FINANCE CHARGE SHALL BE
PAYABLE ON THE FIRST DAY OF NEXT RECONCILIATION PERIOD.
2.2.4
COLLATERAL HANDLING FEE. BORROWER WILL PAY TO BANK A MONTHLY
COLLATERAL HANDLING FEE FOR EACH FINANCED RECEIVABLE OUTSTANDING (THE
"COLLATERAL HANDLING FEE") AS FOLLOWS:
(A) IF BORROWER HAS AN ADJUSTED QUICK
RATIO GREATER THAN 2.00 TO 1.00, THE COLLATERAL HANDLING FEE SHALL EQUAL 0.25%
PER MONTH OF THE FINANCED RECEIVABLE BALANCE OUTSTANDING DURING THE APPLICABLE
RECONCILIATION PERIOD; OR (B) IF BORROWER HAS AN ADJUSTED QUICK RATIO LESS THAN
OR EQUAL TO 2.00 TO 1.00, THE COLLATERAL HANDLING FEE SHALL EQUAL 0.50% PER
MONTH OF THE FINANCED RECEIVABLE BALANCE DURING THE APPLICABLE RECONCILIATION
PERIOD.
THE COLLATERAL HANDLING FEE IS PAYABLE WHEN THE ADVANCE MADE BASED ON
SUCH FINANCED RECEIVABLE IS PAYABLE IN ACCORDANCE WITH SECTION 2.3 HEREOF.
IN
COMPUTING COLLATERAL HANDLING FEES UNDER THIS AGREEMENT, ALL COLLECTIONS
RECEIVED BY BANK SHALL BE DEEMED APPLIED BY BANK ON ACCOUNT OF OBLIGATIONS THREE
(3) BUSINESS DAYS AFTER RECEIPT OF THE COLLECTIONS.
AFTER AN EVENT
2
OF DEFAULT, THE COLLATERAL HANDLING FEE WILL INCREASE AN ADDITIONAL 0.50%
EFFECTIVE IMMEDIATELY UPON SUCH EVENT OF DEFAULT.
2.2.5
INTENTIONALLY OMITTED.
2.2.6
ACCOUNTING.
AFTER EACH RECONCILIATION PERIOD, BANK WILL PROVIDE AN
ACCOUNTING OF THE TRANSACTIONS FOR THAT RECONCILIATION PERIOD, INCLUDING THE
AMOUNT OF ALL FINANCED RECEIVABLES, ALL COLLECTIONS, ADJUSTMENTS, FINANCE
CHARGES, COLLATERAL HANDLING FEE, ADMINISTRATIVE FEE AND THE FACILITY FEE.
IF
BORROWER DOES NOT OBJECT TO THE ACCOUNTING IN WRITING WITHIN THIRTY (30) DAYS IT
SHALL BE CONSIDERED ACCURATE.
ALL FINANCE CHARGES AND OTHER INTEREST AND FEES
ARE CALCULATED ON THE BASIS OF A 360 DAY YEAR AND ACTUAL DAYS ELAPSED.
2.2.7
DEDUCTIONS.
BANK MAY DEDUCT FEES, FINANCE CHARGES, ADVANCES WHICH
BECOME DUE PURSUANT TO SECTION 2.3, AND OTHER AMOUNTS DUE PURSUANT TO THIS
AGREEMENT FROM ANY ADVANCES MADE OR COLLECTIONS RECEIVED BY BANK.
2.2.8
LOCKBOX; ACCOUNT COLLECTION SERVICES.
AS AND WHEN DIRECTED BY BANK
FROM TIME TO TIME, AT BANK'S OPTION AND AT THE SOLE AND EXCLUSIVE DISCRETION OF
BANK (REGARDLESS OF WHETHER AN EVENT OF DEFAULT HAS OCCURRED), BORROWER SHALL
DIRECT EACH ACCOUNT DEBTOR (AND EACH DEPOSITORY INSTITUTION WHERE PROCEEDS OF
ACCOUNTS ARE ON DEPOSIT) TO REMIT PAYMENTS WITH RESPECT TO THE ACCOUNTS TO A
LOCKBOX ACCOUNT ESTABLISHED WITH BANK OR TO WIRE TRANSFER PAYMENTS TO A CASH
COLLATERAL ACCOUNT THAT BANK CONTROLS (COLLECTIVELY, THE "LOCKBOX").
IT WILL BE
CONSIDERED AN IMMEDIATE EVENT OF DEFAULT IF THE LOCKBOX IS NOT SET-UP AND
OPERATIONAL WITHIN FORTY-FIVE (45) DAYS FROM THE DATE OF SUCH DIRECTION BY
BANK.
UNTIL SUCH LOCKBOX IS ESTABLISHED, THE PROCEEDS OF THE ACCOUNTS SHALL BE
PAID BY THE ACCOUNT DEBTORS TO AN ADDRESS CONSENTED TO BY BANK.
UPON RECEIPT BY
BORROWER OF SUCH PROCEEDS, THE BORROWER SHALL IMMEDIATELY TRANSFER AND DELIVER
SAME TO BANK, ALONG WITH A DETAILED CASH RECEIPTS JOURNAL.
PROVIDED NO EVENT OF
DEFAULT EXISTS OR AN EVENT THAT WITH NOTICE OR LAPSE OF TIME WILL BE AN EVENT OF
DEFAULT, WITHIN THREE (3) DAYS OF RECEIPT OF SUCH AMOUNTS BY BANK, BANK WILL
TURN OVER TO