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Revolving Note

Promissory Note

Revolving Note | Document Parties: STREAMLINE HEALTH SOLUTIONS INC. You are currently viewing:
This Promissory Note involves

STREAMLINE HEALTH SOLUTIONS INC.

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Title: Revolving Note
Date: 1/9/2009
Industry: Computer Networks     Sector: Technology

Revolving Note, Parties: streamline health solutions inc.
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Exhibit 10.1

     
 

 

 

 

 

001 - FTCI

 

Fifth Third Bank

 

 

 

Revolving Note

 
 

 

 

OFFICER No. 04009

 

NOTE No. 0902074749-00026

$2,000,000.00

 

January 6, 2009

 

 

(Effective Date)

     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):

     
 

 

 

 

 

PROMISSORY-NOTE © Fifth Third Bancorp 2001M (12/08)

 

 

 

 

 


 

 

 

 

TTM EBITDA

 

Then Interest Rate Equals

Zero to $300,000.00

 

Prime Rate plus 3.00%

 

 

 

Greater than $300,000 but less than or equal to $700,000

 

Prime Rate plus 2.00%

 

 

 

Greater than $700,000 but less than or equal to $1,200,000

 

Prime Rate plus 1.00%

 

 

 

Greater than $1,200,000 but less than or equal to $1,500,000

 

Prime Rate

 

 

 

Greater than $1,500,000 but less than or equal to $2,500,000

 

Prime Rate minus 0.50%

 

 

 

Greater than $2,500,000

 

Prime Rate minus 1.00%

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.

     
 

 

 

 

 

PROMISSORY-NOTE © Fifth Third Bancorp 2001M (12/08)

 

- 2 -

 

 

 


 

     (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.

     
 

 

 

 

 

PROMISSORY-NOTE © Fifth Third Bancorp 2001M (12/08)

 

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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.

     
 

 

 

 

 

PROMISSORY-NOTE ©

             
 
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