{"component": "clause", "props": {"groups": [{"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 (a) conduct the Business in the Ordinary Course of Business; and (b) use commercially reasonable efforts to maintain and preserve intact its current Business organization and operations and preserve the rights, goodwill and relationships of its employees, customers, suppliers, regulators and others having relationships with the Business. From the date hereof until the Closing Date, except as (i) consented to in writing by \u2587\u2587\u2587\u2587\u2587 in advance, (ii) expressly contemplated by the terms of this Agreement; or (iii) as required by applicable Law or the regulations or requirements of any stock exchange or regulatory organization applicable to Seller, Seller shall not, and shall not permit any of its Affiliates, to do any of the following:\n(a) except for the plan of liquidation and dissolution to be proposed at the Stockholder Meeting, adopt a plan of or effect any complete or partial liquidation or dissolution or adopt resolutions providing for or authorizing such liquidation or dissolution or adopt a plan of or effect any dissolution, merger, consolidation, restructuring, recapitalization or reorganization that involves the Business or the Purchased Assets, but expressly excludes any other business or products that will be part of Seller\u2019s Continuing Business;\n(b) make any change in accounting methods, principles or practices affecting the reported consolidated assets, liabilities or results of operations of the Business, except insofar as may be required by a change in GAAP;\n(c) write up or down the value of any material asset of the Business (individually or in the aggregate), except insofar as may be required by GAAP;\n(d) sell, lease (as lessor), transfer or otherwise dispose of (including any transfers or dividends by Seller to any of its Affiliates or stockholders), or mortgage or pledge, or impose or suffer to be imposed any Encumbrance on, any of the Purchased Assets, other than sales of Inventory in the Ordinary Course of Business;\n(e) prepare or file any Tax Returns inconsistent with prior practice, make or change any material Tax election, adopt or change a material accounting method in respect of Taxes, enter into a Tax allocation, sharing agreement, indemnity or similar agreement or closing agreement, settle or comprise a claim, notice, audit report or assessment in respect of Taxes, surrender any right to claim a refund of Taxes for any tax period (or portion thereof) beginning after the Closing Date or for which Buyer is liable pursuant to Section 6.12(a)(i) (with respect to a Straddle Period) or 6.12(a)(ii), and consent to an extension or waiver of the statutory limitation period applicable to a claim or assessment (other than any automatic extension of time in which to file a Tax Return), in each case, in respect of Taxes with respect to the Purchased Assets or the Business;\n(f) initiate, waive, release, assign, settle or compromise any Action with respect to the Business or the Purchased Assets;\n(g) modify, waive, terminate, extend, assign any rights under or make any material amendments to any Contract with respect to the Business;\n(h) cancel, abandon or permit to lapse or expire any Intellectual Property rights relating to the Products or the Business;\n(i) (A) accelerate or delay collection of any note or accounts receivable relating to the Business in advance or beyond their regular due dates or the dates when the same would have been collected in the Ordinary Course of Business, (B) accelerate or delay payment of any account payable or other liability relating to the Business beyond or in advance of its due date or the date when such liability would have been paid in the Ordinary Course of Business or (C) accelerate or delay sales to customers relating to the Business outside the Ordinary Course of Business;\n(j) sell any Products on terms or conditions that are not materially consistent with past terms and conditions;\n(k) fail to maintain, with its current insurance companies or other financially responsible insurance companies, insurance in such amounts and against such risks and losses as is maintained by it at present with respect to the Business; or\n(l) enter into any Contract to do any of the foregoing.", "samples": [{"hash": "ivxjlxp0NRm", "uri": "/contracts/ivxjlxp0NRm#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (NovaBay Pharmaceuticals, Inc.)", "score": 35.847366333, "published": true}, {"hash": "jfjQ1C3R6lK", "uri": "/contracts/jfjQ1C3R6lK#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (NovaBay Pharmaceuticals, Inc.)", "score": 35.7186851501, "published": true}, {"hash": "72fuK6KXbdw", "uri": "/contracts/72fuK6KXbdw#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (NovaBay Pharmaceuticals, Inc.)", "score": 35.7186851501, "published": true}], "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": "seller-shall", "type": "clause", "offset": [199, 211]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [237, 271]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [281, 316]}, {"key": "organization-and-operations", "type": "clause", "offset": [370, 397]}, {"key": "the-rights", "type": "clause", "offset": [411, 421]}, {"key": "in-advance", "type": "clause", "offset": [644, 654]}, {"key": "terms-of-this-agreement", "type": "clause", "offset": [691, 714]}, {"key": "as-required-by", "type": "clause", "offset": [725, 739]}, {"key": "applicable-law", "type": "definition", "offset": [740, 754]}, {"key": "the-regulations", "type": "clause", "offset": [758, 773]}, {"key": "stock-exchange", "type": "definition", "offset": [797, 811]}, {"key": "to-seller", "type": "definition", "offset": [850, 859]}, {"key": "liquidation-and-dissolution", "type": "clause", "offset": [978, 1005]}, {"key": "stockholder-meeting", "type": "definition", "offset": [1028, 1047]}, {"key": "liquidation-or-dissolution", "type": "clause", "offset": [1099, 1125]}, {"key": "recapitalization-or-reorganization", "type": "clause", "offset": [1292, 1326]}, {"key": "the-purchased-assets", "type": "clause", "offset": [1357, 1377]}, {"key": "any-other-business", "type": "clause", "offset": [1402, 1420]}, {"key": "of-seller", "type": "clause", "offset": [1451, 1460]}, {"key": "continuing-business", "type": "clause", "offset": [1463, 1482]}, {"key": "accounting-methods", "type": "definition", "offset": [1507, 1525]}, {"key": "consolidated-assets", "type": "definition", "offset": [1574, 1593]}, {"key": "operations-of-the-business", "type": "clause", "offset": [1621, 1647]}, {"key": "change-in-gaap", "type": "clause", "offset": [1688, 1702]}, {"key": "the-value", "type": "clause", "offset": [1725, 1734]}, {"key": "material-asset", "type": "definition", "offset": [1742, 1756]}, {"key": "in-the-aggregate", "type": "definition", "offset": [1790, 1806]}, {"key": "otherwise-dispose-of", "type": "definition", "offset": [1893, 1913]}, {"key": "by-seller", "type": "clause", "offset": [1952, 1961]}, {"key": "sales-of-inventory", "type": "clause", "offset": [2122, 2140]}, {"key": "tax-returns", "type": "definition", "offset": [2201, 2212]}, {"key": "prior-practice", "type": "clause", "offset": [2231, 2245]}, {"key": "tax-election", "type": "definition", "offset": [2275, 2287]}, {"key": "in-respect-of", "type": "clause", "offset": [2334, 2347]}, {"key": "tax-allocation", "type": "definition", "offset": [2368, 2382]}, {"key": "sharing-agreement", "type": "clause", "offset": [2384, 2401]}, {"key": "closing-agreement", "type": "clause", "offset": [2437, 2454]}, {"key": "audit-report", "type": "clause", "offset": [2492, 2504]}, {"key": "right-to", "type": "definition", "offset": [2554, 2562]}, {"key": "refund-of-taxes", "type": "clause", "offset": [2571, 2586]}, {"key": "tax-period", "type": "clause", "offset": [2595, 2605]}, {"key": "after-the-closing-date", "type": "clause", "offset": [2637, 2659]}, {"key": "pursuant-to-section", "type": "definition", "offset": [2689, 2708]}, {"key": "with-respect-to", "type": "clause", "offset": [2721, 2736]}, {"key": "straddle-period", "type": "definition", "offset": [2739, 2754]}, {"key": "consent-to", "type": "definition", "offset": [2776, 2786]}, {"key": "waiver-of-the", "type": "clause", "offset": [2803, 2816]}, {"key": "limitation-period", "type": "definition", "offset": [2827, 2844]}, {"key": "extension-of-time", "type": "definition", "offset": [2907, 2924]}, {"key": "to-file", "type": "definition", "offset": [2934, 2941]}, {"key": "each-case", "type": "definition", "offset": [2960, 2969]}, {"key": "any-action", "type": "definition", "offset": [3104, 3114]}, {"key": "amendments-to", "type": "clause", "offset": [3252, 3265]}, {"key": "intellectual-property-rights", "type": "definition", "offset": [3362, 3390]}, {"key": "the-products", "type": "clause", "offset": [3403, 3415]}, {"key": "accounts-receivable", "type": "definition", "offset": [3487, 3506]}, {"key": "relating-to-the-business", "type": "definition", "offset": [3507, 3531]}, {"key": "due-dates", "type": "clause", "offset": [3567, 3576]}, {"key": "payment-of", "type": "definition", "offset": [3690, 3700]}, {"key": "other-liability", "type": "clause", "offset": [3724, 3739]}, {"key": "sales-to-customers", "type": "clause", "offset": [3917, 3935]}, {"key": "consistent-with", "type": "clause", "offset": [4071, 4086]}, {"key": "terms-and-conditions", "type": "definition", "offset": [4092, 4112]}, {"key": "fail-to-maintain", "type": "clause", "offset": [4118, 4134]}, {"key": "insurance-companies", "type": "definition", "offset": [4153, 4172]}, {"key": "financially-responsible", "type": "definition", "offset": [4182, 4205]}, {"key": "at-present", "type": "definition", "offset": [4310, 4320]}, {"key": "the-foregoing", "type": "definition", "offset": [4395, 4408]}], "size": 536, "hash": "ed7614f487d84af6acaf105a3658501f", "id": 1}, {"snippet": "From the date hereof until the Closing Date, except as otherwise provided in this Agreement or consented to in writing by Buyer, Seller shall, and shall cause each Company to, (x) continue to operate the Business as it has in the past and not engage in any transactions outside the ordinary course of business; and (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. Without limiting the foregoing, from the date hereof until the Closing Date, Seller shall:\n(a) Cause the Companies to preserve and maintain all of their Permits and Licenses;\n(b) Cause the Companies to pay their debts, Taxes and other obligations when due including but not limited to making regularly scheduled amortization payments on all trade payables and their existing debts;\n(c) Cause the Companies to maintain the properties and assets owned, operated or used by them 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, 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 their 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 incur any additional indebtedness except in the ordinary course of business consistent with past practices.", "samples": [{"hash": "gLCE8SzIver", "uri": "/contracts/gLCE8SzIver#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Worthy Property Bonds, Inc.)", "score": 35.540725708, "published": true}, {"hash": "j2n4TzCp0Us", "uri": "/contracts/j2n4TzCp0Us#conduct-of-business-prior-to-the-closing", "label": "Stock Purchase Agreement (Worthy Wealth, Inc.)", "score": 35.4093093872, "published": true}], "snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "the-closing-date", "type": "clause", "offset": [27, 43]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [45, 73]}, {"key": "agreement-or", "type": "definition", "offset": [82, 94]}, {"key": "consented-to", "type": "definition", "offset": [95, 107]}, {"key": "in-writing", "type": "definition", "offset": [108, 118]}, {"key": "by-buyer", "type": "clause", "offset": [119, 127]}, {"key": "seller-shall", "type": "clause", "offset": [129, 141]}, {"key": "continue-to-operate", "type": "definition", "offset": [180, 199]}, {"key": "the-business", "type": "clause", "offset": [200, 212]}, {"key": "engage-in-any", "type": "definition", "offset": [243, 256]}, {"key": "transactions-outside-the-ordinary-course-of-business", "type": "clause", "offset": [257, 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-companies", "type": "definition", "offset": [431, 444]}, {"key": "the-rights", "type": "clause", "offset": [461, 471]}, {"key": "business-relationships", "type": "definition", "offset": [590, 612]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [633, 663]}, {"key": "permits-and-licenses", "type": "clause", "offset": [786, 806]}, {"key": "to-pay", "type": "clause", "offset": [832, 838]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [852, 879]}, {"key": "not-limited", "type": "clause", "offset": [903, 914]}, {"key": "scheduled-amortization-payments", "type": "clause", "offset": [935, 966]}, {"key": "trade-payables", "type": "definition", "offset": [974, 988]}, {"key": "existing-debts", "type": "clause", "offset": [999, 1013]}, {"key": "assets-owned", "type": "clause", "offset": [1070, 1082]}, {"key": "same-condition", "type": "clause", "offset": [1116, 1130]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [1151, 1173]}, {"key": "subject-to", "type": "clause", "offset": [1175, 1185]}, {"key": "reasonable-wear-and-tear", "type": "definition", "offset": [1186, 1210]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1251, 1272]}, {"key": "without-modification", "type": "definition", "offset": [1273, 1293]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1294, 1316]}, {"key": "as-required-by", "type": "clause", "offset": [1325, 1339]}, {"key": "all-contracts", "type": "clause", "offset": [1529, 1542]}, {"key": "relating-to", "type": "definition", "offset": [1543, 1554]}, {"key": "books-and-records", "type": "clause", "offset": [1648, 1665]}, {"key": "in-accordance-with", "type": "definition", "offset": [1666, 1684]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1734, 1758]}, {"key": "all-applicable-laws", "type": "definition", "offset": [1764, 1783]}, {"key": "additional-indebtedness", "type": "definition", "offset": [1830, 1853]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [1861, 1895]}, {"key": "consistent-with-past-practices", "type": "definition", "offset": [1896, 1926]}], "size": 161, "hash": "f6bfd5d905047f90cc0a1550867d2f77", "id": 2}, {"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 (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 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) continue to collect Accounts Receivable in a manner consistent with past practice, without discounting such Accounts Receivable;\n(d) 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(e) continue in full force and effect without modification all Insurance Policies, except as required by applicable Law;\n(f) defend and protect the properties and assets included in the Purchased Assets from infringement or usurpation;\n(g) perform all of its obligations under all Assigned Contracts;\n(h) maintain the Books and Records in accordance with past practice;\n(i) 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(j) 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": "aElP1fbnPUj", "uri": "/contracts/aElP1fbnPUj#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (Singing Machine Co Inc)", "score": 35.4449005127, "published": true}, {"hash": "674E60uvIxf", "uri": "/contracts/674E60uvIxf#conduct-of-business-prior-to-the-closing", "label": "Asset Purchase Agreement (Crown Electrokinetics Corp.)", "score": 34.0075302124, "published": true}], "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": "seller-shall", "type": "clause", "offset": [199, 211]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [237, 271]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [272, 301]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [311, 338]}, {"key": "to-maintain", "type": "clause", "offset": [339, 350]}, {"key": "business-organization", "type": "definition", "offset": [383, 404]}, {"key": "the-rights", "type": "clause", "offset": [447, 457]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [609, 639]}, {"key": "the-closing-date", "type": "clause", "offset": [668, 684]}, {"key": "permits-required", "type": "clause", "offset": [730, 746]}, {"key": "conduct-of-the-business", "type": "definition", "offset": [755, 778]}, {"key": "ownership-and-use", "type": "clause", "offset": [809, 826]}, {"key": "the-purchased-assets", "type": "clause", "offset": [830, 850]}, {"key": "obligations-of-the-business", "type": "clause", "offset": [887, 914]}, {"key": "accounts-receivable", "type": "definition", "offset": [949, 968]}, {"key": "assets-included", "type": "clause", "offset": [1090, 1105]}, {"key": "same-condition", "type": "clause", "offset": [1137, 1151]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [1172, 1194]}, {"key": "subject-to", "type": "clause", "offset": [1196, 1206]}, {"key": "reasonable-wear-and-tear", "type": "definition", "offset": [1207, 1231]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1249, 1270]}, {"key": "without-modification", "type": "definition", "offset": [1271, 1291]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1292, 1314]}, {"key": "as-required-by", "type": "clause", "offset": [1323, 1337]}, {"key": "applicable-law", "type": "definition", "offset": [1338, 1352]}, {"key": "assigned-contracts", "type": "definition", "offset": [1514, 1532]}, {"key": "books-and-records", "type": "clause", "offset": [1551, 1568]}, {"key": "in-accordance-with", "type": "definition", "offset": [1569, 1587]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1614, 1638]}, {"key": "applicable-to", "type": "definition", "offset": [1653, 1666]}, {"key": "any-action", "type": "definition", "offset": [1772, 1782]}, {"key": "events-or-conditions", "type": "clause", "offset": [1820, 1840]}], "size": 33, "hash": "81c3afdecdf1bd6963631f0efdfd971c", "id": 5}, {"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}], "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": "clause", "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": "definition", "offset": [1081, 1103]}, {"key": "subject-to", "type": "clause", "offset": [1105, 1115]}, {"key": "reasonable-wear-and-tear", "type": "definition", "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": "clause", "offset": [1478, 1495]}, {"key": "in-accordance-with", "type": "definition", "offset": [1496, 1514]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1541, 1565]}, {"key": "all-applicable-laws", "type": "definition", "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]}], "size": 65, "hash": "3445fa3abcdbe1861090e0a8cd2ab601", "id": 3}, {"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}], "snippet_links": [{"key": "date-hereof", "type": "clause", "offset": [9, 20]}, {"key": "the-closing", "type": "definition", "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]}], "size": 26, "hash": "3854459d0a5376cc33311ad6e8f12f40", "id": 6}, {"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}], "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": "definition", "offset": [1191, 1213]}, {"key": "subject-to", "type": "clause", "offset": [1215, 1225]}, {"key": "reasonable-wear-and-tear", "type": "definition", "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": "definition", "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": "definition", "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": "clause", "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": "clause", "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": "clause", "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": "clause", "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": "definition", "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": "definition", "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": "definition", "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": "clause", "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": "clause", "offset": [5933, 5951]}, {"key": "employee-benefit", "type": "definition", "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": "clause", "offset": [6920, 6937]}, {"key": "in-accordance-with", "type": "definition", "offset": [6938, 6956]}, {"key": "in-all-material-respects", "type": "definition", "offset": [6983, 7007]}, {"key": "all-applicable-laws", "type": "definition", "offset": [7013, 7032]}, {"key": "any-action", "type": "definition", "offset": [7061, 7071]}, {"key": "events-or-conditions", "type": "clause", "offset": [7109, 7129]}], "size": 63, "hash": "30d22703387f536df273da81615efa62", "id": 4}, {"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}], "snippet_links": [{"key": "seller-covenants", "type": "definition", "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": "definition", "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": "definition", "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]}], "size": 24, "hash": "549d1708819df637379c7e8fdcf14888", "id": 8}, {"snippet": "(a) Parent covenants and agrees that, except as described in Exhibit 5.01 or as otherwise expressly contemplated by this Agreement, including pursuant to the Reorganization, between the date of this Agreement and the Closing, Parent shall cause each Company (x) to conduct its business in the ordinary course in all material respects, (y) to use commercially reasonable efforts to preserve intact in all material respects the business organization of the Companies and (z) to comply in all material respects with all Laws applicable to the Companies. Without limiting the foregoing, except as described in Exhibit 5.01 or as contemplated under this Agreement, including pursuant to the Reorganization, Parent covenants and agrees that, between the date of this Agreement and the Closing, without the prior written consent of the Purchaser (which consent will not be unreasonably withheld or delayed, provided the Purchaser may withhold or delay consent for any purpose under this Agreement, including Section 5.17, if a Lender has denied or delayed the granting of such consent request made by the Purchaser), each Company will not:\n(i) (A) issue, sell or redeem any capital stock or other ownership interests (other than as contemplated in connection with consummation of the ViPS Distribution), notes, bonds or other securities of such Company (or any option, warrant or other right to acquire the same) (B) declare, make or pay any dividends or distributions to the holders of capital stock or other equity securities of any Company (other than dividends, distributions and redemptions declared, made or paid solely in cash by any Company solely to Parent or another Company) or (C) split, combine or reclassify any capital stock of any Company;\n(ii) amend or restate the certificate of incorporation or bylaws (or similar organizational documents) of such Company, as the case may be;\n(iii) grant or announce any increase in, or acceleration of payment or vesting of, the salaries, bonuses or other compensation or benefits payable by such Company, as the case may be, to any of the employees of such Company, as the case may be, other than (A) as required by Law, (B) pursuant to the terms of the Plans, programs or agreements existing on the date of this Agreement or (C) solely with respect to employees who are not employees of any Company with current annual salaries in excess of $125,000, in the ordinary course of business consistent with the past practices of such Company (which shall include increases due to promotions and normal periodic performance reviews and related compensation and benefit increases), as the case may be;\n(iv) amend, adopt or enter into any employment or severance agreement with or applicable to any of the current or former employees, officers, consultants or directors of such Company, other than (A) an offer letter for at-will employment with no severance obligation, (B) as required by Law, (C) pursuant to any Plans, programs or agreements existing on the date of this Agreement, or (D) solely with respect to consultants and employees who are not employees of any Company with current annual salaries in excess of $125,000 or are not former employees of any Company with annual salaries as of their termination date in excess of $125,000, in the ordinary course of business consistent with the past practices of the business of the Companies;\n(v) with respect to any employees of a Company, provide any additional benefits under a Plan or program existing on the date of this Agreement, or any such plans or programs which may be hereafter adopted, to the extent any such benefit is conditioned directly or indirectly on the consummation of one or more of the transactions contemplated by this Agreement (for the avoidance of doubt, this subsection (v) shall supersede any contrary provision in subsections (iii) or (iv));\n(vi) except in the ordinary course of business, (A) incur any Indebtedness for borrowed money (other than Indebtedness to Parent or to another Company, trade credit and accounts payable, and Indebtedness that will be repaid at or prior to the Closing) (B) extend the ordinary course accounts payable cycle (including with respect to the Accounts Payable and Accrued Medical Expenses that are specific to the Companies and recorded on Parent\u2019s balance sheet) or accounts receivable cycle, (C) issue any debt securities, or (D) assume or guarantee or otherwise become responsible for any indebtedness of any Person (other than Indebtedness of another Company);\n(vii) make any acquisition (by merger, consolidation, or acquisition of stock or assets) of any corporation, partnership or other business organization or Person or division thereof for consideration in excess of $2,000,000 in the aggregate;\n(viii) except in the ordinary course of business, create any Encumbrances on any of their assets, tangible or intangible, other than (A) Permitted Encumbrances, (B) Encumbrances on assets having an aggregate value not in excess of $2,000,000, and (C) Encumbrances that will be released at or prior to the Closing;\n(ix) sell, assign or transfer any of their tangible assets except in the ordinary course of business and except for any such assets having an aggregate value of less than $2,000,000 and except for transfers to another Company;\n(x) make any material change in any method of accounting or accounting practice or policy used by such Company, as the case may be, other than such changes required by GAAP or by Law;\n(xi) enter into or terminate any Lease;\n(xii) purchase, sell or enter into any contract to purchase or sell any real property;\n(xiii) incur or commit to any capital expenditures other than capital expenditures incurred or committed to in the ordinary course of business which do not exceed $6,000,000 in the aggregate and is in accordance with the Companies\u2019 capital expenditure plan;\n(xiv) except in the ordinary course of business, allow the lapse of any Company\u2019s rights of ownership or use of any material Intellectual Property;\n(xv) make or change any material Tax election (other than to effect the Reorganization), settle or compromise any material Tax Contest, change in any material respect any accounting method in respect of Taxes, enter into any closing agreement, settle any material claim or material assessment in respect of Taxes, or consent to any extension or waiver of the limitation period applicable to any claim or assessment in respect of Taxes, except, to the extent that any of the foregoing actions have, individually or in the aggregate adversely affected the Tax liability of Master LLC, EBS LLC, the Companies, Parent or any of its Affiliates for taxable periods (or portions thereof) beginning after the Closing Date;\n(xvi) engage in any \u201creportable transaction,\u201d including any \u201clisted transaction,\u201d within the meaning of Section 6011 of the Code or any other applicable federal Law including any Internal Revenue Service ruling, procedure, notice or other pronouncement;\n(xvii) agree or permit to terminate, cancel or lapse any Material Insurance Policy that names it as a beneficiary or a loss payee unless such policy is replaced with another policy with substantially similar coverage;\n(xviii) (A) adopt a plan of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization or other reorganization of any of the Companies (other than pursuant to this Agreement); or (B) acquire or agree to acquire by purchasing any equity interest in or a portion of the assets of, or by any other manner, any business or any corporation, partnership, association or other business organization or division thereof;\n(xix) subject the Companies following the Closing to an agreement that prohibits or materially restricts the Companies from engaging in the business in which the Companies are currently engaged;\n(xx) amend, modify, terminate or enter into any agreement or arrangement with any Related Person, including any Intercompany Agreement, or that would result in any Related Person having any interest in any contract, property, right or other asset of the Companies;\n(xxi) enter into, amend, modify, or terminate a Material Contract, other than in the ordinary course of business, or enter into any contract that would be a Material Contract under Section 3.17(a)(iv) had it been entered into as of the date hereof;\n(xxii) settle any Action, other than any settlement providing for the payment of monetary damages in an amount not to exceed $2,000,000 which does not otherwise impair the operation of the business of the Companies following the Closing; or\n(xxiii) agree to take any of the actions specified in Sections 5.01(a)(i)-(xxii), except as contemplated by this Agreement, the Transition Services Agreement and the LLC Agreement. Subject to this Section 5.01, prior to the Closing, Parent shall exercise, consistent with the terms and conditions of this Agreement, complete control of and supervision over the Companies and their respective operations.\n(b) The Purchaser, Merger LLC and Merger Co covenant and agree that, between the date of this Agreement and the Closing, neither Merger LLC nor Merger Co shall conduct any business or activities or incur or guarantee the payment or performance of any Liabilities, except as contemplated by the terms of this Agreement and the Debt Financing. Parent hereby covenants and agrees that, between the date of this Agreement and the Closing, Master LLC and EBS LLC shall not conduct any business or activities or incur or guarantee the payment or performance of any Liabilities, except as contemplated by the terms of this Agreement and the Debt Financing.", "samples": [{"hash": "6sFGitRqdYz", "uri": "/contracts/6sFGitRqdYz#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Merger (Emdeon Corp)", "score": 21.0, "published": true}, {"hash": "1sZRNHFiLOw", "uri": "/contracts/1sZRNHFiLOw#conduct-of-business-prior-to-the-closing", "label": "Agreement and Plan of Merger (Emdeon Inc.)", "score": 21.0, "published": true}], "snippet_links": [{"key": "parent-covenants", "type": "clause", "offset": [4, 20]}, {"key": "pursuant-to-the-reorganization", "type": "clause", "offset": [142, 172]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [186, 208]}, {"key": "business-in-the-ordinary-course", "type": "definition", "offset": [277, 308]}, {"key": "in-all-material-respects", "type": "definition", "offset": [309, 333]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [342, 377]}, {"key": "organization-of-the-companies", "type": "clause", "offset": [435, 464]}, {"key": "applicable-to", "type": "definition", "offset": [522, 535]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [551, 581]}, {"key": "consent-of-the-purchaser", "type": "clause", "offset": [814, 838]}, {"key": "the-purchaser-may", "type": "clause", "offset": [909, 926]}, {"key": "a-lender", "type": "definition", "offset": [1018, 1026]}, {"key": "consent-request", "type": "definition", "offset": [1070, 1085]}, {"key": "by-the-purchaser", "type": "clause", "offset": [1091, 1107]}, {"key": "company-will", "type": "clause", "offset": [1115, 1127]}, {"key": "stock-or-other-ownership-interests", "type": "clause", "offset": [1175, 1209]}, {"key": "in-connection-with", "type": "clause", "offset": [1238, 1256]}, {"key": "consummation-of-the", "type": "clause", "offset": [1257, 1276]}, {"key": "other-securities", "type": "definition", "offset": [1313, 1329]}, {"key": "right-to-acquire", "type": "definition", "offset": [1379, 1395]}, {"key": "holders-of", "type": "clause", "offset": [1469, 1479]}, {"key": "other-equity-securities", "type": "clause", "offset": [1497, 1520]}, {"key": "distributions-and-redemptions", "type": "clause", "offset": [1559, 1588]}, {"key": "to-parent", "type": "definition", "offset": [1649, 1658]}, {"key": "certificate-of-incorporation-or-bylaws", "type": "clause", "offset": [1775, 1813]}, {"key": "organizational-documents", "type": "definition", "offset": [1826, 1850]}, {"key": "the-case", "type": "definition", "offset": [1872, 1880]}, {"key": "acceleration-of-payment", "type": "clause", "offset": [1933, 1956]}, {"key": "vesting-of", "type": "clause", "offset": [1960, 1970]}, {"key": "benefits-payable", "type": "definition", "offset": [2019, 2035]}, {"key": "employees-of", "type": "clause", "offset": [2087, 2099]}, {"key": "as-required-by-law", "type": "clause", "offset": [2149, 2167]}, {"key": "the-plans", "type": "clause", "offset": [2198, 2207]}, {"key": "agreement-or", "type": "definition", "offset": [2261, 2273]}, {"key": "with-respect-to", "type": "clause", "offset": [2285, 2300]}, {"key": "employees-who", "type": "clause", "offset": [2301, 2314]}, {"key": "not-employees", "type": "clause", "offset": [2319, 2332]}, {"key": "annual-salaries", "type": "clause", "offset": [2361, 2376]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [2400, 2434]}, {"key": "consistent-with-the", "type": "clause", "offset": [2435, 2454]}, {"key": "past-practices", "type": "definition", "offset": [2455, 2469]}, {"key": "periodic-performance-reviews", "type": "clause", "offset": [2546, 2574]}, {"key": "benefit-increases", "type": "clause", "offset": [2604, 2621]}, {"key": "severance-agreement", "type": "clause", "offset": [2694, 2713]}, {"key": "the-current", "type": "clause", "offset": [2743, 2754]}, {"key": "former-employees", "type": "clause", "offset": [2758, 2774]}, {"key": "offer-letter", "type": "definition", "offset": [2846, 2858]}, {"key": "will-employment", "type": "clause", "offset": [2866, 2881]}, {"key": "no-severance-obligation", "type": "clause", "offset": [2887, 2910]}, {"key": "termination-date", "type": "definition", "offset": [3246, 3262]}, {"key": "business-of-the-companies", "type": "clause", "offset": [3363, 3388]}, {"key": "additional-benefits", "type": "definition", "offset": [3450, 3469]}, {"key": "to-the-extent", "type": "clause", "offset": [3596, 3609]}, {"key": "directly-or-indirectly", "type": "clause", "offset": [3642, 3664]}, {"key": "the-transactions-contemplated-by-this-agreement", "type": "clause", "offset": [3703, 3750]}, {"key": "for-the-avoidance-of-doubt", "type": "clause", "offset": [3752, 3778]}, {"key": "this-subsection", "type": "definition", "offset": [3780, 3795]}, {"key": "indebtedness-for-borrowed-money", "type": "clause", "offset": [3932, 3963]}, {"key": "trade-credit", "type": "definition", "offset": [4022, 4034]}, {"key": "prior-to-the-closing", "type": "clause", "offset": [4100, 4120]}, {"key": "accounts-payable-and-accrued", "type": "clause", "offset": [4207, 4235]}, {"key": "medical-expenses", "type": "definition", "offset": [4236, 4252]}, {"key": "balance-sheet", "type": "definition", "offset": [4313, 4326]}, {"key": "accounts-receivable", "type": "definition", "offset": [4331, 4350]}, {"key": "debt-securities", "type": "definition", "offset": [4372, 4387]}, {"key": "responsible-for", "type": "clause", "offset": [4436, 4451]}, {"key": "indebtedness-of-any-person", "type": "definition", "offset": [4456, 4482]}, {"key": "acquisition-of-stock-or-assets", "type": "clause", "offset": [4586, 4616]}, {"key": "other-business", "type": "clause", "offset": [4653, 4667]}, {"key": "in-the-aggregate", "type": "definition", "offset": [4753, 4769]}, {"key": "permitted-encumbrances", "type": "clause", "offset": [4908, 4930]}, {"key": "aggregate-value", "type": "clause", "offset": [4969, 4984]}, {"key": "tangible-assets", "type": "clause", "offset": [5128, 5143]}, {"key": "transfers-to", "type": "clause", "offset": [5282, 5294]}, {"key": "change-in", "type": "definition", "offset": [5334, 5343]}, {"key": "method-of-accounting", "type": "clause", "offset": [5348, 5368]}, {"key": "accounting-practice", "type": "clause", "offset": [5372, 5391]}, {"key": "any-lease", "type": "definition", "offset": [5525, 5534]}, {"key": "real-property", "type": "definition", "offset": [5608, 5621]}, {"key": "capital-expenditures", "type": "definition", "offset": [5653, 5673]}, {"key": "expenditures-incurred", "type": "definition", "offset": [5693, 5714]}, {"key": "in-accordance-with", "type": "definition", "offset": [5821, 5839]}, {"key": "capital-expenditure-plan", "type": "clause", "offset": [5855, 5879]}, {"key": "ownership-or-use", "type": "clause", "offset": [5973, 5989]}, {"key": "material-intellectual-property", "type": "definition", "offset": [5997, 6027]}, {"key": "tax-election", "type": "definition", "offset": [6062, 6074]}, {"key": "tax-contest", "type": "clause", "offset": [6152, 6163]}, {"key": "accounting-method", "type": "definition", "offset": [6200, 6217]}, {"key": "in-respect-of", "type": "clause", "offset": [6218, 6231]}, {"key": "closing-agreement", "type": "clause", "offset": [6254, 6271]}, {"key": "material-claim", "type": "definition", "offset": [6284, 6298]}, {"key": "consent-to", "type": "definition", "offset": [6346, 6356]}, {"key": "the-limitation-period", "type": "definition", "offset": [6384, 6405]}, {"key": "foregoing-actions", "type": "clause", "offset": [6503, 6520]}, {"key": "adversely-affected", "type": "definition", "offset": [6560, 6578]}, {"key": "liability-of", "type": "clause", "offset": [6587, 6599]}, {"key": "master-llc", "type": "definition", "offset": [6600, 6610]}, {"key": "ebs-llc", "type": "definition", "offset": [6612, 6619]}, {"key": "taxable-periods", "type": "definition", "offset": [6672, 6687]}, {"key": "after-the-closing-date", "type": "clause", "offset": [6720, 6742]}, {"key": "engage-in-any", "type": "definition", "offset": [6750, 6763]}, {"key": "reportable-transaction", "type": "definition", "offset": [6765, 6787]}, {"key": "listed-transaction", "type": "clause", "offset": [6805, 6823]}, {"key": "meaning-of", "type": "definition", "offset": [6837, 6847]}, {"key": "the-code", "type": "clause", "offset": [6864, 6872]}, {"key": "other-applicable", "type": "definition", "offset": [6880, 6896]}, {"key": "federal-law", "type": "definition", "offset": [6897, 6908]}, {"key": "internal-revenue-service", "type": "clause", "offset": [6923, 6947]}, {"key": "insurance-policy", "type": "clause", "offset": [7064, 7080]}, {"key": "loss-payee", "type": "clause", "offset": [7117, 7127]}, {"key": "replaced-with", "type": "clause", "offset": [7150, 7163]}, {"key": "similar-coverage", "type": "definition", "offset": [7198, 7214]}, {"key": "plan-of", "type": "definition", "offset": [7236, 7243]}, {"key": "partial-liquidation", "type": "clause", "offset": [7256, 7275]}, {"key": "other-reorganization", "type": "clause", "offset": [7348, 7368]}, {"key": "pursuant-to-this-agreement", "type": "clause", "offset": [7405, 7431]}, {"key": "agree-to", "type": "clause", "offset": [7452, 7460]}, {"key": "equity-interest", "type": "definition", "offset": [7487, 7502]}, {"key": "a-portion", "type": "definition", "offset": [7509, 7518]}, {"key": "the-assets", "type": "clause", "offset": [7522, 7532]}, {"key": "other-manner", "type": "clause", "offset": [7547, 7559]}, {"key": "any-business", "type": "definition", "offset": [7561, 7573]}, {"key": "following-the-closing", "type": "clause", "offset": [7699, 7720]}, {"key": "an-agreement", "type": "clause", "offset": [7724, 7736]}, {"key": "in-the-business", "type": "definition", "offset": [7804, 7819]}, {"key": "any-related-person", "type": "clause", "offset": [7944, 7962]}, {"key": "intercompany-agreement", "type": "definition", "offset": [7978, 8000]}, {"key": "other-asset", "type": "definition", "offset": [8101, 8112]}, {"key": "material-contract", "type": "clause", "offset": [8179, 8196]}, {"key": "entered-into", "type": "clause", "offset": [8344, 8356]}, {"key": "date-hereof", "type": "clause", "offset": [8367, 8378]}, {"key": "any-action", "type": "definition", "offset": [8394, 8404]}, {"key": "any-settlement", "type": "clause", "offset": [8417, 8431]}, {"key": "payment-of", "type": "definition", "offset": [8450, 8460]}, {"key": "monetary-damages", "type": "definition", "offset": [8461, 8477]}, {"key": "amount-not-to-exceed", "type": "clause", "offset": [8484, 8504]}, {"key": "operation-of-the-business", "type": "clause", "offset": [8552, 8577]}, {"key": "the-actions", "type": "clause", "offset": [8650, 8661]}, {"key": "transition-services-agreement", "type": "definition", "offset": [8749, 8778]}, {"key": "llc-agreement", "type": "clause", "offset": [8787, 8800]}, {"key": "subject-to", "type": "clause", "offset": [8802, 8812]}, {"key": "section-501", "type": "clause", "offset": [8818, 8830]}, {"key": "terms-and-conditions-of-this-agreement", "type": "clause", "offset": [8897, 8935]}, {"key": "control-of", "type": "definition", "offset": [8946, 8956]}, {"key": "merger-llc", "type": "definition", "offset": [9044, 9054]}, {"key": "merger-co", "type": "definition", "offset": [9059, 9068]}, {"key": "payment-or-performance", "type": "clause", "offset": [9246, 9268]}, {"key": "terms-of-this-agreement", "type": "clause", "offset": [9319, 9342]}, {"key": "the-debt-financing", "type": "clause", "offset": [9347, 9365]}], "size": 21, "hash": "9946ddc9dbbdd72056cdd1af287b0a26", "id": 10}, {"snippet": "From the Effective Date until the earlier of the Closing Date and the termination of this Agreement in accordance with Section 9.01 (the \u201cPre-Closing Period\u201d), except as otherwise provided in this Agreement or consented to in writing by Buyer (which consent shall not be unreasonably withheld, delayed or conditioned), Sellers shall, and shall cause the Company to, use commercially reasonable efforts to (x) conduct the business of the Company in the ordinary course consistent with past practice; and (y) 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, during Pre-the Closing Period, Sellers shall:\n(a) cause the Company to substantially preserve and maintain all of its Permits;\n(b) cause the Company to pay its debts, Taxes when due and other material obligations when due and in a manner consistent with past practice;\n(c) cause the Company to substantially maintain the properties and assets owned, operated or used by the Company in the same condition as they were on the Effective Date, subject to reasonable wear and tear;\n(d) cause the Company to continue in full force and effect without modification all material Insurance Policies, except as required by applicable Law;\n(e) cause the Company to defend and protect its material properties and assets from infringement or usurpation;\n(f) cause the Company to perform all of its material 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 4.07 to occur.", "samples": [{"hash": "9r1bTbE70bC", "uri": "/contracts/9r1bTbE70bC#conduct-of-business-prior-to-the-closing", "label": "Membership Interest Purchase Agreement (Digital Brands Group, Inc.)", "score": 33.7939758301, "published": true}, {"hash": "lDtQ8znN5Zi", "uri": "/contracts/lDtQ8znN5Zi#conduct-of-business-prior-to-the-closing", "label": "Membership Interest Purchase Agreement (Digital Brands Group, Inc.)", "score": 33.4736480713, "published": true}, {"hash": "ku4njtRLKV2", "uri": "/contracts/ku4njtRLKV2#conduct-of-business-prior-to-the-closing", "label": "Membership Interest Purchase Agreement (Digital Brands Group, Inc.)", "score": 33.0520210266, "published": true}], "snippet_links": [{"key": "from-the-effective-date", "type": "clause", "offset": [0, 23]}, {"key": "the-closing-date", "type": "clause", "offset": [45, 61]}, {"key": "in-accordance-with", "type": "definition", "offset": [100, 118]}, {"key": "closing-period", "type": "clause", "offset": [142, 156]}, {"key": "except-as-otherwise-provided", "type": "clause", "offset": [160, 188]}, {"key": "agreement-or", "type": "definition", "offset": [197, 209]}, {"key": "consented-to", "type": "definition", "offset": [210, 222]}, {"key": "in-writing", "type": "definition", "offset": [223, 233]}, {"key": "by-buyer", "type": "clause", "offset": [234, 242]}, {"key": "use-commercially-reasonable-efforts", "type": "clause", "offset": [366, 401]}, {"key": "company-in", "type": "clause", "offset": [437, 447]}, {"key": "ordinary-course-consistent-with-past-practice", "type": "definition", "offset": [452, 497]}, {"key": "the-current", "type": "clause", "offset": [536, 547]}, {"key": "the-rights", "type": "clause", "offset": [616, 626]}, {"key": "relationships-with-the-company", "type": "clause", "offset": [754, 784]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [786, 816]}, {"key": "to-pay", "type": "clause", "offset": [967, 973]}, {"key": "other-material-obligations", "type": "clause", "offset": [1004, 1030]}, {"key": "assets-owned", "type": "clause", "offset": [1154, 1166]}, {"key": "by-the-company", "type": "clause", "offset": [1185, 1199]}, {"key": "same-condition", "type": "clause", "offset": [1207, 1221]}, {"key": "on-the-effective-date", "type": "clause", "offset": [1235, 1256]}, {"key": "subject-to", "type": "clause", "offset": [1258, 1268]}, {"key": "reasonable-wear-and-tear", "type": "definition", "offset": [1269, 1293]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1332, 1353]}, {"key": "without-modification", "type": "definition", "offset": [1354, 1374]}, {"key": "material-insurance-policies", "type": "definition", "offset": [1379, 1406]}, {"key": "as-required-by", "type": "clause", "offset": [1415, 1429]}, {"key": "material-properties", "type": "clause", "offset": [1494, 1513]}, {"key": "all-contracts", "type": "clause", "offset": [1629, 1642]}, {"key": "relating-to", "type": "definition", "offset": [1643, 1654]}, {"key": "to-maintain", "type": "clause", "offset": [1726, 1737]}, {"key": "books-and-records", "type": "clause", "offset": [1742, 1759]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1826, 1850]}, {"key": "all-applicable-laws", "type": "definition", "offset": [1856, 1875]}, {"key": "any-action", "type": "definition", "offset": [1925, 1935]}], "size": 26, "hash": "1bd05289187547c8fb9049d9dc522939", "id": 7}, {"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, conditioned or delayed), the Target shall (x) conduct the business of the Target 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 Target and to preserve the rights, franchises, goodwill and relationships of its employees, customers, lenders, suppliers, regulators and others having business relationships with the Target. Without limiting the foregoing, from the date hereof until the Closing Date, the Target 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 3.06 to occur.", "samples": [{"hash": "fyVPBgjJ2Y6", "uri": "/contracts/fyVPBgjJ2Y6#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Fdctech, Inc.)", "score": 34.7604370117, "published": true}, {"hash": "gF57IvpbyBE", "uri": "/contracts/gF57IvpbyBE#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Solar Integrated Roofing Corp.)", "score": 33.6872024536, "published": true}, {"hash": "3OxqLQTcFCP", "uri": "/contracts/3OxqLQTcFCP#conduct-of-business-prior-to-the-closing", "label": "Merger Agreement (Solar Integrated Roofing Corp.)", "score": 33.6872024536, "published": true}], "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-target", "type": "clause", "offset": [200, 210]}, {"key": "conduct-the-business", "type": "definition", "offset": [221, 241]}, {"key": "in-the-ordinary-course-of-business", "type": "definition", "offset": [256, 290]}, {"key": "consistent-with-past-practice", "type": "clause", "offset": [291, 320]}, {"key": "use-reasonable-best-efforts", "type": "clause", "offset": [330, 357]}, {"key": "to-maintain", "type": "clause", "offset": [358, 369]}, {"key": "the-current", "type": "clause", "offset": [390, 401]}, {"key": "the-rights", "type": "clause", "offset": [469, 479]}, {"key": "business-relationships", "type": "definition", "offset": [598, 620]}, {"key": "without-limiting-the-foregoing", "type": "clause", "offset": [638, 668]}, {"key": "the-closing-date", "type": "clause", "offset": [697, 713]}, {"key": "taxes-and-other-obligations", "type": "clause", "offset": [798, 825]}, {"key": "assets-owned", "type": "clause", "offset": [868, 880]}, {"key": "same-condition", "type": "clause", "offset": [912, 926]}, {"key": "date-of-this-agreement", "type": "definition", "offset": [947, 969]}, {"key": "subject-to", "type": "clause", "offset": [971, 981]}, {"key": "reasonable-wear-and-tear", "type": "definition", "offset": [982, 1006]}, {"key": "full-force-and-effect", "type": "definition", "offset": [1024, 1045]}, {"key": "without-modification", "type": "definition", "offset": [1046, 1066]}, {"key": "all-insurance-policies", "type": "definition", "offset": [1067, 1089]}, {"key": "as-required-by", "type": "clause", "offset": [1098, 1112]}, {"key": "all-contracts", "type": "clause", "offset": [1252, 1265]}, {"key": "relating-to", "type": "definition", "offset": [1266, 1277]}, {"key": "books-and-records", "type": "clause", "offset": [1344, 1361]}, {"key": "in-accordance-with", "type": "definition", "offset": [1362, 1380]}, {"key": "in-all-material-respects", "type": "definition", "offset": [1407, 1431]}, {"key": "all-applicable-laws", "type": "definition", "offset": [1437, 1456]}, {"key": "any-action", "type": "definition", "offset": [1485, 1495]}, {"key": "events-or-conditions", "type": "clause", "offset": [1533, 1553]}], "size": 23, "hash": "03503e5f29cd14a15144fa2f020f6f97", "id": 9}], "next_curs": "CnESa2oVc35sYXdpbnNpZGVyY29udHJhY3Rzck0LEhZDbGF1c2VTbmlwcGV0R3JvdXBfdjU2IjFjb25kdWN0LW9mLWJ1c2luZXNzLXByaW9yLXRvLXRoZS1jbG9zaW5nIzAwMDAwMDBhDKIBAmVuGAAgAA==", "clause": {"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"]], "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": 1559, "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": "2026-08-07T05:50:17+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": ""}}