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Cure Period
Cure Period contract clause examples

Right to Cure. Notwithstanding anything to the contrary contained in Section 9.01 or 9.02, in the event that the Borrowers fail to comply with the requirements of the financial covenant set forth in [Section 8.10(a)] at any time when ESI is required to comply with such financial covenant, pursuant to the terms thereof, then # until the expiration of the tenth Business Day subsequent to the date the relevant financial statements are required to be delivered pursuant to Section 7.01 (a) or (b) (the last day of such period being the “Anticipated Cure Deadline”), ESI shall have the right to issue or obtain a contribution to its equity (which shall be in the form of common equity or otherwise in a form reasonably acceptable to the Administrative Agent) for cash (the “Cure Right”), and upon the receipt by ESI of such cash (the “Cure Amount”), pursuant to the exercise ESI of such Cure Right, the calculation of Consolidated EBITDA as used in the financial covenant set forth in [Section 8.10(a)] shall be recalculated giving effect to the following pro forma adjustments:

SECTION # Right to Cure. (o) Notwithstanding anything to the contrary contained in [Section 7.01], in the event that the Borrower fails (or, but for the operation of this [Section 7.02], would fail) to comply with the financial covenant set forth in [Section 6.12] and until the expiration of the 10th Business Day after the date on which financial statements are required to be delivered with respect to the applicable fiscal quarter hereunder (the “Cure Deadline”), Holdings may engage in a sale or issuance of any Qualified Equity Interests of Holdings or otherwise receive cash contributions to the capital of Holdings as cash common equity or other non-cash pay Qualified Equity Interests and increase Consolidated EBITDA with respect to such applicable fiscal quarter and any four fiscal quarter period that contains such fiscal quarter, by an amount equal to such net cash proceeds; provided that such net cash proceeds # are actually received by the Borrower (including through capital contribution of such net cash proceeds by Holdings to the Borrower) no later than 10 Business Days after the date on which financial statements are required to be delivered with respect to such fiscal quarter hereunder, and # do not exceed the aggregate amount necessary to comply with [Section 6.12] for any applicable period. If, after giving effect to the foregoing increase in Consolidated EBITDA, Holdings and the Borrower shall then be in compliance with the requirements of [Section 6.12], Holdings and the Borrower shall be deemed to have satisfied such requirements as of the relevant date of determination with the same effect as though there had been (or would have been) no failure to comply therewith at such date, and the failure to comply that occurred (or would have occurred) shall be deemed cured for purposes of this Agreement. The parties hereby acknowledge that this [Section 7.02(a)] may not be relied on for purposes of calculating any financial ratios other than as applicable to [Section 6.12] and shall not result in any adjustment to any amounts other than the amount of the Consolidated EBITDA referred to in the immediately preceding sentence. Upon receipt by the Administrative Agent of written notice, on or prior to the Cure Deadline, that the Borrower intends to exercise the cure right described above in this [Section 7.02(a)] in respect of a fiscal quarter, none of the Administrative Agent or the Lenders shall be permitted to accelerate Loans held by them or to exercise remedies against the Collateral on the basis of a failure to comply with the requirements of the financial covenant set forth in [Section 6.12], unless such failure is not cured pursuant to the exercise of such cure right on or prior to the Cure Deadline.

Section # Borrower’s Right to Cure. (a) Notwithstanding anything to the contrary contained in Sections ‎8.01 or ‎8.02, if the Borrower determines that an Event of Default under the covenant set forth in ‎[Section 7.11] has occurred or may occur, during the period commencing after the beginning of the last fiscal quarter included in such Test Period and ending ten (10) Business Days after the date on which financial statements are required to be delivered hereunder with respect to such fiscal quarter (the “Cure Expiration Date”), the Investors may make a Specified Equity Contribution to the Borrower (a “Designated Equity Contribution”), and the amount of the net cash proceeds thereof shall be deemed to increase Consolidated EBITDA with respect to such applicable quarter; provided that such net cash proceeds # are actually received by the Borrower as cash common equity (including through capital contribution of such net cash proceeds to the Borrower) during the period commencing after the beginning of the last fiscal quarter included in such Test Period by the Borrower and ending on the Cure Expiration Date and # are Not Otherwise Applied. The parties hereby acknowledge that this ‎[Section 8.05(a)] may not be relied on for purposes of calculating any financial ratios other than as applicable to ‎[Section 7.11] and shall not result in any adjustment to any baskets or other amounts other than the amount of the Consolidated EBITDA for the purpose of ‎[Section 7.11]. Notwithstanding anything to the contrary contained in [Section 8.01] and [Section 8.02], # upon designation of the Designated Equity Contribution by the Borrower in an amount necessary to cure any Event of Default under the covenant set forth in ‎[Section 7.11], such covenant will be deemed satisfied and complied with as of the end of the relevant fiscal quarter with the same effect as though there had been no failure to comply with such covenant and any Event of Default under such covenant (and any other Default as a result thereof) will be deemed not to have occurred for purposes of the Loan Documents, and # from and after the date that the Borrower delivers a written notice to the Administrative Agent that it intends to exercise its cure right under this [Section 8.05] (a “Notice of Intent to Cure”) neither the Administrative Agent nor any Lender may exercise any rights or remedies under [Section 8.02] (or under any other Loan Document) on the basis of any actual or purported Event of Default under the covenant set forth in ‎[Section 7.11] with respect to the quarter for which a Notice of Intent to Cure has been provided (and any other Default as a result thereof), and the Borrower shall be permitted to borrow Revolving Credit Loans and Swing Line Loans and make any request for an L/C Credit Extension, until and unless the Cure Expiration Date has occurred without the Designated Equity Contribution having been designated.

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