Common use of Events of Default and Remedies Therefor Clause in Contracts

Events of Default and Remedies Therefor. (a) Events of Default. Any one or more of the following shall constitute an "Event of Default" as the term is used herein: (1) a default in the payment of interest on the Loan or the Additional Loan (if made to Paradigm) when due and such default shall continue for more than five business days; (2) a default in the payment of the principal at the expressed or any accelerated due date and such default shall continue for more than five business days; (3) a default in the payment when due of the principal of or interest on any Debt of Paradigm or the Subsidiaries to a bank, financial institution or pursuant to which the creditor has a registered Security Interest over assets, having an unpaid principal amount in excess of US$100,000 (whether by lapse of time, by declaration, by call for redemption or otherwise), and such default or event shall continue beyond the period of grace, if any, allowed with respect thereto; provided, however, that the provisions of this Section 6(a)(3) shall not apply to legitimate disputes in the ordinary course of the business of Paradigm and/or the Subsidiaries; (4) a default in the observance or performance of the covenants set forth in Section 4 of this Agreement, which default was not cured within fourteen business days from the date on which Paradigm had first actual knowledge of such default; (5) any representation or warranty made or furnished by Paradigm herein, including in all Exhibits hereto and documents referred to in the Exhibits hereto, is found to be untrue in any material respect as of the date of the issuance or delivery of the Debentures; (6) final judgments for the payment of money aggregating in excess of US$200,000 (excluding the amount of any judgment which is covered by insurance in an amount up to the amount remaining within the limits of the applicable insurance policy if the claim giving rise to such judgment has been specifically acknowledged in writing by the insurer as covered under the policy of insurance written by such insurer) is or are outstanding against Paradigm and/or the Subsidiaries or against any of the property or assets of Paradigm and/or the Subsidiaries and any such judgment or judgments aggregating in excess of US$200,000 (unless covered by insurance as provided herein) has or have remained unpaid, unvacated, unbonded or unstayed by appeal or otherwise for a period of 90 days from the date of its or their entry (7) Paradigm becomes bankrupt, is generally not paying its debts as they become due or makes an assignment for the benefit of creditors, or Paradigm causes or suffers an order for relief to be entered with respect to it under applicable bankruptcy law or applies for or consents to the appointment of a custodian, trustee or receiver for or over all the assets of Paradigm or a substantial part thereof; (8) a custodian, liquidator, trustee or receiver is appointed for or over all of the assets of Paradigm or a substantial part of its property and is not discharged within 90 days after such appointment; or (9) bankruptcy, reorganization, arrangement or insolvency proceedings, or other proceedings for relief under any bankruptcy or similar law or laws for the relief of debtors, are instituted by or against Paradigm and, if instituted against Paradigm, are consented to or are not dismissed within 90 days after such institution.

Events of Default and Remedies Therefor. (a) Events of Default. Any one or more of the following shall in any calendar year will constitute an "Event of Default" Default as the term is used hereinin this Agreement: (1a) a default in the payment of interest on insurance claims paying ability rating assigned to the Loan or the Additional Loan (if made to Paradigm) when due Borrower by Standard and such default shall continue for more than five business daysPoor's Corporation falls below A; (2b) default for a default period in excess of sixty (60) days with respect to the payment repayment of the principal portion of the Accounts Receivable payable by the Borrower to the Lender at the expressed or any accelerated due date and such default shall continue for more than five business daysend of the calendar year, as described in Paragraph 2 above; (3c) a default any material representation, warranty or other statement made by the Borrower herein or in the payment when due of the principal of any statement or interest on any Debt of Paradigm or the Subsidiaries to a bankcertificate furnished in connection with, financial institution or pursuant to which to, the creditor has a registered Security Interest over assetstransactions contemplated hereunder, having an unpaid principal amount or in excess of US$100,000 (whether by lapse of timecompliance with the terms hereof, by declaration, by call for redemption or otherwise), and such default or event shall continue beyond the period of grace, if any, allowed with respect thereto; provided, however, that the provisions of this Section 6(a)(3) shall not apply to legitimate disputes in the ordinary course of the business of Paradigm and/or the Subsidiaries; (4) a default in the observance or performance of the covenants set forth in Section 4 of this Agreement, which default was not cured within fourteen business days from the date on which Paradigm had first actual knowledge of such default; (5) any representation or warranty made or furnished by Paradigm herein, including in all Exhibits hereto and documents referred to in the Exhibits hereto, is found to be proves untrue in any material respect as of the date of the issuance or delivery of the Debenturesmaking thereof; (6d) final judgments for the payment violation of money aggregating in excess of US$200,000 (excluding the amount of any judgment which is covered by insurance in an amount up to the amount remaining within the limits of the applicable insurance policy if the claim giving rise to such judgment has been specifically acknowledged in writing by the insurer as covered under the policy of insurance written by such insurer) is or are outstanding against Paradigm and/or the Subsidiaries or against any of the property or assets of Paradigm and/or the Subsidiaries and any such judgment or judgments aggregating Borrower Covenants contained in excess of US$200,000 (unless covered by insurance as provided herein) has or have remained unpaidArticle II, unvacated, unbonded or unstayed by appeal or otherwise for a period of 90 days from the date of its or their entryParagraph 3; (7e) Paradigm becomes bankrupt, is generally not paying the Borrower files for bankruptcy or admits in writing its inability to pay its debts as they become due mature or makes an assignment for the benefit of creditors, or Paradigm causes or suffers an order for relief to be entered with respect to it under applicable bankruptcy law or ; (f) the Borrower applies for or consents to the appointment of a trustee, custodian, trustee receiver or receiver liquidator for the Borrower or over all for the assets major part of Paradigm or a substantial part thereofthe property of the Borrower; (8) a custodian, liquidator, trustee or receiver is appointed for or over all of the assets of Paradigm or a substantial part of its property and is not discharged within 90 days after such appointment; or (9g) bankruptcy, reorganization, arrangement or insolvency proceedings, or other proceedings for relief under any bankruptcy bankruptcy, reorganization, insolvency or similar law or laws for the relief of debtors, are instituted by or against Paradigm and, if instituted against Paradigm, the Borrower and are consented to or are not dismissed within 90 sixty (60) days after such institution; and/or (h) the non-observance or non-performance of any other provision of this Agreement which is not remedied within thirty (30) days after written notice thereof to the Borrower by the Lender; When any Event of Default described above occurs, then the Lender may elect to receive payment from the Borrower of any portion of the Accounts Receivable, as described in Paragraph 1 above, as of the end of the calendar year.