Agenda Package - 10-1-12 Reg. Meeting

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ARTICLE IX EVENTS OF DEFAULT AND REMEDIES SECTION 9.1. Events of Default Defined The following shall be "events of default" under this Agreement and the terns "events of default" and "default" shall mean, whenever they are used in this Agreement, any one or more of the following events: (a) The failure by the Purchaser to pay any Installment Payment required to be paid hereunder when due. (b) The occurrence of an Event of Nonappropriation. (c) Failure by the Purchaser to observe and perform any warranty, covenant, condition or agreement on its part to be observed or performed herein or otherwise with respect hereto other than as referred to in clause (a) or (b) of this Section, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied has been given to the Purchaser by the Seller; provided, however, that if the failure stated in the notice cannot be corrected within the applicable period and if corrective action is instituted by the Purchaser within the applicable period and diligently pursued, the Purchaser shall have such additional period of time to correct the failure as shall be necessary to correct such failure so long as such correction is diligently pursued. (d) The Purchaser becomes insolvent or the subject of' insolvency proceedings; or is unable, or admits in writing its inability, to pay its debts as they mature or makes a general assignment for the benefit of creditors or to an agent authorized to liquidate any substantial amount of its property; or files a petition or other pleading seeking reorganization, composition, readjustment or liquidation of assets, or requesting similar relief; or applies to a court for the appointment of a receiver for it or for the whole or any part of its property; or has a receiver or liquidator appointed for it or for the whole or any part of its property (with or without the consent of the Purchaser) and such receiver is not discharged within ninety (90) consecutive days after his appointment; or becomes the subject of an `order for relief' within the meaning of the United States Bankruptcy Code; or files an answer to a creditor's petition admitting the material allegations thereof for liquidation, reorganization, readjustment or composition or to effect a plan or other arrangement with creditors or fail to have such petition dismissed within sixty (60) consecutive days after the same is filed against the Purchaser. (e) The occurrence of an "Event of Default" under the Deed of Trust as defined therein. (t) Any warranty, representation or statement made by the Purchaser herein or in the Deed of Trust or any other document executed and delivered by the Purchaser in connection herewith is found to be incorrect or misleading in any material respect as of the date made. SECTION 9.2. Remedies on Default Upon the occurrence of any event of default under Section 9.1, the Seller may, without any further demand or notice, exercise any one or more of the following remedies: 16