Template:Nutshell Pledge GMSLA 10

10 Events of Default
10.1 Any of the following occurring and continuing in relation to a Party (the Defaulting Party; the other being the Non-Defaulting Party) becomes an Event of Default when the Non-Defaulting Party serves written notice to that effect on the Defaulting Party:

10.1(a) Borrower failure to deliver Collateral: Borrower failing to deliver Collateral under paragraph 5 when required;

10.1(b) Borrower failing to manufacture payments: Borrower failing to manufacture payments under paragraph 6.1 when due and not curing the failure within three Business Days of Lender’s written notice to do so;

10.1(c) Failure to settle mini-closeout: Borrower failing to pay any sum due on mini-closeout under paragraph 9.1(b) or 9.2 when due;

10.1(d) Insolvency: either party suffering an Act of Insolvency;

10.1(e) Breach of warranty: any of the Lender’s warranties in paragraph 13 or the Borrower's in paragraphs 14(a) to 14(h) or in the Security Agreement being materially wrong when made or repeated;

10.1(f) Repudiation: either party stating that it cannot, or will not, perform any obligations under this Agreement, the Security Agreement or any Loan which failure would (upon expiry of grace periods and so on) be an Event of Default;

10.1(g) Regulator intervention: a regulator directs a material part of either party’s assets to be transferred to a trustee or receiver under any legislation;

10.1(h) Suspension of exchange membership: either party being suspended, expelled of declared in default by any Securities exchange or any regulatory authority, because it has failed to meet ratings or capital adequacy requirements;

10.1(i) Breach of Agreement: either party breaching any of its other obligations and not remedying the failure within 30 days after the Non-Defaulting Party requires it to remedy the failure in writing; or

10.1(j) Security Agreement failures: Borrower breaches, repudiates or challenges the validity of the Security Agreement, or it expires or is terminated, or any security interest granted by Borrower under it is not fully effective.

10.2 Each Party must notify the other (in writing) if it suffers an Event of Default or potential Event of Default.
10.3 Subject to paragraphs 9 and 11, neither Party may claim any consequential losses for breach of this Agreement.