Read the financial covenant below and answer both parts to the question:

A) Please describe what this financial covenant is designed to do. Essentially explain what economic behavior its designed to address and how:

B) What type of risk is this covenant designed to manage? Liquidity or solvency risk? Explain why:

Certain borrowings contain a consolidated leverage covenant. The covenant states the Company's leverage ratio is not to exceed 3.75 to 1.00. The leverage ratio is defined as the ratio of total indebtedness (the sum of Short-term borrowings, Current portion of long-term debt and Long-term debt) at the reporting date to consolidated "Earnings Before Interest, Taxes, Depreciation and Amortization" (EBITDA) for the 12-month period ended on the same date. Refer to the "Non-GAAP Financial Measures" section in Item 7 for a reconciliation of EBITDA to net income. At December 31, 2021, the Company was in compliance with the covenant. The Company's Notes, Debentures and revolving credit agreement contain various default and cross-default provisions. In the event of default under any one of these arrangements, acceleration of the maturity of any