1
EXHIBIT 4.1
NBD Bank
00000 Xxxxxxxxxxxx Xxxxxxx
Xxxxxxxxxx, Xxxxxxxx 00000
Telephone: (000) 000-0000
Fax: (000) 000-0000
Xxxxxx X. Xxxxx
First Vice President
October 8, 1998
Xx. Xxxx X. Xxx
Vice President Finance and Treasurer
Universal Standard Healthcare, Inc.
00000 Xxxxxxxxxxxx Xxxxxxx
0xx Xxxxx
Xxxxxxxxxx, Xxxxxxxx 00000-0000
Dear Al:
Enclosed please find the Master Demand Business Loan Note in the amount of
$2,000,000.00 which requires your signature. An amendment to the Revolving
Credit and Loan Agreement dated April 30, 1997, as amended (the "Credit
Agreement"), will be drafted next week to incorporate this new facility. In
brief, availability under this facility will be 1) the lesser of $2,000,000 or
the Borrowing Base (defined initially as the sum of 40% of total net accounts
receivable plus 80% of the appraised forced liquidation value of Universal
Standard Healthcare, Inc. equipment in which NBD Bank has a perfected first
security interest) reduced by the outstanding standby letter of credit in the
amount of $1,016,343.32. The advance rate for net accounts receivable is
reducing as follows: 40% during the months of October, November and December,
1998; 30% during the months of January and February, 1999 and 25% during the
month of March, 1999. Expiration of this facility is March 31, 1999 unless
earlier withdrawn by NBD Bank. All advances under this facility are at the sole
discretion of NBD Bank.
The preceding description of the $2,000,000 facility is provided as an outline
of certain terms of this facility so as to allow for your immediate borrowing
availability today. Complete terms and conditions will be contained in the
previously mentioned amendment which is expected to be completed next week. All
other terms and conditions of the Credit Agreement and related Loan Documents
shall continue in full force and effect. Capitalized terms used but not defined
in this letter shall have the same meanings attributed to them in the Credit
Agreement.
If the foregoing is acceptable, please sign, date and return the original copy
of this letter along with the Master Demand Business Loan Note to my attention.
Along with these items, please remit checks in the amount of 1) $5,000 which
represents a facility fee for set up of this loan and 2) $8,717.92 which
represents the past due amount of the fee owing on the unused portion of the
previous $9,500,000 facility (billing statement attached).
Contact me directly with any questions.
Sincerely,
2
By: /S/ Xxxxxx X. Xxxxxx
----------------------------
Xxxxxx X. Xxxxxx
Its: First Vice President
Accepted and agreed to this 8th day of October, 1998.
UNIVERSAL STANDARD HEALTHCARE, INC.
By: /S/ Xxxx X. Xxx
-----------------------------
Xxxx X. Xxx, Vice President Finance and Treasurer
UNIVERSAL STANDARD HEALTHCARE OF MICHIGAN, INC.
By: /S/ Xxxx X. Xxx
---------------------------
Xxxx X. Xxx, Treasurer
UNIVERSAL STANDARD HEALTHCARE OF OHIO, INC.
By: /S/ Xxxx X. Xxx
--------------------------
Xxxx X. Xxx, Treasurer
UNIVERSAL STANDARD HEALTHCARE OF DELAWARE, INC.
By: /S/ Xxxx X. Xxx
-------------------------
Xxxx X. Xxx, Treasurer
A/R CREDIT, INC.
By: /S/ Xxxx X. Xxx
--------------------------
Xxxx X. Xxx, Treasurer
T.P.A., INC.
By: /S/ Xxxx X. Xxx
----------------------------
Xxxx X. Xxx, Treasurer
