Questionnaire [Sections 13 or 15(d)]

6. Notes Payable

Rotating Credit Premises

On August 5, 2020, QRHC and specific of their residential subsidiaries joined into that loan, protection and Guaranty arrangement (the “BBVA Loan Agreement”) with BBVA American, as a lender, so when management broker, collateral agent, and giving bank, that provides for a credit facility (the “ABL Facility”) comprising the immediate following:

An asset-based revolving credit center inside the optimal principal number of $15.0 million with a sublimit for issuance of characters of credit score rating of up to 10% regarding the maximum principal quantity of payday loans CO the revolving credit score rating establishment. Each loan in rotating credit score rating establishment contains interest, on borrowers’ alternative, at either the bottom speed, and the Applicable Margin, or even the LIBOR financing speed for all the Interest Period essentially, and the relevant Margin, in each case as explained from inside the BBVA financing contract. The maturity day associated with the revolving credit score rating facility is actually August 5, 2025. The revolving credit score rating center includes an accordion element permitting the revolving credit premises are enhanced by as much as ten dollars million.

a devices financing facility for the optimum major number of $2.0 million. Financing according to the products mortgage establishment may be wanted at any time until August 5, 2023. Each financing according to the equipment mortgage premises carries interest, from the consumers’ solution, at either the beds base speed, plus 1.75percent, or perhaps the LIBOR Lending rates for any Interest course in place, plus 2.75percent. The maturity date from the equipment financing center are August 5, 2025.

Select of QRHC’s domestic subsidiaries are borrowers within the BBVA mortgage contract. QRHC plus one of the residential subsidiaries become guarantors according to the BBVA mortgage contract. As safety for obligations on the individuals underneath the BBVA mortgage arrangement, (i) the consumers under the BBVA mortgage Agreement posses issued a first priority lien on considerably all their tangible and intangible private land, including a pledge on the investment stock and membership appeal, as appropriate, of particular of QRHC’s drive and secondary subsidiaries, and (ii) the guarantors according to the BBVA Loan contract has provided an initial concern lien throughout the capital stock and membership welfare, as appropriate, of particular of QRHC’s immediate and indirect residential subsidiaries.

The BBVA financing arrangement have particular monetary covenants, such as at least fixed charge insurance ratio. Besides, the BBVA financing arrangement includes negative covenants restricting, among other things, extra indebtedness, deals with affiliates, additional liens, business of property, dividends, investment and advances, prepayments of obligations, mergers and acquisitions, alongside matter customarily constrained this kind of agreements. The BBVA Loan contract also incorporates traditional events of standard, including installment defaults, breaches of representations and warranties, covenant non-payments, events of case of bankruptcy and insolvency, modification of control, and problems of any guaranty or protection document giving support to the BBVA mortgage arrangement to be in complete energy and result. Upon the incident of a meeting of default, the exceptional duties in BBVA financing Agreement is accelerated and start to become right away because of and payable.

The ABL center contains interest, at all of our alternative, at either the Base price, as described inside the BBVA mortgage Agreement, plus a margin starting from 0.75percent to 1.25per cent (3.0percent since September 30, 2020), and/or LIBOR credit rates when it comes to interest duration ultimately, plus a margin including 1.75% to 2.25percent (no borrowings by September 30, 2020).

Regarding the the ABL center, we settled BBVA United States Of America a charge of $50,000 and sustained additional direct prices of around $166,877, which are getting amortized over the lifetime of the ABL center.

The BBVA Loan arrangement changed our very own Loan, safety and Guaranty contract, outdated since March 24, 2017, with people financial, National organization (the “Citizens mortgage Agreement”), that has been paid down and ended efficient August 5, 2020. We recorded $167,964 in control on extinguishment of financial obligation in connection with this financing cancellation, such as the write-off of this unamortized part of financial obligation issuance bills and charge straight linked to the financing benefit.