Revolving Borrowing Base Clause Samples
Revolving Borrowing Base. (a) Permit at any time the sum of the Total Outstandings to exceed the Revolving Advance Limit, unless the Company shall have immediately complied with Section 2.05(c) with respect to such excess; or
(b) substantially change the method of valuation of the Collateral with respect to the Revolving Borrowing Base from that used by the Company and its Subsidiaries on the Closing Date.
Revolving Borrowing Base. As of the date hereof, the Revolving Borrowing Base is $[-], based on the product of 80% and the sum of:
(i) $[-], constituting the aggregate amount of Eligible Receivables as of the date hereof as set forth on the most recently delivered Accounts Report delivered pursuant to Section 6.1(n) of the Credit Agreement and attached hereto as Annex I; plus
(ii) $[-], constituting the aggregate amount of accrued Receivables meeting the criteria set forth in the definition of “Eligible Receivables” due from and within 120 days of the date hereof and not included on the Accounts Report; plus
(iii) $[-], constituting 30% of the aggregate value of Eligible Inventory as of the date hereof as set forth on the most recently delivered Inventory Log delivered pursuant to Section 6.1(o) of the Credit Agreement and attached hereto as Annex II, but not more than $2,500,000 in any event; less
(iv) $[-], constituting the reserve for accrued royalties payable on licensed content pursuant to the definition of Distributed and Licensed Content or Owned Library Content; less
(v) $[-], constituting the reserve for expected returns of entertainment content sales by the Loan Parties equal to 25% of the amount shown as Eligible Receivables on the Accounts Report from sale of entertainment content at such date of determination.