Common use of Borrowing Base Loan Clause in Contracts

Borrowing Base Loan. Lender agrees to lend to Borrower, and Borrower agrees to borrow from Lender, from time to time, an amount (the "Borrowing Base") up to (i) 80% of the net amount of Eligible Accounts (as defined below), plus (ii) 50% of the net amount of Eligible Inventory (as defined below) up to a maximum of $1,750,000.00; provided, however, the total of such loan (the "Borrowing Base Loan") shall not to exceed in the aggregate at any one time $3,500,000.00. In the event that, at any time, the aggregate amount of indebtedness outstanding shall exceed the Borrowing Base, Borrower agrees to immediately repay to Lender the amount necessary to cause the outstanding balance of the Borrowing Base Loan to be no more than the Borrowing Base. Advances of the Borrowing Base Loan shall be utilized by Borrower solely for working capital. Provided that Borrower shall comply with the covenants contained in this Loan Agreement and the other Loan Documents, the Borrowing Base Loan shall be extended to Borrower until three hundred sixty-four (364) days after the date of this Loan Agreement (the "Borrowing Base Termination Date"), at which time all sums advanced hereunder shall be due and payable in full. Within the limits of this paragraph, Borrower may borrow, repay and re-borrow hereunder in accordance with the terms of this Loan Agreement. Borrower shall give Lender not less than 2 Business Days' prior notice of each requested advance specifying (i) the aggregate amount of such requested advance, and (ii) the requested date of such advance.

Borrowing Base Loan. Lender agrees to lend to Borrower, and Borrower agrees to may borrow from Lender, from time to time, an amount (the "Borrowing Base") up equal to the sum of (i) 80% of the net amount of Eligible Accounts (as defined below), plus (ii) 50% of the net amount of Eligible Inventory (as defined below) up to a maximum of $1,750,000.00up to a maximum of 50% of the outstanding balance of the Borrowing Base; provided, however, the total of such loan (the "Borrowing Base Loan") shall not to exceed in the aggregate at any one time $3,500,000.003,000,000.00 (the "Loan"). The Loan proceeds will be used by Borrower solely (a) to pay off Borrower's current lender, (b) to fund working capital requirements, (iii) to issue letters of credit, and (iv) for other general corporate purposes. In the event that, at any time, the aggregate amount of indebtedness outstanding shall exceed the Borrowing Base, Borrower agrees to immediately repay to Lender the amount necessary to cause the outstanding balance of the Borrowing Base Loan to be no more than the Borrowing Base. Advances of the Borrowing Base Loan shall be utilized by Borrower solely for working capital. Provided that Borrower shall comply with the covenants contained in this Loan Agreement and the other Loan Documents, the Borrowing Base Loan shall be extended to Borrower until three hundred sixty-four (364) days after 2 years from the date of this Loan Agreement (the "Borrowing Base Termination Date"), at which time all sums advanced hereunder shall be due and payable in full. Within the limits of this paragraph, Borrower may borrow, repay repay, and re-borrow reborrow hereunder in accordance with the terms of this Loan Agreement. Borrower shall give Lender not less than 2 Business Days' business days prior notice of each requested advance hereunder, specifying (i) the aggregate amount of such requested advance, and (ii) the requested date of such advance.