Common use of Acquisition Advances Clause in Contracts

Acquisition Advances. (i) Subject to and upon the terms and conditions of this Agreement, Bank agrees to make two Acquisition Advances to Borrower in two tranches, Acquisition Tranche A and Acquisition Tranche B. Borrower may request one Acquisition Line Advance under Acquisition Tranche A at any time from the Third Amendment Date through the Acquisition Tranche A Availability End Date. Borrower may request one Acquisition Advance under Acquisition Tranche B at any time from the first Business Day following any Acquisition Tranche A Advance through the Acquisition Tranche B Availability End Date. The aggregate outstanding amount of all Acquisition Advances shall at no time exceed the Acquisition Line and each Acquisition Advance shall be in a minimum amount of $250,000. Proceeds of the Acquisition Advances shall be used by Borrower to make a Permitted Acquisition. No Acquisition Advance shall exceed 100% of the purchase price of a Permitted Acquisition. Notwithstanding the foregoing, Bank shall not make any Acquisition Advance if Borrower has not maintained a Liquidity of at least $60,000,000 at all times. (ii) Interest shall accrue from the date of each Acquisition Advance at the rate specified in Section 2.3(a), and shall be payable in accordance with Section 2.3(c). The Acquisition Tranche A Advance shall be payable in equal monthly installments of principal each in an amount sufficient to fully amortize the Acquisition Tranche A Advance by the Acquisition Line Maturity Date, plus all accrued interest, beginning on the first Business Day of the first month following the funding of such advance, and continuing on the same day of each month thereafter until the Acquisition Line Maturity Date. The Acquisition Tranche B Advance shall be payable in equal monthly installments of principal each in an amount sufficient to fully amortize the Acquisition Tranche B Advance by the Acquisition Line Maturity Date, plus all accrued interest, beginning on the first Business Day of the first month following the funding of such advance, and continuing on the same day of each thereafter until the Acquisition Line Maturity Date. No Acquisition Advance, once repaid, may be reborrowed. Except as set forth in the LIBOR/Prime Referenced Rate Addendum, Borrower may prepay all or any portion of an Acquisition Advance without penalty or premium. (iii) When Borrower desires to obtain an Acquisition Advance, Borrower shall notify Bank (which notice shall be irrevocable) by facsimile transmission to be received no later than 3:00 p.m. Pacific time three Business Days before the day on which the Acquisition Advance is to be made. Such notice shall be substantially in the form of Exhibit C and the minimum amount requested shall be no less than $250,000. The notice shall be signed by a Responsible Officer or its designee.