REVISED BORROWING BASE DEFINITION Clause Samples

REVISED BORROWING BASE DEFINITION. The definition of "Borrowing Base" as set forth in section 1 of the Loan Agreement is hereby amended to read as follows: "`Borrowing Base' means an amount equal to (i) Eighty percent (80%) of Eligible Accounts other than Eligible Service Accounts; PLUS (ii) the lesser of (A) Fifty percent (50%) of Eligible Service Accounts or (B) Forty percent (40%) of all Advances outstanding, PROVIDED that a Collateral audit, with results satisfactory to the Bank, shall be conducted and be determined to be satisfactory to the Bank, in its discretion, prior to the requesting or making of any Advances under this clause (ii); PLUS (iii) the lesser of (A) Thirty percent (30%) of the value of Borrower's Eligible Inventory (valued at the lower of cost or wholesale fair market value) or (B) Three Hundred Thousand Dollars ($300,000); With the above to be determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrower, PROVIDED that it is understood and agreed that the foregoing advance percentages may be modified based on audits of Collateral conducted on and after the date hereof."