Document:

United States Securities and Exchange Commission EDGAR Filing

EXHIBIT 4.6

Dated:      

NEITHER THIS BRIDGE NOTE NOR THE SECURITIES INTO WHICH THIS BRIDGE NOTE IS CONVERTIBLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

No. CD-__

$_______

THE QUANTUM GROUP, INC.

8% Subordinated Secured Convertible Bridge Note

Due June 30, 2007

This Subordinated Secured Bridge Note (the “Bridge Note”) is issued by THE QUANTUM GROUP, INC., a Nevada corporation (the “Obligor”), to ______________ (the “Holder”).

FOR VALUE RECEIVED, the Obligor hereby promises to pay to the Holder or its successors and assigns the principal sum of ________________ Dollars ($_______), together with accrued but unpaid interest on or before the “Maturity Date” as herewithin defined in accordance with the following terms:

Interest.  Interest shall accrue on the outstanding principal balance hereof at an annual rate equal to 8%.  Interest shall be calculated on the basis of a 360-day year and the actual number of days elapsed, to the extent permitted by applicable law.  Interest hereunder will be paid to the Holder or its assignee in whose name this Bridge Note is registered on the records of the Obligor regarding registration and transfers of Bridge Notes (the “Bridge Note Register”) on the Maturity Date.  In the event the principal of the Bridge Note shall not be paid at the Maturity Date, interest shall be accrued at the rate of 1.5% per month until principal and all accrued interest have been paid.

Maturity Date.  This Bridge Note together with all accrued interest shall be due and payable at the earlier of (a) the closing of a secondary public offering of the Obligor’s securities in an aggregate amount of approximately $8,000,000 with Newbridge Securities Corporation (“Newbridge”) as managing underwriter (the “Secondary Public Offering”) or (b) on June 30, 2007, provided however that such date may be extended for up to 60-days upon prior written notice from Obligor to the Holder and Newbridge. 

This Bridge Note is subject to the following additional provisions:

			
	 
	 
	 

Section 1.

Dissolution Event.  In the event the Obligor has a dissolution event, which shall consist of a change in control, a financing of at least $4,000,000 (excluding the SPO), a merger whereby the Obligor is not the surviving entity or sale of all or substantially all of the assets of the Obligor, then the Bridge Note holders shall have the option to demand payment of the principal and any accrued interest and such payment shall be made within 20 days of such event, otherwise the Bridge Note holders may convert as per the Conversion Price defined herein.

Section 2.

Conversion and Adjustment.

(a)

Upon written request until such time the Bridge Notes are repaid (including any accrued interest), the Bridge Note holders (at their sole discretion) shall have the right to convert (from time to time, in whole or part) the Bridge Notes into shares of common stock of the Obligor, as described at the Conversion Price described below.

(b)

The Conversion Price (“Conversion Price”) shall be equal to 70% of the offering price of any of the Obligor’s subsequent securities offerings, including the SPO.  An offering shall not include the issuance of (i) shares of common stock or options to consultants, employees, officers and directors of the Obligor, (ii) securities upon the exercise or exchange of or conversion of any securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Obligor’s common stock issued and outstanding on the closing of the Financing Agreement for Sale of Bridge Securities dated August __, 2006 (the “Financing Agreement”), and (iii) securities issued pursuant to acquisitions or strategic transactions.  

(c)

The Holder shall effect conversions by delivering to the Obligor a completed notice in the form attached hereto as Exhibit A (a “Conversion Notice”).  The date on which a Conversion Notice is delivered is the “Conversion Date.”  Unless the Holder is converting the entire principal amount outstanding under this Bridge Note, the Holder is not required to physically surrender this Bridge Note to the Obligor in order to effect conversions.  Conversions hereunder shall have the effect of lowering the outstanding principal amount of this Bridge Note plus all accrued and unpaid interest thereon in an amount equal to the applicable conversion.  The Holder and the Obligor shall maintain records showing the principal amount converted and the date of such conversions.  In the event of any dispute or discrepancy, the records of the Holder shall be controlling and determinative in the absence of manifest error.

(d)

If the Obligor, at any time while this Bridge Note is outstanding, shall (i) pay a stock dividend or otherwise make a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (ii) subdivide outstanding shares of Common Stock into a larger number of shares, (iii) combine (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issue by reclassification of shares of the Common Stock any shares of capital stock of the Obligor, then the Conversion Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event.  Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re­classification.

			
	 
	2

	 

(e)

Upon a conversion hereunder the Obligor shall not be required to issue stock certificates representing fractions of shares of the Common Stock, but may if otherwise permitted, make a cash payment in respect of any final fraction of a share based on the Closing Bid Price of the Obligor’s Common Stock on the Conversion Date.  If the Obligor elects not, or is unable, to make such a cash payment, the Holder shall be entitled to receive, in lieu of the final fraction of a share, one whole share of Common Stock.

(f)

The issuance of certificates for shares of the Common Stock (or other securities) on conversion of this Bridge Note shall be made without charge to the Holder thereof for any documentary stamp or similar taxes that may be payable in respect of the issue or delivery of such certificate, provided that the Obligor shall not be required to pay any tax that may be payable in respect of any transfer involved in the issuance and delivery of any such certificate upon conversion in a name other than that of the Holder of such Bridge Note so converted and the Obligor shall not be required to issue or deliver such certificates unless or until the person or persons requesting the issuance thereof shall have paid to the Obligor the amount of such tax or shall have established to the satisfaction of the Obligor that such tax has been paid.

Section 3.

Registration Rights and Reservation of Shares.  As provided under the Subscription Agreement executed by the Holder and accepted by the Obligor, the Bridge Note Holder shall have registration rights to register the common shares issuable upon the conversion of the Bridge Note.  The Obligor shall at all times reserve for such number of shares of its common stock as shall be required for issuance and delivery upon conversion of the Bridge Notes.

Section 4.

Notice.  Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1) trading day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

If to the Obligor, to:

The Quantum Group, Inc.

3420 Fairlane Farms Road, Suite C

Wellington, Florida 33414

Attention: Noel Guillama

Telephone: (561) 798-9800

Facsimile: (561) 396-3456

or at such other address and/or facsimile number and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three (3) business days prior to the effectiveness of such change.  Written confirmation of receipt (i) given by the recipient of such notice, consent, waiver or other communication, (ii) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (iii) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

			
	 
	3

	 

Section 5.

This Bridge Note shall not entitle the Holder to any of the rights of a stockholder of the Obligor, including without limitation, the right to vote, to receive dividends and other distributions, or to receive any notice of, or to attend, meetings of stockholders or any other proceedings of the Obligor, unless and to the extent converted into shares of Common Stock in accordance with the terms hereof.

Section 6.

Repayment of this Bridge Note shall be secured by a lien on all tangible and intangible assets of the Obligor as described in that certain Security Agreement executed contemporaneously herewith.

Section 7.

In the event of an occurrence of any event of default specified below, the principal of, and all accrued and unpaid interest on, this Bridge Note shall be come due and payable as specified below.  In the event of an event of default under this Bridge Note, a default may only be called by holders of at least fifty percent (50%) of the aggregate principal amount of the Bridge Notes then outstanding, including High Capital Funding, LLC.  

The following shall constitute an event of default:

(a)

Obligor fails to make any payment hereunder when due, which failure has not been cured within 10 days following such due date.

(b)

The Obligor breaches any material covenant or other term or condition of this Bridge Note, the Financing Agreement or the Security Agreement executed in connection with this Bridge Note in any material respect and such breach, if subject to cure, continues for a period of ten (10) days after written notice to the Obligor.

(c)

Obligor files a petition to take advantage of any insolvency act; makes an assignment for the benefit of its creditors; commences a proceeding for the appointment of a receiver, trustee, liquidator or conservator of itself of a whole or any substantial part of its property; files a petition or answer seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statute of the United States of America or any state.

(d)

A court of competent jurisdiction enters an order, judgment or decree appointing a custodian, receiver, trustee, liquidator or conservator of Obligor or of the whole or any substantial part of its properties, or approves a petition filed against Obligor seeking reorganization or arrangement or similar relief under the federal bankruptcy laws or any other applicable law or statue of the United States of America or any state; or if, under the provisions of any other law for the relief or aid of debtors, a court of competent jurisdiction assumes custody or control of Obligor or of the whole or any substantial part of its properties; or there is commenced against Obligor any proceeding for any of the foregoing relief and such proceeding or petition remains undismissed for a period of 30-days; or if Obligor by any act indicates its consent to or approval of any such proceeding or petition.

(e)

If (i) any judgment remaining unpaid, unstayed or undismissed for a period of 60-days is rendered against Obligor, which by itself or together with all other such judgments rendered against Obligor remaining unpaid, unstayed or undismissed for a period of 60-days, is in excess of $100,000, or (ii) there is any attachment or execution against Obligor’s properties remaining unstayed or undismissed for a period of 60-days, which by itself or together with all other attachments and executions against Obligor’s properties remaining unstayed or undismissed for a period of 60-days is for an amount in excess of $100,000.

			
	 
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Section 8.

If this Bridge Note is mutilated, lost, stolen or destroyed, the Obligor shall execute and deliver, in exchange and substitution for and upon cancellation of the mutilated Bridge Note, or in lieu of or in substitution for a lost, stolen or destroyed Bridge Note, a new Bridge Note for the principal amount of this Bridge Note so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of such Bridge Note, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Obligor.

Section 9.

This Bridge Note shall be governed by and construed in accordance with the laws of the State of Nevada.  Each of the parties consents to the jurisdiction of the applicable State or Federal Court located in Las Vegas, Nevada in connection with any dispute arising under this Bridge Note and hereby waives, to the maximum extent permitted by law, any objection, including any objection based on forum conveniens to the bringing of any such proceeding in such jurisdictions.

Section 10.

If the Obligor fails to materially comply with the terms of this Bridge Note, then the Obligor shall reimburse the Holder promptly for all fees, costs and expenses, including, without limitation, attorneys’ fees and expenses incurred by the Holder in any action in connection with this Bridge Note, including, without limitation, those incurred: (i) during any workout, attempted workout, and/or in connection with the rendering of legal advice as to the Holder’s rights, remedies and obligations, (ii) collecting any sums which become due to the Holder, (iii) defending or prosecuting any proceeding or any counterclaim to any proceeding or appeal; or (iv) the protection, preservation or enforcement of any rights or remedies of the Holder.

Section 11.

Any waiver by the Holder of a breach of any provision of this Bridge Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Bridge Note.  The failure of the Holder to insist upon strict adherence to any term of this Bridge Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Bridge Note.  Any waiver must be in writing.

Section 12.

If any provision of this Bridge Note is invalid, illegal or unenforceable, the balance of this Bridge Note shall remain in effect, and if any provision is inapplicable to any person or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.  If it shall be found that any interest or other amount deemed interest due hereunder shall violate applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest.  The Obligor covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Obligor from paying all or any portion of the principal of or interest on this Bridge Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Obligor (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

			
	 
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Section 13.

Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, which for the purposes of hereof means any day except Saturday, Sunday and any day which shall be a Federal legal holiday in the United States or day on which banking institutions are authorized or required by law or other government action to close, such payment shall be made on the next succeeding Business Day.

Section 14.

If there are any inconsistencies between this Bridge Note and the Financing Agreement between the Bridge Note Purchasers and the Company dated December 15, 2006, the Financing Agreement shall govern.

Section 15.

THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION DOCUMENT OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE PARTIES’ ACCEPTANCE OF THIS AGREEMENT.

IN WITNESS WHEREOF, the Obligor has caused this Bridge Note to be duly executed by a duly authorized officer as of the date set forth above.

THE QUANTUM GROUP, INC.

By:____________________________

Name:

Title:

			
	 
	6

	 

EXHIBIT “1”

EXHIBIT “A”

NOTICE OF CONVERSION

(To be executed by the Holder in order to convert the Bridge Note)

TO:

_______________________

The undersigned hereby irrevocably elects to convert _________ of the principal amount of the above Bridge Note into Shares of Common Stock (or other securities) of The Quantum Group, Inc., according to the conditions stated therein, as of the Conversion Date written below.

Conversion Date:

Applicable Conversion Price:

Signature:

Name:

Social Security # or Tax ID #

Address:

Amount to be converted:

Amount of Bridge Note unconverted:

Conversion Price per share:

Number of shares of Common

Stock to be issued:

Please issue the shares of

Common Stock in the following

name and to the following address:

Issue to:

Authorized Signature:

Name:

Title:

Phone Number:

Broker DTC Participant Code:

Account Number:ex10-1.htm

     

     

     

     

    Exhibit
      10.1

    THIRD
      AMENDMENT TO THE LOAN AGREEMENT

    

    THIRD
      AMENDMENT TO THE LOAN AGREEMENT (this “Amendment”) dated as of June 29,
      2007, between AMERICAN MORTGAGE ACCEPTANCE COMPANY (the “Borrower”) and
      CENTERLINE HOLDING COMPANY (the “Lender”).

    

    WHEREAS,
      the Borrower and the Lender are parties to a Loan Agreement dated as of June
      30,
      2004, as amended by the First Amendment to the Loan Agreement dated as of June
      30, 2005, as amended by the Second Amendment to the Loan Agreement dated as
      of
      April 19, 2006 (as amended, and modified, restated and/or supplemented from
      time
      to time, the “Loan Agreement”) (capitalized terms used herein and not
      otherwise defined herein shall have the meanings ascribed to such terms in
      the
      Loan Agreement); and

    

    WHEREAS,
      the Borrower has requested, and the Lender has agreed to, the amendments
      provided herein on the terms and conditions set forth herein;

    

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein, the parties
      agree that effective as of the date hereof, the Loan Agreement is hereby amended
      as follows:

    

    Section
      1.              Amendments.

     

    1.1           The
      first recital of the Loan Agreement is hereby amended and restated in its
      entirety as follows:

     

    “By
      means
      of a loan facility to be established under and subject to this Agreement (the
      “Line of Credit”), Borrower desires to secure from the Lender up to $80,000,000
      for use by Borrower for financing the Borrower’s investments and for general
      corporate purposes and Lender has agreed to provide such
      financing.”

     

    1.2           The
      definition of the term “Loan Amount” in Section 1.1 of the Loan Agreement is
      hereby amended and restated in its entirety as follows:

     

    “Loan
      Amount means the principal amount of EIGHTY MILLION AND NO/100 DOLLARS
      ($80,000,000.00), or such lesser amount as may from time to time be in effect
      following exercise of the reduction procedure set forth in Section
      2.3.”

     

    1.3           Section
      2.4 of the Loan Agreement is hereby amended by deleting the text “June 30, 2007”
therein and inserting the text “June 30, 2008” in lieu thereof.

     

    1.4           The
      Financial Covenants set forth in Section 7 are hereby amended and restated
      in
      their entirety as set forth on Exhibit A hereto.

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.              Representations
      and Warranties.

     

    The
      Borrower hereby represents and
      warrants to the Lender that:

     

    2.1           Authorization.  The
      Borrower is duly authorized to execute and deliver this Amendment and is and
      will continue to be duly authorized to perform its obligations under the Loan
      Agreement, as amended hereby.

     

    2.2           No
      Conflicts.   The execution and delivery of this Amendment and
      the performance by the Borrower of its obligations under the Loan Agreement,
      as
      amended hereby, do not and will not (i) require any consent or authorization
      of,
      filing with, notice to or other act by or in respect of, any governmental
      authority or any other Person or (ii) violate any law, rule or regulation or
      any
      material agreement or contract to which the Borrower is a party or is otherwise
      bound and will not result in, or require, the creation or imposition of any
      lien
      or encumbrance on any of its properties or revenues pursuant to any law, rule
      or
      regulation or any such material agreement or contract.

     

    2.3           Validity
      and Binding Effect.  The Loan Agreement, as amended hereby,
      constitutes a legal, valid and binding obligation of the Borrower, enforceable
      against it in accordance with its terms, except as enforceability may be limited
      by applicable bankruptcy, insolvency, reorganization, moratorium or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      equitable principles (whether enforcement is sought by proceedings in equity
      or
      at law).

     

    2.4           Loan
      Agreement Representations and Warranties.  The representations and
      warranties set forth in Section 4 of the Loan Agreement are true and correct,
      in
      all material respects, with the same effect as if such representations and
      warranties had been made on the date hereof (except to the extent such
      representations and warranties are made as of some other date(s), in which
      case
      such representations and warranties shall be true and correct in all material
      respects as of such other date(s)).

     

    2.5           No
      Event of Default.  As of the date hereof, no Default or Event of
      Default has occurred or is continuing.

     

    Section
      3.              Effectiveness
      of Amendment.

     

    Except
      as specifically amended hereby,
      the Loan Agreement is and shall remain in full force and effect.  This
      Amendment shall become effective upon the first date on which the Borrower
      and
      the Lender shall have signed a counterpart hereof (whether the same or different
      counterparts) and shall have delivered (including by way of facsimile
      transmission) the same to the other party.

     

    Section
      4.              No
      Further Amendments.

     

    Except
      for the amendments set forth
      herein, the text of the Loan Agreement and all other Loan Documents shall remain
      unchanged and in full force and effect.  No waiver by the Lenders
      under the Loan Agreement or any other Loan Document is granted or intended
      except as expressly set forth herein, and the Lenders expressly reserve the
      right to require strict compliance with the terms of each of the Loan Agreement,
      as amended hereby, and the other Loan Documents in all respects.  The
      waivers, extensions, consents and amendments agreed to herein shall not
      constitute a modification of, or a course of dealing at variance with, the
      Loan
      Agreement, as amended hereby, such as to require further notice by the Lender
      to
      require strict compliance with the terms of the Loan Agreement, as amended
      hereby, and the other Loan Documents in the future.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      5.              Legal
      Fees

     

    The
      Borrower shall pay all reasonable expenses incurred by the Lender in the
      drafting, negotiation and closing of the documents and transactions contemplated
      hereby, including the reasonable fees and disbursements of the Lender’s special
      counsel.

     

    Section
      6.              Miscellaneous.

     

    6.1           Governing
      Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
      HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
      ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

    6.2           Counterparts.  This
      Amendment may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed an original, but all such counterparts together shall constitute
      but one and the same instrument; signature pages may be detached from multiple
      separate counterparts and attached to a single counterpart so that all signature
      pages are physically attached to the same document.

     

    6.3           Headings.  Section
      and subsection headings in this Amendment are included herein for convenience
      of
      reference only and shall not constitute a part of this Amendment for any other
      purpose or be given any substantive effect.

     

    6.4           Severability.  In
      case any provision in or obligation under this Amendment shall be invalid,
      illegal or unenforceable in any jurisdiction, the validity, legality and
      enforceability of the remaining provisions or obligations, or of such provision
      or obligation in any other jurisdiction, shall not in any way be affected or
      impaired thereby.

     

    *           *           *

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have
      executed and delivered this Amendment as of the date first written
      above.

    

     

    
      	 	
               THE
                BORROWER: 

               

            
	 	 AMERICAN
              MORTGAGE ACCEPTANCE COMPANY 
	 	 	 
	
               

            	
              By:

            	
              /s/
                J. Larry Duggins

            
	
               

            	
              Name: 
                J. Larry Duggins

            
	
               

            	
              Title: 
                Chief Executive Officer

            

    

    

     

    
      	
            	
               THE
                LENDER: 

               

            
	 	 CENTERLINE
              HOLDING COMPANY
	 	 	 
	
               

            	
              By:

            	
              /s/
                J. Marc. D. Schnitzer

            
	
               

            	
              
                Name:  Marc.
                  D. Schnitzer

              

            
	
               

            	
              Title: 
                Chief Executive Officer

            

    

     

    
 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FINANCIAL
      COVENANTS

     

    N

      	
               

              Quarterly
                Covenant

            	
               

              Proposed
                Covenants

            
	
              Minimum
                Adjusted Net Worth (GAAP Net Worth without impact of Accumulated
                Other
                Comprehensive Income or loss)

               

            	
              $75MM

            
	
              Maximum
                Indebtedness to FMV of Total Assets

               

            	
              Eliminate

            
	
              Maximum
                Recourse Debt to Adjusted Net Worth

               

            	
              4.0X

               

            
	
              Adjusted
                AFFO to Recourse Debt Service

               

            	
              1.35X

            
	
              Minimum
                Quarterly Adj. AFFO

               

            	
              $1.5MM

            
	
              Cross-default
                to other recourse indebtedness (event of default)

               

            	
              $5MM

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