Common use of Covenants and Defaults Clause in Contracts

Covenants and Defaults. Bank and Borrower hereby acknowledge and agree that (a) Borrower shall not amend, modify or supplement any of the Horizon/DBD Loan Documents (as hereinafter defined) in a manner which would (i) increase the principal amount of Horizon/DBD Loan, (ii) increase any applicable interest rate with respect to the Horizon/DBD Loan by more than 200 basis points (excluding increases based solely on (A) changes to the prime rate or any other index and (B) the imposition of the default rate of interest in accordance with the Horizon/DBD Loan Documents), (iii) change the terms of principal or interest repayment with respect to the Horizon/DBD Loan, (iv) change the payment schedule with respect to the Horizon/DBD Loan, (v) add express conditions that directly restrict the payment of the Obligations, (vi) change the maturity date with respect to the Horizon/DBD Loan from that set forth in the Horizon/DBD Loan Documents in effect as of the Horizon/DBD Loan Documents Execution Date (as defined below), or (vii) change the definition of Collateral set forth in the Horizon/DBD Loan Documents from the definition in effect as of the Horizon/DBD Loan Documents Execution Date (as defined below); (b) the occurrence of a default under the Horizon/DBD Loan Documents (if such default is not waived, or otherwise cured within any applicable grace period provided therein) shall be an Event of Default under the Loan Agreement; and (c) any breach of the Horizon/DBD Subordination Agreement by Horizon and/or DBD shall be an Event of Default under the Loan Agreement (if such breach is not otherwise cured within any applicable grace period).

Covenants and Defaults. Bank and Borrower hereby acknowledge and agree that (a) Borrower shall not amend, modify or supplement any of the Horizon/DBD Subordinated Horizon Loan Documents (as hereinafter defineddefined below) in a manner which would (i) increase the aggregate principal amount of Horizon/DBD LoanSubordinated Horizon Loans beyond the Increased Horizon Loan Maximum, (ii) increase any applicable interest rate with respect to the Horizon/DBD Loan Indebtedness owing under the Subordinated Horizon Loans by more than 200 basis points (excluding increases based solely on (A) changes to the prime rate or any other index and (B) the imposition of the default rate of interest in accordance with the Horizon/DBD Subordinated Horizon Loan Documents), (iii) change the terms of principal or interest repayment with respect to the Horizon/DBD LoanIndebtedness owing under the Subordinated Horizon Loans, (iv) change the payment schedule with respect to the Horizon/DBD LoanIndebtedness owing under the Subordinated Horizon Loans, (v) add express conditions that directly restrict the payment of the Obligations, (vi) change the maturity date with respect to the Horizon/DBD Loan Indebtedness owing under the Subordinated Horizon Loans from that set forth in the Horizon/DBD Subordinated Horizon Loan Documents in effect as of September 12, 2014 (the Horizon/DBD “Subordinated Horizon Loan Documents Execution Date (as defined below), Date”) or (vii) change the definition of Collateral set forth in the Horizon/DBD Subordinated Horizon Loan Documents from the definition in effect as of the Horizon/DBD Subordinated Horizon Loan Documents Execution Date (as defined below)Date; (b) the occurrence of a default under the Horizon/DBD Subordinated Horizon Loan Documents (if such default is not waived, or otherwise cured within any applicable grace period provided therein) shall be an Event of Default under the Loan Agreement; and (c) any breach of the Horizon/DBD Restated Horizon Subordination Agreement by Horizon Collateral Agent and/or DBD any of the Subordinated Horizon Creditors shall be an Event of Default under the Loan Agreement (if such breach is not otherwise cured within any applicable grace period).