Common use of Line of Credit Clause in Contracts

Line of Credit. The Purchaser hereby agrees to provide to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request (the "Draw Down Amount"). (b) Upon receipt of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 2 contracts

Sources: Purchase and Line of Credit Agreement (Milestone Scientific Inc/Nj), Purchase Agreement (Milestone Scientific Inc/Nj)

Line of Credit. The Purchaser hereby Each Lender severally agrees to provide make loans (each a “Line of Credit Loan” and collectively, the “Line of Credit Loans”) to the Company Borrower from time to time on any one or more Business Days from and after the Restatement Date (through the Agent as set forth in Section 2.1.4) to but excluding the Maturity Date applicable to Line of Credit Loans, during which period the Borrower may borrow, repay and re-borrow in accordance with the provisions hereof up to an additional $500,000 aggregate principal amount not exceeding each such Lender’s Pro Rata Percentage of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company Available Amount on such Business Day, in aggregate amounts up to the Purchaser specifying lesser of the amount requested Available Amount or the then-current Borrowing Base Availability (the “Line of Credit”). The Borrower hereby acknowledges that $7,000,000.00 of “Line of Credit Advances” and $30,000,000.00 of “Regular Swing Line Loans” under the Existing Credit Agreement are outstanding as of the date hereof, which shall be deemed to be Line of Credit Loans or Swing Line Loans under this Agreement on and after the Restatement Date. Line of Credit Loans may be made as LIBOR Rate Advances or Base Rate Advances. The Line of Credit Loans shall be evidenced by and repayable in accordance with the Company terms of the Borrower’s promissory notes to each of the Lenders (as the same may be amended, supplemented or otherwise modified from time to time, together with any replacements thereof or substitutions therefor, the “Line of Credit Notes”), the form of which amount must be for at least $100,000 is attached as Exhibit 2A. The Lenders, in their unanimous, sole and absolute discretion, may elect to make Line of or any multiple thereof) the Purchaser shall loan Credit Loans to the Company the amount set forth Borrower in such request (the "Draw Down Amount"). (b) Upon receipt excess of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company amounts available pursuant to the provisions terms of this Agreement, and any such Line of Credit Loans shall also be governed by the terms hereof. The Lenders shall also have the option, in their unanimous, sole discretion and without any obligation to do so, to extend the Maturity Date applicable to the Line of Credit Loans. In the event that the Lenders elect to extend such Maturity Date, the Agent shall give notice to the Borrower pursuant to Section 7A13.18.

Appears in 2 contracts

Sources: Credit Agreement (Leucadia National Corp), Credit Agreement (National Beef Packing Co LLC)

Line of Credit. The Purchaser hereby agrees On the Closing Date, subject to provide to the Company up to an additional $500,000 principal amount fulfillment of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount all conditions precedent set forth in such request (Section 16, Lender agrees to open the "Draw Down Amount"). (b) Upon receipt Line of Credit in favor of Borrower so that, during the Draw Down Amount and in consideration thereofperiod from the Closing Date to, but not including, the Company shall deliver Termination Date, so long as there is not in existence any Default Condition or Event of Default and the requested Borrowing, if made, will not cause a Default Condition or Event of Default to exist, Borrower may borrow and repay and reborrow Advances in up to a maximum aggregate principal amount outstanding at any one time equal to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the original principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day Line of the month subsequent Credit; subject, however, to the Note Date. requirement that at no time shall the aggregate principal amount of (i) outstanding Advances under the Line of Credit, plus (ii) A warrant (the "Draw Down Warrant") in aggregate amount of all Letter of Credit Obligations, exceed the form annexed hereto as Exhibit C except that Commitment or, during any Margining Period, the warrant lesser of (A) the Commitment or (B) the Margin (such requirement being referred to herein as the "Margin Requirement"), and subject, further, to the requirement that if, at any time during any Margining Period, the Margin Requirement is not satisfied, Borrower will immediately repay the then principal balance of the Master Note by that amount necessary to satisfy the Margin Requirement. All proceeds so obtained under the Line of Credit may be used by Borrower for working capital in such manner as Borrower may elect in the ordinary course of its business operations. The Debts arising from Advances made to or on behalf of Borrower under the Line of Credit shall be for evidenced by the purchase of that number of shares of Common Stock as is equal Master Note, which shall be executed by Borrower and delivered to 20,000 for each $100,000 Lender on the Closing Date. The outstanding principal amount of the Draw Down NoteMaster Note may fluctuate from time to time, (B) but shall be exercisable commencing due and payable in full on the Note Date Termination Date, and shall bear interest from the date of each disbursement of principal until paid in full at the Applicable Rate, payable in the manner described in Section 2.2.1. Subject to and including any contrary provisions of Section 2.2.1 in respect of LIBOR Borrowings, Borrower shall have the 5th anniversary option to request Advances under the Line of Credit by telephone pursuant to the Telephone Instructions Letter or in a writing delivered to Lender not later than 11:00 a.m. (Atlanta, Georgia time) on the date of the Note Daterequested Advance; provided, (C) however, that any telephone requests shall be at a per share purchase price equal to made in accordance with the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant Telephone Instructions Letter and, (C) unless otherwise approved by Lender, confirmed in Section 2 thereof shall provide that the registration statement should be filed no writing not later than the 90th day after Business Day following the Note Date and that disbursement of the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Daterequested Advance. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Loan and Security Agreement (Tekgraf Inc)

Line of Credit. The Purchaser hereby Each Lender severally agrees to provide make loans (each a "Line of Credit Loan" and collectively, the "Line of Credit Loans") to the Company Borrower from time to time on any one or more Business Days from and after the Restatement Date (through the Agent as set forth in Section 2.1.4) to but excluding the Maturity Date applicable to Line of Credit Loans, during which period the Borrower may borrow, repay and re-borrow in accordance with the provisions hereof up to an additional $500,000 aggregate principal amount not exceeding each such Lender's Pro Rata Percentage of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company Available Amount on such Business Day, in aggregate amounts up to the Purchaser specifying lesser of the amount requested by Available Amount or the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request then-current Borrowing Base Availability (the "Draw Down AmountLine of Credit"). (b) Upon receipt . The Borrower hereby acknowledges that $52,375,550.72 of "Line of Credit Advances" and $0 of "Regular Swing Line Loans" under the Existing Credit Agreement are outstanding as of the Draw Down Amount date hereof, which shall be deemed to be Line of Credit Loans or Swing Line Loans under this Agreement on and after the Restatement Date. Line of Credit Loans may be made as LIBOR Rate Advances or Base Rate Advances. The Line of Credit Loans shall be evidenced by and repayable in consideration thereofaccordance with the terms of the Borrower's promissory notes to each of the Lenders (as the same may be amended, supplemented or otherwise modified from time to time, together with any replacements thereof or substitutions therefor, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date Line of receipt by the Company of the Draw Down Amount (the "Note DateCredit Notes"), (B) be the form of which is attached as Exhibit 2A. The Lenders, in their unanimous, sole and absolute National Beef Packing Company Credit Agreement 24 discretion, may elect to make Line of Credit Loans to the principal amount Borrower in excess of the Draw Down Amount and (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company amounts available pursuant to the provisions terms of this Agreement, and any such Line of Credit Loans shall also be governed by the terms hereof. The Lenders shall also have the option, in their unanimous, sole discretion and without any obligation to do so, to extend the Maturity Date applicable to the Line of Credit Loans. In the event that the Lenders elect to extend such Maturity Date, the Agent shall give notice to the Borrower pursuant to Section 7A13.18.

Appears in 1 contract

Sources: Credit Agreement (National Beef Packing Co LLC)

Line of Credit. The Purchaser hereby Subject to there being no event of default (or circumstance which would, with the passage of time or the giving of notice, become an event of default) the Bank agrees to provide to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall make a revolving credit loan to the Company (as described below) from the amount set forth date of this Agreement through the earlier of: a) a demand for payment in such request accordance with the terms of a revolving promissory note in the form attached hereto as Exhibit B (hereafter referred to as the "Draw Down AmountLine of Credit Note"). (; or b) Upon receipt June 30, 2000 (hereafter referred to as the "Line of Credit Maturity Date"). Under the Draw Down Amount and in consideration thereofLine of Credit Note, the Company shall deliver may borrow, repay, and reborrow up to the Purchaser "Maximum Amount" which shall be the following: (ilesser of: a) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, sum of 80% of accounts receivable acceptable to the Bank which note shall (A) be dated are outstanding less than 90 days from the date of receipt by the Company invoice, plus 50% of the Draw Down Amount raw materials, plus 35% of work-in-process (the "Note Date"up to a maximum work-in-process advance of $250,000.00), (B) be in the principal plus $500,000.00 for fixed assets availability, less a reserve amount of the Draw Down Amount and (C) require interest be payable commencing on the first day outstanding balance of the month subsequent to Consolidation Term Loan, the Note Date. (ii) A warrant reserve amount will be reduced by the monthly principal payments as further described in the Consolidation Term Loan section above (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) sum of which shall be for called the purchase "Borrowing Base"); or b) $3,500,000.00. Should the total amount outstanding under the Line of Credit Note at any time exceed the Maximum Amount, the Company shall, upon notification, reduce the amount outstanding to an amount that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price less than or equal to the closing price Maximum Amount. The Line of a share of Common Stock on the trading day immediately preceding the Note Date Credit shall bear interest and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement paid as provided in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated Line of Credit Note. If at any time, equity is injected into the Note DateCompany, (B) shall refer to the Draw Down Note and the Draw Down Warrant andLeverage Ratio, (C) in Section 2 thereof shall provide that the registration statement should be filed no later as hereafter defined, is not greater than the 90th day after the Note Date and that 2.0:1, the interest rate on the Draw Down Line of Credit Note shall will be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 reduced to the Company pursuant Prime Commercial Rate of the Bank. The interest rate reduction will only occur if all financial covenants as described in this Agreement are being met and maintained. Furthermore, the Borrower shall have the added interest rate option of LIBOR, London Inter Bank Offered Rate, plus 275 basis points per annum. As Tangible Net Worth and Cash Flow Coverage ratios continues to improve the provisions applicable margin per the covenant matrix as set forth in Schedule B shall determine LIBOR interest rate benefits. Additionally, at such time a minimum of this Section 7A$3,000,000.00 equity is injected into the Company, the limited Personal Guaranty of Char▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇ll be released by the Bank. Line of Credit Loan Interest Options

Appears in 1 contract

Sources: Revolving Credit/Term Loan Agreement (Ph Group Inc)

Line of Credit. The Purchaser hereby agrees to provide Subject to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditions: (a) Upon 7 days prior written notice conditions set forth herein, Lender, from the Company date hereof until November 21, 2027 (as it may be extended in writing as set forth below, the “Maturity Date”), shall make advances to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 Borrower under a revolving line of or any multiple thereof) the Purchaser shall loan to the Company credit in the amount set forth in such request below (the "Draw Down Amount"“Line of Credit”). . ▇▇▇▇▇▇▇▇ agrees that the aggregate unpaid principal of all advances outstanding at any one time under the Line of Credit shall not exceed the Maximum Availability. The term “Maximum Availability” as used herein shall mean the lesser of (a) Twenty-Five Million Dollars ($25,000,000.00) or (b) Upon the Maximum Usage Amount. Borrower may, at its option, at any time prior to the Maturity Date borrow, repay and reborrow amounts under the Line of Credit, subject to the terms and conditions in this Agreement, up to the Maximum Availability. All advances shall be secured by the Collateral. The obligation of Borrower to repay the Line of Credit advances, including interest thereon, shall be evidenced by a promissory note of even date herewith payable to Lender in the amount of Twenty-Five Million Dollars ($25,000,000.00) (as amended, restated, modified and otherwise in effect from time to time, the “Note”). As long as no Event of Default has occurred and is continuing, Lender will consider in its sole discretion a renewal of the Line of Credit for one (1) year, upon receipt of the Draw Down Amount ▇▇▇▇▇▇▇▇’s written request for such renewal (and in consideration thereof, the Company shall deliver to the Purchaser the following: such other information reasonably requested by ▇▇▇▇▇▇) no earlier than ninety (i90) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the Draw Down Amount days and (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. thirty (c30) In no event shall the Purchaser be required to loan more than $500,000 days prior to the Company pursuant Maturity Date. As a condition to such renewal, no Events of Default shall have occurred and be continuing and Borrower shall pay to Lender a nonrefundable commitment fee of twenty-five (25) basis points (0.25%) of the provisions of this Section 7AMaximum Availability. If Lender elects in its sole discretion to make such renewal in writing, then the term “Maturity Date” shall mean November 21, 2028.

Appears in 1 contract

Sources: Loan Agreement (New England Realty Associates Limited Partnership)

Line of Credit. The Purchaser hereby Each Lender severally agrees to provide make loans (each a "Line of Credit Loan" and collectively, the "Line of Credit Loans") to the Company Borrower from time to time on any one or more Business Days from and after the Effective Date (through the Agent as set forth in Section 2.1.3) to but excluding the Maturity Date applicable to Line of Credit Loans, during which period the Borrower may borrow, repay and re-borrow in accordance with the provisions hereof up to an additional $500,000 aggregate principal amount not exceeding each such Lender's Pro Rata Percentage of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company Available Amount on such Business Day, in aggregate amounts up to the Purchaser specifying lesser of the amount requested by Available Amount or the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request then-current Borrowing Base Availability (the "Draw Down Amount"). (b) Upon receipt Line of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note DateCredit"), (B) provided, however, that, prior to the Conversion Date, no Line of Credit Loans or Regular Swing Line Loans shall be in made to the principal amount extent that the Borrowing Base Availability would be less than $25,000,000. The Borrower hereby acknowledges that $6,038,595.16 of "Line of Credit Advances" under the Existing Credit Agreement are outstanding as of the Draw Down Amount date hereof, which shall be deemed to be Line of Credit Loans or Swing Line Loans under this Agreement on and (C) require interest after the Effective Date. Line of Credit Loans may be payable commencing on made as LIBOR Rate Advances or Base Rate Advances. The Line of Credit Loans shall be evidenced by and repayable in accordance with the first day terms of the month subsequent Borrower's promissory notes to each of the Lenders (as the same may be amended, supplemented or otherwise modified from time to time, together with any replacements thereof or substitutions therefor, the "Line of Credit Notes"), the form of which is attached as Exhibit 2A. The Lenders, in their unanimous, sole and absolute discretion, may elect to make Line of Credit Loans to the Note Date. (ii) A warrant (the "Draw Down Warrant") Borrower in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount excess of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company amounts available pursuant to the provisions terms of this Agreement, and any such Line of Credit Loans shall also be governed by the terms hereof. The Lenders shall also have the option, in their unanimous, sole discretion and without any obligation to do so, to extend the Maturity Date applicable to the Line of Credit Loans. In the event that the Lenders elect to extend such Maturity Date, the Agent shall give notice to the Borrower pursuant to Section 7A13.18.

Appears in 1 contract

Sources: Credit Agreement (National Beef Packing Co LLC)

Line of Credit. The Purchaser Subject to the terms and conditions of this Agreement, Bank hereby agrees to provide make Loans to Borrower from time to time up to and including the Company Termination Date in an aggregate amount not to exceed the Maximum Amount (the “Line of Credit”), the proceeds of which shall be used for working capital and general corporate purposes of Borrower. Any Loans made hereunder shall be evidenced by that certain Second Amended and Restated Line of Credit Note dated August 26, 2021, as may be amended or restated from time to time (the “Line of Credit Note”), all terms of which are incorporated herein by this reference. Borrower may request an increase in the Line of Credit by up to an additional Fifty Million Dollars ($500,000 principal 50,000,000.00). Borrower may request such an increase once in the minimum amount of loans upon Five Million Dollars ($5,000,000.00). Following Borrower’s request, Bank shall reunderwrite the following requested increase to the Line of Credit after first having received from Borrower (i) pro-forma financial projections for the next fiscal year, (ii) a written certification, in form and substance satisfactory to Bank, showing Borrower is, and on a pro-forma basis will be, in compliance with the terms and conditions: conditions of this Agreement, and (aiii) Upon 7 days prior written such other items and documents requested by Bank. If Bank consents to the requested increase to the Line of Credit, which consent shall be in Bank’s sole and absolute discretion, Borrower shall deliver to Bank a replacement Line of Credit Note for the full amount of the increased Line of Credit and such other documents and amendments required by Bank, the form and substance of which shall be acceptable to Bank in its sole and absolute discretion. Borrower acknowledges that the decision to increase the Line of Credit is discretionary, and Bank has no obligation to increase the Line of Credit and may decline to do so for any reason. Each Loan shall be made on notice from Borrower to Bank given in accordance with the Company Line of Credit Note (a “Loan Request”). Any Loan Request received after 11:00 a.m. (Omaha, Nebraska time) on a Business Day shall be treated as though received on the next Business Day. Subject to the Purchaser specifying timely delivery of a Loan Request, and upon fulfillment of the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount applicable conditions set forth in Article IV, Bank will make such request Loan available to Borrower in same day funds credited to Borrower’s account maintained with Bank and listed on Schedule 2.3. Bank may rely without further investigation on any Loan Request. Each Loan Request shall be irrevocable and binding on Borrower, and Borrower shall indemnify Bank against any loss or expense Bank may incur as a result of any failure (including any failure resulting from the "Draw Down Amount"). (bfailure to fulfill on or before the date specified for such Loan the applicable conditions set forth in Article IV) Upon receipt of Borrower to borrow any Loan after a Loan Request has been submitted, including, without limitation, any loss or expense incurred by reason of the Draw Down Amount and in consideration thereofliquidation or reemployment of deposits or other funds acquired by Bank to fund such Loan when such Loan, the Company as a result of such failure, is not made on such date. The submission of a Loan Request (or request for issuance of a Letter of Credit, as applicable) shall deliver to the Purchaser the following: (i) A note (constitute a "Draw Down Note") in the form annexed hereto representation by Borrower that, as Exhibit E, which note shall (A) be dated of the date of receipt by such request, no Event of Default (or event or circumstance that, with the Company passage of time or the giving of notice or both, would constitute an Event of Default) exists, and that all of the Draw Down Amount (the "Note Date")representations and warranties set forth in Article III hereof are true, (B) be in the principal amount of the Draw Down Amount accurate, and (C) require interest be payable commencing on the first day of the month subsequent to the Note Datecomplete. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Revolving Credit Agreement (Lindsay Corp)

Line of Credit. The Purchaser hereby agrees to provide Bank will establish for Borrowers for and during the period from the date hereof and until June 30, 1998 (the "CONTRACT PERIOD"), subject to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditions: conditions hereof, a revolving line of credit (the "LINE") pursuant to which Bank will from time to time make loans or other extensions of credit to Borrowers in an aggregate amount not exceeding at any time the lesser of (a) Upon 7 days prior written notice from the Company sum of (i) an amount up to eighty percent (80%) of the amount of each Borrower's Eligibles, plus (ii) an amount up to fifty percent (50%) of the amount of each Borrower's Eligible Unbilled Receivables, plus (iii) an amount up to thirty percent (30%) of the Value of each Borrower's Eligible Inventory, or (b) Twelve Million Dollars ($12,000,000.00). Notwithstanding the foregoing, the maximum amount of advances against Borrowers' Eligible Unbilled Receivables shall at no time exceed One Million Dollars ($1,000,000.00) in the aggregate. Within the limitations in this Agreement and subject to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount individual sub-limits set forth in such request this Agreement, Borrowers may borrow, repay and reborrow under the Line. The Line shall be subject to all terms and conditions set forth in all of the 2 Loan Documents which terms and conditions are incorporated herein. Borrowers' obligation to repay the loans and extensions of credit under the Line shall be evidenced by Borrowers' amended and restated promissory note (the "Draw Down Amount"). (b) Upon receipt of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Line Note") in the face amount of Twelve Million Dollars ($12,000,000.00), which shall be in the form annexed attached hereto as Exhibit E"A", which note shall (A) be dated with the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day of the month subsequent blanks appropriately filled in. Notwithstanding anything herein or elsewhere to the Note Date. contrary, Eligible Unbilled Receivables shall not include any accounts receivable arising from drilling services performed or to be performed utilizing any Drilling Equipment (ii) A warrant (the "Draw Down Warrant"as hereinafter deemed) in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal which Bank does not have a valid perfected first priority security interest or with respect to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement which Bank has not been declared effective on the 155th day after the Note Datereceived an intercreditor agreement containing notice of default, opportunity to cure and standstill protection provisions from all other lienholders in form and content acceptable to Bank. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A"

Appears in 1 contract

Sources: Loan and Security Agreement (Uti Energy Corp)

Line of Credit. The Purchaser hereby Each Lender severally agrees to provide make loans (each a "Line of Credit Loan" and collectively, the "Line of Credit Loans") to the Company Borrower from time to time on any one or more Business Days from and after the Effective Date (through the Agent as set forth in Section 2.1.3) to but excluding the Maturity Date applicable to Line of Credit Loans, during which period the Borrower may borrow, repay and re-borrow in accordance with the provisions hereof up to an additional $500,000 aggregate principal amount not exceeding each such Lender's Pro Rata Percentage of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company Available Amount on such Business Day, in aggregate amounts up to the Purchaser specifying lesser of the amount requested by Available Amount or the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request then-current Borrowing Base Availability (the "Draw Down Amount"). (b) Upon receipt Line of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note DateCredit"), (B) provided, however, that, prior to the Conversion Date, no Line of Credit Loans or Regular Swing Line Loans shall be in made to the principal amount extent that the Borrowing Base Availability would be less than $25,000,000. The Borrower hereby acknowledges that $13,000,000 of "Line of Credit Advances" and $9,274,297.95 of "Regular Swing Line Loans" under the Existing Credit Agreement are outstanding as of the Draw Down Amount date hereof, which shall be deemed to be Line of Credit Loans or Swing Line Loans under this Agreement on and (C) require interest after the Effective Date. Line of Credit Loans may be payable commencing on made as LIBOR Rate Advances or Base Rate Advances. The Line of Credit Loans shall be evidenced by and repayable in accordance with the first day terms of the month subsequent Borrower's promissory notes to each of the Lenders (as the same may be amended, supplemented or otherwise modified from time to time, together with any replacements thereof or substitutions therefor, the "Line of Credit Notes"), the form of which is attached as Exhibit 2A. The Lenders, in their unanimous, sole and absolute discretion, may elect to make Line of Credit Loans to the Note Date. (ii) A warrant (the "Draw Down Warrant") Borrower in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount excess of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company amounts available pursuant to the provisions terms of this Agreement, and any such Line of Credit Loans shall also be governed by the terms hereof. The Lenders shall also have the option, in their unanimous, sole discretion and without any obligation to do so, to extend the Maturity Date applicable to the Line of Credit Loans. In the event that the Lenders elect to extend such Maturity Date, the Agent shall give notice to the Borrower pursuant to Section 7A13.18.

Appears in 1 contract

Sources: Credit Agreement (National Beef Packing Co LLC)

Line of Credit. The Purchaser hereby agrees 2.1 Subject to provide the terms of this Agreement, the Participant makes available to the Company, a Supply Chain Line of Credit based on the amounts owed to the Company up by the Obligors under Accepted Transactions, for an amount not exceeding the Obligor Limit and the Total Limit. 2.2 The Company shall share the details regarding Transactions with the Participant, in any event not later than five (5) Business Days prior to an additional $500,000 principal amount the proposed Drawdown Date. 2.3 The Participant may, but shall not be obligated to, agree to the Company's request to drawdown on a Transaction under a relevant Transaction Request issued in accordance with Clause 2.2, as long and in so far as (i) the Receivables are Transactions, (ii) all of loans upon the following terms and conditions: conditions precedent set out in Clause 3 (aConditions Precedent) Upon 7 days prior written notice have been fulfilled to the satisfaction of the Participant or waived by the Participant, (iii) the Repayment Date of the Transactions is not later than the Termination Date (unless otherwise permitted in writing by the Participant), (iv) the Transaction Value of such Transaction mentioned in the relevant Transaction Request together with all outstanding Accepted Transactions due from the Company same Obligor and not yet repaid will not cause the Obligor Limit to be exceeded, and (v) the Purchaser specifying the amount requested representations and warranties made by the Company in this Agreement are true and correct in all material aspects on the date of submission of a Transaction Request by the Company. 2.4 Subject to Clause 2.3, the Participant shall indicate its acceptance of a relevant Transaction Request by delivering a Transaction Acceptance to the Company prior to the proposed Drawdown Date. 2.5 Subject to the fulfilment of the conditions precedent referred to in Clause 3 (which amount must be for at least $100,000 to the satisfaction of or any multiple thereof) the Purchaser Participant before the relevant Drawdown Date), the Participant shall loan disburse to the Company the amount set forth in such request Transaction Price (the "Draw Down Amount"). (bless Transaction Costs) Upon receipt of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") as specified in the form annexed hereto as Exhibit E, which note shall (A) be dated relevant Transaction Acceptance for Transactions covered thereunder into the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the principal amount of the Draw Down Amount and (C) require interest be payable commencing Designated Account on the first day of the month subsequent to the Note Drawdown Date. (ii) A warrant (2.6 For the "Draw Down Warrant") in avoidance of doubt, the form annexed hereto as Exhibit C except that the warrant (A) Transaction Price shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal calculated according to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and following formula: TP=TV / [(D) the date in section 6 thereof shall be the 155th date after the Note Date. 1+(Z x (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7AX/360))]

Appears in 1 contract

Sources: Supply Chain Line of Credit Agreement (Beam Global)

Line of Credit. The Purchaser (a) Subject to the terms and conditions of this Agreement, Lender hereby agrees to provide make advances to the Company Borrower ("Loans") from time to time up to an additional $500,000 but excluding March 31, 2006 (the "Commitment Period"), not to exceed at any time the aggregate principal amount of loans upon Four Million Six Hundred Dollars ($4,600,000.00) ("Line of Credit"), the following terms proceeds of which shall be used for working capital and conditions: (a) Upon 7 days prior written notice from general corporate purposes. The Lender shall remain committed to provide Loans to Borrower under this Agreement during the Company Commitment Period subject to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount conditions set forth in such request (the "Draw Down Amount")below. (b) Upon receipt Borrower may from time to time during the Commitment Period borrow, partially or wholly repay its outstanding Loans, and reborrow, subject to all of the Draw Down Amount limitations, terms and conditions contained herein; provided, however, that the total outstanding Loans under the Line of Credit shall not at any time exceed the maximum principal amount available under as set forth in consideration thereofSection 1.1(a). After the Commitment Period, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the outstanding principal amount of the Draw Down Amount Loans together with accrued and (C) require unpaid interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") shall amortize in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is twenty-four equal to 20,000 for each $100,000 principal amount of the Draw Down Notemonthly installments, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed due no later than the 90th first calendar day after the Note Date and of each month starting December 31, 2006; provided, however, that the entire outstanding principal amount of Loans together with accrued interest rate on shall become immediately due and payable earlier upon the Draw Down Note shall be increased if consummation of an initial public offering of securities of the registration statement has not been declared effective on the 155th day after the Note DateBorrower or a Change in Control (as defined in Section 6.1 below)." (c) In no event The Loans made by the Lender shall be evidenced by one or more accounts or records maintained by the Purchaser be required to loan more than $500,000 Lender in the ordinary course of business. The accounts or records maintained by the Lender shall govern absent demonstrable error of the amount of the Loans made by the Lender to the Company pursuant Borrower and the interest and payments thereon. Any failure so to record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay any amount owing with respect to the provisions Loans. (d) All payments to be made by Borrower shall be made without set-off, recoupment or counterclaim. Except as otherwise expressly provided herein, all payments by the Borrower shall be made to Lender at the Lender's office or agent for payment, and shall be made in dollars and in immediately available funds, no later than 2:00 p.m. (New York City time) on the date specified herein. Any payment received by Lender later than 2:00 p.m. (New York City time) shall be deemed to have been received on the following Business Day and any applicable interest or fee shall continue to accrue. (e) Whenever any payment is due on a day other than a business day, such payment shall be made on the following business day, and such extension of this Section 7Atime shall in such case be included in the computation of interest or fees, as the case may be.

Appears in 1 contract

Sources: Loan and Security Agreement (Ipg Photonics Corp)

Line of Credit. The Purchaser hereby agrees to provide Subject to the Company terms and conditions of this Agreement, Bank may, in its discretion, make a Loan or Loans to Borrowers in such amount or amounts as Borrowers may from time to time request, but not exceeding in aggregate principal amount at any one time outstanding hereunder the Line of Credit Commitment. Borrowers may, subject to the terms and conditions set forth herein, borrow hereunder up to an additional the Line of Credit Commitment amount. The Line of Credit Loan shall be payable on demand and shall bear interest at a rate per annum which shall be the Prime Rate plus one-quarter of one percent (1/4%) from time to time in effect and drawn down in aggregate amounts of not less than Fifty Thousand Dollars ($500,000 principal amount of loans upon the following terms and conditions: (a50,000) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) . Borrowers shall pay interest on the Purchaser shall loan to the Company the unpaid principal amount set forth in such request (the "Draw Down Amount"). (b) Upon receipt of the Draw Down Amount Line of Credit Loan outstanding from time to time from the date thereof until paid, commencing November 1, 1997, and in consideration thereofcontinuing on the first day of each succeeding month of each year, and upon payment of the Company outstanding principal balance of the Line of Credit Loan upon demand. The obligation of Borrowers to repay the Line of Credit Loan made by Bank and to pay interest thereon shall deliver to the Purchaser the following: (i) A note (be evidenced by a "Draw Down Note") Line of Credit Note of Borrowers substantially in the form annexed hereto as Exhibit Eof EXHIBIT A hereto, which note shall (A) be with appropriate insertions, dated the date of receipt by this Agreement and payable to the Company order of the Draw Down Amount (the "Note Date"), (B) be Bank on demand in the principal amount of the Draw Down Amount and (C) require interest be payable commencing on Line of Credit Commitment, or, if less, the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 aggregate unpaid principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary Line of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant Credit Loan made hereunder. Subject to the provisions of this Agreement, Borrowers shall be entitled under this Section 7A2.1 A to borrow funds, repay the same in whole or in part and reborrow hereunder at any time and from time to time at the discretion of the Bank prior to demand. ANYTHING HEREIN TO THE CONTRARY NOTWITHSTANDING, THE LINE OF CREDIT COMMITMENT IS A DISCRETIONARY FACILITY AND NOTHING CONTAINED IN THIS AGREEMENT SHALL REQUIRE BANK, AT ANY TIME, TO MAKE LINE OF CREDIT LOAN OR OTHER EXTENSIONS OF CREDIT TO BORROWER, AND THE GRANTING AMOUNT OF ANY LINE OF CREDIT LOAN OR OTHER EXTENSIONS OF CREDIT HEREUNDER, OTHER THAN PURSUANT TO SECTION 2.1B, SHALL AT ALL TIMES BE IN BANK'S SOLE DISCRETION.

Appears in 1 contract

Sources: Credit and Security Agreement (Telecomm Industries Corp)

Line of Credit. The Purchaser hereby agrees to provide to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditionsshall govern the Operating Line of Credit provided by ▇▇▇▇▇▇▇▇▇▇ for the benefit of the Company: ▇. ▇▇▇▇▇▇▇▇▇▇ shall provide an Operating Line of Credit totaling Four Hundred Thousand Dollars and no/l00s (a$400,000.00) Upon 7 days prior written notice from for the benefit of the Company to be drawn down on an as needed basis and subject to the Purchaser specifying terms herein. b. The Line of Credit shall be subject to interest at an amortized interest rate of Six percent (6%) per annum. The Parties hereto agree and acknowledge that NYTEX shall be responsible for and shall pay the monthly interest on the outstanding balance of the Line of Credit; said interest shall be paid by NYTEX to Bank of America, or other designee, for the benefit of Buccellatto on or before the 15th of each month while said interest is due. c. As of the date of this Letter Agreement, the amount requested by borrowed on the Company Line of Credit totals Two Hundred Eighty Two Thousand Dollars and no/100s (which amount must be for at least $100,000 282,000.00) with a remaining credit balance of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request One Hundred Eighteen Thousand Dollars and no/100s (the "Draw Down Amount"$118,000.00). (b) Upon receipt d. The parties anticipate NYTEX obtaining its own line of credit on or before December 31, 2008 and at such time as said NYTEX line of credit is acquired, the Draw Down Amount and in consideration thereofLine of Credit shall terminate, but NYTEX shall pay all amounts then due thereunder. ▇▇▇▇▇▇▇▇▇▇ agrees to continue to make the Line of Credit available until NYTEX obtains its own line of credit but not beyond December 31, 2009 unless otherwise agreed by the parties; however, the Company shall deliver be liable for all amounts, including interest, remaining payable upon and after such termination. e. NYTEX will make all reasonable efforts to pay off the Purchaser line of credit by December 31, 2008. If NYTEX has not fully paid down the following:line of credit by such date, the Parties will set a new goal of having it fully paid by December 31, 2009. (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note f. The Line of Credit shall (A) be dated the date of receipt secured by the Company assets of NYTEX and be personally guaranteed by ▇▇▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇ in such a manner that each party personally guarantees Fifty percent (50%) of the Draw Down Amount (amount Line of Credit utilized and owed by the "Note Date")Company, (B) but shall not be in the principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be personally liable for the purchase of that number of shares of Common Stock as is equal other half. Each Party hereto agrees to 20,000 for each $100,000 principal amount of execute such necessary documentation to evidence the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Datepersonal guarantee contained herein. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Letter Agreement (NYTEX Energy Holdings, Inc.)

Line of Credit. The Purchaser hereby (a) Subject to, and in accordance with, the terms and conditions of this Agreement, the Lender agrees to provide extend credit to the Company up Borrower by making loans to it, from time to time during the period commencing on the Closing Date and ending on the Line of Credit Termination Date, in an additional $500,000 principal aggregate outstanding amount of loans upon that shall not exceed, at any one time, the following terms and conditionslesser of: (ai) Upon 7 days prior written notice from One Million Five Hundred Thousand Dollars ($1,500,000.00) in principal; or (ii) (A) Prior to entry of the Company to the Purchaser specifying Final DIP Order, the amount requested authorized by the Company Interim DIP Order, and (which amount must be for at least $100,000 B) on and after the date of or any multiple thereof) entry of the Purchaser shall loan to Final DIP Order, the Company the amount set forth in such request (the "Draw Down Amount")Final DIP Order. (b) Upon receipt The Borrower shall notify the Lender in writing at least one Business Day in advance of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by each proposed borrowing under the Company Line of Credit, which borrowing date shall also be a Business Day. Each borrowing request hereunder shall be made pursuant to a borrowing notice, in form and substance acceptable to the Borrower and Lender (a “Borrowing Notice”). Each such borrowing shall be in an amount which does not exceed (a) Three Hundred Thousand Dollars ($300,000.00), minus (b) the Borrower’s projected book balance of cash and cash equivalents as of the Draw Down Amount (the "Note Date"), (B) be in the principal amount close of business on Friday of the Draw Down Amount and week following the date of such borrowing notice (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) without taking into account any such borrowing). The Borrower shall be for limited to one borrowing per week. The Borrower authorize and direct the purchase Lender to disburse the proceeds of that number of shares of Common Stock as is equal each such borrowing by wire transfer to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note DateBorrower’s demand deposit account maintained with Silicon Valley Bank. (c) In no event shall The Line of Credit Termination Date may be extended or renewed by the Purchaser be required Lender, in its sole discretion, on a day-to-day basis or otherwise, based on a letter to loan more than $500,000 such effect from the Lender to the Company pursuant Borrower or by a written agreement between the parties hereto; provided, however, the Lender shall have no duty or obligation, express or implied, to extend the Line of Credit Termination Date or consider any request for such an extension and further provided that an extension of the Line of Credit Termination Date after the occurrence of a Default or Event of Default shall not constitute a waiver of such Default or Event of Default. (d) Notwithstanding anything contained herein to the provisions contrary, the Line of this Section 7ACredit shall be a non-revolving loan facility and, therefore, each advance under the Line of Credit shall permanently reduce, dollar for dollar, the Borrower’s credit availability under the Line of Credit and the Borrower will not have the ability to re-borrow hereunder.

Appears in 1 contract

Sources: Loan and Security Agreement (Dextera Surgical Inc)

Line of Credit. The Purchaser hereby agrees On the Closing Date, subject to provide to the Company up to an additional $500,000 principal amount fulfillment of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount all conditions precedent set forth in such request (Section 16, Lender agrees to open the "Draw Down Amount"). (b) Upon receipt Line of Credit in favor of Borrower so that, during the Draw Down Amount and in consideration thereofperiod from the Closing Date to, but not including, the Company shall deliver Termination Date, so long as there is not in existence any Default Condition or Event of Default and the requested Borrowing, if made, will not cause a Default Condition or Event of Default to exist, Borrower may borrow and repay and reborrow Advances in up to a maximum aggregate principal amount outstanding at any one time equal to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the original principal amount of the Draw Down Amount Line of Credit; SUBJECT, HOWEVER, to the requirement that at no time shall the aggregate principal amount of (i) outstanding Advances under the Line of Credit, PLUS (ii) the aggregate amount of all Letter of Credit Obligations, exceed the LESSER of: (A) the Commitment or (B) the Margin (such requirement being referred to herein as the "MARGIN REQUIREMENT"); and (C) require interest SUBJECT, FURTHER, to the requirement that if, at any time, the Margin Requirement is not satisfied, Borrower will immediately repay the then principal balance of the Master Note by that amount necessary to satisfy the Margin Requirement. The initial Advance under the Line of Credit shall be payable commencing made on the first day Closing Date, shall be in that amount necessary to pay in full all outstanding Obligations under the Old Loan Agreement, and shall be used by Borrower on the Closing Date to retire all such Obligations. All proceeds obtained under the Line of the month Credit subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") Closing Date may be used by Borrower for working capital in such manner as Borrower may elect in the form annexed hereto as Exhibit C except that ordinary course of its business operations. The Debts arising from Advances made to or on behalf of Borrower under the warrant (A) Line of Credit shall be for evidenced by the purchase of that number of shares of Common Stock as is equal Master Note, which shall be executed by Borrower and delivered to 20,000 for each $100,000 Lender on the Closing Date. The outstanding principal amount of the Draw Down NoteMaster Note may fluctuate from time to time, (B) but shall be exercisable commencing due and payable in full on the Note Date Termination Date, and shall bear interest from the date of each disbursement of principal until paid in full at the Applicable Rate, payable in the manner described in Section 2.2.1. Subject to and including any contrary provisions of Section 2.2.1 in respect of LIBOR Borrowings, Borrower shall have the 5th anniversary option to request Advances under the Line of Credit by telephone pursuant to the Telephone Instructions Letter or in a writing delivered to Lender not later than 11:00 a.m. (Atlanta, Georgia time) on the date of the Note Daterequested Advance; PROVIDED, (C) HOWEVER, that any telephone requests shall be at a per share purchase price equal to made in accordance with the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant Telephone Instructions Letter and, (C) unless otherwise approved by Lender, confirmed in Section 2 thereof shall provide that the registration statement should be filed no writing not later than the 90th day after Business Day following the Note Date and that disbursement of the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Daterequested Advance. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Loan and Security Agreement (Tekgraf Inc)

Line of Credit. The Purchaser hereby agrees to provide (a) Subject to the Company terms and conditions hereof and the Non-Negotiable Promissory Note of even date herewith made by Debt Resolve in favor of Lender (the "Note"), the form of which is attached hereto as Exhibit A, Lender agrees from time to time to make loans (each, a "Loan") to Debt Resolve up to an additional a maximum aggregate amount of $500,000 275,000. Debt Resolve shall use the proceeds of each Loan for its working capital needs, including to support the operations of Debt Resolve’s debt-collection subsidiary, First Performance Corporation. Interest on the outstanding principal amount of loans upon the following terms and conditions: Note shall be at a rate of twelve percent (a12%) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount per annum, as more fully set forth in such request (the "Draw Down Amount")Note. (b) Upon receipt By written request to Lender, accompanied by a description of the Draw Down Amount and in consideration thereofuse(s) of such loan proceeds, the Company shall deliver Debt Resolve may from time to the Purchaser the following: (i) A note (time request that Lender make a "Draw Down Note") Loan in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company amount specified therein and Lender will make such Loan. Subject to Lender's review and approval of the Draw Down Amount (written request, Lender shall disburse the "Note Date"), (B) be in the principal amount of the Draw Down Amount Loan requested by wire transfer in immediately available funds to an account or accounts designated in writing by Debt Resolve, or by check if mutually agreed, within two (2) business days following Debt Resolve's written request. Each such request for a Loan shall constitute Debt Resolve's representation and warranty to Lender that no Event of Default (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") as such term is defined in the form annexed hereto as Exhibit C except that the warrant (ANote) shall be for the purchase of that number of shares of Common Stock as is equal exists at such time, or would occur after giving effect to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that any such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note DateLoan. (c) In no event shall Except as otherwise provided in Section 2 below, by not less than thirty (30) days’ written notice to Debt Resolve, Lender may demand that payment of the Purchaser entire principal balance then outstanding of the Note, together with accrued interest, be required to loan more than $500,000 to made on any date after the Company pursuant to date hereof, and Debt Resolve will pay the provisions entire amount thereof in cash on such date. The Note may, at the option of this Section 7ADebt Resolve, be prepaid at any time in whole or in part, without premium or penalty.

Appears in 1 contract

Sources: Line of Credit Agreement (Debt Resolve Inc)

Line of Credit. The Purchaser hereby On the Closing Date, the Bank agrees to provide to open the Line of Credit in favor of the Company up so that, subject to an additional $500,000 principal amount fulfillment of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount all conditions precedent set forth in such request (Section 16, during the "Draw Down Amount"). (b) Upon receipt period from the Closing Date to, but not including, the Termination Date, so long as there is not in existence any Default Condition or Event of Default and the Draw Down Amount and in consideration thereofrequested Borrowing, if made, will not cause a Default Condition or Event of Default to exist, the Company shall deliver may borrow and repay and reborrow Advances in up to a maximum aggregate principal amount outstanding at any one time equal to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (the "Note Date"), (B) be in the original principal amount of the Draw Down Amount and (C) require interest be payable commencing on the first day Line of the month subsequent Credit; SUBJECT, HOWEVER, to the Note Date. (ii) A warrant (requirements that at no time shall the "Draw Down Warrant") in aggregate principal amount of outstanding Advances and Letter of Credit Obligations exceed the form annexed hereto as Exhibit C except that the warrant LESSER of (A) shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, Commitment or (B) the Margin (such requirement being referred to herein as the "MARGIN REQUIREMENT"), and SUBJECT, FURTHER, to the requirement that if, at any time hereafter, the Margin Requirement is not satisfied, the Company will immediately repay the then principal balance of the Master Note by that amount necessary to satisfy the Margin Requirement. Proceeds of Advances obtained by the Company under the Line of Credit shall be exercisable commencing used by the Company for working capital and general corporate 1. The Company shall have the option to request Advances under the Line of Credit by telephone or in a writing delivered to the Bank not later than 12:00 noon (Atlanta, Georgia time) on the Note Date to and including the 5th anniversary date of the Note Daterequested Advance; PROVIDED, (C) HOWEVER, that any telephone requests shall be at a per share purchase price equal to made in accordance with the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant Telephone Instructions Letter and, (C) unless otherwise approved by the Bank, confirmed in Section 2 thereof shall provide that the registration statement should be filed no writing not later than the 90th day after Business Day following the Note Date and that disbursement of the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Daterequested Advance. (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Loan and Security Agreement (Moredirect Com Inc)

Line of Credit. The Purchaser hereby agrees to provide (a) Subject to the Company terms and conditions hereof, the Security Agreement of even date herewith between Arisean and Debt Resolve (the “Security Agreement”) and the Non-Negotiable Promissory Note of even date herewith made by Debt Resolve in favor of Arisean (the "Note"), Arisean agrees from time to time to make loans (each, a "Loan") to Debt Resolve up to an additional a maximum aggregate amount of $500,000 500,000. Debt Resolve shall use the proceeds of each Loan for its working capital needs, including to support the operations of Debt Resolve’s debt-collection subsidiary, First Performance Corporation. Interest on the outstanding principal amount of loans upon the following terms and conditions: Note shall be at a rate of twelve percent (a12%) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount per annum, as more fully set forth in such request (the "Draw Down Amount")Note. Debt Resolve’s obligations under the Note shall be secured by a lien and security interest in the Collateral, as more fully set forth in the Security Agreement. (b) Upon receipt By written request to Arisean, accompanied by a description of the Draw Down Amount and in consideration thereofuse(s) of such loan proceeds, the Company shall deliver Debt Resolve may from time to the Purchaser the following: (i) A note (time request that Arisean make a "Draw Down Note") Loan in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company amount specified therein and Arisean will make such Loan. Subject to Arisean's review and approval of the Draw Down Amount (written request, Arisean shall disburse the "Note Date"), (B) be in the principal amount of the Draw Down Amount Loan requested by wire transfer in immediately available funds to an account or accounts designated in writing by Debt Resolve, or by check if mutually agreed, within two (2) business days following Debt Resolve's written request. Each such request for a Loan shall constitute Debt Resolve's representation and warranty to Arisean that no Event of Default (C) require interest be payable commencing on the first day of the month subsequent to the Note Date. (ii) A warrant (the "Draw Down Warrant") as such term is defined in the form annexed hereto as Exhibit C except that the warrant (ANote) shall be for the purchase of that number of shares of Common Stock as is equal exists at such time, or would occur after giving effect to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that any such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note DateLoan. (c) In no event Except as otherwise provided in Section 2 below, by not less than thirty (30) days’ written notice to Debt Resolve, Arisean may demand that payment of the entire principal balance then outstanding of the Note, together with accrued interest, be made on any date after the date hereof, and Debt Resolve will pay the entire amount thereof in cash on such date. The Note may, at the option of Debt Resolve, be prepaid at any time in whole or in part, without premium or penalty. (d) Debt Resolve shall pay to Arisean a 1% origination fee in connection with arranging the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7ALoans, upon funding.

Appears in 1 contract

Sources: Line of Credit Agreement (Debt Resolve Inc)

Line of Credit. The Purchaser hereby From time to time prior to December 31, 1996 (the "Expiration Date"), NBD agrees to provide consider, subject to the Company up to an additional $500,000 principal amount of loans upon the following terms and conditions: (a) Upon 7 days prior written notice from the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount conditions set forth in this Agreement and in the sole discretion of NBD, lending and relending to Borrowers at any time and from time to time from the date of this Sixth Amendment such amounts as Borrowers (or Secom on behalf of Borrowers) may request (the "Draw Down Amount"). (b) Upon receipt Line of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall (A) be dated the date of receipt by the Company of the Draw Down Amount (Credit" or the "Note DateCredit"), provided that the outstanding aggregate credit shall not exceed an amount equal to the lesser of (Ba) be in the principal amount of $4,500,000 or (b) the Draw Down Amount and sum of (Ci) require interest be payable commencing on the first day 80% of the month subsequent to the Note Date. Net Qualified Accounts, (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except that the warrant (A) shall be for the purchase 50% of that number Qualified Inventory consisting of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Noteraw materials, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (Dii) the date 25% of Qualified Inventory consisting of work in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement process and finished goods; provided, however, that in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no later than the 90th day after the Note Date and that the interest rate on the Draw Down Note shall be increased if the registration statement has not been declared effective on the 155th day after the Note Date. (c) In no event shall the Purchaser amount advanced against all Qualified Inventory, at any one time outstanding, exceed the principal sum of $500,000. This Line of Credit is in replacement, but not repayment of the Joint Line of Credit described in Recital B. NOTWITHSTANDING ANYTHING SET FORTH IN THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS ON THE CONTRARY, NBD SHALL NOT BE OBLIGATED TO LEND OR RELEND TO BORROWERS AT ANY TIME; EACH BORROWING OR REBORROWING WHICH IS MADE UNDER THIS AGREEMENT WILL BE MADE AT THE OPTION, AND IN THE SOLE DISCRETION, OF NBD. All such loans will be required to loan more than $500,000 evidenced by a single Fourth Amended and Restated Master Demand Business Loan Note of the Borrowers (together with any modifications, replacements or renewals thereof, the "Line of Credit Note"), payable to the Company pursuant order of NBD and dated as of the date of the Sixth Amendment, in substantially the form of Exhibit 1.1 (1995) attached to the provisions Sixth Amendment. Interest on the outstanding loans under the Line of Credit shall accrue at the rate and be payable at the time set forth in the Line of Credit Note. The Line of Credit Note shall be executed by Borrowers and delivered to NBD prior to or simultaneously with the execution of the Sixth Amendment. In addition to any other payments of principal or interest due NBD under the Line of Credit Note and this Section 7AAgreement, at any time the Line of Credit Note bears interest at the prime rate, then Borrowers shall pay to NBD an inventory reliance fee of one quarter percent (1/4%) per annum, charged monthly in arrears, based on the monthly average outstanding balance under the Line of Credit supported by Qualified Inventory. For purposes of computing such inventory reliance fee, the principal outstanding under the Line of Credit Note shall first be attributed to Qualified Receivables.

Appears in 1 contract

Sources: Credit Agreement (Secom General Corp)

Line of Credit. The Purchaser hereby On the Closing Date, subject to fulfillment of all conditions precedent set forth herein, Lender agrees to provide open the Line of Credit in favor of Borrower so that, during the period from the Closing Date to, but not including, the Termination Date, so long as there is not in existence any Default Condition or Event of Default and the requested Borrowing, if made, will not cause a Default Condition or Event of Default to exist, Borrower may borrow and repay and reborrow Advances under the Line of Credit; SUBJECT, HOWEVER, to the Company up to an additional $500,000 requirement that at no time shall the aggregate principal amount of loans upon outstanding Advances under the following terms and conditions: (a) Upon 7 days prior written notice from Line of Credit exceed the Company to the Purchaser specifying the amount requested by the Company (which amount must be for at least $100,000 of or any multiple thereof) the Purchaser shall loan to the Company the amount set forth in such request (the "Draw Down Amount"). (b) Upon receipt of the Draw Down Amount and in consideration thereof, the Company shall deliver to the Purchaser the following: (i) A note (a "Draw Down Note") in the form annexed hereto as Exhibit E, which note shall LESSER of: (A) be dated the date of receipt by the Company of the Draw Down Maximum Amount (the "Note Date"), or (B) the Borrowing Base (such requirements being generally referred to herein as the "BORROWING BASE REQUIREMENT"); and SUBJECT, FURTHER, to the requirement that if, at any time hereafter, the Borrowing Base Requirement is not satisfied, Borrower will immediately repay the then principal balance of the Master Note by that amount necessary to satisfy the Borrowing Base Requirement. All proceeds so obtained under the Line of Credit may be used by Borrower for working capital in such manner as Borrower may elect in the ordinary course of its business operations. The Debts arising from Advances made to or on behalf of Borrower under the Line of Credit shall be evidenced by the Master Note, which shall be executed by Borrower and delivered to Lender on the Closing Date. The outstanding principal amount of the Draw Down Amount Master Note may fluctuate from time to time, but shall be due and (C) require interest be payable commencing in full on the first day Termination Date, and shall bear interest from the date of each disbursement of principal until paid in full at the Applicable Rate, payable in the manner described in Section 2.2.1. Borrower Agent may request Advances under the Line of Credit by giving to Lender a Notice of Borrowing not later than 1:00 p.m. (Atlanta, Georgia time) on the date of the month subsequent to requested Advance; PROVIDED, HOWEVER, that, in accordance with the Note Date. (ii) A warrant (the "Draw Down Warrant") in the form annexed hereto as Exhibit C except Telephone Instruction Letter, Borrower Agent may provide such instructions by telephone, PROVIDED that the warrant (A) any such telephone request shall be for the purchase of that number of shares of Common Stock as is equal to 20,000 for each $100,000 principal amount of the Draw Down Note, (B) shall be exercisable commencing on the Note Date to and including the 5th anniversary of the Note Date, (C) shall be at a per share purchase price equal to the closing price of a share of Common Stock on the trading day immediately preceding the Note Date and (D) the date confirmed in section 6 thereof shall be the 155th date after the Note Date. (iii) A registration rights agreement in the form annexed hereto as Exhibit D except that such registration rights agreement shall (A) be dated the Note Date, (B) shall refer to the Draw Down Note and the Draw Down Warrant and, (C) in Section 2 thereof shall provide that the registration statement should be filed no writing not later than the 90th day after Business Day following the Note Date and that disbursement of the interest rate requested Advance. The Line of Credit shall terminate on the Draw Down Note shall Termination Date, but may be increased terminated earlier by Borrower, upon its giving at least sixty (60) days advance written notice to Lender, SUBJECT, HOWEVER, to Borrower's payment of any early termination fee then due (if the registration statement has not been declared effective so specified on the 155th day after the Note DateTransaction Data Schedule). (c) In no event shall the Purchaser be required to loan more than $500,000 to the Company pursuant to the provisions of this Section 7A

Appears in 1 contract

Sources: Loan and Security Agreement (Tag It Pacific Inc)