Common use of Term Advance Clause in Contracts

Term Advance. (a) The Lender agrees, subject to the terms and conditions of this Agreement, to make advances to the Borrowers from time to time from the Funding Date and prior to the date which is twelve (12) months from the Funding Date (each a “Term Advance”). The Lender shall have no obligation to make a Term Advance if, after giving effect to such requested Term Advance, the outstanding principal balance of the Term Advances would exceed $6,000,000 reduced by the aggregate amount of the scheduled principal payments described in Section 2.6. The Borrowers’ joint and several obligation to pay the Term Advances shall be evidenced by the Term Note and shall be secured by the Collateral as provided in Article III. (b) The Borrowers shall comply with the following procedures in requesting Term Advances: (i) The Borrowers shall make each request for a Term Advance provided that it is received by the Lender no later than the Cut-off Time on the Business Day on which the Borrowers wish to receive the Term Advance, and provided that the request specifies the amount and the date of the requested Term Advance. (ii) Each Term Advance shall be in multiples of $1,000,000, with a minimum initial Term Advance amount of at least $2,000,000. (iii) Each request shall be by a Person authorized pursuant to Section 2.2(a). (c) Upon fulfillment of the applicable conditions set forth in Article IV, the Lender shall deposit the proceeds of the requested Term Advance by crediting the same to the Borrowers’ demand deposit account specified in Section 2.2(d). Upon the Lender’s request, the Borrowers shall promptly confirm each request for a Term Advance or any alternative method of disbursing a Term Advance by executing and delivering an appropriate confirmation certificate to the Lender. The Borrowers shall be obligated to repay all Term Advances notwithstanding the Lender’s failure to receive such confirmation and notwithstanding the fact that the Person requesting the same was not in fact authorized to do so. Any request for a Term Advance, whether written or telephonic, shall be deemed to be a representation by the Borrowers, upon which the Lender may rely, that the Borrowers are in compliance with the conditions set forth in Section 4.2 as of the time of the request.

Term Advance. The Loan Agreement is hereby amended to provide for a Term Advance Loan (the "Term Advance Loan") under the Credit Facility subject to the following terms and conditions: (a) The amounts advanced by the Lender agreesto Borrower under the Term Advance Loan (each advance, a "Term Advance" and collectively the "Term Advances") shall be evidenced by a promissory note in favor of the Lender in form of Exhibit "A" hereto (the "Term Advance Note"). The aggregate amount of the Term Advances made under the Term Advance Loan shall not exceed Five Hundred Thousand Dollars ($500,000). Borrower hereby agrees to repay the Lender the Term Advances, together with interest thereon, in the manner provided herein and in the Term Advance Note. The principal owing hereunder in respect of the Term Advances at any given time shall equal the aggregate amount of the Term Advances made hereunder minus all principal payments thereon received by the Lender in respect of the Term Advance. The outstanding principal balance of the Term Advances shall bear interest at the rate of 1.25% per month. The Term Advance Note shall be due and payable in full on the Termination Date. (b) Except as set forth below or otherwise provided in this Amendment, each Term Advance shall be treated in the same manner as an Advance: (i) Each Term Advance shall not be subject to the terms Borrowing Base. (ii) The Borrower may request a Term Advance pursuant to Section 2.2(a) of the Loan Agreement beginning on the date upon which the Lender receives a signed copy of a final, non-appealable order of the Bankruptcy Court approving this Amendment (with such modifications as are approved by the Lender in its sole discretion) (the "Term Advance Final Order"). The Term Advance Final Order (i) shall have been entered upon an application or motion of the Obligors satisfactory in form and conditions of this Agreement, to make advances substance to the Borrowers from time to time from Lender in its sole discretion, (ii) shall have authorized extensions of credit by the Funding Date Lender in the amount of a total of $1,500,000, (iii) shall approve the payment by the Obligors of all of the fees and prior to expenses set forth herein, and (iv) shall be in full force and effect and shall not have been vacated, reversed, modified, amended or stayed or the date which is twelve subject of a stay pending appeal. (12iii) months from the Funding Date (each a “A Term Advance”). , once repaid, may not be reborrowed. (iv) The Lender shall have no obligation to make a Term Advance if, after giving effect to such requested Term Advance, the outstanding principal balance of the any further Term Advances would exceed $6,000,000 reduced by to the aggregate amount Borrower if an Even of the scheduled principal payments described Default (other than an Event of Default waived in Section 2.6. The Borrowers’ joint and several obligation to pay the Term Advances shall be evidenced by the Term Note and shall be secured by the Collateral this Amendment) has occurred and, as provided in Article III. (b) The Borrowers shall comply with the following procedures in requesting Term Advances: (i) The Borrowers shall make each request for a Term Advance provided that it is received by the Lender no later than the Cut-off Time on the Business Day on which the Borrowers wish to receive the Term Advance, and provided that the request specifies the amount and the date result of the requested Term Advance. (ii) Each Term Advance shall be in multiples such Event of $1,000,000, with a minimum initial Term Advance amount of at least $2,000,000. (iii) Each request shall be by a Person authorized pursuant to Section 2.2(a). (c) Upon fulfillment of the applicable conditions set forth in Article IVDefault, the Lender shall deposit has ceased making Advances to Borrower under the proceeds of the requested Term Advance by crediting the same to the Borrowers’ demand deposit account specified in Section 2.2(d). Upon the Lender’s request, the Borrowers shall promptly confirm each request for a Term Advance or any alternative method of disbursing a Term Advance by executing and delivering an appropriate confirmation certificate to the Lender. The Borrowers shall be obligated to repay all Term Advances notwithstanding the Lender’s failure to receive such confirmation and notwithstanding the fact that the Person requesting the same was not in fact authorized to do so. Any request for a Term Advance, whether written or telephonic, shall be deemed to be a representation by the Borrowers, upon which the Lender may rely, that the Borrowers are in compliance with the conditions set forth in Section 4.2 as of the time of the requestLoan Agreement.