Common use of Establishment of Covenants Clause in Contracts

Establishment of Covenants. The Company acknowledges that the foregoing covenants were established by the Company and the Banks on the basis of financial information and forecasts provided to the Banks by the Company in connection with the Banks' evaluation and underwriting of the Line of Credit after leaving a margin in favor of the Company which the Company and the Banks have mutually agreed is fair. Accordingly, the Company and the Banks have mutually agreed that the Company's failure to comply with the express terms of any financial covenant shall be deemed material for the purposes of this Agreement.

Establishment of Covenants. The Company acknowledges that the foregoing covenants were established by the Company and the Banks Bank on the basis of financial information and forecasts provided to the Banks Bank by the Company in connection with the Banks' Bank's evaluation and underwriting of the Line of Credit after leaving a margin in favor of the Company which the Company and the Banks Bank have mutually agreed is fair. Accordingly, the Company and the Banks Bank have mutually agreed that the Company's failure to comply with the express terms of any financial covenant shall be deemed material for the purposes of this Agreement.