Common use of Line of Credit Loan Clause in Contracts

Line of Credit Loan. (a) Subject to and upon the terms and conditions of this Agreement and so long as no Event of Default has occurred, up to the Advance Expiration Date (defined below), Bank will make a revolving line of credit loan (“Line of Credit”) to Borrower. The Line of Credit shall not exceed Twenty-Five Million Dollars ($25,000,000) (the “Maximum Loan Amount”). (b) Subject to the terms and conditions of this Agreement, principal may be advanced, repaid and readvanced from time-to-time until March 25, 2009 (the “Advance Expiration Date”), which date may be extended by a written agreement of Bank and Borrower. The principal of each Advance shall be due and payable forty-five (45) days following the Disbursement Date (the °Repayment Date”); provided that all amounts outstanding under the Line of Credit shall be due and payable on the earliest to occur of: (i) the date on which the Borrower has received funding of Capital Calls totaling ninety percent (90%) of the Capital Commitments, or (ii) May 9, 2009 (the “Maturity Date”). (c) Borrower may obtain advances of principal under the Line of Credit (“Advances”) from time to time upon the oral or written request to Bank of a Designated Representative of Borrower. Any request for an Advance shall be made at least one (1) Business Day prior to the requested date for such Advance, specifying the amount of the requested Advance. Bank shall render monthly statements of amounts owing by Borrower under this Agreement, including statements of all principal, interest, fees and Bank Expenses owing, and such statement shall be presumed to be correct and accurate and constitute an account stated between Borrower and Bank unless, within thirty (30) days after receipt thereof by Borrower, Borrower shall deliver to Bank, by registered or certified mail, at Bank’s place of business indicated in Exhibit A, written objection thereto specifying the alleged error or errors contained in such statement. (d) Borrower hereby expressly authorizes Bank to rely on any request for an Advance made by any Designated Representative so long as the proceeds of the Advance are deposited by Bank into Borrower’s Account identified on Exhibit A. Borrower agrees that it, solely, shall bear the risk that any such Advance was not so authorized. All Advances shall be conclusively presumed to have been made for the benefit of Borrower when said Advances are deposited into Borrower’s Account. (e) The terms of the Line of Credit shall be reflected in and incorporated into a separate promissory note, which shall be subject to the terms of this Agreement. Interest on the Advances shall accrue as specified in the Note. Borrower hereby agrees to make payment on the Advances (principal and interest) as specified in the Note.

Line of Credit Loan. (a) 2.1.1. Subject to all terms set forth herein and upon for so long as the terms bank has not demanded payment of the Loan and conditions of this Agreement and for so long as no Event of Default has occurredexists, Bank agrees, from time to time and on the terms hereinafter set forth, to loan to Borrower, when requested by Borrower, principal amounts aggregating up to the Advance Expiration Date lesser of (defined below)i) $6,500,000 or (ii) the Aggregate Loan Values as determined by the Bank from the periodic reports submitted by Borrower to the Bank. Notwithstanding any other provision hereof, Bank will the Loan Value of Inventory shall not at any time exceed the sum of $1,500,000. Within the aforesaid limits, the Borrower may borrow, make a revolving line of credit loan (“Line of Credit”) payments, and reborrow under this Agreement, subject to Borrowerthe provisions hereof. 2.1.2. The Line obligation to repay the Loan shall be evidenced by a Note dated the date of Credit this Agreement payable to the order of the Bank and, subject to the notice provisions of Section 2.1.7, maturing ON DEMAND, and amounts due under the Note and otherwise under this Agreement and under the Loan Documents shall not exceed Twenty-Five Million Dollars ($25,000,000) (be reflected in the “Maximum Loan Amount”)Account. 2.1.3. Borrower shall submit a Borrower's Report in the form attached hereto as Exhibit "A" (bor in such other form as may be furnished by Bank from time to time) Subject to on the terms date of this Agreement and conditions at least monthly thereafter during the term of this Agreement, except that during such time as there is no outstanding principal may balance on the Loan, the report need be advanced, repaid and readvanced from time-to-time until March 25, 2009 (submitted only on a quarterly basis. Each advance made under the “Advance Expiration Date”), which date may be extended by a written agreement of Bank and Borrower. The principal of each Advance Loan shall be due and payable forty-five (45) days following effected by the Disbursement Date (the °Repayment Date”); provided that all amounts outstanding under the Line of Credit shall be due and payable on the earliest to occur of: (i) the date on which the Borrower has received funding of Capital Calls totaling ninety percent (90%) of the Capital Commitments, or (ii) May 9, 2009 (the “Maturity Date”). (c) Borrower may obtain advances of principal under the Line of Credit (“Advances”) from time to time upon the oral or written request presentation to Bank of said Borrower's Report and a Designated Representative Notice of Borrower. Any request for an Advance shall be made at least one (1) Business Day prior Borrowing in accordance with Section 2.3 hereof, and subject to the requested date for such Advance, specifying the amount availability of the requested Advance. Bank shall render monthly statements of amounts owing by Borrower loan proceeds under this Agreement, including statements of all principal, interest, fees and Bank Expenses owing, and such statement shall be presumed to be correct and accurate and constitute an account stated between compliance by Borrower and Bank unless, within thirty (30) days after receipt thereof by Borrower, Borrower shall deliver to Bank, by registered or certified mail, at Bank’s place of business indicated in Exhibit A, written objection thereto specifying the alleged error or errors contained in such statement. (d) Borrower hereby expressly authorizes Bank to rely on any request for an Advance made by any Designated Representative so long as the proceeds of the Advance are deposited by Bank into Borrower’s Account identified on Exhibit A. Borrower agrees that it, solely, shall bear the risk that any such Advance was not so authorized. All Advances shall be conclusively presumed to have been made for the benefit of Borrower when said Advances are deposited into Borrower’s Account. (e) The terms of the Line of Credit shall be reflected in and incorporated into a separate promissory note, which shall be subject to with the terms of this Agreement, and the absence of an Event of Default, Bank shall make such advance. 2.1.4. Interest on If the Advances outstanding principal amount of the Loan at any time exceeds the Aggregate Loan Values, Borrower shall accrue immediately pay Bank an amount equal to such excess as specified in the Note. Borrower hereby agrees to make a payment on the Advances (principal amount of the Loan. Without limiting the foregoing, which provision may be enforced by Bank at any time and interest) which provision, as specified well as the other provisions hereof, may not under any circumstance be waived or altered by a course of dealing or otherwise, insofar as Borrower may request and Bank may be willing in its sole and absolute discretion to make Overadvances, Bank shall enter such Overadvances as debits in the NoteLoan Account. All Overadvances shall be payable on demand, shall be secured by the Collateral and shall bear interest as provided in this Agreement for Base Rate Advances. Bank may in its sole discretion honor any request (or deemed request) for a Loan even though an Overadvance Condition then exists, or would exist with the making of such Loan, and without regard to the existence of, and without waiving, any default or Event of Default. 2.1.5. Each borrowing under the Loan shall be effected by crediting the amount thereof to the regular checking account of Borrower maintained with the Bank or with another bank approved by the Bank. 2.1.6. Borrower shall use the proceeds of the Loan for working capital needs, and for no other purpose. 2.1.7. Notwithstanding the other provisions of this Agreement, the obligation of Bank to make the loans hereunder shall cease and all remaining principal, interest and other charges and fees due with respect to the Loans and the Notes shall be immediately due and payable by Borrower at any time UPON DEMAND BY BANK, provided Bank shall be required to give to Borrower one hundred and eighty (180) days prior notice of said demand. Said demand shall be given in accordance with the provisions of Section 12.5 hereof regarding notices. The notice provisions of this Section 2.1.7 shall apply only in the case of a demand not accompanied by an Event of Default, it being understood that upon the occurrence of an Event of Default no such demand shall be required nor shall any notice be given in connection with acceleration or the exercise of Bank's rights and remedies hereunder except as expressly set forth in Section 10 hereof.

Line of Credit Loan. (a) Subject to and upon the terms and conditions of this Agreement and so long as no Event of Default has occurred, up to the Advance Expiration Date (defined below), Bank Lender will make a revolving line of credit loan (“‘‘Line of Credit”’’) to Borrower. The Line of Credit shall not exceed Twenty-Five Twenty Million and 00/100 Dollars ($25,000,00020,000,000.00) (the “‘‘Maximum Loan Amount”’’). (b) Subject to the terms and conditions of this Agreement, principal may be advanced, repaid repaid, and readvanced re-advanced from time-to-time until March 25August 1, 2009 2007 (the “‘‘Advance Expiration Date”’’), which date may be extended by a written agreement of Bank Lender and Borrower. The principal of each Advance shall be due and payable forty-five (45) days following the Disbursement Date (the °Repayment Date”); provided that all All amounts outstanding under the Line of Credit shall be due and payable on the earliest to occur of: (i) the date on which the Borrower has received funding of Capital Calls totaling ninety percent (90%) of the Capital CommitmentsAugust 1, or (ii) May 9, 2009 2007 (the “‘‘Maturity Date”’’). (c) Borrower may obtain advances of principal under the Line of Credit (“‘‘Advances”’’) from time to time upon the oral or written request to Bank Lender of Borrower or a Designated Representative of Borrower. Any request for an Advance shall be made at least one (1) Business Day prior to the requested date for such Advance, specifying the amount of the requested Advance. Bank Lender shall render monthly statements of amounts owing by Borrower under this Agreement, including statements of all principal, interest, fees and Bank Lender Expenses owing, and such statement shall be presumed to be correct and accurate and constitute an account stated between Borrower and Bank Lender unless, within thirty (30) days after receipt thereof by Borrower, Borrower shall deliver to BankLender, by registered or certified mail, at Bank’s Lender's place of business indicated in Exhibit A, written objection thereto specifying the alleged error or errors contained in such statement. (d) Borrower hereby expressly authorizes Bank Lender to rely on any request for an Advance made by any Designated Representative so long as the proceeds of the Advance are deposited by Bank Lender into Borrower’s Account identified on Exhibit A. Borrower agrees that it, solely, shall bear the risk that any such Advance was not so authorized. All Advances shall be conclusively presumed to have been made for the benefit of Borrower when said Advances are deposited into Borrower’s Account. (e) The terms of the Line of Credit shall be reflected in and incorporated into a separate promissory note, which shall be subject to the terms of this Agreement. Interest on the Advances shall accrue as specified in the Note. Borrower hereby agrees to make payment on the Advances (principal and interest) as specified in the Note.