Common use of Borrowing Base; Reserves Clause in Contracts

Borrowing Base; Reserves. The Borrowing Base shall be determined by Lender (including the eligibility of Accounts and Inventory) based on the most recent Borrowing Base Certificate delivered to Lender in accordance with Section 4.1(a) and such other information available to Lender. The Revolving Credit Loan shall be subject to Xxxxxx’s continuing right to withhold from Borrowing Availability reserves, and to increase and decrease such reserves from time to time, if and to the extent that in Lender’s good faith credit judgment such reserves are necessary, including to protect Lender’s interest in the Collateral or to protect Lender against possible non-payment of Accounts for any reason by Account Debtors or possible diminution of the value of any Collateral or possible non-payment of any of the Obligations or for any Taxes or in respect of any state of facts which could constitute a Default. Lender may, at its option, implement reserves by designating as ineligible a sufficient amount of Accounts or Inventory which would otherwise be Eligible Accounts or Eligible Inventory, as the case may be, so as to reduce the Borrowing Base by the amount of the intended reserves. For greater certainty, and without limiting the Lender’s ability to implement any other reserves, the Credit Parties agree that the lender shall withhold from Borrowing Availability a reserve in an amount (which may not be less than zero) equal to the aggregate amount of outstanding leases as of December 7, 2022, under the RBC Lease Facility as of the most recent appraisal accepted by the Lender, less (i) cash balance in the Reserve Account, and (ii) the aggregate final net orderly liquidation value (as determined by an appraisal firm acceptable to Lender) of the Equipment that is subject to a first priority perfected security interest in favour of the Lender.

Borrowing Base; Reserves. The Borrowing Base shall be determined by Lender ------------------------ (including the eligibility of Accounts and Inventory) based on the most recent Borrowing Base Certificate delivered to Lender in accordance with Section 4.1(a4.1(b) and such other information available to Lender. The Revolving Credit Loan shall be subject to Xxxxxx’s Lender's continuing right to withhold from Borrowing Availability reserves, and to increase and decrease such reserves from time to time, if and to the extent that in Lender’s 's good faith credit judgment such reserves are necessary, including to protect Lender’s 's interest in the Collateral or to protect Lender against possible non-payment of Accounts for any reason by Account Debtors or possible diminution of the value of any Collateral or possible non-payment of any of the Obligations or for any Taxes or in respect of any state of facts which could constitute a Default. Lender may, at its option, implement reserves by designating as ineligible a sufficient amount of Accounts or Inventory which would otherwise be Eligible Accounts or Eligible Inventory, as the case may be, so as to reduce the Borrowing Base by the amount of the intended reserves. For greater certaintyWithout in any way limiting Lender's rights to establish reserves as described in this Section 1. 12, and without limiting the Lender’s ability to implement any other reserves, the Credit Parties agree that the lender Lender shall withhold a reserve of $2,000,000 from Borrowing Availability until such time as Salix Ltd., Borrower and the other Subsidiaries of Salix Ltd. have achieved a reserve net profit on a consolidated basis in an amount five (which may not be less than zero5) equal consecutive months, as evidenced by Borrower's financial statements delivered to the aggregate amount of outstanding leases as of December 7, 2022, under the RBC Lease Facility as of the most recent appraisal accepted by the Lender, less (i) cash balance Lender in the Reserve Account, and (ii) the aggregate final net orderly liquidation value (as determined by an appraisal firm acceptable to Lender) of the Equipment that is subject to a first priority perfected security interest in favour of the Lenderaccordance with Section 4.1(d).

Borrowing Base; Reserves. The Borrowing Base shall be determined by Lender (including the eligibility of Accounts and Inventory) based on the most recent Borrowing Base Certificate delivered to Lender in accordance with Section 4.1(a4.1(b) and such other information available to Lender. The Without limiting any other rights and remedies of Lender hereunder or under the other Loan Documents, the Revolving Credit Loan shall be subject to Xxxxxx’s Lender's continuing right to withhold from Borrowing Availability reserves, and to increase and decrease such reserves from time to time, if and to the extent that in Lender’s good faith 's reasonable credit judgment such reserves are necessary, including to protect Lender’s 's interest in the Collateral or to protect Lender against possible non-payment of Accounts for any reason by Account Debtors or possible diminution of the value of any Collateral Inventory or possible non-payment of any of the Obligations or for any Taxes taxes or customs duties or in respect of any state of facts which could constitute a Default; provided, however, that Lender shall advise Borrower before taking any action to implement such reserves or to increase or decrease any reserves. Lender may, at its option, implement reserves by designating as ineligible a sufficient amount of Accounts or Inventory which would otherwise be Eligible Accounts or Eligible Inventory, as the case may be, so as to reduce the Borrowing Base by the amount of the intended reserves. For greater certainty, and without limiting the Lender’s ability Any actions taken by Lender pursuant to implement any other reserves, the Credit Parties agree that the lender this Section 1.13 shall withhold from Borrowing Availability a reserve in an amount (which may not be less than zero) equal to the aggregate amount of outstanding leases as of December 7, 2022, under the RBC Lease Facility as of the most recent appraisal accepted taken by the Lender, less (i) cash balance Lender in the Reserve Account, and (ii) the aggregate final net orderly liquidation value (as determined by an appraisal firm acceptable to Lender) exercise of the Equipment that is subject to a first priority perfected security interest in favour of the Lenderits reasonable credit judgement.

Borrowing Base; Reserves. The Borrowing Base shall be determined by Lender ------------------------ (including the eligibility of Accounts and Inventory) based on the most recent Borrowing Base Certificate delivered to Lender in accordance with Section 4.1(a4.1(b) and such other information available to Lender. The Revolving Credit Loan shall be subject to Xxxxxx’s Lender's continuing right to withhold from Borrowing Availability reserves, and to increase and decrease such reserves from time to time, if and to the extent that in Lender’s 's good faith credit judgment such reserves are necessary, including to protect Lender’s 's interest in the Collateral or to protect Lender against possible non-payment of Accounts for any reason by Account Debtors or possible diminution of the value of any Collateral or possible non-payment of any of the Obligations or for any Taxes or in respect of any state of facts which that could constitute a Default. Lender may, at its option, implement reserves by designating as ineligible a sufficient amount of Accounts or Inventory which that would otherwise be Eligible Accounts or Eligible Inventory, as the case may be, so as to reduce the Borrowing Base by the amount of the intended reserves. For greater certaintyIn addition to its other rights set forth in this Agreement, and without limiting Lender shall have the Lender’s ability right to implement any other reserves, adjust the Credit Parties agree that advance rate against Eligible Inventory from time to time based upon the lender shall withhold mix of Eligible Inventory as set forth in appraisals with respect thereto obtained from Borrowing Availability a reserve in an amount (which may not be less than zero) equal time to the aggregate amount of outstanding leases as of December 7, 2022, under the RBC Lease Facility as of the most recent appraisal accepted time by the Lender, less (i) cash balance in the Reserve Account, and (ii) the aggregate final net orderly liquidation value (as determined by an appraisal firm acceptable to Lender) of the Equipment that is subject to a first priority perfected security interest in favour of the Lender.

Borrowing Base; Reserves. The Borrowing Base shall be determined by Lender (including the eligibility of Accounts Accounts, Inventory and costs and expenses of Borrower respect of the EV Truck Inventory) based on the most recent Borrowing Base Certificate Certificates delivered to Lender in respect of the Operating Loan or the Contract Revolver Facility, as applicable, in accordance with Section 4.1(a) and such other information available to Lender. The Each of the Revolving Credit Loan and the Contract Revolver Facility shall be subject to XxxxxxLender’s continuing right to withhold from the Operating Loan Borrowing Availability or the Contract Revolver Borrowing Availability reserves, and to increase and decrease such reserves from time to time, if and to the extent that in Lender’s good faith credit judgment such reserves are necessary, including to protect LenderLxxxxx’s interest in the Collateral or to protect Lender against possible non-payment of Accounts for any reason by Account Debtors or possible diminution of the value of any Collateral or possible non-payment of any of the Obligations or for any Taxes or in respect of any state of facts which could constitute a Default. Lender may, at its option, implement reserves by designating as ineligible a sufficient amount of Accounts Accounts, Inventory or Inventory costs and expenses of Borrower in respect of the EV Truck Inventory, which would otherwise be Eligible Accounts Accounts, Eligible Inventory or Eligible InventoryPre-Shipment Costs, as the case may be, so as to reduce the Operating Loan Borrowing Base or the Contract Revolver Borrowing Base by the amount of the intended reserves. For greater certainty, and without limiting the Lender’s ability to implement any other reserves, the Credit Parties agree that the lender shall withhold from Borrowing Availability a reserve in an amount (which may not be less than zero) equal to the aggregate amount of outstanding leases as of December 7, 2022, under the RBC Lease Facility as of the most recent appraisal accepted by the Lender, less (i) cash balance in the Reserve Account, and (ii) the aggregate final net orderly liquidation value (as determined by an appraisal firm acceptable to Lender) of the Equipment that is subject to a first priority perfected security interest in favour of the Lender.