Common use of Modification to Loan Agreement Clause in Contracts

Modification to Loan Agreement. A. Section 1.2 of the Loan Agreement is hereby amended by inserting the following text as a new Section 1.2 D, immediately below the text of Section 1.2C: "1.2D TERM LOAN F. SUBJECT TO AND UPON THE TERMS AND CONDITIONS OF THIS AGREEMENT, SILICON SHALL MAKE A TERM LOAN TO BORROWER IN THE AMOUNT OF FIFTEEN MILLION DOLLARS ($15,000,000.00) ("TERM LOAN F"). THE PROCEEDS OF TERM LOAN F SHALL BE USED TO SATISFY BORROWER'S THEN OUTSTANDING OBLIGATIONS TO SILICON UNDER TERM LOAN D AND TERM LOAN E, WITH THE REMAINING PROCEEDS USED TO PROVIDE FOR THE FINANCING OF BORROWER'S WORKING CAPITAL NEEDS. COMMENCING ON JULY 1, 2006 AND CONTINUING ON FIRST DAY OF EACH MONTH THEREAFTER, BORROWER SHALL PAY TO SILICON (A) MONTHLY INSTALLMENTS OF PRINCIPAL EACH IN THE AMOUNT OF $416,666.66, PLUS (B) ACCRUED INTEREST ON THE OUTSTANDING AMOUNT OF TERM LOAN F AT THE RATE APPLICABLE TO TERM LOAN F AS SET FORTH ON THE SCHEDULE. THE ENTIRE OUTSTANDING PRINCIPAL BALANCE, PLUS ALL ACCRUED AND UNPAID INTEREST AND OTHER CHARGES UNDER TERM LOAN F SHALL BE DUE AND PAYABLE UPON THE MATURITY DATE APPLICABLE TO TERM LOAN F AS SET FORTH ON THE SCHEDULE."

Modification to Loan Agreement. A. Section 1.2 8 of the Loan Agreement is hereby amended by inserting deleting the following definition of "Term Loan Reserve" in its entirety: ""TERM LOAN RESERVE" MEANS A RESERVE EQUAL TO THIRTY-THREE (33%) PERCENT OF THE OUTSTANDING PRINCIPAL BALANCE OF TERM LOAN F; PROVIDED, HOWEVER, THAT IN THE EVENT THAT LIQUIDITY IS (I) LESS THAN $20,000,000, THEN THE TERM LOAN RESERVE SHALL BE EQUAL TO FORTY PERCENT (40%) OF THE OUTSTANDING PRINCIPAL BALANCE OF TERM LOAN F, AND (II) LESS THAN $17,500,000, THEN THE TERM LOAN RESERVE SHALL BE EQUAL TO FIFTY PERCENT (50%) OF THE OUTSTANDING PRINCIPAL BALANCE OF TERM LOAN F." and substituting the following text as a new Section 1.2 D, immediately below the text of Section 1.2Ctherefor: "1.2D TERM LOAN F. SUBJECT TO AND UPON THE TERMS AND CONDITIONS OF THIS AGREEMENT, SILICON SHALL MAKE A TERM LOAN TO BORROWER IN THE AMOUNT OF FIFTEEN MILLION DOLLARS ($15,000,000.00) ("TERM LOAN F"). RESERVE" MEANS (A) FROM AUGUST __, 2006 THROUGH SEPTEMBER 30, 2006, A RESERVE EQUAL TO FIFTY PERCENT (50%) OF THE PROCEEDS OUTSTANDING PRINCIPAL BALANCE OF TERM LOAN F SHALL BE USED TO SATISFY BORROWER'S THEN OUTSTANDING OBLIGATIONS TO SILICON UNDER TERM LOAN D F; AND TERM LOAN E, WITH THE REMAINING PROCEEDS USED TO PROVIDE FOR THE FINANCING OF BORROWER'S WORKING CAPITAL NEEDS. COMMENCING ON JULY (B) FROM OCTOBER 1, 2006 AND CONTINUING ON FIRST DAY OF EACH MONTH THEREAFTER, BORROWER SHALL PAY A RESERVE EQUAL TO SILICON THIRTY-THREE PERCENT (A33%) MONTHLY INSTALLMENTS OF PRINCIPAL EACH IN THE AMOUNT OF $416,666.66, PLUS (B) ACCRUED INTEREST ON THE OUTSTANDING AMOUNT PRINCIPAL BALANCE OF TERM LOAN F AT F; PROVIDED, HOWEVER, THAT, FROM AND AFTER OCTOBER 1, 2006, IN THE RATE APPLICABLE TO EVENT THAT LIQUIDITY IS (I) LESS THAN $20,000,000, THEN THE TERM LOAN F AS SET FORTH ON RESERVE SHALL BE EQUAL TO FORTY PERCENT (40%) OF THE SCHEDULE. THE ENTIRE OUTSTANDING PRINCIPAL BALANCE, PLUS ALL ACCRUED AND UNPAID INTEREST AND OTHER CHARGES UNDER BALANCE OF TERM LOAN F F, AND (II) LESS THAN $17,500,000, THEN THE TERM LOAN RESERVE SHALL BE DUE AND PAYABLE UPON EQUAL TO FIFTY PERCENT (50%) OF THE MATURITY DATE APPLICABLE TO OUTSTANDING PRINCIPAL BALANCE OF TERM LOAN F AS SET FORTH ON THE SCHEDULE.F."