Triggering Event definition: Copy, customize, and use instantly
Introduction
The term "Triggering Event" refers to an occurrence or condition that initiates a specific action or series of actions in a contractual context. This could involve the enforcement of terms, adjustments in obligations, or a change in the status of an agreement.
Below are various examples of how "Triggering Event" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract..
Definition of "Triggering Event" in default scenarios
This definition ties "Triggering Event" to an event of default.
"Triggering Event" means any breach of contract or failure to meet obligations under the agreement that results in an event of default, prompting immediate actions such as termination or penalties.
Definition of "Triggering Event" in financial covenants
This definition connects "Triggering Event" to financial conditions.
"Triggering Event" refers to the occurrence of a financial covenant breach, such as the failure to maintain a specified leverage ratio, which activates remedial provisions in the agreement.
Definition of "Triggering Event" in material adverse change
This definition links "Triggering Event" to changes in circumstances.
"Triggering Event" means the material adverse change in the business, financial condition, or operations of the borrower, which could lead to the acceleration of debt or other contractual actions.
Definition of "Triggering Event" in investment scenarios
This definition ties "Triggering Event" to investment agreements.
"Triggering Event" refers to the situation where an investor is required to contribute additional capital or take other actions as a result of a specified event in the investment agreement, such as a liquidity shortfall.
Definition of "Triggering Event" in termination clauses
This definition connects "Triggering Event" to contract termination.
"Triggering Event" refers to the specific event that, once occurred, allows one party to terminate the contract, such as non-performance or insolvency of the other party.
Definition of "Triggering Event" in loan agreements
This definition links "Triggering Event" to loan covenants.
"Triggering Event" means the failure to meet specified loan covenants, which may result in an acceleration of the loan or a change in interest rates.
Definition of "Triggering Event" in merger and acquisition transactions
This definition ties "Triggering Event" to M&A deals.
"Triggering Event" refers to any occurrence in a merger or acquisition transaction that activates certain clauses, such as the right to adjust the purchase price or renegotiate terms.
Definition of "Triggering Event" in bankruptcy proceedings
This definition connects "Triggering Event" to bankruptcy filings.
"Triggering Event" means the filing of bankruptcy or insolvency proceedings by any party to the agreement, which activates certain protections or actions specified in the contract.
Definition of "Triggering Event" in change of control provisions
This definition links "Triggering Event" to changes in ownership.
"Triggering Event" refers to a change in control, ownership, or management of one party, which could activate rights such as preemptive action or contract renegotiation.
Definition of "Triggering Event" in insurance agreements
This definition connects "Triggering Event" to insurance coverage.
"Triggering Event" refers to an incident or loss covered by an insurance policy, such as damage to property, which triggers the payout or obligation of the insurer.
Definition of "Triggering Event" in tax compliance
This definition ties "Triggering Event" to tax-related issues.
"Triggering Event" means the occurrence of a tax non-compliance situation, such as a tax audit or penalty, which necessitates remedial actions as specified in the agreement.
Definition of "Triggering Event" in asset sale agreements
This definition links "Triggering Event" to the sale of assets.
"Triggering Event" refers to an event in an asset sale agreement, such as a breach of representations or warranties, that could trigger indemnity clauses or adjustments to the transaction.
Definition of "Triggering Event" in securities offerings
This definition connects "Triggering Event" to security-related actions.
"Triggering Event" means a condition in the securities offering that, once met, could trigger additional regulatory disclosures, amendments to terms, or changes in pricing.
Definition of "Triggering Event" in equity agreements
This definition ties "Triggering Event" to equity-related events.
"Triggering Event" refers to the event in an equity agreement, such as the achievement of a certain financial performance level, that triggers the issuance of additional shares or adjustments in ownership.
Definition of "Triggering Event" in performance-based contracts
This definition connects "Triggering Event" to performance benchmarks.
"Triggering Event" means the achievement or failure to achieve specific performance targets or milestones, which could activate payment obligations or penalties.
Definition of "Triggering Event" in intellectual property agreements
This definition links "Triggering Event" to IP rights.
"Triggering Event" refers to the event that activates licensing, assignment, or royalty payment obligations in an intellectual property agreement, such as the grant of a license or infringement of rights.
Definition of "Triggering Event" in employee stock agreements
This definition ties "Triggering Event" to employee equity.
"Triggering Event" means an event such as the sale of the company or the termination of the employee's employment, which triggers the vesting of stock options or shares.
Definition of "Triggering Event" in loan defaults
This definition connects "Triggering Event" to defaults under loan terms.
"Triggering Event" refers to a default under a loan agreement, such as a missed payment or breach of a financial covenant, which activates provisions related to acceleration or penalties.
Definition of "Triggering Event" in government contracts
This definition links "Triggering Event" to government procurement.
"Triggering Event" means an occurrence, such as a breach of contract or regulatory violation, that activates penalties, fines, or corrective actions in a government contract.
Definition of "Triggering Event" in environmental agreements
This definition ties "Triggering Event" to environmental risks.
"Triggering Event" refers to the occurrence of an environmental incident, such as pollution or a spill, which triggers obligations for cleanup or remediation under the agreement.
Definition of "Triggering Event" in joint venture agreements
This definition connects "Triggering Event" to joint ventures.
"Triggering Event" means any occurrence that could disrupt the terms of a joint venture agreement, such as a failure to meet investment targets or a change in ownership, prompting remedial actions.
Definition of "Triggering Event" in trade agreements
This definition links "Triggering Event" to trade contracts.
"Triggering Event" refers to an incident, such as a breach of trade terms or sanctions, that could trigger corrective measures or contract suspension.
Definition of "Triggering Event" in lease agreements
This definition ties "Triggering Event" to lease terms.
"Triggering Event" refers to a breach of lease terms, such as non-payment of rent or damage to the property, which could result in eviction or financial penalties.
Definition of "Triggering Event" in franchise agreements
This definition connects "Triggering Event" to franchise operations.
"Triggering Event" means an occurrence, such as a franchisee's failure to meet operational standards, that activates the franchisor’s rights to terminate or renegotiate the agreement.
Definition of "Triggering Event" in tax audits
This definition links "Triggering Event" to audits.
"Triggering Event" refers to the initiation of a tax audit or assessment, which could trigger contractual obligations for financial disclosure or adjustments.
Definition of "Triggering Event" in equity buybacks
This definition ties "Triggering Event" to equity transactions.
"Triggering Event" refers to the occurrence of an event, such as the achievement of a financial milestone, that triggers the company's obligation to buy back shares from investors.
Definition of "Triggering Event" in warranty clauses
This definition connects "Triggering Event" to warranty enforcement.
"Triggering Event" means an incident covered under the warranty terms, such as equipment failure, which triggers repair or replacement actions.
Definition of "Triggering Event" in pension plan amendments
This definition links "Triggering Event" to pension plans.
"Triggering Event" refers to a circumstance, such as a change in employment or retirement age, that activates amendments to pension benefits or eligibility criteria.
Definition of "Triggering Event" in equity conversion
This definition ties "Triggering Event" to equity conversion provisions.
"Triggering Event" refers to a specific condition, such as the conversion of debt to equity, which triggers the issuance of additional shares to stakeholders.
Definition of "Triggering Event" in investment maturity
This definition connects "Triggering Event" to investment deadlines.
"Triggering Event" means the maturity of an investment, which triggers the requirement for repayment or conversion into other securities.
Definition of "Triggering Event" in sponsorship agreements
This definition links "Triggering Event" to sponsorship terms.
"Triggering Event" refers to a situation, such as failure to meet performance targets, that triggers penalties or adjustments in the sponsorship agreement.
Definition of "Triggering Event" in settlement terms
This definition ties "Triggering Event" to contract settlement.
"Triggering Event" refers to an event, such as an arbitration award or settlement agreement, that triggers financial or operational actions as part of the settlement.
Definition of "Triggering Event" in exit clauses
This definition connects "Triggering Event" to exit provisions.
"Triggering Event" refers to an occurrence that activates an exit strategy, such as the sale of the business or the liquidation of assets.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.