Default Penalty Payment Sample Clauses
The Default Penalty Payment clause establishes the financial consequences for a party that fails to fulfill its contractual obligations on time or as agreed. Typically, this clause specifies a predetermined penalty amount or a formula for calculating the penalty, which becomes payable by the defaulting party upon breach or delay. By clearly outlining the costs associated with non-performance, the clause incentivizes timely compliance and compensates the non-breaching party for potential losses, thereby reducing disputes and ensuring accountability.
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Default Penalty Payment. Following the occurrence and during the continuance of an Event of Default, B▇▇▇▇▇▇▇ agrees to pay to Holder in the amount equal to one thousand dollars ($1,000) per Business Day commencing the Business Day following the date of the Event of Default. Borrower shall pay any fees incurred under this Section in immediately available funds upon demand and such fees shall also be eligible to be converted into Conversion Shares as set forth in Article III. Such conversion privileges shall remain in full force and effect immediately from the date hereof and until this Debenture is paid in full.
Default Penalty Payment. Following the occurrence and during the continuance of an Event of Default, Borrower agrees to pay to Holder in the amount equal to one thousand dollars ($1,000) per Business Day commencing the Business Day following the date of the Event of Default, subject to such payment being capped at 100% of the then outstanding Principal Amount. Borrower shall pay any fees incurred under this Section in immediately available funds upon demand and such fees shall also be eligible to be converted into Conversion Shares as set forth in Article III. Such conversion privileges shall remain in full force and effect immediately from the date hereof and until this Debenture is paid in full.