 What accounting principles do Restricted Subsidiaries follow?
Each Loan Party will, and will cause each Restricted Subsidiary to, pay its Taxes before the same shall become delinquent or in default, except where (i) (a) the validity or amount thereof is being contested in good faith by appropriate proceedings, (b) such Loan Party or Restricted Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, and (c) such liabilities would not result in aggregate liabilities in excess of $30,000,000 and none of the Collateral would become subject to forfeiture or loss as a result of the contest or (ii) the nonpayment of any Tax could not reasonably be expected to result in a Material Adverse Effect.
GAAP