Common use of Changes in Representations and Warranties Clause in Contracts

Changes in Representations and Warranties. If either Seller or Purchaser discovers on or before the Closing that any representation or warranty made by it or the other party was or becomes not true and correct in any material respect, it shall so notify the other party in writing. The representations and warranties made in this Agreement shall be deemed to be modified by any matter contained in such notice. In the case of any such change in the representations or warranties by Seller, if the cumulative changes so made would adversely affect the fair market value of the Assets by 0.5% or more of the Cash Purchase Price, Purchaser may object thereto by written notice to Seller within ten days after receipt of the notice. If such objection notice is not given within the ten day period, or the cumulative changes do not have such adverse effect, then such change shall not give rise to any right or remedy. If such objection notice is timely given and the effect of the cumulative changes on the fair market value of the Assets exceeds such amount, and Seller determines that it cannot cure such adverse effect prior to the Closing by using commercially reasonable efforts, then the parties shall negotiate in good faith a reduction of the Purchase Price to fairly reflect the impact of the change on the fair market value of the Assets. In the event that the parties are unable to agree on a reduction of the Purchase Price prior to the Closing, then the parties agree to submit the matter to binding arbitration under Article 28 for resolution after the Closing.

Changes in Representations and Warranties. If either Seller Sellers or Purchaser discovers on or before the Closing that any representation or warranty made by it or the other party was or becomes not true and correct in any material respect, it shall so notify the other party in writing. The representations and warranties made in this Agreement shall be deemed to be modified by any matter contained in such notice. In the case of any such change in the representations or warranties by SellerSellers, if the cumulative changes so made would adversely affect the fair market value of the Assets by 0.5% or more of the Cash Purchase Price, Purchaser may object thereto by written notice to Seller Sellers within ten days after receipt of the notice. If such objection notice is not given within the ten day period, or the cumulative changes do not have such adverse effect, then such change shall not give rise to any right or remedy. If such objection notice is timely given and the effect of the cumulative changes on the fair market value of the Assets exceeds such amount, and Seller determines Sellers determine that it they cannot cure such adverse effect prior to the Closing by using commercially reasonable efforts, then the parties shall negotiate in good faith a reduction of the Purchase Price to fairly reflect the impact of the change on the fair market value of the Assets. In the event that the parties are unable to agree on a reduction of the Purchase Price prior to the Closing, then the parties agree to submit the matter to binding arbitration under Article 28 the Commercial Arbitration Rules of the American Arbitration Association for resolution after the Closing.