Common use of Preservation and Disposition of Collateral Clause in Contracts

Preservation and Disposition of Collateral. (a) Prior to the subsequent placement of any Collateral in or upon any real property which any of the Companies has leased or mortgaged, the Companies shall at the Bank's request obtain a waiver from the lessor and/or the mortgagee, as the case may be, with respect to the rights (whether present or future) of the lessor or mortgagee with respect to that Collateral. At all times subsequent to the date of this Agreement, the Companies shall advise the Bank promptly, in writing and in reasonable detail of, (i) any material encumbrance or claim asserted against any of the Collateral; (ii) any material change in the composition of the Collateral; and (iii) the occurrence of any other event that would have a material adverse effect upon the aggregate value of the Collateral or upon the security interests of the Bank; (b) the Companies shall not sell or otherwise dispose of the Collateral, except that the Companies may (i) sell or otherwise dispose of the Inventory in the ordinary course of their businesses; (ii) may sell Equipment in a commercially reasonably manner for consideration fairly reflecting prevailing market values for property of like nature, (iii) may replace Equipment with newer equipment of like kind and replacement value, and (iv) collect their Accounts and notes receivable in the ordinary course of their businesses and in connection therewith, grant releases to the obligors thereunder; (c) the Companies shall keep the Collateral in good condition and shall not misuse, abuse, secrete, waste, or destroy any of the same; (d) the Companies shall not use the Collateral in violation of any statute, ordinance, regulation, rule, decree, or order; (e) the Companies shall pay promptly when due all taxes, assessments, charges, or levies upon the Collateral or in respect to the income or profits therefrom, other than taxes being contested in good faith and for which adequate reserves have been allocated in accordance with generally accepted accounting principles consistently applied; and (f) at its option following notice to the Companies and the Companies' failure to discharge, maintain, or perform, the Bank may discharge delinquent taxes or liens, security interests, or other encumbrances not permitted under subsection 5.5 of this Agreement at any time levied or placed on the Collateral and may pay for the maintenance and preservation of the Collateral. The Companies agree to reimburse the Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees) by the Bank pursuant to the foregoing authorization. Prior to an Event of Default, any payments under subsection 3.6(f) shall be treated as an advance under the Note. Should the Companies fail to pay said sum to the Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the obligations.

Preservation and Disposition of Collateral. The Borrower shall (a) Prior obtain, prior to the subsequent placement of any Collateral in or upon any real property which any of the Companies has leased or mortgagedmortgaged real property, the Companies shall at the Bank's request obtain a waiver from the lessor and/or the mortgagee, as the case may be, with respect to the rights (whether present or future) of the lessor or mortgagee with respect to that Collateral. At all times subsequent to the date of this Agreement, the Companies shall ; (b) advise the Bank promptly, in writing and in reasonable detail ofdetail, (i) of any material encumbrance or claim asserted against any of the Collateral; (ii) of any material change in the composition of the Collateral; and (iii) of the occurrence of any other event that would have a material adverse effect upon the aggregate value of the Collateral or upon the security interests interest of the Bank; (bc) the Companies shall not sell or otherwise dispose of the Collateral, except that the Companies may (i) sell or otherwise dispose of for the Inventory in the ordinary course of their businessesas otherwise permitted by this Agreement; (iid) may sell Equipment in a commercially reasonably manner for consideration fairly reflecting prevailing market values for property of like nature, (iii) may replace Equipment with newer equipment of like kind and replacement value, and (iv) collect their Accounts and notes receivable in the ordinary course of their businesses and in connection therewith, grant releases to the obligors thereunder; (c) the Companies shall keep the Collateral in good condition and shall not misuse, abuse, secrete, waste, waste or destroy any of the same; and (de) the Companies shall not use the Collateral in violation of any statute, ordinance, regulation, rule, decree, decree or order; (ef) the Companies shall pay promptly when due all not permit to become liens or encumbrances any taxes, assessments, charges, charges or levies upon the Collateral Accounts or the Inventory or in respect to the income or profits therefrom, other than taxes being contested in good faith and for which adequate reserves have been allocated in accordance with generally accepted accounting principles consistently applied; and (f) at . At its option following notice to the Companies and the Companies' failure to discharge, maintain, or performoption, the Bank may discharge delinquent taxes or taxes, liens, security interests, interests or other encumbrances not permitted under subsection 5.5 of this Agreement at any time levied or placed on the Collateral and may pay for the maintenance and preservation of the Collateral. The Companies agree Borrower agrees to reimburse the Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees) by the Bank pursuant to the foregoing authorization. Prior to an Event of Default, any payments under subsection 3.6(f) shall be treated as an advance under the Note. Should the Companies fail to pay said sum not be paid to the Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the obligationsObligations.

Preservation and Disposition of Collateral. The Borrower shall (a) Prior obtain, prior to the subsequent placement of any Collateral in or upon any real property which any of the Companies has leased or mortgagedmortgaged real property, the Companies shall at the Bank's request obtain a waiver from the lessor and/or the mortgagee, as the case may be, with respect to the rights (whether present or future) of the lessor or mortgagee with respect to that Collateral. At all times subsequent to the date of this Agreement, the Companies shall ; (b) advise the Bank promptly, in writing and in reasonable detail ofdetail, (i) of any material encumbrance or claim asserted against any of the Collateral; (ii) of any material change in the composition of the Collateral; and (iii) of the occurrence of any other event that would have a material adverse effect upon the aggregate value of the Collateral or upon the security interests interest of the Bank; (bc) the Companies shall not sell or otherwise dispose of the Collateral, except that the Companies may (i) sell or otherwise dispose of for the Inventory in the ordinary course of their businessesas otherwise permitted by this Agreement; (iid) may sell Equipment in a commercially reasonably manner for consideration fairly reflecting prevailing market values for property of like nature, (iii) may replace Equipment with newer equipment of like kind and replacement value, and (iv) collect their Accounts and notes receivable in the ordinary course of their businesses and in connection therewith, grant releases to the obligors thereunder; (c) the Companies shall keep the Collateral in good condition and shall not misuse, abuse, secrete, waste, waste or destroy any of the same; and (de) the Companies shall not use the Collateral in violation of any statute, ordinance, regulation, rule, decree, decree or order; (e) the Companies shall pay promptly when due all taxes, assessments, charges, or levies upon the Collateral or in respect to the income or profits therefrom, other than taxes being contested in good faith and for which adequate reserves have been allocated in accordance with generally accepted accounting principles consistently applied; and (f) at . At its option following notice to the Companies and the Companies' failure to discharge, maintain, or performoption, the Bank may discharge delinquent taxes or taxes, liens, security interests, interests or other encumbrances not permitted under subsection 5.5 of this Agreement at any time levied or placed on the Collateral and may pay for the maintenance and preservation of the Collateral. The Companies agree Borrower agrees to reimburse the Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' ’ fees) by the Bank pursuant to the foregoing authorization. Prior to an Event of Default, any payments under subsection 3.6(f) shall be treated as an advance under the Note. Should the Companies fail to pay said sum not be paid to the Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the obligationsObligations.

Preservation and Disposition of Collateral. The Borrower shall (a) Prior obtain, prior to the subsequent placement of any Collateral in or upon any real property which any of the Companies has leased or mortgagedmortgaged real property, the Companies shall at the Bank's request obtain a waiver from the lessor and/or the mortgagee, as the case may be, with respect to the rights (whether present or future) of the lessor or mortgagee with respect to that Collateral. At all times subsequent to the date of this Agreement, the Companies shall ; (b) advise the Bank promptly, in writing and in reasonable detail ofdetail, (i) of any material encumbrance or claim asserted against any of the Collateral; (ii) of any material change in the composition of the Collateral; and (iii) of the occurrence of any other event that would have a material adverse effect upon the aggregate value of the Collateral or upon the security interests interest of the Bank; (bc) the Companies shall not sell or otherwise dispose of the Collateral, except that the Companies may (i) sell or otherwise dispose of for the Inventory in the ordinary course of their businessesas otherwise permitted by this Agreement; (iid) may sell Equipment in a commercially reasonably manner for consideration fairly reflecting prevailing market values for property of like nature, (iii) may replace Equipment with newer equipment of like kind and replacement value, and (iv) collect their Accounts and notes receivable in the ordinary course of their businesses and in connection therewith, grant releases to the obligors thereunder; (c) the Companies shall keep the Collateral in good condition and shall not misuse, abuse, secrete, waste, waste or destroy any of the same; and (de) the Companies shall not use the Collateral in violation of any statute, ordinance, regulation, rule, decree, decree or order; (e) the Companies shall pay promptly when due all taxes, assessments, charges, or levies upon the Collateral or in respect to the income or profits therefrom, other than taxes being contested in good faith and for which adequate reserves have been allocated in accordance with generally accepted accounting principles consistently applied; and (f) at . At its option following notice to the Companies and the Companies' failure to discharge, maintain, or performoption, the Bank may discharge delinquent taxes or taxes, liens, security interests, interests or other encumbrances not permitted under subsection 5.5 of this Agreement at any time levied or placed on the Collateral and may pay for the maintenance and preservation of the Collateral. The Companies agree Borrower agrees to reimburse the Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees) by the Bank pursuant to the foregoing authorization. Prior to an Event of Default, any payments under subsection 3.6(f) shall be treated as an advance under the Note. Should the Companies fail to pay said sum not be paid to the Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the obligationsObligations.

Preservation and Disposition of Collateral. The Borrower shall (a) Prior use its best efforts to obtain, prior to the subsequent placement of any Collateral in or upon any leased real property which any of the Companies has leased or mortgagedproperty, the Companies shall at the Bank's request obtain a waiver from the lessor and/or the mortgagee, as the case may be, with respect to the rights (whether present or future) of the lessor or mortgagee with respect to that Collateral. At all times subsequent to the date of this Agreement, the Companies shall ; (b) advise the Bank promptly, in writing and in reasonable detail ofdetail, (i) of any material encumbrance or claim asserted against any of the Collateral; (ii) of any material change in the composition of the Collateral; and (iii) of the occurrence of any other event that would have a material adverse effect upon the aggregate value of the Collateral or upon the security interests interest of the Bank; (bc) the Companies shall not sell or otherwise dispose of the Collateral, except that the Companies may (i) sell or otherwise dispose of for the Inventory or Equipment as otherwise permitted by this Agreement or by any agreement executed in the ordinary course of their businessesconnection herewith; (iid) may sell Equipment in a commercially reasonably manner for consideration fairly reflecting prevailing market values for property of like nature, (iii) may replace Equipment with newer equipment of like kind and replacement value, and (iv) collect their Accounts and notes receivable in the ordinary course of their businesses and in connection therewith, grant releases to the obligors thereunder; (c) the Companies shall keep the Collateral in good condition and shall not misuse, abuse, secrete, waste, waste or destroy any of the same; and (de) the Companies shall not use the Collateral in violation of any statute, ordinance, regulation, rule, decree, decree or order; (ef) the Companies shall pay promptly when due all not permit any taxes, assessments, charges, charges or levies to become liens or encumbrances upon the Collateral Accounts or the Inventory or in respect to the income or profits therefrom, other than taxes being contested in good faith and for which adequate reserves have been allocated in accordance with generally accepted accounting principles consistently applied; and (f) at . At its option following notice to the Companies and the Companies' failure to discharge, maintain, or performoption, the Bank may discharge delinquent taxes or taxes, liens, security interests, interests or other encumbrances not permitted under subsection 5.5 of this Agreement at any time levied or placed on the Collateral and may pay for the maintenance and preservation of the Collateral. The Companies agree Borrower agrees to reimburse the Bank upon demand for any payment made or any expense incurred (including reasonable attorneys' fees) by the Bank pursuant to the foregoing authorization. Prior to an Event of Default, any payments under subsection 3.6(f) shall be treated as an advance under the Note. Should the Companies fail to pay said sum not be paid to the Bank upon demand, interest shall accrue thereon, from the date of demand until paid in full, at the highest rate set forth in any document or instrument evidencing any of the obligationsObligations.