ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before financing any receivable. When Bank accepts a receivable, it will pay Borrower the Advance Rate times the face amount of the receivable (the "Advance"). Bank may, in its discretion, change the percentage of the Advance Rate. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists would occur as a result of the Advance. The aggregate amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before agreeing to finance any accounts receivable. When Bank agrees to finance a receivable, it will extend credit to Borrower in an amount up to the result of the Advance Rate multiplied by the face amount of the receivable (the "Advance"). Bank may, in its discretion, change the percentage of the Advance Rate. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists would occur as a result of the Advance. The aggregate amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before agreeing to finance any accounts receivable. When Bank agrees to finance a receivable, it will extend credit to Borrower in an amount up to the result of the Advance Rate multiplied by the face amount of the receivable (the "Advance"). Bank may, in its reasonable discretion, change the percentage of the Advance Rate for a particular receivable on a case by case basis. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists or would occur as a result of the Advance. The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount. Although Bank's obligation to make an Advance is discretionary in each instance, Bank acknowledges that (subject to verifications and other terms and conditions provided herein with respect to Account Debtors generally), it is the usual practice of Bank to finance accounts receivable due and owing from those Account Debtors that are Fortune 1000 type companies.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable or the Placeholder Invoice. Bank may approve any Account Debtor's credit before agreeing to finance any accounts receivable. When Bank agrees to finance a receivable or the Placeholder Invoice, it will extend credit to Borrower in an amount up to either (a) the result of the applicable Advance Rate multiplied by the face amount of the receivable or (b) the result of the applicable Advance Rate multiplied by value of the Placeholder Invoice (the "Advance"). Bank may, in its reasonable discretion, change the percentage of the Advance Rate for a particular receivable on a case by case basis or with respect to the Placeholder Invoice. When Bank makes an Advance, the receivable or the Placeholder Invoice becomes a "Financed Receivable." All representations and warranties in Section 6 must be true in all material respects as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists or would occur as a result of the Advance. The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount. In addition, at any time that an Advance is outstanding based upon the Placeholder Invoice, no other Advances will be made by Bank hereunder. Any Advances outstanding on the date which Bank agrees to finance the Placeholder Invoice shall be repaid prior to Bank making any Advance based on the Placeholder Invoice (or otherwise repaid with the proceeds of such Advance). Although Bank's obligation to make an Advance is discretionary in each instance, Bank acknowledges that (subject to verifications and other terms and conditions provided herein with respect to Account Debtors generally), it is the usual practice of Bank to finance accounts receivable due and owing from those Account Debtors that are Fortune 1000 type companies. Notwithstanding the foregoing, Bank will not finance the Placeholder Invoice (and all Advances made based on the Placeholder Invoice shall be immediately repaid at such time) in the event that Borrower fails to comply with the financial covenant set forth in Section 6.3(L) hereof. If Bank will not finance the Placeholder Invoice, then Borrower may offer to Bank accounts receivable for financing as provided under Sections 2.1 and 2.2 hereof."
2. The Loan Agreement shall be amended by deleting Section 3.4 thereof and inserting in lieu thereof the following:
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Except as otherwise provided herein, Bank is obligated to finance any Accounts Receivable which is not an Ineligible Receivable. Bank may (but is not obligated to) finance any other Accounts Receivable and as to such other Accounts Receivable, Bank may, in its discretion, change the percentage of the Advance Rate. Bank may approve any Account Debtor's credit before agreeing to finance any Accounts Receivable and shall complete such credit approvals within a reasonable period after the date of the Invoice Transmittal. When Bank finances an Accounts Receivable, it will extend credit to Borrower in an amount up to the result of the Advance Rate multiplied by the face amount of the receivable (the "Advance"). When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists would occur as a result of the Advance. The aggregate amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before financing any receivable. When Bank accepts a receivable, it will pay Borrower the Advance Rate times the face amount of the receivable (the "Advance"). Bank may, in its discretion, change the percentage of the Advance Rate. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists would occur as a result of the Advance. The aggregate amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount minus the outstanding Obligations under the Other Services Sublimit. In addition, (i) at no time shall the outstanding Obligations under this Agreement and that certain Loan and Security Agreement, dated December 27, 2002, by and between Borrower and Bank exceed $20,000,000 in the aggregate, (ii) any Advances above $10,000,000 must be held in deposit accounts with Bank.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable, except as provided herein. Bank agrees to finance account receivables from qualified credit Account Debtors as determined by Bank in its reasonable discretion unless, in Bank's reasonable assessment, the credit risk on those Account Debtors has changed, or there exists an Event of Default. Without limiting the Bank's discretion described in the foregoing sentence, the Bank may finance (i) certain billed receivables and (ii) certain unbilled receivables for minutes purchased in the current billing cycle but to be invoiced within fifteen (15) days. Bank may approve any Account Debtor's credit ("Eligible Account" or collectively, "Eligible Accounts") in writing before agreeing to finance any accounts receivable and will extend Advances against Eligible Accounts. Bank reserves the right, in its reasonable discretion, to remove any specific Account Debtor from the Eligible Accounts. When Bank agrees to finance a receivable, it will extend credit to Borrower in an amount up to the result of the Advance Rate multiplied by the face amount of the receivable (the "Advance"). Bank may, in its discretion, change the percentage of the Advance Rate with notice to Borrower. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists or would occur as a result of the Advance. The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount, as affected by the Cap.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before financing any receivable. When Bank accepts a receivable, it will pay Borrower (i) for the receivables accepted by Bank during the Initial Advance Period the Initial Advance Percentage, and (ii) for each subsequent receivable accepted by Bank, the On-going Advance Percentage, times the face amount of the receivable (the "ADVANCE"). Bank may, in its discretion, change the percentage of both the Initial Advance Percentage or the On-going Advance Percentage. When Bank makes an Advance, the receivable becomes a "FINANCED RECEIVABLE." All representations and warranties in SECTION 6 must be true as of the date of the Invoice Transmittal and of the Advance and as of the same date, the Borrower warrants that no Event of Default exists or would occur as a result of the Advance. The aggregate amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount.
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable or the Placeholder Invoice. Bank may approve any Account Debtor's credit before agreeing to finance any accounts receivable. When Bank agrees to finance a receivable or the Placeholder Invoice, it will extend credit to Borrower in an amount up to either (a) the result of the applicable Advance Rate multiplied by the face amount of the receivable or (b) the result of the applicable Advance Rate multiplied by value of the Placeholder Invoice (the "Advance"). Bank may, in its reasonable discretion, change the percentage of the Advance Rate for a particular receivable on a case by case basis or with respect to the Placeholder Invoice. When Bank makes an Advance, the receivable or the Placeholder Invoice becomes a "Financed Receivable." All representations and warranties in Section 6 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists or would occur as a result of the Advance. The aggregate face amount of all Financed Receivables outstanding at
ACCEPTANCE OF ACCOUNTS RECEIVABLE. Bank is not obligated to finance any accounts receivable. Bank may approve any Account Debtor's credit before agreeing to finance any accounts receivable. When Bank agrees to finance a receivable, it will extend credit to Borrower in an amount up to the result of the Advance Rate multiplied by the face amount of the receivable (the "Advance"). Bank may, in reasonable discretion, change the percentage of the Advance Rate for a particular receivable on a case by case basis. When Bank makes an Advance, the receivable becomes a "Financed Receivable." All representations and warranties in Section 0 must be true as of the date of the Invoice Transmittal and of the Advance and no Event of Default exists would occur as a result of the Advance. The aggregate face amount of all Financed Receivables outstanding at any time may not exceed the Facility Amount.
