Common use of Supply Contracts Clause in Contracts

Supply Contracts. The Guarantor agrees that all agreements or ---------------- arrangements between the Guarantor and its Subsidiaries or representative or agents on the one hand, and AMS or GCI on the other, providing for pharmaceuticals or other supplies or services to be furnished to any facility operated by AMS or GCI, shall provide that each such agreement or arrangement shall be terminated and of no further force and effect, and all obligations and liabilities thereunder released and terminated (other than obligations to pay for services or supplies previously rendered or furnished), at any time upon notice to the Guarantor by HRP after either (i) HRP terminates such lease with AMS or GCI, accelerates the maturity of any promissory note of AMS or GCI, or forecloses upon or exercises remedies of like effect in respect of the stock of GCI or AMS pledged to HRP or (ii) the occurrence of an Event of Default hereunder or under any other GranCare Document involving the bankruptcy or insolvency of New GranCare, AMS, GCI or the Guarantor.

Supply Contracts. The Guarantor agrees that all agreements or ---------------- arrangements between the Guarantor and its Subsidiaries or representative or agents on the one hand, and AMS or GCI on the other, providing for pharmaceuticals or other supplies or services to be furnished to any facility operated by AMS or GCI, shall provide that each such agreement or arrangement shall be terminated and of no further force and effect, and all obligations and liabilities thereunder released and terminated (other than obligations to pay for services or supplies previously rendered or furnished), at any time upon notice to the Guarantor by HRP after either (i) HRP terminates such lease with AMS or GCI, accelerates the maturity of any promissory note of AMS or GCI, or forecloses upon or exercises remedies of like effect in respect of the stock of GCI or AMS pledged to HRP or (ii) the occurrence of an Event of Default hereunder or under any other GranCare Document involving the bankruptcy or insolvency of New GranCare, AMS, GCI or the Guarantor.