Common use of Equipment Loan Clause in Contracts

Equipment Loan. Pursuant to the terms of this Agreement and subject to the satisfaction of the conditions precedent referred to in Section 6 hereof, the Bank agrees to lend to the Borrower, and the Borrower may, in its sole discretion, borrow from the Bank, advances not to exceed in the aggregate at any time the maximum credit limit (the "Equipment Loan") equal to Four Million Dollars ($4,000,000.00). Advances under the Equipment Loan shall be made in an amount equal to up to one hundred percent (100%) of the purchase price of each such piece of equipment, as reflected on an invoice in form acceptable to the Bank. Advances under the Equipment Loan may be made to the Borrower during the period from the date hereof until June 30, 2000, unless an Event of Default or a Default occurs, subject to the maximum credit amount set forth in this Section 3. 1. On June 30, 2000, the principal balance then outstanding under the Equipment Loan shall no longer be available to the Borrower for borrowing on a revolving basis. Such amount shall be repaid as provided in that certain promissory note in the form of Exhibit 3.1A attached hereto, and any amendments, modifications, replacements or substitutions thereof ("Equipment Note 2000"), which shall provide for, among other things, a seven (7) year straight-line amortization schedule. Such amount shall be repaid in accordance with the terms of Equipment Note 2000. Any unused portion of the Equipment Loan available on June 30, 2000 and not evidenced by Equipment Note 2000 shall be available to the Borrower for revolving advances under the Equipment Loan until June 30, 2001. On June 30, 2001, the line of credit feature of the Equipment Loan shall terminate, and the then outstanding principal balance of the Equipment Loan plus accrued and unpaid interest thereon shall be repaid in accordance with the terms of that certain promissory note in the form of Exhibit 3.1B attached hereto, and any amendments, modifications, replacements or substitutions thereof ("Equipment Note 2001"), which shall provide for, among other things, a seven (7) year straight-line amortization schedule.

Equipment Loan. Pursuant (a) Subject to, and in accordance with, the within Agreement, until the occurrence and continuance of an Event of Default and upon satisfaction of all conditions precedent described in Section 6(b) below, on or before May 26, 2007 (the "Draw Period"), Borrower may borrow, for the purposes of acquiring production machinery and equipment up to the terms lesser of this Agreement and subject to the satisfaction (a) eighty (80%) percent of the conditions precedent referred to in Section 6 hereof, eligible (as determined by the Bank agrees to lend to the Borrower, and the Borrower may, in its sole discretion, borrow from Bank) "hard costs" acquisition costs of Equipment deemed acceptable by the Bank, advances not to exceed in excluding freight, installation costs, and other soft costs or (b) the aggregate at any time lesser of (i) (I) the maximum credit limit difference between the Credit Limit and (II) the then outstanding balance under the Line of Credit, or (ii) Two Million ($2,000,000.00) Dollars (the "Equipment Loan") equal to Four Million Dollars ($4,000,000.00). Advances under the The Equipment Loan shall be made in an amount equal to up to one hundred percent (100%) of the purchase price of each such piece of equipment, as reflected on an invoice in form acceptable to the Bank. Advances under the Equipment Loan may be made to the Borrower during the period from the date hereof until June 30, 2000, unless an Event of Default or a Default occurs, subject to the maximum credit amount set forth in this Section 3. 1. On June 30, 2000, the principal balance then outstanding under the Equipment Loan shall no longer be available to the Borrower for borrowing on a revolving basis. Such amount shall be repaid as provided in that certain promissory note in the form of Exhibit 3.1A attached hereto, and any amendments, modifications, replacements or substitutions thereof ("Equipment Note 2000"), which shall provide for, among other things, a seven (7) year straight-line amortization schedule. Such amount shall be repaid in accordance with the terms of Equipment a certain Term Note 2000. Any unused portion of the Equipment Loan available on June 30, 2000 and not evidenced by Equipment Note 2000 shall be available to the Borrower for revolving advances under the Equipment Loan until June 30, 2001. On June 30, 2001(hereinafter, the line of credit feature of the Equipment Loan shall terminate, and the then outstanding principal balance of the Equipment Loan plus accrued and unpaid interest thereon shall be repaid in accordance with the terms of that certain promissory note "Term Note") in the form of Exhibit 3.1B attached 2 annexed hereto to be executed by Borrower. (b) Borrower may request the borrowing under its Equipment Loan by completing and delivery to the Bank an Equipment Loan Certificate in the form of Exhibit 3 annexed hereto, which Equipment Loan Certificate shall specify, without limitation, the following: (i) the amount of the proposed Loan, (ii) the Business Day of the proposed Equipment Loan, (iii) the use of the proceeds of the proposed Equipment Loan, and supporting documentation, including, without limitation, any amendmentspurchase invoices, modificationsevidencing the Borrower's intended use of the proceeds, replacements or substitutions thereof and ("Equipment Note 2001"), which shall provide for, among other things, a seven (7iv) year straight-line amortization schedulethe Borrower's certification that there are no Events of Default existing.

Equipment Loan. Pursuant Subject to the terms of and conditions set forth in this Agreement and subject to the satisfaction of the conditions precedent referred to in Section 6 hereofAgreement, the Bank hereby establishes for the benefit of the Borrower a non-revolving line of credit facility (the “Equipment Loan”) in the maximum aggregate principal amount of $1,000,000.00 (the “Permitted Loan Limit”) upon the following terms and conditions: (a) The Bank agrees from time to time during the period (the “Advance Period”) from the date hereof until the earlier of (i) the date when the Bank has made Advances (as hereinafter defined) which, in the aggregate, equal the Permitted Loan Limit, (ii) the date when the Bank receives written notice from the Borrower (which note shall be irrevocable) informing the Bank that the Borrower does not intend to request further advances hereunder and acknowledging that the Bank shall have no obligation to make further Advances hereunder, or (iii) October 31, 2012, or such later date as may be designated by the Bank by written notice to the Borrower (the “Conversion Date”) to lend to the Borrower, and Borrower under the Equipment Loan upon the request of the Borrower may, in its sole discretion, borrow from up to the Bank, advances not Permitted Loan Limit subject to exceed the terms and conditions set forth herein and in the Note (as hereinafter defined). During the Advance Period, the Borrower shall be entitled to receive up to the Permitted Loan Limit in one or more advances (each, an “Advance” and collectively, the “Advances”), except as otherwise specifically set forth in this Agreement. In no event may the aggregate at any time principal amount advanced under the maximum credit limit (Equipment Loan exceed the "Equipment Loan") equal to Four Million Dollars ($4,000,000.00)Permitted Loan Limit. Advances under the Equipment Loan shall be used solely to finance the acquisition of equipment and machinery (“Equipment”), shall be evidenced by a Non-Revolving Equipment Line of Credit Note in the face amount of $1,000,000.00 executed or to be executed by the Borrower in favor of the Bank (as the same may be amended, modified, renewed, extended or replaced from time to time, the “Note”) acceptable to the Bank, shall bear interest at the rate or rates set forth in the Note and shall be payable as set forth in the Note. After the Expiration Date, the Borrower shall not be entitled to receive any further Advances. (b) Upon satisfaction of the conditions precedent set forth in this Agreement, the Note and the other Loan Documents (as hereinafter defined), the Borrower shall be entitled to obtain Advances during the Advance Period under the Equipment Loan by giving written notice to the Bank (which notice can be made by electronic mail and facsimile transmission, immediately confirmed by sending the original notice to the Bank so that the same is received by the Bank no later than three (3) Business Days (as defined in an the Note) after the date of the electronic mail or facsimile transmission), which request shall be in the form attached hereto, or such other form as may be acceptable to the Bank, and shall specify: (i) the amount equal of the requested Advance, (ii) the date on which the Advance is requested (which must be a Business Day) and (iii) a complete, adequate description of the Equipment being acquired, and shall be accompanied by all pertinent information relating to up the Equipment, including the purchase price and a copy of the invoice or purchase order, together with all other relevant information relating to one hundred such Equipment as the Bank may request. The amount of each Advance may not exceed ninety percent (10090%) of the purchase price of each such piece the Equipment being purchased. (c) On the Conversion Date, the aggregate outstanding principal amount of equipment, as reflected on an invoice in form acceptable to the Bank. Advances under the Equipment Loan may will be made converted to a term loan, upon the Borrower during the period from the date hereof until June 30, 2000, unless an Event of Default or a Default occurs, subject to the maximum credit amount terms set forth in this Section 3. 1the Note. The amortization schedule of the term loan shall be determined by the Bank on the Conversion Date based on the nature and type of Equipment financed and, if necessary, the Note shall be modified accordingly. On June 30, 2000the Conversion Date, the principal balance then outstanding under the Equipment Loan Borrower shall no longer be available pay to the Borrower for borrowing on Bank a revolving basis. Such amount shall be repaid as provided in that certain promissory note commitment fee in the form amount of Exhibit 3.1A attached hereto, and any amendments, modifications, replacements or substitutions thereof fifty ("Equipment Note 2000"), which shall provide for, among other things, a seven 50) basis points (70.50%) year straight-line amortization schedule. Such amount shall be repaid in accordance with the terms of Equipment Note 2000. Any unused portion of the Equipment Loan available on June 30, 2000 and not evidenced by Equipment Note 2000 shall be available to the Borrower for revolving advances under the Equipment Loan until June 30, 2001. On June 30, 2001, the line of credit feature of the Equipment Loan shall terminate, and the then aggregate outstanding principal balance of the Equipment Loan plus accrued and unpaid interest thereon shall be repaid in accordance with Note on the terms of that certain promissory note in Conversion Date which is being converted to the form of Exhibit 3.1B attached hereto, and any amendments, modifications, replacements or substitutions thereof ("Equipment Note 2001"), which shall provide for, among other things, a seven (7) year straight-line amortization scheduleterm loan.