,500,000.00 | ||
June 30, 2010 | $ | 7,500,000.00 | ||
September 30, 2010 | $ | 7,500,000.00 | ||
December 31, 2010 | $ | 11,250,000.00 | ||
March 31, 2011 | $ | 11,250,000.00 | ||
June 30, 2011 | $ | 11,250,000.00 | ||
September 30, 2011 | $ | 11,250,000.00 | ||
December 31, 2011 | $ | 45,000,000.00 | ||
March 31, 2012 | $ | 45,000,000.00 | ||
June 30, 2012 | $ | 45,000,000.00 | ||
Term Loan Maturity Date | $ | 45,000,000.00 |
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
Fiscal | ||
Quarter Ending | Leverage Ratio | |
March 31, 2008 | 1.75:1.00 | |
June 30, 2008 | 1.75:1.00 | |
September 30, 2008 | 1.50:1.00 | |
December 31, 2008 | 1.50:1.00 | |
March 31, 2009 | 1.50:1.00 | |
June 30, 2009 | 1.25:1.00 | |
September 30, 2009 | 1.25:1.00 | |
December 31, 2009 | 1.25:1.00 | |
Thereafter | 1.00:1.00 |
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
HEALTHSPRING, INC. | ||||
By: | /s/ Kevin M. McNamara | |||
Name: | Kevin M. McNamara | |||
Title: | Executive Vice President, Chief Financial Officer, and Treasurer |
136
SERVICES, INC.
ALABAMA, LLC
FLORIDA, LLC
ILLINOIS, LLC
By: | /s/ Kevin M. McNamara | |||
Name: | Kevin M. McNamara | |||
Title: | Executive Vice President, Chief Financial Officer, and Treasurer |
137
GOLDMAN SACHS CREDIT PARTNERS L.P., as Administrative Agent, Collateral Agent, Lead Arranger and a Lender | ||||
By: | /s/ Walter A. Jackson | |||
Authorized Signatory | ||||
138
BANK OF AMERICA, N.A. as Co-Syndication Agent and a Lender | ||||
By: | /s/ Suzanne B. Smith | |||
Name: | Suzanne B. Smith | |||
Title: | Senior Vice President |
139
CITIBANK, N.A., as Co-Syndication Agent, Issuing Bank, Swing Line Lender and a Lender | ||||
By: | /s/ Sarah Willett | |||
Name: | Sarah Willett | |||
Title: | Vice President |
140
UBS SECURITIES LLC as Co-Syndication Agent | ||||
By: | /s/ Mary E. Evans | |||
Name: | Mary E. Evans | |||
Title: | Associate Director | |||
By: | /s/ Marie Haddand | |||
Name: | Marie Haddad | |||
Title: | Associate Director |
141
WACHOVIA BANK, N.A., a Lender | ||||
By: | /s/ Bradford Vieira | |||
Name: | Bradford Vieira | |||
Title: | Vice President |
142
FIFTH THIRD BANK, as a Lender | ||||
By: | /s/ John Stringfield | |||
Name: | John Stringfield | |||
Title: | Vice President |
143
RAYMOND JAMES BANK, FSB, as a Lender | ||||
By: | /s/ Steven F. Paley | |||
Name: | Steven F. Paley | |||
Title: | Vice President |
144
AMEGY BANK NATIONAL ASSOCIATION, as a Lender | ||||
By: | /s/ Howard Schram | |||
Name: | Howard Schram | |||
Title: | Senior Vice President |
145
U.S. BANK, NA., as a Lender | ||||
By: | /s/ Thomas A. Heckman | |||
Name: | Thomas A. Heckman | |||
Title: | Vice President |
146
FIRST TENNESSEE BANK, NA as a Lender | ||||
By: | /s/ Kenneth H. Barbarich | |||
Name: | Kenneth H. Barbarich | |||
Title: | Senior Vice President |
147
LASALLE BANK NATIONAL ASSOCIATION, as a Lender | ||||
By: | /s/ Kristen L. Heron | |||
Name: | Kristen L. Heron | |||
Title: | Vice President |
148
REGIONS BANK, as a Lender | ||||
By: | /s/ Steven Bosshardt, on behalf of Craig Gardella | |||
Name: | Steven Bosshardt, on behalf of Craig Gardella | |||
Title: | Banking Officer |
149
SUNTRUST BANK, as a Lender | ||||
By: | /s/ John W. Teasley | |||
Name: | John W. Teasley | |||
Title: | Director |
150
UBS Loan Finance LLC, as a Lender | ||||
By: | /s/ Mary E. Evans | |||
Name: | Mary E. Evans | |||
Title: | Associate Director | |||
By: | /s/ Irja R. Otsa | |||
Name: | Irja R. Otsa | |||
Title: | Associate Director |
151
TO CREDIT AND GUARANTY AGREEMENT
Pro | ||||||||
Lender | Term Loan Commitment | Rata Share | ||||||
Goldman Sachs Credit Partners L.P. | $ | 22,500,000 | 7.50 | % | ||||
Citibank, N.A. | $ | 30,000,000 | 10.0 | % | ||||
UBS Loan Finance LLC | $ | 22,500,000 | 7.50 | % | ||||
Bank of America, N.A. | $ | 26,250,000 | 8.75 | % | ||||
Wachovia Bank, N.A. | $ | 30,000,000 | 10.0 | % | ||||
Fifth Third Bank | $ | 30,000,000 | 10.0 | % | ||||
Raymond James Bank, FSB | $ | 30,000,000 | 10.0 | % | ||||
Amegy Bank National Association | $ | 22,500,000 | 7.50 | % | ||||
U.S. Bank, N.A. | $ | 22,500,000 | 7.50 | % | ||||
SunTrust Bank | $ | 18,750,000 | 6.25 | % | ||||
LaSalle Bank National Association | $ | 18,750,000 | 6.25 | % | ||||
Regions Bank | $ | 15,000,000 | 5.00 | % | ||||
First Tennessee Bank, N.A. | $ | 11,250,000 | 3.75 | % | ||||
Total | $ | 300,000,000 | 100.0 | % |
APPENDIX A-1-1
TO CREDIT AND GUARANTY AGREEMENT
Pro | ||||||||
Lender | Revolving Commitment | Rata Share | ||||||
Goldman Sachs Credit Partners L.P. | $ | 7,500,000 | 7.50 | % | ||||
Citibank, N.A. | $ | 10,000,000 | 10.0 | % | ||||
UBS Loan Finance LLC | $ | 7,500,000 | 7.50 | % | ||||
Bank of America, N.A. | $ | 8,750,000 | 8.75 | % | ||||
Wachovia Bank, N.A. | $ | 10,000,000 | 10.0 | % | ||||
Fifth Third Bank | $ | 10,000,000 | 10.0 | % | ||||
Raymond James Bank, FSB | $ | 10,000,000 | 10.0 | % | ||||
Amegy Bank National Association | $ | 7,500,000 | 7.50 | % | ||||
U.S. Bank, N.A. | $ | 7,500,000 | 7.50 | % | ||||
SunTrust Bank | $ | 6,250,000 | 6.25 | % | ||||
LaSalle Bank National Association | $ | 6,250,000 | 6.25 | % | ||||
Regions Bank | $ | 5,000,000 | 5.00 | % | ||||
First Tennessee Bank, N.A. | $ | 3,750,000 | 3.75 | % | ||||
Total | $ | 100,000,000 | 100.0 | % |
APPENDIX A-2-1
TO CREDIT AND GUARANTY AGREEMENT
Suite 501
Franklin, TN 37067
Attention: Chief Financial Officer
Facsimile: (615) 401-4566
315 Deaderick Street, Suite 2700
Nashville, TN 37238
Attention: J. James Jenkins, Jr.
Facsimile: (615) 742-2736
APPENDIX B-1
Principal Office, Administrative Agent, Collateral Agent, Lead Arranger and as a Lender
c/o Goldman, Sachs & Co.
30 Hudson Street, 17th Floor
Jersey City, NJ 07302
Attention: SBD Operations
Attention: Pedro Ramirez
Telecopier: (212) 357-4597
Email and for delivery of final financial statements for posting: gsd.link@gs.com
1 New York Plaza
New York, New York 10004
Attention: Elizabeth Fischer/Rob Schatzman
Telecopier: (212) 902-3000
APPENDIX B-2
as Co-Syndication Agent and a Lender
414, Union St., Nashville, TN 37219
TN1-100-04-17
Attention: 615-749-3818
Facsimile: 615-749-4951
414, Union St., Nashville, TN 37219
TN1-100-04-17
Attention: 615-749-4607
Facsimile: 615-749-4951
APPENDIX B-3
as Co-Syndication Agent, Issuing Bank, Swing Line Lender and a Lender
16th Floor
New York, NY 10043
Attention: Lauren Wendolowski
Facsimile: 212-994-0847
3800 Citibank Center, Bldg. B, 3rd Floor
Tampa, FL 33610
Attention: Standby Letter of Credit Dept.
Facsimile: 1-813-604-7187
Attention: Lauren Wendolowski
Facsimile: 212-994-0847
APPENDIX B-4
as Co-Syndication Agent
Stamford, CT 06901
Facsimile: 203-719-3888
Stamford, CT 06901
Facsimile: 203-719-3888
APPENDIX B-5
as Documentation Agent and a Lender
Nashville, TN 37219
Attention: Bradford Vieira, 615-525-2394
Facsimile: 615-525-2399
APPENDIX B-6
as Senior Managing Agent and a Lender
424 Church Street
Nashville, TN 37221
Facsimile: 615-687-3067
424 Church Street
Nashville, TN 37221
Facsimile: 615-687-3067
APPENDIX B-7
as Senior Managing Agent and a Lender
710 Carillon Parkway
St. Petersburg, FL 33716
Attention: Steven F. Paley, VP
Telephone: 727-567-1720
Facsimile: 727-567-8830
APPENDIX B-8
as Senior Managing Agent and a Lender
4400 Post Oak Parkway, Houston, TX 77027
713-232-1434 (t) 713-561-0744
Attention: Dana Chargois
Facsimile: 713-693-7467
APPENDIX B-9
as Senior Managing Agent and a Lender
Nashville, TN 37219
615-251-9214
Attention: Thomas A. Heckman
Facsimile: 615-251-0729
APPENDIX B-10
as a Lender
511 Union St FL 3
Nashville, TN 37219-1736
Attention: Corey Napier
Facsimile: (615) 734-6117
APPENDIX B-11
as a Lender
Chicago, IL 60603
Attention: Kristen L. Heron
Phone: (312) 992-3873
Facsimile: (312) 904-6457
Chicago, IL 60603
Attention: Bill Verven
Phone: (312) 904-9011
Facsimile: (312) 904-6373
APPENDIX B-12
as a Lender
Nashville, TN 37237
Attention: Craig Gardella
Facsimile: 615-748-8480
APPENDIX B-13
as a Lender
Nashville, TN 37219
(615) 748-4555
Attention: Audrey Soskin
Facsimile: (615) 748-5269
APPENDIX B-14
as a Lender
Stamford, CT 06901
Attention: Brian Gross
Facsimile: 203-719-3888
Stamford, CT 06901
Attention: Frank Luzzi
Facsimile: 203-719-3888
APPENDIX B-15