Common use of EX-IM Advances Clause in Contracts

EX-IM Advances. (a) Bank will make EX-IM Advances not exceeding (i) the lesser of (x) the EX-IM Committed Line or (y) the Foreign Borrowing Base, minus (ii) the outstanding principal balance of any EX-IM Advances. Amounts borrowed under this Section may be repaid and reborrowed during the term of this EX-IM Agreement. Notwithstanding the foregoing or any other term or provision hereof, no new EX–IM Advances may be made if the aggregate amount of credit extensions under the Domestic Loan Agreement (other than for the Term Loan Advances and the Existing Equipment Advances, as each of such terms in defined in the Domestic Loan Agreement) plus the EX-IM Advances plus any proposed EX-IM Advance exceeds the Maximum Dollar Amount (as defined in the Domestic Loan Agreement). (b) To obtain an EX-IM Advance, Borrower must notify Bank by facsimile or telephone by 3:00 p.m. Pacific time on the Business Day the EX-IM Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank a completed Transaction Report attached as Exhibit B and submit purchase orders and Export Orders in connection with such EX-IM Advance. Bank will credit EX-IM Advances to Borrower’s deposit account. Bank may make Credit Extensions under this EX-IM Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Credit Extensions are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss suffered by Bank from that reliance. (c) The EX-IM Committed Line terminates on the EX-IM Maturity Date, when all EX-IM Advances and other amounts due under this EX-IM Agreement are immediately payable.

EX-IM Advances. (a) Subject to the terms of this Agreement, Borrower may request that Bank will make finance specific EX-IM Advances not exceeding (i) Eligible Foreign Accounts. Bank may, in its sole discretion in each instance, finance such EX-IM Eligible Foreign Accounts by extending credit to Borrower in an amount equal to the lesser result of (x) the Foreign Advance Rate multiplied by the face amount of the EX-IM Committed Line or Eligible Foreign Account (y) the Foreign Borrowing Base, minus (ii) the outstanding principal balance of any “EX-IM AdvancesAdvance”). Amounts borrowed under this Section may be repaid and reborrowed during Bank may, in its sole discretion, change the term percentage of this the Foreign Advance Rate for a particular EX-IM AgreementEligible Foreign Account on a case by case basis. Notwithstanding the foregoing or any other term or provision hereofWhen Bank makes an EX-IM Advance, no new EX–IM Advances may be made if the aggregate amount of credit extensions under the Domestic Loan Agreement (other than for the Term Loan Advances and the Existing Equipment Advances, as each of such terms in defined in the Domestic Loan Agreement) plus the EX-IM Advances plus any proposed Eligible Foreign Account becomes an “EX-IM Advance exceeds Financed Receivable.” (b) The aggregate face amount of all EX-IM Financed Receivables outstanding at any time may not exceed the Maximum Dollar Amount (as defined in the Domestic Loan Agreement)EX-IM Facility Amount. (bc) To obtain an EX-IM Advance, Borrower must notify Bank by facsimile or telephone by 3:00 p.m. Pacific time on the Business Day the EX-IM Advance is to be made. Borrower must promptly confirm the notification by delivering to Bank a completed Transaction Report attached as Exhibit B and submit purchase orders and Export Orders in connection with such EX-IM Advance. Bank will credit EX-IM Advances to Borrower’s deposit account. Borrower will deliver an Invoice Transmittal for each EX-IM Eligible Foreign Account it offers. Bank may rely on information set forth in or provided with the Invoice Transmittal. Bank may make Credit Extensions under this EX-IM Agreement based on instructions from a Responsible Officer or his or her designee or without instructions if the Credit Extensions are necessary to meet Obligations which have become due. Bank may rely on any telephone notice given by a person whom Bank LOAN AND SECURITY AGREEMENT (EX-IM LOAN FACILITY) believes is a Responsible Officer or designee. Borrower will indemnify Bank for any loss suffered by Bank from that reliance. (cd) The This EX-IM Committed Line terminates Agreement shall terminate on the EX-IM Maturity Date, when all EX-IM Advances and other amounts due under this EX-IM Agreement are immediately payable. (e) Bank may, at its option, conduct a credit check of the Account Debtor for each Account requested by Borrower for financing hereunder in order to approve any such Account Debtor’s credit before agreeing to finance such Account. Bank may also verify directly with the respective Account Debtors the validity, amount and other matters relating to the Accounts (including confirmations of Borrower’s representations in Section 5) by means of mail, telephone or otherwise, either in the name of Borrower or Bank from time to time in its sole discretion. (f) Bank may notify any person owing Borrower money of Bank’s security interest in the funds and verify and/or collect the amount of the Account. (g) Notwithstanding anything to the contrary contained herein, Bank is not obligated to finance any EX-IM Eligible Foreign Accounts. Bank and Borrower hereby acknowledge and agree that Bank’s agreement to finance EX-IM Eligible Foreign Accounts hereunder is discretionary in each instance. Accordingly, there shall not be any recourse to Bank, nor liability of Bank, on account of any delay in Bank’s making of, and/or any decline by Bank to make, any loan or advance requested hereunder. In addition, this EX-IM Agreement may be terminated by Borrower or Bank at any time.