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Exhibit 10.1
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001 - FTCI
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Fifth Third Bank
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Revolving Note
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OFFICER No. 04009
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NOTE No. 0902074749-00026
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$2,000,000.00
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January 6, 2009
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(Effective Date)
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1. PROMISE TO PAY. On
or before August 1, 2010 (the "Maturity Date"), the
undersigned, Streamline Health, Inc., an Ohio corporation located
at 10200 Alliance Road Suite 200, Cincinnati, Hamilton County,
Ohio 45242 ("Borrower") for value received, hereby promises to pay
to the order of Fifth Third Bank, an Ohio banking corporation
located at 38 Fountain Square Plaza, Cincinnati, Hamilton County,
Ohio 45263 for itself and as agent for any affiliate of Fifth Third
Bancorp (together with its successors and assigns, the "Lender")
the sum of Two Million and 00/100 Dollars ($2,000,000.00) (the
"Borrowing"), plus interest as provided herein, less such amounts
as shall have been repaid in accordance with this Note. The
outstanding balance of this Note shall appear on a supplemental
bank record and is not necessarily the face amount of this Note,
which record shall evidence the balance due pursuant to this Note
at any time. Principal and interest payments shall be initiated by
Lender in accordance with the terms of this Note from
Borrower’s account through BillPayer 2000®. Borrower
hereby authorizes Lender to initiate such payments from
Borrower’s account located at Fifth Third Bank, routing
number 042000314 account number xxxxx. Borrower acknowledges and
agrees that use of BillPayer 2000® shall be governed by the
BillPayer 2000® Terms and Conditions, a copy of which Borrower
acknowledges receipt. Borrower further acknowledges and agrees to
maintain payments hereunder through BillPayer 2000® throughout
the term of this Note. Each payment hereunder may be applied in the
following order accrued interest, principal, fees, charges and
advanced costs. Subject to the terms and conditions hereof and in
reliance upon the representations and warranties of Borrower
herein, Lender hereby extends to Borrower a line of credit facility
pursuant to which Lender, in its reasonable discretion, may make
loans hereunder to Borrower, on a revolving basis and upon
Borrower’s request from time to time during the term of this
Note (each, a "Revolving Loan"), provided that: (a) the
aggregate principal amount borrowed hereunder at any time shall not
exceed the lesser of (i) the Borrowing, or (ii) the Borrowing
Base (as defined below) and (b) no Event of Default shall
exist or be caused thereby. Lender may create and maintain reserves
from time to time based on such credit and collateral
considerations as Lender may deem appropriate. Borrower may borrow,
prepay, in whole or in part, and reborrow hereunder, provided that,
in the event that the principal amount of all Revolving Loans
outstanding at any one time under this Note shall exceed the
foregoing limits, Borrower shall immediately repay the amount of
such excess to Lender in cash. In the event Borrower fails to pay
such excess, Lender may, in its discretion, setoff such amount
against Borrower’s accounts at Lender. Borrower may request a
Revolving Loan by written notice to Lender, via facsimile
transmission, electronic mail or otherwise, no later than
10:00 a.m. local time on the date Borrower shall request that
such Revolving Loan be advanced, which written request shall
include a Borrowing Base Certificate certified by the Borrower or
financial officer of Borrower that sets forth the calculation of
the Borrowing Base as of such date if requested or required by
Lender. Lender shall make each Revolving Loan by crediting the
amount thereof to Borrower’s account at Lender. The entire
principal balance, together with all accrued and unpaid interest
and any other charges, advances and fees, if any, Outstanding
hereunder, shall be due and payable in full on the earlier of the
Maturity Date or upon acceleration of the Note. The principal sum
outstanding shall bear interest from the date of the first advance
until paid at a floating rate of interest equal to the percent per
annum set forth below (the "Interest Rate"), which rate of interest
will fluctuate on a periodic basis as provided herein to the rate
specified by the following table based upon the ratio of
Borrower’s Trailing Twelve Month EBITDA (TTM EBITDA):
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PROMISSORY-NOTE © Fifth Third Bancorp 2001M
(12/08)
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TTM EBITDA
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Then Interest Rate Equals
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Zero to $300,000.00
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Prime Rate plus 3.00%
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Greater than $300,000 but less than or equal to $700,000
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Prime Rate plus 2.00%
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Greater than $700,000 but less than or equal to $1,200,000
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Prime Rate plus 1.00%
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Greater than $1,200,000 but less than or equal to $1,500,000
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Prime Rate
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Greater than $1,500,000 but less than or equal to $2,500,000
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Prime Rate minus 0.50%
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Greater than $2,500,000
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Prime Rate minus 1.00%
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Interest rate changes based upon changes in the foregoing chart
will be made effective as of the date of the first advance
hereunder and on the first day of the calendar month following the
review by Lender of Borrower’s monthly financial statements
detailing compliance with the above-mentioned financial
measurement. As used herein, Prime Rate shall mean the rate
established from time to time by Fifth Third Bank at its principal
office as its "Prime Rate", whether or not Fifth Third Bank shall
at times lend to borrowers at lower rates of interest, or if there
is no such prime rate, then such other rate as may be substituted
by Fifth Third Bank for the prime rate. In addition to changes
occurring pursuant to fluctuations in the foregoing chart, the
interest rate charged hereunder shall change automatically upon
each change in the Prime Rate. Interest shall be calculated based
on a 360-day year and charged for the actual number of days
elapsed, and shall be payable on the 1st day of each month
beginning on September 1, 2008. Notwithstanding any provision
to the contrary in this Note, in no event shall the interest rate
charged on the Borrowing exceed the maximum rate of interest
permitted under applicable state and/or federal usury law. Any
payment of interest that would be deemed unlawful under applicable
law for any reason shall be deemed received on account of, and will
automatically be applied to reduce, the principal sum outstanding
and any other sums (other than interest) due and payable to Lender
under this Note, and the provisions hereof shall be deemed amended
to provide for the highest rate of interest permitted under
applicable law. 2. USE OF
PROCEEDS. Borrower certifies that the proceeds of this loan are
to be used for business purposes.
3. RENEWAL. This Note is
issued, not as a payment toward, but as a continuation of, the
obligations of Borrower to Lender pursuant to that certain note
dated July 30, 2008, in the principal amount of $2,000,000.00
(together with all prior amendments thereto or restatements thereof
the "Prior Note"). Accordingly, this Note shall not be construed as
a novation or extinguishment of, the obligations arising under the
Prior Note, and its issuance shall not affect the priority of any
security interest granted in connection with the Prior Note.
4. UNUSED COMMITMENT FEE
may charge, and Borrower agrees to pay the following fees at the
times stated below: On the 30th day of each May, August, November,
and February of each year that Obligations (defined herein) remain
outstanding, an unused commitment fee, to be determined as follows:
the average daily amount of the Borrowing unused by Borrower for
the previous three-month period as measured on each April 30,
July 31, October 31, and January 31, multiplied by
0.0035 (35 basis points). 5.
REPRESENTATIONS AND WARRANTIES. Borrower hereby warrants and
represents to Lender the following:
(a) Organization and
Qualification. Borrower is duly organized, validly existing and
in good standing under the laws of the State of its incorporation,
has the power and authority to carry on its business and to enter
into and perform all documents relating to this loan transaction,
and is qualified and licensed to do business in each jurisdiction
in which such qualification or licensing is required. All
information provided to Lender with respect to Borrower and its
operations is true and correct.
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PROMISSORY-NOTE © Fifth Third Bancorp 2001M
(12/08)
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- 2 -
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(b) Due Authorization. The
execution, delivery and performance by Borrower of the Loan
Documents have been duly authorized by all necessary corporate
action, and shall not contravene any law or any governmental rule
or order binding on Borrower, or the articles of incorporation and
code of regulations or by-laws of Borrower, nor violate any
agreement or instrument by which Borrower is bound nor result in
the creation of a Lien on any assets of Borrower except the Lien
granted to Lender herein. Borrower has duly executed and delivered
to Lender the Loan Documents and they are valid and binding
obligations of Borrower enforceable according to their respective
terms, except as limited by equitable principles and by bankruptcy,
insolvency or similar laws affecting the rights of creditors
generally. No notice to, or consent by, any governmental body is
needed in connection with this transaction.
(c) Litigation. There are no
suits or proceedings pending or threatened against or affecting
Borrower, and no proceedings before any governmental body are
pending or threatened against Borrower except as otherwise
specifically disclosed to Lender on or prior to the Effective Date
or as set forth on any Litigation Exhibit which may be attached
hereto. (d) Business. Borrower
is not a party to or subject to any agreement or restriction that
may have a material adverse effect on Borrower’s business,
properties or prospects. Borrower has all franchises,
authorizations, patents, trademarks, copyrights and other rights
necessary to advantageously conduct its business. They are all in
full force and effect and are not in known conflict with the rights
of others. (e) Licenses, etc.
Borrower has obtained any and all licenses, permits, franchises,
governmental authorizations, patents, trademarks, copyrights or
other rights necessary for the ownership of its properties and the
advantageous conduct of its business. Borrower possesses adequate
licenses, patents, patent applications, copyrights, trademarks,
trademark applications, and trade names to continue to conduct its
business as heretofore conducted by it, without any conflict with
the rights of any other person or entity. All of the foregoing are
in full force and effect and none of the foregoing are in known
conflict with the rights of others.
(f) Laws. Borrower is in
material compliance with all laws, regulations, rulings, orders,
injunctions, decrees, conditions or other requirements applicable
to or imposed upon Borrower by any law or by any governmental
authority, court or agency. (g)
Title. Borrower has good and marketable title to the assets
reflected on the most recent balance sheet submitted to Lender,
free and clear from all liens and encumbrances of any kind, except
for (collectively, the "Permitted Liens") (a) current taxes
and assessments not yet due and payable, (b) liens and
encumbrances, if any, reflected or noted on such balance sheet or
notes thereto, (c) assets disposed of in the ordinary course
of business, and (d) any security interests, pledges,
assignments or mortgages granted to Lender to secure the repayment
or performance of the Obligations.
(h) Subsidiaries and
Partnerships. Borrower has no subsidiaries and is not a party
to any partnership agreement or joint venture agreement.
6. AFFIRMATIVE
COVENANTS. Borrower covenants with, and represents and warrants
to, Lender that, from and after the execution date of the Loan
Documents until the Obligations are paid and satisfied in full:
(a) Access to Business
Information. Borrower shall maintain proper books of accounts
and records and enter therein complete and accurate entries and
records of all of its transactions in accordance with generally
accepted accounting principles and give representatives of Lender
access thereto at all reasonable times, including permission to:
(a) examine, copy and make abstracts from any such books and
records and such other information which might be helpful to Lender
in evaluating the status of the Obligations as it may reasonably
request from time to time, and (b) communicate directly with
any of Borrower’s officers, employees, agents, accountants or
other financial advisors with respect to the business, financial
conditions and other affairs of the Borrower.
(b) Inspection of Collateral.
Borrower shall give Lender reasonable access to the Collateral and
the other property securing the Obligations for the purpose of
performing examinations thereof and to verify its condition or
existence.
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PROMISSORY-NOTE © Fifth Third Bancorp 2001M
(12/08)
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- 3 -
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(c) Financial Statements.
Borrower shall maintain a standard and modern system for accounting
and shall furnish to Lender. (i)
Within 120 days after the end of each fiscal year, a copy of
Borrower’s internally prepared consolidated financial
statements for that year in a form reasonably acceptable to Lender,
prepared and certified as complete and correct, subject to changes
resulting from year-end adjustments, by the principal financial
officer of Borrower; (ii) With the
statements submitted above, a certificate signed by the Borrower,
(i) stating that no Event of Default specified herein, nor any
event which upon notice or lapse of time, or both would constitute
such an Event of Default, has occurred, or if any such condition or
event existed or exists, specifying it and describing what action
Borrower has taken or proposes to take with respect thereto, and
(ii) setting forth, in summary form, figures showing the
financial status of Borrower in respect of the financial
restrictions contained herein; (iii)
Immediately upon any officer of Borrower obtaining knowledge of any
condition or event which constitutes or, after notice or lapse of
time or both, would constitute an Event of Default, a certificate
of such person specifying the nature and period of the existence
thereof, and what action Borrower has taken or is taking or
proposes to take in respect thereof;
(iv) Within 20 days after the
end of each month, Borrower shall deliver to Lender an accounts
receivable aging report in form and substance reasonably acceptable
to Lender; All of the statements referred to in (i) and
(iv) above shall be in conformance with generally accepted
accounting principles and give representatives of Lender access
thereto at all reasonable times, including permission to examine,
copy and make abstracts from any such books and records and such
other information which might be helpful to Lender in evaluating
the status of the loans as it may reasonably request from time to
time. On the execution date hereof and within 20 days after
the end of each calendar month, Borrower shall deliver to Lender a
Borrowing Base Certificate in the form regularly used by
Lender’s commercial loan customers. With all financial
statements delivered to Lender as provided in (i) and
(iv) above, Borrower shall deliver to Lender a Financial
Statement Compliance Certificate in addition to the other
information set forth therein, which certifies the Borrower’s
compliance with the financial covenants set forth herein and that
no Event of Default has occurred. If at any time Borrower has any
additional subsidiaries which have financial statements that could
be consolidated with those of Borrower under generally accepted
accounting principles, the financial statements required by
subsections (i) and (iv) above shall be the financial
statements of Borrower and all such subsidiaries prepared on a
consolidated and consolidating basis.
(d) Condition and Repair.
Borrower shall maintain its equipment and all Collateral used in
the operation of its business in good repair and working order and
shall make all appropriate repairs, improvements and replacements
thereof so that the business carried on in connection therewith may
be properly and advantageously conducted at all times.
(e) Insurance. At its own
cost, Borrower shall obtain and maintain insurance against
(a) loss, destruction or damage to its properties and business
of the kinds and in the amounts customarily insured against by
corporations with established reputations engaged in the same or
similar business as Borrower and, in any event, sufficient to fully
protect Lender’s interest in the Collateral, and (b)
insurance against public liability and third party property damage
of the kinds and in the amounts customarily insured against by
corporations with established reputations engaged in the same or
similar business as Borrower. All such policies shall (i) be
issued by financially sound and reputable insurers, (ii) name
Lender as an additional insured and, where applicable, as loss
payee under a Lender loss payable endorsement satisfactory to
Lender, and (iii) shall provide for thirty (30) days written notice
to Lender before such policy is altered or canceled. All of the
insurance policies required hereby shall be evidenced by one or
more Certificates of Insurance delivered to Lender by Borrower on
the Closing Date and at such other times as Lender may request from
time to time.
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