Item 1.01 Entry into a Material Definitive Agreement.
On
Under the Ally Facility, the Company is subject to financial covenants that
require the Company to maintain at least 10% of the credit line in cash and cash
equivalents, to maintain at least 10% of the credit line on deposit with
Advances under the Ally Facility will bear interest at a per annum rate designated from time to time by the Lender and will be determined using a 365/360 simple interest method of calculation, unless expressly prohibited by law. Advances under the Ally Facility, if not demanded earlier, are due and payable for each vehicle financed under the Ally Facility as and when such vehicle is sold, leased, consigned, gifted, exchanged, transferred, or otherwise disposed of. Interest under the Ally Facility is due and payable upon demand, but, in general, in no event later than 60 days from the date of request for payment.
Upon any event of default (including, without limitation, the Company's obligation to pay upon demand any outstanding liabilities of the Ally Facility), the Lender may, at its option and without notice to the Company, exercise its right to demand immediate payment of all liabilities and other indebtedness and amounts owed to the Lender and its affiliates by the Company and its affiliates.
The Ally Facility is secured by a grant of a security interest in certain vehicle inventory and other assets of the Company.
The foregoing description of the Ally Facility is qualified in its entirety by
reference to the full text of the Inventory Financing and Security Agreement and
the Addendum to the Inventory Financing and Security Agreement, which will be
filed as an exhibit to subsequent filings of the Company as required by
The Company filed a press release announcing the entry into the Ally Facility on
Item 1.02 Termination of a Material Definitive Agreement.
In connection with the entry into the Ally Facility, on
Item 2.03 Creation of a Direct Financial Obligation or an Obligation Under an
Off-balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.
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