Common use of Minimum Debt Service Coverage Clause in Contracts

Minimum Debt Service Coverage. Borrower shall maintain a minimum ratio of EBITDASO on a consolidated basis for the trailing two quarter period to the sum of (x) all accrued interest payable in the same two quarter period plus (y) all principal payable in the same two quarter period on any Indebtedness (not including principal oustanding on any revolving lines of credit) owing by Borrower and its Subsidiaries to Bank or other financial institutions, of at least 1.35 to 1.00, measured on a quarterly basis. 6. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remains in full force and effect in accordance with its terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all instruments, documents and agreements entered into in connection with the Agreement. 7. Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 8. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 9. As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: (a) this Amendment, duly executed by Borrower; (b) an amendment fee of $2,000 to Bank, plus an amount equal to all Bank Expenses incurred through the date of this Amendment; and (c) such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

Minimum Debt Service Coverage. Borrower shall maintain a minimum ratio of EBITDASO on a consolidated basis for the trailing two four quarter period to the sum of (x) all accrued interest payable in the same two four quarter period plus (y) all principal payable in the same two four quarter period on any Indebtedness (not including principal oustanding on any revolving lines of credit) owing by Borrower and its Subsidiaries to Bank or other financial institutions, of at least 1.35 to 1.001.00 (the “DSC Ratio”), measured on a quarterly basis. Notwithstanding the foregoing, Borrower’s failure to maintain the DSC Ratio shall not constitute an Event of Default if, within 60 days after the reporting period of such failure, Borrower receives cash proceeds from the sale and issuance of its equity and/or Subordinated Debt securities in an amount no less than the shortfall amount that caused Borrower’s failure to maintain the DSC Ratio. 68. The following is added to the end of Section 7.9 of the Agreement: Notwithstanding the foregoing, Borrower may pay to each of its shareholders who are holders of Subordinated Debt and who are party to a subordination agreement with Bank, in form and substance satisfactory to Bank (the “Subordination Agreement”), payments of principal and accrued interest on the Subordinated Debt, provided that (a) said payments are made using funds raised from the initial public offering or a private equity fundraising of Borrower, (b) no Event of Default has occurred under the Agreement which is continuing or would exist immediately after giving effect to such payment, (c) Borrower’s Cash maintained at Bank is at least equal to the amount as of the date hereof after each such payment, and (d) such payments are subject to the rights, if any, of Bank under any applicable Subordination Agreement. 9. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remains in full force and effect in accordance with its terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all instruments, documents and agreements entered into in connection with the Agreement. 710. Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 811. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. 912. As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: (a) this Amendment, duly executed by Borrower; (b) Corporate Resolutions and Incumbency Certification, duly executed by Borrower; (c) an amendment fee of $2,000 10,600 to Bank, plus an amount equal to all Bank Expenses incurred through the date of this Amendment; and (cd) such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

Minimum Debt Service Coverage. Borrower shall maintain a minimum ratio (a) From and after the termination of EBITDASO on a consolidated basis for the trailing two quarter period to the sum of Repayment Guaranty (x) all accrued interest payable in the same two quarter period plus (y) all principal payable in the same two quarter period on any Indebtedness (not including principal oustanding on any revolving lines of credit) owing by Borrower and its Subsidiaries to Bank or other financial institutions, of at least 1.35 to 1.00, measured on a quarterly basis. 6. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be Partial Repayment and remains in full force and effect Limited Guaranty) in accordance with its the terms of the Partial Repayment and hereby is ratified and confirmed in all respects. Except Limited Guaranty, as expressly set forth hereinof each Test Period thereafter, the executionProperty shall have had a Debt Service Coverage Ratio of no less than 1.30 to 1.00 (the “Minimum Debt Service Coverage”), delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all instruments, documents and agreements entered into in connection with the Agreement. 7. Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment, and that no Event of Default has occurred and is continuing. 8. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrumentevidenced by a Borrower Compliance Certificate to be delivered to Administrative Agent in accordance with Section 10.4. 9. As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following: (a) this Amendment, duly executed by Borrower; (b) an amendment fee If the Property fails to generate the Minimum Debt Service Coverage required pursuant to subsection (a) above (a “Trigger Event”), it shall not constitute a Default, but until such time as the Property generates the required Minimum Debt Service Coverage as of $2,000 the end of two (2) consecutive calendar quarters (or the Trigger Event is cured in the manner set forth below), then one hundred percent (100%) of excess cash flow (after payment of operating expenses, usual and customary capital expenditures or other expenditures approved by Administrative Agent in its reasonable discretion, and debt service) shall be remitted to BankAdministrative Agent, plus for the benefit of the Lenders, within thirty (30) days of each quarter end and held as cash collateral in a blocked and pledged account to be opened by Borrower at such time. Administrative Agent shall have the right to apply such cash collateral (after setting aside appropriate reserves for taxes, insurance and other accrual based expenses) to the outstanding principal balance of the Loan upon the failure of the Property to generate the required Minimum Debt Service Coverage as of the end of two (2) consecutive calendar quarters. So long as no Default exists, any cash collateral not otherwise applied to the outstanding principal balance of the Loan shall be remitted to Borrower upon the Property generating the required Minimum Debt Service Coverage as of the end of two (2) consecutive calendar quarters. From time to time upon Borrower’s written request, Administrative Agent shall release to Borrower funds held as cash collateral pursuant to this Section 9.23(b) to allow Borrower to pay real estate taxes, insurance and other accrual based expenses of the Property or other expenditures of the Property approved by Administrative Agent in its reasonable discretion. Borrower may cure a Trigger Event by: (i) paying down principal outstanding under the Loan in an amount equal sufficient to all Bank Expenses incurred through meet the date required Minimum Debt Service Coverage, and/or (ii) delivering to Administrative Agent an unconditional letter of this Amendment; andcredit, in satisfactory form and issued by a bank acceptable to Administrative Agent in its reasonable discretion, in an amount equivalent to the principal payment amount necessary to meet such required Minimum Debt Service Coverage. So long as no Default exists, any such letter of credit shall be returned to Borrower upon the Property generating the required Minimum Debt Service Coverage as of the end of two (2) consecutive quarters. (c) Notwithstanding the foregoing, if after the termination of the Repayment Guaranty in accordance with the terms of the Partial Repayment and Limited Guaranty, the Property generates a Debt Service Coverage Ratio of less than 1.15 to 1.00 during a Test Period, such other documentsoccurrence shall constitute a Default unless Borrower shall, within five (5) Business Days, (i) pay down the principal outstanding under the Loan in an amount sufficient to meet the required Minimum Debt Service Coverage, and/or (ii) deliver to Administrative Agent an unconditional letter of credit, in satisfactory form and completion issued by a bank acceptable to Administrative Agent in its reasonable discretion, in an amount equivalent to the principal payment amount necessary to meet the required Minimum Debt Service Coverage. So long as no Default exists, any such letter of such other matterscredit shall be returned to Borrower upon the Property generating the required Minimum Debt Service Coverage for two (2) consecutive quarters. (d) Notwithstanding anything to the contrary contained in this Agreement, as Bank any principal payments made pursuant to this Section 9.23 may reasonably deem necessary or appropriatenot be reborrowed.