EVENTS OF DEFAULT
Any one of the following is an Event of Default:
8.1
PAYMENT DEFAULT.
Borrower fails to pay any of the Obligations within three (3) days after their
due date. During the additional period the failure to cure the default shall not
constitute an Event of Default (but no Credit Extension shall be made during
such cure period).
8.2
COVENANT DEFAULT.
(A)
IF BORROWER FAILS TO PERFORM ANY OBLIGATION
UNDER SECTIONS 6.2 OR 6.7 OR VIOLATES ANY OF THE COVENANTS CONTAINED IN
SECTION 7 OF THIS AGREEMENT, OR
(B)
IF BORROWER FAILS OR NEGLECTS TO PERFORM,
KEEP, OR OBSERVE ANY OTHER MATERIAL TERM, PROVISION, CONDITION, COVENANT, OR
AGREEMENT CONTAINED IN THIS AGREEMENT, IN ANY OF THE LOAN
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DOCUMENTS, OR IN ANY OTHER PRESENT OR FUTURE AGREEMENT BETWEEN BORROWER AND ANY
LENDER AND AS TO ANY DEFAULT UNDER SUCH OTHER TERM, PROVISION, CONDITION,
COVENANT OR AGREEMENT THAT CAN BE CURED, HAS FAILED TO CURE SUCH DEFAULT WITHIN
TEN (10) DAYS AFTER THE OCCURRENCE THEREOF; PROVIDED, HOWEVER, THAT IF THE
DEFAULT CANNOT BY ITS NATURE BE CURED WITHIN THE TEN (10) DAY PERIOD OR CANNOT
AFTER DILIGENT ATTEMPTS BY BORROWER BE CURED WITHIN SUCH TEN (10) DAY PERIOD,
AND SUCH DEFAULT IS LIKELY TO BE CURED WITHIN A REASONABLE TIME, THEN BORROWER
SHALL HAVE AN ADDITIONAL REASONABLE PERIOD (WHICH SHALL NOT IN ANY CASE EXCEED
THIRTY (30) DAYS AFTER THE END OF SUCH TEN (10) DAY PERIOD) TO ATTEMPT TO CURE
SUCH DEFAULT, AND WITHIN SUCH REASONABLE TIME PERIOD THE FAILURE TO HAVE CURED
SUCH DEFAULT SHALL NOT BE DEEMED AN EVENT OF DEFAULT (PROVIDED THAT NO CREDIT
EXTENSIONS WILL BE MADE DURING SUCH CURE PERIOD).
8.3
MATERIAL ADVERSE CHANGE. A MATERIAL ADVERSE
CHANGE OCCURS.
8.4
ATTACHMENT.
(I)
ANY MATERIAL PORTION OF BORROWER'S
ASSETS IS ATTACHED, SEIZED, LEVIED ON, OR COMES INTO POSSESSION OF A TRUSTEE OR
RECEIVER AND THE ATTACHMENT, SEIZURE OR LEVY IS NOT REMOVED IN TEN (10) DAYS;
(II) THE SERVICE OF PROCESS UPON THE BORROWER SEEKING TO ATTACH, BY TRUSTEE OR
SIMILAR PROCESS, ANY FUNDS OF THE BORROWER ON DEPOSIT WITH ANY LENDER, OR ANY
ENTITY UNDER THE CONTROL OF ANY LENDER (INCLUDING A SUBSIDIARY); (III) BORROWER
IS ENJOINED, RESTRAINED, OR PREVENTED BY COURT ORDER FROM CONDUCTING A MATERIAL
PART OF ITS BUSINESS; (IV) A JUDGMENT OR OTHER CLAIM BECOMES A LIEN ON A
MATERIAL PORTION OF BORROWER'S ASSETS; OR (V) A NOTICE OF LIEN, LEVY, OR
ASSESSMENT IS FILED AGAINST ANY OF BORROWER'S ASSETS BY ANY GOVERNMENT AGENCY
AND NOT PAID WITHIN TEN (10) DAYS AFTER BORROWER RECEIVES NOTICE. THESE ARE NOT
EVENTS OF DEFAULT IF STAYED OR IF A BOND IS POSTED PENDING CONTEST BY BORROWER
(BUT NO CREDIT EXTENSIONS SHALL BE MADE DURING THE CURE PERIOD).
8.5
INSOLVENCY.
(I)
BORROWER IS UNABLE TO PAY ITS DEBTS
(INCLUDING TRADE DEBTS) AS THEY MATURE; (II) BORROWER BEGINS AN INSOLVENCY
PROCEEDING; OR (III) AN INSOLVENCY PROCEEDING IS BEGUN AGAINST BORROWER AND NOT
DISMISSED OR STAYED WITHIN FORTY-FIVE (45) DAYS (BUT NO CREDIT EXTENSIONS SHALL