Common use of Negative Covenants Pending Closing Clause in Contracts

Negative Covenants Pending Closing. Company shall not: (i) DISPOSITION OF ASSETS. Sell or transfer, or mortgage, pledge, lease or otherwise encumber any of its assets, including its Proprietary Rights, other than sales or transfers in the ordinary course of business and in amounts not exceeding, in the aggregate, $250,000; (ii) LIABILITIES. Incur any indebtedness for borrowed money in excess of $500,000, or incur any obligation or liability or enter into any contract or commitment involving potential payments to or by Company or any Company Subsidiary other than in the ordinary course of business consistent with past practice in an amount, in any one case, not exceeding $500,000;

Appears in 2 contracts

Sources: Merger Agreement (Geltex Pharmaceuticals Inc), Merger Agreement (Genzyme Corp)