AMENDMENT NO. 6
TO
RECEIVABLES PURCHASE AGREEMENT
THIS AMENDMENT NO. 6 TO RECEIVABLES PURCHASE AGREEMENT (the
"Amendment") dated as of September 11, 1998 is entered into by and among APR
FUNDING CORPORATION, a Delaware corporation ("Seller"), UNIVERSAL PREMIUM
ACCEPTANCE CORPORATION, a Missouri corporation, individually ("UPAC") and as
Servicer (in such capacity, the "Servicer"), TRANSFINANCIAL HOLDINGS, INC.
(formerly known as Anuhco, Inc.), a Delaware corporation (the "Parent"),
EAGLEFUNDING CAPITAL CORPORATION, a Delaware corporation ("Purchaser"), and
BANKBOSTON, N.A. (formerly known as THE FIRST NATIONAL BANK OF BOSTON) (as
"Agent", as "Custodian" and in its individual capacity). Capitalized terms used
herein and not otherwise defined herein shall have the meanings ascribed to such
terms in Appendix A to the "Agreement" (as defined below).
W I T N E S S E T H:
WHEREAS, the Seller, UPAC, the Servicer, the Parent, the Purchaser and
the Agent have entered into that certain Receivables Purchase Agreement dated as
of December 31, 1996 (as the same shall have been amended through the date
hereof, the "Agreement"; the terms defined therein being used herein as therein
defined unless otherwise defined herein), pursuant to which, among other things,
the Seller has agreed to sell to the Purchaser, and the Purchaser has agreed to
purchase from the Seller, undivided percentage interests in the Seller's
Receivables; and
WHEREAS, the parties hereto have agreed to modify certain terms and
provisions of the Agreement as set forth herein;
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
SECTION 1. AMENDMENTS TO THE AGREEMENT. Effective as of the first
date on which each of the conditions set forth in Section 2 hereof shall have
been satisfied, the Agreement is amended as follows:
(a) Section 1.01 of the Agreement is hereby amended to delete the
amount "$65,000,000" and to substitute therefor "$85,000,000".
(b) Section 7.09(a) of the Agreement is hereby amended to delete the
amount "$50,000,000" and to substitute therefor "$40,000,000".
(c) The definition of "Excess Concentration Deduction" in Appendix A
of the Agreement is hereby amended as follows:
(1) Clause (C) of such definition is amended to reduce the
Concentration Limits for each of The Lockton Companies and Wycon Corp. from
10.0% to 5.0%.
(2) Clause (E) of such definition is amended to reduce the
Concentration Limit for Workers compensation policies from 30.0% to 20.0%.
(3) Clause (F) of such definition is amended to increase the
Concentration Limit for Loan Term "B" from 5.0% to 10.0%.
(4) Clause (I) of such definition is amended in its entirety to read
as follows:
(I) Certain Insurance Obligors in the
Aggregate. The amount by which (x) the aggregate
unpaid principal balance of all Eligible
Receivables having Insurance Obligors which either
(1) have a Best's Rating of B- or lower, or (2)
are not otherwise described in any of clauses 1
through 3 of Section (A) of this definition,
exceeds (y) an amount equal to 5.0% of the unpaid
principal balance of all Eligible Receivables.
(5) The definition of "Excess Concentration Deduction" in Appendix A
of the Agreement is hereby further amended to add the following Section (J)
thereto:
(J) Certain Loan Term "B" Obligors. The amount by which
(x) the unpaid principal balance of Eligible Receivables for
policies that have been originated under Loan Term "B" and which
either (1) have a Best's Rating of lower than B-, or (2) are not
otherwise described in any of clauses 1 through 3 of Section (A)
of this definition, exceeds (y) an amount equal to 1.0% of the
unpaid principal balance of all Eligible Receivables.
(d) The definition of "Scheduled Termination Date" in Appendix A of
the Agreement is hereby amended to delete the date "December 30, 1999" and to
substitute therefor "December 30, 2001".
SECTION 2. CONDITIONS PRECEDENT. This Amendment shall become
effective upon the satisfaction of the following conditions precedent:
(a) The Agent shall have received:
(i) eight fully executed copies of this Amendment; and
(ii) such other further documents and information
as the Agent shall reasonably request.
(b) No event or condition has occurred and is continuing, or would
result from the execution, delivery or performance of this Amendment, which
would constitute a Liquidation Event or Unmatured Liquidation Event;
(c) The Purchaser shall have obtained confirmation from each of the
three rating agencies rating the Commercial Paper Notes that the amendments
herein, the amendments to the Liquidity Agreement of even date herewith and
the addition of Lloyds Bank Plc as a Liquidity Bank will not result in a
withdrawal or reduction of the ratings of the Commercial Paper Notes;
(d) All of the fees and expenses referred to in Section 9 below and
any other fees and expenses owing under Section 14.05 of the Agreement or any
other agreement between the parties thereto shall have been paid in full; and
(e) The conditions precedent to the effectiveness of that certain
Amendment No. 3 to the Liquidity Agreement of even date herewith shall have been
fully satisfied.
(f) The conditions precedent to the effectiveness of that certain
Assignment and Acceptance between BankBoston, N.A. and Lloyds Bank Plc of even
date herewith and related to the Liquidity Agreement shall have been fully
satisfied.
SECTION 3. REPRESENTATIONS, WARRANTIES AND COVENANTS.
Upon the effectiveness of this Amendment, each of the Seller, UPAC,
the Servicer and the Parent, hereby remakes and reaffirms all covenants,
representations and warranties made by it (or deemed made by it) in the
Agreement, the Backup Servicing Agreement, the Custody Agreement and the Parent
Support Agreement (except, in each case, to the extent that such covenants,
representations or warranties expressly speak as to another date).
SECTION 4. CONSENT AND REAFFIRMATION. The Parent, by its execution
hereof, hereby (i) consents to the execution, delivery and performance of the
Amendment by all of the parties hereto and (ii) reaffirms all of its obligations
and liabilities under that certain Parent Support Agreement dated as of December
31, 1996 executed by the Parent in favor of the Seller and its successors and
assigns, which obligations and liabilities shall remain in full force and
effect.
SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS DISTINGUISHED FROM THE
CONFLICT OF LAW PROVISIONS) OF THE STATE OF NEW YORK.
SECTION 6. SEVERABILITY. Each provision of this Amendment shall be
severable from every other provision of this Amendment for the purpose of
determining the legal enforceability of any provision hereof, and the
unenforceability of any provision hereof in one jurisdiction shall not have the
effect of rendering such provision or provisions unenforceable in any other
jurisdiction.
SECTION 7. REFERENCE TO AND EFFECT ON THE AGREEMENT. Upon the
effectiveness of this Amendment, each reference in the Agreement to "this
Agreement", "hereunder", "hereof", "herein" or words of like import shall mean
and be, and references to the Agreement in any other document, instrument or
agreement executed and/or delivered in connection with the Agreement shall mean
and be, a reference to the Agreement as previously amended and as amended
hereby. Except as otherwise amended by this Amendment, the Agreement as
previously amended shall continue in full force and effect and is hereby
ratified and confirmed.
SECTION 8. COUNTERPARTS. This Amendment may be executed in one or
more counterparts, each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument.
SECTION 9. FEES AND EXPENSES. The Seller
hereby confirms its agreement to pay on demand all reasonable costs and expenses
in connection with the preparation, execution and delivery of this Amendment and
any of the other instruments, documents and agreements to be executed and/or
delivered in connection herewith, including, without limitation, the reasonable
fees and out-of-pocket expenses of counsel to the Agent with respect thereto.
[Amendment No. 6 Signature Page]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed as of the date first above written.
APR FUNDING CORPORATION,
as Seller
By
Title
UNIVERSAL PREMIUM ACCEPTANCE CORPORATION,
individually and
as initial Servicer
By
Title
TRANSFINANCIAL HOLDINGS, INC.
(formerly known as Anuhco, Inc.)
as Parent
By
Title:
EAGLEFUNDING CAPITAL CORPORATION,
as Purchaser
By: BANKBOSTON, N.A.(formerly known as The
First National Bank of Boston) as its
attorney-in-fact
By
Title
BANKBOSTON, N.A.(formerly known as THE FIRST
NATIONAL BANK OF BOSTON), as Agent
By
Title
[Amendment No. 6 Signature
Page]
Acknowledged and agreed to
as of this day of September, 1998 in
accordance with Section 5.03 of that
certain Liquidity Agreement dated as of
December 31, 1996, as amended, among the
Purchaser, the financial institutions from
time to time parties thereto (the "Liquidity
Providers"), BankBoston, N.A.(formerly
known as The First National Bank of Boston),
as liquidity agent (the "Liquidity
Agent") and Bankers Trust Company, as
collateral agent (the "Collateral Agent")
BANKBOSTON, N.A. (formerly known as THE
FIRST NATIONAL BANK OF BOSTON), as a
Liquidity Provider
By
Title
HARRIS TRUST AND SAVINGS BANK,
as a Liquidity Provider
By
Title
LLOYDS BANK PLC, as a Liquidity Provider
By
Title