ARCADIA SERVICES, INC.
GRAYROSE, INC.
ARCADIA HEALTH SERVICES OF MICHIGAN, INC.
ARCADIA HEALTH SERVICES, INC.
ARCADIA EMPLOYEE SERVICES, INC.
AMENDED AND RESTATED CREDIT
AGREEMENT
DATED AS OF JULY 13,
2009
AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDED AND
RESTATED LOAN AGREEMENT, made as of the 13 day of July, 2009, by
and among ARCADIA SERVICES, INC., a Michigan corporation
(“Arcadia”), ARCADIA HEALTH SERVICES, INC., a Michigan
corporation (“Arcadia Health Services”), GRAYROSE,
INC., a Michigan corporation (“Grayrose”) and ARCADIA
HEALTH SERVICES OF MICHIGAN, INC., a Michigan corporation
(“Arcadia Health Michigan”) and ARCADIA EMPLOYEE
SERVICES, INC., a Michigan corporation (“Arcadia
Employee” and together with Arcadia, Arcadia Health Services,
Arcadia Health Michigan, and Grayrose, being collectively
identified as “Companies” and individually as a
“Company”) and Comerica Bank, a Michigan banking
corporation, of Detroit, Michigan (herein called
“Bank”);
A. Companies
and Bank are parties to that certain Credit Agreement dated
May 7, 2004 (“Prior Agreement”).
B. Companies
and Bank desire to amend and restate the Prior Agreement as set
forth below.
NOW, THEREFORE,
Bank and Companies agree that the Prior Agreement is amended and
restated to read as follows:
WITNESSETH:
For the purposes
of this Agreement the following terms will have the following
meanings:
“Advance”
shall mean a borrowing requested by Companies and made by Bank
under Section 2 of this Agreement, including any refunding or
conversions of such borrowings pursuant to Section 3.3 hereof,
and shall include a Prime-based Advance.
“Advance
Formula Agreement” shall mean the Advance Formula Agreement
dated even date herewith executed by Bank and Companies, as may be
amended, restated, supplemented or replaced from time to
time.
“Affiliate”
shall mean, with respect to any Person, any other Person directly
or indirectly controlling (including but not limited to all
directors and executive officers of such Person), controlled by, or
under direct or indirect common control with such Person. A Person
shall be deemed to control a corporation for the purposes of this
definition if such Person possesses, directly or indirectly, the
power (i) to vote 10% or more of the securities having
ordinary voting power for the election of directors of such
corporation or (ii) to direct or cause the direction
of
the management
and policies of such corporation, whether through the ownership of
voting securities, by contract or otherwise.
“Business
Day” shall mean any day on which commercial banks are open
for domestic and international business (including dealings in
foreign exchange) in Detroit.
“Capital
Expenditure” shall mean, without duplication, any payment
made directly or indirectly for the purpose of acquiring or
constructing fixed assets, real property or equipment which in
accordance with GAAP would be added as a debit to the fixed asset
account of the person making such expenditure, including, without
limitation, amounts paid or payable under any conditional sale or
other title retention agreement or under any lease or other
periodic payment arrangement which is of such a nature that payment
obligations of the lessee or obligor thereunder would be required
by generally accepted accounting principles to be capitalized and
shown as liabilities on the balance sheet of such lessee or
obligor.
“Capital
Lease” shall mean any lease of any property (whether real,
personal or mixed) by a Person as lessee which, in conformity with
GAAP, is, or is required to be accounted for as a capital lease on
the balance sheet of such Person, together with any renewals of
such leases (or entry into new leases) on substantially similar
terms.
“Consolidated”
or “Consolidating” shall, when used with reference to
any financial information pertaining to (or when used as a part of
any defined term or statement pertaining to the financial condition
of) Arcadia and its Subsidiaries, mean the accounts of Arcadia and
its Subsidiaries determined on a consolidated or consolidating
basis, as the case may be, all determined as to principles of
consolidation and, except as otherwise specifically required by the
definition of such term or by such statements, as to such accounts,
in accordance with generally accepted accounting principles applied
on a consistent basis and consistent with the financial statements,
if any, as at and for the fiscal year ended March 31,
2009.
“Debt”
shall mean as of any applicable time of determination thereof, the
total liabilities of a Person at such time, as determined in
accordance with GAAP.
“Default”
shall mean an event which with the giving of notice or passage of
time or both would constitute an Event of Default.
“Environmental
Laws” shall mean all federal, state and local laws including
statutes, regulations, ordinances, codes, rules, and other
governmental restrictions and requirements, relating to
environmental pollution, contamination or other impairment of the
environment or any hazardous or toxic substances of any nature.
These Environmental Laws shall include but not be limited to the
Federal Solid Waste Disposal Act, the Federal Clean Air Act, the
Federal Clean Water Act, the Federal Resource Conservation and
Recovery Act of 1976, the Federal Comprehensive Environmental
Response, Compensation and Liability Act of 1980, and the Federal
Superfund Amendments and Reauthorization Act of 1986.
“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as
amended, or any successor act or code.
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“Event of
Default” shall mean any of the Events of Default specified in
Section 10 hereof.
“GAAP”
shall mean, as of any applicable date of determination, generally
accepted accounting principles consistently applied, as in effect
on the date of this Agreement.
“Guarantors”
shall mean the Parent Guarantor and each other Person who/which on
or after the date hereof executes a Guaranty in favor of Bank and
“Guarantor” shall mean any of them.
“Guaranty”
shall mean any Guaranty by a Guarantor of the Indebtedness in form
and substance acceptable to Bank, as amended from time to time and
“Guaranties” means all of them.
“Indebtedness”
shall mean all loans, advances, indebtedness, obligations and
liabilities of Companies to Bank under this Agreement, together
with all other indebtedness, obligations and liabilities whatsoever
of Companies to Bank whether or not arising under or in connection
with the Loan Documents, whether matured or unmatured, liquidated
or unliquidated, direct or indirect, absolute or contingent, joint
or several, due or to become due, now existing or hereafter
arising.
“Letter of
Credit” shall have the meaning set forth in Section 2.9
of this Agreement.
“Letter of
Credit Reserve” shall mean as of any date of determination an
amount equal to the undrawn amount of all Letters of Credit plus
the unreimbursed amount of any draws under Letters of Credit
honored by Bank
“Loan
Documents” shall mean collectively, this Agreement, the Note,
the Guaranties, the Security Agreements, the Stock Pledge, the
Advance Formula Agreement, the Subordination Agreements and any
other instruments or agreements executed at any time pursuant to or
in connection with any such documents.
“Net
Income” shall mean, as of any date of determination, the net
income (or loss) of Arcadia and its Consolidated Subsidiaries for
the single quarter period ending on the date of determination,
plus, to the extent deducted in determining net income, the net
decrease in the sum of any deferred tax asset and deferred tax
valuation allowance accounts, and minus to the extent included in
determining net income, the net increase in the sum of any deferred
tax asset and deferred tax valuation allowance accounts, all as
determined in accordance with GAAP.
“Note”
shall mean the Revolving Credit Note.
“Ordinary
Course Liens” shall mean with respect to any
Person:
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(a)
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liens for taxes not yet due and
payable or which are being contested in good faith by appropriate
proceedings diligently pursued, provided that provision for the
payment of all such taxes has been made on the books of such Person
as may be required by GAAP;
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(b)
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mechanics’,
materialmen’s, banker’s, carriers’,
warehousemen’s and similar liens and encumbrances arising in
the ordinary course of business and securing obligations of such
Person that are not overdue for a period of more than
60 days
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or are being
contested in good faith by appropriate proceedings diligently
pursued, provided that in the case of any such contest (i) any
proceedings commenced for the enforcement of such liens and
encumbrances shall have been duly suspended; and (ii) such
provision for the payment of such liens and encumbrances has been
made on the books of such Person as may be required by
GAAP;
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(c)
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liens arising in connection with
worker’s compensation, unemployment insurance, old age
pensions and social security benefits and similar statutory
obligations which are not overdue or are being contested in good
faith by appropriate proceedings diligently pursued, provided that
in the case of any such contest (i) any proceedings commenced
for the enforcement of such liens shall have been duly suspended;
and (ii) such provision for the payment of such liens has been
made on the books of such Person as may be required by
GAAP;
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(d)
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(i) liens incurred in the
ordinary course of business to secure the performance of statutory
obligations arising in connection with progress payments or advance
payments due under contracts with the United States government or
any agency thereof entered into in the ordinary course of business
and (ii) liens incurred or deposits made in the ordinary
course of business to secure the performance of statutory
obligations, bids, leases, fee and expense arrangements with
trustees and fiscal agents and other similar obligations (exclusive
of obligations incurred in connection with the borrowing of money,
any lease-purchase arrangements or the payment of the deferred
purchase price of property), provided that full provision for the
payment of all such obligations set forth in clauses (i) and
(ii) has been made on the books of such Person as may be
required by GAAP; and
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(e)
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minor survey exceptions or minor
encumbrances, easements or reservations, or rights of others for
rights-of-way, utilities and other similar purposes, or zoning or
other restrictions as to the use of real properties, which do not
materially interfere with the business of such Person.
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“Parent
Guarantor” shall mean RKDA, Inc., a Michigan corporation, and
its successors and assigns.
“Person”
or “person” shall mean any individual, corporation,
partnership, joint venture, limited liability company, association,
trust, unincorporated association, joint stock company, government,
municipality, political subdivision or agency, or other
entity.
“Revolving
Credit” shall mean the revolving credit facility described in
Section 2 of this Agreement.
“Revolving
Credit Commitment Amount” shall mean Fourteen Million Dollars
($ 14,000,000).
“Revolving
Credit Maturity Date” shall mean August 1,
2011.
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“Revolving
Credit Note” shall mean the Note described in
Section 2.1 hereof made by Companies to Bank in the form
annexed to this Agreement as Exhibit
“C”.
“Security
Agreements” shall mean (i) the Security Agreements dated
May 7, 2004 executed by Arcadia, Arcadia Health, Arcadia
Health Michigan and Grayrose in favor of Bank, (ii) the
Security Agreement dated August 30, 2005 executed by Arcadia
Employee in favor of Bank, and (iii) the Security Agreement
(Deposit Account) dated July ___, 2009 executed by Arcadia, as each
may be amended, restated, supplemented or replaced from time to
time
“Stock
Pledge” shall mean the Security Agreement (Negotiable
Collateral) dated May 7, 2004 executed by Parent Guarantor
under which the Parent Guarantor granted Bank a first priority
security interest in all of the issued and outstanding capital
stock of Arcadia, as may be amended, restated, supplemented or
replaced from time to time.
“Subordinated
Debt” shall mean, as of any applicable time of determination,
any Debt of Companies (or any of them) which is subordinated in
priority of payment or other terms to any of the indebtedness of
Companies (or any of them) to Bank, in each case, pursuant to a
Subordination Agreement.
“Subordination
Agreement” shall mean a written agreement executed and
delivered by the holder of Subordinated Debt to, and in form and
detail satisfactory to, Bank, and includes without limitation the
Subordination Agreement dated even date herewith executed by
Arcadia Services, Inc and acknowledged by Companies.
“Subsidiary”
shall mean a corporation or other entity of which more than fifty
percent (50%) of the outstanding voting stock or other equity
interests is owned by a Company, either directly or indirectly,
through one or more intermediaries.
“Tangible
Effective Net Worth” shall mean, as of any applicable date of
determination, Tangible Net Worth as of such date plus an amount
equal to the outstanding principal amount of the Subordinated Debt
as of such date.
“Tangible
Net Worth” shall mean as of any applicable time of
determination thereof, the excess of (i) the net book value of
the assets of Companies at such time (excluding receivables from
officers, directors, employees or affiliates and excluding patents,
patent rights, trademarks, trade names, franchises, copyrights,
licenses, goodwill, deferred tax assets and all other intangible
assets of Companies at such time), after all appropriate deductions
in accordance with GAAP (including, without limitation, reserves
for doubtful receivables, obsolescence, depreciation and
amortization), over (ii) the sum of the total Debt of
Companies less Companies’ deferred tax liabilities at such
time, all as determined in accordance with GAAP on a Consolidated
basis.
2. THE
INDEBTEDNESS: Revolving Credit; Fees
2.1 Bank agrees to
make Advances to Companies from time to time from the effective
date hereof until the Revolving Credit Maturity Date, not to exceed
the lesser of the Revolving Credit Commitment Amount, as in effect
from time to time, or the amount of indebtedness permitted under
the Advance Formula Agreement in aggregate principal amount at any
one time outstanding. All of the Advances under the Revolving
Credit shall be evidenced by
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the Revolving
Credit Note under which advances, repayments and readvances may be
made, subject to the terms and conditions of this
Agreement.
2.2 The Revolving
Credit Note shall mature on the Revolving Credit Maturity Date and
each Advance made under the Revolving Credit Note shall bear
interest at the rate(s) et forth in the Revolving Credit Note. The
amount and date of each Advance, it’s applicable interest
rate, and the amount and date of any repayment shall be noted on
Bank’s records, which records will be conclusive evidence
thereof absent manifest error.
Companies may
request an Advance under the Revolving Credit as set forth in the
Revolving Credit Note.
2.3 The initial
Advance shall be used to repay in full the indebtedness outstanding
under that certain Revolving Credit Note dated August 30, 2005
made in the principal amount of $19,000,000 by the Companies
payable to Bank. The proceeds of all other Advances under the
Revolving Credit Note shall be used solely for working capital
purposes.
2.4 The aggregate
principal amount at any one time outstanding under the Revolving
Credit Note shall never exceed the formula set forth in the Advance
Formula Agreement or in any Advance Formula Agreement delivered by
Companies to Bank in substitution therefor. Companies shall
immediately make all payments necessary to comply with this
provision.
2.5 Companies
agree to pay Bank a non-refundable, unused fee on the average daily
balance of the unused portion of the Revolving Credit at the rate
per annum equal to one eighth of one percent (.125%) of the
Revolving Credit Commitment Amount for the average number of days
elapsed using a year of 360 days. The commitment fee shall be
payable quarterly in arrears on the first Business Day of each
March, June, September and December, commencing September 1,
2009, and on the Revolving Credit Maturity Date.
2.6 Companies
shall pay Bank a non-refundable closing fee of $14,000 on the date
of execution of this Agreement, which fee shall be deemed fully
earned by Bank upon execution of this Agreement by Companies and
Bank.
2.7 In addition to
direct Advances under the Revolving Credit Note to be provided to
Companies by Bank under and pursuant to Section 2.1 of this
Agreement, Bank further agrees to issue, or commit to issue, from
time to time, standby letters of credit for the account of
Companies (herein individually called a “Letter of
Credit” and collectively “Letters of Credit”) in
aggregate undrawn amounts not to exceed Five Hundred Thousand
Dollars ($500,000) at any one time outstanding; provided, however
that the sum of the aggregate amount of Advances outstanding under
the Revolving Credit Note plus the Letter of Credit Reserve shall
not exceed the Revolving Credit Commitment Amount at any time; and
provided further that no Letter of Credit shall, by its terms, have
an expiration date which is more than twelve (12) months after
issuance or which extends beyond the Revolving Credit Maturity
Date. In addition to the terms and conditions of this Agreement,
the issuance of any Letters of Credit also shall be subject to the
terms and conditions of any letter of credit applications and
agreements executed and delivered by Companies unto Bank with
respect thereto. Companies shall pay to Bank annually in advance a
fee equal to the 1.75% per annum of the amount of each Letter of
Credit. The sum
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of the
aggregate principal amount at any time outstanding under the
borrowing formula set forth in the Advance Formula Agreement.
Companies shall immediately make all payments necessary to comply
with this provision.
3.1 Companies
agree to furnish Bank prior to the initial borrowing under this
Agreement, in form and substance to be satisfactory to Bank, with
(i) certified copies of resolutions of the Boards of Directors
of Companies evidencing approval of the borrowings and transactions
contemplated hereunder; (ii) a certificate of good standing
from the state of each Company’s incorporation and from the
state(s) in which each of them is required to be qualified to do
business; (iii) the other Loan Documents; (iv) a
borrowing base report and (v) such other documents,
instruments and legal opinions as Bank may require.
3.2 As security
for all Indebtedness of Companies to Bank hereunder, Companies
agree to furnish, execute and deliver to Bank, or cause to be
furnished, executed and delivered to Bank, prior to or
simultaneously with the initial borrowing hereunder, in form to be
satisfactory to Bank and supported by appropriate resolution in
certified form authorizing same, the following:
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(a)
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The
Security Agreements;
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(b)
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The
Subordination Agreements;
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(c)
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The
Stock Pledge;
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(d)
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The
Guaranties;
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(e)
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Financing Statements required or
requested by Bank to perfect all security interests to be conferred
upon Bank under this Agreement and to accord Bank a perfected first
priority security position under the Uniform Commercial Code
(subject only to the encumbrances permitted hereunder);
and
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(f)
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Such other documents or agreements
of security and appropriate assurances of validity and perfected
first priority of lien or security interest as Bank may reasonably
request at any time.
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To the extent
that any of the Companies has heretofore given a security interest
to Bank to certain of the foregoing and such documents and
agreements comply with the requirements of this Agreement, it is
hereby agreed that such documents and agreements shall remain in
full force and effect for the purposes of this Agreement, but Bank
may, if it deems it necessary or desirable, require execution of a
new agreement or agreements or amendments to such
agreements.
3.3 As a condition
to the initial Advance, Companies shall have provided Bank evidence
of satisfaction of conditions precedent set forth in the commitment
letter dated June 23, 2009.
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4.
REPRESENTATIONS AND WARRANTIES
Each of the
Companies represents and warrants and such representations and
warranties shall be deemed to be continuing representations and
warranties during the entire life of this Agreement:
4.1 It is a
corporation duly organized and existing in good standing under the
laws of the jurisdiction of its incorporation and is duly qualified
to do business and in good standing in every jurisdiction in which
such qualification is material to its business and operation or the
ownership or lease of its properties; execution, delivery and
performance of this Agreement and other documents and instruments
required under this Agreement, and the issuance of the Note by
Companies are within its corporate powers, have been duly
authorized, are not in contravention of law or the terms of its
Articles of Incorporation or Bylaws, and do not require the consent
or approval of any governmental body, agency or authority; and this
Agreement and the other documents and instruments required under
this Agreement and the Note, when issued and delivered, will be
valid and binding in accordance with their terms.
4.2 The execution,
delivery and performance of this Agreement and any other documents
and instruments required under this Agreement, and the issuance of
the Note by Companies are not in contravention of the unwaived
terms of any indenture, agreement or undertaking to which any
Company is a party or by which any Company is bound.
4.3 Except as may
be set forth in Schedule 4.3, no litigation or other
proceeding before any court or administrative agency is pending, or
to the knowledge of its officers is threatened against Companies or
any Subsidiary of any of the Companies, the outcome of which could
materially impair any of the Companies’ or any
Subsidiary’s financial condition or their ability to carry on
their businesses taken as a whole.
4.4 There are no
security interests in, or liens, mortgages, or other encumbrances
on any of Companies’ or any Subsidiary’s assets, except
to Bank, or as permitted in this Agreement.
4.5 None of the
Companies nor any Subsidiary maintains or contributes to any
employee pension benefit plan subject to title IV of the
“Employee Retirement Income Security Act of 1974”
(herein called “ERISA”), except the plans described in
attached Schedule 4.5. There is no unfunded past
service liability of the pension plan and there is no accumulated
funding deficiency within the meaning of ERISA, or any existing
material liability with respect to any pension plan owed to the
Pension Benefit Guaranty Corporation (“PBGC”) or any
successor thereto, except any funding deficiency for which an
application to the PBGC for waiver is pending or for which a waiver
has been granted by the PBGC.
4.6 The financial
statements of Companies dated March 31, 2009, previously
furnished Bank, are complete and correct in all material respects
and fairly present the financial condition of Companies and their
consolidated Subsidiaries as of their respective dates; since
March 31, 2009, there has been no material adverse change in
the financial condition of any of the Companies or any of the
Subsidiaries; to the knowledge of its officers, none of the
Companies nor any of the Subsidiaries has any contingent
obligations (including any liability for taxes) not disclosed by or
reserved against in said financial statements and at the present
time
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there are no
material unrealized or anticipated losses from any present
commitment of any of the Companies or Subsidiaries.
4.7 All tax
returns and tax reports of Companies and each Subsidiary required
by law to have been filed have been duly filed or extensions
obtained, and all taxes, assessments and other governmental charges
or levies (other than those presently payable without penalty and
those currently being contested in good faith for which adequate
reserves have been established) upon Companies or any Subsidiary
(or any of its properties) which are due and payable have been paid
for which the failure to pay would materially adversely affect its
business or the value of its property or assets (taken as a whole).
The charges, accruals and reserves on the books of Companies and
the Subsidiaries in respect of the Federal income tax for all
periods are adequate in the opinion of Companies.
4.8 All of the
issued and outstanding capital stock of Arcadia is owned by the
Parent Guarantor. Except as disclosed on Schedule 4.8
annexed hereto, there are no Subsidiaries of any
Company.
4.9 Each Company
and its Subsidiaries are, in the conduct of their business, in
compliance in all material respects with all federal, state or
local laws, statutes, ordinances and regulations applicable to any
of them, the enforcement of which, if such Company or any
Subsidiary were not in compliance, would reasonably be expected to
materially adversely affect its business or the value of its
property or assets (taken as a whole). Each Company and its
Subsidiaries have all approvals, authorizations, consents,
licenses, orders and other permits of all governmental agencies and
authorities, whether federal, state or local, required to permit
the operation of their business as presently conducted, except such
approvals, authorizations, consents, licenses, orders and other
permits with respect to which the failure to have would reasonably
be expected to materially adversely affect its business or the
value of its property or assets (taken as a whole).
4.10 Except as may
be set forth in Schedule 4.10, none of the Companies
nor any Subsidiary is party to any litigation or administrative
proceeding, nor so far as is known by it is any litigation or
administrative proceeding threatened against it or any other
Company or Subsidiary, which in either case (A) asserts or
alleges that any of the Companies or any Subsidiary violated
Environmental Laws (as defined herein), (B) asserts or alleges
that any of the Companies or any Subsidiary is required to clean
up, remove, or take remedial or other response action due to the
disposal, depositing, discharge, leaking or other release of any
hazardous substances or materials, or (C) asserts or alleges
that any of the Companies or any Subsidiary is required to pay all
or a portion of the cost of any past, present, or future cleanup,
removal or remedial or other response action which arises out of or
is related to the disposal, depositing, discharge, leaking or other
release of any hazardous substances or materials by any of the
Companies or any Subsidiary.
4.11 To the best
of its knowledge, after due inquiry, except as otherwise previously
disclosed in writing by Companies to Bank, there are no conditions
existing currently or likely to exist during the term of this
Agreement which would subject any of the Companies or any
Subsidiary to material damages, penalties, injunctive relief or
cleanup costs under any applicable Environmental Laws or which
require or are likely to require material cleanup,
removal,
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remedial action
or other response pursuant to applicable Environmental Laws by any
of the Companies or any Subsidiary.
4.12 None of the
Companies nor any Subsidiary is subject to any judgment, decree,
order or citation related to or arising out of applicable
Environmental Laws and to the best of its knowledge, after due
inquiry, except as otherwise previously disclosed in writing to the
Bank, neither of the Companies nor any Subsidiary has been named or
listed as a potentially responsible party by any governmental body
or agency in a matter arising under any applicable Environmental
Laws.
4.13 Each of the
Companies and the Subsidiaries has all material permits, licenses
and approvals required under applicable Environmental
Laws.
4.14 None of the
Companies is an “Investment Company” within the meaning
of the Investment Company Act of 1940, as amended. None of the
Companies is engaged principally, or as one of its important
activities, directly or indirectly, in the business of extending
credit for the purpose of purchasing or carrying margin stock, and
none of the proceeds of any of the loans hereunder will be used,
directly or indirectly, for any purpose which would violate the
provisions of Regulation U or X of the Board of Governors of
the Federal Reserve System. Terms for which meanings are provided
in Regulation U of the Board of Governors of the Federal
Reserve System or any regulations substituted therefor, as from
time to time in effect, are used in this paragraph with such
meanings.
4.15 Each Company
has good and valid title to the property pledged, mortgaged or
otherwise encumbered or to be encumbered by it under the Loan
Documents to which such Company is a party.
4.16
Schedule 4.16 annexed hereto is a complete list of all
premises where tangible personal property of the Companies is
located.
Each of the
Companies covenants and agrees that it will, and it will cause each
of its Subsidiaries, so long as Bank may make any Advance under
this Agreement and thereafter so long as any Indebtedness remains
outstanding under this Agreement:
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(a)
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prompt notification of any condition
or event which constitutes or with the running of time and/or the
giving of notice would constitute an Event of Default under this
Agreement, and promptly inform the Bank of any material adverse
change in any of the Companies’ or any Subsidiary’s
financial condition;
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(b)
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as
soon as available and in any event within 30 days after and as
of the end of each month, the consolidated and consolidating
balance sheets and statements of profit and loss and surplus of the
Companies and their consolidated Subsidiaries, duly certified
(subject to year-end audit adjustments) by the chief financial
officer of each of the Companies as having been prepared in
accordance with GAAP
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consistent with those applied in the
preparation of the financial statements referred to in
Section 4.6;
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(c)
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as
soon as available and in any event within 45 days after and as
of the end of each month, the balance sheet and statements of
profit and loss and surplus of Arcadia Resources, Inc. and its
Consolidated Subsidiaries duly certified (subject to year-end audit
adjustments) by the chief financial officer of Arcadia Resources,
Inc. as having been prepared in accordance with the GAAP consistent
with those applied by Arcadia in the preparation of the financial
statements referred to in Section 4.6;
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(d)
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as
soon as available and in any event within 90 days after and as
of the end of each fiscal year of the Companies, consolidated and
consolidating audited financial statements of Companies and their
consolidated Subsidiaries, including a balance sheet, statements of
income and retained earnings and changes in financial position for
such year, prepared in accordance with GAAP and certified by
independent certified public accountants reasonably acceptable to
the Bank;
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(e)
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as
soon as available and in any event within 90 days after and as
of the end of each fiscal year of Arcadia Resources, Inc., a Nevada
corporation (“Resources”), (i) Resources’
form 10-K as of the end of such fiscal year, and
(ii) financial statements of Resources and its subsidiaries,
including a balance sheet, statements of income and retained
earnings and changes in financial position for such year, prepared
on a consolidated and consolidating basis in accordance with GAAP,
in such detail as Bank may reasonably require, and audited by
independent certified public accountants of recognized standing
selected by Resources and acceptable to Bank;
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