Inventory Loans Sample Clauses

Inventory Loans. Loans (the "Inventory Loans") in an amount up to the lesser of: (1) 25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or (2) $1,500,000.

Inventory Loans. Section 3 of the letter agreement with respect to inventory loans, dated as of July 31, 1992, between Congress and Borrower (the "Inventory Loan Letter") is hereby deleted in its entirety and the following substituted therefor:

Inventory Loans. (a) INVENTORY ADVANCE RATES. Paragraph 2 of the Letter re: Inventory Loans, dated March 23, 1990, by LPC in favor of Congress (the "Inventory Loan Letter"), as heretofore amended by the August 1, 1995 Amendment, is hereby amended by deleting the phrase "(i) up to sixty-five (65%) percent of the Value of eligible finished goods Inventory, (ii) up to fifty (50%) percent of the Value of eligible raw materials Inventory and (iii) up to thirty (30%) percent of the scrap value of eligible work-in- process Inventory" and replacing it with the following: (i) up to sixty-five (65%) percent of the Value of eligible finished goods Inventory, (ii) up to sixty-five (65%) percent of the Value of eligible raw materials Inventory, (iii) up to sixty-five (65%) percent of the value of eligible work-in-process Inventory and (iv) up to fifty (50%) percent of the Value of eligible Inventory of scrap metal saleable as a commodity".

Inventory Loans. At any time after the issuance of the Amended DIP Financing Order, Purchaser shall have the right to make the secured loans to The Wiz Distributors, Ltd. provided for in this Section 2.6(c) (the "Inventory Loans"). Each Inventory Loan shall be made pursuant to the Amended DIP Financing Arrangements and shall have the following additional terms: (i) the Inventory Loans will be advanced in installments on such dates as shall be determined by the Purchaser in its sole discretion; (ii) Sellers' obligation to repay the Inventory Loans will be evidenced by a secured promissory note in the form attached hereto as Schedule 2.6(c); (iii) Sellers' obligation to repay the Inventory Loans, and accrued interest thereon, shall be secured by a post-petition lien and security interest pursuant to Section 364(c)(3) of the Bankruptcy Code in all of the "Collateral" (as defined in the DIP Financing Arrangements and any additional collateral provided for in any amendment thereto) and all such indebtedness of Sellers to Purchaser shall be granted an allowed super-priority administrative expense claim in accordance with Section 364(c)(1) of the Bankruptcy Code having priority in right of payment over any and all administrative expenses or priority claims of the kind specified in, or ordered pursuant to, Sections 330, 331, 503(b), 506(c) or 507(b) of the Bankruptcy Code as provided in the Amended DIP Financing Order); provided, however, that Purchaser shall not, as a result of the secured loan, have a lien on, or recourse to, any avoidance or other actions of the Sellers' bankruptcy estates; the liens granted by Sellers with respect to the Inventory Loans shall be subordinate to the payment in full of the Congress Advances, the Paragon Advances and to the extent such liens are valid and perfected, the claims, not exceeding $1.5 million (plus interest and fees), asserted by Sanwa; (iv) proceeds of the Inventory Loans shall be used by the Sellers exclusively to purchase additional first quality inventory as directed by the Purchaser (and reasonably acceptable to The Wiz, Inc. in amount, type and price). (v) If this Agreement terminates for any reason except as provided in Section 7.1(b) the liens granted by Sellers with respect to the Inventory Loans shall be subordinate to the payment in full of the Congress Advances, the Paragon Advances and, to the extent such liens are valid and perfected, the claims, not exceeding $1.5 million (plus interest and fees), asserted by Sanwa. (vi)...

Inventory Loans. Loans (the "Inventory Loans") in an amount up the lesser of: (1) 25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or (2) $500,000. Silicon shall have the right, at all times, to reserve from Loans otherwise available to Borrower the sum of $10,000 in respect of cash management services provided by Silicon to Borrower. Without limiting the definition of "Eligible Receivables", receivables owing to Borrower's subsidiaries shall not constitute Eligible Receivables.

Inventory Loans. An amount not to exceed the lesser of: (i) 20% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or (ii) an amount equal to 40% of Borrower's Eligible Receivables, or (iii) $1,250,000 (provided, however, upon Silicon's receipt and approval of Borrower's quarterly financial statements showing Borrower has complied with its Income Statement Forecast for the Year Ended December 31, 2001 (the "Forecast", SILICON VALLEY BANK AMENDMENT TO LOAN DOCUMENTS ----------------------------------------------------------------------- attached hereto as Exhibit A) for two consecutive fiscal quarters (the first of such quarters being the fiscal quarter ending June 30, 2001 or any fiscal quarter ending thereafter), such figure shall increase from $1,250,000 to $1,500,000); provided further that Silicon may revise the advance rates with respect to Inventory set forth above in Silicon's good faith business judgment based on independent third-party appraisals of the Inventory made by appraisers selected by Silicon."

Inventory Loans. (a) During the period from May 1, 1996 through July 31, 1996, and only for such period, Section 2 of the letter re: Inventory Loans, dated December 31, 1994, by ▇▇▇▇▇▇▇▇ in favor of Congress (the "Inventory Loan Letter") is hereby amended by replacing the reference to "fifty (50%) percent" with "sixty (60%) percent". (b) Effective as of May 1, 1996, Section 3(b) of the Inventory Loan Letter is hereby amended by deleting the reference to "$2,500,000" and replacing it with "$4,000,000".

Inventory Loans. Loans (the "Inventory Loans") in an amount up to the lesser of: (1) 25% (and "Advance Rate") of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or (2) an amount equal to 25% (an "Advance Rate") of the Borrower's Eligible Receivables (as defined in Section 8 above); or (3) $500,000. Silicon may, from time to time, modify the Advance Rates, in its good faith business judgment, upon notice to the Borrower, based on changes in collection experience with respect to Receivables, its evaluation of the Inventory or other issues or factors relating to the Receivables, Inventory or other Collateral. Without limiting the definition of "Eligible Receivables", receivables owing to Borrower's subsidiaries shall not constitute Eligible Receivables. LETTER OF CREDIT SUBLIMIT (Section 1.5): $2,000,000. CASH MANAGEMENT SERVICES AND RESERVES: Borrower may use up to $1,000,000 of Loans available hereunder for Silicon's Cash Management Services, including, merchant services (up to a maximum of $10,000), business credit card, and other services identified in the cash management services agreement related to such service (the "Cash Management Services"). Silicon may, in its sole discretion, reserve against Loans which would otherwise be available hereunder such sums as Silicon shall determine in its good faith business judgment in connection with the Cash Management Services, and Silicon may charge to Borrower's Loan account, any amounts that may become due or owing to Silicon in connection with the Cash Management Services. Borrower agrees to execute and deliver to Silicon all standard form applications and agreements of Silicon in connection with the Cash Management Services, and, without limiting any of the terms of such applications and agreements, Borrower will pay all standard fees and charges of Silicon in connection with the Cash Management Services. The Cash Management Services shall terminate on the Maturity Date.

Inventory Loans. The term “Inventory Loans” shall mean collectively, the Inventory Loan A and the Inventory Loan B.