Common use of Compromise, Adjustment or Settlement Clause in Contracts

Compromise, Adjustment or Settlement. The Administrative Agent shall be entitled at its option to participate in any compromise, adjustment or settlement in connection with any Event of Loss under any policy or policies of insurance or any proceeding with respect to any Event of Taking of Property of the Borrower or otherwise in excess of $2,000,000 and the Borrower shall within five Business Days after the Administrative Agent’s request reimburse the Administrative Agent for all reasonable out-of-pocket expenses (including reasonable attorneys’ and experts’ fees) incurred by the Administrative Agent in connection with such participation. The Borrower shall not make any compromise, adjustment or settlement in connection with any such claim without (i) the approval of the Administrative Agent (A) in the case of amounts in excess of $1,000,000 or (B) upon and during the continuance of an Event of Default and (ii) the approval of the Majority Lenders, in the case of amounts in excess of $2,500,000.