Common use of Compromise of Accounts Receivable Clause in Contracts

Compromise of Accounts Receivable. Compromise or adjust any material amount of the Accounts Receivable (or extend the time of payment with respect to any material amount of the Accounts Receivable), or accept any material returns of Inventory or grant any material discounts, allowances or credits or permit any of its Subsidiaries that are Loan Parties to do so other than as may be approved by the Administrative Agent in its sole discretion or (x) in the ordinary course of its business or (y) any such action outside the ordinary course of business made in the commercially reasonable business judgment of any Borrower exercised in good faith provided that (1) no such non-ordinary course of business action may involve any amount exceeding $5,000,000 in any one case and (2) in the event any one or more action(s) occurring during any period between delivery of Borrowing Base Certificates that involves an amount of $500,000 individually or in the aggregate in respect of Eligible Accounts Receivable that were included in the most recently delivered Borrower Base Certificate, Borrowers will deliver an updated Borrowing Base Certificate to Administrative Agent within five (5) Business Days.