Audiovox 2012 Annual Report Download - page 278

 
The Credit Parties will not permit Consolidated Capital Expenditures made during each fiscal year of the Company and its
Subsidiaries to be greater than $15,000,000, plus 50% of the unused amount available for Consolidated Capital Expenditures under this
Section 6.15 for the immediately preceding fiscal year (excluding any carry forward available from any prior fiscal year); provided, that
with respect to any fiscal year, capital expenditures made during any such fiscal year shall be deemed to be made first with respect to the
applicable limitation for such year and then with respect to any carry forward amount to the extent applicable.
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 
An Event of Default shall exist upon the occurrence of any of the following specified events (each an “ Event of Default”):
(a) Payment. (i) The Borrowers shall fail to pay any principal on any Loan or Note when due (whether at maturity, by
reason of acceleration or otherwise) in accordance with the terms hereof or thereof; or (ii) the Borrowers shall fail to reimburse
the Issuing Lender for any LOC Obligations when due (whether at maturity, by reason of acceleration or otherwise) in
accordance with the terms hereof; or (iii) the Borrowers shall fail to pay any interest on any Loan or any fee or other amount
payable hereunder when due (whether at maturity, by reason of acceleration or otherwise) in accordance with the terms hereof
and such failure shall continue unremedied for three (3) Business Days; or (iv) any Guarantor shall fail to pay on the Guaranty
in respect of any of the foregoing or in respect of any other Guaranty Obligations hereunder (after giving effect to the grace
period in clause (iii)); or
(b) Misrepresentation. Any representation or warranty made or deemed made herein, in the Security Documents or in
any of the other Credit Documents or which is contained in any certificate, document or financial or other statement furnished
at any time under or in connection with this Agreement shall prove to have been incorrect, false or misleading on or as of the
date made or deemed made; or
(c) Covenant Default.
(i) Any Credit Party shall fail to perform, comply with or observe any term, covenant or agreement
applicable to it contained in Sections 5.1, 5.2, 5.4 (solely if any such Credit Party is not in good standing in its jurisdiction
of organization), 5.7, 5.9, 5.11, 5.13, 5.14 or Article VI hereof; or
(ii) Any Credit Party shall fail to comply with any other covenant contained in this Agreement or the other
Credit Documents or any other agreement, document or instrument among any Credit Party, the Administrative Agent
and the Lenders or executed by any Credit Party in favor of the Administrative Agent or the Lenders (other than as
described in Sections 7.1(a) or 7.1(c)(i) above) and, with respect to this clause (ii) only, such breach or failure to comply
is not cured within thirty (30) days of its occurrence; or
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