Common use of PERFORMANCE EVENT Clause in Contracts

PERFORMANCE EVENT. In the event of the occurrence of a Performance Event and any Bank, after satisfying all requirements stated in paragraph 2 of Section X of this Agreement with respect to all other Banks which are a party hereto, then exercises its right to declare Pioneer to be nonperforming under the terms of this Agreement, Pioneer agrees that the Banks shall then and thereafter have the right to receive eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military Insurance. Upon receipt of written notice from the Agent Bank, Pioneer will immediately commence and continue depositing on the fifth (5th) Business Day of each month eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military Insurance, to an account at the Agent Bank established ratably for the benefit of all Banks which are parties to this Agreement. The ratable amount payable to each Bank from funds payable for the ratable benefit of all Banks in accordance with the provisions of the immediately preceding paragraph shall be calculated by multiplying the total amount payable for the benefit of all Banks by a fraction, the numerator of which shall equal the total outstanding principal indebtedness to such Bank, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes and the denominator of which shall equal the total outstanding principal indebtedness to all Banks, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes.

PERFORMANCE EVENT. In the event of the occurrence of a Performance Event and any Bank, after satisfying all requirements stated in paragraph 2 of Section X of this Agreement with respect to all other Banks which are a party hereto, then exercises its right to declare Pioneer the Borrowers to be nonperforming under the terms of this Agreement, Pioneer each Borrower agrees that the Banks shall then and thereafter have the right to receive eighty percent (80%) of all funds received by or under the control of Pioneer any Borrower which are proceeds of notes payable to the Subsidiaries of any Borrower except Pioneer, except Pioneer Military Insurance. Upon receipt of written notice from the Agent Bank, Pioneer the Borrowers will immediately commence and continue depositing on the fifth (5th) Business Day of each month eighty percent (80%) of all funds received by or under the control of Pioneer any Borrowers which are proceeds of notes payable by customers to the Subsidiaries of any Borrower except Pioneer, except Pioneer Military Insurance, to an account at the Agent Bank established ratably for the benefit of all Banks which are parties to this Agreement. The ratable amount payable to each Bank from funds payable for the ratable benefit of all Banks in accordance with the provisions of the immediately preceding paragraph shall be calculated by multiplying the total amount payable for the benefit of all Banks by a fraction, the numerator of which shall equal the total outstanding principal indebtedness to such Bank, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes and the denominator of which shall equal the total outstanding principal indebtedness to all Banks, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes. In the event MidCountry Bank commences performing, and during the period MidCountry Bank performs, loan maintenance and collection services for the Banks pursuant to Section 8(a) of the Loan Sale and Master Services Agreement in substantially the form of Exhibit L attached hereto, or any successor agreement thereto, and during any period when any person or entity other than MidCountry Bank or any Borrower performs loan maintenance and collection services for the Banks, the amount of eighty percent (80%) as set forth above in this Section VI shall be increased to one hundred percent (100%) and the fees set forth in such Section 8(a) shall apply.

PERFORMANCE EVENT. In the event of the occurrence of a Performance Event and any Bank, after satisfying all requirements stated in paragraph 2 of Section X of this Agreement with respect to all other Banks which are a party hereto, then exercises its right to declare Pioneer to be nonperforming under the terms of this Agreement, Pioneer agrees that the Banks shall then and thereafter have the right to receive eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military InsuranceInsurance Company. Upon receipt of written notice from the Agent Bank, Pioneer will immediately commence and continue depositing on the fifth (5th) Business Day of each month eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military InsuranceInsurance Company, to an account at the Agent Bank established ratably for the benefit of all Banks which are parties to this Agreement. The ratable amount payable to each Bank from funds payable for the ratable benefit of all Banks in accordance with the provisions of the immediately preceding paragraph shall be calculated by multiplying the total amount payable for the benefit of all Banks by a fraction, the numerator of which shall equal the total outstanding principal indebtedness to such Bank, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes and the denominator of which shall equal the total outstanding principal indebtedness to all Banks, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes.

PERFORMANCE EVENT. In the event of the occurrence of a Performance Event and any Bank, after satisfying all requirements stated in paragraph 2 of Section X of this Agreement with respect to all other Banks which are a party hereto, then exercises its right to declare Pioneer to be nonperforming under the terms of this Agreement, Pioneer agrees that the Banks shall then and thereafter have the right to receive eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military InsuranceInsurance Company. Upon receipt of written notice from the Agent Bank, Pioneer will immediately commence and continue depositing on the fifth (5th) Business Day of each month eighty percent (80%) of all funds received by or under the control of Pioneer which are proceeds of notes payable to the Subsidiaries of Pioneer, except Pioneer Military InsuranceInsurance Company, to an account at the Agent Bank established ratably for the benefit of all Banks which are parties to this Agreement. 20 <page> The ratable amount payable to each Bank from funds payable for the ratable benefit of all Banks in accordance with the provisions of the immediately preceding paragraph shall be calculated by multiplying the total amount payable for the benefit of all Banks by a fraction, the numerator of which shall equal the total outstanding principal indebtedness to such Bank, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes and the denominator of which shall equal the total outstanding principal indebtedness to all Banks, regardless of the stated maturity date or dates, evidenced by Secured Revolving Grid Notes, Secured Amortizing Notes and Secured Single Pay Term Notes. VII. AGENT BANK 1.