Inventory Loans. Loans (the "Inventory Loans") in an amount up to the lesser of:
(1) 25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or
(2) $1,500,000.
Inventory Loans. Section 3 of the letter agreement with respect to inventory loans, dated as of July 31, 1992, between Congress and Borrower (the "Inventory Loan Letter") is hereby deleted in its entirety and the following substituted therefor:
Inventory Loans. In the event Lender has agreed or hereafter agrees to provide loans to Borrower against any inventory of Borrower, such loans shall be upon the terms and conditions set forth in an Inventory Rider signed by Borrower and Lender (the "Inventory Rider") and shall constitute Obligations under this Agreement. Any such inventory loans shall not, when added to the outstanding Advances exceed the Maximum Credit.
Inventory Loans. During the period from May 1, 1996 through August 31, 1996, and only for such period, Section 2 of the letter re: Inventory Loans, dated December 31, 1994, by Borrower in favor of Congress (the "Inventory Loan Letter") is hereby amended by replacing the reference to "fifty (50%) percent" with "sixty (60%) percent".
Inventory Loans. (a) INVENTORY ADVANCE RATES. Paragraph 2 of the Letter re: Inventory Loans, dated March 23, 1990, by LCI in favor of Congress (the "Inventory Loan Letter"), as heretofore amended by the August 1, 1995 Amendment, is hereby amended by deleting the phrase "(i) up to sixty-five (65%) percent of the Value of eligible finished goods Inventory, (ii) up to fifty (50%) percent of the Value of eligible raw materials Inventory and (iii) up to fifty (50%) percent of the Value of eligible work-in-process Inventory" and replacing it with the following:
(i) up to sixty-five (65%) percent of the Value of eligible finished goods Inventory, (ii) up to sixty-five (65%) percent of the Value of eligible raw materials Inventory and (iii) up to sixty-five (65%) percent of the Value of eligible work-in-process Inventory".
Inventory Loans. An amount not to exceed the lesser of:
(i) 20% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or
(ii) an amount equal to 40% of Borrower's Eligible Receivables, or
(iii) $1,250,000 (provided, however, upon Silicon's receipt and approval of Borrower's quarterly financial statements showing Borrower has complied with its Income Statement Forecast for the Year Ended December 31, 2001 (the "Forecast", SILICON VALLEY BANK AMENDMENT TO LOAN DOCUMENTS ----------------------------------------------------------------------- attached hereto as Exhibit A) for two consecutive fiscal quarters (the first of such quarters being the fiscal quarter ending June 30, 2001 or any fiscal quarter ending thereafter), such figure shall increase from $1,250,000 to $1,500,000); provided further that Silicon may revise the advance rates with respect to Inventory set forth above in Silicon's good faith business judgment based on independent third-party appraisals of the Inventory made by appraisers selected by Silicon."
Inventory Loans. The lesser of 25% of the Value of Borrower's Eligible Inventory (as defined in Section 8 above) or $7,500,000. (VALUE, as used herein, means the lower of cost or wholesale market value.) plus
Inventory Loans. (a) ELIGIBLE INVENTORY. Subparagraph 1a. of the Letter re: Inventory Loans, dated March 23, 1990, by LPC in favor of Congress, as amended (the "Inventory Loan Letter") is hereby amended by adding the following sentence at the end of such subparagraph: "Notwithstanding the foregoing, finished goods Inventory shall not be considered Eligible Inventory unless, in addition to satisfying all of your other criteria for determining Eligible Inventory, such Inventory is the subject of written purchase agreements providing for delivery of such Inventory no later than ninety (90) days following the applicable date of your determination of Eligible Inventory hereunder."
Inventory Loans. Loans (the "Inventory Loans") in an amount up the lesser of:
(1) 25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis, or
(2) $500,000. Silicon shall have the right, at all times, to reserve from Loans otherwise available to Borrower the sum of $10,000 in respect of cash management services provided by Silicon to Borrower. Without limiting the definition of "Eligible Receivables", receivables owing to Borrower's subsidiaries shall not constitute Eligible Receivables.
Inventory Loans. Subject to the terms of this Agreement, on the date of this Agreement or at such time that all applicable conditions have been satisfied, whichever is later, Lender will make a loan to each Borrower, to the extent requested by such Borrower as of such date, in the original principal amount of the Inventory Loan Advance Amount applicable to such Borrower, provided, that the aggregate amount funded under the Inventory Loan shall not exceed the Inventory Loan Limit. To evidence the loan(s) made by Lender under the Inventory Loan pursuant to this Section 2.01(a), each Borrower who requests a loan under the Inventory Loan will issue, execute and deliver to Lender an Inventory Loan Note evidencing such loan, in the face amount of such loan and dated as of the date of this Agreement. Upon satisfaction of each of the Term Loan B Conditions and provided that no Default or Event of Default shall have occurred, and subject to all other terms of this Agreement, any Borrower that executed and delivered to Lender an Inventory Loan Note pursuant to this Section 2.01(a) may reborrow a loan thereunder (the funding of any such reborrowing, an "Inventory Loan Reload") in an amount such that the resulting unpaid principal balance of such Inventory Loan Note, as of the time of funding such reborrowing, shall not exceed the lesser of the stated face amount of such Inventory Loan Note or the Inventory Loan Advance Amount applicable to such Borrower determined as of the time of such funding, provided that the aggregate unpaid principal balance under all Inventory Loan Notes resulting from funding of any such reborrowing shall not exceed the Inventory Loan Limit. Interest on the unpaid principal balance from time to time under each such Inventory Loan Note shall accrue at the rate, and as provided, in Section 2.02. Principal and accrued interest under each such Inventory Loan Note shall be due and payable ON DEMAND or, if no demand is made and for so long as no demand is made, then in monthly payments in an amount equal to the Inventory Loan Amortization Amount plus accrued interest, which shall be paid on the first day of each month beginning February 1, 1999, and continuing thereafter, and one final payment of all unpaid principal and accrued unpaid interest on December 1, 2000.
