The Clause In Tab 7 That Turned A Nepotism Pitch Into A Boardroom Coup-olive

The Newton’s cradle kept clicking on Richard’s desk.

Clack. Clack. Clack.

Daniel Gray stood beside the massive walnut desk like he had been invited there by the building itself. Richard’s face had gone the color of wet ash. Ava sat on the sofa with the cold Diet Coke can pressed beneath one swollen eye, her neon pink jumpsuit suddenly too bright for the room.

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“What do you mean security works for you?” Richard asked.

Gray set the Newton’s cradle down with two fingers.

“I mean City National sold me your bridge note at 90 cents on the dollar eight minutes ago,” he said. “Your bank was nervous. Your covenants were uglier than your daughter’s slide deck.”

Ava made a small offended sound.

Nobody looked at her.

Richard swallowed. His throat worked hard above his loosened tie.

“That loan isn’t due until next week.”

“The maturity date is next week,” Gray said. “Default is today.”

The air conditioning pushed a cold strip of air across the room. I could smell Richard’s cologne, stale coffee, and the faint chemical tang of lemon polish from the credenza behind me. My cardboard box was still downstairs at the security desk, probably sagging under the rainwater soaking into the bottom.

Gray turned toward me.

“Karen, Tab 7.”

I didn’t move quickly. Fast movement would have looked like panic. I opened the leather binder on Richard’s desk, passed the vendor contract, the licensing summary, and the debt schedule, then stopped at the bridge loan agreement.

The tab was red.

Richard saw it and his jaw twitched.

I slid one page out and placed it flat on the desk.

“Section 12.4,” I said. “Qualified Governance Covenant. The borrower must maintain an independent audit committee chair with appropriate financial reporting experience. Failure triggers technical default.”

Gray tapped the line once.

“Your audit chair is your brother-in-law.”

Richard’s mouth opened.

“And he is a dentist,” Gray finished.

Ava sat forward. “Uncle Jerry manages his own portfolio.”

Gray looked at her the way a surgeon looks at a dirty instrument.

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