Commercial Loan Agreement between Compass Bank and Rules-Based Medicine, Inc.
This agreement is between Compass Bank (the lender) and Rules-Based Medicine, Inc. (the borrower). Compass Bank will provide a revolving line of credit up to $9,000,000, allowing the borrower to borrow, repay, and re-borrow funds as needed. The loan is secured by collateral owned by the borrower, and the borrower must meet certain conditions, such as providing financial information and maintaining the collateral. The agreement outlines the borrower's obligation to repay the loan with interest and fees, and details the lender's rights to the collateral until all obligations are fulfilled.
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LENDER | BORROWER | |||||
COMPASS BANK 5800 North Mopac Austin, Texas 78731 | RULES-BASED MEDICINE, INC. | |||||
ADDRESS | ||||||
3300 Duval Road Austin, Texas 78759 | ||||||
TELEPHONE NO. | IDENTIFICATION NO. | |||||
GRANTOR | OWNER OF COLLATERAL | |||||
RULES-BASED MEDICINE, INC. | ||||||
ADDRESS | ADDRESS | |||||
3300 Duval Road Austin, Texas 78759 | ||||||
TELEPHONE NO. | IDENTIFICATION NO. | TELEPHONE NO. | IDENTIFICATION NO. |
a. | Guaranties. None. | ||
b. | Collateral. |
a. | Superiority of Lenders Lien. The liens, security interests and other encumbrances granted to Lender shall be superior to any other liens, security interests, encumbrances and claims with respect to the Collateral (unless specifically permitted in this Agreement or the Loan Documents). | ||
b. | Guaranties, Liens and Other Encumbrances. The liens, security interests, and other encumbrances described in the Loan Documents shall continue and not be released until all of the indebtedness, liabilities, obligations and covenants guarantied or secured thereby shall have been paid and performed in full, as measured at the time of the requested release by Borrower, and Lender shall not be obligated to provide any additional advances, loans or other financial accommodations to or for the benefit of Borrower (or, if applicable, any of the Debtors) of any kind, whereupon, Lender agrees to promptly execute and deliver to the Borrower, at the Borrowers cost and expense as provided in Paragraph 11, any and all releases of liens, termination statements, assignments, guaranties or other documents reasonably requested by the Borrower as necessary to fully release the Collateral and the Obligations. |
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a. | Evidence of Good Standing. Lender shall be provided with such written evidence of the Borrower and any Guarantors and Debtors legal names and good standing, authorization to conduct business, and authorization to execute and perform their respective Obligations under this Agreement and the Loan Documents as required by Lender; | ||
b. | Execution and Delivery. Borrower shall execute and deliver this Agreement and cause any Guarantors and Debtors to execute and deliver to Lender the Loan Documents; | ||
c. | Authorization. Lender shall be provided with such written evidence as required by Lender that the representatives of the Borrower and any Guarantors and Debtors are authorized to execute this Agreement and the Loan Documents on behalf of those parties and bind the Borrower and any Guarantors and Debtors to the terms and conditions set forth therein; | ||
d. | Liens. Lenders liens, security interests, and other encumbrances upon the Collateral shall be attached, created, filed, perfected and recorded in accordance with applicable law and notice of such liens, security interests and encumbrances shall be provided to such parties as required by Lender; | ||
e. | Lien Searches. Lender shall be provided with UCC searches, title insurance policies, or other written evidence as required by Lender with respect to the validity, enforceability and priority of its liens, security interests and other encumbrances upon the Collateral; | ||
f. | Intentionally Omitted; | ||
g. | Intentionally Omitted; | ||
h. | Financial Information. Borrower shall provide and cause any Guarantors and Debtors to provide Lender with such financial information and business records as required by Lender in its reasonable discretion. Such financial information and business records shall be acceptable to Lender in its reasonable discretion and shall not cause Lender to believe in good faith that the Borrower or any Guarantors or Debtors shall not be able to perform its respective Obligations under this Agreement or the Loan Documents; | ||
i. | Absence of Breach. All the respective representations and warranties of the Borrower or any Guarantor or Debtor under this Agreement or the Loan Documents shall be true and correct on and as of the date of the execution of these documents or date of any initial advances and/or extensions of the loans and/or other financial accommodations described therein; and | ||
j. | Absence of Default. No Default shall have occurred and is continuing under this Agreement or the Loan Documents nor shall any circumstances exist that would constitute an Event of Default except for notice or the passage of time or both on or before the execution of those documents or the advances requested by Borrower and/or extensions of the loans and/or other financial accommodations described therein. |
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:
a. | Tax Identification. The tax identification number of Borrower is as follows: 2515967969. | ||
b. | Borrowers Residency. Borrower is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and authorized to conduct business in the State of Texas and all of the other jurisdictions in which its business is conducted; | ||
c. | Intentionally Omitted; | ||
d. | Debtors Tax Identification and Residency. Debtors are residents of the State(s) of or duly organized, validly existing and in good standing under the laws of the state of their formation and authorized to conduct business in all of the jurisdictions in which their business is conducted. Debtors tax identification and/or social security numbers are those shown in any applicable Loan Documents; | ||
e. | Ownership of Collateral. Borrower and any Debtors are and shall remain sole owners of their respective Collateral free of all tax and other liens, security interests, encumbrances and claims of any kind except as specifically permitted by this Agreement and the Loan Documents and except for dispositions specifically permitted by this Agreement and the Loan Documents; | ||
f. | Location of Offices. The sole executive offices, places of business, offices where their business records are located, residences and domiciles of the Borrower and any Guarantors and Debtors are specifically described in this Agreement and the Loan Documents. Borrower shall immediately advise and cause any Guarantors and Debtors to immediately advise Lender in writing of any change in or addition to the foregoing addresses; | ||
g. | Restructuring. Neither Borrower nor any Guarantor or Debtor shall become a party to any restructuring of its form of business or participate in any consolidation, merger, liquidation or dissolution without obtaining Lenders prior written consent thereto, which will not be unreasonably withheld, delayed or conditioned; | ||
h. | Beneficiaries. Each of the Guarantors and Debtors, if any, by virtue of their interest in or relation to Borrower, shall receive a substantial benefit from Lenders advances, loans and/or other financial accommodations to Borrower and such benefit shall constitute adequate consideration for the obligations assumed by any Guarantor and Debtors under this Agreement and the Loan Documents; | ||
i. | Change of Name. Borrower shall provide and cause any Guarantors and Debtors to provide Lender with at least thirty (30) or more days prior written notice of the nature of any intended change in their respective names, or the use of any tradename, and when such change or use shall become effective; | ||
j. | Location of Collateral. All of Borrower and any Debtors property constituting a portion of the Collateral is and shall be located at Borrower and such Debtors respective executive offices, places of business, residences and domiciles specifically described in this Agreement and the Loan Documents unless written |
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notice of another location is given to Lender within ten (10) days of any relocation; | |||
k. | Use of Collateral. Borrower shall use and cause by Debtors to use the Collateral solely in the ordinary course of their respective businesses, for the usual purposes intended by the manufacturer (if applicable), with due care, and in compliance in all material respects with the laws, ordinances, regulations, requirements and rules of all federal, state, county and municipal authorities and insurance policies. Borrower shall not make and cause Debtors to not make any alterations, additions or improvements to the Collateral without the prior written consent of Lender which is outside the ordinary course of Borrower and Debtors business and materially and adversely affects the Collateral. Without limiting the foregoing, all alterations, additions and improvements made to the Collateral shall be subject to the security interest belonging to Lender, shall not be removed if such removal might result in a material adverse effect on the Borrower, any Guarantor or Debtor, or the Collateral, without the prior written consent of Lender, and shall be made at Borrower and the Debtors sole expense. Borrower shall take and cause any Debtors to take all commercially reasonable actions and make any repairs or replacements needed to maintain the Collateral in good condition and working order; | ||
l. | Insurance. Borrower shall maintain and cause any Debtors to maintain insurance with responsible insurance companies on such of its properties, in such amounts and against such risks as described in the Agreement to Provide Insurance. All such policies to be with such companies and providing for at least thirty (30) days prior notice to Lender of any cancellation thereof. Satisfactory evidence of such insurance will be supplied to Lender prior to funding under the Loan Documents and thirty (30) days prior to each policy renewal. The insurance policies shall name Lender as a loss payee and provide that no act or omission of Borrower, any Debtor, or any other person shall affect the right of Lender to be paid the insurance proceeds pertaining to the loss or damage of the Collateral; | ||
m. | Possession of Chattel Paper. Borrower shall provide and cause by Debtors to provide Lender with possession of all chattel paper and instruments constituting a portion of the Collateral and mark such chattel paper and instruments to reflect Lenders security interest therein; | ||
n. | Enforceability of Certain Collateral. To the best of Borrowers knowledge, all of Borrower and any Debtors accounts, contract rights, chattel paper, documents, general intangibles, instruments, and other rights and agreements constituting a portion of the Collateral are and shall be valid, genuine and legally enforceable obligations and rights belonging to Borrower and such Debtors against one or more third parties, provided that, if the same shall be subject to an assertion by a third party of any valid claim, defense, setoff or counterclaim of any kind, they will be excluded from Borrowing Base hereunder, to the extent of the amount in dispute and as and to the extent provided in the Borrowing Base Agreement and such assertion, in of itself, shall not be a Default; | ||
o. | Substitution of Certain Collateral. Borrower shall not amend, modify, replace or substitute and shall cause any Debtors not to amend, modify, replace or substitute any account, contract right, chattel paper, document, general intangible, instrument, or other right or agreement constituting the Collateral which is outside the ordinary course of Borrowers business and materially and adversely affects the Collateral, without the prior written consent of Lender; |
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p. | Collection Practices. Borrower shall continue to apply and cause any Debtors to continue to apply their established credit policies with respect to all future credit transactions. Borrower shall use and cause any Debtors to use commercially reasonable efforts to collect from their account debtors and other third parties, as and when due, any and all amounts owing under or with respect to each account, contract right, document, general intangible, instrument or other agreement (including, without limitation, engaging legal assistance to collect delinquent obligations from their account debtors and other third parties) and apply the collected amounts against the outstanding balances on those obligations and agreements; | ||
q. | Financial Statements and Other Information. Borrower shall maintain a system of accounting satisfactory to Lender, permit Lenders officers or authorized representatives to visit and inspect Borrowers books of account and other records at such reasonable times, provided that, if no Default has occurred and be continuing, Lender may not visit and inspect Borrowers books of account and other records more than four (4) times per year,, and pay the reasonable fees and disbursements of any accountants or other agents of Lender selected by Lender for the foregoing purposes as provided in Paragraph 11 below. Unless written notice of another location is given to Lender, Borrowers books and records will be located at Borrowers address as set forth above. All financial statements called for below shall be prepared in form and content reasonably acceptable to Lender and in accordance with GAAP. | ||
In addition, Borrower will: |
(i) | Furnish to Lender annual CPA audited financial statements (including a balance sheet and related statements of income, retained earnings and cash flow) of Borrower for each fiscal year of Borrower, within 120 days after Borrowers fiscal year end. | ||
(ii) | Furnish to Lender quarterly internally prepared financial statements (including a balance sheet and related statements of income, retained earnings and cash flow) of Borrower within forty-five (45) days after each period end. | ||
(iii) | Furnish to Lender a compliance certificate for (and executed by an authorized representative of) Borrower concurrently with and dated as of the date of delivery of each of the financial statements as required in Paragraphs (i) and (ii) above, in substantially the same form as set forth in Exhibit AB@ attached hereto and made a part hereof, containing (a) a certification that the financial statements of even date are true and correct and that the Borrower is not in default under the terms of this Agreement, and (b) computations and conclusions, in such detail as Lender may request, with respect to compliance with this Agreement, and the Loan Documents, including computations of all quantitative covenants. | ||
(iv) | Furnish to Lender promptly such additional information, reports and statements respecting the business operations and financial condition of Borrower, from time to time, as Lender may reasonably request; |
r. | Financial Statements. The financial statements of Borrower heretofore delivered to Lender fairly present Borrowers financial condition as of the date or dates thereof, and there has been no material adverse change in Borrowers financial condition or operations since those dates. All factual information furnished by |
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Borrower to Lender in connection with this Agreement and the other Loan Documents is and will be accurate and complete on the date as of which such information is delivered to Lender and is not and will not be incomplete by the omission of any material fact necessary to make such information not misleading. | |||
s. | Obligations. By its execution of this Agreement and each Loan Document, Borrower shall acknowledge that such agreements constitute its legal and binding obligations that are fully enforceable in accordance with their respective terms and conditions; | ||
t. | Conflict of Laws. Borrower and any Guarantors and Debtors execution of this Agreement and the Loan Documents and performance of their respective Obligations thereunder does not and shall not conflict with the provisions of any statute, regulation, ordinance, rule of law, contract or other agreement which may now or hereafter be binding on those entities; | ||
u. | Repayment. Borrower and any Guarantors and Debtors shall duly and punctually repay the advances, loans and other financial accommodations evidenced by this Agreement and the Loan Documents and perform all of their other respective Obligations thereunder; | ||
v. | Default in Other Obligations. Neither Borrower nor any Guarantor or Debtor are or shall be in default under any material loan agreement, indenture, mortgage, security agreement (or other agreement or obligation) to which they are a party or by which any of their respective properties may be bound, except to the extent such default would not reasonably be expected to result in a material and adverse change in Borrowers business operations or financial condition taken as a whole or materially affect the Collateral; | ||
w. | Litigation and Claims. No action or proceeding is or shall be pending or threatened against Borrower or any Guarantor or Debtor which could reasonably be expected to result in a material and adverse change in Borrowers business operations or financial condition, taken as a whole, or materially affect the Collateral and there are and shall be no outstanding judgments against Borrower or any Guarantor or Debtor that are not discharged to the reasonable satisfaction of Lender within thirty (30) days of its inception; | ||
x. | Transfer/Sale of Collateral. Neither Borrower, nor any Debtor shall transfer, sell, lease, assign, convey or otherwise dispose of, in excess of $200,000.00 fair market value in any two (2) year period, (i) any of the Collateral or (ii) the properties or assets used in connection with or incidental to the operation of its business, without the prior written consent of Lender, except for inventory sold in the ordinary course of its business, provided that nothing herein shall prohibit or restrict Borrower or any Debtor from granting licenses in the ordinary course of business with respect to intellectual property rights included in the Collateral; | ||
y. | Guaranties. Neither Borrower nor any Guarantor shall assume, guaranty or otherwise become liable for the obligations of any person or entity except for such Guarantors guaranty of Borrowers Obligations to Lender; | ||
z. | Solvency. Borrower and any Guarantors and Debtors are solvent and shall continue to be solvent after the execution of this Agreement and the Loan Documents and the creation of Lenders security interest in the Collateral, are able and shall be able to pay their debts as they mature, and have and shall have sufficient capital to conduct their businesses and other financial transactions; | ||
aa. | Tax Returns. Borrower and each Guarantor or Debtor have filed and shall file all tax returns required to be filed by federal, state or local law (including, but not |
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limited to, all income, franchise, employment, property and sales tax returns) and has paid and shall pay all of the tax liabilities and other fees and assessments charged against that entity or its property when due, except for taxes that are being contested in good faith and further conditioned on such failure not being reasonably expected to result in a material and adverse change in Borrowers business operations or financial condition or materially affect the Collateral. Neither Borrower nor any Guarantor or Debtor knows of any pending investigation of those entities by any taxing or other governmental authority or of any pending but unassessed tax liability or other fee or assessment owing by those entities that could reasonably be expected to result in a material and adverse change in Borrowers business operations or financial condition or materially affect the Collateral; | |||
ab. | Margin Stock. Neither Borrower nor any Guarantor or Debtor is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System), and no part of the loans and/or other financial accommodations provided by Lender under this Agreement or any of the Loan Documents shall be used to purchase or carry any such margin stock or to extend credit to others for the purpose of purchasing or carrying margin stock. Neither Borrower, any Guarantor or Debtor, nor any person acting on their behalf has taken or shall take any action that might cause the transactions contemplated by this Agreement or the Loan Documents to violate Regulations T, U or X or to violate the Securities Exchange Act of 1934, as amended; | ||
ac. | Compliance with ERISA. Borrower and any Guarantors and Debtors have complied and shall comply with all applicable minimum funding and other requirements of the Employee Retirement Income Security Act of 1974, as amended (ERISA), and there are and shall be no existing conditions that would give rise to liability thereunder including, without limitation, any current or potential withdrawal liability from a multiemployer plan (as defined in Section 3(37) of ERISA). No reportable event (as defined in Section 4043 of ERISA) has occurred or shall occur in connection with any employee benefit plan of those entities that might constitute grounds for the termination thereof by the Pension Benefit Guaranty Corporation or for the appointment of a trustee to administer that plan. Borrower shall immediately notify and cause such Guarantors and Debtors to immediately notify Lender of any fact (including, but not limited to, any reportable event as that term is defined in Section 4043 of ERISA) arising in connection with any employee benefit plan belonging to those entities which might constitute grounds for the termination thereof by the Pension Benefit Guaranty Corporation or for the appointment of a trustee to administer that plan and, following such notification, Borrower shall provide or cause such Guarantors and Debtors to provide Lender with any additional information or documents as may be requested by Lender with respect thereto; | ||
ad. | Investment Company. Neither Borrower nor any Guarantor or Debtor is or shall be an investment company within the meaning of the Investment Company Act of 1940, as amended; | ||
ae. | Holding Companies and Affiliates. Neither Borrower nor any Guarantor or Debtor is or shall be a holding company or a subsidiary company of a holding company or an affiliate of a holding company or a public utility |
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within the meaning of the Public Utility Holding Company Act of 1935, as amended; | |||
af. | Compliance with Applicable Environmental Law. Borrower, each Guarantor and Debtor, and their respective properties are and shall be in compliance in all material respects with all applicable environmental, health and safety laws, rules and regulations and neither Borrower nor any Guarantor or Debtor is or shall be subject to any liability or obligation for remedial action thereunder that is reasonably expected to result in a material and adverse change in Borrowers business operations or financial condition or materially affect the Collateral. No investigation or inquiry by any governmental authority is or shall be pending or threatened against Borrower, any Guarantor or Debtor, or any of their respective properties with respect to Hazardous Material as defined herein. No Hazardous Materials are or shall be located on or under Borrower or any Guarantor or Debtors owned or leased properties under Borrower or any Guarantor or Debtors control. Neither Borrower, nor any Guarantor or Debtor has caused or permitted or shall cause or permit any Hazardous Materials to be stored, transported, or disposed of on or under or released from any of its properties. The term Hazardous Materials shall mean any substance, material, or waste which is or becomes regulated by any governmental authority including, but not limited to: (i) petroleum, (ii) asbestos, (iii) polychlorinated biphenyls, (iv) those substances, materials or wastes designated as a hazardous substance pursuant to Section 311 of the Clean Water Act or listed pursuant to Section 307 of the Clean Air Act or any amendments or replacements to these statutes, (v) those substances, materials or wastes defined as a hazardous waste pursuant to Section 1004 of the Resource Conservation and Recovery Act of any amendments or replacements to that statute, or (vi) those substances, materials or wastes defined as a hazardous substance pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, or any amendments or replacements to that statute; | ||
ag. | Compliance with Other Laws. Neither Borrower nor any Guarantor or Debtor has violated or shall violate any applicable federal, state, county or municipal statute, regulation or ordinance which may materially and adversely affect its respective business operations or financial condition, taken as a whole, or the Collateral. No Event of Default (or circumstances which, with notice or the passage of time or both, would constitute an Event of Default) has occurred under this Agreement or the Loan Documents; | ||
ah. | Notification Regarding Adverse Conditions and Events of Default. Without limiting any of the foregoing representations, warranties and covenants, Borrower shall immediately notify and cause any Guarantors and Debtors to immediately notify Lender of: (i) the occurrence of any Default or circumstances which, with notice or the passage of time or both, would constitute an Event of Default under this Agreement or the Loan Documents, (ii) the commencement of any action, suit, or proceeding or any other matter that might have a material adverse effect on the Borrower, any Guarantor or Debtor, or the Collateral, (iii) any change in the corporate officers of Borrower, (iv) any circumstances that might give rise to a claim, defense, setoff or counterclaim against Lender or with respect to the various rights and obligations described in this Agreement and the Loan Documents, and (v) actual or potential contingent liabilities in excess of $250,000.00; |
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ai. | Commercial Purpose. This Agreement and the Loan Documents and the Obligations described therein are executed and incurred for commercial and not for personal, family, or household use and all proceeds of Lenders loan and other financial accommodations to Borrower shall be used exclusively in the Borrowers business and for no other purpose; | ||
aj. | Lenders Influence. Lender has not exercised or attempted to exercise, directly or indirectly, any degree of control or influence of any kind whatsoever over the internal business operations or financial affairs of Borrower, or to the best of its knowledge, any Guarantor or Debtor, provided, however, that the existence of any Lender control or influence shall not be considered a Default of Borrower, and Borrower shall immediately notify and cause any Guarantors and Debtors to immediately notify Lender and Jerry Powell, General Counsel, BBVA Compass, Legal Department, 15 South 20th Street, Suite 1802, Birmingham, Ala. 35233 in writing of any actions that they consider to constitute an exercise or attempt to exercise such control or influence in the future. Borrower agrees that Lender has no intention of acting as a business, investment or financial consultant or advisor to Borrower or any Guarantor or Debtor and Borrower or any Guarantor or Debtor hereby waive and release Lender from any liability associated with or resulting from any such business, investment or financial consultation or advice received from Lender. Borrower shall notify and cause such Guarantors and Debtors to notify Lender in writing of any attempt by Lender to act as a consultant or advisor to those entities in the future; | ||
ak. | Lenders Duty. Lender does not have and shall not have any fiduciary or similar duty to Borrower, or to the best of its knowledge any Guarantor or Debtor; | ||
al. | Lenders Relationship. Lender has not participated and shall not participate in any type of joint venture or partnership with Borrower or, to the best of its knowledge, any Guarantor or Debtor and the execution and consummation of this Agreement and the Loan Documents and the transactions contemplated therein do not and shall not constitute or amount to a joint venture or partnership; | ||
am. | Lender Not an Agent. Except as expressly set forth in this Agreement or the Loan Documents, Lender has not acted and shall not act in any respect as the agent of Borrower or any Guarantor or Debtor for any purpose and no agency relationship has been or shall be created by the execution of this Agreement and the Loan Documents or the consummation of the transactions contemplated thereby; | ||
an. | Absence of Lender Representations. Except as expressly set forth in this Agreement or the Loan Documents, Lender has not made any representations or statements of material fact to Borrower or, to the best of its knowledge, any Guarantor or Debtor and such entities have not relied and shall not rely upon any representations or statements of Lender in connection with the negotiation, execution, delivery or effect of this Agreement or the Loan Documents or the consummation of the transactions contemplated thereby; | ||
ao. | Borrowers Agreement to Take Action. Borrower shall execute and deliver and cause any Guarantors and Debtors to execute and deliver to Lender any documents and take any actions as may be reasonably requested by Lender to carry out the intent and purposes of this Agreement and the Loan Documents and the transactions contemplated thereby and to preserve and perfect Lenders liens, security interests and other encumbrances in the Collateral; |
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ap. | Insider Loans. Borrower shall not make a loan to any of its shareholders, directors, officers or employees or any other person outside the ordinary course of Borrower=s business without the prior consent of Lender, which consent shall not be unreasonably withheld, delayed or conditioned; | ||
aq. | Financial Covenants. From the date of this Agreement until full payment and performance of all Obligations of Borrower under the Loan Documents, Borrower shall maintain, unless Lender consents otherwise in writing (and without limiting any requirement of any other loan agreement), the following financial conditions, except to the extent modified by the following definitions: |
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Except as otherwise expressly provided herein, all accounting terms used in this Agreement shall be interpreted in accordance with GAAP applied on a basis consistent with those used in the preparation of the latest financial statements furnished to the Lender hereunder. | |||
ar. | Negative Covenants: Until full payment and performance of all Obligations of Borrower under the Loan Documents, Borrower and Debtor will not, without the prior written consent of Lender (and without limiting any requirement of any other Loan Documents): |
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au. | Maintenance of Operating Accounts. Borrower shall maintain all or substantially all of its operating accounts with Lender during the term of this Agreement; | ||
at. | Springing Lien on Collateral. In addition to the requirements of paragraph 2 b. above, Borrower shall grant Lender a security interest in, and/or collaterally assign, all of the patents and trademarks owned by Borrower as additional Collateral to secure the payment and performance of all of the Borrowers present and future, joint and/or several, direct and indirect, absolute and contingent, express and implied, indebtedness, liabilities, obligations and covenants to Lender as described in this Agreement and the Loan Documents. Until a Default occurs and is continuing under this Agreement and the Loan Documents, Lender shall not perfect the security interest and/or record the collateral assignment in Borrowers patents and trademarks. Once a Default has occurred and is continuing, Lender shall have the option to take whatever steps are necessary to perfect the security interest and/or record the collateral assignment in Borrowers patents and trademarks and exercise any and all rights or remedies that Lender may have under this Agreement or the Loan Documents. Borrower agrees, upon demand, to execute and deliver to Lender such documents, in a form and substance reasonably satisfactory to Lender, that will grant to Lender and perfect a security interest in, and/or collaterally assign and record, all of the patents and trademarks owned by Borrower for the benefit of Lender; and | ||
av. | Representations and Warranties. All representations and warranties made under this Agreement shall be deemed made at and as of the date hereof and at and as of the date of any advance or loan made under the Loan Documents. |
a. | fails to pay any monetary obligation to Lender; |
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b. | fails to perform any obligation or breaches any warranty or covenant to Lender contained in this Agreement or the Loan Documents or any other present or future written agreement with Lender; | ||
c. | allows or causes the Collateral to be damaged in any material respect, destroyed, lost stolen, seized, or confiscated to the extent not covered by insurance and it could reasonably be expected to result in a material and adverse change in Borrowers business operations or financial condition, taken as a whole, or materially affect the Collateral; | ||
d. | seeks to revoke, terminate or otherwise limit its liability to Lender under the Loan Documents; | ||
e. | is dissolved or terminated, ceases to operate its business, becomes insolvent, makes an assignment for the benefit of creditors, or becomes the subject of any bankruptcy, insolvency or debtor rehabilitation proceeding; or | ||
f. | shall be in material default under any note, loan agreement, indenture, mortgage, deed of trust, security agreement or any other agreement or obligation to which they are a party, or by which any of their respective properties may be bound, whether with Lender or some third party which default could reasonably be expected to result in a material and adverse change, taken as a whole, in the business operations or financial condition of Borrower or materially affect the Collateral. |
i. | The Default by its nature cannot be cured or remedied through the efforts of Borrower. | ||
ii. | In the case of failure to pay principal, interest or other monetary obligation under the Loan Documents, the Default is not cured within ten (10) days following written notice from Lender to Borrower. | ||
iii. | In the case of a breach of the covenants in Paragraph 5aq, ten (10) days after the submission of the applicable compliance certificate showing the breach, if an investment in the Borrower in the form of additional equity or Subordinated Liabilities is not made such that, had the investment been made on the final day of the testing period, the covenant would not have been breached. | ||
iv. | In all other cases, the Default is not cured or remedied within thirty (30) days following written notice from Lender to Borrower |
a. | Acceleration to declare Borrower and any Guarantors or Debtors obligations to Lender to be immediately due and payable in full (less any rebates or credits as applicable); |
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b. | Collection Without Judicial Process to collect Borrower and any Guarantors or Debtors outstanding obligations with or without resorting to judicial process; | ||
c. | Delivery of Collateral to require Borrower and any Debtors to deliver and make available to Lender any Collateral at a place reasonably convenient to Lender and those entities; | ||
d. | Take Possession to take immediate possession, management and control of the Collateral without seeking the appointment of a receiver; | ||
e. | Collection of Proceeds to collect all rents, issues, income, profits and proceeds from the Collateral until Borrower and any Guarantors and Debtors obligations to Lender are satisfied in full; | ||
f. | Appointment of Receiver to apply for and obtain, without notice and upon ex parte application, the appointment of a receiver for the Collateral without regard to Borrower or any Guarantors and Debtors financial condition or solvency, the adequacy of the Collateral to secure the payment or performance of the obligations of those entities to Lender, or the existence of any waste to the Collateral; | ||
g. | Foreclosure to foreclose any deed of trust, mortgage, lien, security interest or other encumbrance on the Collateral in accordance with the Loan Documents; | ||
h. | Setoff to setoff Borrower and any Guarantors and Debtors obligations to Lender against any amounts due to those entities including, but not limited to, the Borrower and Guarantors and Debtors monies, instruments, and deposit accounts maintained with Lender; and | ||
i. | Lenders Contractual Rights to exercise all other rights available to Lender under the Loan Documents, any other written agreement, or applicable law. |
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BORROWER: | LENDER: | |||||||||
RULES-BASED MEDICINE, INC., a Delaware corporation | COMPASS BANK | |||||||||
By: | /s/ Patrick McClain | By: | /s/ Todd Jordan | |||||||
Patrick McClain, Chief Financial Officer | Todd Jordan, Senior Vice President | |||||||||
Address for Notice: | Address for Notice: | |||||||||
3300 Duval Road Austin, Texas 78759 | 5800 North Mopac Austin, Texas 78731 |
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INTEREST | PRINCIPAL AMOUNT/ | FUNDING/ | MATURITY | CUSTOMER | LOAN | |||||||||||||||
RATE | CREDIT LIMIT | AGREEMENT DATE | DATE | NUMBER | NUMBER | |||||||||||||||
Wall Street | $ | 9,000,000.00 | 8/10/2009 | 8/10/2011 | ||||||||||||||||
Journals Prime Rate, + 0.375% floating, per annum, not less than 4.0%, per annum. |
1. | Revolving Promissory Note in the original principal sum of $9,000,000.00 executed by Borrower. | |
2. | Commercial Security Agreement covering all of Debtors accounts receivable, inventory, equipment and general intangibles, now owned, or hereinafter acquired, executed by Debtor. | |
3. | Security Agreement/Collateral Assignment covering all of Borrowers patents and trademarks | |
4. | UCC-1 Financing Statement covering Item 2 above. | |
5. | Cover sheet and necessary filing documents with U.S Patent and Trademark offices to cover perfection of Item 3 above. | |
6. | Certificate of Corporate Resolution. | |
7. | Landlords Subordinations. | |
8. | Agreement to Provide Insurance. | |
9. | Leasehold Deed of Trusts and/or other forms of an assignment of lease. | |
10. | Notice of Final Agreement executed by Borrower and Guarantor. | |
11. | Non-representation letter. |
1. | The undersigned is a of the Borrower and that, as such, is authorized to execute this certificate on behalf of the Borrower. | |||||
2. | As of , 20 : | COMPLIANCE | ||||
(a) | The Borrower was not in default of any of the provisions of the Loan Agreement during the period as to which this Compliance Certificate relates; | YES/NO | ||||
(b) | Debt Service Coverage Ratio. Borrowers Debt Service Coverage Ratio was at least to 1.0 as computed on Attachment 1 hereto; and | YES/NO | ||||
(c) | Tangible Net Worth. Borrowers Tangible Net Worth was at least $6,500,000.00, as computed on Attachment 1 hereto. | YES/NO | ||||
(d) | Fixed Charge Coverage Ratio. Borrowers Fixed Charge Coverage Ratio was at least 1.50 to 1.0 as computed on Attachment 1 hereto. | YES/NO |
By: | ||||||
Name: | ||||||
Title: | ||||||
BORROWING BASE AGREEMENT
BORROWER: | LENDER: | |||||||
RULES-BASED MEDICINE, INC., a Delaware corporation | COMPASS BANK | |||||||
By: | /s/ Pat McClain | By: | /s/ Todd Jordan |
![]() | EXHIBIT C |
Company: | Rules-Based Medicine | |||||||||
Line Amount: | $ 9,000,000.00 | Period Ending: | ||||||||
ACCOUNTS RECEIVABLE AND INVENTORY RECONCILIATION FORM | ||||||||||
1. Accounts Receivable | ||||||||||
a. | Total Receivables | |||||||||
b. | Less: Accounts over 90 days old | |||||||||
c. | Less: Other | |||||||||
d. | Other Adjustments | |||||||||
e. | Total Ineligibles | |||||||||
f. | Total Available Accounts Receivable Less Ineligibles for this Period: | |||||||||
2. Inventory | ||||||||||
a. | Total Inventory | |||||||||
b. | Less: Work in Process | |||||||||
c. | Less: Other | |||||||||
d. | Other Adjustments | |||||||||
e. | Total Ineligibles | |||||||||
f. | Total Inventory Less Ineligibles for this period: | |||||||||
LOAN REQUEST | ||||||||||
3. Loan Value of Above Collateral | ||||||||||
a. | Net Accounts Receivable Loan Value | (Ineligibles line N.) | ||||||||
b. | Net Inventory Loan Value | (60% of line 2f.) | 60% | |||||||
INVENTORY CAP (The lesser of 3b., 150% of 3a., or $4,500,000) | ||||||||||
c. | Inventory Cap | |||||||||
d. | Total Collateral Value for this Period | |||||||||
e. | Net Borrowing Base | |||||||||
f. | Commitment amount | $9,000,000 | ||||||||
g. | Net Eligible Collateral Value for this Period (lesser of 3e or 3f) | |||||||||
3. Loan Balance | ||||||||||
a. | Loan Balance from Last Report | |||||||||
b. | Add: Draws | |||||||||
c. | Less: Payments | |||||||||
d. | Loan Balance for this Period | |||||||||
Cash Flow Variables | ||||||||||
Rate | Dsc 1.35 Cash Flow | |||||||||
4. Max Draw Availability | ||||||||||
4. Excess (Deficit) | ||||||||||
Authorized Signature | Title |
![]() | Rules-Based Medicine Ineligible Report | Date: Period Ending: | ||||||
In accordance with the Credit Agreement dated July XX, 2009 by and between Rules-Based Medicine, Inc., a Texas corporation (Borrower), and Compass Bank (Lender), I , of the Borrower hereby certify and warrant that the following schedule accurately states Borrowers Eligible Accounts Receivable, and Borrowers Borrowing Base as of the date hereof: | ||||||||
A. | U.S. Domestic & Canadian account totals: | |||||||
B. | Less U.S. Domestic & Canadian accounts over 90 days old: | |||||||
C. | Less other: | |||||||
U.S. Domestic & Canadian accounts less ineligibles: | ||||||||
Advance Rate: | 85% | |||||||
Total Eligible U.S. Domestic & Canadian accounts: | ||||||||
D. | Insured International account totals1: | |||||||
E. | Less Insured International accounts over 90 days old1: | |||||||
F. | Less other1: | |||||||
Insured International accounts less ineligibles1: | ||||||||
Advance Rate: | 90% | |||||||
Total Eligible Insured accounts: | ||||||||
G. | Uninsured International U.S. Subsidiary account totals2: | |||||||
H. | Less Uninsured International U.S. Subsidiary accounts over 90 days old2: | |||||||
I. | Less other2: | |||||||
Uninsured International U.S. Subsidiary accounts less ineligibles2: | ||||||||
Advance Rate: | 70% | |||||||
Total Eligible Uninsured International U.S. Subsidiary accountsCapped at $500,000: | ||||||||
J. | Uninsured International account totals: | |||||||
K. | Less Uninsured International accounts over 90 days old: | |||||||
L. | Less other: | |||||||
Uninsured International accounts less ineligibles: | ||||||||
Advance Rate: | 50% | |||||||
Total Eligible Uninsured International accountsCapped at $500,000: | ||||||||
M. | TOTAL INELIGIBLE ACCOUNTS: | |||||||
N. | TOTAL ELIGIBLE ACCOUNTS RECEIVABLE: | |||||||
1 | Insured accounts receivable placed through and/or approved by BBVA Compass subsidiary, Compass Insurance. Subject to a formal underwriting approval process. | |||||||
2 | International accounts that are from a foreign subsidiary of a Domestic based Publicly-Traded Company |

TANGIBLE NET WORTH: | ||||
Total Owners Equity | ||||
Plus: Subordinated Debt | ||||
Less: Note Receivable (owner/affiliate) | ||||
Less: Prepaid Rent | ||||
Less: Other Receivables | ||||
Less: Employee Advances | ||||
Less: Intangibles, net | ||||
Less: Goodwill, net | ||||
Less: Investments | ||||
Less: Investment in Subsidiary (excluding EDI) | ||||
Required minimum covenant total of at least $6,500,000 Total | $ | 0 | ||
PRO-FORMA DEBT SERVICE COVERAGE RATIO: (Rolling 4 Quarters) |
MARCH | JUNE | SEPT | DEC | |||||||||||||
Net Income Before Tax | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less Dividends | ||||||||||||||||
Less. Distributions | ||||||||||||||||
Less. Non-Financed Cap Exp | ||||||||||||||||
Less. Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Quarter to date NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Cash flow available for Debt Service | ||||||||||||||||
Existing CMLTD Paid | ||||||||||||||||
RLOC Balance at qrt end | ||||||||||||||||
Interest Rate at qrt end | ||||||||||||||||
Annual Pro-forma Debt Svc | ||||||||||||||||
Plus. Interest Expense | ||||||||||||||||
Total | ||||||||||||||||
Required minimum covenant ratio of at least 1.35:1 (1.50:1 starting Sept. 2009) | ||||||||||||||||
Ratio |
Page 1 of 2

MARCH | JUNE | SEPT | DEC | |||||||||||||
Net Income Before Tax | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
FYE NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity /acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Quarter to date NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Cash flow available for Debt Service | ||||||||||||||||
Existing CMLTD Paid | ||||||||||||||||
Plus: Lease Expense | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Total | ||||||||||||||||
Required minimum Fixed Charge Coverage of at least 1.50:1 | ||||||||||||||||
Ratio |
By: | Its: | Date: | ||||||||
Page 2 of 2
![]() | EXHIBIT C |
Company: | Rules-Based Medicine | |||||||||||
Line Amount: | $ | 9,000,000.00 | Period Ending: | |||||||||
1. Accounts Receivable | ||||||||
a. Total Receivables | ||||||||
b. Less: Accounts over 90 days old | ||||||||
c. Less. Other | ||||||||
d. Other Adjustments | ||||||||
e. Total Ineligibles | ||||||||
f. Total Available Accounts Receivable Less Ineligibles for this Period: | ||||||||
2. Inventory | ||||||||
a. Total Inventory | ||||||||
b. Less: Work In Process | ||||||||
c. Less. Other | ||||||||
d. Other Adjustments | ||||||||
e. Total Ineligibles | ||||||||
f. Total Inventory Less Ineligibles for this period: | ||||||||
LOAN REQUEST | ||||||||
3. Loan Value of Above Collatoral | ||||||||
a. Net Accounts Receivable Loan Value | (Ineligibles line N.) | |||||||
b. Net Inventory Loan Value | (60% of line 2f.) 60% | |||||||
INVENTORY CAP (The lesser of 3b, 150% of 3a., or $4,500,000) | ||||||||
c. Inventory Cap | ||||||||
d. Total Collateral Value for this Period | ||||||||
e. Net Borrowing Base | ||||||||
f. Commitment amount | $ | 9,000,000 | ||||||
g. Net Eligible Collateral Value for this Period (lesser of 3e or 3f) | ||||||||
3. Loan Balance | ||||||||
a. Loan Balance from Last Report | ||||||||
b. Add: Draws | ||||||||
c. Less: Payments | ||||||||
d. Loan Balance for this Period | ||||||||
Cash Flow Variables | ||||||||
Rate Dsc 1.50 Cash Flow | ||||||||
4. Max Draw Availability | ||||||||
4. Excess (Deficit) | ||||||||
![]() | Rules-Based Medicine | Date: | |||||||||||
Ineligible Report | Period Ending: | ||||||||||||
A. | U.S. Domestic & Canadian account totals: | |||||
B. | Less U.S. Domestic & Canadian accounts over 90 days old: | |||||
C. | Less other: | |||||
U.S. Domestic & Canadian accounts less ineligibles: | ||||||
Advance Rate: | 85% | |||||
Total Eligible U.S. Domestic & Canadian accounts: | ||||||
D. | Insured International account totals1: | |||||
E. | Less Insured International accounts over 90 days old1: | |||||
F. | Less other1: | |||||
Insured International accounts less ineligibles1: | ||||||
Advance Rate: | 90% | |||||
Total Eligible Insured accounts: | ||||||
G. | Uninsured International U.S. Subsidiary account totals2: | |||||
H. | Less Uninsured International U.S. Subsidiary accounts over 90 days old2: | |||||
I. | Less other2: | |||||
Uninsured International U.S. Subsidiary accounts less ineligibles2: | ||||||
Advance Rate: | 70% | |||||
Total Eligible Uninsured International U.S. Subsidiary accountsCapped at $500,000: | ||||||
J. | Uninsured International account totals: | |||||
K. | Less Uninsured International accounts over 90 days old: | |||||
L. | Less other: | |||||
Uninsured International accounts less ineligibles: | ||||||
Advance Rate: | 50% | |||||
Total Eligible Uninsured International accountsCapped at $500,000: | ||||||
M. | TOTAL INELIGIBLE ACCOUNTS: | |||||
N. | TOTAL ELIGIBLE ACCOUNTS RECEIVABLE: | |||||
1 | Insured accounts receivable placed through and/or approved by BBVA Compass subsidiary, Compass Insurance. Subject to a formal underwriting approval process. | |
2 | International accounts that are from a foreign subsidiary of a Domestic based Publicly-Traded Company |

TANGIBLE NET WORTH: | ||||||||
Total Owners Equity | ||||||||
Plus: Subordinated Debt | ||||||||
Less: Note Receivable (owner/affiliate) | ||||||||
Less: Prepaid Rent | ||||||||
Less: Other Receivables | ||||||||
Less: Employee Advances | ||||||||
Less: Intangibles, net | ||||||||
Less: Goodwill, net | ||||||||
Less: Investments | ||||||||
Less: Investment in Subsidiary (excluding EDI) | ||||||||
Required minimum covenant total of at least $6,500,000 | Total | $ | 0 |
MARCH | JUNE | SEPT | DEC | |||||||||||||
Net Income Before Tax | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Quarter to date NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Cash flow available for Debt Service | ||||||||||||||||
Existing CMLTD Paid | ||||||||||||||||
RLOC Balance at qrt end | ||||||||||||||||
Interest Rate at qrt end | ||||||||||||||||
Annual Pro-forma Debt Svc | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Total | ||||||||||||||||
Required minimum covenant ratio of at least 1.35:1 (1.50:1 starting Sept, 2009) |
Ratio |
![]() | FIXED CHARGE COVERAGE RATIO: (Rolling 4 Quarters) |
MARCH | JUNE | SEPT | DEC | |||||||||||||
Net Income Before Tax | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
FYE NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Quarter to date NIBT | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Plus: Depreciation | ||||||||||||||||
Plus: Non-Cash Expenses | ||||||||||||||||
Plus: Equity/acceptable sub debt | ||||||||||||||||
Plus: Lease Expenses | ||||||||||||||||
Less: Taxes | ||||||||||||||||
Less: Dividends | ||||||||||||||||
Less: Distributions | ||||||||||||||||
Less: Non-Financed Cap Exp | ||||||||||||||||
Less: Cash Investments in Affiliates | ||||||||||||||||
Subtotal | ||||||||||||||||
Cash flow available for Debt Service | ||||||||||||||||
Existing CMLTD Paid | ||||||||||||||||
Plus: Lease Expense | ||||||||||||||||
Plus: Interest Expense | ||||||||||||||||
Total | ||||||||||||||||
Required minimum Fixed Charge Coverage of at least 1.50:1 |
Ratio |
By: | Its: | Date: | ||||||||