Common use of Existing Events of Default Clause in Contracts

Existing Events of Default. The Credit Parties have failed to comply with certain requirements of the Loan Agreement and the other Loan Documents resulting in the occurrence of certain Defaults and/or Events of Default under the Loan Agreement (and the other Loan Documents) as set forth below in this Section 2, in each case, arising from events or circumstances existing on or prior to the date hereof (each an “Existing Default” and collectively, the “Existing Defaults”): 2.1 Liquidity having been less than $10,000,000 as of any relevant date of determination on or prior to the date hereof; 2.2 any “going concern” concern qualification or opinion included in the auditor’s report accompanying the Parent Entity’s audited annual financial statements for the fiscal year ended December 31, 2024; 2.3 the Total Advance Rate having exceeded 120% as of the end of any fiscal month as reflected in the applicable Monthly Servicing Report and the Borrower not having deposited funds in the Total Advance Rate Reserve Account to reduce the Total Advance Rate to the maximum permitted rate; 2.4 the Tangible Net Worth having been less than ($50,000,000) as of end of any fiscal month; and 2.5 any representation, statement or warranty made, or deemed to have been made, including in any Borrowing Base Certificate, not being true and correct (or omitting facts necessary to make such statements not misleading), in each case, as such representation, statement or warranty relates to an Existing Default, and any Borrowing Base Certificates being delivered signed and/or uncertificated in light of such Existing Defaults.

Existing Events of Default. The Credit Parties have failed (or expect to fail) to comply with certain requirements of the Loan Agreement and the other Loan Documents resulting in the occurrence of certain Defaults and/or Events of Default under the Loan Agreement (and the other Loan Documents) as set forth below in this Section 2, in each case, arising from events or circumstances existing on or prior to the date hereof (or, in the case of Section 2.3, after the date hereof with respect to the measurement period ending April 30, 2025) (each an “Existing Default” and collectively, the “Existing Defaults”): 2.1 Liquidity having been less than $10,000,000 as of any relevant date of determination on or prior to the date hereof; 2.2 any “going concern” concern qualification or opinion included in the auditor’s report accompanying the Parent Entity’s audited annual financial statements for the fiscal year ended December 31, 2024; 2.3 the Total Advance Rate having exceeded 120% as of the end of any fiscal month as reflected in the applicable Monthly Servicing Report and the Borrower not having deposited funds in the Total Advance Rate Reserve Account to reduce the Total Advance Rate to the maximum permitted rate; 2.4 the Tangible Net Worth having been less than ($50,000,000) as of end of any fiscal month; and 2.5 any representation, statement or warranty made, or deemed to have been made, including in any Borrowing Base Certificate, not being true and correct (or omitting facts necessary to make such statements not misleading), in each case, as such representation, statement or warranty relates to an Existing Default, and any Borrowing Base Certificates being delivered signed and/or uncertificated in light of such Existing Defaults.

Existing Events of Default. The Credit Parties have failed to comply with certain requirements of the Loan Agreement and the other Loan Documents resulting in the occurrence of certain Defaults and/or Events of Default under the Loan Agreement (and the other Loan Documents) as set forth below in this Section 2, in each case, arising from events or circumstances existing on or prior to the date hereof (each an “Existing Default” and collectively, the “Existing Defaults”): 2.1 Liquidity having been less than $10,000,000 as of any relevant date of determination on or prior to the date hereof; 2.2 any “going concern” concern qualification or opinion included in the auditor’s report accompanying the Parent Entity’s audited annual financial statements for the fiscal year ended December 31, 2024; 2.3 the Total Advance Rate having exceeded 120% as of the end of any fiscal month as reflected in the applicable Monthly Servicing Report and the Borrower not having deposited funds in the Total Advance Rate Reserve Account to reduce the Total Advance Rate to the maximum permitted rate; 2.4 the Tangible Net Worth having been less than ($50,000,000) as of end of any fiscal month; and 2.5 any representation, statement or warranty made, or deemed to have been made, including in any Borrowing Base Certificate, not being true and correct (or omitting facts necessary to make such statements not misleading), in each case, as such representation, statement or warranty relates to an Katapult – Limited Waiver and Amendment Agreement Existing Default, and any Borrowing Base Certificates being delivered signed and/or uncertificated in light of such Existing Defaults.