Common use of Minimum Deposits Clause in Contracts

Minimum Deposits. Borrower shall maintain on deposit with Bank the lesser of $4,000,000 or 100% of cash in the form of certificate of deposits, money market accounts and/or checking accounts. For any period in which the minimum balance requirement is not kept, Borrower will pay to Bank a fee calculated at a rate of one percent (1%) per annum, based on the difference between the minimum required balance and the actual average daily balance during the period. The fee will be calculated quarterly and shall be due within 15 days of each quarter end. 10. Section 6.9 entitled "Liquidity Coverage" is hereby amended and restated in its entirety to read: Borrower shall maintain, as of the last day of each calendar month, a ratio of (a)(i) unrestricted cash and cash equivalents plus (ii) 80% of Eligible Accounts minus (iii) outstanding Revolving Advances of not less than (b)(i) two (2) times the aggregate outstanding amount of all Equipment Advances and Non-Revolving Advances under Section 2.2 and 2.3 through the month ending June 30, 1999, then (ii) 1.5 times the aggregate outstanding amount of all Equipment Advances and Non-Revolving Advances under Section 2.2. and 2.3 through the month ending December 31, 1999, then (iii) two (2) times the aggregate outstanding amount of all Equipment Advances and Non-Revolving Advances under Section 2.2. and 2.3, thereafter. Notwithstanding the foregoing, at such time as Borrower achieves a Debt Service Coverage ratio of 1.50 to 1.00 for two (2) consecutive quarters, the Liquidity Coverage shall be replaced by a Debt Service Coverage ratio of 1.50 to 1.00, measured on a quarterly basis.