Common use of Revolving Advances; Advance Limit Clause in Contracts

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time or from time to time during the Term and so long as no Event of Default has occurred and is continuing, BACC may, in its sole and absolute discretion, make Advances in an amount up to (a) eighty percent (80%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) fifty percent (50%) of the aggregate value of the Eligible Inventory plus ten percent (10%) of the aggregate value of the Slow Moving Inventory or (2) initially Two Hundred Fifty Thousand Dollars ($250,000.00); provided, however, that (a) in no event shall the aggregate amount of the outstanding Advances be greater than, at any time, the amount of Six Hundred Fifty Thousand Dollars ($650,000.00) (the Advance Limit) and provided further that (b) the maximum amount of Advances against Eligible Inventory and Slow Moving Inventory shall not exceed initially sixty percent (60%) of the total Advances and which percentage will reduce two percent (2%) per month commencing on October 1, 1998 and by 2% on the first day of each month thereafter until the percentage equals thirty six percent (36%) and (c) the maximum dollar amount of Advances against Eligible Inventory and Slow Moving Inventory shall decrease by Five Thousand Dollars ($5,000.00) per month commencing on October 1, 1998 and on the same day of each month thereafter until the maximum amount is reduced to One Hundred Seventy Five Thousand Dollars ($175,000).

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time or from time to time during the Term and so long as no Event of Default has occurred and is continuing, BACC may, in its sole and absolute discretion, make Advances in an amount up to (a) eighty percent (80%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) fifty percent (50%) of the aggregate value of the Eligible Inventory plus ten percent (10%) of the aggregate value of the Slow Moving Inventory or (2) initially Two Hundred Fifty Thousand Dollars ($250,000.00); provided, however, that (a) in no event shall the aggregate amount of the outstanding Advances be greater than, at any time, the amount of Six Five Hundred Fifty Thousand Dollars ($650,000.00500,000.00) (the Advance Limit) and provided provide further that (b) the maximum amount of it Advances against Eligible Inventory and Slow Moving Inventory shall not exceed initially sixty percent (60%) of the total Advances and which percentage will reduce two percent (2%) per month commencing on October 1, 1998 and by 2% on the first day of each month thereafter until the percentage equals thirty six percent (36%) and (c) the maximum dollar amount of Advances against Eligible Inventory and Slow Moving Inventory shall decrease by Five Thousand Dollars ($5,000.00) per month commencing on October 1, 1998 and on the same day of each month thereafter until the maximum amount is reduced to One Hundred Seventy Five Thousand Dollars ($175,000).