Note Payable. The Company has a note payable to a bank which is payable in full in April 1998. Interest is payable monthly at the bank's prime rate plus 1.75% (effective rate of 10.25% as of July 31, 1997). The note is collateralized by substantially all of the Company's assets. The loan agreement subjects the Company to various financial and nonfinancial covenants, the most restrictive of which require the Company maintain certain levels of tangible net worth and current ratios. As of July 31, 1997, the company was in compliance with all covenants.
Appears in 2 contracts
Sources: Series C Preferred Stock Purchase Agreement (Genomic Solutions Inc), Series C Preferred Stock Purchase Agreement (Genomic Solutions Inc)