11-14-01 2. LOAN AGREEMENT - Laserfiche WebLink

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(c) So long as the Borrower is otherwise in full compliance with its other obligations under this Agreement,it shall not constitute an Event of Default that Net Revenues Available for Debt Service for any calendar quarter are less than the coverage requirements described above, unless for any consecutive twelve calendar month period ending on or after June 30,2004,Net Revenues Available for Debt Service are less than Debt Service Requirements. Section 6.14 Limitations on Indebtedness. The Borrower covenants that after the Date of Issuance of the Series 2001 Bonds it will not, directly or indirectly, incur any Indebtedness (secured or unsecured)except as provided in Sections 6.15, 6.16, 6.17, 6.18, and 6.19. Section 6.15 Short-Term Indebtedness. The Borrower may incur such Short-Term Indebtedness as in the Borrower's judgment may be deemed expedient to provide for working capital, provided that Short-Term Indebtedness when incurred shall not cause the total Short-Term Indebtedness in the aggregate then outstanding to exceed 5%of the Gross Revenues of the Borrower for the preceding Fiscal Year for which annual audited financial statements have been prepared. Short-Term Indebtedness may be secured by collateral comprising accounts receivable, but in no other manner. The Borrower shall give prompt written notice to the Trustee of the incurrence of more than$150,000 in the aggregate of Short-Term Indebtedness. Section 6.16 Interim Indebtedness. The Borrower may incur Interim Indebtedness by borrowing money on an interim basis to provide temporary financing of Improvements for which the City shall have previously agreed to provide permanent financing by the issuance of Additional Bonds therefor or for which other lenders shall have previously agreed to provide permanent financing, but only after the right of the City to issue Additional Bonds has been established pursuant to the Indenture or the right of the Borrower to enter into the permanent financing has been established in accordance with Section 6.17 hereof. No property or assets of the Borrower may secure Interim Indebtedness. Section 6.17 Additional Senior Indebtedness. After the Date of Issuance of the Series 2001 Bonds, and, unless waived by a Majority of Holders, so long as no Event of Default has occurred and is continuing,the Borrower may incur Senior Indebtedness only as provided in this Section and only for the purpose of(i)refunding Outstanding Bonds,(ii)refinancing outstanding Senior Indebtedness,(iii)financing or refinancing the design, acquisition, construction, development and equipping of Improvements, or(iv) financing or refinancing the design, acquisition, construction, development and equipping of additional senior residential or health care related facilities to be owned and operated by the Borrower. The Borrower may incur Senior Indebtedness in amounts which are sufficient, in addition to paying the cost of accomplishing the purpose for which the Senior Indebtedness was incurred,to pay the costs of the Borrower in incurring such Senior Indebtedness,to fund a reserve fund for the payment of such Senior Indebtedness (or related Bonds)and to fund interest payable on such Senior Indebtedness for a period of time not to exceed six months beyond the completion of construction of any Improvements,but only upon complying with the following requirements: (a) Before incurring or otherwise becoming liable in respect of any Senior Indebtedness,the Borrower shall furnish the Trustee: (i) a Certificate of an Authorized Borrower Representative which shall: (A)state the general purpose for which such Senior Indebtedness is to be incurred; (B) describe the Improvements or facilities to be financed or refinanced thereby or the Outstanding Bonds to be refunded thereby or the outstanding Senior Indebtedness to be refinanced thereby,as the case may -47-