Reclassifiable Items Clause Samples
The "Reclassifiable Items" clause defines which items or assets within an agreement may be reclassified from one category to another during the contract term. In practice, this clause outlines the conditions and procedures under which such reclassification can occur, such as changes in use, status, or regulatory requirements. For example, inventory might be reclassified as obsolete stock or certain expenses may be reallocated to different budget categories. The core function of this clause is to provide flexibility and clarity in managing assets or items as circumstances change, ensuring that the contract remains accurate and relevant over time.
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Reclassifiable Items. For purposes of determining compliance with this Agreement, in the event that any Debt, Lien, Restricted Payment, Investment or Asset Disposition or portion thereof, as applicable, at any time meets the criteria of more than one of the categories of transactions or items permitted pursuant hereto (each of the foregoing, a “Reclassifiable Item”), Borrower, in its sole discretion, may, from time to time, divide, classify or reclassify such Reclassifiable Item (or portion thereof) under one or more clauses of each such Section and will only be required to include such Reclassifiable Item (or portion thereof) in any one category. It is understood and agreed that any Debt, Liens, Restricted Payment, Investment, Asset Disposition and/or Affiliate transaction need not be permitted solely by reference to one category of permitted Debt, Lien, Restricted Payment, Investment, Asset Disposition and/or hereunder, but may instead be permitted in part under any combination thereof or under any other available exception.
Reclassifiable Items. For purposes of determining compliance at any time with Sections 6.1 and 6.2, in the event that any Indebtedness or Lien or any portion thereof, as applicable, at any time meets the criteria of more than one of the categories of transactions or items permitted pursuant to any clause of such Section (or component definition) (other than pursuant to clauses (a), (b) and (u) of the definition of Permitted Indebtedness and clauses (a), (d) and (s)(solely with respect to clause (u) of the definition of Permitted Indebtedness) of the definition of Permitted Liens) (each of the foregoing, a “Reclassifiable Item”), the Parent, in its sole discretion, may, from time to time, divide, classify or reclassify such Reclassifiable Item (or any portion thereof) under one or more clauses of each such Section (or component definition) and will only be required to include such Reclassifiable Item (or any portion thereof) in any one category so long as such Reclassifiable Items would be permitted under such exception of such Section (or component definition) at the time of such redesignation.
Reclassifiable Items. For purposes of determining compliance at any time with Sections 7.1, 7.2 and 7.3, in the event that any Indebtedness, Encumbrance or Investment or portion thereof, as applicable, at any time meets the criteria of more than one of the categories of transactions or items permitted pursuant to any clause of such Section 7.1 (other than Section 7.1(a)), Section 7.2 or Section 7.3 (each of the foregoing, a “ Reclassifiable Item ”), the Company, in its sole discretion, may, from time to time, divide, classify or reclassify such Reclassifiable Item (or portion thereof) under one or more clauses of each such Section and will only be required to include such Reclassifiable Item (or portion thereof) in any one category. It is understood and agreed that any Indebtedness, Encumbrance or Investment need not be permitted solely by reference to one category of Indebtedness, Encumbrance or Investment under Sections 7.1, 7.2 and 7.3, but may instead be permitted in part under any combination thereof or under any other available exception.