# Evergreen Precision Works, Inc. — waiver review **Status: proposal. Human approval has not been granted.** Execution: Live model run Reference: Assistant-prepared from original sources; human review pending; not a model-run result [Exact input snapshot](trace/inputs.json) · [Structured result](trace/result.json) · [Code calculations](trace/calculations.json) ## ask-1 — Grant a one-time waiver of the August 31, 2026 minimum-liquidity test for the borrower's reported USD 1.3 million shortfall. **Borrower request:** We request a one-time waiver of this reported USD 1.3 million shortfall for the August 31 test. **Provision:** liquidity-6.12 The Borrower must have Liquidity of at least USD 9.5 million at close of business on August 31, 2026. For the August 2026 test and this waiver request, August 31 is the sole required observation date. This is a point-in-time test, not a continuous or average-balance test. No later cash release cures the historical measurement. The minimum in force on August 31, 2026 is USD 9.5 million. Definition: Liquidity equals the Borrower's gross cash account balances, less cash that is restricted, pledged to an escrow beneficiary, trapped or otherwise unavailable for general corporate purposes, plus Available Revolving Capacity. A restriction is assessed at the measurement date. An expected future release does not make escrow cash available before release. All amounts are denominated in United States dollars. There are no additional eligible asset categories. Available Revolving Capacity means the undrawn amount actually usable under the commitment and borrowing base after outstanding advances, letters of credit and applicable reserves, with all applicable draw conditions satisfied. Commitment size alone is not Available Revolving Capacity. The calculation of this component for a measurement date is made immediately before giving effect to a breach caused solely by that date's minimum-liquidity test; an unrelated default or unsatisfied draw condition still excludes unusable capacity. ### Evidence and calculation - **gross cash**: 8.6 USD millions (2026-08-31) - **excluded cash**: 3.1 USD millions (2026-08-31) - **available revolver**: 1.6 USD millions (2026-08-31) - **eligible escrow**: 0 USD millions (2026-08-31) **Calculation:** 8.6 - 3.1 + 1.6 = 7.1; minimum 9.5 - **liquidity**: 7.1 USD millions - **minimum liquidity**: 9.5 USD millions - **headroom**: -2.4 USD millions - **shortfall**: 2.4 USD millions ### Borrower claims - liquidity: claimed 8.2 USD millions; established 7.1 USD millions; **differs**. - minimum liquidity: claimed 9.5 USD millions; established 9.5 USD millions; **matches**. - shortfall: claimed 1.3 USD millions; established 2.4 USD millions; **differs**. - eligible escrow: claimed 1.1 USD millions; established 0 USD millions; **differs**. - policy threshold: claimed 2.0 USD millions; established 2.0 USD millions; **matches**. ### Policy and recommendation **Route:** Investment Committee **Model's explanation:** Verified Liquidity is USD 7.1 million and the shortfall is USD 2.4 million, exceeding the mandatory USD 2.0 million referral threshold. The subsequent escrow release does not change the historical test. The servicing history covers the preceding twelve months; the separate desk approval register is not supplied. That unresolved authority condition does not block independently mandatory referral under LQ-3. This is a referral proposal, not a waiver or written lender consent. - Request limited to the single August 31 minimum-liquidity waiver: supported; - Verified shortfall exceeds USD 2.0 million: calculated shortfall is USD 2.4 million: supported; - First minimum-liquidity waiver within the supplied servicing history: supported; - No other Event of Default continuing: supported; - No waiver approved by this desk during the preceding twelve months: not satisfied or not verified; The separate desk approval-register result is not supplied. Borrower servicing history does not establish desk-wide approval history; LQ-3 permits referral despite this unresolved condition. **Open questions:** Whether this desk approved any waiver during the preceding twelve months is unresolved; this does not block the independently mandatory numerical referral.; No waiver approved by this desk during the preceding twelve months: The separate desk approval-register result is not supplied. Borrower servicing history does not establish desk-wide approval history; LQ-3 permits referral despite this unresolved condition. ### Original source quotes **[credit-agreement — Section 1.01](trace/sources/credit-agreement.md)** Liquidity equals the Borrower's gross cash account balances, less cash that is restricted, pledged to an escrow beneficiary, trapped or otherwise unavailable for general corporate purposes, plus Available Revolving Capacity. A restriction is assessed at the measurement date. An expected future release does not make escrow cash available before release. All amounts are denominated in United States dollars. There are no additional eligible asset categories. Available Revolving Capacity means the undrawn amount actually usable under the commitment and borrowing base after outstanding advances, letters of credit and applicable reserves, with all applicable draw conditions satisfied. Commitment size alone is not Available Revolving Capacity. The calculation of this component for a measurement date is made immediately before giving effect to a breach caused solely by that date's minimum-liquidity test; an unrelated default or unsatisfied draw condition still excludes unusable capacity. **[credit-agreement — Section 6.12](trace/sources/credit-agreement.md)** The Borrower must have Liquidity of at least USD 9.5 million at close of business on August 31, 2026. For the August 2026 test and this waiver request, August 31 is the sole required observation date. This is a point-in-time test, not a continuous or average-balance test. No later cash release cures the historical measurement. The minimum in force on August 31, 2026 is USD 9.5 million. **[lender-waiver-policy — Effective period and applicability](trace/sources/lender-waiver-policy.md)** FICTIONAL EXERCISE POLICY. Effective January 1, 2026 through December 31, 2026. Applies to Evergreen Precision Works, Inc. and the request dated September 2, 2026. **[lender-waiver-policy — LQ-1 — Scope and verification](trace/sources/lender-waiver-policy.md)** For a waiver limited to the single August 31, 2026 minimum-liquidity test, calculate historical Liquidity from the agreement's definition and source records. Define shortfall as the greater of zero and the applicable minimum minus verified Liquidity. Do not use later cash releases or unsupported borrower calculations to reduce the historical shortfall. **[lender-waiver-policy — LQ-2 — Internal authority](trace/sources/lender-waiver-policy.md)** The deal team may consider a first minimum-liquidity waiver only when the verified shortfall is no greater than USD 2.0 million, no other Event of Default is continuing, and no waiver has been approved by this desk during the preceding twelve months. **[lender-waiver-policy — LQ-3 — Missing evidence and human decision](trace/sources/lender-waiver-policy.md)** An independently established mandatory escalation trigger may still be referred with its unresolved facts identified. **[bank-balances — Statement heading and reconciliation paragraph](trace/sources/bank-balances.md)** Statement date: August 31, 2026 (2026-08-31), close of business. Account owner: Evergreen Precision Works, Inc. Currency: USD millions. **[bank-balances — Reconciliation paragraph following account table](trace/sources/bank-balances.md)** The bank and treasury reconciliation confirm that these are all of the Borrower's cash accounts on the statement date, that each balance is counted once, and that the gross balance is USD 8.6 million. This statement reports ownership and balances; the accompanying cash restriction register establishes availability. **[cash-restrictions — Measurement-date escrow restriction paragraph](trace/sources/cash-restrictions.md)** At close of business on August 31, 2026 (2026-08-31), all USD 3.1 million in acquisition escrow account 4177 was pledged to the transaction beneficiary and unavailable for general corporate use. Written beneficiary consent was necessary to release it and had not been received at that time. The Borrower could not withdraw or redirect the balance on August 31. **[cash-restrictions — Other accounts and register completeness paragraph](trace/sources/cash-restrictions.md)** Operating account 4101 and payroll/reserve account 4102 had no restrictions, pledges, withdrawal blocks or trapped balances on August 31, 2026. The register covers every cash account listed in bank-balances.md. Total restricted or otherwise ineligible cash at the measurement date was USD 3.1 million; there were no other ineligible cash amounts. **[revolving-availability — Certification paragraph following availability table](trace/sources/revolving-availability.md)** The lender confirms actual drawable undrawn revolving capacity of USD 1.6 million on August 31, 2026 after all commitment, borrowing-base, utilization and reserve limitations. All draw conditions applicable to the definition in Section 1.01 were satisfied. There was no additional hold, undisclosed utilization or unrelated default blocking that amount. The figure is calculated under Section 1.01's treatment of the current measurement's own minimum-liquidity breach. This is an availability record, not a waiver approval. **[servicing-record — Servicing ledger paragraph](trace/sources/servicing-record.md)** All scheduled principal and interest payments were received by their applicable due dates. Reporting obligations and all covenants other than the August 31 minimum-liquidity matter are current. No other Event of Default was continuing on August 31 or on September 2, 2026. **[cash-restrictions — Subsequent event paragraph](trace/sources/cash-restrictions.md)** Subsequent event: beneficiary consent was received on September 3, 2026 and the full escrow balance was released that day. This release occurred after the August 31 measurement date. The September 3 release did not change the August 31 restriction record. **[credit-agreement — Section 1.01 — Liquidity](trace/sources/credit-agreement.md)** A restriction is assessed at the measurement date. An expected future release does not make escrow cash available before release. **[servicing-record — Request scope paragraph](trace/sources/servicing-record.md)** This matter seeks only a one-time waiver of the August 31 minimum-liquidity obligation. No payment rescheduling, dividend consent or new financing is requested. **[credit-agreement — Section 6.12](trace/sources/credit-agreement.md)** The minimum in force on August 31, 2026 is USD 9.5 million. **[servicing-record — Servicing ledger paragraph](trace/sources/servicing-record.md)** The servicing ledger covers the preceding twelve months and records no previous liquidity covenant breach, no previous waiver request and no prior lender waiver. **[servicing-record — Servicing ledger paragraph](trace/sources/servicing-record.md)** No other Event of Default was continuing on August 31 or on September 2, 2026. **[servicing-record — Servicing ledger paragraph](trace/sources/servicing-record.md)** The reviewing desk's own approval register is checked separately by the application. **[lender-waiver-policy — LQ-2 — Internal authority](trace/sources/lender-waiver-policy.md)** A verified shortfall greater than USD 2.0 million must be referred to Investment Committee. ## Independent model check Accepted: True The checker is part of the agent. Its agreement is not a human evaluation pass. To revise: retain this attempt and run into a new output directory. Interrupted attempts can resume with unchanged inputs and code.