SECOND AMENDMENT TO BUSINESS LOAN AGREEMENT (ASSET BASED)
Exhibit 6.40
Exhibit
10.40
| SECOND AMENDMENT TO BUSINESS LOAN AGREEMENT (ASSET BASED) |
|---|
| Principal $1,200,000.00 |
Loan Date 09-01-2003 |
Maturity 04-15-2004 |
Loan No |
Call / Coll |
Account 0000000000 |
Officer *** |
Initials |
|---|---|---|---|---|---|---|---|
| References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or
item. Any item above containing "***" has been omitted due to text length limitations. |
|||||||
| Borrower: | PORTLAND BREWING COMPANY 0000 XX 00XX XXXXXX XXXXXXXX, XX 00000 |
Lender: | Washington Mutual Bank Beaverton Commercial Banking Center 00000 XX Xxxxxx Xxxxxx, Xxxxx 000 Xxxxxxxxx, XX 00000 |
This SECOND AMENDMENT TO BUSINESS LOAN AGREEMENT (ASSET BASED) is attached to and by this reference made a part of the BUSINESS LOAN AGREEMENT (ASSET BASED) DATED SEPTEMBER 1, 2003 (the “Agreement’), executed in connection with a loan or other financial accommodations between WASHINGTON MUTUAL BANK (“Lender”) and PORTLAND BREWING COMPANY (“Borrower”).
The Agreement is amended as follows:
Page 6, under Definitions, Paragraph titled “Borrowing Base”, modify to read as follows:
The words “Borrowing Base” mean, as determined by Lender from time to time, the lesser of (1) $1,200,000.00 or (2) 80.000% of the aggregate amount of Eligible Accounts.
Beginning on October 31, 2003, the inventory advance will be incrementally decreased, as the following table shows:
| Date | Advance Rate | |
|---|---|---|
| Through 10/31/03 | 50.000% | |
| 11/01/03-11/30/03 | 40.000% | |
| 12/01/03-12/31/03 | 40.000% | |
| 01/01/04-01/31/04 | 40.000% | |
| 02/01/04-02/28/04 | 40.000% | |
| 03/01/04-03/21/04 | 40.000% | |
| 04/01/04-maturity | 40.000% |
All other terms and conditions of the Agreement remain in full force and effect.
THIS SECOND AMENDMENT TO BUSINESS LOAN AGREEMENT (ASSET BASED) DATED SEPTEMBER 1, 2003 IS EXECUTED ON MARCH 8, 2003.
BORROWER:
PORTLAND BREWING COMPANY
By: /s/ XXXXXXXXX XXXXXX
XXXXXXXXX XXXXXX, President of PORTLAND
BREWING COMPANY
LENDER:
WASHINGTON MUTUAL BANK
By: /s/ XXXXXXX XXXXX
Authorized Signer
