Pre Operational Period Sample Clauses

Pre Operational Period. FirstCity BLC covenants and agrees that from and after the Effective Date until the Closing Date it will make available to Purchaser advances in the form of working capital loans (“Working Capital Loans”) under a line of credit in an aggregate outstanding amount of not less than $325,000 on terms and conditions satisfactory to Seller. Notwithstanding the foregoing, (i) in the event that Purchaser receives written notice from the SBA of the rejection of its application for approval as an SBA lender or (ii) Purchaser’s application to become an SBA lender has not been approved or rejected by September 30, 2006, and in each case of subclauses (i) and (ii) such rejection or failure to obtain approval is not due directly or indirectly to FirstCity BLC’s or its officers’ failure to meet the conditions set forth in the Code of Federal Regulations, Title 13, Section 120-140 or FirstCity BLC’s failure to cooperate with the SBA or diligently pursue SBA approval, subject to Section 8.1 (Termination of Agreement), Sellers jointly covenant and agree to pay to FirstCity BLC an amount (the “Pre-Operational Period Termination Payment”) equal to fifty percent (50%) of the Purchaser’s actual operating expenses that are incurred in accordance with the Purchaser Pre-Operational Budget attached hereto as Exhibit 4.1 during the period from the Effective Date and ending on the earlier of the date that Purchaser receives written notice from the SBA of the rejection of its application as an SBA lender, or September 30, 2006. All amounts outstanding under the Working Capital Loans will be repaid on the Closing Date from the proceeds of the equity contributions under Section 4.14 of this Agreement.