Immediate Discontinuance Clause Samples
The Immediate Discontinuance clause grants one or both parties the right to halt the agreement or a specific activity without advance notice under certain conditions. Typically, this clause is triggered by serious breaches, legal violations, or other critical events that make continued performance untenable. Its core function is to provide a swift exit mechanism, protecting parties from ongoing harm or liability when urgent issues arise.
Immediate Discontinuance. Each Holder that is participating in any registration hereunder agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(c)(ii) – (iv) above, such Person will immediately discontinue the disposition of its Registrable Securities pursuant to the registration statement until such Holder’s receipt of the copies of a supplemented or amended prospectus as contemplated by such Section 3(e)(ii) – (iv).