Common use of The Loan Commitments Clause in Contracts

The Loan Commitments. Subject to the terms and conditions hereof, each Bank, by its acceptance hereof, severally agrees to extend a revolving credit (the "Revolving Credit") in the form of a loan or loans (individually a "Committed Loan" and collectively "Committed Loans") to the Borrowers from time to time on a revolving basis in U.S. Dollars and Alternative Currencies in an aggregate outstanding Original Dollar Amount up to the amount of its commitment set forth on the applicable signature page hereof (its "Commitment" and cumulatively for all the Banks the "Commitments"), which Commitments on the date hereof total $250,000,000 (subject to any reductions thereof pursuant to the terms hereof) prior to the Termination Date. The sum of the aggregate Original Dollar Amount of outstanding Loans (whether Committed Loans or Bid Loans) and L/C Obligations shall not exceed the Commitments then in effect. Each Borrowing of Committed Loans shall be made ratably from the Banks in proportion to their respective Percentages. As provided in Section 2.3(a) hereof, the Borrower may elect that each Borrowing of Committed Loans denominated in U.S. Dollars be made available by means of (i) Eurocurrency Loans or (ii) Domestic Rate Loans, or any combination thereof. All Committed Loans denominated in an Alternative Currency shall be Eurocurrency Loans. Each Borrowing of Committed Loans may be repaid and the principal amount thereof reborrowed prior to the Termination Date, subject to all reductions in the Commitments and all other terms and conditions hereof. Simultaneously with the effectiveness of this Agreement, the Company agrees that it will prepay all "Committed Loans" under the Existing Credit Agreement which were outstanding immediately thereunder prior to the effectiveness of this Agreement and that such prepayment shall be subject to Section 4.8

The Loan Commitments. (a) Subject to the terms and conditions hereofof and relying on the representations, warranties and covenants contained in this Agreement, each Bank, by its acceptance hereof, severally Bank agrees to extend a revolving credit fund severally but not jointly to the Borrower an aggregate maximum principal amount of up to $25,000,000; provided, no more than $15,000,000.00 shall be initially committed and funded hereunder unless and until Borrower exercises the Expansion Option, will exercise shall be subject to satisfaction of each of the following conditions: (i) The Borrower shall provide notice to Agent specifying the amount by which it wishes to increase the Total Commitments (the "Revolving CreditIncrease Amount"); (ii) The Expansion Option shall be exercised on or prior to the delivery of the Extension Option (as defined in Paragraph (e) below) and shall be accompanied by an additional commitment fee of 0.20% of the Increase Amount; (iii) No Event of Default or Unmatured Default is in existence hereunder; and (iv) The Borrower shall provide evidence reasonably satisfactory to Agent that, after including the Increase Amount in Funded Debt, Borrower will be in compliance with Paragraph 6.15(b) of this Agreement. Subject to the foregoing provisions for increases in the form Commitments, each advance of a loan Loans made hereunder shall be made by each Bank ratably in accordance with its respective Commitment Percentage of such advance. The Borrower may obtain Loans, repay without penalty or loans (individually a "Committed Loan" premium except as set forth in Paragraph 2.10 below and collectively "Committed Loans") to reborrow hereunder, from the Borrowers from time to time on a revolving basis in U.S. Dollars and Alternative Currencies in an aggregate outstanding Original Dollar Amount date of this Agreement up to the amount of its commitment set forth on the applicable signature page hereof (its "Commitment" and cumulatively for all the Banks the "Commitments"), which Commitments on the date hereof total $250,000,000 (subject to any reductions thereof pursuant to the terms hereof) prior to the Termination Date. The sum of the aggregate Original Dollar Amount of outstanding Loans (whether Committed Loans or Bid Loans) and L/C Obligations shall not exceed the Commitments then in effect. Each Borrowing of Committed Loans shall be made ratably from the Banks in proportion earlier to their respective Percentages. As provided in Section 2.3(a) hereof, the Borrower may elect that each Borrowing of Committed Loans denominated in U.S. Dollars be made available by means occur of (i) Eurocurrency Loans the Loan Termination Date, or (ii) Domestic Rate Loansthe delivery of the Extension Exercise (as defined in Paragraph (e) below), the then available Total Commitments or any combination thereof. All Committed Loans denominated lesser sum which is in the minimum amount of $100,000.00 and in an Alternative Currency integral multiple of $100,000.00 if in excess thereof. (b) The Credit Facility shall be Eurocurrency Loans. Each Borrowing evidenced initially by the $15,000,000.00 Note of Committed Borrower payable to the order of Bank of America. (c) Loans may be repaid used by the Borrower for general corporate purposes, including working capital, the issuance of Letters of Credit and the funding of Permitted Acquisitions; provided, that the Banks shall have no obligation to fund if the conditions precedent in Paragraph 3.2 below have not been satisfied, including, without limitation, the requirement that the Borrowing Base exceed the total amount outstanding under the Credit Facility (including the face amount of any outstanding Letters of Credit) following any such advance. (d) The failure of any Bank to make any advances hereunder pursuant to its Loan Commitment shall not relieve any other Bank of its obligation, if any, hereunder to make its advances pursuant to its Loan Commitment. However, no Bank shall be responsible for any other Bank's failure or refusal to make any advances pursuant to such other Bank's Loan Commitment. (e) Borrower shall immediately make principal amount thereof reborrowed payments as follows: (i) If at any time prior to March 31, 2001 (regardless of whether Borrower has exercised the Expansion Option), the aggregate outstanding principal balance of the Credit Facility (including the face amount of any outstanding Letters of Credit) exceeds the Borrowing Base, a principal payment in the amount of such excess shall be immediately due and payable. (ii) If at any time after March 31, 2001 and after Borrower's exercise of the Expansion Option, Borrower is out of compliance with the covenant set forth in Paragraph 6.15(b), a principal payment in the amount necessary to bring Borrower into compliance with such covenant shall be immediately due and payable. (f) All outstanding principal and interest on the Credit Facility shall be due and payable in full in a balloon installment on the Loan Termination Date, subject to all reductions in unless and until Borrower exercises the Commitments and all other terms and conditions hereof. Simultaneously with the effectiveness of this AgreementExtension Option, the Company agrees that it will prepay all "Committed Loans" under the Existing Credit Agreement which were outstanding immediately thereunder prior to the effectiveness of this Agreement and that such prepayment exercise shall be subject to Section 4.8satisfaction of each of the following conditions: (i) The Borrower shall provide notice to Agent specifying its exercise of the Extension Option; (ii) Such exercise is on or prior to the Loan Termination Date, and is accompanied by an additional commitment fee equal to 0.40% of the then outstanding balance of the Credit Facility; and (iii) No Event of Default or Unmatured Default is in existence hereunder. If the Borrower satisfies each of the conditions set forth in clauses (i), (ii) and (iii) above, the Loan Termination Date shall be extended to the sixth Quarterly Date after the delivery of the Extension Option. In such event, the then outstanding balance of the Credit Facility shall be termed out over six (6) quarters, and no further advances shall be permitted under the Credit Facility. In addition to interest due on each Interest Payment Date, quarterly principal payments, each in the amount of 5% of the Total Commitments upon the effective time of the exercise of the Extension Option, shall be due and payable on each Quarterly Date, beginning on the second Quarterly Date after exercise of the Extension Option.