Common use of Performance Target Clause in Contracts

Performance Target. (i) Satisfaction of the Performance Target during any of the Vesting Periods described in (a) above shall require that the Company remain in compliance during the entire fiscal period immediately prior to each respective vesting date with the all of the financial covenants contained in each of the Company’s senior credit facility agreements with each of the Company’s senior secured lenders. In that regard, the financial covenants that shall be required to be met during any fiscal period shall be those contained in the credit facility agreements then in effect, so long as any modifications to such covenants are approved by the Company’s Board of Directors (“Board”) in connection with the approval of any amendment to the Company’s existing credit facility agreements or the adoption of new credit facility agreements that replace the Company’s existing credit facility agreements. Waivers of covenant compliance by the Company’s lenders for any period covered by this Agreement shall constitute satisfaction of such covenants for purposes of this Section 2(b). (ii) If the Company and its senior lenders enter into a forbearance agreement during any of the fiscal periods described above, it shall not be deemed to constitute satisfaction of the Performance Target. However, if after entering into any such forbearance agreement, the Company and its senior lenders thereafter reach an agreement pursuant to which the Company regains good standing and compliance with the financial covenants under its credit facility agreements (or the Company refinances such credit facility agreements and thereby regains good standing and compliance with the financial covenants under its credit facility agreements), then the Performance Targets shall be deemed to have been met during the forbearance period.