Voting Rights in Respect of Subsidiary Stock. (a) So long as no Event of Default shall have occurred and be continuing, to the extent permitted by law, each Borrower may exercise any and all voting and other consensual rights pertaining to the Subsidiary Stock of such Borrower or any part thereof for any purpose not inconsistent with the terms of this Agreement; and (b) Upon the occurrence and during the continuance of an Event of Default and following written notice by Agent, all rights of a Borrower to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to paragraph (a) of this Section shall cease and all such rights shall thereupon become vested in Agent which shall then have the sole right to exercise such voting and other consensual rights.
Appears in 3 contracts
Samples: Revolving Credit and Security Agreement (Dreams Inc), Revolving Credit and Security Agreement (Intcomex, Inc.), Revolving Credit and Security Agreement (Teamstaff Inc)
Voting Rights in Respect of Subsidiary Stock. (a) So long as no Event of Default shall have occurred and be continuing, to the extent permitted by law, each Borrower may exercise any and all voting and other consensual rights pertaining to the Subsidiary Stock of such Borrower or any part thereof for any purpose not inconsistent with the terms of this Agreement; and
(b) Upon the occurrence and during the continuance of an Event of Default and following written notice by Agent, all rights of a Borrower to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to paragraph (a) of this Section shall cease and all such rights shall thereupon become vested in Agent which shall then have the sole right to exercise such voting and other consensual rights.
Appears in 1 contract
Samples: Revolving Credit and Security Agreement (Apac Customer Service Inc)
