Third Amendment dated as of June 30, 2003 to the Fourth Amended and
Restated Revolving Credit and Term Loan Agreement (the "Third Amendment"), by
and among LEASECOMM CORPORATION, a Massachusetts corporation (the "Borrower"),
MICROFINANCIAL INCORPORATED, a Massachusetts corporation (the "Parent", together
with the Borrower, the "Companies"), FLEET NATIONAL BANK, a national banking
association ("Fleet"), the other financial institutions from time to time party
thereto (together with Fleet, the "Lenders")and FLEET NATIONAL BANK, as agent
for the Lenders (the "Agent") made as of August 22, 2000 (as amended and in
effect from time to time, the "Credit Agreement"). Terms not otherwise defined
herein which are defined in the Credit Agreement shall have the same respective
meanings herein as therein.
WHEREAS, the carrier of the Companies' director and officer insurance
policy is requiring that the full amount of the Companies' premiums in respect
of coverage for such policy for the period beginning June 9, 2003 and ending
June 9, 2004 be prepaid at this time.
WHEREAS, the Companies have requested that the Lenders amend the Credit
Agreement to allow them to make such prepayment from their tax refund proceeds
in respect of fiscal year 2002 and to increase the amount of the repayments of
the Conversion Term Loan over the next twelve months as set forth on Schedule
2.8(a).
WHEREAS, the Borrower and the Lenders have agreed to modify such terms and
conditions of the Credit Agreement as specifically set forth in this Third
Amendment;
NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:
SECTION 1. RATIFICATION OF EXISTING AGREEMENTS. The Companies agree that
the Obligations, as evidenced by or otherwise arising under the Credit Agreement
and the other Loan Documents, except as otherwise expressly modified in this
Third Amendment upon the terms set forth herein, are, by the Companies'
execution of this Third Amendment, ratified and confirmed in all respects. In
addition, by the execution of this Third Amendment, the Companies represent and
warrant that no counterclaim, right of set-off or defense of any kind exists or
is outstanding as of the date hereof with respect to such Obligations. As of
July 1, 2003, the aggregate principal amount of the Conversion Term Loan is
$83,542,587.80 and the aggregate accrued and unpaid interest on the Conversion
Term Loan is $0.
SECTION 2. AMENDMENTS. Subject to the satisfaction of the conditions
specified in Section 3, but with effect on and after the Effective Date (as
defined in Section 3), the Credit Agreement shall be amended as follows:
-2-
2.1. TAX REFUND: PREPAYMENT. Section 5.18 of the Credit Agreement is
hereby amended to read, in its entirety, as follows:
"5.18 Tax Refund. The Companies shall prepay the Conversion Term Loan in
an amount equal to 100% of all tax refund proceeds received by the
Companies (including, without limitation, tax refunds in respect of United
States federal income taxes and all state taxes), minus $2,750,000 (the
"Reserve Amount") which amount shall be comprised of (a) $1,500,000 to be
held in reserve for the payment of state taxes owed in respect of fiscal
years 1998 and 1999 and (b) $1,250,000 which shall be used to make
required prepayments of all premiums owing under the Companies' director
and officer insurance policy in respect of coverage for the period
beginning June 9, 2003 and ending June 9, 2004. Such prepayments shall be
(a) made in accordance with Section 2.9, (b) made contemporaneously with
the receipt of any such tax refund and (c) applied to the remaining
scheduled principal repayments of the Conversion Term Loan in the inverse
order of maturity. The Companies further agree that they shall file all
tax returns in a timely manner and that they, in consultation with their
outside professionals, will diligently and expeditiously pursue the tax
refunds contemplated by this Section 5.18. To the extent that the Agent
receives any tax refund proceeds from the Internal Revenue Service, the
Agent agrees that it shall deliver to the Companies such Reserve Amount".
2.2. SCHEDULES AND EXHIBITS. Exhibit H and Schedule 2.8(a) to the Credit
Agreement are hereby amended by deleting existing Exhibit H and Schedule 2.8(a)
and substituting in lieu thereof the Exhibit H and Schedule 2.8(a) attached to
this Third Amendment.
SECTION 3. CONDITIONS EFFECTIVENESS. This Third Amendment shall become
effective as of the date hereof upon receipt by the Agent of each of the
following, in form and substance satisfactory to the Agent (with the date on
which the Agent receives the following being hereinafter referred to as the
"Effective Date"):
(a) A counterpart of this Third Amendment, executed by the Companies and
the Lenders;
(b) There shall have occurred no Default or Event of Default;
(c) The Agent shall have received evidence that all corporate action
necessary for the valid execution and delivery by the Companies of this Third
Amendment and the other documents referenced herein shall have been taken;
(d) The Agent and the Lenders shall have received payment for all fees and
expenses including, without limitation, reasonable legal fees and expenses, for
which invoices or reasonable estimates therefore have been provided to the
Borrower on or prior to the Effective Date; and
(e) The representations and warranties of the Borrower in each of the Loan
Documents shall be true and correct as of the Effective Date, except to the
extent that any
-3-
of such representations and warranties relate by their terms to a prior date
they shall be true and correct as of such prior date; and
SECTION 4. REPRESENTATIONS AND WARRANTIES. The Borrower hereby repeats, on
and as of the date hereof, each of the representations and warranties made by it
in Section 4 of the Credit Agreement, provided, that all references therein to
the Credit Agreement shall refer to such Credit Agreement as amended hereby. In
addition, each of the Companies hereby represent and warrant that the execution
and delivery by the Companies of this Third Amendment and the performance by the
Companies of all of their agreements and obligations under the Credit Agreement,
as amended hereby, are within the corporate authority of the Companies and have
been duly authorized by all necessary corporate or other similar action on the
part of the Companies.
SECTION 5. NO PRESENT CLAIMS. The Companies acknowledge and agree that, as
of the date hereof: (a) none of the Companies or, to the knowledge of any of the
Companies, any of their affiliates has any claim or cause of action against any
of the Lenders or the Agent (or any of their directors, officers, employees,
attorneys or agents); (b) none of the Companies, or to the knowledge of any of
the Companies, any of their affiliates has offset rights, counterclaims or
defenses of any kind against any of their obligations, indebtedness or
liabilities to any of the Lenders or the Agent; and (c) each of the Lenders and
the Agent has heretofore properly performed and satisfied in a timely manner all
of its obligations to the Companies and, to the knowledge of each of the
Companies, each of their affiliates. The Lenders and the Agent wish (and the
Companies agree) to eliminate any possibility that any past conditions, acts,
omissions, events, circumstances or matters would impair or otherwise adversely
affect any of the rights, interests, contracts, collateral security or remedies
of the Lenders or the Agent. Therefore, Companies, each on its own behalf and on
behalf of each of its respective successors and assigns, hereby waives, releases
and discharges the Lenders and the Agent and all of their directors, officers,
employees, attorneys and agents, from any and all claims, demands, actions or
causes of action on or before the date hereof and arising out of or in any way
relating to the Loan Documents and any documents, instruments, agreements
(including this Third Amendment), dealings or other matters connected with the
Loan Documents, including, without limitation, all known and unknown matters,
claims, transactions or things occurring on or prior to the date of this Third
Amendment related to the Loan Documents. The waivers, releases, and discharges
in this paragraph shall be effective regardless of any other event that may
occur or not occur prior to, or on or after the date hereof.
SECTION 6. NO WAIVER. Except as otherwise expressly provided for in this
Third Amendment, nothing in this Third Amendment shall extend to or affect in
any way any of the rights or obligations of the Borrower or any of the Agent's
or the Lenders' obligations, rights and remedies arising under the Loan
Documents. Neither the Agent nor any Lender shall be deemed to have waived any
or all of its rights or remedies with respect to any Default or Event of Default
existing on the date hereof or arising hereafter.
SECTION 7. MISCELLANEOUS.
(a) This Third Amendment shall be governed by and construed in accordance
with the internal laws of the Commonwealth of Massachusetts.
-4-
(b) This Third Amendment shall constitute a Loan Document under the Credit
Agreement; the failure to comply with the covenants contained herein shall
constitute an Event of Default under the Credit Agreement; and all obligations
included in this Third Amendment (including, without limitation, all obligations
for the payment of principal, interest, fees, and other amounts and expenses)
shall constitute obligations under the Loan Documents and secured by the
collateral security for the Obligations.
SECTION 8. ACKNOWLEDGEMENT. Each of the Companies, the Agent and the
Lenders acknowledges and agrees that this Third Amendment shall not be construed
against any of the Companies, the Agent or the Lenders as the drafter of this
Third Amendment.
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
as a document under seal as of the date first above written.
FLEET NATIONAL BANK, INDIVIDUALLY AND
AS AGENT
By: /s/ XXXXXX XXXXXX
-------------------------------
Name: XXXXXX XXXXXX
Title: AUTHORIZED OFFICER
BANKNORTH, N.A.
By:
-------------------------------
Name:
Title:
XXXXX BROTHERS XXXXXXXX & CO,
By:
-------------------------------
Name:
Title:
CITIBANK
By:
-------------------------------
Name:
Title:
CITIZENS BANK OF MASSACHUSETTS
By:
-------------------------------
Name:
Title:
KEYBANK NATIONAL ASSOCIATION
By:
-------------------------------
Name:
Title:
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
AS a document under seal as of the date first above written.
FLEET NATIONAL BANK, individually
and as Agent
By:
-------------------------------
Name:
Title:
BANKNORTH, N.A.
By: /s/ Xxxx X. Xxxxxx
-------------------------------
Name: Xxxx X. Xxxxxx
Title: X.X.
XXXXX BROTHERS XXXXXXXX & CO.
By:
-------------------------------
Name:
Title:
CITIBANK
By:
-------------------------------
Name:
Title:
CITIZENS BANK OF MASSACHUSETTS
By:
-------------------------------
Name:
Title:
KEYBANK NATIONAL ASSOCIATION
By:
-------------------------------
Name:
Title:
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
as a document under seal as of the date first above written.
FLEET NATIONAL BANK, individually and
as Agent
By:
-------------------------------
Name :
Title:
BANKNORTH, N.A.
By:
-------------------------------
Name:
Title:
XXXXX BROTHERS XXXXXXXX & CO.
By: /s/ Xxxxx X.Xxxxx
-------------------------------
Name: Xxxxx X.Xxxxx
Title: Managing Director
CITIBANK
By:
-------------------------------
Name:
Title:
CITIZENS BANK OF MASSACHUSETTS
By:
-------------------------------
Name:
Title:
KEYBANK NATIONAL ASSOCIATION
By:
-------------------------------
Name:
Title:
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
as a document under seal as of the date first above written.
FLEET NATIONAL BANK, individually AND
as Agent
By:
-------------------------------
Name:
Title:
BANKNORTH, N.A.
By:
-------------------------------
Name:
Title:
XXXXX BROTHERS XXXXXXXX & CO.
By:
-------------------------------
Name:
Title:
CITIBANK
By: /s/ Xxxxxx X. Xxxxxxx
-------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Vice President
CITIZENS BANK OF MASSACHUSETTS
By:
-------------------------------
Name:
Title:
KEY BANK NATIONAL ASSOCIATION
By:
-------------------------------
Name:
Title:
IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
as a document under seal as of the date first above written.
FLEET NATIONAL BANK, individually and
as agent
By:
-------------------------------
Name:
Title:
BANKNORTH,N.A.
By:
-------------------------------
Name:
Title:
XXXXX BROTHERS XXXXXXXX & CO.
By:
-------------------------------
Name:
Title:
CITIBANK
By:
-------------------------------
NAME:
Title:
CITIZENS BANK OF MASSACHUSETTS
By:
-------------------------------
Name:
Title:
KEYBANK NATIONAL ASSOCIATION
By: /s/ XXXXX X.XXXXXXXX
-------------------------------
Name: XXXXX X.XXXXXXXX
Title: VICE PRESIDENT
NATIONAL CITY BANK
By: /s/ Xxxxxxx X.Xxxxxx
-------------------------------
Name: Xxxxxxx X.Xxxxxx
Title: Senior Vice President
U.S. BANK
By:
-------------------------------
Name:
Title:
UNION BANK OF CALIFORNIA, N.A.
By:
-------------------------------
Name:
Title:
ACCEPTED AND AGREED as of
June______,2003:
Borrower
LEASECOMM CORPORATION
By:
------------------------------
Name:
Title:
Parent:
MICROFINANCIAL INCORPORATED
By:
------------------------------
Name:
Title:
NATIONAL CITY BANK
BY:
---------------------------
Name:
Title:
U.S. BANK
BY:
---------------------------
Name :
Title:
UNION BANK OF CALIFORNIA, N.A.
BY: /s/ XXXXXXX X. XXXXXXX
---------------------------
Name: XXXXXXX X.XXXXXXX
Title: SENIOR VICE PRESIDENT
ACCEPTED and AGREED as of
June____,2003:
Borrower:
LEASECOMM CORPORATION
By:
------------------------------
Name:
Title:
Parent:
MICROFINANCIAL INCORPORATED
By:
------------------------------
Name:
Title:
NATIONAL CITY BANK
By:
---------------------------
Name:
Title:
U.S. BANK
By:
---------------------------
Name:
Title:
UNION BANK OF CALIFORNIA, N.A.
By:
---------------------------
Name:
Title:
ACCEPTED and AGREED as of
June___, 2003:
Borrower:
LEASECOMM CORPORATION
By: /s/ Xxxxxxx X. Xxxxxx
------------------------------
Name: Xxxxxxx X. Xxxxxx
Title: Exec VP, COO/CFO
Parent:
MICROFINANCIAL INCORPORATED
By: /s/ Xxxxx X. Xxxxxxx
-----------------------------
Name: Xxxxx X. Xxxxxxx
Title: VP and CFO
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 1 2 3 4 5 6 7
Projected Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of Month of
Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments -- -- 7,328 7,201 7,058 6,913 6,751
Rentals -- -- 2,309 2,270 2,242 2,216 2,199
Monitoring -- -- 675 667 660 654 647
Fees & Other -- -- 1,067 1,049 1,031 1,012 993
Delinquent & Prepays -- -- 810 729 656 590 531
New Volumes -- -- 54 57 61 64 68
------- ------- ------- ------- ------- ------- -------
SUBTOTAL -- -- 12,242 11,975 11,708 11,450 11,189
------- ------- ------- ------- ------- ------- -------
Cash Paid to Suppliers and Employees
Payroll Related -- -- (722) (722) (990) (522) (515)
Other -- -- (3,010) (2,260) (2,183) (3,961) (2,009)
Intercompany Charges -- -- 0 0 0 0 0
Cash paid for Taxes
Sales -- -- (671) (656) (641) (626) (612)
Property -- -- (263) (52) (41) (33) (124)
Interest Paid (Net)
Revolver Loan Interest -- -- (619) (599) (567) (507) (483)
Subdebt Interest -- -- (35) (35) (35) (35) (35)
------- ------- ------- ------- ------- ------- -------
Net Cash Provided By Operating Activities -- -- 6,922 7,651 7,250 5,764 7,411
------- ------- ------- ------- ------- ------- -------
Cashflows from Investing Activities
Investment in Leased Equipment -- -- (500) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- -- --
Investment in Direct Costs -- -- (35) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Cash used in Investing Activities -- -- (535) (107) (107) (107) (107)
------- ------- ------- ------- ------- ------- -------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- 7,365 1,500 --
Tax Obligations -- Federal/State (1,500)
Repayment of Secured Debt (Revolving Credit) -- -- (3,835) (3,835) (3,835) (3,835) (3,835)
Proposed Additional Debt Repayment -- -- -- (2,265) (765) (765) (865)
Proposed Excess Cash Repayment -- -- -- -- (1,088) (64) (202)
Proposed Additional Debt Repayment -- Tax Refund -- (5,865)
Securitization Cash to Trust Account -- -- (4,165) (4,061) (3,953) (3,845) (3,726)
Securitization Prepayments & Defaults -- -- (448) (422) (395) (370) (345)
Securitization Settlement
($ collateral/Servicer) -- -- 1,834 1,888 1,886 1,877 1,552
Repayment of Capital Leases -- -- (32) (21) (16) (16) (16)
Payment of Dividends -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Cash Provided by (Used in) Financing
Activities -- -- (6,646) (8,716) (8,167) (5,520) (7,438)
------- ------- ------- ------- ------- ------- -------
Net Increase (Decrease) in cash and cash
equivalents -- -- (258) (1,172) (1,023) 138 (134)
Cash and Cash Equivalents beginning of period* -- -- 8,518 8,260 7,088 6,064 6,202
------- ------- ------- ------- ------- ------- -------
Cash and Cash Equivalents end of period* -- 8,518 8,260 7,088 6,064 6,202 6,069
======= ======= ======= ======= ======= ======= =======
Total Repayment -- Required -- -- (3,835) (6,100) (4,600) (4,600) (4,700)
Total Repayment -- New Payment Schedule
(Includes Excess Cash) $0 $0 ($3,835) (6,100) (11,553) (4,664) (4,902)
Dollar Amounts -- Original Payments $0 $0 ($3,835) ($7,335) ($5,135) ($5,135) ($4,835)
Excess Cash Payment 6000 -- -- -- -- (1,088) (64) (202)
Debt Balance After Principal, Tax, Add'l &
Excess Payments 122,721 118,886 115,051 108,951 97,398 92,734 87,831
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 8 9 10 11 12
Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of
Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 6,596 6,412 6,213 6,021 5,824
Rentals 2,180 2,172 2,172 2,167 2,164
Monitoring 640 633 626 620 613
Fees & Other 974 954 933 911 890
Delinquent & Prepays 478 430 387 349 314
New Volumes 71 75 79 82 86
------- ------- ------- ------- -------
SUBTOTAL 10,939 10,677 10,409 10,150 9,891
------- ------- ------- ------- -------
Cash Paid to Suppliers and Employees
Payroll Related (510) (506) (749) (495) (486)
Other (1,984) (1,962) (1,884) (1,884) (2,462)
Intercompany Charges 0 $4 $10 $16 $22
Cash paid for Taxes
Sales (598) (583) (569) (554) (540)
Property (228) (150) (128) (54) (132)
Interest Paid (Net)
Revolver Loan Interest (457) (434) (409) (381) (356)
Subdebt Interest (35) (35) (35) (35) (35)
------- ------- ------- ------- -------
Net Cash Provided By Operating Activities 7,126 7,010 6,645 6,762 5,901
------- ------- ------- ------- -------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- --
------- ------- ------- ------- -------
Net Cash used in Investing Activities (107) (107) (107) (107) (107)
------- ------- ------- ------- -------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- -- --
Tax Obligations -- Federal/State
Repayment of Secured Debt (Revolving Credit) (3,835) (3,835) (3,835) (3,835) (3,835)
Proposed Additional Debt Repayment (665) (865) (865) (865) (665)
Proposed Excess Cash Repayment (69) (40) (691) (130) (404)
Proposed Additional Debt Repayment -- Tax Refund
Securitization Cash to Trust Account (3,608) (3,478) (3,334) (3,201) (3,058)
Securitization Prepayments & Defaults (320) (302) (287) (272) (257)
Securitization Settlement
($ collateral/Servicer) 1,466 2,284 1,929 1,938 1,957
Repayment of Capital Leases (16) (16) (16) (16) (16)
Payment of Dividends -- -- -- -- --
------- ------- ------- ------- -------
Net Cash Provided by (Used in) Financing
Activities (7,047) (6,252) (7,100) (6,380) (6,278)
------- ------- ------- ------- -------
Net Increase (Decrease) in cash and cash
equivalents (28) 651 (562) 275 (484)
Cash and Cash Equivalents beginning of period* 6,069 6,040 6,691 6,130 6,404
------- ------- ------- ------- -------
Cash and Cash Equivalents end of period* 6,040 6,691 6,130 6,404 5,920
======= ======= ======= ======= =======
Total Repayment -- Required (4,500) (4,700) (4,700) (4,700) (4,500)
Total Repayment -- New Payment Schedule
(Includes Excess Cash) (4,569) (4,740) (5,391) (4,830) (4,904)
Dollar Amounts -- Original Payments ($4,735) ($5,335) ($4,735) ($4,835) ($4,835)
Excess Cash Payment 6000 (69) (40) (691) (130) (404)
Debt Balance After Principal, Tax, Add'l &
Excess Payments 83,263 78,522 73,131 68,302 63,397
MFI CONFIDENTIAL 7/2/2003 Page 1
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
(000's) 13 14 15 16 17 18
Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of
Jan-04 Feb-04 Mar-04 Apr-04 May-04 Jun-04
--------- --------- --------- --------- --------- ---------
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 5,625 5,407 5,157 4,916 4,691 4,460
Rentals 2,162 2,169 2,191 2,207 2,214 2,224
Monitoring 607 601 595 588 582 576
Fees & Other 869 846 822 798 775 751
Delinquent & Prepays 282 254 229 206 185 167
New Volumes 89 93 96 100 103 107
-------------------------------------------------------------------
Subtotal 9,634 9,370 9,090 8,816 8,551 8,286
-------------------------------------------------------------------
Cash Paid to Suppliers and Employees
Payroll Related (482) (479) (477) (716) (475) (473)
Other (1,699) (1,699) (1,777) (1,674) (1,591) (1,914)
Intercompany Charges $32 $42 $52 $66 $80 $94
Cash Paid for Taxes
Sales (526) (511) (496) (481) (467) (452)
Property (281) (61) (210) (42) (33) (26)
Interest Paid (Net)
Revolver Loan Interest (330) (307) (280) (240) (213) (188)
Subdebt Interest (35) (35) (35) (35) (35) (35)
-------------------------------------------------------------------
Net Cash Provided By Operating Activities 6,313 6,319 5,865 5,694 5,817 5,292
-------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
-------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
-------------------------------------------------------------------
Cashflows from Financing Activities
Tax Refunds - Federal/State -- -- -- -- -- --
Tax Obligations - Federal/State
Repayment of Secured Debt
(Revolving Credit) (3,835) (3,835) (3,835) (3,835) (3,835) (3,835)
Proposed Additional Debt Repayment (665) (865) (1,065) (965) (865) (865)
Proposed Excess Cash Repayment -- (439) (2,822) (248) (273) (1,669)
Proposed Additional Debt Repayment -
Tax Refund
Securitization Cash to Trust Account (2,914) (2,759) (2,582) (2,408) (2,260) --
Securitization Prepayments & Defaults (242) (227) (212) (197) (182) --
Securitization Settlement ($ collateral/
Servicer) 1,985 4,312 2,200 2,106 3,115 --
Repayment of Capital Leases (16) (16) (16) (15) (15) (14)
Payment of Dividends -- -- -- -- -- --
-------------------------------------------------------------------
Net Cash Provided by (Used in)
Financing Activities (5,687) (3,829) (8,333) (5,561) (4,315) (6,383)
-------------------------------------------------------------------
Net Increase (Decrease) in cash and
cash equivalents 519 2,383 (2,574) 25 1,396 (1,198)
Cash and Cash Equivalents beginning of
period* 5,920 6,439 8,822 6,248 6,273 7,669
-------------------------------------------------------------------
Cash and Cash Equivalents end of period* 6,439 8,822 6,248 6,273 7,669 6,471
===================================================================
Total Repayment - Required (4,500) (4,700) (4,900) (4,800) (4,700) (4,700)
Total Repayment - New Payment Schedule
(Includes Excess Cash) (4,500) (5,139) (7,772) (5,048) (4,973) (6,369)
Dollar Amounts - Original Payments ($4,835) ($7,335) ($4,835) ($4,835) ($6,335) ($5,335)
Excess Cash Payment 6000 -- (439) (2,822) (248) (273) (1,669)
Debt Balance After Principal, Tax,
Add'l & Excess Payments 58,897 53,758 46,036 40,988 36,015 29,646
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASH FLOW PROJECTION
AS OF JANUARY, 2003
(000's) 19 20 21 22 23 24
Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of
Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04
--------- --------- --------- --------- --------- ---------
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 4,231 4,020 3,852 3,682 3,555 3,422
Rentals 2,234 2,240 2,229 2,210 2,176 2,142
Monitoring 570 565 559 553 548 542
Fees & Other 728 706 687 667 650 632
Delinquent & Prepays 150 135 122 109 98 89
New Volumes 110 114 118 121 125 128
-------------------------------------------------------------------
Subtotal 8,024 7,780 7,566 7,342 7,152 6,954
-------------------------------------------------------------------
Cash Paid to Suppliers and Employees
Payroll Related (471) (468) (466) (696) (462) (460)
Other (1,686) (1,686) (1,764) (1,686) (1,686) (2,014)
Intercompany Charges $93 $91 $90 $89 $87 $202
Cash Paid for Taxes
Sales (438) (424) (413) (401) (390) (379)
Property (99) (182) (120) (102) (43) (106)
Interest Paid (Net)
Revolver Loan Interest (154) (127) (101) (76) (52) (28)
Subdebt Interest (35) (35) (35) (35) (35) (35)
-------------------------------------------------------------------
Net Cash Provided By Operating Activities 5,234 4,947 4,757 4,435 4,571 4,135
-------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
-------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
-------------------------------------------------------------------
Cashflows from Financing Activities
Tax Refunds - Federal/State -- -- -- -- -- --
Tax Obligations - Federal/State
Repayment of Secured Debt
(Revolving Credit) (3,835) (3,835) (3,835) (3,835) (3,835) (3,835)
Proposed Additional Debt Repayment (865) (765) (765) (765) (765) (765)
Proposed Excess Cash Repayment (471) (413) (227) (36) -- --
Proposed Additional Debt Repayment -
Tax Refund
Securitization Cash to Trust Account -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- --
Securitization Settlement ($ collateral/
Servicer) -- -- -- -- -- --
Repayment of Capital Leases (14) (14) (14) (14) (14) (14)
Payment of Dividends -- -- -- -- -- --
-------------------------------------------------------------------
Net Cash Provided by (Used in)
Financing Activities (5,185) (5,027) (4,840) (4,650) (4,614) (4,614)
-------------------------------------------------------------------
Net Increase (Decrease) in cash and
cash equivalents (58) (186) (191) (321) (150) (586)
Cash and Cash Equivalents beginning of
period* 6,471 6,413 6,227 6,036 5,714 5,565
-------------------------------------------------------------------
Cash and Cash Equivalents end of period* 6,413 6,227 6,036 5,714 5,565 4,979
===================================================================
Total Repayment - Required (4,700) (4,600) (4,600) (4,600) (4,600) (4,600)
Total Repayment - New Payment Schedule
(Includes Excess Cash) (5,171) (5,013) (4,827) (4,636) (4,600) (4,600)
Dollar Amounts - Original Payments ($5,335) ($5,335) ($4,535) ($4,235) ($4,335) ($4,135)
Excess Cash Payment 6000 (471) (413) (227) (36) -- --
Debt Balance After Principal, Tax,
Add'l & Excess Payments 24,474 19,461 14,635 9,999 5,399 799
MFI CONFIDENTIAL 7/2/2003 Page 2
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 25 26 27 28 29 30
Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of
Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 3,307 3,169 3,027 2,877 2,699 2,535
Rentals 2,103 2,075 2,052 2,035 2,030 2,020
Monitoring 536 531 526 520 515 510
Fees & Other 615 598 580 562 543 524
Delinquent & Prepays 80 72 65 58 52 47
New Volumes 132 135 139 142 146 149
------------------------------------------------------------------
SUBTOTAL 6,774 6,579 6,388 6,196 5,985 5,786
------------------------------------------------------------------
Cash Paid to Suppliers and Employees
Payroll Related (458) (455) (453) (676) (449) (446)
Other (1,472) (1,472) (1,550) (1,447) (1,447) (1,525)
Intercompany Charges $201 $199 $198 $197 $195 $194
Cash paid for Taxes
Sales (369) (359) (348) (338) (327) (316)
Property (225) (49) (168) (33) (26) (21)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35) (35)
------------------------------------------------------------------
Net Cash Provided By Operating Activities 4,415 4,409 4,031 3,863 3,897 3,636
------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
------------------------------------------------------------------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- -- -- --
Tax Obligations -- Federal/State
Repayment of Secured Debt (Revolving Credit) -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- -- --
Proposed Excess Cash Repayment --
Proposed Additional Debt Repayment -- Tax Refund
Securitization Cash to Trust Account -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- --
Securitization Settlement ($ collateral/Servicer) -- -- -- -- -- --
Repayment of Capital Leases (14) (14) (14) (6) (3) (3)
Payment of Dividends -- -- -- -- -- --
------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities (812) (14) (14) (6) (3) (3)
------------------------------------------------------------------
Net Increase (Decrease) in cash and cash equivalents 3,496 4,288 3,910 3,750 3,787 3,526
Cash and Cash Equivalents beginning of period* 4,979 8,475 12,763 16,673 20,424 24,210
------------------------------------------------------------------
Cash and Cash Equivalents end of period* 8,475 12,763 16,673 20,424 24,210 27,736
==================================================================
Total Repayment -- Required (799)
Total Repayment -- New Payment Schedule (Includes Excess Cash) (799) --
Dollar Amounts -- Original Payments ($6,665)
Excess Cash Payment 6000 --
Debt Balance After Principal, Tax, Add'l & Excess Payments --
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 31 32 33 34 35 36
Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of
Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 2,374 2,196 2,013 1,870 1,729 1,576
Rentals 2,008 2,008 2,005 1,988 1,985 1,947
Monitoring 504 499 494 489 484 479
Fees & Other 506 487 467 450 432 414
Delinquent & Prepays 42 38 34 31 28 25
New Volumes 153 157 160 164 167 171
------------------------------------------------------------------
SUBTOTAL 5,588 5,385 5,174 4,992 4,806 4,612
------------------------------------------------------------------
Cash Paid to Suppliers and Employees
Payroll Related (444) (442) (659) (437) (434) (434)
Other (1,402) (1,402) (1,480) (1,392) (1,392) (1,470)
Intercompany Charges $192 $190 $188 $186 $184 $323
Cash paid for Taxes
Sales (305) (294) (282) (273) (262) (252)
Property (79) (146) (96) (82) (35) (84)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35) (35)
------------------------------------------------------------------
Net Cash Provided By Operating Activities 3,514 3,256 2,809 2,959 2,831 2,659
------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
------------------------------------------------------------------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- -- -- --
Tax Obligations -- Federal/State
Repayment of Secured Debt (Revolving Credit) -- -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- -- --
Proposed Excess Cash Repayment -- -- --
Proposed Additional Debt Repayment -- Tax Refund
Securitization Cash to Trust Account -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- --
Securitization Settlement ($ collateral/Servicer) -- -- -- -- -- --
Repayment of Capital Leases (3) (3) (3) (3) (3) --
Payment of Dividends -- -- -- -- -- --
------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities (3) (3) (3) (3) (3) --
------------------------------------------------------------------
Net Increase (Decrease) in cash and cash equivalents 3,404 3,146 2,699 2,849 2,720 2,552
Cash and Cash Equivalents beginning of period* 27,736 31,140 34,285 36,984 39,833 42,553
------------------------------------------------------------------
Cash and Cash Equivalents end of period* 31,140 34,285 36,984 39,833 42,553 45,105
==================================================================
Total Repayment -- Required
Total Repayment -- New Payment Schedule (Includes Excess Cash)
Dollar Amounts -- Original Payments
Excess Cash Payment 6000
Debt Balance After Principal, Tax, Add'l & Excess Payments
MFI CONFIDENTIAL 7/2/2003 Page 3
MICROFINANCIAL INCORPORATED - EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
(000's)
37 38 39 40 41 42
Projected Projected Projected Projected Projected Projected
Month of Month of Month of Month of Month of Month of
Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06
Includes Default Interest and Fees
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 1,431 1,298 1,129 964 783 626
Rentals 1,924 1,895 1,886 1,875 1,871 1,857
Monitoring 475 470 465 460 456 451
Fees & Other 396 379 350 341 322 304
Delinquent & Prepays
New Volumes 156 142 128 128 128 128
----------------------------------------------------------------------
SUBTOTAL 4,382 4,185 3,968 3,768 3,560 3,365
Cash Paid to Suppliers and Employees ----------------------------------------------------------------------
Payroll Related (434) (434) (652) (434) (434) (434)
Other (1,288) (1,288) (1,366) (1,288) (1,288) (1,366)
Intercompany Charges $321 $319 $317 $315 $313 $311
Cash paid for Taxes
Sales (239) (228) (216) (206) (194) (184)
Property (180) (39) (135) (27) (21) (17)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35) (35)
----------------------------------------------------------------------
Net Cash Provided By Operating Activities 2,527 2,479 1,881 2,094 1,900 1,641
----------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
---------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
---------------------------------------------------------------------
Cashflows from Financing Activities -- -- -- -- -- --
Tax Refunds -- Federal/State -- -- -- -- -- --
Tax Obligations -- Federal/State -- -- -- -- -- --
Repayment of Secured Debt (Revolving Credit) -- -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- -- --
Proposed Excess Cash Repayment -- -- -- -- -- --
Proposed Additional Debt Repayment -- Tax Refund -- -- -- -- -- --
Securitization Cash to Trust Account -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- --
Securitization Settlement ($ collateral/Servicer) -- -- -- -- -- --
Repayment of Capital Leases -- -- -- -- -- --
Payment of Dividends -- -- -- -- -- --
---------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities -- -- -- -- -- --
---------------------------------------------------------------------
Net Increase (Decrease) in cash and cash equivalents 2,420 2,372 1,774 1,987 1,793 1,534
Cash and Cash Equivalents beginning of period* 45,105 47,525 49,897 51,671 53,658 55,451
---------------------------------------------------------------------
Cash and Cash Equivalents end of period* 47,525 49,897 51,671 53,658 55,451 56,985
=====================================================================
Total Repayment -- Required
Total Repayment -- New Payment Schedule (Includes Excess Cash)
Dollar Amounts -- Original Payments
Excess Cash Payment 6000
Debt Balance After Principal, Tax, Add'l & Excess Payments
MICROFINANCIAL INCORPORATED - EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
(000's)
43 44 45 46 47 48
Projected Projected Projected Projected Projected Projected
Month of Month of Month of Month of Month of Month of
Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06
Includes Default Interest and Fees
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 487 340 202 150 126 108
Rentals 1,834 1,816 1,795 1,734 1,663 1,592
Monitoring 447 442 438 433 429 425
Fees & Other 286 269 252 240 230 220
Delinquent & Prepays
New Volumes 128 128 128 128 128 128
----------------------------------------------------------------------
SUBTOTAL 3,182 2,996 2,815 2,685 2,575 2,472
Cash Paid to Suppliers and Employees ----------------------------------------------------------------------
Payroll Related (434) (434) (652) (434) (434) (434)
Other (1,288) (1,288) (1,366) (1,288) (1,288) (1,366)
Intercompany Charges $308 $305 $303 $300 $297 $463
Cash paid for Taxes
Sales (174) (164) (154) (147) (141) (135)
Property (63) (117) (77) (66) (28) (68)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35) (35)
----------------------------------------------------------------------
Net Cash Provided By Operating Activities 1,496 1,263 834 1,015 946 897
----------------------------------------------------------------------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- --
----------------------------------------------------------------------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107)
----------------------------------------------------------------------
Cashflows from Financing Activities -- -- -- -- -- --
Tax Refunds -- Federal/State -- -- -- -- -- --
Tax Obligations -- Federal/State -- -- -- -- -- --
Repayment of Secured Debt (Revolving Credit) -- -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- -- --
Proposed Excess Cash Repayment -- -- -- -- -- --
Proposed Additional Debt Repayment -- Tax Refund -- -- -- -- -- --
Securitization Cash to Trust Account -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- --
Securitization Settlement ($ collateral/Servicer) -- -- -- -- -- --
Repayment of Capital Leases -- -- -- -- -- --
Payment of Dividends -- -- -- -- -- --
---------------------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities -- -- -- -- -- --
---------------------------------------------------------------------
Net Increase (Decrease) in cash and cash equivalents 1,389 1,156 727 908 839 790
Cash and Cash Equivalents beginning of period* 56,985 58,373 59,530 60,257 61,165 62,004
---------------------------------------------------------------------
Cash and Cash Equivalents end of period* 58,373 59,530 60,257 61,165 62,004 62,795
=====================================================================
Total Repayment -- Required
Total Repayment -- New Payment Schedule (Includes Excess Cash)
Dollar Amounts -- Original Payments
Excess Cash Payment 6000
Debt Balance After Principal, Tax, Add'l & Excess Payments
MFI CONFIDENTIAL 7/2/2003 Page 4
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 49 50 51 52 53 54 55
Projected Projected Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of Month of Month of
Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 96 89 80 70 59 47 32
Rentals 1,521 1,452 1,387 1,326 1,268 1,213 1,163
Monitoring 420 416 412 408 404 400 396
Fees & Other 211 203 194 187 179 172 165
Delinquent & Prepays
New Volumes 124 121 117 113 110 106 103
------- ------- ------- ------- ------- ------- -------
SUBTOTAL 2,373 2,280 2,191 2,103 2,020 1,938 1,858
------- ------- ------- ------- ------- ------- -------
Cash Paid to Suppliers and Employees
Payroll Related (434) (434) (652) (434) (434) (434) (434)
Other (1,178) (1,178) (1,256) (1,178) (1,178) (1,256) (1,178)
Intercompany Charges $460 $458 $455 $452 $449 $446 $443
Cash paid for Taxes
Sales (130) (125) (120) (115) (110) (106) (102)
Property (144) (31) (108) (21) (17) (14) (51)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35) (35) (35)
------- ------- ------- ------- ------- ------- -------
Net Cash Provided By Operating Activities 912 935 475 772 694 540 501
------- ------- ------- ------- ------- ------- -------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Cash used in Investing Activities (107) (107) (107) (107) (107) (107) (107)
------- ------- ------- ------- ------- ------- -------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- -- -- -- --
Tax Obligations -- Federal/State -- -- -- -- -- -- --
Repayment of Secured Debt (Revolving Credit) -- -- -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- -- -- --
Proposed Excess Cash Repayment -- -- -- -- -- -- --
Proposed Additional Debt Repayment -- Tax Refund -- -- -- -- -- -- --
Securitization Cash to Trust Account -- -- -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- -- -- --
Securitization Settlement
($ collateral/Servicer) -- -- -- -- -- -- --
Repayment of Capital Leases -- -- -- -- -- -- --
Payment of Dividends -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Cash Provided by (Used in) Financing
Activities -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------- -------
Net Increase (Decrease) in cash and cash
equivalents 805 828 368 665 587 433 394
Cash and Cash Equivalents beginning of period* 62,795 63,600 64,428 64,796 65,461 66,048 66,481
------- ------- ------- ------- ------- ------- -------
Cash and Cash Equivalents end of period* 63,600 64,428 64,796 65,461 66,048 66,481 66,875
======= ======= ======= ======= ======= ======= =======
Total Repayment -- Required
Total Repayment -- New Payment Schedule
(Includes Excess Cash)
Dollar Amounts -- Original Payments
Excess Cash Payment 6000
Debt Balance After Principal, Tax, Add'l &
Excess Payments
MICROFINANCIAL INCORPORATED -- EXHIBIT H
MONTHLY ROLLING CASHFLOW PROJECTION
AS OF JANUARY, 2003
{000'S} 56 57 58 59 60
Projected Projected Projected Projected Projected
Includes Default Interest and Fees Month of Month of Month of Month of Month of
Aug-03 Sep-03 Oct-03 Nov-03 Dec-03
Cashflows from Operating Activities
Cash Received from Customers
Lease Payments 18 3 1 0 0
Rentals 1,114 1,068 1,019 971 925
Monitoring 392 388 384 380 376
Fees & Other 158 151 145 140 135
Delinquent & Prepays
New Volumes 99 96 92 89 85
------- ------- ------- ------- -------
SUBTOTAL 1,780 1,706 1,640 1,579 1,521
------- ------- ------- ------- -------
Cash Paid to Suppliers and Employees
Payroll Related (652) (434) (434) (434) (434)
Other (1,178) (1,256) (1,178) (1,178) (1,256)
Intercompany Charges $440 $436 $433 $430 $628
Cash paid for Taxes
Sales (97) (93) (90) (86) (83)
Property (93) (61) (52) (22) (54)
Interest Paid (Net)
Revolver Loan Interest -- -- -- -- --
Subdebt Interest (35) (35) (35) (35) (35)
------- ------- ------- ------- -------
Net Cash Provided By Operating Activities 165 262 284 253 286
------- ------- ------- ------- -------
Cashflows from Investing Activities
Investment in Leased Equipment (100) (100) (100) (100) (100)
Investment in Inventory -- -- -- -- --
Investment in Direct Costs (7) (7) (7) (7) (7)
Investment in Service Contracts -- -- -- -- --
------- ------- ------- ------- -------
Net Cash used in Investing Activities (107) (107) (107) (107) (107)
------- ------- ------- ------- -------
Cashflows from Financing Activities
Tax Refunds -- Federal/State -- -- -- -- --
Tax Obligations -- Federal/State
Repayment of Secured Debt (Revolving Credit) -- -- -- -- --
Proposed Additional Debt Repayment -- -- -- -- --
Proposed Excess Cash Repayment -- -- -- -- --
Proposed Additional Debt Repayment -- Tax Refund
Securitization Cash to Trust Account -- -- -- -- --
Securitization Prepayments & Defaults -- -- -- -- --
Securitization Settlement
($ collateral/Servicer) -- -- -- -- --
Repayment of Capital Leases -- -- -- -- --
Payment of Dividends -- -- -- -- --
------- ------- ------- ------- -------
Net Cash Provided by (Used in) Financing
Activities -- -- -- -- --
------- ------- ------- ------- -------
Net Increase (Decrease) in cash and cash
equivalents 58 155 177 146 179
Cash and Cash Equivalents beginning of period* 66,875 66,932 67,087 67,264 67,410
------- ------- ------- ------- -------
Cash and Cash Equivalents end of period* 66,932 67,087 67,264 67,410 67,590
======= ======= ======= ======= =======
Total Repayment -- Required
Total Repayment -- New Payment Schedule
(Includes Excess Cash)
Dollar Amounts -- Original Payments
Excess Cash Payment 6000
Debt Balance After Principal, Tax, Add'l &
Excess Payments
MFI CONFIDENTIAL 7/2/2003 Page 1
SCHEDULE 2.8(A) 1st of each month At Closing Total
Jul-03 $4,700,000 $4,700,000
Aug-03 $4,500,000 $4,500,000
Sep-03 $4,700,000 $4,700,000
Oct-03 $4,700,000 $4,700,000
Nov-03 $4,700,000 $4,700,000
Dec-03 $4,500,000 $4,500,000
Jan-04 $4,500,000 $4,500,000
Feb-04 $4,700,000 $4,700,000
Mar-04 $4,900,000 $4,900,000
Apr-04 $4,800,000 $4,800,000
May-04 $4,700,000 $4,700,000
Jun-04 $4,700,000 $4,700,000
Jul-04 $4,700,000 $4,700,000
Aug-04 $4,600,000 $4,600,000
Sep-04 $4,600,000 $4,600,000
Oct-04 $4,600,000 $4,600,000
Nov-04 $4,600,000 $4,600,000
Dec-04 $4,600,000 $4,600,000
Jan-05 $4,600,000 $4,600,000
$88,400,000 $0 $88,400,000
