CWTR » Topics » 2.01 Committed Loans; Reserves.

These excerpts taken from the CWTR 10-K filed Apr 1, 2009.
2.01        Committed Loans; Reserves. (a) Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans (each such loan, a “Committed Loan”) to the Borrowers from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed at any time outstanding the lesser of (x) the amount of such Lender’s Commitment, or (y) such Lender’s Applicable Percentage of the Borrowing Base; subject in each case to the following limitations:

 

(i)            after giving effect to any Committed Borrowing, the Total Outstandings shall not exceed the lesser of (A) the Aggregate Commitments, or (B) the Borrowing Base;

 

(ii)           after giving effect to any Committed Borrowing, the aggregate Outstanding Amount of the Committed Loans of any Lender, plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations, plus such Lender’s Applicable Percentage of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s Commitment;

 

(iii)          the Outstanding Amount of all L/C Obligations shall not at any time exceed the Letter of Credit Sublimit; and

 

(iv)          after giving effect to all Credit Extensions, no Overadvance shall exist.

 

Within the limits of each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrowers may borrow under this Section 2.01, prepay under Section 2.05, and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or LIBO Rate Loans, as further provided herein.

 

(b)           The following are the Reserves which may be established as of the Closing Date:

 

(i)            rent (an Availability Reserve): An amount equal to two (2) months’ rent for all of the Borrowers’ leased locations in each Landlord Lien State, other than leased locations with respect to which the Collateral Agent has received a Collateral Access Agreement in form reasonably satisfactory to the Collateral Agent;

 

(ii)           Customer Credit Liabilities (an Availability Reserve);
 
(iii)          self funded health insurance (an Availability Reserve);
 
(iv)          Shrink (an Inventory Reserve); and
 
(v)           any additional Reserves described in the Borrowing Base Certificate delivered on the Closing Date.

 

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(c)           The Administrative Agent shall have the right, at any time and from time to time on or after the Closing Date in its discretion to establish new, or modify or eliminate any existing, eligibility criteria or Reserves.

 

2.01        Committed Loans;
Reserves.
(a) Subject to the terms and conditions
set forth herein, each Lender severally agrees to make loans (each such loan, a
Committed Loan”) to the Borrowers from time to time, on any Business
Day during the Availability Period, in an aggregate amount not to exceed at any
time outstanding the lesser of (x) the amount of such Lender’s Commitment,
or (y) such Lender’s Applicable Percentage of the Borrowing Base; subject
in each case to the following limitations:



 



(i)            after giving effect to any
Committed Borrowing, the Total Outstandings shall not exceed the lesser of (A) the
Aggregate Commitments, or (B) the Borrowing Base;


 



(ii)           after giving effect to any Committed
Borrowing, the aggregate Outstanding Amount of the Committed Loans of any
Lender, plus such Lender’s Applicable Percentage of the Outstanding
Amount of all L/C Obligations, plus such Lender’s Applicable Percentage
of the Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment;


 



(iii)          the Outstanding Amount of all L/C
Obligations shall not at any time exceed the Letter of Credit Sublimit; and


 



(iv)          after giving effect to all Credit
Extensions, no Overadvance shall exist.


 



Within the limits of each Lender’s
Commitment, and subject to the other terms and conditions hereof, the Borrowers
may borrow under this Section 2.01, prepay under Section 2.05,
and reborrow under this Section 2.01.  Committed Loans may be Base Rate Loans or
LIBO Rate Loans, as further provided herein.



 



(b)           The following are the
Reserves which may be established as of the Closing Date:


 



(i)            rent (an Availability Reserve): An
amount equal to two (2) months’ rent for all of the Borrowers’ leased
locations in each Landlord Lien State, other than leased locations with respect
to which the Collateral Agent has received a Collateral Access Agreement in
form reasonably satisfactory to the Collateral Agent;


 



(ii)           Customer Credit Liabilities (an
Availability Reserve);


 


(iii)          self funded health insurance (an
Availability Reserve);


 


(iv)          Shrink (an Inventory
Reserve);
and


 


(v)           any additional Reserves described in
the Borrowing Base Certificate delivered on the Closing Date.


 



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(c)           The Administrative Agent
shall have the right, at any time and from time to time on or after the Closing
Date in its discretion
to
establish new, or modify or eliminate any existing, eligibility criteria or
Reserves
.


 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Apr 1, 2009
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