Common use of Standard of Materiality Clause in Contracts

Standard of Materiality. As a general rule, the Agent and each Lender hereby acknowledges that any single business location of the Borrower, with the exception of its corporate headquarters in Beloit, Wisconsin, is not material to the operations of the Borrower, such that the loss of assets at, or the closure of, any single business location will not be deemed by the Agent or any Lender to constitute a material adverse occurrence; provided, that the foregoing shall not be construed as an acknowledgment by the Agent or any Lender that if a single business location of the Borrower generates liabilities that are binding upon the Borrower, as a whole, such liability will not be deemed by the Agent or any Lender to constitute a material adverse occurrence.