Form 10-18

Additional Clauses for Loan Agreements

Capital Expenditures

Clause 10-18

1

Borrower will not make any expenditures for fixed assets in excess of [amount] dollars ($[amount]) in any [fiscal/calendar] year. “Fixed assets” means tangible property that has a useful life in excess of [number] years.

Working Capital

Clause 10-18

2

Borrower will maintain at all times an excess of current assets over cur­rent liabilities of not less than [amount] dollars ($[amount]). “Current assets” means the sum of Borrower’s cash, marketable securities, and other similar assets that are reasonably expected to be converted into cash or applied within twelve months of the date of determination. “Current liabilities” means the sum of all money owed by Borrower that is payable on demand or within twelve months of the date of determination.

Liquidity Ratio

Clause 10-18

3

Borrower will at all times maintain a ratio of the sum of cash and mar­ketable securities to current liabilities of not less than [number] to 1. “Current liabilities” means the sum of all money owed by Borrower that is payable on demand or within twelve months of the date of determination.

Current Ratio

Clause 10-18

4

Borrower will maintain at all times a ratio of current assets to current liabilities of not less than [number] to 1. “Current assets” means the sum of Borrower’s cash, marketable securities, and other assets that are reasonably expected to be converted into cash or applied within twelve months of the date of determination. “Current liabilities” means the sum of all money owed by Borrower that is payable on demand or within twelve months of the date of determination.

Debt Service Coverage

Clause 10-18

5

Borrower will maintain a ratio of net operating income to debt service for the [calendar/fiscal] year of not less than [number] to 1. “Net operating income” means gross income less operating expenses. “Debt service” means principal and interest payments on all debts with a maturity in excess of one year.

Loan-to-Value Ratio

Clause 10-18

6

Borrower will maintain a loan-to-value ratio on the [Collateral/Real Property/Personal Property] of [ratio] or less. The value of the [Collateral/Real Property/Personal Property] shall be the fair market value of the [Collateral/Real Property/Personal Property] as determined by [Lender/an appraisal acceptable to Lender]. “Loan” means the principal of any indebtedness secured by a [lien/security interest] on the [Collateral/Real Property/Personal Prop­erty].