Remedies and Security Clause Samples

Remedies and Security. The following provisions shall govern the remedies of the parties hereto in the event of a default of an obligation contained in this Section 7: (1) A party to this Agreement shall not be in default of any obligation contained in this Section 7 unless and until such party shall have failed to perform any such obligation involving the payment of money within five (5) days after delivery of written notice from the other party specifying such failure to pay, or, in the case of a failure to perform an obligation that does not involve the payment of money, such party shall not have cured such failure to perform within thirty (30) days after written notice from the other party specifying the nature of such failure where such failure could reasonably be cured within such thirty (30) day period, or if such failure could not reasonably be cured within said thirty (30) day period, such party shall have failed to commence such cure within such thirty (30) day period and thereafter continue with due diligence to prosecute such cure to completion within such time period as is reasonably needed to effect the cure. (2) In order to provide security to Buyer for the performance of Seller's obligations pursuant to this Section 7, Seller has delivered to Buyer and will maintain in effect until Seller has fully performed its obligations under this Section 7 a performance bond in the principal amount of Eight Million Dollars ($8,000,000) as security for the performance of Seller's obligations under this Section 7 (the "BOND"), which meets all of the following conditions: (i) the Bond is irrevocable and in form reasonably satisfactory to Seller and Buyer; and (ii) the Bond is drawn upon or issued by a financial institution reasonably acceptable to Buyer. Buyer shall be entitled to commence action to enforce the Bond, upon the occurrence of a default by Seller of its obligations under this Section 7 (after notice and opportunity to cure pursuant to Section 7(c)(1)). To the extent that Buyer receives proceeds from the Bond and the proceeds are not needed to satisfy Seller's obligations under this Section 7, Buyer shall hold such cash proceeds that are not so needed in a separate interest-bearing account as security for the further performance of such obligations by Seller. Upon full performance of all obligations of Seller under this Section 7, the Bond (or any cash proceeds resulting from a draw upon the Bond with any interest earned thereon) shall be returned to Seller. The obl...