{"component": "clause", "props": {"groups": [{"snippet_links": [{"key": "in-writing", "type": "definition", "offset": [34, 44]}, {"key": "contemplated-by-this-agreement", "type": "clause", "offset": [156, 186]}, {"key": "relates-to", "type": "definition", "offset": [195, 205]}, {"key": "excluded-assets", "type": "definition", "offset": [206, 221]}, {"key": "retained-liabilities", "type": "clause", "offset": [225, 245]}, {"key": "section-501", "type": "clause", "offset": [267, 279]}, {"key": "seller-disclosure-schedule", "type": "definition", "offset": [287, 313]}, {"key": "as-required-by", "type": "clause", "offset": [321, 335]}, {"key": "applicable-law", "type": "clause", "offset": [336, 350]}, {"key": "date-hereof", "type": "clause", "offset": [364, 375]}, {"key": "the-closing-date", "type": "clause", "offset": [380, 396]}, {"key": "seller-shall", "type": "clause", "offset": [398, 410]}, {"key": "conduct-the-business", "type": "definition", "offset": [453, 473]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [503, 532]}, {"key": "in-all-material-respects", "type": "definition", "offset": [533, 557]}, {"key": "commercially-reasonable-efforts", "type": "definition", "offset": [576, 607]}, {"key": "the-services", "type": "definition", "offset": [626, 638]}, {"key": "current-officers", "type": "definition", "offset": [646, 662]}, {"key": "employees-and-consultants", "type": "clause", "offset": [668, 693]}, {"key": "the-customers", "type": "clause", "offset": [799, 812]}, {"key": "other-persons", "type": "definition", "offset": [828, 841]}, {"key": "business-relations", "type": "clause", "offset": [869, 887]}, {"key": "reasonably-necessary", "type": "clause", "offset": [894, 914]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [962, 992]}, {"key": "by-purchaser", "type": "clause", "offset": [1187, 1199]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [1358, 1380]}, {"key": "agree-to", "type": "clause", "offset": [1389, 1397]}, {"key": "otherwise-dispose-of", "type": "definition", "offset": [1482, 1502]}, {"key": "the-assets", "type": "clause", "offset": [1527, 1537]}, {"key": "in-the-aggregate", "type": "definition", "offset": [1649, 1665]}, {"key": "taken-as-a-whole", "type": "clause", "offset": [1683, 1699]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [1751, 1785]}, {"key": "permitted-lien", "type": "definition", "offset": [1859, 1873]}, {"key": "discharge-or", "type": "clause", "offset": [1936, 1948]}, {"key": "claims-or-rights", "type": "clause", "offset": [1968, 1984]}, {"key": "pertaining-to", "type": "definition", "offset": [1985, 1998]}, {"key": "material-contract", "type": "clause", "offset": [2095, 2112]}, {"key": "material-real-property-lease", "type": "definition", "offset": [2114, 2142]}, {"key": "material-customer", "type": "clause", "offset": [2166, 2183]}, {"key": "material-vendor", "type": "definition", "offset": [2187, 2202]}, {"key": "payment-of-accounts-payable", "type": "clause", "offset": [2502, 2529]}, {"key": "other-liabilities", "type": "definition", "offset": [2533, 2550]}, {"key": "accounts-receivable", "type": "definition", "offset": [2651, 2670]}, {"key": "tax-election", "type": "clause", "offset": [2789, 2801]}, {"key": "annual-accounting-period", "type": "definition", "offset": [2813, 2837]}, {"key": "accounting-method", "type": "definition", "offset": [2859, 2876]}, {"key": "with-respect-to", "type": "clause", "offset": [2877, 2892]}, {"key": "adversely-affect", "type": "definition", "offset": [2931, 2947]}, {"key": "treatment-of", "type": "definition", "offset": [2956, 2968]}, {"key": "for-the-purchaser", "type": "clause", "offset": [2980, 2997]}, {"key": "fail-to-maintain", "type": "clause", "offset": [3005, 3021]}, {"key": "in-effect", "type": "clause", "offset": [3022, 3031]}, {"key": "in-place", "type": "clause", "offset": [3117, 3125]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [3133, 3155]}, {"key": "accounting-practice", "type": "definition", "offset": [3253, 3272]}, {"key": "us-gaap", "type": "clause", "offset": [3335, 3342]}, {"key": "foregoing-actions", "type": "clause", "offset": [3409, 3426]}, {"key": "any-action", "type": "definition", "offset": [3454, 3464]}, {"key": "prior-to", "type": "definition", "offset": [3509, 3517]}, {"key": "electronic-mail", "type": "definition", "offset": [3577, 3592]}, {"key": "consented-to", "type": "definition", "offset": [3711, 3723]}, {"key": "pacific-time", "type": "definition", "offset": [3799, 3811]}, {"key": "business-day", "type": "definition", "offset": [3826, 3838]}, {"key": "delivery-of", "type": "clause", "offset": [3849, 3860]}, {"key": "notices-required", "type": "clause", "offset": [3865, 3881]}, {"key": "consent-to", "type": "clause", "offset": [3932, 3942]}], "snippet": "Unless Purchaser otherwise agrees in writing as set forth below (which agreement shall not be unreasonably withheld or delayed) and except (a) as expressly contemplated by this Agreement, (b) as relates to Excluded Assets or Retained Liabilities, (c) as set forth in Section 5.01 of the Seller Disclosure Schedule or (d) as required by applicable Law, between the date hereof and the Closing Date, Seller shall (and shall cause its Subsidiaries to)\n(i) conduct the Business only in the ordinary course, consistent with past practice in all material respects, and (ii) use its commercially reasonable efforts to keep available the services of the current officers, key employees and consultants of the Business and to preserve the current relationships of the Seller and each Subsidiary with each of the customers, suppliers and other Persons with whom the Business has business relations as is reasonably necessary to preserve substantially intact the Business. Without limiting the foregoing, and as an extension thereof, except as set forth in the Seller Disclosure Schedule, as otherwise contemplated by this Agreement, as required by applicable Law or as otherwise agreed in writing by Purchaser (which agreement shall not be unreasonably withheld), Seller shall not, and shall not permit any Subsidiary to, between the date hereof and the Closing Date, directly or indirectly, do, or agree to do, any of the following:\n(i) distribute, sell, assign, transfer, lease, abandon or otherwise dispose of any interest in, any of the Assets which distribution, sale, assignment, transfer, lease, abandonment or disposition is material, individually or in the aggregate, to the Business taken as a whole, other than sales or licenses of goods or services in the ordinary course of business;\n(ii) grant any Lien, or permit or suffer to exist any Lien other than a Permitted Lien, on any of the Assets or cancel any material debts or settle, discharge or waive any material claims or rights pertaining to the Business or the Assets;\n(iii) materially change, amend or otherwise modify or terminate any Material Contract, Material Real Property Lease or any Contract with a Material Customer or Material Vendor, other than in the ordinary course of business;\n(iv) enter into, or become obligated under any Material Contract, Material Real Property Lease or any Contract with a Material Customer or Material Vendor, other than in the ordinary course of business;\n(v) materially delay or materially postpone the payment of accounts payable or other liabilities or accrue any expenses outside the ordinary course of business, or accelerate the prepayment of any accounts receivable or accelerate \u2587\u2587\u2587\u2587\u2587\u2587\u2587\u2587 or recognize revenue outside the ordinary course of business;\n(vi) make or change any material Tax election, change an annual accounting period, adopt or change any accounting method with respect to the Assets or the Business that would adversely affect the tax treatment of the Assets for the Purchaser;\n(vii) fail to maintain in effect insurance of such types, covering such risks and with amounts and deductibles as are in place on the date of this Agreement solely with respect to the Business and the Assets;\n(viii) change, amend or otherwise modify any accounting practice or policy with respect to the Business, except as required by US GAAP or Law; or\n(ix) authorize, or commit or agree to take, any of the foregoing actions. If Seller desires to take any action described in this Section 5.01, Seller may, prior to taking any such action, request Purchaser\u2019s consent via an electronic mail and facsimile (with transmission confirmed) to the individuals listed on Exhibit J. Purchaser shall be deemed to have consented to such action unless Purchaser notifies the Seller in writing by 11:59 p.m. (Pacific time) on the fifth Business Day following delivery of all notices required in the preceding sentence that Purchaser does not consent to such action.", "samples": [{"hash": "bqTmvCroxZN", "uri": "/contracts/bqTmvCroxZN#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement", "score": 31.3408622742, "published": true}, {"hash": "aI6Ek4xRA5j", "uri": "/contracts/aI6Ek4xRA5j#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (Verisign Inc/Ca)", "score": 21.0, "published": true}, {"hash": "5Y2CKzmfugy", "uri": "/contracts/5Y2CKzmfugy#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (TNS Inc)", "score": 21.0, "published": true}], "size": 531, "hash": "548c93492e208af00e4202c39ee54ee3", "id": 1}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "buyer-parent", "type": "clause", "offset": [117, 129]}, {"key": "seller-parent", "type": "definition", "offset": [193, 206]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [238, 272]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [273, 302]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [312, 339]}, {"key": "to-maintain", "type": "clause", "offset": [340, 351]}, {"key": "business-organization", "type": "clause", "offset": [384, 405]}, {"key": "the-rights", "type": "clause", "offset": [448, 458]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [610, 640]}, {"key": "the-closing-date", "type": "clause", "offset": [669, 685]}, {"key": "permits-required", "type": "definition", "offset": [738, 754]}, {"key": "conduct-of-the-business", "type": "definition", "offset": [763, 786]}, {"key": "ownership-and-use", "type": "clause", "offset": [817, 834]}, {"key": "the-purchased-assets", "type": "definition", "offset": [838, 858]}, {"key": "obligations-of-the-business", "type": "clause", "offset": [895, 922]}, {"key": "assets-included", "type": "clause", "offset": [965, 980]}, {"key": "same-condition", "type": "clause", "offset": [1012, 1026]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [1047, 1069]}, {"key": "subject-to", "type": "clause", "offset": [1071, 1081]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [1082, 1106]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1124, 1145]}, {"key": "without-modification", "type": "definition", "offset": [1146, 1166]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1167, 1189]}, {"key": "as-required-by", "type": "clause", "offset": [1198, 1212]}, {"key": "applicable-law", "type": "clause", "offset": [1213, 1227]}, {"key": "assigned-contracts", "type": "clause", "offset": [1389, 1407]}, {"key": "books-and-records", "type": "definition", "offset": [1426, 1443]}, {"key": "in-accordance-with", "type": "clause", "offset": [1444, 1462]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1489, 1513]}, {"key": "applicable-to", "type": "definition", "offset": [1528, 1541]}, {"key": "any-action", "type": "definition", "offset": [1647, 1657]}, {"key": "events-or-conditions", "type": "clause", "offset": [1695, 1715]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Buyer Parent (which consent shall not be unreasonably withheld or delayed), Seller Parent shall (x) conduct the Business in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact its current Business organization, operations and franchise and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having relationships with the Business. Without limiting the foregoing, from the date hereof until the Closing Date, Seller Parent shall:\n(a) preserve and maintain all Permits required for the conduct of the Business as currently conducted or the ownership and use of the Purchased Assets;\n(b) pay the debts, Taxes and other obligations of the Business when due;\n(c) maintain the properties and assets included in the Purchased Assets in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(e) defend and protect the properties and assets included in the Purchased Assets from infringement or usurpation;\n(f) perform all of its obligations under all Assigned Contracts;\n(g) maintain the Books and Records in accordance with past practice;\n(h) comply in all material respects with all Laws applicable to the conduct of the Business or the ownership and use of the Purchased Assets; and\n(i) not take or permit any action that would cause any of the changes, events or conditions described in Section 4.06 to occur.", "samples": [{"hash": "jIojUAiKlip", "uri": "/contracts/jIojUAiKlip#conduct-of-business-prior-to-the-closing", "label": "Master Purchase Agreement (Emcore Corp)", "score": 23.5982208252, "published": true}, {"hash": "ix952i52ODN", "uri": "/contracts/ix952i52ODN#conduct-of-business-prior-to-the-closing", "label": "Master Purchase Agreement (Emcore Corp)", "score": 23.3353862762, "published": true}], "size": 79, "hash": "e5edefcf454ad12c41ce9b9296a540cd", "id": 2}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-the-parties", "type": "clause", "offset": [114, 128]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [342, 376]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [377, 406]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [416, 443]}, {"key": "to-maintain", "type": "clause", "offset": [444, 455]}, {"key": "the-current", "type": "clause", "offset": [476, 487]}, {"key": "the-rights", "type": "clause", "offset": [592, 602]}, {"key": "business-relationships", "type": "definition", "offset": [732, 754]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [789, 819]}, {"key": "the-closing-date", "type": "clause", "offset": [848, 864]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [1042, 1069]}, {"key": "assets-owned", "type": "clause", "offset": [1112, 1124]}, {"key": "same-condition", "type": "clause", "offset": [1156, 1170]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [1191, 1213]}, {"key": "subject-to", "type": "clause", "offset": [1215, 1225]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [1226, 1250]}, {"key": "to-amend", "type": "definition", "offset": [1281, 1289]}, {"key": "partnership-charter-documents", "type": "definition", "offset": [1294, 1323]}, {"key": "to-the-partnership", "type": "clause", "offset": [1338, 1356]}, {"key": "royale-charter-documents", "type": "definition", "offset": [1365, 1389]}, {"key": "outstanding-capital-stock", "type": "clause", "offset": [1470, 1495]}, {"key": "partnership-interest", "type": "definition", "offset": [1497, 1517]}, {"key": "other-securities", "type": "definition", "offset": [1525, 1541]}, {"key": "set-aside", "type": "clause", "offset": [1558, 1567]}, {"key": "dividend-or-distribution", "type": "definition", "offset": [1579, 1603]}, {"key": "other-distribution", "type": "clause", "offset": [1663, 1681]}, {"key": "in-respect-of", "type": "clause", "offset": [1682, 1695]}, {"key": "subsidiary-of", "type": "definition", "offset": [1765, 1778]}, {"key": "applicable-person", "type": "definition", "offset": [1783, 1800]}, {"key": "necessary-for", "type": "definition", "offset": [1881, 1894]}, {"key": "obligations-of-the-partners", "type": "clause", "offset": [1903, 1930]}, {"key": "options-to-acquire", "type": "clause", "offset": [2092, 2110]}, {"key": "issuance-of-securities", "type": "clause", "offset": [2182, 2204]}, {"key": "exercise-of", "type": "clause", "offset": [2214, 2225]}, {"key": "outstanding-options", "type": "definition", "offset": [2226, 2245]}, {"key": "conversion-of-outstanding-securities", "type": "clause", "offset": [2277, 2313]}, {"key": "offer-to-purchase", "type": "definition", "offset": [2404, 2421]}, {"key": "rights-to-acquire", "type": "clause", "offset": [2541, 2558]}, {"key": "any-other-person", "type": "definition", "offset": [2740, 2756]}, {"key": "current-assets", "type": "definition", "offset": [2785, 2799]}, {"key": "fixed-or-capital-assets", "type": "definition", "offset": [2886, 2909]}, {"key": "dispose-of", "type": "definition", "offset": [2996, 3006]}, {"key": "licenses-in", "type": "definition", "offset": [3223, 3234]}, {"key": "contracts-that", "type": "clause", "offset": [3314, 3328]}, {"key": "in-force", "type": "definition", "offset": [3333, 3341]}, {"key": "disclosure-schedules", "type": "definition", "offset": [3397, 3417]}, {"key": "title-to", "type": "clause", "offset": [3499, 3507]}, {"key": "working-interests", "type": "definition", "offset": [3515, 3532]}, {"key": "oil-and-gas", "type": "definition", "offset": [3536, 3547]}, {"key": "mineral-properties", "type": "clause", "offset": [3551, 3569]}, {"key": "for-the-benefit-of", "type": "definition", "offset": [3585, 3603]}, {"key": "third-parties", "type": "clause", "offset": [3604, 3617]}, {"key": "wholly-owned-subsidiary", "type": "definition", "offset": [3630, 3653]}, {"key": "to-issue", "type": "clause", "offset": [3887, 3895]}, {"key": "equity-awards", "type": "definition", "offset": [3936, 3949]}, {"key": "partnership-benefit-plans", "type": "clause", "offset": [3960, 3985]}, {"key": "royale-benefit-plans", "type": "definition", "offset": [4023, 4043]}, {"key": "incentive-plans", "type": "definition", "offset": [4069, 4084]}, {"key": "additional-capital-stock", "type": "clause", "offset": [4093, 4117]}, {"key": "shares-issuable", "type": "clause", "offset": [4197, 4212]}, {"key": "officers-and-directors", "type": "clause", "offset": [4216, 4238]}, {"key": "compensation-for-services", "type": "definition", "offset": [4242, 4267]}, {"key": "the-agreements", "type": "clause", "offset": [4280, 4294]}, {"key": "registration-statement-on-form-s-8", "type": "clause", "offset": [4312, 4346]}, {"key": "the-sec", "type": "definition", "offset": [4358, 4365]}, {"key": "on-april", "type": "clause", "offset": [4376, 4384]}, {"key": "rights-of", "type": "clause", "offset": [4424, 4433]}, {"key": "any-debt", "type": "definition", "offset": [4476, 4484]}, {"key": "equity-securities", "type": "definition", "offset": [4488, 4505]}, {"key": "indebtedness-for-borrowed-money", "type": "clause", "offset": [4636, 4667]}, {"key": "debt-securities", "type": "definition", "offset": [4719, 4734]}, {"key": "other-rights", "type": "definition", "offset": [4766, 4778]}, {"key": "applicable-subsidiaries", "type": "definition", "offset": [4868, 4891]}, {"key": "from-time-to-time", "type": "clause", "offset": [4939, 4956]}, {"key": "revolving-credit-facility", "type": "definition", "offset": [4995, 5020]}, {"key": "bank-credit-facility", "type": "definition", "offset": [5136, 5156]}, {"key": "discharge-or", "type": "clause", "offset": [5171, 5183]}, {"key": "material-claims", "type": "definition", "offset": [5196, 5211]}, {"key": "material-liabilities", "type": "definition", "offset": [5213, 5233]}, {"key": "material-obligations", "type": "definition", "offset": [5237, 5257]}, {"key": "the-payment", "type": "clause", "offset": [5339, 5350]}, {"key": "the-notes", "type": "clause", "offset": [5684, 5693]}, {"key": "royale-financial-statements", "type": "definition", "offset": [5710, 5737]}, {"key": "similar-contract", "type": "definition", "offset": [5846, 5862]}, {"key": "increase-in-salary", "type": "clause", "offset": [5905, 5923]}, {"key": "other-compensation", "type": "definition", "offset": [5933, 5951]}, {"key": "employee-benefit", "type": "clause", "offset": [5975, 5991]}, {"key": "officers-or-employees", "type": "clause", "offset": [6018, 6039]}, {"key": "terms-of-contracts", "type": "clause", "offset": [6186, 6204]}, {"key": "effect-on-the", "type": "clause", "offset": [6217, 6230]}, {"key": "material-contract", "type": "clause", "offset": [6340, 6357]}, {"key": "in-existence", "type": "definition", "offset": [6523, 6535]}, {"key": "execution-of-this-agreement", "type": "clause", "offset": [6555, 6582]}, {"key": "full-force-and-effect", "type": "definition", "offset": [6600, 6621]}, {"key": "without-modification", "type": "definition", "offset": [6622, 6642]}, {"key": "all-insurance-policies", "type": "definition", "offset": [6643, 6665]}, {"key": "as-required-by", "type": "clause", "offset": [6674, 6688]}, {"key": "all-contracts", "type": "clause", "offset": [6828, 6841]}, {"key": "relating-to", "type": "definition", "offset": [6842, 6853]}, {"key": "books-and-records", "type": "definition", "offset": [6920, 6937]}, {"key": "in-accordance-with", "type": "clause", "offset": [6938, 6956]}, {"key": "in-all-material-respects", "type": "definition", "offset": [6983, 7007]}, {"key": "all-applicable-laws", "type": "clause", "offset": [7013, 7032]}, {"key": "any-action", "type": "definition", "offset": [7061, 7071]}, {"key": "events-or-conditions", "type": "clause", "offset": [7109, 7129]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by the parties (which consent shall not be unreasonably withheld or delayed), each of Parent, Royale and their respective Subsidiaries, Matrix, the Partnership and its Subsidiaries, shall (x) conduct their respective businesses in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of each of their respective business organizations and to preserve the rights, franchises, goodwill and relationships of the respective employees, customers, lenders, suppliers, regulators and others having business relationships with such business organizations. Without limiting the foregoing, from the date hereof until the Closing Date, each of Parent, Royale and their respective Subsidiaries, Matrix, the Partnership and its Subsidiaries, shall:\n(a) preserve and maintain all of its Permits;\n(b) pay its debts, Taxes and other obligations when due;\n(c) maintain the properties and assets owned, operated or used by it in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) not (i) amend or propose to amend the Partnership Charter Documents, with respect to The Partnership, or the Royale Charter Documents, with respect to Royale, (ii) split, combine, subdivide or reclassify any their outstanding capital stock, partnership interest or any other securities, (iii) declare, set aside or pay any dividend or distribution payable in cash, stock, property or otherwise, or make any other distribution in respect of any securities, except for (A) dividends by a direct or wholly-owned Subsidiary of the applicable Person to its parent, (B) with respect to the Partnership, distributions in the amount necessary for any Tax obligations of the Partners, or (iv) repurchase, redeem or otherwise acquire, or modify or amend, any capital stock, partnership interest or any other securities or any rights, warrants or options to acquire any such securities except, with respect to each of the foregoing, the issuance of securities upon the exercise of outstanding options, warrants, rights, or upon the conversion of outstanding securities;\n(e) not, nor shall it permit any of its Subsidiaries to (i) redeem, purchase, acquire or offer to purchase or acquire any of its or their capital stock, partnership interest or any other securities or any options, warrants or rights to acquire any of its or their securities or any security convertible into or exchangeable for its or their securities, (ii) make any acquisition of any capital stock, assets or businesses of any other Person other than expenditures for current assets in the ordinary course of business consistent with past practice and expenditures for fixed or capital assets in the ordinary course of business consistent with past practice, (iii) sell, pledge, dispose of or encumber any assets or businesses that are material to the Royale or the Partnership, as applicable, or their respective Subsidiaries, except, with respect to each of the foregoing, (A) sales, leases, rentals and licenses in the ordinary course of business consistent with past practice, (B) pursuant to Contracts that are in force at the date of this Agreement and are disclosed in the Disclosure Schedules, (C) dispositions of obsolete or worthless assets, and (D) the transfer of legal title to direct working interests in oil and gas or mineral properties held by Royale for the benefit of third parties to Royale\u2019s wholly owned Subsidiary, Royale DWI Interests, LLC, or (iv) enter into any Contract with respect to any of the foregoing items (i) through (iii);\n(f) not, nor shall it permit any of its Subsidiaries to (i) issue, sell, pledge, grant or dispose of, or agree to issue, sell, pledge, grant or dispose of, any equity awards under any Partnership Benefit Plans, with respect to the Partnership, or Royale Benefit Plans, with respect to Royale, incentive plans, or any additional capital stock, partnership interest or any other securities (except, with respect to Royale, shares issuable to officers and directors as compensation for services pursuant to the agreements described in the registration statement on Form S-8 filed with the SEC by Royale on April 16, 2016), or any options, warrants or rights of any kind to acquire any securities, or of any debt or equity securities convertible into or exchangeable for its capital stock, partnership interest or any other securities, or (ii) incur or assume any indebtedness for borrowed money or guarantee any indebtedness or issue or sell any debt securities or options, warrants, calls or other rights to acquire any debt securities of the Partnership or Royale, respectively, or any of its applicable Subsidiaries; except each of Royale and the Partnership may from time to time, borrow, repay and reborrow under its revolving credit facility, and pledge their properties, issue debt securities and amend, modify, increase, extend, replace or refinance such bank credit facility;\n(g) not pay, discharge or satisfy any material claims, material liabilities or material obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge or satisfaction (i) of any such material claims, material liabilities or material obligations in the ordinary course of business consistent with past practice or (ii) of material claims, material liabilities or material obligations reflected or reserved against in, or contemplated by, the Matrix Financial Statements (or the notes thereto) or the Royale Financial Statements (or the notes thereto);\n(h) not enter into, amend, modify or renew any employment, consulting, severance or similar contract with, pay any bonus or grant any material increase in salary, wage or other compensation or any increase in any employee benefit to, any of its directors, officers or employees, except in each such case (i) as may be required by applicable Law, or (ii) to satisfy obligations existing as of the date hereof pursuant to the terms of contracts that are in effect on the date hereof;\n(i) except in the ordinary course of business, not materially modify or amend, or terminate any Material Contract, or waive, relinquish, release or terminate any material right or material claim, or enter into any contract that would have been a Material Contract if it had been in existence at the time of the execution of this Agreement;\n(j) continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(k) defend and protect its properties and assets from infringement or usurpation;\n(l) perform all of its obligations under all Contracts relating to or affecting its properties, assets or business;\n(m) maintain its books and records in accordance with past practice;\n(n) comply in all material respects with all applicable Laws; and\n(o) not take or permit any action that would cause any of the changes, events or conditions described in Section 4.08, with respect to Partnership, or described in Section 5.08, with respect to Royale, to occur.", "samples": [{"hash": "eMey366drHf", "uri": "/contracts/eMey366drHf#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Exchange (Royale Energy, Inc.)", "score": 29.1916503906, "published": true}, {"hash": "c6EdapOsWCi", "uri": "/contracts/c6EdapOsWCi#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Exchange (Royale Energy, Inc.)", "score": 29.1916503906, "published": true}, {"hash": "8WhK0ViVyl4", "uri": "/contracts/8WhK0ViVyl4#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Exchange (Royale Energy, Inc.)", "score": 29.1916503906, "published": true}], "size": 66, "hash": "30d22703387f536df273da81615efa62", "id": 5}, {"snippet_links": [{"key": "consent-of-buyer", "type": "clause", "offset": [16, 32]}, {"key": "contemplated-by-this-agreement", "type": "clause", "offset": [132, 162]}, {"key": "closing-agreements", "type": "definition", "offset": [168, 186]}, {"key": "the-restructuring", "type": "clause", "offset": [190, 207]}, {"key": "section-51", "type": "clause", "offset": [229, 240]}, {"key": "seller-disclosure-schedule", "type": "definition", "offset": [248, 274]}, {"key": "as-required-by-law", "type": "clause", "offset": [282, 300]}, {"key": "the-pre", "type": "clause", "offset": [318, 325]}, {"key": "closing-period", "type": "definition", "offset": [326, 340]}, {"key": "seller-shall", "type": "clause", "offset": [342, 354]}, {"key": "sold-companies", "type": "definition", "offset": [365, 379]}, {"key": "in-respect-of", "type": "clause", "offset": [420, 433]}, {"key": "defense-business", "type": "definition", "offset": [445, 461]}, {"key": "subject-to", "type": "clause", "offset": [482, 492]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [514, 548]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [590, 625]}, {"key": "to-maintain", "type": "clause", "offset": [626, 637]}, {"key": "relationships-with-suppliers", "type": "clause", "offset": [651, 679]}, {"key": "other-third-parties", "type": "clause", "offset": [696, 715]}, {"key": "material-business-relationships", "type": "clause", "offset": [723, 754]}, {"key": "relating-to", "type": "definition", "offset": [1337, 1348]}, {"key": "in-the-case", "type": "clause", "offset": [1441, 1452]}, {"key": "certificate-of-incorporation-or-bylaws", "type": "clause", "offset": [1512, 1550]}, {"key": "organizational-documents", "type": "definition", "offset": [1565, 1589]}, {"key": "stock-or-other-ownership-interests", "type": "clause", "offset": [1675, 1709]}, {"key": "convertible-securities", "type": "definition", "offset": [1737, 1759]}, {"key": "rights-of", "type": "clause", "offset": [1769, 1778]}, {"key": "to-acquire", "type": "definition", "offset": [1788, 1798]}, {"key": "seller-options", "type": "definition", "offset": [1917, 1931]}, {"key": "capital-expenditures", "type": "definition", "offset": [2126, 2146]}, {"key": "in-the-aggregate", "type": "definition", "offset": [2169, 2185]}, {"key": "following-the-closing", "type": "clause", "offset": [2186, 2207]}, {"key": "company-products", "type": "definition", "offset": [2319, 2335]}, {"key": "change-in", "type": "definition", "offset": [2355, 2364]}, {"key": "the-selling", "type": "clause", "offset": [2365, 2376]}, {"key": "terms-of-sale", "type": "clause", "offset": [2405, 2418]}, {"key": "collection-practices", "type": "definition", "offset": [2422, 2442]}, {"key": "consistent-with-past-practices", "type": "definition", "offset": [2486, 2516]}, {"key": "close-of-business", "type": "definition", "offset": [2533, 2550]}, {"key": "business-day", "type": "definition", "offset": [2558, 2570]}, {"key": "the-closing-date", "type": "clause", "offset": [2593, 2609]}, {"key": "set-aside", "type": "clause", "offset": [2620, 2629]}, {"key": "other-distribution", "type": "clause", "offset": [2659, 2677]}, {"key": "the-capital-stock", "type": "clause", "offset": [2692, 2709]}, {"key": "outstanding-shares", "type": "clause", "offset": [2913, 2931]}, {"key": "acquisition-of-stock-or-assets", "type": "clause", "offset": [3057, 3087]}, {"key": "business-organization", "type": "clause", "offset": [3140, 3161]}, {"key": "inventory-and-other-assets", "type": "clause", "offset": [3221, 3247]}, {"key": "pursuant-to", "type": "clause", "offset": [3287, 3298]}, {"key": "existing-contracts", "type": "definition", "offset": [3299, 3317]}, {"key": "to-buyer", "type": "definition", "offset": [3333, 3341]}, {"key": "prior-to-the", "type": "clause", "offset": [3342, 3354]}, {"key": "date-hereof", "type": "clause", "offset": [3355, 3366]}, {"key": "otherwise-dispose-of", "type": "definition", "offset": [3417, 3437]}, {"key": "issued-patent", "type": "definition", "offset": [3774, 3787]}, {"key": "the-company", "type": "definition", "offset": [3840, 3851]}, {"key": "owned-intellectual-property", "type": "clause", "offset": [3852, 3879]}, {"key": "each-case", "type": "definition", "offset": [3884, 3893]}, {"key": "products-and-services", "type": "definition", "offset": [3961, 3982]}, {"key": "exclusive-licenses", "type": "clause", "offset": [4127, 4145]}, {"key": "property-granted", "type": "clause", "offset": [4176, 4192]}, {"key": "make-available", "type": "definition", "offset": [4244, 4258]}, {"key": "property-used", "type": "clause", "offset": [4487, 4500]}, {"key": "necessary-for", "type": "definition", "offset": [4507, 4520]}, {"key": "operation-of-the-businesses", "type": "clause", "offset": [4525, 4552]}, {"key": "material-contract", "type": "clause", "offset": [4843, 4860]}, {"key": "material-respect", "type": "definition", "offset": [4868, 4884]}, {"key": "new-contract", "type": "definition", "offset": [4903, 4915]}, {"key": "entered-into", "type": "clause", "offset": [4953, 4965]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [4979, 5001]}, {"key": "license-to", "type": "clause", "offset": [5030, 5040]}, {"key": "commercially-available", "type": "definition", "offset": [5138, 5160]}, {"key": "computer-software", "type": "definition", "offset": [5161, 5178]}, {"key": "design-tools", "type": "clause", "offset": [5192, 5204]}, {"key": "terms-and", "type": "clause", "offset": [5217, 5226]}, {"key": "not-to-exceed", "type": "definition", "offset": [5266, 5279]}, {"key": "termination-of", "type": "definition", "offset": [5344, 5358]}, {"key": "material-license", "type": "definition", "offset": [5363, 5379]}, {"key": "right-to", "type": "clause", "offset": [5383, 5391]}, {"key": "third-party-intellectual-property", "type": "definition", "offset": [5396, 5429]}, {"key": "agree-to", "type": "clause", "offset": [5563, 5571]}, {"key": "most-favored-nation", "type": "definition", "offset": [5609, 5628]}, {"key": "line-of-business", "type": "clause", "offset": [5716, 5732]}, {"key": "any-person", "type": "definition", "offset": [5741, 5751]}, {"key": "any-area", "type": "definition", "offset": [5758, 5766]}, {"key": "engaging-in", "type": "definition", "offset": [5770, 5781]}, {"key": "the-development", "type": "clause", "offset": [5834, 5849]}, {"key": "distribution-of", "type": "clause", "offset": [5877, 5892]}, {"key": "products-or-services", "type": "clause", "offset": [5910, 5930]}, {"key": "material-trade-secrets", "type": "definition", "offset": [5952, 5974]}, {"key": "other-material", "type": "clause", "offset": [5978, 5992]}, {"key": "confidential-information-of", "type": "clause", "offset": [6008, 6035]}, {"key": "disclosure-agreement", "type": "definition", "offset": [6109, 6129]}, {"key": "contributions-to", "type": "clause", "offset": [6215, 6231]}, {"key": "investments-in", "type": "clause", "offset": [6236, 6250]}, {"key": "any-other-person", "type": "definition", "offset": [6252, 6268]}, {"key": "subsidiary-of", "type": "definition", "offset": [6307, 6320]}, {"key": "except-to-the-extent", "type": "clause", "offset": [6341, 6361]}, {"key": "company-benefit-plan", "type": "clause", "offset": [6381, 6401]}, {"key": "seller-benefit-plan", "type": "definition", "offset": [6405, 6424]}, {"key": "in-existence", "type": "definition", "offset": [6425, 6437]}, {"key": "applicable-law", "type": "clause", "offset": [6478, 6492]}, {"key": "other-than-for-cause", "type": "definition", "offset": [6517, 6537]}, {"key": "any-business", "type": "definition", "offset": [6539, 6551]}, {"key": "the-position", "type": "clause", "offset": [6598, 6610]}, {"key": "vice-president", "type": "definition", "offset": [6615, 6629]}, {"key": "senior-engineer", "type": "clause", "offset": [6656, 6671]}, {"key": "other-individual", "type": "definition", "offset": [6693, 6709]}, {"key": "salary-grade", "type": "definition", "offset": [6715, 6727]}, {"key": "individual-consultants", "type": "clause", "offset": [6819, 6841]}, {"key": "services-for", "type": "clause", "offset": [6854, 6866]}, {"key": "aggregate-fees", "type": "definition", "offset": [6899, 6913]}, {"key": "the-compensation", "type": "clause", "offset": [7001, 7017]}, {"key": "benefits-of", "type": "clause", "offset": [7021, 7032]}, {"key": "business-employees", "type": "clause", "offset": [7257, 7275]}, {"key": "payment-of", "type": "clause", "offset": [7307, 7317]}, {"key": "cash-bonus", "type": "clause", "offset": [7473, 7483]}, {"key": "other-incentive-compensation", "type": "definition", "offset": [7511, 7539]}], "snippet": "(a) Without the consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed, except (x) as otherwise contemplated by this Agreement, the Closing Agreements or the Restructuring, (y) as disclosed on Section 5.1 of the Seller Disclosure Schedule or (z) as required by Law or Order, during the Pre-Closing Period, Seller shall cause the Sold Companies to conduct their businesses (other than in respect of the Legacy Defense Business, which shall not be subject to this Section 5.1(a)) in the ordinary course of business and, to the extent consistent therewith, use commercially reasonable efforts to maintain satisfactory relationships with suppliers, customers, and other third parties having material business relationships with the Sold Companies (other than in respect of the Legacy Defense Business, which shall not be subject to this Section 5.1(a)).\n(b) In furtherance of Section 5.1(a), without the consent of Buyer, which consent shall not be unreasonably withheld, conditioned or delayed, except (x) as otherwise contemplated by this Agreement, the Closing Agreements or the Restructuring, (y) as disclosed on Section 5.1 of the Seller Disclosure Schedule or (z) as required by Law or Order, during the Pre-Closing Period, Seller shall cause each Sold Company (other than in respect of any actions relating to the Legacy Defense Business, which shall not be subject to this Section 5.1(b)) not to (and in the case of Section 5.1(b)(ii)(B), Seller shall not):\n(i) amend its certificate of incorporation or bylaws or comparable organizational documents;\n(ii) (A) issue, deliver, sell, pledge, dispose of or encumber any shares of capital stock or other ownership interests, or any options, warrants, convertible securities or other rights of any kind to acquire or receive any shares of capital stock or other ownership interests, in the Sold Companies, or (B) issue or grant any Seller Options;\n(iii) reclassify, combine, split, subdivide, redeem, purchase or otherwise acquire any shares of capital stock or ownership interests;\n(iv) (A) incur any obligations or commitments to make any capital expenditures in excess of $250,000 in the aggregate following the Closing, or (B) cease to continue to make capital expenditures in the ordinary course of business;\n(v) with respect to Company Products, make any material change in the selling, distribution, advertising, terms of sale or collection practices outside of the ordinary course of business consistent with past practices;\n(vi) after the close of business on the Business Day immediately preceding the Closing Date, declare, set aside, make or pay any dividend or other distribution in respect of the capital stock or other ownership interests of any of the Sold Companies or repurchase, redeem or otherwise acquire, or grant any rights or enter into any Contracts or commitments to repurchase, redeem or acquire, any outstanding shares of the capital stock or ownership interests of any of the Sold Companies;\n(vii) acquire (whether by merger, consolidation or acquisition of stock or assets or otherwise) any corporation, partnership or other business organization or division thereof or any assets, other than purchases of inventory and other assets in the ordinary course of business and pursuant to existing Contracts made available to Buyer prior to the date hereof;\n(viii) sell, lease, license, assign, transfer or otherwise dispose of (whether by merger, consolidation or acquisition of stock or assets or otherwise) (A) any corporation, partnership or other business organization or division thereof or (B) any Inventory, equipment, assets, rights or properties (including Intellectual Property) for consideration in excess of $50,000, or abandon or allow to expire any issued patent or material registration or application included in the Company-Owned Intellectual Property, in each case, other than (w) sales or dispositions of Inventory and licenses of products and services, in each case, in the ordinary course of business, (x) pursuant to existing Contracts made available to Buyer prior to the date hereof, (y) non-exclusive licenses of Company-Owned Intellectual Property granted in the ordinary course of business as necessary to make available the Company Products or (z) sales of dispositions of obsolete and worthless assets or scrap;\n(ix) sell, lease, license, assign, pledge transfer, abandon, permit any Lien on or otherwise dispose of any Company-Owned Intellectual Property used in or necessary for the operation of the businesses of the Sold Companies, other than (x) non-exclusive licenses of Company-Owned Intellectual Property granted in the ordinary course of business or (y) pursuant to existing Contracts made available to Buyer prior to the date hereof;\n(x) modify, amend, terminate or waive any rights under any Material Contract in any material respect or enter into any new Contract that would be a Material Contract if entered into prior to the date of this Agreement;\n(xi) acquire or obtain any license to any Intellectual Property or technology other than in the ordinary course of business (including commercially available computer software available or design tools on standard terms and in object-code form) for consideration not to exceed $100,000 in the aggregate;\n(xii) permit the loss, expiration or termination of any material license or right to any third party Intellectual Property used in or necessary for the operation of the businesses of the Sold Companies other than in the ordinary course of business;\n(xiii) agree to by any exclusivity, non-competition, most favored nation, or similar provision or covenant restricting the Sold Companies from competing in any line of business or with any Person or in any area or engaging in any activity or business (including with respect to the development, manufacture, marketing or distribution of their respective products or services);\n(xiv) disclose any material trade secrets or other material proprietary or confidential information of the Sold Companies to any Person not subject to a confidentiality or non-disclosure agreement;\n(xv) except in the ordinary course of business, make any loans, advances or capital contributions to, or investments in, any other Person (other than in a Subsidiary or sister Subsidiary of such Person);\n(xvi) except to the extent required under any Company Benefit Plan or Seller Benefit Plan in existence as of the date hereof or as required by applicable Law: (A) hire or terminate (other than for cause) any Business Employee who holds (or, if hired, would hold) the position of \u201cvice president\u201d, \u201cdirector\u201d, \u201cmanager\u201d, \u201csenior engineer\u201d, \u201cexecutive\u201d or any other individual in a salary grade of 07 or higher or any individual consultant of the Sold Companies, except with respect to individual consultants who perform services for any of the Sold Companies whose aggregate fees are less than $100,000, (B) increase or establish, or commit to increase or establish, the compensation or benefits of any Business Employee or individual consultant of the Sold Companies, (C) establish, adopt, enter into, amend in any material respect or terminate any Seller Benefit Plan or Company Benefit Plan, in each case, affecting any Business Employees, (D) accelerate the vesting or payment of any compensation or benefits under any Seller Benefit Plan or Company Benefit Plan, in each case, with respect to any Business Employees, or (E) grant any cash bonus, incentive, performance or other incentive compensation to any Business Employee;", "samples": [{"hash": "7wHmvAqeNsk", "uri": "/contracts/7wHmvAqeNsk#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (SMART Global Holdings, Inc.)", "score": 28.3867206573, "published": true}, {"hash": "7c4uujmmUBE", "uri": "/contracts/7c4uujmmUBE#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (SMART Global Holdings, Inc.)", "score": 28.3210124969, "published": true}, {"hash": "6hnanigzXof", "uri": "/contracts/6hnanigzXof#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (SMART Global Holdings, Inc.)", "score": 25.6488704681, "published": true}], "size": 70, "hash": "0a871bc4b7f4b127dde2099330ff9da7", "id": 3}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "the-closing", "type": "clause", "offset": [27, 38]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-buyer", "type": "clause", "offset": [114, 122]}, {"key": "seller-shall", "type": "clause", "offset": [199, 211]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [285, 319]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [320, 349]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [359, 386]}, {"key": "to-maintain", "type": "clause", "offset": [387, 398]}, {"key": "the-current", "type": "clause", "offset": [419, 430]}, {"key": "the-rights", "type": "clause", "offset": [499, 509]}, {"key": "relationships-with-the-company", "type": "clause", "offset": [637, 667]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld, conditioned or delayed), Seller shall, and shall cause the Company to, (x) conduct the business of the Company in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of the Company and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Company.", "samples": [{"hash": "okqUjvAav8", "uri": "/contracts/okqUjvAav8#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (HWH International Inc.)", "score": 37.0985641479, "published": true}, {"hash": "76EE41v631H", "uri": "/contracts/76EE41v631H#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Alset Inc.)", "score": 37.0985641479, "published": true}, {"hash": "anQEN87Xg9Y", "uri": "/contracts/anQEN87Xg9Y#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Alset Inc.)", "score": 36.3867225647, "published": true}], "size": 33, "hash": "3854459d0a5376cc33311ad6e8f12f40", "id": 6}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-holdings", "type": "clause", "offset": [114, 125]}, {"key": "conduct-the-business", "type": "definition", "offset": [227, 247]}, {"key": "company-and-its-subsidiaries", "type": "definition", "offset": [258, 286]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [287, 321]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [322, 351]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [361, 388]}, {"key": "to-maintain", "type": "clause", "offset": [389, 400]}, {"key": "the-current", "type": "clause", "offset": [421, 432]}, {"key": "the-rights", "type": "clause", "offset": [525, 535]}, {"key": "business-relationships", "type": "definition", "offset": [654, 676]}, {"key": "the-target-company", "type": "clause", "offset": [682, 700]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [723, 753]}, {"key": "the-closing-date", "type": "clause", "offset": [782, 798]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [932, 959]}, {"key": "assets-owned", "type": "clause", "offset": [1002, 1014]}, {"key": "same-condition", "type": "clause", "offset": [1046, 1060]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [1081, 1103]}, {"key": "subject-to", "type": "clause", "offset": [1105, 1115]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [1116, 1140]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1158, 1179]}, {"key": "without-modification", "type": "definition", "offset": [1180, 1200]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1201, 1223]}, {"key": "as-required-by", "type": "clause", "offset": [1232, 1246]}, {"key": "all-contracts", "type": "clause", "offset": [1386, 1399]}, {"key": "relating-to", "type": "definition", "offset": [1400, 1411]}, {"key": "books-and-records", "type": "definition", "offset": [1478, 1495]}, {"key": "in-accordance-with", "type": "clause", "offset": [1496, 1514]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1541, 1565]}, {"key": "all-applicable-laws", "type": "clause", "offset": [1571, 1590]}, {"key": "disclosure-schedules", "type": "definition", "offset": [1718, 1738]}, {"key": "any-action", "type": "definition", "offset": [1767, 1777]}, {"key": "events-or-conditions", "type": "clause", "offset": [1815, 1835]}, {"key": "section-38", "type": "clause", "offset": [1849, 1860]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Holdings (which consent shall not be unreasonably conditioned, withheld or delayed), Target Company shall (x) conduct the business of Target Company and its Subsidiaries in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of Target Company and its Subsidiaries and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Target Company and its Subsidiaries. Without limiting the foregoing, from the date hereof until the Closing Date, Target Company shall, and shall cause each of its Subsidiaries to:\n(a) preserve and maintain all of its Permits;\n(b) pay its debts, Taxes and other obligations when due;\n(c) maintain the properties and assets owned, operated or used by it in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(e) defend and protect its properties and assets from infringement or usurpation;\n(f) perform all of its obligations under all Contracts relating to or affecting its properties, assets or business;\n(g) maintain its books and records in accordance with past practice;\n(h) comply in all material respects with all applicable Laws;\n(i) not incur any Indebtedness outside of the ordinary course of business or other than that set forth in Section 3.29 of the Disclosure Schedules; and\n(j) not take or permit any action that would cause any of the changes, events or conditions described in Section 3.8 to occur.", "samples": [{"hash": "l9u2pNmTlCi", "uri": "/contracts/l9u2pNmTlCi#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Merger (AIRO Group Holdings, Inc.)", "score": 36.1403160095, "published": true}, {"hash": "fmxEe0V9uC7", "uri": "/contracts/fmxEe0V9uC7#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Merger (AIRO Group Holdings, Inc.)", "score": 36.1403160095, "published": true}, {"hash": "7VRetHAQtfj", "uri": "/contracts/7VRetHAQtfj#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Merger (AIRO Group Holdings, Inc.)", "score": 36.1403160095, "published": true}], "size": 69, "hash": "3445fa3abcdbe1861090e0a8cd2ab601", "id": 4}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-buyer", "type": "clause", "offset": [114, 122]}, {"key": "the-companies", "type": "definition", "offset": [217, 230]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [262, 296]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [297, 326]}, {"key": "growth-and-expansion", "type": "clause", "offset": [366, 386]}, {"key": "the-projections", "type": "clause", "offset": [390, 405]}, {"key": "to-buyer", "type": "definition", "offset": [415, 423]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [461, 488]}, {"key": "to-maintain", "type": "clause", "offset": [489, 500]}, {"key": "the-current", "type": "clause", "offset": [521, 532]}, {"key": "the-rights", "type": "clause", "offset": [603, 613]}, {"key": "business-relationships", "type": "definition", "offset": [732, 754]}, {"key": "set-aside", "type": "clause", "offset": [830, 839]}, {"key": "with-respect-to", "type": "clause", "offset": [886, 901]}, {"key": "outstanding-equity", "type": "definition", "offset": [906, 924]}, {"key": "engage-in-any", "type": "definition", "offset": [1009, 1022]}, {"key": "any-action", "type": "definition", "offset": [1038, 1048]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [1125, 1155]}, {"key": "the-closing-date", "type": "clause", "offset": [1184, 1200]}, {"key": "the-sellers", "type": "clause", "offset": [1202, 1213]}, {"key": "cannabis-licenses", "type": "definition", "offset": [1304, 1321]}, {"key": "to-pay", "type": "clause", "offset": [1347, 1353]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [1367, 1394]}, {"key": "assets-owned", "type": "clause", "offset": [1460, 1472]}, {"key": "same-condition", "type": "clause", "offset": [1511, 1525]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [1546, 1568]}, {"key": "subject-to", "type": "clause", "offset": [1570, 1580]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [1581, 1605]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1646, 1667]}, {"key": "without-modification", "type": "definition", "offset": [1668, 1688]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1689, 1711]}, {"key": "company-disclosure-schedules", "type": "clause", "offset": [1746, 1774]}, {"key": "as-required-by", "type": "clause", "offset": [1783, 1797]}, {"key": "all-contracts", "type": "clause", "offset": [1987, 2000]}, {"key": "relating-to", "type": "definition", "offset": [2001, 2012]}, {"key": "books-and-records", "type": "definition", "offset": [2104, 2121]}, {"key": "in-accordance-with", "type": "clause", "offset": [2122, 2140]}, {"key": "in-all-material-respects", "type": "definition", "offset": [2190, 2214]}, {"key": "all-applicable-laws", "type": "clause", "offset": [2220, 2239]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed), Sellers shall, and shall cause the Companies to, (x) conduct their business in the ordinary course of business consistent with past practice but taking into account the Companies\u2019 growth and expansion in the projections provided to Buyer, including any new dispensaries; (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of the Companies and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Companies and (z) not cause or permit any Company to (i) declare, set aside, or pay any dividend or make any distribution with respect to its outstanding equity or redeem, purchase, or otherwise acquire any outstanding equity, or (ii) otherwise engage in any practice, take any action, or enter into any transaction of the sort described in Section 4.17 above. Without limiting the foregoing, from the date hereof until the Closing Date, the Sellers shall:\n(a) cause the Companies to preserve and maintain all of its Permits, including the Cannabis Licenses;\n(b) cause the Companies to pay their debts, Taxes and other obligations when due;\n(c) cause the Companies to maintain the properties and assets owned, operated or used by Companies in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) cause the Companies to continue in full force and effect without modification all insurance policies identified in Section 4.13 of the Company Disclosure Schedules, except as required by applicable Law;\n(e) cause the Companies to defend and protect their properties and assets from infringement or usurpation;\n(f) cause the Companies to perform all of their obligations under all Contracts relating to or affecting its properties, assets or business;\n(g) cause the Companies to maintain their books and records in accordance with past practice;\n(h) cause the Companies to comply in all material respects with all applicable Laws; and\n(i) cause the Companies not to take or permit any action that would cause any of the changes, events, or conditions described in Section 4.17 to occur.", "samples": [{"hash": "ks2a13Xm1h2", "uri": "/contracts/ks2a13Xm1h2#conduct-of-business-prior-to-the-closing", "label": "Securities Purchase Agreement (TerrAscend Corp.)", "score": 32.8357276917, "published": true}, {"hash": "2OgAaXUv4fc", "uri": "/contracts/2OgAaXUv4fc#conduct-of-business-prior-to-the-closing", "label": "Securities Purchase Agreement (TerrAscend Corp.)", "score": 32.8357276917, "published": true}], "size": 29, "hash": "c3f6019cb2505104bd6d01c069032591", "id": 8}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-parent", "type": "clause", "offset": [114, 123]}, {"key": "the-company-shall", "type": "clause", "offset": [187, 204]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [245, 279]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [280, 309]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [319, 346]}, {"key": "to-maintain", "type": "clause", "offset": [347, 358]}, {"key": "the-current", "type": "clause", "offset": [379, 390]}, {"key": "the-rights", "type": "clause", "offset": [459, 469]}, {"key": "relationships-with-the-company", "type": "clause", "offset": [597, 627]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [629, 659]}, {"key": "the-closing-date", "type": "clause", "offset": [688, 704]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [790, 817]}, {"key": "assets-owned", "type": "clause", "offset": [860, 872]}, {"key": "same-condition", "type": "clause", "offset": [904, 918]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [939, 961]}, {"key": "subject-to", "type": "clause", "offset": [963, 973]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [974, 998]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1016, 1037]}, {"key": "without-modification", "type": "definition", "offset": [1038, 1058]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1059, 1081]}, {"key": "as-required-by", "type": "clause", "offset": [1090, 1104]}, {"key": "all-contracts", "type": "clause", "offset": [1244, 1257]}, {"key": "relating-to", "type": "definition", "offset": [1258, 1269]}, {"key": "books-and-records", "type": "definition", "offset": [1336, 1353]}, {"key": "in-accordance-with", "type": "clause", "offset": [1354, 1372]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1399, 1423]}, {"key": "all-applicable-laws", "type": "clause", "offset": [1429, 1448]}, {"key": "any-action", "type": "definition", "offset": [1477, 1487]}, {"key": "events-or-conditions", "type": "clause", "offset": [1525, 1545]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Parent (which consent shall not be unreasonably withheld or delayed), the Company shall (x) conduct the business of the Company in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of the Company and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Company. Without limiting the foregoing, from the date hereof until the Closing Date, the Company shall:\n(a) preserve and maintain all of its Permits;\n(b) pay its debts, Taxes and other obligations when due;\n(c) maintain the properties and assets owned, operated or used by it in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(e) defend and protect its properties and assets from infringement or usurpation;\n(f) perform all of its obligations under all Contracts relating to or affecting its properties, assets or business;\n(g) maintain its books and records in accordance with past practice;\n(h) comply in all material respects with all applicable Laws; and\n(i) not take or permit any action that would cause any of the changes, events or conditions described in Section 3.08 to occur.", "samples": [{"hash": "4xTAdELFd2l", "uri": "/contracts/4xTAdELFd2l#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Upland Software, Inc.)", "score": 30.4017791748, "published": true}, {"hash": "kvuK8bxywug", "uri": "/contracts/kvuK8bxywug#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Mobiquity Technologies, Inc.)", "score": 29.9418201447, "published": true}, {"hash": "7ZPj0TT2pUt", "uri": "/contracts/7ZPj0TT2pUt#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Kush Bottles, Inc.)", "score": 29.2710475922, "published": true}], "size": 23, "hash": "3bf09771c6e1ce2ae368b070dfde95db", "id": 10}, {"snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [40, 68]}, {"key": "agreement-or", "type": "definition", "offset": [77, 89]}, {"key": "consented-to", "type": "definition", "offset": [90, 102]}, {"key": "in-writing", "type": "definition", "offset": [103, 113]}, {"key": "by-buyer", "type": "clause", "offset": [114, 122]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [273, 307]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [308, 337]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [347, 374]}, {"key": "to-maintain", "type": "clause", "offset": [375, 386]}, {"key": "the-current", "type": "clause", "offset": [407, 418]}, {"key": "the-rights", "type": "clause", "offset": [487, 497]}, {"key": "relationships-with-the-company", "type": "clause", "offset": [625, 655]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [657, 687]}, {"key": "the-closing-date", "type": "clause", "offset": [716, 732]}, {"key": "to-pay", "type": "clause", "offset": [838, 844]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [856, 883]}, {"key": "assets-owned", "type": "clause", "offset": [947, 959]}, {"key": "by-the-company", "type": "clause", "offset": [978, 992]}, {"key": "same-condition", "type": "clause", "offset": [1000, 1014]}, {"key": "date-of-this-agreement", "type": "clause", "offset": [1035, 1057]}, {"key": "subject-to", "type": "clause", "offset": [1059, 1069]}, {"key": "reasonable-wear-and-tear", "type": "clause", "offset": [1070, 1094]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1133, 1154]}, {"key": "without-modification", "type": "definition", "offset": [1155, 1175]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1176, 1198]}, {"key": "as-required-by", "type": "clause", "offset": [1207, 1221]}, {"key": "all-contracts", "type": "clause", "offset": [1403, 1416]}, {"key": "relating-to", "type": "definition", "offset": [1417, 1428]}, {"key": "books-and-records", "type": "definition", "offset": [1516, 1533]}, {"key": "in-accordance-with", "type": "clause", "offset": [1534, 1552]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1600, 1624]}, {"key": "all-applicable-laws", "type": "clause", "offset": [1630, 1649]}, {"key": "any-action", "type": "definition", "offset": [1699, 1709]}, {"key": "events-or-conditions", "type": "clause", "offset": [1747, 1767]}], "snippet": "From the date hereof until the Closing, except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld or delayed), Sellers shall, and shall cause the Company to, (x) conduct the business of the Company in the ordinary course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact the current organization, business and franchise of the Company and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Company. Without limiting the foregoing, from the date hereof until the Closing Date, Sellers shall:\n(a) cause the Company to preserve and maintain all of its Permits;\n(b) cause the Company to pay its debts, Taxes and other obligations when due;\n(c) cause the Company to maintain the properties and assets owned, operated or used by the Company in the same condition as they were on the date of this Agreement, subject to reasonable wear and tear;\n(d) cause the Company to continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(e) cause the Company to defend and protect its properties and assets from infringement or usurpation;\n(f) cause the Company to perform all of its obligations under all Contracts relating to or affecting its properties, assets or business;\n(g) cause the Company to maintain its books and records in accordance with past practice;\n(h) cause the Company to comply in all material respects with all applicable Laws; and\n(i) cause the Company not to take or permit any action that would cause any of the changes, events or conditions described in Section 3.08 to occur.", "samples": [{"hash": "cBModsJdAYq", "uri": "/contracts/cBModsJdAYq#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Turning Point Brands, Inc.)", "score": 27.8884334564, "published": true}, {"hash": "9mbYEwu9wil", "uri": "/contracts/9mbYEwu9wil#conduct-of-business-prior-to-the-closing", "label": "Membership Interest Purchase Agreement (Imprimis Pharmaceuticals, Inc.)", "score": 25.1122512817, "published": true}, {"hash": "5KZWBvzOOXw", "uri": "/contracts/5KZWBvzOOXw#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Synalloy Corp)", "score": 23.6447639465, "published": true}], "size": 29, "hash": "ea016ad345fad011e9208cfb040365b4", "id": 7}, {"snippet_links": [{"key": "seller-covenants", "type": "clause", "offset": [8, 24]}, {"key": "disclosure-schedule", "type": "definition", "offset": [88, 107]}, {"key": "date-hereof", "type": "clause", "offset": [121, 132]}, {"key": "time-of-the", "type": "clause", "offset": [141, 152]}, {"key": "pershing-companies", "type": "definition", "offset": [174, 192]}, {"key": "ordinary-course", "type": "definition", "offset": [238, 253]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [258, 287]}, {"key": "without-limiting-the-generality-of-the-foregoing", "type": "clause", "offset": [289, 337]}, {"key": "the-seller-shall", "type": "clause", "offset": [406, 422]}, {"key": "reasonable-efforts", "type": "definition", "offset": [475, 493]}, {"key": "organization-and", "type": "clause", "offset": [530, 546]}, {"key": "other-persons", "type": "definition", "offset": [609, 622]}, {"key": "significant-business-relationships", "type": "clause", "offset": [641, 675]}, {"key": "notice-to-the-purchaser", "type": "clause", "offset": [707, 730]}, {"key": "receipt-of", "type": "clause", "offset": [735, 745]}, {"key": "prior-written-approval", "type": "clause", "offset": [762, 784]}, {"key": "rights-of-renewal", "type": "clause", "offset": [790, 807]}, {"key": "terms-of", "type": "clause", "offset": [824, 832]}, {"key": "as-required", "type": "clause", "offset": [1007, 1018]}, {"key": "pursuant-to-section", "type": "definition", "offset": [1019, 1038]}, {"key": "engage-in-any", "type": "definition", "offset": [1058, 1071]}, {"key": "any-action", "type": "definition", "offset": [1087, 1097]}, {"key": "warranty-of-the-seller", "type": "clause", "offset": [1193, 1215]}, {"key": "breach-of-any", "type": "clause", "offset": [1244, 1257]}, {"key": "by-the-seller", "type": "clause", "offset": [1272, 1285]}, {"key": "in-this-agreement", "type": "clause", "offset": [1286, 1303]}, {"key": "prior-to-the-closing", "type": "clause", "offset": [1329, 1349]}, {"key": "the-provisions-of-section", "type": "clause", "offset": [1362, 1387]}, {"key": "sole-discretion", "type": "definition", "offset": [1417, 1432]}, {"key": "consent-of-the-purchaser", "type": "clause", "offset": [1449, 1473]}, {"key": "to-seller", "type": "definition", "offset": [1499, 1508]}, {"key": "the-accounts", "type": "clause", "offset": [1523, 1535]}, {"key": "prior-written-consent", "type": "clause", "offset": [1728, 1749]}, {"key": "the-company-will", "type": "clause", "offset": [1801, 1817]}], "snippet": "(a) The Seller covenants and agrees that, except as described in Section 5.01(a) of the Disclosure Schedule, between the date hereof and the time of the Closing, none of the Pershing Companies shall conduct its business other than in the ordinary course and consistent with past practice. Without limiting the generality of the foregoing, except as described in Section 5.01(a) of the Disclosure Schedule, the Seller shall cause each of the Pershing Companies to (i) use its reasonable efforts to (A) preserve intact its business organization and (B) preserve its current relationships with its customers and other persons with which it has significant business relationships; (ii) exercise, but only after notice to the Purchaser and receipt of the Purchaser's prior written approval, any rights of renewal pursuant to the terms of any leases or subleases that by their terms would otherwise expire; (iii) not shorten or lengthen the customary payment cycles for any of its payables or receivables, except as required pursuant to Section 5.13; and (iv) not engage in any practice, take any action, fail to take any action or enter into any transaction which could cause any representation or warranty of the Seller to be untrue or result in a breach of any covenant made by the Seller in this Agreement; provided, however, that prior to the Closing, subject to the provisions of Section 2.06, the Seller may, in its sole discretion and without the consent of the Purchaser, cause to be distributed to Seller any cash from the accounts of the Pershing Companies as it deems desirable.\n(b) Except as described in Section 5.01(b) of the Disclosure Schedule, the Seller covenants and agrees that, prior to the Closing, without the prior written consent of the Purchaser, not to be unreasonably withheld, the Company will not do any of the things enumerated in the second sentence of Section 3.11.", "samples": [{"hash": "7UqQxufxATw", "uri": "/contracts/7UqQxufxATw#conduct-of-business-prior-to-the-closing", "label": "Transaction Agreement", "score": 29.3408622742, "published": true}, {"hash": "d3iu5QDxUlZ", "uri": "/contracts/d3iu5QDxUlZ#conduct-of-business-prior-to-the-closing", "label": "Transaction Agreement (Credit Suisse Group)", "score": 21.0, "published": true}, {"hash": "1ZEMAOmbiYS", "uri": "/contracts/1ZEMAOmbiYS#conduct-of-business-prior-to-the-closing", "label": "Transaction Agreement (Credit Suisse First Boston Usa Inc)", "score": 21.0, "published": true}], "size": 27, "hash": "549d1708819df637379c7e8fdcf14888", "id": 9}], "next_curs": "CnESa2oVc35sYXdpbnNpZGVyY29udHJhY3Rzck0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IjFjb25kdWN0LW9mLWJ1c2luZXNzLXByaW9yLXRvLXRoZS1jbG9zaW5nIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"parents": [["covenants", "Covenants"], ["additional-agreements", "Additional Agreements"], ["brokers", "Brokers"], ["definitions", "Definitions"], ["no-other-representations-or-warranties", "No Other Representations or Warranties"]], "title": "Conduct of Business Prior to the Closing", "size": 1571, "children": [["", ""], ["operation-in-ordinary-course", "Operation in Ordinary Course"], ["no-control-of-other-partys-business", "No Control of Other Party\u2019s Business"], ["conduct-prior-to-closing", "Conduct Prior to Closing"], ["consents-and-approvals", "Consents and Approvals"]], "id": "conduct-of-business-prior-to-the-closing", "related": [["conduct-of-business-prior-to-closing", "Conduct of Business Prior to Closing", "Conduct of Business Prior to Closing"], ["conduct-of-business-prior-to-the-effective-time", "Conduct of Business Prior to the Effective Time", "Conduct of Business Prior to the Effective Time"], ["conduct-of-business-pending-the-closing", "Conduct of Business Pending the Closing", "Conduct of Business Pending the Closing"], ["conduct-of-business-pending-closing", "Conduct of Business Pending Closing", "Conduct of Business Pending Closing"], ["conduct-of-businesses-prior-to-the-effective-time", "Conduct of Businesses Prior to the Effective Time", "Conduct of Businesses Prior to the Effective Time"]], "related_snippets": [], "updated": "2026-10-24T04:27:19+00:00", "also_ask": ["What are the essential restrictions to include for protecting buyer interests pre-closing?", "How can sellers negotiate carve-outs to maintain operational flexibility before closing?", "What are the most common enforceability challenges courts consider with pre-closing conduct clauses?", "How does this clause compare to market standards in similar transactions?", "What are the critical risks if the clause lacks clear remedies for breaches before closing?"], "drafting_tip": "Specify permitted and prohibited actions, require notice of material changes, and mandate compliance with ordinary course of business to prevent disputes and protect transaction value.", "explanation": "The 'Conduct of Business Prior to the Closing' clause sets out the obligations and restrictions on how a seller must operate its business between signing a purchase agreement and the actual closing of the transaction. Typically, this clause requires the seller to continue running the business in the ordinary course, maintain assets, and avoid significant changes such as taking on new debt, selling key assets, or entering into major contracts without the buyer\u2019s consent. Its core function is to preserve the value and condition of the business during the interim period, ensuring that the buyer receives the business as expected at closing and mitigating the risk of adverse changes before ownership is transferred."}, "json": true, "cursor": ""}}