Document:

Receivables Purchase Agreement

 Exhibit 10.2 
  
 EXECUTION COPY 
  
 AMENDMENT NO. 4 
  
 Dated as of August 28, 2003 
  
 to 
  
 RECEIVABLES PURCHASE
AGREEMENT 
  
 Dated as of December 21, 1999 
  
 THIS AMENDMENT NO. 4 (this “Amendment”) dated as of August 28, 2003
is entered into among: 
  

	 	(i)	AILIC RECEIVABLES CORPORATION, a Delaware corporation (“Seller”), 

  

	 	(ii)	AMERICAN INCOME LIFE INSURANCE COMPANY, an insurance company organized under the laws of Indiana (“AIL”), as the initial Servicer (the Servicer together with the
Seller, the “Seller Parties” and each a “Seller Party”), 

  

	 	(iii)	PREFERRED RECEIVABLES FUNDING CORPORATION, a Delaware corporation (“PREFCO”), 

  

	 	(iv)	certain financial institutions parties hereto as the “Financial Institutions” (and, together with PREFCO, the “Purchasers”), and

  

	 	(v)	BANK ONE, NA (with headquarters in Chicago, Illinois), as agent for the Purchasers (the “Agent”). 

  
 PRELIMINARY STATEMENTS 
  
 A. Reference is made to that certain Receivables Purchase Agreement dated as
of December 21, 1999 as amended and restated as of March 31, 2000 (as the same may have been further amended, restated, supplemented or otherwise modified since such date, the “Receivables Purchase Agreement”) among the Seller, AIL,
PREFCO, certain financial institutions and the Agent. Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in the Receivables Purchase Agreement. 
  

 1 

 B. The parties thereto have agreed to amend the Receivables Purchase Agreement on the terms and
conditions set forth herein. 
  
 NOW, THEREFORE, in consideration
of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller Parties, PREFCO, the Financial Institutions and the Agent hereby agree as follows: 
  
 SECTION 1. Amendment to the Receivables Purchase Agreement. The
Receivables Purchase Agreement is, effective the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, hereby amended to delete in its entirety the definition of “Liquidity Termination
Date” set forth in Exhibit I thereof and to substitute the following new definition therefor: 
  
 “Liquidity Termination Date” means August 27, 2004. 
  
 SECTION 2. Conditions Precedent. This Amendment shall become effective and be deemed effective as of the date hereof
upon receipt by the Agent of 
  
 (i) counterparts
of this Amendment executed by each of the Seller Parties, the Purchasers and the Agent; and 
  
 (ii) a reaffirmation of guaranty executed by Torchmark, substantially in the form of Exhibit A hereto; 
  
 SECTION 3. Covenants, Representations and Warranties of the Seller
Parties. 
  
 3.l Upon the effectiveness of this Amendment,
each of the Seller Parties hereby reaffirms all covenants, representations and warranties made by it in the Receivables Purchase Agreement and agrees that all such covenants, representations and warranties shall be deemed to have been re-made as of
the effective date of this Amendment. 
  
 3.2 Each of the Seller
Parties hereby represents and warrants to the Purchasers and the Agent that: (a) this Amendment has been duly authorized by proper corporate proceedings of each Seller Party and constitutes the legal, valid and binding obligation of such Person,
enforceable against it in accordance with its terms, and (b) after giving effect to the amendment contained herein, no Amortization Event or Potential Amortization Event exists or will result from the execution of this Amendment. 
  

 2 

 SECTION 4. Reference to and Effect on the Receivables Purchase Agreement. 
  
 4.l Upon the effectiveness of this Amendment, each reference in the
Receivables Purchase Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Receivables Purchase Agreement, as amended hereby, and each
reference to the Receivables Purchase Agreement in any and all other documents, instruments, agreements, notes, certificates and other writings of every kind and nature shall mean and be a reference to the Receivables Purchase Agreement as amended
hereby. 
  
 4.2 Except as specifically amended above, the
Receivables Purchase Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed. 
  
 4.3 The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of any Purchaser or the Agent under the Receivables Purchase Agreement or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of any provision
contained therein, except as specifically set forth herein. 
  
 4.4 Each party hereto agrees and acknowledges that this Amendment constitutes a “Transaction Document” under and as defined in the Receivables Purchase Agreement. 
  
 SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND
NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS. 
  
 SECTION 6.
Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different 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 but one and the same instrument. Delivery of an executed counterpart of this Amendment by facsimile shall be deemed as effective as delivery of an originally executed counterpart. Any party delivering an executed
counterpart of this Amendment by facsimile will also deliver an original executed counterpart, but the failure of any party to so deliver an original executed counterpart of this Amendment will not affect the validity or effectiveness of this
Amendment. 
  
 SECTION 7. Successors and Assigns. This
Amendment shall be binding upon each of the Seller Parties, the Purchasers and the Agent and their respective successors and assigns, and shall inure to the benefit of each of the Seller Parties, the Purchasers and the Agent. 
  

 3 

 SECTION 8. Headings. Section headings in this Amendment are included herein for convenience of
reference only and shall not constitute a part of this Amendment for any other purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
officers thereunto duly authorized as of the date first above written. 
  

			
	 AILIC RECEIVABLES CORPORATION

		
	By:	 	 /s/ Danny H. Almond

	Name:	 	Danny H. Almond
	Title:	 	Vice President & Controller
		
	Address:	 	3700 South Stonebridge Dr.
	 	 	McKinney, Texas 75070
	FAX:	 	(972) 569-3282
		
	Attention:	 	Danny Almond
	
	AMERICAN INCOME LIFE INSURANCE COMPANY, as Servicer
		
	By:	 	 /s/ Michael J. Klyce

	Name:	 	Michael J. Klyce
	Title:	 	Assistant Treasurer
		
	Address:	 	1200 Wooded Acres
	 	 	Waco, Texas 76710
	FAX:	 	(205) 325-4157
		
	Attention:	 	Michael J. Klyce
	 	 	Vice President and Treasurer

  
 Amendment No.
4 
 dated as of August 28, 2003 
 to Receivables Purchase Agreement 
 dated as of December 21, 1999 

  

			
	PREFERRED RECEIVABLES FUNDING CORPORATION
		
	By:	 	 /s/ Beth M. Provanzana

	Name:	 	Beth M. Provanzana
	Title:	 	Authorized Signatory
		
	Address:	 	c/o Bank One, NA, as Agent
	 	 	Asset Backed Finance
	 	 	Suite IL1-0079, 1-19
	 	 	1 Bank One Plaza
	 	 	Chicago, Illinois 60670-0019
		
	Fax:	 	(312) 732-1844
	
	BANK ONE, NA,
	as a Financial Institution and as Agent
		
	By:	 	 /s/ Beth M. Provanzana

	Name:	 	Beth M. Provanzana
	Title:	 	Director, Capital Markets
		
	Address:	 	Bank One, NA
	 	 	Asset Backed Finance
	 	 	Suite IL1-0079, 1-19
	 	 	1 Bank One Plaza
	 	 	Chicago, Illinois 60670-0019
		
	 Fax:
	 	(312) 732-4487

  
 Amendment No.
4 
 dated as of August 28, 2003 
 to Receivables Purchase Agreement 
 dated as of December 21, 1999 

 Exhibit A 
  
 to 
  
 Amendment No. 4 
  
 Dated as of August 28, 2003 
  
 REAFFIRMATION OF
PERFORMANCE GUARANTY 
  
 The undersigned, TORCHMARK CORPORATION
(“Torchmark”), hereby: 
  
 (a) acknowledges, and
consents to, the execution of that certain Amendment No. 4 dated as of August 28, 2003 to the Receivables Purchase Agreement dated as of December 21, 1999 (as amended, restated, supplemented or otherwise modified from time to time, the
“Receivables Purchase Agreement”) among AILIC RECEIVABLES CORPORATION (“Seller”), AMERICAN INCOME LIFE INSURANCE COMPANY (“AIL”), as the initial Servicer, PREFERRED RECEIVABLES FUNDING CORPORATION (“PREFCO”),
the financial institutions party thereto as “Financial Institutions” and BANK ONE, NA (with headquarters in Chicago, Illinois), as “Agent”; 
  

(b) reaffirms all of its obligations under that certain Performance Guaranty (the “Performance Guaranty”) dated as of December 21, 1999 and
amended and restated as of March 31, 2000 made by Torchmark in favor of the Agent; and 
  
 (c) acknowledges and agrees that such Performance Guaranty remains in full force and effect (including, without limitation, with respect to the “Guaranteed Obligations” and “Obligations” (each as
defined in the Performance Guaranty) after giving effect to the Amendment Documents), and such Performance Guaranty is hereby ratified and confirmed. 
  
 Dated: August 28, 2003 
  

			
	TORCHMARK CORPORATION
		
	By:	 	 /s/ Michael J. Klyce

	Name:	 	Michael J. Klyce
	Title:	 	Vice President & TreasurerReceivables Purchase Agreement

 Exhibit 10.3 
  
 EXECUTION COPY 
  
 AMENDMENT NO. 5 
  
 Dated as of August 27, 2004 
  
 to 
  
 RECEIVABLES PURCHASE
AGREEMENT 
  
 Dated as of December 21, 1999 
  
 THIS AMENDMENT NO. 5 (this “Amendment”) dated as of August 27, 2004
is entered into among: 
  

	 	(i)	AILIC RECEIVABLES CORPORATION, a Delaware corporation (“Seller”), 

  

	 	(ii)	AMERICAN INCOME LIFE INSURANCE COMPANY, an insurance company organized under the laws of Indiana (“AIL”), as the initial Servicer (the Servicer together with the
Seller, the “Seller Parties” and each a “Seller Party”), 

  

	 	(iii)	PREFERRED RECEIVABLES FUNDING CORPORATION, a Delaware corporation (“PREFCO”), 

  

	 	(iv)	certain financial institutions parties hereto as the “Financial Institutions” (and, together with PREFCO, the “Purchasers”), and

  

	 	(v)	BANK ONE, NA (with headquarters in Chicago, Illinois), as agent for the Purchasers (the “Agent”). 

  
 PRELIMINARY STATEMENTS 
  
 A. Reference is made to that certain Receivables Purchase Agreement dated as
of December 21, 1999 as amended and restated as of March 31, 2000 (as the same may have been further amended, restated, supplemented or otherwise modified since such date, the “Receivables Purchase Agreement”) among the Seller, AIL,
PREFCO, certain financial institutions and the Agent. Unless defined elsewhere herein, capitalized terms used in this Agreement shall have the meanings assigned to such terms in the Receivables Purchase Agreement. 
  

 1 

 B. The parties thereto have agreed to amend the Receivables Purchase Agreement on the terms and
conditions set forth herein. 
  
 NOW, THEREFORE, in consideration
of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Seller Parties, PREFCO, the Financial Institutions and the Agent hereby agree as follows: 
  
 SECTION 1. Amendments to the Receivables Purchase Agreement. The
Receivables Purchase Agreement is, effective the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 hereof, hereby amended to 
  
 1.1 Delete in their entirety the definitions of “Commitment Availability”, “Liquidity Termination
Date” and “Purchase Limit” set forth in Exhibit I thereof and to substitute the following new definitions therefor: 
  
 “Commitment Availability” means at any time the positive difference (if any) between (a) $95,000,000 minus (b) the
aggregate Capital at such time. 
  
 “Liquidity Termination Date” means August 26, 2005. 
  
 “Purchase Limit” means $95,000,000. 
  
 1.2 Delete in its entirety the table set forth in Schedule A thereof and to substitute the following new table therefor: 
  

				
	 Financial Institution

	  	Commitment

	 BANK ONE, NA
	  	$	96,900,000.00

  
 SECTION 2.
Conditions Precedent. This Amendment shall become effective and be deemed effective as of the date hereof upon receipt by the Agent of 
  
 (i) counterparts of this Amendment executed by each of the Seller Parties, the Purchasers and the Agent; and 
  
 (ii) a reaffirmation of guaranty executed by Torchmark,
substantially in the form of Exhibit A hereto; 
  
 SECTION 3.
Covenants, Representations and Warranties of the Seller Parties. 
  
 3.l Upon the effectiveness of this Amendment, each of the Seller Parties hereby reaffirms all covenants, representations and warranties made by it in the 
  

 2 

 Receivables Purchase Agreement and agrees that all such covenants, representations and warranties shall be deemed to have
been re-made as of the effective date of this Amendment. 
  
 3.2
Each of the Seller Parties hereby represents and warrants to the Purchasers and the Agent that: (a) this Amendment has been duly authorized by proper corporate proceedings of each Seller Party and constitutes the legal, valid and binding obligation
of such Person, enforceable against it in accordance with its terms, and (b) after giving effect to the amendment contained herein, no Amortization Event or Potential Amortization Event exists or will result from the execution of this Amendment.

  
 SECTION 4. Reference to and Effect on the Receivables
Purchase Agreement. 
  
 4.l Upon the effectiveness of this
Amendment, each reference in the Receivables Purchase Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import shall mean and be a reference to the Receivables Purchase Agreement,
as amended hereby, and each reference to the Receivables Purchase Agreement in any and all other documents, instruments, agreements, notes, certificates and other writings of every kind and nature shall mean and be a reference to the Receivables
Purchase Agreement as amended hereby. 
  
 4.2 Except as
specifically amended above, the Receivables Purchase Agreement and all other documents, instruments and agreements executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

  
 4.3 The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of any Purchaser or the Agent under the Receivables Purchase Agreement or any other document, instrument or agreement executed in connection therewith, nor constitute a waiver of
any provision contained therein, except as specifically set forth herein. 
  
 4.4 Each party hereto agrees and acknowledges that this Amendment constitutes a “Transaction Document” under and as defined in the Receivables Purchase Agreement. 
  
 SECTION 5. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF ILLINOIS. 
  
 SECTION 6. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different 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 but one and the same instrument. 
  

 3 

 Delivery of an executed counterpart of this Amendment by facsimile shall be deemed as effective as delivery of an
originally executed counterpart. Any party delivering an executed counterpart of this Amendment by facsimile will also deliver an original executed counterpart, but the failure of any party to so deliver an original executed counterpart of this
Amendment will not affect the validity or effectiveness of this Amendment. 
  
 SECTION 7. Successors and Assigns. This Amendment shall be binding upon each of the Seller Parties, the Purchasers and the Agent and their respective successors and assigns, and shall inure to the benefit of
each of the Seller Parties, the Purchasers and the Agent. 
  
 SECTION 8. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective
officers thereunto duly authorized as of the date first above written. 
  

			
	 AILIC RECEIVABLES CORPORATION

		
	 By:
	 	 /s/ Danny H. Almond

	 Name:
	 	 Danny H. Almond

	 Title:
	 	 Vice President & Controller

		
	 Address:
	 	 3700 South Stonebridge Dr.

	 	 	 McKinney, Texas 75070

	 	 	 FAX: (972) 569-3282

		
	 Attention:
	 	 Danny Almond

	
	 AMERICAN INCOME LIFE INSURANCE
 COMPANY, as Servicer

		
	 By:
	 	 /s/ Michael J. Klyce

	 Name:
	 	 Michael J. Klyce

	 Title:
	 	 Assistant Treasurer

		
	 Address:
	 	 1200 Wooded Acres

	 	 	 Waco, Texas 76710

	 	 	 FAX: (205) 325-4157

		
	 Attention:
	 	 Michael J. Klyce

	 	 	 Vice President and Treasurer

  
 Amendment No.
5 
 dated as of August 27, 2004 
 to Receivables Purchase Agreement 
 dated as of December 21, 1999 

			
	 PREFERRED RECEIVABLES FUNDING
 CORPORATION

		
	 By:
	 	 /s/ Beth M. Provanzana

	 Name:
	 	 Beth M. Provanzana

	 Title:
	 	 Authorized Signatory

		
	 Address:
	 	 c/o Bank One, NA, as Agent

	 	 	 Asset Backed Finance

	 	 	 Suite IL1-0079, 1-19

	 	 	 1 Bank One Plaza

	 	 	 Chicago, Illinois 60670-0019

		
	 Fax:
	 	 (312) 732-1844

	
	 BANK ONE, NA,

	 as a Financial Institution and as Agent

		
	 By:
	 	 /s/ Beth M. Provanzana

	 Name:
	 	 Beth M. Provanzana

	 Title:
	 	 Vice President

		
	 Address:
	 	 Bank One, NA

	 	 	 Asset Backed Finance

	 	 	 Suite IL1-0079, 1-19

	 	 	 1 Bank One Plaza

	 	 	 Chicago, Illinois 60670-0019

		
	 Fax:
	 	 (312) 732-4487

  
 Amendment No.
5 
 dated as of August 27, 2004 
 to Receivables Purchase Agreement 
 dated as of December 21, 1999 

 Exhibit A 
  
 to 
  
 Amendment No. 5 
  
 Dated as of August 27, 2004 
  
 REAFFIRMATION OF
PERFORMANCE GUARANTY 
  
 The undersigned, TORCHMARK CORPORATION
(“Torchmark”), hereby: 
  
 (a) acknowledges, and
consents to, the execution of that certain Amendment No. 5 dated as of August 27, 2004 to the Receivables Purchase Agreement dated as of December 21, 1999 (as amended, restated, supplemented or otherwise modified from time to time, the
“Receivables Purchase Agreement”) among AILIC RECEIVABLES CORPORATION (“Seller”), AMERICAN INCOME LIFE INSURANCE COMPANY (“AIL”), as the initial Servicer, PREFERRED RECEIVABLES FUNDING CORPORATION (“PREFCO”),
the financial institutions party thereto as “Financial Institutions” and BANK ONE, NA (with headquarters in Chicago, Illinois), as “Agent”; 
  

(b) reaffirms all of its obligations under that certain Performance Guaranty (the “Performance Guaranty”) dated as of December 21, 1999 and
amended and restated as of March 31, 2000 made by Torchmark in favor of the Agent; and 
  
 (c) acknowledges and agrees that such Performance Guaranty remains in full force and effect (including, without limitation, with respect to the “Guaranteed Obligations” and “Obligations” (each as
defined in the Performance Guaranty) after giving effect to the Amendment Documents), and such Performance Guaranty is hereby ratified and confirmed. 
  
 Dated: August 27, 2004 
  

			
	 TORCHMARK CORPORATION

		
	 By:
	 	 /s/ Michael J. Klyce

	 Name:
	 	 Michael J. Klyce

	 Title:
	 	 Vice President & Treasurer

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