Common use of Second Equipment Advances Clause in Contracts

Second Equipment Advances. (a) Through January 15, 2006, Bank will make advances (each a “Second Equipment Advance” and, collectively, “Second Equipment Advances”) not exceeding the aggregate of $500,000.00 (the “Second Committed Equipment Line”), but only up to $175,000 may be used to purchase trailers, and the remaining $375,000 may be used to purchase forklifts, as long as, prior to any such Second Equipment Advance, Palfinger Inc. or any other supplier of any forklifts has provided Bank an acceptable agreement to purchase or repurchase such goods after any Event of Default has occurred and is continuing. The Second Equipment Advances may only be used to finance or refinance Equipment purchased prior to January 15, 2006 and on or after 90 days before the date of such Second Equipment Advance and may not exceed 100% of the equipment invoice excluding taxes, shipping, warranty charges, freight discounts and installation expense. Each Second Equipment Advance must be for a minimum of $20,000. The number of Second Equipment Advances is limited to 4. (b) Interest accrues from the date of each Second Equipment Advance on the outstanding principal balance thereof at a per annum rate equal to the U.S. Treasury note per annum yield to maturity for a term of 36 months as quoted in The Wall Street Journal, fixed as of the date such Second Equipment Advance is made, plus 450 basis points (4.50%) and is payable monthly on the first day of each month. Second Equipment Advances are payable in 36 equal monthly installments of principal, plus accrued interest, beginning on the first day of the month following the date such Second Equipment Advance is made and on the first day of each month thereafter until paid. Second Equipment Advances when repaid may not be reborrowed. (c) To obtain an Second Equipment Advance, Borrower must notify Bank (the notice is irrevocable) by facsimile no later than 12:00 p.m. Pacific time 1 Business Day before the day on which the Second Equipment Advance is to be made. The notice in the form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the invoice for the Equipment being financed. 3.2 Section 6.7 (Financial Covenants). Section 6.7 is amended in its entirety and replaced with the following:

Second Equipment Advances. (a) Through January 15Subject to and upon the terms and conditions of this Agreement, 2006at any time commencing on June 21, 2002 through the Second Equipment Availability End Date, Bank will agrees to make advances (each a “"Second Equipment Advance” " and, collectively, “the Second Equipment Advances”") not exceeding the aggregate of $500,000.00 (the “Second Committed Equipment Line”), but only up to $175,000 may be used to purchase trailers, and . To evidence the remaining $375,000 may be used to purchase forklifts, as long as, prior to any such Second Equipment AdvanceAdvance or Second Equipment Advances, Palfinger Inc. or any other supplier Borrower shall deliver to Bank, at the time of any forklifts has provided Bank each Second Equipment Advance request, an acceptable agreement invoice for the Equipment to purchase or repurchase such goods after any Event of Default has occurred and is continuingbe purchased. The Second Equipment Advances may only shall be used only to finance purchase or refinance Equipment acceptable to Bank, purchased prior to January 15, 2006 and on or after 90 ninety (90) days before prior to June 21, 2002, and shall not exceed one hundred percent (100%) of the date invoice amount of such Second Equipment Advance and may not exceed 100% of the equipment invoice approved from time to time by Bank, excluding taxes, shipping, warranty charges, freight discounts and installation expense, provided, however, that software, taxes, shipping and other "soft cost", acceptable to Bank, may constitute up to 25% of each Second Equipment Advance. Each Second Equipment Advance must shall be for a minimum in an amount of no less than $20,000500,000. The maximum number of Second Equipment Advances is limited to 4may not exceed 10. (b) Interest accrues from the date of each Second Equipment Advance on the outstanding principal balance thereof at a per annum rate equal to the U.S. Treasury note per annum yield to maturity for a term of 36 months as quoted in The Wall Street Journal, fixed as of the date such Second Equipment Advance is made, plus 450 basis points (4.50%) and is payable monthly on the first day of each month. Second Equipment Advances are payable in 36 equal monthly installments of principal, plus accrued interest, beginning on the first day of the month following the date such Second Equipment Advance is made and on the first day of each month thereafter until paid. Second Equipment Advances when repaid may not be reborrowed. (c) To obtain an a Second Equipment Advance, Borrower must notify Bank (the notice is irrevocable) by facsimile no later than 12:00 p.m. noon. Pacific time 1 two (2) Business Day before the day on which the Second Equipment Advance is to be madeFunding Date. The notice in the form of Exhibit B (Payment/Advance Form) must be signed by a Responsible Officer or designee and include a copy of the invoice for the Equipment being financed. 3.2 (c) Borrower shall repay each Second Equipment Advance in 36 equal monthly installments of principal plus accrued interest as of the Payment Date. Each monthly payment for each Second Equipment Advance (collectively, "Scheduled Payments") shall be due an payable on the Payment Date following the Funding Date with respect to such Second Equipment Advance and continuing thereafter during the Repayment Period on each Payment Date. All unpaid principal and accrued interest is due and payable in full on the last Payment Date with respect to such Second Equipment Advance. Payments received after 12:00 noon Pacific time are considered received at the opening of business on the next Business Day. An Equipment Advance may only be prepaid in accordance with Section 6.7 2.1.5 (Financial Covenantsf) and 2.1.5 (g). . (d) Borrower will pay interest on the Payment Dates at the per annum rate of interest set forth in Section 6.7 2.3 (a). (e) At any time, provided no Event of Default has occurred and is continuing, Borrower may prepay any Second Equipment Advance by providing Bank with written notice two (2) days prior to any such prepayment and immediately paying to Bank: (i) all outstanding principal to the Second Equipment Advance being prepaid, (ii) all accrued unpaid interest for the Second Equipment Advance being prepaid, to the date of the prepayment, and (iii) all other sums, if any, that shall have become due and payable with respect to the Second Equipment Advance being prepaid. (f) If the Second Equipment Advances are accelerated following the occurrence of an Event of Default, then Borrower will immediately pay to Bank (i) all outstanding principal with respect to all Second Equipment Advances, (ii) all accrued unpaid interest with respect to all Second Equipment Advances, including the default rate of interest, to the date of the prepayment, and (iii) all other sums, if any, that shall have become due and payable with respect to any Second Equipment Advance." (3) Section 2.3 (a) is hereby amended in its entirety and replaced with by adding the following:following subsection (iii), immediately after subsection (ii):

Second Equipment Advances. (a) Through January 15At any time from the date hereof through DECEMBER 19, 20061997 (the "Second Equipment Availability End Date"), Bank will make Borrower may from time to time request advances (each a “"Second Equipment Advance” and, " and collectively, “the "Second Equipment Advances”") from Bank in an aggregate amount not exceeding to exceed the aggregate of $500,000.00 (the “Second Committed Equipment Line”), but only up to $175,000 may be used to purchase trailers, and . To evidence the remaining $375,000 may be used to purchase forklifts, as long as, prior to any such Second Equipment AdvanceAdvance or Second Equipment Advances, Palfinger Inc. or any other supplier Borrower shall deliver to Bank, at the time of any forklifts has provided Bank each Second Equipment Advance request, a Payment/Advance Form in substantially the form of Exhibit B hereto accompanied by an acceptable agreement invoice for the Equipment to purchase or repurchase such goods after any Event of Default has occurred and is continuingbe financed. The Second Equipment Advances may only shall be used only to finance or refinance Equipment purchased prior to January 15after September 30, 2006 1996 and on or after 90 days before shall not exceed SEVENTY-FIVE PERCENT (75%) of the date invoice amount of such Second Equipment Advance and may not exceed 100% of the equipment invoice approved from time to time by Bank, excluding taxes, shipping, warranty charges, freight discounts and installation expense. Each Second Equipment Advance must be for a minimum of $20,000. The number of Second Equipment Advances is limited to 4. (b) Interest accrues on Second Equipment Advances shall accrue from the date of each Second Equipment Advance at the rate specified in Section 2.3(a), and shall be payable on the outstanding principal balance thereof at a per annum rate equal to the U.S. Treasury note per annum yield to maturity for a term of 36 months as quoted in The Wall Street Journal, fixed as of the date such Second Equipment Advance is made, plus 450 basis points (4.50%) and is payable monthly on the first day Payment Date of each monthmonth through NOVEMBER, 1997. Any Second Equipment Advances that are outstanding on DECEMBER 20, 1997 will be payable in 36 THIRTY SIX (36) equal monthly installments of principal, plus all accrued and unpaid interest, beginning on the first day of the month following the date such Second Equipment Advance is made and on the first day Payment Date of each month thereafter until paid. Second Equipment Advances when repaid may not be reborrowedstarting with JANUARY 1997. (c) To When Borrower desires to obtain an a Second Equipment Advance, Borrower must shall notify Bank (the which notice is shall be irrevocable) by facsimile transmission to be received no later than 12:00 3:00 p.m. Pacific time 1 one (1) Business Day before the day on which the Second Equipment Advance is to be made. The Such notice shall be substantially in the form of Exhibit B (Payment/Advance Form) must B. The notice shall be signed by a Responsible Officer or designee and include a copy of the invoice for the Equipment being to be financed. 3.2 Section 6.7 (Financial Covenants). Section 6.7 is amended in its entirety and replaced with the following: