Common use of Limitation on Borrowings Clause in Contracts

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount of the Line of Credit, shall not at any time exceed a borrowing base consisting of the aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts, plus (ii) fifty percent (50%) of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s gross sales for said period. If such dilution of Borrower’s accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivable.

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts, plus (ii) fifty percent (50%) 's assigned eligible accounts receivable. All of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.. As used herein, "eligible accounts receivable" shall consist solely of trade accounts created in the ordinary course of Borrower's business, upon which Borrower's right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a perfected security interest of first priority, and shall not include:

Limitation on Borrowings. (i) Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts, plus (iiA) fifty percent (50%) of unbilled accounts receivable, up to an amount of the value lesser of (1) $5,000,000 and (2) seventeen and one-half percent (17.5%) of eligible accounts receivable, and (B) seventy percent (70%) of Borrower’s Eligible Inventory or $10,000,000's eligible accounts receivable (the sum of “A” and “B”, whichever is lesshereafter, and less (iii) an amount equal to the Borrowing Base Reserve“Availability”). The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.

Limitation on Borrowings. Outstanding At any time when outstanding borrowings under the Line of Credit exceed $10,000,000.00, and Borrower's ratio of Total Liabilities to Tangible Net Worth under Section 4.9 is greater than 2.50 to 1.0, and Borrower's Current Ratio under Section 4.9 is less than 1.20 to 1., the outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty Seventy-Five percent (8075%) of Borrower’s 's Eligible AccountsAccounts Receivable (as hereinafter defined), plus (ii) fifty Fifty percent (50%) of the value of Borrower’s 's Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to as hereinafter defined). All of the Borrowing Base Reserve. The foregoing shall be determined by Bank in its reasonable discretion upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time reasonably require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months current quarter shall at all times shall be less than five ten percent (510%) of Borrower’s 's gross sales for said periodthe current quarter. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five ten percent (510%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.

Limitation on Borrowings. (i) Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (iA) fifty percent (50%) of unbilled accounts receivable, up to an amount of the lesser of (1) $7,500,000.00 and (2) thirty percent (30%) of eligible accounts receivable, and (B) eighty percent (80%) of Borrower’s Eligible Accounts's eligible accounts receivable (the sum of “A” and “B”, plus (ii) fifty percent (50%) of hereafter, the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve“Availability”). The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts, plus (ii) fifty percent (50%) 's eligible accounts receivable. All of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.. As used herein, "eligible accounts receivable" shall consist solely of trade accounts created in the ordinary course of Borrower's business, upon which Borrower's right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a perfected security interest of first priority, and shall not include:

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty percent (8080.0%) of Borrower’s Eligible Accounts, plus (ii) fifty percent (50%) 's eligible accounts receivable. All of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.. As used herein, "eligible accounts receivable" shall consist solely of trade accounts created in the ordinary course of Borrower's business, upon which Borrower's right to receive payment is absolute and not contingent upon the fulfillment of any condition whatsoever, and in which Bank has a perfected security interest of first priority, and shall not include:

Limitation on Borrowings. Outstanding borrowings under the Line of CreditCredit together with all amounts reserved thereunder, whether before or after any increase to a maximum of the principal amount of the Line of Credit, shall not at any time exceed a borrowing base consisting of the aggregate result of (i) eighty percent Margined Eligible Accounts Receivable (80%) of Borrower’s Eligible Accountsas defined below), plus (ii) fifty percent (50%) of the value of Borrower’s Margined Eligible Inventory or $10,000,000(as defined below), whichever is less, and less plus (iii) an amount equal to Deemed Margined Eligible Equipment (as defined below), minus (iv) the Availability Block (as defined below) (said result, the “Borrowing Base ReserveBase”). The All of the foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower Xxxxxxxx acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five ten percent (510%) of Borrower’s Xxxxxxxx's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five ten percent (510%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable Eligible Accounts Receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivable.Xxxxxxxx's Eligible Accounts Receivable. As used herein:

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty ninety percent (8090%) of Borrower’s Eligible AccountsAccounts Receivable, as defined below, plus (ii) fifty seventy five percent (5075%) of the value of Borrower’s Eligible Inventory Inventory, as defined below, with value defined as the lower of cost or $10,000,000, whichever is less, and less (iii) an amount equal to fair market value on a first-in first- out basis determined in accordance with generally accepted accounting principles. All of the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable Eligible Accounts Receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivable's Eligible Accounts Receivable.