Common use of Limitation on Borrowings Clause in Contracts

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount of the Line of Credit, shall not at any time exceed a borrowing base consisting of the aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts, plus (ii) fifty percent (50%) of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s gross sales for said period. If such dilution of Borrower’s accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivable.

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty ninety percent (8090%) of Borrower’s Eligible AccountsAccounts Receivable, as defined below, plus (ii) fifty seventy five percent (5075%) of the value of Borrower’s Eligible Inventory Inventory, as defined below, with value defined as the lower of cost or $10,000,000, whichever is less, and less (iii) an amount equal to fair market value on a first-in first- out basis determined in accordance with generally accepted accounting principles. All of the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable Eligible Accounts Receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivable's Eligible Accounts Receivable.

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of the an aggregate of (i) eighty percent (80%) of Borrower’s Eligible Accounts's eligible accounts receivable, plus (ii) fifty percent (50%) of the value of Borrower’s Eligible Inventory 's eligible raw material inventory and thirty-five percent (35%) of the value of Borrower's finished goods (exclusive of work in process and inventory which is obsolete, unsaleable or $10,000,000damaged), whichever is less, and less (iii) an amount equal to with value defined as the Borrowing Base Reservelower of cost or market value. The All of the foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s 's gross sales for said period. If such dilution of Borrower’s 's accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s 's gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s 's eligible accounts receivable.

Limitation on Borrowings. Outstanding borrowings under the Line of Credit, whether before or after any increase to the amount a maximum of the Line of Creditprincipal amount set forth above, shall not at any time exceed a borrowing base consisting of (the "Borrowing Base") which is an aggregate of (i) eighty percent (80%) of Borrower’s Borrowers' Eligible Accounts, plus Accounts Receivable (ii) fifty percent (50%) as defined below). All of the value of Borrower’s Eligible Inventory or $10,000,000, whichever is less, and less (iii) an amount equal to the Borrowing Base Reserve. The foregoing shall be determined by Bank upon receipt and review of all collateral reports required hereunder and such other documents and collateral information as Bank may from time to time require. Borrower acknowledges that said borrowing base the Borrowing Base was established by Bank with the understanding that, among other items, the aggregate of all returns, rebates, discounts, credits and allowances for the immediately preceding three (3) months at all times shall be less than five percent (5%) of Borrower’s Borrowers' gross sales for said period. If such dilution of Borrower’s Borrowers' accounts for the immediately preceding three (3) months at any time exceeds five percent (5%) of Borrower’s Borrowers' gross sales for said period, or if there at any time exists any other matters, events, conditions or contingencies which Bank reasonably believes may affect payment of any portion of any Borrower’s 's accounts, Bank, in its sole reasonable discretion, may reduce the foregoing advance rate against eligible accounts receivable to a percentage appropriate to reflect such additional dilution and/or establish additional reserves against Borrower’s eligible accounts receivableBorrowers' Eligible Accounts Receivable.