Common use of Subsequent Conditions Clause in Contracts

Subsequent Conditions. (a) Borrower covenants and agrees that, no later than thirty (30) days following the Effective Date, Borrower shall (i) enter into a “blocked” or “immediately restricted” deposit account control agreement, in form and substance reasonably satisfactory to the Administrative Agent, establishing control (as defined in the UCC) of a newly opened deposit account by the Administrative Agent and whereby the bank maintaining such account agrees, at all times to comply only with the instructions originated by the Secured Party without the further consent of the Borrower, and (ii) provide evidence satisfactory to the Administrative Agent of the deposit of $3,000,000 in the account referred to in clause (i). Borrower acknowledges and agrees that upon the occurrence of an Event of Default, including, but not limited to a failure to make the mandatory prepayment set forth in Section 6.1.2(a)(vi) of the Credit Agreement, Administrative Agent may direct the funds held in such account for payment to the outstanding Obligations. Failure to comply with the foregoing obligations by the applicable date shall result in an immediate Event of Default under the Credit Agreement for which no cure period shall apply. (b) Borrower covenants and agrees that, no later than ten (10) Business Days following the Effective Date, Borrower shall have updated the source code subject to the third party source code escrow agreement and provide evidence of the same which is satisfactory to Administrative Agent in its reasonable discretion.