Common use of Capex Loans Clause in Contracts

Capex Loans. Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender with a Term Loan Commitment may, in its sole discretion, make term loans (collectively, the "Term Loan") to Borrowers, after the Eighth Amendment Effective Date, in an aggregate principal amount at any one time outstanding not to exceed such Lender's Pro Rata Share of the Term Loan Amount. The proceeds of each Term Loan shall be used by a Borrower solely to fund a portion of the purchase price of assets ("Capital Assets") acquired by such Borrower after the Eighth Amendment Effective Date that, in accordance with GAAP, are or should be included in "property, plant and equipment" or in a similar fixed asset account on such Borrower's balance sheet. The maximum principal amount of each Term Loan shall not exceed 70% of the Hard Cost of the Capital Assets to be acquired by the Borrowers with a portion of the proceeds of such Term Loan. Each Term Loan shall be made in a minimum amount of $50,000. The outstanding unpaid principal balance and all accrued and unpaid interest under the Term Loan shall be due and payable on the date of termination of this Agreement, whether by its terms, by prepayment, or by acceleration. All amounts outstanding under the Term Loan shall constitute Obligations. Any principal amount of the Term Loan which is repaid or prepaid by Borrowers may be reborrowed pursuant to the terms hereof. Borrowers may, at any time, prepay all or a portion of the Term Loan without penalty or premium."

Capex Loans. Subject to and upon the terms and conditions of this Agreement, and during the term of this Agreementherein set forth, each Lender with severally agrees to make to Borrower, to the extent of the CapEx Loan Commitment, CapEx Loan Advances on any Business Day during the period from the First Amendment Closing Date to May 10, 2007, to finance Borrower's purchase of Eligible Equipment and Eligible Real Estate Improvements. In no event shall any Lender have any obligation to honor a Term request of Borrower for a CapEx Loan Commitment mayunless at the time of such request each of the CapEx Loan Conditions is satisfied, in its sole discretion, make term loans (collectively, and the "Term Loan") to Borrowers, after the Eighth Amendment Effective Date, in an aggregate principal amount at any one time outstanding of each CapEx Loan that is requested by Borrower shall not to exceed such Lender's Pro Rata Share of the Term Loan Amountbe less than $200,000. The proceeds of each Term CapEx Loan shall be used by a Borrower solely to fund a portion of purchase Eligible Equipment and Eligible Real Estate Improvements and the purchase price of assets ("Capital Assets") acquired by such Borrower after the Eighth Amendment Effective Date that, in accordance with GAAP, are or should be included in "property, plant and equipment" or in a similar fixed asset account on such Borrower's balance sheet. The maximum principal amount of each Term CapEx Loan shall not exceed 7080% of the Hard Cost Equipment Purchase Price of the Capital Assets Eligible Equipment or 80% of the Real Estate Improvement Purchase Price of the Eligible Real Estate Improvements so purchased. Each Lender shall make its CapEx Loan Advance available to be acquired by Agent in immediately available funds, to such account of Agent as Agent may designate, not later than 12:00 noon on the Borrowers with a portion date that Borrower requests such CapEx Loan. After Agent's receipt of the proceeds of such Term Loan. Each Term CapEx Loan Advance, and upon satisfaction of the conditions precedent set forth in Section 10 hereof and Section 10 of the First Amendment, Agent shall be made in a minimum amount make the proceeds of $50,000. The outstanding unpaid principal balance and all accrued and unpaid interest under the Term such CapEx Loan shall be due and payable Advances available to Borrower on the date requested by Borrower by transferring same day funds equal to the proceeds of termination of this Agreement, whether such CapEx Loan Advances received by its terms, Agent to an account designated by prepayment, or by accelerationBorrower in writing. All amounts outstanding under CapEx Loans shall be secured by the Term Loan shall constitute ObligationsCollateral. Any principal Borrower may not reborrow any amount repaid with respect to any of the Term Loan which is repaid or prepaid by Borrowers may be reborrowed pursuant to the terms CapEx Loans. The CapEx Loans shall bear interest as set forth in Section 2.1.1 hereof. Borrowers may, at any time, prepay all or a portion of the Term Loan without penalty or premium."

Capex Loans. (a) Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Lender with a Term Loan Commitment may, in its sole discretion, make term loans (collectively, the "“Term Loan"”) to Borrowers, after the Eighth Amendment Effective Date, in an aggregate principal amount at any one time outstanding not to exceed such Lender's ’s Pro Rata Share of the Term Loan Amount. The proceeds of each Term Loan shall be used by a Borrower solely to fund a portion of the purchase price of assets ("“Capital Assets"”) acquired by such Borrower after the Eighth Amendment Effective Date that, in accordance with GAAP, are or should be included in "“property, plant and equipment" ” or in a similar fixed asset account on such Borrower's ’s balance sheet. The maximum principal amount of each Term Loan shall not exceed 70% of the Hard Cost of the Capital Assets to be acquired by the Borrowers with a portion of the proceeds of such Term Loan. Each Term Loan shall be made in a minimum amount of $50,000. The outstanding unpaid principal balance and all accrued and unpaid interest under the Term Loan shall be due and payable on the date of termination of this Agreement, whether by its terms, by prepayment, or by acceleration. All amounts outstanding under the Term Loan shall constitute Obligations. Any principal amount of the Term Loan which is repaid or prepaid by Borrowers may be reborrowed pursuant to the terms hereof. Borrowers may, at any time, prepay all or a portion of the Term Loan without penalty or premium." (b) Notwithstanding anything to the contrary contained in this Section 2.2, the Borrowers hereby acknowledge, confirm and agree that (i) immediately prior to the Restatement Effective Date, the outstanding principal amount of the Term Loan under and as defined in the Original Loan Facility is equal to $[0.00] (such Indebtedness being hereinafter referred to as the “Original Term Loan Indebtedness”), (ii) such Original Term Loan Indebtedness shall not be repaid on the Restatement Effective Date, but rather shall be reevidenced by this Agreement as a portion of the Term Loan outstanding hereunder, (iii) for all purposes of this Agreement and the other Loan Documents, the Original Term Loan Indebtedness on the Restatement Effective Date shall constitute the Term Loan outstanding on the Restatement Effective Date.

Capex Loans. (i) Subject to the terms and conditions of this Agreement, each Lender, severally and during the term of this Agreementnot jointly, each Lender with a Term Loan Commitment mayshall, in its sole discretionfrom time to time, make term loans available Advances to one or more Borrowers (each, a “CapEx Loan” and collectively, the "Term Loan"“CapEx Loans”) to Borrowersfinance each applicable Borrower’s purchase of Equipment for use in each such Borrower’s business. All such CapEx Loans shall be in such amounts as are requested by Borrowing Agent, after but in no event shall any CapEx Loan exceed ninety (90%) percent of the Eighth Amendment Effective Datenet invoice cost (excluding taxes, shipping, delivery, handling, installation, overhead and other so called “soft” costs) of the Equipment then to be purchased by Borrowers and the total amount of all CapEx Loans outstanding hereunder shall not exceed, in an aggregate principal amount at any one time outstanding the aggregate, the sum of Six Million Five Hundred Thousand Dollars ($6,500,000.00). Once repaid CapEx Loans may not to exceed such Lender's Pro Rata Share of the Term Loan Amount. The proceeds of each Term Loan be reborrowed. (ii) Advances constituting CapEx Loans shall be used by accumulated during each six month period (each a Borrower solely to fund a portion of “Borrowing Period”) during the purchase price of assets Term. Notwithstanding the foregoing, the first Borrowing Period shall commence on the Restated Closing Date and end on December 31, 2007 ("Capital Assets") acquired by such Borrower after the Eighth Amendment Effective Date that, in accordance with GAAP, are or should be included in "property, plant and equipment" or in a similar fixed asset account on such Borrower's balance sheet. The maximum principal amount of each Term Loan shall not exceed 70% of the Hard Cost of the Capital Assets to be acquired by the Borrowers with a portion of the proceeds of such Term Loan“Initial Borrowing Period”). Each Term Loan subsequent Borrowing Period shall be made in a minimum amount consist of $50,000six month periods commencing on January 1, 2008. The outstanding unpaid principal balance For the twelve-month period commencing on the Restated Closing Date and all accrued and unpaid ending on December 31, 2007, only interest under the Term Loan shall will be due and payable on the date CapEx Loans. Thereafter, at the end of each Borrowing Period, the sum of all CapEx Loans made during the Borrowing Period shall amortize on the basis of a forty-eight (48) month schedule (such amount as determined with respect to any Borrowing Period, the “Amortization Amount”). Monthly principal payments will be initially determined for the CapEx Loans made during the Initial Borrowing Period and the amount of such monthly principal payments shall be increased upon the completion of each such subsequent Borrowing Period by the Amortization Amount for each such subsequent Borrowing Period. The CapEx Loans shall be, with respect to principal, payable in equal monthly installments based upon the amortization schedule set forth above, commencing on January 1, 2008 and on the first day of each month thereafter with the balance payable upon the expiration of the Term, subject to acceleration upon the occurrence of an Event of Default under this Agreement or termination of this Agreement. CapEx Loans shall be evidenced by one or more secured promissory notes (collectively, whether by its terms, by prepayment, or by acceleration. All amounts outstanding under the Term Loan shall constitute Obligations. Any principal amount “CapEx Note”) in substantially the form attached hereto as Exhibit 2.4(a). (iii) Voluntary prepayments of the Term Loan which is repaid or prepaid by Borrowers CapEx Loans shall be applied in the inverse order of scheduled payments and may not be reborrowed pursuant to the terms hereof. Borrowers may, at any time, prepay all or a portion of the Term Loan without penalty or premiumreborrowed."