Common use of Compromises and Collection of Collateral Clause in Contracts

Compromises and Collection of Collateral. Each Grantor and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to any Receivable. In view of the foregoing, each Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default exists, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action.

Compromises and Collection of Collateral. Each Grantor The Grantors and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the ReceivablesAccounts, that certain of the Receivables Accounts may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable Account may exceed the amount that reasonably may be expected to be recovered with respect to any Receivablean Account. In view of the foregoing, each Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default existshas occurred and is continuing, and subject to applicable law, compromise with the obligor on any ReceivableAccount, accept in full payment of any Receivable Account such amount as the Administrative Agent in its sole discretion shall determine or abandon any ReceivableAccount, and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action.

Compromises and Collection of Collateral. Each Grantor Company and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the Receivables, that certain of the Receivables may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable may exceed the amount that reasonably may be expected to be recovered with respect to any a Receivable. In view of the foregoing, each Grantor Company agrees that the Administrative Agent may at any time and from time to time, if an Event of Default existshas occurred and is continuing, compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount as the Administrative Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action.

Compromises and Collection of Collateral. Each Grantor The Grantors and the Administrative Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors with respect to certain of the ReceivablesAccounts, that certain of the Receivables Accounts may be or become uncollectible in whole or in part and that the expense and probability of success in litigating a disputed Receivable Account may exceed the amount that reasonably may be expected to be recovered with respect to any Receivablean Account. In view of the foregoing, each Grantor agrees that the Administrative Agent may at any time and from time to time, if an Event of Default existshas occurred and is continuing and the Secured Obligations have been accelerated in accordance with the Credit Agreement, and subject to applicable law, compromise with the obligor on any ReceivableAccount, accept in full payment of any Receivable Account such amount as the Administrative Agent in its sole discretion shall determine or abandon any ReceivableAccount, and any such action by the Administrative Agent shall be commercially reasonable so long as the Administrative Agent acts in good faith based on information known to it at the time it takes any such action.