Certain Restrictions on Advances Clause Samples

Certain Restrictions on Advances. The parties acknowledge that, on or about the date hereof, the Company is entering into various third party financing arrangements pursuant to the agreements described on Schedule 1.6. (the “Concurrent Financing”) separate and apart from the transactions contemplated by this Agreement. Concurrent Financing for all purposes of this Agreement shall also include any exercise of warrants outstanding on the date hereof that occurs within sixty (60) days from the date hereof). The Company shall not be permitted to request any Advance until such time as no more than Two Million Dollars ($2,000,000) of the proceeds raised by the Company in the Concurrent Financing remains to be spent or otherwise used by the Company. Either the Company’s Chief Executive Officer or Chief Financial Officer shall confirm in writing to the Lender that the condition specified in the immediately preceding sentence has been met, after which such time the Company shall be permitted to request an Advance pursuant to the terms and conditions contained in this Agreement.