Common use of Other Reserves Clause in Contracts

Other Reserves. As determined by the Administrative Agent in its reasonable discretion exercised in a commercially reasonable manner, such amounts as the Administrative Agent may from time to time establish and revise (a) to reflect events, conditions, contingencies or risks which do, or which the Administrative Agent believes may reasonably be expected to, (i) adversely affect either (A) any Collateral, the rights of the Administrative Agent or any of the Lenders in any Collateral or its value or (B) the security interest and other rights of the Administrative Agent or any of the Lenders in the Collateral (including the enforceability, perfection and priority thereof) or (ii) adversely affect in any material respect the business or financial condition of any of the Borrowers individually or the Borrowers and their Subsidiaries taken as a whole or (b) to reflect the belief of the Administrative Agent that any Borrowing Base Report or other collateral report or financial information furnished (or not furnished) by or on behalf of the Borrowers to the Administrative Agent or any of the Lenders is or may have been incomplete, inaccurate or misleading in any material respect. The amount of any Other Reserves established or revised by the Administrative Agent shall in each case be based on the Administrative Agent's determination that such amount bears a reasonable relationship to the applicable event, condition, contingency or risk described in clause (a) of this definition or the applicable report or information described in clause (b) of this definition.