Reserve/Reserve Elimination Date Sample Clauses

Reserve/Reserve Elimination Date. The borrowing availability under the Revolving Loan shall be reduced by a $50,000.00 reserve (the “Reserve”). The Reserve shall be eliminated on the date the first annual $50,000.00 payment is made by Borrower to Regal-Beloit Corporation pursuant to that certain Settlement Agreement dated December 2, 1996 by and among Borrower, Regal-Beloit Corporation, Seller and the Guarantors (the “Reserve Elimination Date”). Proceeds of the Revolving Loan and the Term Loan will be used solely for the purpose of providing financing for the Acquisition and working capital for the Borrower in the Borrower’s ordinary course of business.