UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY Caption in Compliance with D.N.J. LBR 9004-2(c) In Re: Case No.: Hearing Date: Judge: _____________________ ______________________ ______________________ INTERIM ORDER AUTHORIZING USE OF CASH COLLATERAL The relief set forth on the following pages, numbered two (2) through nine (9) is hereby ORDERED. American LegalNet, Inc. www.FormsWorkFlow.com This matter is before the Court on the motion of _________________________________ (the "Debtor") for authority to use cash collateral on an interim basis pursuant to Bankruptcy Rule 4001(b) and 11 U.S.C. Section 363(c)(2)(B). Notice of the motion together with notice of the preliminary hearing thereon has been given and served by the Debtor to the (1) the United States Trustee, (2) the Debtor's secured creditors, (3) any committee appointed under Section 1102 if one has been appointed, and if not, to the twenty (20) largest unsecured creditors on the Rule 1007(d) list. The Court considered the motion, and after due deliberation and good and sufficient cause appearing for the entry of the within order, it is hereby found: A. Notice and Hearing. Notice of the motion and order shortening time pursuant to D.N.J. LBR 9013-1(e) and Federal Rule of Bankruptcy Procedure 9006( c) for the preliminary hearing on the Debtor's use of cash collateral has been served in accordance with Section 102(1) of the Bankruptcy Code and Federal Rule of Bankruptcy Procedure 4001(b), [or if by Consent, under Federal Rule of Bankruptcy Procedure 4001(d)] which notice is appropriate in the particular circumstances and is sufficient for all purposes under the Bankruptcy Code and the applicable Bankruptcy Rules in respect to the relief requested. B. Chapter 11 Filed. Debtor filed its petition under Chapter 11 of the Bankruptcy Code on ___________________ (the "Petition Date") and is presently operating as a debtor-inpossession in accordance with sections 1107 and 1108 of the Bankruptcy Code. C. Pre-Petition Debt. _____________________________________________, [The Secured Creditor] has asserted a secured claim against the Debtor in the approximate principal amount of $___________________ (the "Pre-Petition Debt") as of the Petition Date. 2 American LegalNet, Inc. www.FormsWorkFlow.com If consensual: __________________________________________ [The Secured Creditor] has, and the Debtor has acknowledged and agreed that [the Secured Creditor] has, as of the Petition Date, a valid and subsisting first lien and security interest in ___________________________________, ______________________________________, ______________________________________, and___________________________________________ (the "Collateral") securing the Debtor's indebtedness, in the principal amount of $_________________, together with accrued interest, fees and costs, which indebtedness is not subject to defense, offset or counterclaim of any kind or nature and that said debt is an allowed, fully secured claim under Sections 506(a) and 502 of the Bankruptcy Code. Said determination shall be binding upon the Debtor-inPossession, but shall not bind any Creditors' Committee or successor-in-interest to the Debtorin-Possession, who shall have sixty (60) days after appointment to contest the scope, validity, perfection and/or amount of _____________________ [the Secured Creditor's] claim. D. Pre-Petition Collateral. The Secured Creditor has made a prima facie showing that it has a properly perfected lien on the Debtor's property (including proceeds) at the commencement of the case, including the Debtor's accounts, inventory and other collateral which is or may result in cash collateral. [For Revolving Loans:] Further, the Debtor acknowledges that its Pre-Petition loan agreement with _______________________________ [the Secured Creditor] provided for a revolving line of credit subject to the following borrowing formula: _________% of Eligible Accounts Receivable [up to a maximum of $___________] plus __________% of Eligible Inventory [up to a 3 American LegalNet, Inc. www.FormsWorkFlow.com maximum of $_____________] (Eligible Accounts Receivable and Eligible Inventory shall have their respective meanings as defined in the loan documents between _______________________ [the Secured Creditor] and the Debtor.)] E. Cash Collateral. "Cash Collateral" as defined by Section 363(a) of the Bankruptcy Code includes post-petition proceeds, products, offspring, rents, or profits of property and the fees, charges, accounts or other payments for the use or occupancy of rooms and other public facilities in hotels, motels, or other lodging properties subject to a security interest as provided in Section 552(b) and as the term "proceeds" is described in UCC Section 9306. F. Necessity and Best Interest. The Debtor does not have sufficient unencumbered cash or other assets with which to continue to operate its business in Chapter 11. The Debtor requires immediate authority to use cash collateral as defined herein in order to continue its business operations without interruption toward the objective of formulating an effective plan of reorganization. Debtor's use of cash collateral to the extent and on the terms and conditions set forth herein is necessary to avoid immediate and irreparable harm to the estate pending a final hearing. The amount of cash collateral authorized to be used pending a final hearing or entry of a final order is not to exceed the amounts reflected in the Debtor's budget, annexed hereto as Exhibit A, for the time period from ____________________ (the Petition Date) through _________________ (the "Cash Collateral Budget"). G. Purposes. The Debtor is authorized to use cash collateral to meet the ordinary cash needs of the Debtor (and for such other purposes as may be approved in writing by the Secured Creditor) for the payment of actual expenses of the Debtor necessary to (a) maintain and 4 American LegalNet, Inc. www.FormsWorkFlow.com preserve its assets, and (b) continue operation of its business, including payroll and payroll taxes, and insurance expenses as reflected in the cash collateral budget. The Court having determined there is a reasonable likelihood that the Debtor will prevail upon the merits at the final hearing of the Motion as required by Section 363(c)(3) of the Bankruptcy Code, and for good cause shown, it is ORDERED as follows: 1. Use of Cash Collateral. [If applicable: The Secured Creditor consents and] the Debtor is authorized,