Bank of America Borrowing Base Agreement
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1. BORROWING BASE The aggregate principal amount of all amounts from time
to time advanced pursuant to the terms of that promissory note dated March 29,
2000 in the principal amount of $1,000,000.00 (the "Note") shall not exceed the
Maximum Amount.
"Maximum Amount" shall mean the lesser of $1,000,000.00 or the Borrowing
Base. The "Borrowing Base" at any time, shall be equal to 50% of Eligible
Accounts Receivable:
As used herein, "Eligible Accounts Receivable" shall mean all accounts
receivable of RARA, RAWOW, BAC, XXXX, and PRAC (collectively, the "A/R Owners")
which have been created in the ordinary course of business and upon which A/R
Owners'right to receive payment is absolute and not contingent upon the
fulfillment of any condition whatsoever, and shall not include:
any account which is unpaid more than 90 days from the invoice date
thereof;
any accounts subject to any cash or non-cash offset.;
any contra accounts;
and any account on which the Bank is not or does not continue to be,
in the Bank's sole discretion, satisfied with the credit standing of the
Customer of A/R Owners in relation to the amount of credit extended.
"Customers" shall mean the account debtors obligated on the Accounts
Receivables.
"Accounts Receivables" shall mean all of the A/R Owners' accounts,
instruments, contract rights, chattel paper, document, and general intangibles
arising from the sale of goods and/or the rendition of services by the A/R
Owners in the ordinary course of business, and the proceeds thereof and all
security and guaranties therefore, whether now existing or hereafter created,
and all returned, reclaimed or repossessed goods, and all books and records
pertaining to the foregoing.
2. ADVANCES. The amounts of advances under the Note shall be determined in
the sole discretion of the Bank consistent with the value of the Eligible
Accounts Receivable, taking into account all fluctuations of the value thereof
in light of the Bank's experience and sound business principles. The Bank shall
be under no obligation to make any advance to Borrower in excess of the
limitations stated above.
3. REPORTING. In addition to any reporting requirements required under the
Loan Agreement to which this Borrowing Base Addendum is attached, the Borrower
will submit the following in form and substance satisfactory to Bank:
ACCOUNTS RECEIVABLE AGING. Not later than 45 days after and as of the
end of each quarter, a listing of accounts receivable aged from date of
invoice.
BORROWING BASE. Not later than 45 days after and as of the end of each
quarter, a completed borrowing base certificate.
4. MANDATORY PAYMENT In the event the aggregate principal outstanding
balance of advances under the Note exceed the Maximum Amount, Borrower shall
immediately and without notice or demand of any kind, make such payments as
shall be necessary to reduce the principal balance of the Note below the Maximum
Amount.
Borrower: Rent-A-Wreck of America, Inc.
By: /s/ Xxxxxxx X. Xxxx Xx. (Seal)
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Name:
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Title:
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Borrower: Rent-A-Wreck One Way, Inc.
By: /s/ Xxxxxxx X. Xxxx, Xx. (Seal)
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Name:
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Title:
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Borrower: Xxxxx American Corporation
By: /s/ Xxxxxxx X. Xxxx, Xx. (Seal)
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Name:
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Title:
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Borrower: Rent-A-Wreck Leasing, Inc.
By: /s/ Xxxxxxx X. Xxxx, Xx. (Seal)
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Name:
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Title:
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Borrower: PRICELESS Rent-A-Car, Inc.
By: /s/ Xxxxxxx X. Xxxx, Xx. (Seal)
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Name:
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Title:
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Bank:
Bank of America
By: /s/
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Name: Xxxxxxx Xxxxx
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Title: Vice President
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BANK OF AMERICA BORROWING BASE CERTIFICATE
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Status as of_____________,2000
In accordance with the terms of the Borrowing Base Agreement attached as Exhibit
A to that Loan Agreement dated March ___, 2000, by and between Rent-A-Wreck of
America, Inc., Rent-A-Wreck One Way, Inc., Xxxxx American Corporation,
Rent-A-Wreck Leasing, Inc., PRICELESS Rent-A-Car, Inc., and Bank of America,
N.A., we hereby represent and warrant as follows:
1. Total Accounts Receivable $
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2. Less ineligible accounts receivable
(as set forth in the Borrowing
Base Agreement) -$
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3. Net Accounts Receivable $
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4. a. 50% of Eligible Accounts
Receivable x$
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b. Total Available $
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5. Maximum loan amount $1,000,000.00
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6. Outstanding balance as of report
date $1,000,000.00(L/C)
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7. Bank of America Certificate of
Deposit $ 600,000.00
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8. Available for further advances
(lesser of line 4b plus line 7 or $
line 5 minus line 4b plus line 7)
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Borrower:
Rent-A-Wreck of America, Inc.
By: /s/ Mitra Ghahramanlou
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Rent-A-Wreck One Way, Inc.
By: /s/ Xxxxxxx X. Xxxx, Xx.
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Xxxxx America Corporation
By: /s/ Xxxxxxx X. Xxxx, Xx.
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Rent-A-Wreck Leasing, Inc.
By: /s/ XXXXXXX X. XXXX, XX.
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PRICELESS Rent-A-Car, Inc
By: /s/ XXXXXXX X. XXXX, XX.
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