Temporary suspension of discretionary baskets. Most of the waivers to the financial agreements were accompanied by temporary suspensions of certain limited payments based on EBITDA and quotas, baskets of debt and privileges, and/or a reduction in fixed baskets during the waiver period of budgetary commitments. If only consent to the revolving facility is obtained and the revolving lenders are not the required lenders authorized to amend the entire loan agreement, breach of these restrictions will terminate the waiver period for the financial arrangements instead of resulting in default. Local credit lines/non-guarantor debt baskets: Local credit lines can be relevant to international businesses, often allowing a subsidiary to take on debt without collateral conditions. In addition, a basket of unsecured debts can be a source of capacity for structurally senior debt (as we will see below, these liabilities can often also be secured by assets of a subsidiary that are not the issuer/borrower or guarantors). Capitalized Lease Commitment Basket: The capitalized lease commitment basket can be a potential source of capacity depending on the Company`s intended use of the proceeds, as this basket is increasingly designed to include debt incurred to finance the purchase, improvement, repair, renewal, etc. of real estate (including the purchase of shares of a person who owns such real estate). In addition, these baskets are generally relatively little used by many European companies. As with the definitions of ifrs frozen before IFRS 16, the term „leases“ excludes operating leases from the definition of debt in general. Consumer rentalConsumer rental is defined in Article 2A of the UCC. It is a rental contract between a lessor who regularly carries out the activity of rental or sale to a tenant who is an individual and concludes the lease for personal, family or domestic purposes.

To meet the definition of a consumer lease, the total payments to be made under the lease, excluding payments for renewal or purchase options, cannot exceed $25,000. Any prohibition of a party`s right to transfer its rights in a consumer lease must be written, visible and precise. Amendments to the clauses on significant adverse effects. Some of the changes we`ve seen include fallout in defining the „material adverse effects“ of the impact of COVID-19 on the borrower`s business. With respect to drawings under revolving credit facilities, certain amendments stipulate that the effects of COVID-19 will not be taken into account in determining the accuracy of the reduction in representations. The economic damage caused by COVID-19 is proving to be more severe and promises to stay much longer than expected. This leads us to believe that in the coming months, more borrowers will seek arrangements under their existing loan agreements, particularly with respect to financial maintenance obligations and improved liquidity. It is likely that the trends identified so far in the credit market will continue and evolve in line with the duration and severity of the COVID-19 crisis, the continued availability of government-supported financing, and the recovery of syndicated credit markets.

On March 10, 2020, we entered into (i) the Mezzanine Loan Agreement with the Agent and mezzanine lenders, under which the Mezzanine Lenders agreed to lend us up to $50.0 million in a series of term loans, and (ii) the Senior Loan Agreement with the Lead Lender, under which the Lead Lender agreed to provide us with a revolving credit facility of up to $5.0 million. of dollars. At the conclusion of the loan agreements, we borrowed $35.0 million in term loans from mezzanine lenders. On the 26th. In October 2020, we completed the changes to the loan agreement. The availability of an additional $5.0 million in term loans is subject to FDA approval of our NDA for VP-102 for the treatment of shellfish prior to March 31, 2021.La availability of an additional $10.0 million in term loans is subject to (i) FDA approval of our NDA for VP-102 for shellfish treatment by September 30, 2021 and (ii) compliance with a minimum liquidity obligation. More information can be found in Note 7 to our condensed annual financial statements. 1. In the case of a loan, balancing balances are minimum balances required by the bank from a borrower in order to maintain them with the bank as partial compensation from the bank for the line of credit. Credit Facility Basket: In banking/bond transaction structures, the credit facility basket is a potential candidate for any type of third-party financial debt, as the definition of the credit facility is often very broad.

These baskets are often initially sized to provide additional capacity or „flexibility“ above the revolving credit facility initially committed. However, companies should be aware that if they use this basket for additional debt, it can effectively prevent them from making full use of their revolving credit facility if they don`t have the additional capacity to do so at that time. .