Common use of Financial Standards Clause in Contracts

Financial Standards. Licensee shall provide its financial statements to Licensor annually or as requested by Licensor, which are to be prepared in accordance with U.S. GAAP. Licensee must promptly notify Licensor of a termination of any significant line of credit or guarantee of indebtedness by personal guarantor. Should Licensee's net worth fall below $2,000,000 in the aggregate, Licensor may at its option terminate this Agreement. Likewise Licensor may terminate this Agreement immediately if any of the following events occur 1) Licensee is in default under the provisions of any line of credit or debt agreement with financing institution.

Financial Standards. Licensee shall provide its financial statements to Licensor annually or as requested by Licensor, which are to be prepared in accordance with U.S. GAAPGMP. Licensee must promptly notify Licensor of a termination of any significant line of credit or guarantee of indebtedness by personal guarantor. Should Licensee's net worth fall below $2,000,000 in the aggregate, Licensor may at its option terminate this Agreement. Likewise Licensor may terminate this Agreement immediately if any of the following events occur occur: 1) Licensee is in default under the provisions of any line of credit or debt agreement with financing institution.