Material Impairment

Material Impairment. For purposes of Sections 3.14 and 10.1(d) ------------------------- means any of the following: (a) the collection of the Accounts during any thirty (30) day period diminishes by twenty-five percent (25.0%) or more as compared with the previous thirty (30) day period, and is less than $1,600,000 in total collections. (b) Accounts Turnover increases by fifty percent (50%) or more within a... thirty (30) day period as compared with the previous thirty-day period. "Accounts Turnover" means the number derived by dividing the aggregate amount of all of Borrower's Accounts outstanding at the beginning of a month by the aggregate amount of proceeds of all Accounts received during that month, and multiplying the result by the number of days in that month. -4- (c) Borrower's EBITDA during any of the first four (4) months following the date of this Agreement is less than $550,000, or thereafter, Borrower's EBITDA is less than $675,000 during two consecutive months. (d) Borrower uses a substantial amount of funds from the business for a non-business purpose. View More

Material Impairment. For purposes of Sections 3.14. and 10.1. (d) include, without limitation: (i) the collection of the Accounts during any thirty (30) day period is less than $1,000,000.00; (ii) Total Accounts are less than $3,000,000.00 at any time; (iii) Borrower's consolidated financial statement reflects a net worth less than $17,500,000.00; (iv) Borrower uses in excess of $50,000.00 from the business for a non-business purpose.