Minimum Portfolio Standard Clause Samples

Minimum Portfolio Standard. (a) For purposes of counting Restricted Operating Company Subsidiaries in accordance with Section 5.16(b), (i) Non-Performing Subsidiaries shall not be taken into account and shall be treated as if a Transfer of all of the Capital Stock in such Non-Performing Subsidiary had occurred in accordance with Section 2.22(d), and (ii) only Restricted Operating Company Subsidiaries that were Restricted Operating Company Subsidiaries as of the Closing Date and any Replacement Collateral shall be taken into account. (b) At all times prior to the Termination Date, the Credit Parties shall collectively own a minimum of three Restricted Operating Company Subsidiaries that are Wholly Owned Subsidiaries of Borrowers, at least one of which must be a Large Restricted Operating Company Subsidiary and no more than one of which may be a Small Operating Subsidiary. At all times after any Additional Revolving Commitments have been made available after the Closing Date pursuant to Section 2.21, Borrowers shall own a minimum of four Restricted Operating Company Subsidiaries that are Wholly Owned Subsidiaries of Borrowers, at least two of which must be Large Restricted Operating Company Subsidiaries. The ownership requirements set forth in this Section 5.16 shall be referred to herein as a “Minimum Portfolio Standard”.