From and after the Closing Date, the proceeds of the Revolving Equipment Loans will be used only to purchase Eligible Equipment, and the proceeds of the Term Equipment Loan will be used only to Term-Out the Revolving Equipment Loans in accordance with Section 2.01(c).
The Lender agrees, on the terms and conditions of this Agreement, to Term-Out its Revolving Equipment Loans outstanding on the Conversion Date, and to make a term loan (such Termed-Out Revolving Equipment Loans and such term Loan made pursuant to this paragraph, the "Term Equipment Loan") to the Borrower on the Conversion Date in an amount equal to the aggregate principal amount of the Lender's Revolving Equipment Loans outstanding on the Conversion Date.
Funding will be limited to the lesser of the face amount of the Term Equipment Loan or 80% of the depreciated book value at cost of all machinery and equipment (the percentage result referred to as the "Term Loan Borrowing Base"and the personalty referred to as the "equipment") as shown on the consolidated financial statements of the Borrower dated December 31, 1999.
This Note (the "Term Equipment Loan") will amortize fully on the basis of a five (5) year mortgage amortization and mature on February 28, 2005.
The monies advanced on the Term Equipment Loan will be used by Borrower to provide (i) working capital support for Borrower, (ii) acquisition financing of other pharmacies and/or pharmaceutical/medical supply concerns, and (iii) refinancing of existing debt owed by any one or more of the three corporations comprising Borrower.