Common use of Revolving Advances; Advance Limit Clause in Contracts

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time from and after the date hereof until the Termination Date, 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) seventy five percent (75%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) twenty five percent (25%) of the aggregate value of the Eligible Inventory or (2) Four Hundred Thousand Dollars ($400.000.00) (such lesser of (1) or (2) is hereinafter the "Inventory Advance Rate") or (3) thirty percent (30%) of the aggregate outstanding principal amount of Advances under this Section 2.1; including the Advance in question if made, provided, however, that in no event shall the aggregate amount of the outstanding Advances under the Revolving Credit Facility be greater than, at any time, the amount of One Million Seven Hundred Thousand Dollars ($1,700,000.00) (said dollar limit the Advance Limit). BACC may create reserves against, or reduce its advance percentages based on Eligible Accounts or Eligible Inventory without declaring an Event of Default if it determines, in its good faith discretion, that such reserves or reduction is necessary, including, without limitation, to protect its interest in the Collateral and/or against diminution in the value of any Collateral, and/or to insure the prospect of payment or performance by Borrower of its Obligations to BACC are not impaired.

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time from and after the date hereof until the Termination Date, and so long as no Event of Default has occurred and is continuingoccurred, BACC may, in its sole and absolute discretion, make Advances in an amount up to (a) seventy five eighty percent (7580%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) twenty five fifty percent (2550%) of the aggregate value of the Eligible Inventory or (2) Four Six Hundred Thousand Dollars ($400.000.00) (such lesser of (1) or (2) is hereinafter the "Inventory Advance Rate"600,000) or (3) thirty sixty percent (3060%) of the aggregate outstanding principal amount of Advances under this Section 2.1; including the Advance in question if made, provided, however, that in no event shall the aggregate amount of the outstanding Advances under the Revolving Credit Facility be greater than, at any time, the amount of One Million Seven Nine Hundred Ten Thousand Dollars ($1,700,000.001,910,000) (said dollar limit the Advance Limit). BACC may create reserves against, or reduce its advance percentages based on Eligible Accounts or and Eligible Inventory without declaring an Event of Default if it determines, in its good faith discretion, that such reserves or reduction is necessary, including, without limitation, to protect its interest in the Collateral and/or against diminution in the value of any the Collateral, and/or to insure the prospect of payment or performance by Borrower of its Obligations to BACC are not impaired. Borrower acknowledges it has requested that BACC enter into an indemnification agreement in favor of Bay Business Credit and agrees that any sums paid to Bay Business Credit thereunder shall be deemed to be Advances under this Section 2.1.

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time from and after the date hereof until the Termination Date, 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) seventy five percent (75%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) twenty five percent (25%) of the aggregate value of the Eligible Inventory or (2) Four Two Hundred Thousand Dollars ($400.000.00200,000.00) (such lesser of (1) or (2) is hereinafter referred to as the "Inventory Advance Rate") " or (3) thirty percent (30%) of the aggregate outstanding principal amount of Advances under this Section 2.1; 2.1 including the Advance in question if made, ; provided, however, that in no event shall the aggregate amount of the outstanding Advances under the Revolving Credit Facility be greater than, at any time, the amount of One Million Seven Five Hundred Thousand Dollars ($1,700,000.001,500,000.00) (said dollar limit limit, the Advance Limit). BACC may create reserves against, or reduce its advance percentages based on upon Eligible Accounts or and/or Eligible Inventory without declaring an Event of Default if it determines, in its good faith discretion, that such reserves or reduction is are necessary, including, without limitation, to protect its interest in the Collateral Collateral, and/or against diminution in the value of any Collateral, and/or to insure the prospect of payment or performance by Borrower of its Obligations to BACC are not impaired. Borrower acknowledges it has requested that BACC enter into an indemnification agreement in favor of Wachovia and agrees that any sums paid by BACC to Wachovia thereunder shall be deemed to be Advances under this Section 2.1.

Revolving Advances; Advance Limit. Upon the request of Borrower, Borrower made at any time from and after the date hereof until the Termination Date, and so long as no Event of Default has occurred and is continuingoccurred, BACC Lender may, in its sole and absolute discretion, make Advances to Borrower under a revolving credit facility (the Revolving Credit Facility) in an amount up to to: (a) seventy eighty-five percent (7585%) of the aggregate outstanding amount of Eligible AccountsAccounts (the Eligible Accounts Loan Value), so long as Dilution is less than three percent (3%); plus Optical Cable – Loan and Security Agreement – EXECUTION VERSION (b) the lesser of lowest of: (1i) twenty (x) an amount up to thirty-five percent (2535%) of the aggregate value of the Eligible Inventory or Inventory1; (2ii) Four Hundred Thousand Five Million Dollars ($400.000.005,000,000); and (iii) (such lesser of (1) or (2) is hereinafter the "Inventory Advance Rate") or (3) thirty an amount not to exceed one hundred percent (30100%) of the aggregate then outstanding principal amount Eligible Accounts Loan Value; (c) minus the Availability Block (the sum of Advances under this Section 2.1amounts of clauses (a) and (b) less (c) being, the Borrowing Base); including the Advance in question if made, provided, however, that in no event at any time shall the maximum aggregate principal amount of the outstanding Advances under the Revolving Credit Facility be greater than, at any time, the amount of One exceed Eighteen Million Seven Hundred Thousand Dollars ($1,700,000.0018,000,000) (said dollar limit being, the Advance Limit). BACC Lender may create reserves against, or reduce its advance percentages based on Eligible Accounts or Eligible Inventory without declaring an Event of Default if it Lender determines, in its good faith discretion, that such reserves or reduction is are necessary, including, without limitation, to protect its Lender's interest in the Collateral and/or against diminution in the value of any Collateral, Collateral and/or to insure that the prospect of payment or performance by Borrower of its Obligations to BACC Lender are not impaired.

Revolving Advances; Advance Limit. Upon the request of Borrower, made at any time or from and after time to time during the date hereof until the Termination Date, 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 the sum of (a) seventy eighty-five percent (7585%) of the aggregate outstanding amount of Eligible Accounts, plus (b) the lesser of (1) twenty seventy-five percent (2575%) of the aggregate value of the Eligible Inventory Purchase Orders or (2) Four Five Hundred Thousand Dollars ($400.000.00) (such lesser of (1) or (2) is hereinafter the "Inventory Advance Rate"500,000) or (3) thirty an amount not to exceed one hundred percent (30100%) of the aggregate cost of inventory for such Eligible Purchase Orders or (4) an amount equal to twenty percent (20%) of the outstanding principal amount of Advances under this Section 2.1against Eligible Accounts; including the Advance in question if made, provided, however, that in no event shall the aggregate amount of the outstanding Advances under the Revolving Credit Facility be greater than, at any time, the amount of One Two Million Seven Five Hundred Thousand Dollars ($1,700,000.002,500,000) (said dollar limit the Advance Limit). Notwithstanding the foregoing, no Advances will be made against Eligible Purchase Orders until such time as Borrower has received $1,000,000 in the form of a cash capital infusion or subordinated debt and, provided further, that: (i) in the event of a cash capital infusion, BACC may create reserves against, or reduce its advance percentages based on Eligible Accounts or Eligible Inventory without declaring an Event of Default if it determinesshall have received evidence satisfactory to it, in its good faith sole and absolute discretion, that such reserves cash capital infusion has been made, or reduction is necessary, including, without limitation, to protect its interest (ii) in the Collateral and/or against diminution in event of subordinated debt, BACC shall have received a subordination agreement from the value subordinated debt holder, with the form and content of any Collateral, and/or such subordination agreement to insure the prospect of payment or performance by Borrower of its Obligations be acceptable to BACC are not impairedin its sole and absolute discretion.