Common use of Reserves re Revolving Loans / Letters of Credit Clause in Contracts

Reserves re Revolving Loans / Letters of Credit. Lender may, with or without notice to Borrowing Agent, from time to time establish and revise reserves against the Borrowing Base or the Maximum Revolving Facility Amount in such amounts and of such types as Lender deems appropriate in its Permitted Discretion (“Reserves”); provided that the amount of any Reserve shall have a reasonable relationship to the event, condition, circumstance or fact that is the basis for such Reserve and shall not be duplicative of any other Reserve established and currently maintained. Such Reserves shall be available for Borrowing Agent to view in ABLServe simultaneously with the imposition thereof; provided, that, unless an Event of Default has occurred and is continuing, Lender shall provide email notice advising Borrowing Agent of such Reserves two (2) Business Days prior to the imposition of such Reserves (during which period (x) Lender shall be available to discuss any such proposed Reserves with the Borrowing Agent to afford the Borrowing Agent an opportunity to take such action as may be required so that the event, condition or circumstance that is the basis for such Reserve no longer exists in the manner and to the extent satisfactory to the Lender in its Permitted Discretion and (y) Borrowers may not obtain any new Revolving Loan or Letter of Credit to the extent that, after giving pro forma effect to such proposed Reserves, such Revolving Loan or Letter of Credit would cause the outstanding balance of all Revolving Loans and the Letter of Credit Balance to exceed the lesser of (a) the Maximum Revolving Facility Amount minus Reserves minus the Availability Block and (b) the Borrowing Base). Without limiting the foregoing, references to Reserves in this Agreement shall include the Dilution Reserve. In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate Lender to make advances to pay such liability or otherwise obligate Lender with respect thereto.

Reserves re Revolving Loans / Letters of Credit. Lender Agent may, with or without notice to Borrowing Agent, from time to time time, establish and revise reserves against the Borrowing Base or the Maximum Revolving Facility Amount in such amounts and of such types as Lender Agent deems appropriate in its Permitted Discretion (“Reserves”); provided that that, the amount of any Reserve established by Agent shall have a reasonable relationship to the event, condition, circumstance other circumstance, or fact that is the basis for such Reserve and Reserve. To the extent that an event, condition or circumstance as to any eligible asset is addressed pursuant to the treatment thereof within the applicable definition of such terms, Agent shall not be duplicative of any other also establish a Reserve established and currently maintainedto address the same event, condition or circumstance. Such Reserves shall be available for Borrowing Agent to view in ABLServe Passport 6.0 simultaneously with the imposition thereof; provided, that, unless an Event of Default has occurred and is continuing, Lender Agent shall provide email notice advising Borrowing Agent of such Reserves two (2) Business Days prior to the imposition of such Reserves (during which period (x) Lender Agent shall be available to discuss any such proposed Reserves with the Borrowing Agent to afford the Borrowing Agent an opportunity to take such action as may be required so that the event, condition or circumstance that is the basis for such Reserve no longer exists in the manner and to the extent satisfactory to the Lender Agent in its Permitted Discretion and (y) Borrowers may not obtain any new Revolving Loan or Letter of Credit to the extent that, after giving pro forma effect to such proposed Reserves, such Revolving Loan or Letter of Credit would cause the outstanding balance of all Revolving Loans and the Letter of Credit Balance to exceed the lesser of (a) the Maximum Revolving Facility Amount minus Reserves minus the Availability Block and (b) the Borrowing Base). Without limiting the foregoing, references to Reserves in this Agreement shall include the Dilution Reserve. In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate any Lender to make advances to pay such liability or otherwise obligate any Lender with respect thereto.

Reserves re Revolving Loans / Letters of Credit. Lender may, with or without notice to Borrowing Agent, from time to time establish and revise reserves Reserves against the Borrowing Base or and/or the Maximum Revolving Facility Amount in such amounts and of such types as Lender deems appropriate in its Permitted Discretion (“Reserves”); provided that the amount of any Reserve shall have a reasonable relationship to the event, condition, circumstance or fact that is the basis for such Reserve and shall not be duplicative of any other Reserve established and currently maintainedDiscretion. Such Reserves shall be available for Borrowing Agent to view in ABLServe Passport 6.0 simultaneously with the imposition thereof; provided, that, unless an Event of Default has occurred and is continuing, Lender shall provide email notice advising Borrowing Agent of such Reserves two (2) Business Days prior to the imposition of such Reserves (during which period (x) Lender shall be available to discuss any such proposed Reserves with the Borrowing Agent to afford the Borrowing Agent an opportunity to take such action as may be required so that the event, condition or circumstance that is the basis for such Reserve no longer exists in the manner and to the extent satisfactory to the Lender in its Permitted Discretion and (y) Borrowers may not obtain any new Revolving Loan or Letter of Credit to the extent that, after giving pro forma effect to such proposed Reserves, such Revolving Loan or Letter of Credit would cause the outstanding balance of all Revolving Loans and the Letter of Credit Balance to exceed the lesser of (a) the Maximum Revolving Facility Amount minus Reserves minus the Availability Block and (b) the Borrowing Base). The amount of any Reserve established by the Lender shall have a reasonable relationship to the event, condition or other matter which is the basis for such Reserve as determined by the Lender (provided that the circumstances, conditions, events or contingencies existing or arising prior to the First Amendment Effective Date and known to the Lender, in each case, prior to the First Amendment Effective Date, shall, to the extent not reserved for as of the First Amendment Effective Date, not be the basis for the establishment of any Reserves after the First Amendment Effective Date, unless such circumstances, conditions, events or contingencies shall have changed since the First Amendment Effective Date) in good faith and to the extent that such Reserve is in respect of amounts that may be payable to third parties. Without limiting the foregoing, references to Reserves in this Agreement shall include the Dilution Reserve. In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate Lender to make advances to pay such liability or otherwise obligate Lender with respect thereto.

Reserves re Revolving Loans / Letters of Credit. Lender may, with or without notice to Borrowing Agent, Agent may from time to time establish and revise reserves against the Borrowing Base or and/or the Maximum Revolving Facility Amount in such amounts and of such types as Lender Agent deems appropriate in its Permitted Discretion (“Reserves”); provided that that, the amount of any Reserve Reserves established by Agent shall have a reasonable relationship to the event, condition, other circumstance or fact that is the basis for such Reserve and Reserve. To the extent that an event, condition or circumstance as to any eligible asset has been addressed pursuant to the treatment thereof within the applicable definition of such terms, Agent shall not be also establish a duplicative of any other Reserve established and currently maintainedto address the same event, condition or circumstance. Such Reserves shall be available for Borrowing Agent to view in ABLServe Passport 6.0 simultaneously with the imposition thereof; provided, that, unless an Event of Default has occurred and is continuing, Lender Agent shall provide email notice advising Borrowing Agent of such Reserves two (2) Business Days prior to the imposition of such Reserves (during which period (x) Lender Agent shall be available to discuss any such proposed Reserves with the Borrowing Agent to afford the Borrowing Agent an opportunity to take such action as may be required so that the event, condition or circumstance that is the basis for such Reserve no longer exists in the manner and to the extent satisfactory to the Lender Agent in its Permitted Discretion and (y) Borrowers may not obtain any new Revolving Loan or Letter of Credit to the extent that, after giving pro forma effect to such proposed Reserves, such Revolving Loan or Letter of Credit would cause the outstanding balance of all Revolving Loans and the Letter of Credit Balance to exceed the lesser of (a) the Maximum Revolving Facility Amount minus Reserves minus the Availability Block and (b) the Borrowing Base). Without limiting the foregoing, references to Reserves in this Agreement shall include the Dilution Reserve. In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate any Lender to make advances to pay such liability or otherwise obligate any Lender with respect thereto.

Reserves re Revolving Loans / Letters of Credit. Lender may, with or without notice to Borrowing Agent, from time to time establish and revise reserves against the Borrowing Base or and/or the Maximum Revolving Facility Amount in such amounts and of such types as Lender deems appropriate in its Permitted Discretion (“Reserves”); provided that the amount of any Reserve shall have a reasonable relationship to the event, condition, circumstance or fact that is the basis for such Reserve and shall not be duplicative of any other Reserve established and currently maintained. Such Reserves shall be available for Borrowing Agent to view in ABLServe Passport 6.0 simultaneously with the imposition thereof; provided, that, unless an Event of Default has occurred and is continuing, Lender shall provide email notice advising Borrowing Agent of such Reserves two (2) Business Days prior to the imposition of such Reserves (during which period (x) Lender shall be available to discuss any such proposed Reserves with the Borrowing Agent to afford the Borrowing Agent an opportunity to take such action as may be required so that the event, condition or circumstance that is the basis for such Reserve no longer exists in the manner and to the extent satisfactory to the Lender in its Permitted Discretion and (y) Borrowers may not obtain any new Revolving Loan or Letter of Credit to the extent that, after giving pro forma effect to such proposed Reserves, such Revolving Loan or Letter of Credit would cause the outstanding balance of all Revolving Loans and the Letter of Credit Balance to exceed the lesser of (a) the Maximum Revolving Facility Amount minus Reserves minus the Availability Block and (b) the Borrowing Base). Without limiting the foregoing, references to Reserves in this Agreement shall include the Dilution Reserve. In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate Lender to make advances to pay such liability or otherwise obligate Lender with respect thereto.. 1.3