Common use of Covenants Concerning the Collateral Clause in Contracts

Covenants Concerning the Collateral. Company covenants that from and after the date of this Agreement and until the Obligations are paid in full in cash it shall: (a) not dispose of any of the Collateral whether by sale, lease or otherwise except for (i) the sale of Inventory in the ordinary course of business, (ii) the disposition or transfer of obsolete surplus, scrap and worn-out Equipment in the ordinary course of business during any fiscal year having an aggregate fair market value of not more than $200,000 (inclusive of amounts disposed of by PI), and (iii) transfers and dispositions in respect of obsolete intellectual property assets; (b) not encumber, mortgage, pledge, assign or grant any security interest in any Collateral or any of Company’s other assets to anyone other than Secured Party, except for Permitted Encumbrances; (c) place notations upon Company’s books of account and any financial statement prepared by Company to disclose Secured Party’s security interest in the Collateral; (d) defend the Collateral against the claims and demands of third parties. (e) keep and maintain the Equipment in good operating condition, except for ordinary wear and tear, and shall make all necessary repairs and replacements thereof so that the value and operating efficiency shall at all times be maintained and preserved. Company shall not permit any such items to become a fixture to real estate or accessions to other personal property other than when such real estate or other personal property is owned by Company, PI or any of their Subsidiaries and Secured Party has a first priority lien or security interest in such real estate or other personal property; (f) not extend the payment terms of any material amount of Receivables without prompt notice thereof to Secured Party; and (g) perform all other steps reasonably requested by Secured Party to create and maintain in Secured Party’s favor a valid perfected first priority security interest in all Collateral.

Covenants Concerning the Collateral. Company covenants that from and after the date of this Agreement and until the Obligations are paid in full in cash it shall: (a) not dispose of any of the Collateral whether by sale, lease or otherwise except for (i) the sale of Inventory in the ordinary course of business, business and (ii) the disposition or transfer of obsolete surplus, scrap and worn-out Equipment in the ordinary course of business during any fiscal year having an aggregate fair market value of not more than $200,000 100,000 and only to the extent that (inclusive x) the proceeds of amounts disposed any such disposition are used to acquire replacement Equipment which is subject to Secured Party's first priority security interest or (y) the proceeds of by PI), and (iii) transfers and dispositions which are remitted to Secured Party in respect reduction of obsolete intellectual property assetsthe Obligations; (b) not encumber, mortgage, pledge, assign or grant any security interest in any Collateral or any of Company’s 's other assets to anyone other than Secured Party, except for Permitted EncumbrancesLiens; (c) place notations upon Company’s 's books of account and any financial statement prepared by Company to disclose Secured Party’s 's security interest in the Collateral; (d) defend the Collateral against the claims and demands of third all parties. (e) keep and maintain the Equipment in good operating condition, except for ordinary wear and tear, and shall make all necessary repairs and replacements thereof so that the value and operating efficiency shall at all times be maintained and preserved. Company shall not permit any such items to become a fixture to real estate or accessions to other personal property other than when such real estate or other personal property is owned by Company, PI or any of their Subsidiaries and Secured Party has a first priority lien or security interest in such real estate or other personal property; (f) not extend the payment terms of any material amount of Receivables Receivable without prompt notice thereof to Secured Party; and (g) perform all other steps reasonably requested by Secured Party to create and maintain in Secured Party’s 's favor a valid perfected first priority security interest in all Collateral.

Covenants Concerning the Collateral. Company covenants that from and after the date of this Agreement and until the Obligations are paid in full in cash it shall: (a) not dispose of any of the Collateral whether by sale, lease or otherwise except for (i) the sale of Inventory in the ordinary course of business, (ii) the disposition or transfer of obsolete surplus, scrap and worn-out Equipment in the ordinary course of business during any fiscal year having an aggregate fair market value of not more than $200,000 (inclusive of amounts disposed of by PI), and (iii) transfers and dispositions in respect of obsolete intellectual property assets; (b) not encumber, mortgage, pledge, assign or grant any security interest in any Collateral or any of Company’s other assets to anyone other than Secured Party, except for Permitted Encumbrances; (c) place notations upon Company’s books of account and any financial statement prepared by Company to disclose Secured Party’s security interest in the Collateral; (d) defend the Collateral against the claims and demands of third parties. (e) keep and maintain the Equipment in good operating condition, except for ordinary wear and tear, and shall make all necessary repairs and replacements thereof so that the value and operating efficiency shall at all times be maintained and preserved. Company shall not permit any such items to become a fixture to real estate or accessions to other personal property other than when such real estate or other personal property is owned by Company, PI or any of their Subsidiaries and Secured Party has a first priority lien or security interest in such real estate or other personal property; (f) not extend the payment terms of any material amount of Receivables without prompt notice thereof to Secured Party; and; (g) perform all other steps reasonably requested by Secured Party to create and maintain in Secured Party’s favor a valid perfected first priority security interest in all Collateral; and (h) not grant “control” (within the meaning of such term under Section 1(2) of the PPSA) over any Investment Property to any Person other than Agent.