Advance Amounts; Maximum Inventory Facility. Provided an Event of Default does not exist, Purchaser, from time to time and during the term of this Rider, at Seller’s request, may at Purchaser’s discretion and subject to all of the terms and conditions of this Rider and the Agreement, make advances (each an “Advance” and collectively the “Advances”) to or for the benefit of Seller in an aggregate amount up to and not to exceed, as of any date of determination, the Inventory Advance Rate of the net orderly liquidation value of the Eligible Inventory; provided, however, the Advances against Eligible Inventory shall at no time exceed one hundred percent (100%) of all total Eligible Accounts multiplied by the Advance Rate (the “Maximum Inventory Facility”). Purchaser will not make any Advance under this Rider until (i) Cxxxx Xxxxxx and Axxx Xxxxxxx deliver to Purchaser a validity guaranty in a form acceptable to Purchaser in its sole discretion, and (ii) Purchaser receives evidence that Seller’s EBITDA for any three consecutive months is greater than or equal to the EBITDA projected for September 2022,October 2022, and November 2022 in the Plan with the first month being compared to September 2022, the second to October 2022, and the third to November 2022.
Advance Amounts; Maximum Inventory Facility. Provided an Event of Default does not exist, Purchaser, from time to time and during the term of this Rider, at Seller’s request, may at Purchaser’s discretion and subject to all of the terms and conditions of this Rider and the Agreement, make advances (each an “Advance” and collectively the “Advances”) to or for the benefit of Seller in an aggregate amount up to and not to exceed, as of any date of determination the lessor of (i) fifty percent (50%) of Eligible Inventory (as defined in Section 2.7 below) valued at the lower of cost or market value or (ii) seventy-five (75%) of the net orderly liquidation value of the Eligible Inventory; provided, however, the Advances against Eligible Inventory shall at no time exceed fifty percent (50%) of the sum of (a) all total outstanding Purchased Eligible Accounts multiplied by the Advance Rate, plus (b) the Balance Subject to Funds Usage Daily Fee (the “Maximum Inventory Facility”).
