Common use of Subsequent Draws Clause in Contracts

Subsequent Draws. If the Initial Draw is less than $2,000,000, L▇▇▇▇ ▇▇▇, in its sole discretion, notify Victory in writing that it desires to draw (each a “Draw”) some or all of the remaining balance in amounts and at times that are consistent with the Budget (as defined below). To be valid, any such notification (a “Draw Notification”) must (i) be received by Victory before the sooner of (a) the date that the Parties terminate the Letter of Intent or, if the Definitive Agreement is entered into, the date that the Parties terminate the Definitive Agreement such that the Merger will not occur, or (b) the first anniversary of the date hereof and (ii) specify the amount being borrowed (which shall not exceed $2,000,000 minus the Initial Draw and all prior Draws). Within twenty (20) days after Victory’s receipt of a Draw Notification (or such other date as Victory and L▇▇▇▇ ▇▇▇ mutually agree in writing), Victory and L▇▇▇▇ shall be obligated to complete the specified Draw, so long as there is no existing or reasonably anticipated default by L▇▇▇▇ under this Agreement or any Closing Document (as defined below); provided, however, that notwithstanding the foregoing, L▇▇▇▇ ▇▇▇ withdraw a Draw Notification by written notice to Victory that is received at least three (3) days prior to the date that has been mutually agreed to by the Parties to complete the specified Draw. For each Draw, L▇▇▇▇ shall execute an amendment to the Note to add thereto the principal amount of such Draw and Victory shall disburse the amount of the Draw by wire transfer of immediately available funds in United States Dollars to the account specified by L▇▇▇▇ in writing.

Subsequent Draws. If the Initial Draw is less than $2,000,000, L▇▇▇▇▇ ▇▇▇, in its sole discretion, notify Victory in writing that it desires to draw (each a “Draw”) some or all of the remaining balance in amounts and at times that are consistent with the Budget (as defined below). To be valid, any such notification (a “Draw Notification”) must (i) be received by Victory before the sooner of (a) the date that the Parties terminate the Letter of Intent or, if the Definitive Agreement is entered into, the date that the Parties terminate the Definitive Agreement such that the Merger will not occur, or (b) the first anniversary of the date hereof and (ii) specify the amount being borrowed (which shall not exceed $2,000,000 minus the Initial Draw and all prior Draws). Within twenty (20) days after Victory’s receipt of a Draw Notification (or such other date as Victory and L▇▇▇▇▇ ▇▇▇ mutually agree in writing), Victory and L▇▇▇▇▇ shall be obligated to complete the specified Draw, so long as there is no existing or reasonably anticipated default by L▇▇▇▇▇ under this Agreement or any Closing Document (as defined below); provided, however, that notwithstanding the foregoing, L▇▇▇▇▇ ▇▇▇ withdraw a Draw Notification by written notice to Victory that is received at least three (3) days prior to the date that has been mutually agreed to by the Parties to complete the specified Draw. For each Draw, L▇▇▇▇▇ shall execute an amendment to the Note to add thereto the principal amount of such Draw and Victory shall disburse the amount of the Draw by wire transfer of immediately available funds in United States Dollars to the account specified by L▇▇▇▇▇ in writing.