Common use of Maximum Principal Balance Clause in Contracts

Maximum Principal Balance. The aggregate outstanding principal ------------------------- balance of the Loans shall at no time exceed $20,000,000, less the principal amount of debt contributed in respect of option exercises under Section 3.9 (the "Maximum Principal Balance"); provided, however, that Newco shall have no obligation to fund, nor shall Company have any right to borrow hereunder, during any fiscal year, any portion of the Development Loan unless Newco and the Company have approved a budget setting forth the use of the proceeds of such funding. Notwithstanding the foregoing, the Company may use proceeds of, and Newco shall be obligated to fund without regard to any budget and/or approval thereof by Newco, the Development Loan for general corporate purposes in an amount not to exceed $500,000 from the Closing through the first anniversary of the Closing, $1,000,000 from the Closing through the second anniversary of the Closing, $1,500,000 from the Closing through the third anniversary of the Closing and $2,000,000 from the Closing through the fourth anniversary of the Closing ("Committed Loans").

Maximum Principal Balance. The aggregate outstanding principal ------------------------- balance of the Loans shall at no time exceed $20,000,000, less the principal amount of debt contributed in respect of option exercises under Section 3.9 (the "Maximum Principal Balance"); provided, however, that the aggregate outstanding principal balance of the Development Loan and the Special Development Loan shall at no time exceed $8,000,000; provided, further, that Newco shall have no obligation to fund, nor shall the Company have any right to borrow hereunder, during any fiscal year, any portion of the Development Loan unless Newco and the Company have approved a budget setting forth the use of the proceeds of such funding. Notwithstanding the foregoingsecond proviso above, the Company may use proceeds of, and Newco shall be obligated to fund without regard to any budget and/or approval thereof by Newco, the Development Loan for general corporate purposes in an amount not to exceed $500,000 from the Closing through the first anniversary of the Closing, $1,000,000 from the Closing through the second anniversary of the Closing, $1,500,000 from the Closing through the third anniversary of the Closing and $2,000,000 from the Closing through the fourth anniversary of the Closing ("Committed Loans").