Follow a waiver review

# Executed credit agreement

FICTIONAL EXERCISE DOCUMENT. Evergreen Precision Works, Inc.; effective January 5, 2026. Borrower and lender executed this agreement on that date. Evergreen is the only tested entity and has no subsidiaries. This is the complete applicable liquidity provision; there are no amendments, side letters, additional deductions or alternative definitions.

## Section 1.01 — Liquidity

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.

## Section 6.12 — Minimum liquidity

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.

## Section 8.04 — Consent

A waiver of Section 6.12 requires the written consent of the sole lender. This contractual consent requirement does not allocate that lender's internal approval authority; the lender's internal waiver policy governs its own decision process. No waiver has been granted by this document.

# Cash restriction register and subsequent release record

FICTIONAL EXERCISE DOCUMENT. Custodian and lender account-control register for Evergreen Precision Works, Inc.

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.

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.

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.

# Bank-confirmed account balances

FICTIONAL EXERCISE DOCUMENT. Statement date: August 31, 2026 (2026-08-31), close of business. Account owner: Evergreen Precision Works, Inc. Currency: USD millions.

| Account | Balance |
|---|---:|
| Operating account, ending 4101 | 4.2 |
| Payroll and reserve account, ending 4102 | 1.3 |
| Acquisition escrow account, ending 4177 | 3.1 |
| Gross cash, all accounts | 8.6 |

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.

# Lender-certified revolving availability

FICTIONAL EXERCISE DOCUMENT. Evergreen Precision Works, Inc.; measurement date August 31, 2026 (2026-08-31), close of business. All amounts below are USD millions.

| Item | Amount |
|---|---:|
| Revolving commitment and gross borrowing-base ceiling | 8.0 |
| Outstanding advances | 4.8 |
| Outstanding letters of credit | 0.7 |
| Applicable borrowing-base reserves | 0.9 |
| Available Revolving Capacity after all reductions | 1.6 |

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.

# Lender servicing and covenant register

FICTIONAL EXERCISE DOCUMENT. Borrower: Evergreen Precision Works, Inc. Reviewed as of September 2, 2026 for the August 2026 waiver request.

The executed credit agreement on file is the governing agreement. No amendments, side letters, new effectiveness conditions or other modifications apply to this measurement or request.

The servicing ledger covers the preceding twelve months and records no previous liquidity covenant breach, no previous waiver request and no prior lender waiver. The reviewing desk's own approval register is checked separately by the application. 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.

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. This servicing record does not calculate Liquidity and does not approve the waiver.

# Internal lender waiver policy

FICTIONAL EXERCISE POLICY. Effective January 1, 2026 through December 31, 2026. Applies to Evergreen Precision Works, Inc. and the request dated September 2, 2026.

## LQ-1 — Scope and verification

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.

## LQ-2 — Internal authority

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.

A verified shortfall greater than USD 2.0 million must be referred to Investment Committee. A request to change payment dates or make an additional distribution must also be referred to Investment Committee. These are explicit internal authority rules; exceeding a threshold is not itself proof that a waiver should be granted.

## LQ-3 — Missing evidence and human decision

If missing records prevent a reliable calculation of Liquidity or prevent determining whether an authority condition is satisfied, obtain those records before recommending an approval route based on the numerical shortfall. An independently established mandatory escalation trigger may still be referred with its unresolved facts identified. Missing evidence by itself is not an instruction to guess Investment Committee routing.

All outputs from the reviewing agent are proposals. The authorized human decision and any separate written lender consent remain necessary. This policy does not grant a waiver.