Commitment to Financing Clause Samples

Commitment to Financing. 2.1.1 Solog hereby undertakes to provide HOMI with financing, for the Specified Purpose, in accordance with draw-downs which may be made by HOMI from time to time during the Term of this Agreement and in accordance with the provisions hereof, provided that the cumulative amount of financing which HOMI may draw-down from Solog, and which Solog undertakes to provide, if so required under this Agreement, will not exceed $10 million principal (the “Financing”) and further provided that HOMI shall, in respect of a particular Loan, have met the preconditions required for grant of that Loan, as set forth in Section 4 of the Loan Agreement. 2.1.2 Notwithstanding the provisions of Section 2.1.1 above, in the event that, at any given time during the Term of this Agreement: 2.1.2.1 repayments to Solog of principal and interest under one or more Loan Agreements, in an amount of more than $100,000, and in an amount of more than $200,000 once $5,000,000 of the Financing has already been drawn-down, remain outstanding, representing an event of default by HOMI under such Loan Agreements that has not been cured in accordance with the applicable Loan Agreements; and/or 2.1.2.2 any proceedings seeking to declare HOMI bankrupt, or insolvent, or seeking liquidation, winding up, reorganization, arrangement with creditors, composition of debts or any other similar proceedings shall be initiated against HOMI or any resolution shall be passed by HOMI for the appointment of a liquidator, administrator or receiver of, or for the winding up of HOMI, and in any such case, such resolution or proceeding shall not be dismissed within thirty (30) days; and/or 2.1.2.3 HOMI sells all or substantially all of its assets or is acquired by another entity by means of merger, consolidation or other transaction resulting in the exchange of the outstanding shares of HOMI’s capital stock such that the stockholders of HOMI prior to such transaction own, directly or indirectly, less than 50% of the voting power of the surviving entity; then Solog shall forthwith be deemed released of any further obligation under Section 2.1.1 above, such that it shall not then be obliged to provide any further part of the Financing that was not actually loaned already to HOMI, provided that Solog shall be entitled, in its discretion, to provide such Financing, during the period in which said event or events still prevail and/or, in the case of Sections 2.1.2.1 and/or 2.1.2.2 above, at such time as such events may no l...