Common use of Regulatory Violation Clause in Contracts

Regulatory Violation. Upon the occurrence of a Regulatory Violation or in the event that St. Cloud determines in its good faith judgment that a Regulatory Violation has occurred, in addition to any other rights and remedies to which it may be entitled as a holder of the St. Cloud Securities and any Underlying Common Stock (whether under this Agreement, the instruments evidencing the St. Cloud Securities, the other Loan Documents or otherwise), subject to applicable law, St. Cloud shall have the right to the extent required under the SBIC Regulations to demand the immediate repurchase of all of the outstanding St. Cloud Securities and Underlying Common Stock owned by St. Cloud at a price equal to the purchase price paid for such St. Cloud Securities and Underlying Common Stock, plus all accrued interest on the St. Cloud Note, by delivering written notice of such demand to Borrower. Borrower shall pay the purchase price for such St. Cloud Securities and Underlying Common Stock by a cashier’s or certified check or by wire transfer of immediately available funds to St. Cloud within thirty (30) days after Borrower’s receipt of the demand notice, and upon such payment, St. Cloud shall deliver the certificates evidencing the St. Cloud Securities and Underlying Common Stock to be repurchased duly endorsed for transfer or accompanied by duly executed forms of assignment.