Common use of Notice of Event of Default and Adverse Business Developments Clause in Contracts

Notice of Event of Default and Adverse Business Developments. Immediately after becoming aware of the existence of a Default or any Event of Default under this Agreement or after becoming aware of any developments or other information which is likely to (i) materially adversely affect Borrower’s business, prospects, profits or condition (financial or otherwise) or its ability to perform this Agreement, or (ii) adversely affect the properties of Borrower, including, without limitation, the following: (a) any substantial dispute that may arise between Borrower and any governmental regulatory body or law enforcement authority, including any action relating to any material tax liability of Borrower; (b) all litigation against Borrower where the amount claimed in any one suit or action is $250,000 or more and all litigation where the amount claimed in the aggregate is $500,000 or more except when the same is fully covered by insurance and the insurer accepts liability therefor; (c) any labor controversy resulting in or threatening to result in a strike or work stoppage against Borrower; (d) any proposal by any public authority to acquire the assets or business of Borrower; (e) the location of any Collateral other than at Borrower’s place of business or as permitted under this Agreement; (f) any proposed or actual change of Borrower’s name, identity or corporate structure; and (g) any other matter which has resulted or is likely to result in a Material Adverse Effect. In each case, Borrower will provide Lender with telephonic or telegraphic notice specifying and describing the nature of such Default, Event of Default or development or information, and such anticipated effect, which telephonic or telegraphic notice shall be promptly confirmed in writing within three (3) Banking Days; and

Appears in 4 contracts

Samples: Loan and Security Agreement (Helios & Matheson North America Inc.), Loan and Security Agreement (Helios & Matheson North America Inc.), Loan and Security Agreement (Helios & Matheson North America Inc.)

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Notice of Event of Default and Adverse Business Developments. Immediately after becoming aware of the existence of a Default or any Event of Default under this Agreement or after becoming aware of any developments or other information which is likely to (i) materially adversely affect either Borrower’s 's business, prospects, profits or condition (financial or otherwise) or its ability to perform this Agreement, or (ii) adversely affect the properties of either Borrower, including, without limitation, the following: (a) any substantial dispute that may arise between either Borrower and any governmental regulatory body or law enforcement authority, including any action relating to any material tax liability of either Borrower; (b) all litigation against either Borrower where the amount claimed in any one suit or action is $250,000 or more and all litigation where the amount claimed in the aggregate is $500,000 or more except when the same is fully covered by insurance and the insurer accepts liability therefor; (c) any labor controversy resulting in or threatening to result in a strike or work stoppage against either Borrower; (d) any proposal by any public authority to acquire the assets or business of either Borrower; (e) the location of any Collateral other than at either Borrower’s 's place of business or as permitted under this Agreement; (f) any proposed or actual change of either Borrower’s 's name, identity or corporate structure; and (g) any other matter which has resulted or is likely to may result in a Material Adverse Effect. In each case, the applicable Borrower will provide Lender with telephonic or telegraphic notice specifying and describing the nature of such Default, Event of Default or development or information, and such anticipated effect, which telephonic or telegraphic notice shall be promptly confirmed in writing within three (3) Banking Days; and

Appears in 1 contract

Samples: Loan and Security Agreement (A Consulting Team Inc)

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