LEVEL DEDICATED BY WP AFTER THE "GO LIVE" DATE OF THE MEDITECH SOFTWARE
SYSTEM WILL EQUAL ONE HUNDRED PERCENT (100%) OF THE FTES DEDICATED TO THE
COLLECTION OF WP'S ACCOUNTS RECEIVABLE DURING THE BASELINE MEASUREMENT PERIOD.
4.
THE WP CHIEF FINANCIAL OFFICER SHALL
MEET WITH FCG AT LEAST ONCE PER MONTH BETWEEN THE EXECUTION OF THE AGREEMENT AND
THE TERMINATION DATE OF THIS FCG LOAN AGREEMENT TO DISCUSS AND ACT UPON, AMONG
OTHER THINGS, THE TOPICS SET FORTH BELOW:
A.
CURRENT A/R DAYS OUTSTANDING
CALCULATIONS
B.
CURRENT ALLOWANCE SCHEDULE
C.
CURRENT BAD DEBT ACTUAL AND PROVISION
D.
CURRENT HOURS WORKED WITHIN THE PATIENT
ACCOUNTING DEPARTMENT
E.
CURRENT NUMBER OF OPEN ACCOUNT AGED
F.
CURRENT DOLLARS OUTSTANDING AGED
G.
AGED TRAIL BALANCE REPORT AGED FOR THE
FOLLOWING DOLLARS RANGES:
9,999,999.99 - 0
0 - 5,000.00
5,001.00 - 15,000.00
15,001.00 - 30,000.00
30,001.00 - 9, 999,999.99
H.
MONTHLY CASH COLLECTIONS TO INCLUDE
UNPOSTED
I.
LAST 90 DAYS OF REVENUE
WP SHALL ENDEAVOR TO MAKE ALL OF THE ABOVE LISTED INFORMATION AVAILABLE TO FCG,
SUBJECT TO THE REPORTING CAPABILITIES OF WP'S FINANCIAL SYSTEMS.
ANY
INFORMATION OR REPORTS THAT WP DOES NOT CURRENTLY GENERATE MUST BE MUTUALLY
AGREED UPON BY WP AND FCG.
THE FINANCIAL INFORMATION (OR OTHER REASONABLE
INFORMATION) DISCUSSED ABOVE MUST BE PROVIDED AT LEAST 5 WORKING DAYS PRIOR TO
SUCH MONTHLY MEETINGS.
BORROWING MECHANICS:
WP SHALL BE ENTITLED TO BORROW UNDER
THIS FCG LOAN AGREEMENT ON EACH OF THE FOLLOWING DATES (EACH, A "BORROWING
DATE"):
A.
COMMENCEMENT DATE +25 DAYS ("FIRST
BORROWING DATE")
B.
COMMENCEMENT DATE + 55 DAYS ("SECOND
BORROWING DATE")
C.
COMMENCEMENT DATE + 85 DAYS ("THIRD
BORROWING DATE")
D.
COMMENCEMENT DATE + 115 DAYS ("FOURTH
BORROWING DATE")
E.
COMMENCEMENT DATE + 145 DAYS ("FIFTH
BORROWING DATE")
WP SHALL ONLY BE ABLE TO BORROW UNDER THIS FCG LOAN AGREEMENT TO THE EXTENT THAT
THE CONDITIONS TO BORROW (SET FORTH BELOW) HAVE BEEN SATISFIED AND IT HAS NOT
EXCEEDED THE MAXIMUM AMOUNT AVAILABLE TO BE BORROWED UNDER ITS FCG LOAN
AGREEMENT (E.G., $4,080,000).
ON EACH OF THE APPLICABLE BORROWING DATES, WP
SHALL BE ABLE TO BORROW UNDER THIS FCG LOAN AGREEMENT BY AN AMOUNT EQUAL TO
3
THE LESSER OF THE FOLLOWING TWO CALCULATIONS:
(I) THE DIFFERENCE BETWEEN THE A/R DAYS OUTSTANDING FOR THE PREVIOUS MONTH-END
LESS ITS BASELINE DO THRESHOLD (AND ONLY IF SUCH DIFFERENCE IS A POSITIVE
NUMBER), MULTIPLIED BY $408,000; AND
(II)
THE DIFFERENCE BETWEEN THE ACTUAL A/R FOR THE PREVIOUS MONTH-END LESS ITS
BASELINE A/R THRESHOLD (AND ONLY IF SUCH DIFFERENCE IS A POSITIVE NUMBER).
BASED ON THE FOREGOING CALCULATION, THE AMOUNT WP CAN BORROW ON THE SECOND,
THIRD, FOURTH OR FIFTH BORROWING DATES SHALL BE REDUCED BY THE AGGREGATE AMOUNT
OF ANY BORROWINGS ON A PREVIOUS BORROWING DATE THAT HAS NOT BEEN REPAID.
FOR EXAMPLE, (ASSUMING THE ABOVE CALCULATION IS BASED ON A/R DAYS OUTSTANDING)
IF WP'S BASELINE DO IS 72 DAYS, ITS A/R DAYS OUTSTANDING ON THE FIRST BORROWING
DATE IS 74 DAYS AND ITS A/R DAYS OUTSTANDING ON THE SECOND BORROWING DATE