Common use of Occurrence of an Event of Default Clause in Contracts

Occurrence of an Event of Default. Upon the occurrence and during the continuance of an Event of Default, all rights of Pledgor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to Section 5.1(i) and to receive the dividends and interest payments which it would otherwise be authorized to receive and retain pursuant to Section 5.1(ii) shall cease, at Collateral Agent’s election, and all such rights shall thereupon become vested in Collateral Agent, or such nominee(s) of Collateral Agent as Collateral Agent shall direct, who shall thereupon have the sole right (but not the obligation) to exercise such voting and other consensual rights and to receive and hold as Pledged Collateral such dividends and interest payments.