ASC Loan definition
Examples of ASC Loan in a sentence
At Closing, the Company agrees to use the ASC Loan to pay off and discharge Company’s existing line of credit with Enterprise Bank.
If Company receives the Company Earn-Out Payment then Company shall repay the MAG Loan with the proceeds of such earn-out payment; provided, however, that the ASC Loan shall have been repaid in full first and the Company can legally pay the MAG Loan without obtaining additional financing.
If the MAG Loan cannot be repaid by such means then the Company shall repay the MAG Loan, after repayment in full of the ASC Loan, with any excess cash flow of the Company that becomes available or as otherwise provided in the Amended and Restated Shareholders’ Agreement or the MAG Loan.
Company, MAG and SGS acknowledge that the Projections will be deemed to be modified post-closing as appropriate to reflect the fact that the $2,000,000 of subordinated debt has been paid off at Closing and that the ASC Loan has replaced the Enterprise Bank Credit Line.
MAG shall have caused DCS Real Estate, L.L.C., a Missouri limited liability company and a wholly-owned entity by MAG (“DCS Real Estate”) to execute and deliver an amendment to DCS Real Estate’s pre-existing $500,000 loan to the Company (the “MAG Loan”), providing that the MAG Loan will be subordinate to the ASC Loan and will bear interest at the same rate as the ASC Loan, and will contain such terms and conditions as are customary in transactions of this type and are reasonably acceptable to the parties.
Notwithstanding the foregoing, the Minority Shareholders’ acquisition of all of SGS’s Shares shall be conditioned upon the repayment of the ASC Loan in full at or before the closing of such acquisition.
See ASC Loan Agreement executed June 30, 2004 as part of the Closing.
Notwithstanding the foregoing, the Lodge Option shall be subordinate to the liens and security interests of the ASC Lender under the ASC Loan Documents.