Common use of Non-Monetary Defaults Clause in Contracts

Non-Monetary Defaults. The happening of one or more of the following events of default shall constitute a Non-Monetary Default: (i) If Borrower shall fail to make any payment of principal or interest on any other indebtedness with Lender, or if Borrower shall default in the performance of any other agreement, term or condition, contained in any agreement under which such obligation is created, if the effect of such default is to cause or permit the holder or holders of such obligations to cause such obligations to become due prior to stated maturity and which could have a Material Adverse Effect on the Business of Borrower. (ii) If Borrower defaults in the performance of any covenant contained in this Agreement, or violates any other term, condition or representation contained in this Agreement, the Note, or in any instrument, document or agreement related hereto or thereto, and such default shall continue past the grace period applicable thereto. If there are final judgments for the payment of money, which are outstanding against Borrower and any one of such judgments has been outstanding for more than ninety (90) days from the date of its entry and has not been discharged in full or stayed pending further proceedings. (iii) If a receiver, liquidator or trustee of Borrower or of any material portion of Borrower’s property, is appointed by court order and such order remains in effect for more than thirty (30) days; or Borrower is adjudicated bankrupt or insolvent; or any material portion of the properties of Borrower is attached or sequestered by court order and such order remains in effect for more than thirty (30) days; or a petition is filed against Borrower under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, and is not dismissed within thirty (30) days after such filing. (iv) If Borrower files a petition in voluntary bankruptcy or seeks relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, or consents to the filing of any petition against it under such law. (v) If Borrower makes an assignment for the benefit of its creditors, or admits in writing its inability to pay its debts generally as they become due, or consents to the appointment of a receiver, trustee or liquidator of Borrower. (vi) Any material provision of this Agreement or of any other Loan Document shall for any reason cease to be valid and binding on Borrower, of if Borrower so states in writing, or any Security Document shall for any reason cease to create a valid and perfected first priority Lien on (which is prior to all other liens other than the liens existing pursuant to this Agreement or Permitted Liens), or security interest in, any of the Collateral purported to be covered thereby, in each case other than in accordance with the express terms hereof or thereof. (vii) The Collateral shall suffer any impairment or deterioration of its value. (viii) Borrower’s relationship with Food Lion or its Affiliates is materially altered or lost. (ix) If there shall be any other occurrence, act or circumstance which leads Lender to make a determination that there is a material adverse change in the financial condition of Borrower or its Subsidiaries or that otherwise makes Lender insecure. (x) An Event of Default has occurred under any other agreement between Borrower and Lender, including that certain Credit and Security Agreement by and among Borrower and Lender dated as of March 27, 2009.

Non-Monetary Defaults. The happening of one or more of the following events of default shall constitute a Non-Monetary Default: (i) If Borrower shall fail to make any payment of principal or interest on any other indebtedness with Lender, or if Borrower shall default in the performance of any other agreement, term or condition, contained in any agreement under which such obligation is created, if the effect of such default is to cause or permit the holder or holders of such obligations to cause such obligations to become due prior to stated maturity and which could have a Material Adverse Effect on the Business of Borrower. (ii) If Borrower defaults in the performance of any covenant contained in this Agreement, or violates any other term, condition or representation contained in this Agreement, the Note, or in any instrument, document or agreement related hereto or thereto, and such default shall continue past the grace period applicable thereto. If there are final judgments for the payment of money, which are outstanding against Borrower and any one of such judgments has been outstanding for more than ninety (90) days from the date of its entry and has not been discharged in full or stayed pending further proceedings. (iii) If a receiver, liquidator or trustee of Borrower or of any material portion of Borrower’s property, is appointed by court order and such order remains in effect and is not stayed for more than thirty (30) days; or Borrower is adjudicated bankrupt or insolvent; or any material portion of the properties of Borrower is attached or sequestered by court order and such order remains remains; in effect and is not stayed for more than than, thirty (30) days; or a petition is filed against Borrower under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, and is not dismissed or stayed within thirty (30) days after such filing. (iv) If Borrower files a petition in voluntary bankruptcy or seeks relief under any provision of any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction, whether now or hereafter in effect, effect or consents to the filing of any petition against it under such law. (v) If Borrower makes an assignment for the benefit of its creditors, or admits in writing its inability to pay its debts generally as they become due, or consents to the appointment of a receiver, trustee or liquidator of Borrower. (vi) Any material provision of this Agreement or of any other Loan Document shall for any reason cease to be valid and binding on Borrower, of or if Borrower so states in writing, or any Security Document shall for any reason cease to create a valid and perfected first priority Lien on (which is prior to all other liens other than the liens existing pursuant to this Agreement or Permitted Liens), or security interest in, any of the Collateral purported to be covered thereby, in each case other than in accordance with the express terms hereof or thereof. (vii) The Collateral shall suffer any material impairment or deterioration of its value. (viii) If at any time Borrower’s relationship with Food Lion or its Affiliates Lion, Inc. is materially altered or lostlost resulting in a material decrease in Borrower’s projected revenues, and not replaced with materially equal, new business, as determined by Lender in its reasonable discretion. (ix) If there shall be any other occurrence, act or circumstance which reasonably leads Lender to make a determination that there is a material adverse change in the financial condition of Borrower or its Subsidiaries or that otherwise reasonably makes Lender insecure. (x) An Event of Default has occurred under any other agreement between Borrower and Lender, including that certain Credit and Security Agreement by and among Borrower and Lender dated as of March 27, 2009.