OVERBID TERMS Sample Clauses

OVERBID TERMS. This Agreement is made subject to overbid at the hearing on the Bankruptcy Court's approval of this Agreement. The Targets shall give notice of their application for approval of the sale of the Acquired Assets to Buyer to overbid, and shall immediately following the Bankruptcy Filing Date seek the Bankruptcy Court's approval of the overbid procedures and the break-up fee as set forth below. The overbid provisions shall be as follows: the initial minimum overbid shall be $150,000, with additional overbids in minimum increments thereafter of $50,000. Prospective overbidders will be notified that they will be required to pre-qualify with Targets forty-eight (48) hours prior to the hearing in order to demonstrate their financial capacity to close the transactions contemplated hereby. As part of the pre-qualification process, each overbidder shall deliver to Tecmar forty-eight (48) hours prior to the hearing a deposit of a minimum $500,000 cashier's check or other immediately available funds made payable to Tecmar. Such deposit shall be nonrefundable if the bid of such overbidder is accepted by the Bankruptcy Court and such overbidder fails to consummate the transactions contemplated hereby due to such overbidder's default. The balance of the Purchase Price shall be paid as set forth above in Section 2(c). Any and all overbids shall be on the same terms and conditions in all material respects to those set forth herein. In the event a prospective overbidder pre-qualifies with Tecmar, Tecmar shall immediately notify and inform Buyer of the pre-qualification and the identity or identities of the prospective overbidder(s).