Common use of Purpose and Amount Clause in Contracts

Purpose and Amount. The Bank shall loan to the Borrower on the date hereof subject to the terms herein the sum of ONE MILLION FIVE HUNDRED AND 00/100 DOLLARS ($1,500,000.00) TERM LOAN to Borrower (collectively the “Loan”) for the purpose of refinancing existing corporate debt of the Borrower, and to reimburse Borrower for equipment purchases. The parties agree and acknowledge that (a) $635,213 of the Loan proceeds will be applied on the date hereof to partially prepay the existing mortgage note given by the Borrower to the Bank, and (b) the cash of the Borrower being held by the Bank in a restricted account will be released to the Borrower on the date hereof. Subject to all the terms and provisions hereof, the Bank hereby agrees to lend to Borrower, and Borrower hereby agrees to borrow from the Bank, the full amount of the Loan, to be advanced as provided herein and repaid together with accrued interest thereon and with all costs and charges due and owing under this Agreement, all as hereinafter and in the Note more particularly set forth. The Loan shall be evidenced by the Note, and repayment of the Note and all other sums due the Bank under the terms hereof shall be secured by the Loan Documents set forth below.

Purpose and Amount. The Bank shall loan to the Borrower on the date hereof subject to the terms herein up to the sum of ONE MILLION FIVE HUNDRED AND 00/100 DOLLARS ($1,500,000.001,000,000.00) OPERATING LINE OF CREDIT, and THREE MILLION FIVE HUNDRED THOUSAND AND 00/100 DOLLARS ($3,500,000.00) TERM LOAN to Borrower (collectively the “Loan”) for the purpose of refinancing existing corporate debt of the Borrower, and to reimburse Borrower provide a working capital line of credit for equipment purchases. The parties agree and acknowledge that (a) $635,213 the ongoing development of the Loan proceeds will be applied on the date hereof to partially prepay the existing mortgage note given by the Borrower to the Bank, and (b) the cash of the Borrower being held by the Bank in a restricted account will be released to the Borrower on the date hereofBorrower’s business. Subject to all the terms and provisions hereof, the Bank hereby agrees to lend to Borrower, and Borrower hereby agrees to borrow from the BankBank (as needed by Borrower in the case of the line of credit), the full amount of the Loan, to be advanced as provided herein and repaid together with accrued interest thereon and with all costs and charges due and owing under this Agreement, all as hereinafter and in the Note Notes more particularly set forth. The Loan shall be evidenced by the NoteNotes, and repayment of the Note Notes and all other sums due the Bank under the terms hereof shall be secured by the Loan Documents set forth below.