Common use of Advances and Charges Clause in Contracts

Advances and Charges. 2.1. Upon request of Borrower from time to time during the term hereof, Lender shall loan and advance to Borrower on a revolving basis the amount requested, provided the amount requested does not itself or when combined with the then aggregate outstanding principal amount of all sums previously advanced hereunder, exceed either (a) the sum of (i) seventy-five percent (75%) of the amount of Eligible Accounts of Borrower (less discounts, credits, allowances, service charges, commissions, and freight charges which may be granted to or taken by the account debtors) and (ii) Loan Value of Eligible Inventory of Borrower; or (b) $4,500,000.00. Lender reserves the right at any time and from time to time, upon 10 days advance written notice to Borrower, to change the percentage to be advanced by Lender to Borrower on its Accounts based upon increases in the Dilution of Borrower’s Accounts as determined by Lender’s audits or review of monthly adjustments to Accounts. 2.2. The conditions precedent to each advance hereunder are that no Event of Default hereunder has occurred nor is the effect thereof continuing, and Borrower is in full, faithful and timely compliance with each and all of the covenants, conditions, warranties, and representations, contained in this Agreement and in every other agreement between Lender and Borrower. As a condition precedent to the first advance hereunder, Lender must also receive an official report from the Secretary of State of each Collateral State, the Chief Executive Office State, and the Borrower State (the “SOS Reports”), indicating that Lender’s security interest in the Collateral is prior to all other security interests and other interests reflected in the report excluding in all cases Permitted Liens. 2.3. Lender is hereby authorized to make advances based upon telephonic or other instructions received only from those officers, employees, or representatives of Borrower that are designated in writing by Borrower delivered to Lender. 2.4. Unless provided otherwise in a promissory note executed and delivered by Borrower to Lender in connection with this Agreement, all Obligations shall be due and payable no later than the earlier of: (a) the last day of the term (or renewal term, if any) of this Agreement, (b) the day an Event of Default occurs, and (c) the day the Agreement is terminated by either party. 2.5. All Obligations shall bear interest, computed on the basis of a 360-day year for the actual days outstanding, at a fluctuating rate of interest equal to the sum of the Prime Rate plus two and three-quarters of one percent (2.75%) per annum; provided, however, in no event shall the interest rate chargeable on such Obligations be less than six percent (6.00%) per annum, nor shall the minimum amount of interest payable monthly during the original and each renewal term of this Agreement be less than $10,000.00 per month for the first year of the Agreement and $5,000.00 per month for the second year of the Agreement. 2.6. In the event of a change in the Prime Rate from time to time, the rate of interest to be charged to Borrower shall be correspondingly adjusted as of the date of the Prime Rate change. Interest shall be paid on the first day of each month. Any interest not paid when due shall become a part of the Obligations, and shall thereafter bear interest as provided herein. If an Event of Default or termination of this Agreement because of such default occurs, Borrower shall pay upon Lender’s demand an amount equal to the minimum monthly interest payment amount multiplied by the number of months of the term (or renewal term, as applicable), of this Agreement that would otherwise remain but for the occurrence of such Event of Default or termination. 2.7. Lender shall render statements to Borrower of the Obligations, including all principal, interest and Lender’s Costs owing, and such statements shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and Lender unless, within thirty (30) days after receipt thereof by Borrower, Borrower notifies Lender in writing specifying the error or errors, if any, contained in any such statements. 2.8. In consideration for establishing the Credit Facility on the terms and conditions provided for herein, Borrower agrees to pay to Lender a commitment and funding fee, which shall be deemed earned and non-refundable upon payment thereof: (a) in the amount of one and one-half of one percent (1.50%) of the Credit Facility upon the execution hereof; and (b) in the amount of one-quarter of one percent (0.25%) of the Credit Facility upon each annual date of this Agreement until such time as the Credit Facility has been terminated. In the event that the term of this Agreement is renewed as provided in article 5 below, Borrower shall pay within ten days prior to the anniversary date to Lender a renewal fee of one percent (1.00%) of the Credit Facility each renewal period. In the event that the amount under the Credit Facility is increased, Borrower shall pay to Lender a one percent (1.00%) line increase fee on the additional commitment amount. Borrower does hereby agree to pay Lender a monthly collateral monitoring fee equal to 0.30% of Borrower’s monthly average outstanding loan balance, deemed in accordance with generally accepted accounting principles, which fee shall be payable monthly on the first day of the following month with respect to the average outstanding loan balance during the preceding month. All fees provided for in this Section shall be deemed earned and non-refundable upon payment thereof. 2.9. Upon an Event of Default, and for as long as such Event of Default or the consequences thereof continue, interest shall accrue on the Obligations from and after such Event of Default at a rate of interest which is four (4) percentage points greater than the rate then being charged. If, upon Borrower’s request, Lender gives a written acknowledgment that it will not exercise any of its remedies as the result of the occurrence of an Event of Default, Borrower shall pay to Lender the sum of $1,000.00. If Borrower fails for more than fifteen (15) days to furnish its monthly financial statements as required by Section 7.1(h), Borrower shall pay to Lender the sum of $50.00 for each day prior to Lender’s receipt of such financial statements. 2.10. No provision of this Agreement or any other aspect of the transaction of which this Agreement is a part is intended to or shall require or permit the holder, directly or indirectly, to take, receive, contract for or reserve, in money, goods or things in action, or in any other way, any interest (including amounts deemed by law to be interest, such amounts to then be deemed to be an addition to the rate of interest agreed upon) in excess of the maximum rate of interest permitted by law in the State of California as of the date hereof. If any such excess shall nevertheless be provided for, or be adjudicated by a court of competent jurisdiction to be provided for, the undersigned shall not be obligated to pay such excess but, if paid, then such excess shall be applied against the unpaid principal balance of this Agreement or, to the extent that the principal balance has been paid in full by reason of such application or otherwise, such excess shall be remitted to the undersigned. In the event any amount determined to be excessive interest is applied against the unpaid principal balance of this Agreement, and thereafter the rate of interest accruing under this Agreement is less than the rate permitted by law, this Agreement shall thereafter accrue interest at such highest lawful rate until such time as the amount accrued at the interest rate differential equals the amount of excessive interest previously applied against principal. Notwithstanding anything herein or in any of the other Loan Documents to the contrary, if any charge or fee for which Borrower or any Guarantor is or becomes obligated in connection with the Loan Documents constitutes interest and is not otherwise stated as a rate, such charge or fee shall be deemed an additional rate of interest to which Borrower and each Guarantor agree, computed by dividing the amount of such charge or fee by the principal amount of the Credit Facility. This provision shall control every agreement between Borrower and each Guarantor and Lender.

Advances and Charges. 2.1. Upon request of Borrower from time to time during the term hereof, Lender FCFC shall loan and advance to Borrower on a revolving basis the amount requested, provided the that said amount requested does not itself or when combined together with the then aggregate outstanding principal amount balance of all sums advances previously advanced hereunder, made does not exceed either (a) the sum of (i) seventy-five percent (75%) of the amount of Borrower's Eligible Accounts defined as commercial accounts and fifty percent (50%) of Borrower the amount of Borrower's Eligible Accounts defined as reseller accounts (less discounts, credits, allowances, service charges, commissions, and freight charges which may be granted to or taken by the account debtors) and (ii) Loan Value ). Eligible Accounts will be net of Eligible Inventory all credit balance accounts resulting from prepayment of Borrower; or (b) $4,500,000.00service fees. Lender FCFC reserves the right at any time and from time to time, upon 10 days advance written notice to Borrowertime after an Event of Default has occurred, to change the percentage to be advanced by Lender to Borrower on its Accounts based upon increases in the Dilution of Borrower’s Accounts as determined by Lender’s audits or review of monthly adjustments to Accounts. 2.2. The conditions precedent to each advance hereunder are that no Event of Default hereunder has occurred nor is the effect thereof continuing, and Borrower is in full, faithful and timely compliance with each and all of the covenants, conditions, warranties, and representations, contained in this Agreement and in every other agreement between Lender FCFC and Borrower. As a condition precedent to the first advance hereunder, Lender FCFC must also receive an official report SOS Reports from the Secretary of State of each Collateral State, the Chief Executive Office State, State and the Borrower State (the “SOS Reports”)State, indicating that Lender’s FCFC's security interest in the Collateral is prior to all other security interests and other interests reflected in the report excluding in all cases Permitted Liensreport. 2.3. Lender FCFC is hereby authorized to make advances based upon telephonic or other instructions received from only from those officers, employees, employees or representatives of Borrower that are designated in writing by Borrower delivered to LenderFCFC. 2.4. Unless provided otherwise in a promissory note executed and delivered by Borrower to Lender in connection with this Agreement, all All Obligations shall be due and payable no later than the earlier of: earliest of (a) the last day of the term (or renewal term, if any) of this Agreement, (b) the day an Event Date of Default occursDefault, and (c) the day the Agreement is terminated by either party. 2.5. All Obligations shall bear interest, computed on the basis of a 360-day year for the actual days outstanding, at a fluctuating rate of interest equal to the sum of the Prime Rate plus two five and threeone-quarters of one quarter percent (2.755.25%) per annum; provided, however, in no event shall the interest rate chargeable on such -------- Obligations be less than six ten percent (6.0010.00%) per annum, nor shall the minimum amount of interest payable monthly pursuant to the Credit Facility during the original and each renewal term of this Agreement be less than $10,000.00 per month for the first year of the Agreement and $5,000.00 per month for the second year of the Agreementmonth. 2.6. In the event of a change in the Prime Rate from time to time, the rate of interest to be charged to Borrower shall be correspondingly adjusted as of the date of the Prime Rate change. Interest shall be paid on the first tenth day of each month. Any interest not paid when due shall become a part of the Obligations, and shall thereafter bear interest as provided herein. If an Event a Date of Default occurs, or termination if this Agreement terminates before the second anniversary date of this Agreement because or before the end of such default occursany renewal term thereafter, Borrower shall pay to FCFC upon Lender’s its demand an amount a sum of money equal to the product of multiplying the minimum monthly interest payment amount multiplied by the number of months of the initial term (or renewal term, as applicable), of this Agreement that would otherwise remain but for the occurrence of such Event of Default or terminationremain. 2.7. Lender FCFC shall render statements to Borrower of the Obligations, including all principal, interest and Lender’s FCFC's Costs owing, and such statements shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and Lender FCFC unless, within thirty (30) days after receipt thereof by Borrower, Borrower notifies Lender FCFC in writing specifying the error or errors, if any, contained in any such statements. 2.8. In consideration for establishing the Credit Facility on the terms and conditions provided for herein, Borrower agrees to pay to Lender FCFC a commitment and funding fee, which shall be deemed earned and non-refundable upon payment thereof: , (ai) in the amount of one and one-half of one percent (1.50%) of the Credit Facility upon the execution hereof; and (bii) in the amount of one-quarter half of one percent (0.250.50%) of the Credit Facility upon each annual anniversary of the date of this Agreement until such time as the Credit Facility has been terminated. In the event that the term of this Agreement is renewed as provided in article Article 5 --------- below, Borrower shall pay within ten days prior to the anniversary date to Lender FCFC a renewal fee of one-half of one percent (1.000.50%) of the Credit Facility each renewal period. In the event that the amount under the Credit Facility is increased, Borrower shall pay to Lender FCFC a one percent (1.00%) line increase fee on the additional commitment amount. Borrower does hereby agree to pay Lender a monthly collateral monitoring fee equal to 0.30% of Borrower’s monthly average outstanding loan balance, deemed in accordance with generally accepted accounting principles, which fee shall be payable monthly on the first day of the following month with respect to the average outstanding loan balance during the preceding month. All fees provided for in this Section shall be deemed earned and non-refundable upon payment thereof. 2.9. Upon an Event of Default, and for as long as such Event of Default or the consequences thereof continue, interest shall accrue on the Obligations from and after such Event of Default at a rate of interest which is four (4) percentage points greater than the rate then being charged. If, upon Borrower’s request, Lender gives a written acknowledgment that it will not exercise any of its remedies as the result of the occurrence of an Event of Default, Borrower shall pay to Lender the sum of $1,000.00. If Borrower fails for more than fifteen (15) days to furnish its monthly financial statements as required by Section 7.1(h), Borrower shall pay to Lender the sum of $50.00 for each day prior to Lender’s receipt of such financial statements. 2.10. No provision of this Agreement or any other aspect of the transaction of which this Agreement is a part is intended to or shall require or permit the holder, directly or indirectly, to take, receive, contract for or reserve, in money, goods or things in action, or in any other way, any interest (including amounts deemed by law to be interest, such amounts to then be deemed to be an addition to the rate of interest agreed upon) in excess of the maximum rate of interest permitted by law in the State of California Arizona as of the date hereof. If any such excess shall nevertheless be provided for, or be adjudicated by a court of competent jurisdiction to be provided for, the undersigned shall not be obligated to pay such excess but, if paid, then such excess shall be applied against the unpaid principal balance of this Agreement or, to the extent that the principal balance has been paid in full by reason of such application or otherwise, such excess shall be remitted to the undersigned. In the event any amount determined to be excessive interest is applied against the unpaid principal balance of this Agreement, and thereafter the rate of interest accruing under this Agreement is less than the rate permitted by law, this Agreement shall thereafter accrue interest at such highest lawful rate until such time as the amount accrued at the interest rate differential equals the amount of excessive interest previously applied against principal. Notwithstanding anything herein or in any of the other Loan Documents to the contrary, if any charge or fee for which Borrower or any Guarantor is or becomes obligated in connection with the Loan Documents constitutes interest and is not otherwise stated as a rate, such charge or fee shall be deemed an additional rate of interest to which Borrower and each Guarantor agree, computed by dividing the amount of such charge or fee by the principal amount of the Credit Facility. This provision shall control every agreement between Borrower and each Guarantor and LenderFCFC. 2.11. Until such time that all Obligations are paid in full, Borrower shall pay to FCFC, on or before the last day of each calendar quarter, a field examination fee of $1,000, together with the amount of FCFC's travel expenses (which shall be read to include air fare, hotel, ground transportation and food) incurred in connection with all field audits conducted during that calendar year quarter.

Advances and Charges. 2.1. Upon request of Borrower from time to time during the term hereof, Lender shall loan and advance to Borrower on a revolving basis the amount requested, provided the that said amount requested does not itself or when combined together with the then aggregate outstanding principal amount balance of all sums advances previously advanced hereunder, made does not exceed either (a) the sum of (i) seventyeighty-five percent (7585%) of the amount of Borrower’s Eligible Accounts of Borrower (less discounts, credits, allowances, service charges, commissions, and freight charges which may be granted to or taken by the account debtors) ). Upon the occurrence of an Event of Default per Section 10 of this Agreement or if Lender reasonably believes, in the exercise of its best judgment and (ii) Loan Value in good faith, that there has been a Material Impairment in the value of Eligible Inventory its Collateral or in the prospect of repayment of Borrower; or (b) $4,500,000.00. 's Obligations, Lender reserves the right at any time and from time to time, upon 10 days advance written notice to Borrower, time to change the percentage to be advanced by Lender to Borrower on its Accounts based upon increases in the Dilution of Borrower’s Accounts as determined by Lender’s audits or review of monthly adjustments to Accounts. 2.2. The conditions precedent to each advance hereunder are that no Event of Default hereunder has occurred nor is the effect thereof continuing, and Borrower is in full, faithful and timely compliance with each and all of the covenants, conditions, warranties, and representations, contained in this Agreement and in every other agreement between Lender and Borrower. As a condition precedent to the first advance hereunder, Lender must also receive an official report from the Secretary of State of each Collateral State, the Chief Executive Office State, and the Borrower State (the “SOS Reports”), indicating that Lender’s security interest in the Collateral is prior to all other security interests and other interests reflected in the report excluding in all cases Permitted Liensreport. 2.3. Lender is hereby authorized to make advances based upon telephonic or other instructions received only from those officersanyone purporting to be an officer, employeesemployee, or representatives representative of Borrower that are designated in writing by Borrower delivered to LenderBorrower. 2.4. Unless provided otherwise in a promissory note executed and delivered by Borrower to Lender in connection with this Agreement, all Obligations shall be due and payable no later than the earlier of: (a) the last day of the term (or renewal term, if any) of this Agreement, (b) the day an Event of Default occurs, and (c) the day the Agreement is terminated by either party. 2.5. All Obligations shall bear interest, computed on the basis of a 360-day year for the actual days outstanding, at a fluctuating rate of interest equal to the sum of the Prime Rate plus two four and three-quarters of one percent (2.754.75%) per annum; provided, however, in no event shall the interest rate chargeable on such Obligations be less than six eight percent (6.008.00%) per annum, nor shall the minimum amount of interest payable monthly during the original and each renewal term of this Agreement be less than $10,000.00 8,750.00 per month for the first year of the Agreement and $5,000.00 per month for the second year of the Agreementmonth. 2.6. In the event of a change in the Prime Rate from time to time, the rate of interest to be charged to Borrower shall be correspondingly adjusted as of the date of the Prime Rate change. Interest shall be paid on the first day of each month. Any interest not paid when due shall become a part of the Obligations, and shall thereafter bear interest as provided herein. If an Event of Default or termination of this Agreement because of such default occurs, Borrower shall pay upon Lender’s demand an amount equal to the minimum monthly interest payment amount multiplied by the number of months of the term (or renewal term, as applicable), of this Agreement that would otherwise remain but for the occurrence of such Event of Default or termination. 2.7. Lender shall render statements to Borrower of the Obligations, including all principal, interest and Lender’s Costs owing, and such statements shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and Lender unless, within thirty (30) days after receipt thereof by Borrower, Borrower notifies Lender in writing specifying the error or errors, if any, contained in any such statements. 2.8. In consideration for establishing the Credit Facility on the terms and conditions provided for herein, Borrower agrees to pay to Lender a commitment and funding fee, which shall be deemed earned and non-refundable upon payment thereof: (a) in the amount of one and one-half tenth of one percent (1.501.10%) of the Credit Facility upon the execution hereof; and (b) in the amount of one-quarter half of one percent (0.250.50%) of the Credit Facility upon each annual date of this Agreement until such time as the Credit Facility has been terminated. In the event that the term of this Agreement is renewed as provided in article 5 below, Borrower shall pay within ten days prior to the anniversary date to Lender a renewal fee of one percent (1.00%) of the Credit Facility each renewal period. In the event that the amount under the Credit Facility is increased, Borrower shall pay to Lender a one percent (1.00%) line increase fee on the additional commitment amount. If at any time the amount of Obligations exceeds the amount Borrower does hereby agree is allowed to borrow under Section 2.1 (“Over Formula”), Borrower shall pay Lender a monthly collateral monitoring fee equal the amount of Lender’s standard Over Formula fees as determined by Lender from time to 0.30% of Borrower’s monthly average outstanding loan balance, deemed in accordance with generally accepted accounting principles, which fee shall be payable monthly on the first day of the following month with respect to the average outstanding loan balance during the preceding monthtime. All fees provided for in this Section shall be deemed earned and non-refundable upon payment thereof. 2.9. Upon an Event of Default, and for as long as such Event of Default or the consequences thereof continue, interest shall accrue on the Obligations from and after such Event of Default at a rate of interest which is four (4) percentage points greater than the rate then being charged. If, upon Borrower’s request, Lender gives a written acknowledgment that it will not exercise any of its remedies as the result of the occurrence of an Event of Default, Borrower shall pay to Lender the sum of $1,000.00. If Borrower fails for more than fifteen (15) days to furnish its monthly financial statements as required by Section 7.1(h), Borrower shall pay to Lender the sum of $50.00 for each day prior to Lender’s receipt of such financial statements. 2.10. No provision of this Agreement or any other aspect of the transaction of which this Agreement is a part is intended to or shall require or permit the holder, directly or indirectly, to take, receive, contract for or reserve, in money, goods or things in action, or in any other way, any interest (including amounts deemed by law to be interest, such amounts to then be deemed to be an addition to the rate of interest agreed upon) in excess of the maximum rate of interest permitted by law in the State of California as of the date hereof. If any such excess shall nevertheless be provided for, or be adjudicated by a court of competent jurisdiction to be provided for, the undersigned shall not be obligated to pay such excess but, if paid, then such excess shall be applied against the unpaid principal balance of this Agreement or, to the extent that the principal balance has been paid in full by reason of such application or otherwise, such excess shall be remitted to the undersigned. In the event any amount determined to be excessive interest is applied against the unpaid principal balance of this Agreement, and thereafter the rate of interest accruing under this Agreement is less than the rate permitted by law, this Agreement shall thereafter accrue interest at such highest lawful rate until such time as the amount accrued at the interest rate differential equals the amount of excessive interest previously applied against principal. Notwithstanding anything herein or in any of the other Loan Documents to the contrary, if any charge or fee for which Borrower or any Guarantor is or becomes obligated in connection with the Loan Documents constitutes interest and is not otherwise stated as a rate, such charge or fee shall be deemed an additional rate of interest to which Borrower and each Guarantor agreeagrees, computed by dividing the amount of such charge or fee by the principal amount of the Credit Facility. This provision shall control every agreement between Borrower and each Guarantor and Lender.

Advances and Charges. 2.1. Upon request of Borrower from time to time during the term hereof, Lender FCFC shall loan and advance to Borrower on a revolving basis the amount requested, provided the that said amount requested does not itself or when combined together with the then aggregate outstanding principal amount balance of all sums advances previously advanced hereunder, made does not exceed either (a) the sum of (i) seventy-five fifty percent (7550%) of the amount of Borrower’s Eligible Accounts of Borrower (less discounts, credits, allowances, service charges, commissions, and freight charges which may be granted to or taken by the account debtors) and (ii) Loan Value of Eligible Inventory of Borrower; or (b) $4,500,000.00). Lender FCFC reserves the right at any time and from time to time, upon 10 days advance written notice to Borrower, time to change the percentage to be advanced by Lender to Borrower on its Accounts based upon increases in the Dilution of Borrower’s Accounts as determined by Lender’s audits or review of monthly adjustments to Accounts. 2.2. The conditions precedent to each advance hereunder are that no Event of Default hereunder has occurred nor is the effect thereof continuing, and Borrower is in full, faithful and timely compliance with each and all of the covenants, conditions, warranties, and representations, contained in this Agreement and in every other agreement between Lender FCFC and Borrower. As a condition precedent to the first advance hereunder, Lender FCFC must also receive an official report from the Secretary of State of each Collateral State, the Chief Executive Office State, and the Borrower State (the “SOS Reports”), indicating that LenderFCFC’s security interest in the Collateral is prior to all other security interests and other interests reflected in the report excluding in all cases Permitted Liensreport. 2.3. Lender FCFC is hereby authorized to make advances based upon telephonic or other instructions received only from those officersanyone purporting to be an officer, employeesemployee, or representatives representative of Borrower that are designated in writing by Borrower delivered to LenderBorrower. 2.4. Unless provided otherwise in a promissory note executed and delivered by Borrower to Lender FCFC in connection with this Agreement, all Obligations shall be due and payable no later than the earlier of: of (a) the last day of the term (or renewal term, if any) of this Agreement, (b) the day an Event of Default occurs, and (c) the day the Agreement is terminated by either party. 2.5. All Obligations shall bear interest, computed on the basis of a 360-day year for the actual days outstanding, at a fluctuating rate of interest equal to the sum of the Prime Rate plus two and three-quarters of one four percent (2.754.00%) per annum; provided, however, in no event shall the interest rate chargeable on such Obligations be less than six eight and one-quarter percent (6.008.25%) per annum, . In no event shall the minimum amount of interest payable monthly be less than $3,750.00 during the initial six months of the Agreement nor shall the minimum amount of interest payable monthly during the original and each renewal term of this Agreement be less than $10,000.00 per month for 2,000.00 during the first year remaining six months of the Agreement and $5,000.00 per month for the second year of the Agreement.or each renewal term thereafter; 2.6. In the event of a change in the Prime Rate from time to time, the rate of interest to be charged to Borrower shall be correspondingly adjusted as of the date of the Prime Rate change. Interest shall be paid on the first day of each month. Any interest not paid when due shall become a part of the Obligations, and shall thereafter bear interest as provided herein. If an Event of Default or termination of this Agreement because of such default occurs, Borrower shall pay upon LenderFCFC’s demand an amount equal to the minimum monthly interest payment amount multiplied by the number of months of the term (or renewal term, as applicable), of this Agreement that would otherwise remain but for the occurrence of such Event of Default or termination. 2.7. Lender FCFC shall render statements to Borrower of the Obligations, including all principal, interest and LenderFCFC’s Costs owing, and such statements shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrower and Lender FCFC unless, within thirty (30) days after receipt thereof by Borrower, Borrower notifies Lender FCFC in writing specifying the error or errors, if any, contained in any such statements. 2.8. In consideration for establishing the Credit Facility on the terms and conditions provided for herein, Borrower agrees to pay to Lender FCFC upon the execution hereof a commitment and funding fee, which shall be deemed earned and non-refundable upon payment thereof: (a) in the amount fee of one and one-half of one percent (1.50%) of the Credit Facility upon the execution hereof; and (b) in the amount of one-quarter of one percent (0.25%) of the Credit Facility upon Facility. Upon each annual date renewal of this Agreement until such time as the Credit Facility has been terminated. In the event that the term of this Agreement is renewed as provided in article Article 5 below, Borrower shall pay within ten days prior to the anniversary date to Lender FCFC a renewal fee of one percent (1.00%) of the amount of the Credit Facility no later than the first day of each renewal period. In the event that , and upon each increase in the amount under of the Credit Facility is increasedFacility, Borrower shall pay to Lender a FCFC an increased credit line fee of one percent (1.00%) line increase fee on the additional commitment amount. Borrower does hereby agree to pay Lender a monthly collateral monitoring fee equal to 0.30% of Borrower’s monthly average outstanding loan balance, deemed in accordance with generally accepted accounting principles, which fee shall be payable monthly on the first day of the following month with respect to amount of the average outstanding loan balance during the preceding monthincrease. All fees provided for in this Section section shall be deemed earned and non-refundable upon payment thereof. 2.9. Upon an Event of Default, and for as long as such Event of Default or the consequences thereof continue, interest shall accrue on the Obligations from and after such Event of Default at a rate of interest which is four (4) percentage points greater than the rate then being charged. If, upon Borrower’s request, Lender gives a written acknowledgment that it will not exercise any of its remedies as the result of the occurrence of an Event of Default, Borrower shall pay to Lender the sum of $1,000.00. If Borrower fails for more than fifteen (15) days to furnish its monthly financial statements as required by Section 7.1(h), Borrower shall pay to Lender the sum of $50.00 for each day prior to Lender’s receipt of such financial statements. 2.10. No provision of this Agreement or any other aspect of the transaction of which this Agreement is a part is intended to or shall require or permit the holder, directly or indirectly, to take, receive, contract for or reserve, in money, goods or things in action, or in any other way, any interest (including amounts deemed by law to be interest, such amounts to then be deemed to be an addition to the rate of interest agreed upon) in excess of the maximum rate of interest permitted by law in the State of California Arizona as of the date hereof. If any such excess shall nevertheless be provided for, or be adjudicated by a court of competent jurisdiction to be provided for, the undersigned shall not be obligated to pay such excess but, if paid, then such excess shall be applied against the unpaid principal balance of this Agreement or, to the extent that the principal balance has been paid in full by reason of such application or otherwise, such excess shall be remitted to the undersigned. In the event any amount determined to be excessive interest is applied against the unpaid principal balance of this Agreement, and thereafter the rate of interest accruing under this Agreement is less than the rate permitted by law, this Agreement shall thereafter accrue interest at such highest lawful rate until such time as the amount accrued at the interest rate differential equals the amount of excessive interest previously applied against principal. Notwithstanding anything herein or in any of the other Loan Documents to the contrary, if any charge or fee for which Borrower or any Guarantor is or becomes obligated in connection with the Loan Documents constitutes interest and is not otherwise stated as a rate, such charge or fee shall be deemed an additional rate of interest to which Borrower and each Guarantor agree, computed by dividing the amount of such charge or fee by the principal amount of the Credit Facility. This provision shall control every agreement between Borrower and each Guarantor and LenderFCFC.