Devaluation Reserve Clause Samples

Devaluation Reserve. (a) As from the date on which Constellium France transfers to the Factor Receivables held against Airbus Operations SAS arising from any commercial contract other than an airware contract (the “Airbus Receivables”), a devaluation reserve (the “Devaluation Reserve”) shall be constituted by the Factor in respect of such Airbus Receivables in order to cover the Factor against additional set-off risk if, with respect to any calendar month during which Airbus Receivables have been transferred to the Factor, the Metal Floating Price is below the Metal Invoicing Price (the positive difference between the Metal Floating Price and the Metal Invoicing Price being referred to herein as the “Metal Price Devaluation”). (b) Within five (5) Business Days (the “Devaluation Reserve Calculation Date”) following the last Business Day of each calendar month during which the Devaluation Reserve is required to be constituted pursuant to sub-paragraph (a) above (the “Devaluation Reserve Reference Month”), Constellium France shall communicate to the Factor (i) the Metal Floating Price and (ii) the turnover (chiffres d’affaires) and related metal tonnage carried out by Constellium France with Airbus Operations SAS (excluding those corresponding to supplies under the airware contracts) during the Devaluation Reserve Reference Month, as well as the Metal Invoicing Price on the basis of which such turnover has been invoiced to Airbus Operations SAS. To the extent a Metal Price Devaluation appears on the Devaluation Reserve Calculation Date, the Factor shall constitute the Devaluation Reserve on such date by way of debit from the relevant Current Account by an amount equal to the Metal Price Devaluation, as applied to the metal tonnage communicated by Constellium France for the relevant Devaluation Reserve Reference Month. (c) The Devaluation Reserve shall be restituted to Constellium France by way of credit from the relevant Current Account on the immediately following Devaluation Reserve Calculation Date (at which date the Devaluation Reserve (if any) for the following Devaluation Reserve Reference Month shall be calculated and constituted in accordance with the foregoing). (d) Any event taken into account in any Reserve constituted pursuant to this Clause 8.5.3 shall be taken into account only once, and only in respect of such reserve (to the exclusion of the Holdback Reserve or the Specific Reserve (as the case may be)).