Common use of Bankruptcy Exception Clause in Contracts

Bankruptcy Exception. The Events of Default set out in clauses (g), (h) and (i) of Section 11.1 above shall not apply to any case involving a Subsidiary that is not an Obligor or a Subsidiary Guarantor, where (a) the events which would otherwise meet the requirements of clauses (g), (h) or (i) above have occurred solely as the result of a reasonable strategic business decision, by the Obligors or other parent of the applicable Subsidiary, (b) the applicable Subsidiary has a trailing 12 month average EBITDA of less than two percent (2%) of Consolidated EBITDA prior to such strategic business decision, and (c) no other Default or Event of Default has occurred and is continuing, or would result from taking any such course of action; provided, however, that the foregoing exception to the Events of Default in clauses (g), (h) and (i) above will only be permitted with respect to any Subsidiary, or group of Subsidiaries, up to a maximum aggregate amount of U.S.$10,000,000 (in EBITDA) during the term of this Agreement.