Availability Triggering Event Clause Samples
An Availability Triggering Event clause defines specific conditions or incidents that activate certain contractual rights or obligations related to the availability of a service, product, or resource. For example, this clause might specify that if a system experiences downtime beyond a set threshold, the provider must offer service credits or take remedial action. Its core function is to establish clear criteria for when availability-related remedies or responses are required, ensuring both parties understand what constitutes a significant service disruption and how it will be addressed.
Availability Triggering Event. If an Availability Triggering Event or Event of Default shall have occurred and shall be continuing, permit the ABL Fixed Charge Coverage Ratio, calculated as of the last day of the preceding fiscal quarter for which financial statements have been delivered to the Administrative Agent pursuant to Section 5.04(b), to be less than 1.00 to 1.00 (which calculation shall be made on a Pro Forma Basis to take into account any events described in the definition of “Pro Forma Basis” occurring during the period of four fiscal quarters ending on the last day of such preceding fiscal quarter).
Availability Triggering Event. If an Availability Triggering Event or Event of Default shall have occurred and shall be continuing, permit the ABL Fixed Charge Coverage Ratio, calculated as of the last day of the preceding fiscal quarter for which financial statements have been delivered to the Administrative Agent pursuant to Section 5.04(b), to be less than 1.00 to 1.00 (which calculation shall be made on a Pro Forma Basis to take into account any events described in the definition of “Pro Forma Basis” occurring during the period of four fiscal quarters ending on the last day of such preceding fiscal quarter); provided, that solely for the purpose of determining the occurrence of an Availability Triggering Event under this Section 6.11, the term “Threshold Amount” shall mean 10.0% of the lesser of (i) the Revolving Facility Commitments and (ii) the Borrowing Base, but notwithstanding the foregoing, in no event shall such amount be less than $45,000,000, in each case as of any date of determination.
Availability Triggering Event. If an Availability Triggering Event or Event of Default shall have occurred and shall be continuing, permit the ABL Fixed Charge Coverage Ratio, calculated as of the last day of the preceding fiscal quarter for which financial statements have been delivered to the Administrative Agent pursuant to Section 5.04(b), to be less than 1.00 to 1.00 (which calculation shall be made on a Pro Forma Basis to take into account any events described in the definition of “Pro Forma Basis” occurring during the period of four fiscal quarters ending on the last day of such preceding fiscal quarter); provided, that solely for the purpose of determining the occurrence of an Availability Triggering Event under this Section 6.11, the term “