Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
On
Pursuant to the PSA, the Subsidiaries agree to sell eligible accounts receivable
to the Lender for an amount equal to the face amount of each account receivable
less a reserve percentage. The maximum amount potentially available to be
deployed by the Lender at any given time is
The PSA provides for the payment of fees by the Subsidiaries and includes customary representations and warranties, indemnification provisions, covenants and events of default. Subject in some cases to cure periods, amounts outstanding under the PSA may be accelerated for typical defaults including, but not limited to, the failure to make payments when due, the failure to perform any covenant, the inaccuracy of representations and warranties, the occurrence of debtor-relief proceedings, and the occurrence of unpermitted liens against the purchased accounts receivable and collateral. The Subsidiaries have granted the Lender a security interest in all of their respective personal property to secure their obligations under the PSA.
The PSA provides for an initial twelve (12) month term, followed by automatic annual renewal terms unless the Subsidiaries provide written notice pursuant to the PSA prior to the end of any term.
In connection with the PSA, the Subsidiaries delivered a Guaranty (the "Cross Guaranty"), cross-guarantying the prompt payment and performance of the liabilities and obligations of the other Subsidiary to the Lender under the PSA, and the Company delivered a Commercial Guaranty (the "Parent Guaranty") to the Lender, guaranteeing the prompt payment and performance of the liabilities and obligations of the Subsidiaries to the Lender under the PSA.
The foregoing summary of the PSA, the Cross Guaranty, and the Parent Guaranty do not purport to be complete and are qualified in their entirety by reference to the text of the PSA, the Cross Guaranty, and the Guaranty, copies of which are filed as Exhibits 10.1, 10.2, and 10.3 hereto and incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits Exhibit No. Description 10.1* Invoice Purchase and Security Agreement between the Subsidiaries and the Lender datedNovember 22, 2022 10.2 Guaranty by the Subsidiaries in favor of the Lender datedNovember 22, 2022 10.3 Commercial Guaranty by the Company in favor of the Lender datedNovember 22, 2022 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Certain schedules and similar attachments have been omitted pursuant to Item
601(a)(5) of Regulation S-K.
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