Modification of Loan Terms Sample Clauses

Modification of Loan Terms. 3.01 The terms of the Loan and Credit Agreement are modified as follows: (a) The Facility Number 1 Termination Date and the Facility Number 2 Termination Date shall be July 31, 2002, and such defined terms are hereby amended to reflect such date. (b) The defined term "Revolving Credit Commitment" is amended to change $17,500,000 to read $15,000,000. (c) Section 3.1 of the Credit Agreement is amended to increase the maximum principal face amount of Documentary Letters of Credit to $9,000,000. (d) Section 4.2 of the Credit Agreement is no longer applicable. In lieu thereof, the Bank will allow over-advancements under the Revolving Credit Loan of up to the following limits: $3,000,000 until December 1, 2001, at which time it will be reduced to $2,000,000 until February 1, 2002, at which time it will be reduced to $1,000,000 until April 1, 2002, at which time it will be reduced to $0. Notwithstanding the forgoing, in no event shall the total amount outstanding under the Revolving Credit Loan exceed the Revolving Credit Commitment. (e) The percentage of Eligible Accounts used to determine, and as stated in the definition of, "Borrowing Base Amount" is reduced to 75%. (f) For purposes of determining the Borrowing Base Amount, the gross dollar value of Eligible Accounts shall be reduced by the Reserve Against Account Debtor Deposits. Such adjustment shall be made before applying the 75% limitation stated in (e) above. For purposes hereof, the "Reserve Against Account Debtor Deposits" shall mean Accounts with an aggregate dollar value of $1,000,000, which amount may be adjustment by the Bank from time to time in its sole and absolute discretion.