Events of Default Clause Example from Business Contracts

Events of Default. If any of the following events take place prior to the earlier of (x) any conversion pursuant to Section 3 or (y) the payment in full of the obligations evidenced by this Note (each, an "Event of Default"), Payee at its option may, so long as such event exists, declare all principal and accrued and unpaid interest thereon and all other amounts payable under this Note immediately due and payable; provided, that this Note shall automatically become due and payable without any declaration in the ca...se of an Event of Default specified in clause (b), (c), (d), or (e), below: (a)The Company shall fail to pay when due any principal payment on the due date hereunder and such payment shall not have been made within two (2) Business Days thereafter; (b)The Company files a petition in voluntary bankruptcy or requests reorganization under any provision of any bankruptcy, reorganization or insolvency law or consents to the filing of any petition against it under such law; (c)Proceedings for the appointment of a receiver, trustee or custodian of the Company or of all or a substantial part of the assets or property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; (d)The Company makes a formal or informal general assignment for the benefit of its creditors, or admits in writing its inability to pay debts generally when they become due, or consents to the appointment of a receiver or liquidator of the Company or of all or substantially all of its property; 8 (e)The Company dissolves, liquidates or ceases business activity, or transfers all or substantially all of its assets to an unaffiliated third party; (f)Any material inaccuracy of any representation or warranty of the Company set forth in this Note; or (g)The Company materially breaches any of its agreements set forth in this Note, unless such breach is capable of cure, in which case the Company shall have fifteen (15) days to cure such breach following written notice from Payee. View More