Events of Default Clause Example from Business Contracts

Events of Default. Each and any of the following shall constitute a default and, after expiration of the Grace Period, if any, shall constitute an "Event of Default" hereunder: (a) the nonpayment of principal, interest, or any other costs or expenses promptly when due of any amount payable under this Note; (b) any other failure of the Borrower to observe or perform any covenant set forth in this Note or in the Warrant issued to Lender on the date hereof (other than a payment default described above), which failure... is not cured within thirty (30) days (the "Grace Period") of Borrower's receipt of a written notice that such failure exists and is continuing, and should it not be cured within the Grace Period, it shall constitute an Event of Default under this Note; (c) if Borrower shall commence any case, proceeding or other action: (i) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, liquidation, dissolution, composition or other relief with respect to it or its debts; or (ii) seeking appointment of a receiver, trustee, custodian or other similar official for it or for all or any substantial part of its property, or the Borrower shall make a general assignment for the benefit of its creditors; or (iii) there shall be commenced against the Borrower any case, proceeding or other action of a nature referred to above or seeking issuance of a warrant of attachment, execution, distraint or similar process against all or any substantial part of its property, which case, proceeding or other action results in the entry of any order for relief or remains undismissed, undischarged or unbonded for a period of one hundred twenty (120) days; (d) any representation or warranty made by the Borrower under this Note shall prove to have been incorrect in any material respect when made; or (e) the sale of all or substantially all of the assets, or change in controlling ownership (i.e., change in excess of 50% the Borrower's equity voting interest) or the dissolution, liquidation, merger, consolidation, or reorganization of Borrower without the Lender's prior written consent. View More