Common use of Discretionary Rights Clause in Contracts

Discretionary Rights. The Advance Rates may be increased or decreased by Agent at any time and from time to time in the exercise of its Permitted Discretion. Each Borrower consents to any such increases or decreases and acknowledges that decreasing the Advance Rates or increasing or imposing Reserves may limit or restrict Advances requested by Borrowing Agent. Notwithstanding anything to the contrary herein, the amount of any such Reserve or change will have a reasonable relationship to the event, condition or other matter that is the basis for such Reserve or such change as determined by Agent in its Permitted Discretion. Prior to the occurrence of an Event of Default or Default, Agent shall give Borrowing Agent five (5) Business Days’ prior written notice of its intention to decrease the Advance Rates; provided, however, no Borrower nor any Guarantor shall have any right of action whatsoever against Agent for, and Agent shall not be liable for any damages resulting from, the failure of Agent to provide the prior notice contemplated in this sentence. In furtherance of the foregoing, Agent, in its Permitted Discretion, may further adjust the Formula Amount by applying percentages (known as “liquidity factors”) to Eligible IPM Receivables by payor class based upon the Borrowers’ actual recent collection history (over no more than a 12 month period) for each such payor class (e.g., Medicare, Medicaid, commercial insurance, etc.) in a manner consistent with Agent’s underwriting practices and procedures. Such liquidity factors may be adjusted by Agent throughout the Term as warranted by Agent’s underwriting practices and procedures and using its Permitted Discretion. The rights of Agent under this subsection are subject to the provisions of Section 16.2(b).

Discretionary Rights. The Advance Rates may be increased or decreased by Agent at any time and from time to time in the exercise of its Permitted Discretion. Each Borrower consents to any such increases or decreases and acknowledges that decreasing the Advance Rates or increasing or imposing Reserves may limit or restrict Advances requested by Borrowing Agent. Notwithstanding anything to the contrary herein, the amount of any such Reserve or change will have a reasonable relationship to the event, condition or other matter that is the basis for such Reserve or such change as determined by Agent in its Permitted Discretion. Prior to the occurrence of an Event of Default or Default, Agent shall give Borrowing Agent five (5) Business Days’ prior written notice of its intention to decrease the Advance Rates; provided, however, no Borrower nor any Guarantor shall have any right of action whatsoever against Agent for, and Agent shall not be liable for any damages resulting from, the failure of Agent to provide the prior notice contemplated in this sentence. In furtherance of the foregoing, Agent, in its Permitted Discretion, may further adjust the Formula Amount by applying percentages (known as “liquidity factors”) to Eligible IPM Receivables by payor class based upon the Borrowers’ actual recent collection history (over no more than a 12 month period) for each such payor class (e.g., Medicare, Medicaid, commercial insurance, etc.) taking into account factors which may reasonably be expected to result in the possible non-payment of accounts or possible diminution of the value of any Collateral, in each case, in a manner consistent with Agent’s underwriting practices and proceduresprocedures and based upon reasonably quantifiable factors. Such liquidity factors may be adjusted by Agent throughout the Term as warranted by Agent’s underwriting practices and procedures proceduresAgent in accordance with the foregoing criteria and using its Permitted Discretion. The rights of Agent under this subsection are subject to the provisions of Section 16.2(b).. [PHI Group] Revolving Credit, Term Loan and Security Agreement