Common use of Working Capital Advance Clause in Contracts

Working Capital Advance. 5.1 Upon written request of the P.C., the Company may, in its sole discretion, advance monies to the P.C. for purposes of working capital (the "Working Capital Advance"). 5.2 In the written request for the Working Capital Advance, the P.C. will provide the Company with: (a) a statement that the proceeds of the Working Capital Advance will be used solely by the P.C. for its medical practice; (b) a statement as to the exact use of the Working Capital Advance; and (c) such financial records and reports as the Company may determine to be necessary in connection with its evaluation of the request of the Working Capital Advance. 5.3 Upon review of a request for a Working Capital Advance and the financial records and reports of the P.C., the Company will determine whether and upon what terms it will approve such Working Capital Advance. The Company's determination to make any Working Capital Advance will be based upon such factors as it determines are reasonable and appropriate, including but not limited to, the following: (i) the purpose of the request; (ii) the financial condition of the P.C. at the time of the request; (iii) the prevailing economic conditions; (iv) interest rates; (v) the availability of capital to the Company on reasonable terms and (vi) a business plan and budget of the P.C. for the following calendar year. If the request for the Working Capital Advance is granted, the parties shall negotiate in good faith mutually agreeable terms for the repayment of the Working Capital Advance and the P.C. shall execute such documents as the Company shall reasonably require as a pre-condition to the funding of the Working Capital Advance. If the request for a Working Capital Advance is denied, such denial will not constitute a breach of this Agreement. The repayment of a Working Capital Advance will be in addition to any fees due the Company pursuant to Paragraph 6 of this Agreement.