Common use of Initial and Subsequent Extensions of Credit Clause in Contracts

Initial and Subsequent Extensions of Credit. The effectiveness of this Agreement and the obligation of any Bank to make any Loan or otherwise extend any credit to the Company upon the occasion of each borrowing or other extension of credit hereunder (including the initial borrowing or other extension of credit) is subject to the further conditions precedent that, both immediately prior to the making of such Loan or other extension of credit and also after giving effect thereto and to the intended use thereof: (a) no Default shall have occurred and be continuing; (b) the representations and warranties made by the Company in Section 7 hereof, and by the Company in each of the other Basic Documents to which it is a party, shall be true and complete on and as of the date of the making of such Loan or other extension of credit with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the aggregate outstanding principal amount of the Loans together with the aggregate amount of all Letter of Credit Liabilities and Acceptance Liabilities shall not exceed the lesser of (x) the Borrowing Base reflected on the most recent Borrowing Base Certificate delivered pursuant to Section 8.01(d) hereof and (y) the Revolving Loan Commitment. Each notice of borrowing or request for the issuance of a Letter of Credit or for the creation and discount of Acceptances by the Company hereunder shall constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice or request and, unless the Company otherwise notifies the Agent prior to the date of such borrowing, issuance or creation and discount, as of the date of such borrowing, issuance or creation and discount).

Initial and Subsequent Extensions of Credit. The effectiveness of this Agreement and the obligation of any Bank to make any Loan or otherwise extend any credit to the Company upon the occasion of each borrowing or other extension of credit hereunder (including the initial borrowing or other extension of credit) is subject to the further conditions precedent that, both immediately prior to the making of such Loan or other extension of credit and also after giving effect thereto and to the intended use thereof: (a) no Default shall have occurred and be continuingexists; (b) the representations and warranties made by the Company in Section 7 hereof, and by the Company each Obligor in each of the other Basic Documents to which it is a party, shall be true and complete on and as of the date of the making of such Loan or other extension of credit with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the aggregate outstanding principal amount of the Loans together with the aggregate amount of all Letter of Credit Liabilities and Acceptance Liabilities Exposure shall not exceed the lesser of (x) the Borrowing Base reflected on plus if applicable, with respect to any commercial Letter of Credit to be issued to secure the most recent purchase price of Inventory, 80% of the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit is issued that is not already included in the Borrowing Base Certificate delivered pursuant to Section 8.01(d) hereof and (y) the Revolving Loan Commitment. Each notice of borrowing Borrowing Request or request for the issuance of a Letter of Credit or for the creation and discount of Acceptances by the Company hereunder shall constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice or request and, unless the Company otherwise notifies the Agent prior to the date of such borrowing, issuance or creation and discount, as of the date of such borrowing, issuance or creation and discount).

Initial and Subsequent Extensions of Credit. The effectiveness of this Agreement and the obligation of any Bank Lender to make any Loan (including such Lender's initial Loan) or otherwise extend any credit to the Company upon the occasion of each borrowing or other extension of credit hereunder (including the initial borrowing or other extension of credit) under this Agreement is subject to the further conditions precedent that, both immediately prior to the making of such Loan or other extension of credit and also after giving effect thereto to, and to the intended use thereofof, such Loan or other extension: (a) no Default shall have occurred and be continuing; (b) the representations and warranties made by the Company in Section 7 hereof7, and by the Company in each of the other Basic Documents to which it is a party, shall be true and complete on and as of the date of the making of such Loan or other extension of credit with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the aggregate outstanding principal amount of the Revolving Credit Loans borrowed on such occasion together with the aggregate face amount of all Letter Letters of Credit Liabilities and Acceptance Liabilities issued on such occasion shall not (subject to the right of the Administrative Agent to make Discretionary Extensions pursuant to Section 2.02(c)) exceed the lesser of (x) availability under the Borrowing Base as reflected on in the most recent Borrowing Base Certificate delivered pursuant to Section 8.01(d) hereof and (y) the Revolving Loan Commitment8.01(f). Each notice of borrowing or request for the issuance of a Letter of Credit or for the creation and discount of Acceptances by the Company hereunder shall constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice or request and, unless the Company otherwise notifies the Administrative Agent prior to the date of such borrowing, issuance borrowing or creation and discountissuance, as of the date of such borrowing, issuance borrowing or creation and discountissuance).

Initial and Subsequent Extensions of Credit. The effectiveness of this Agreement and the obligation of any Bank to make any Loan Loan, issue any Letter of Credit or otherwise extend any credit to the Company upon the occasion of each borrowing borrowing, issuance or other extension of credit hereunder (including the initial borrowing Loan, Letter of Credit or other extension of credit) is subject to the further conditions precedent that, both immediately prior to the making of such Loan Loan, issuance of such Letter of Credit or other extension of credit and also after giving effect thereto and to the intended use thereof: (a) no Default shall have occurred and be continuingexists; (b) the representations and warranties made by the Company in Section 7 hereof, and by the Company each Obligor in each of the other Basic Documents to which it is a party, shall be true and complete correct in all material respects on and as of the date of the making of such Loan Loan, issuance of such Letter of Credit or other extension of credit (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date) with the same force and effect as if made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the aggregate outstanding principal amount of the Loans together with the aggregate amount of all Letter of Credit Liabilities and Acceptance Liabilities Exposure shall not exceed the lesser of (x) the Borrowing Base reflected on the most recent Borrowing Base Certificate delivered pursuant to Section 8.01(d) hereof and (y) the Revolving Loan Commitment. Each notice of borrowing Borrowing Request or request for the issuance of a Letter of Credit or for the creation and discount of Acceptances by the Company hereunder shall constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice or request and, unless the Company otherwise notifies the Agent prior to the date of such borrowing, borrowing or issuance or creation and discount, as of the date of such borrowing, issuance borrowing or creation and discountissuance).