STAYED WITHIN THIRTY (30) DAYS
(BUT NO CREDIT EXTENSIONS SHALL BE MADE BEFORE ANY INSOLVENCY PROCEEDING IS
DISMISSED);
8.6
OTHER AGREEMENTS.
IF THERE IS A DEFAULT IN
ANY AGREEMENT TO WHICH BORROWER IS A PARTY WITH A THIRD PARTY OR PARTIES
RESULTING IN THE ACCELERATION OF THE MATURITY OF ANY INDEBTEDNESS IN AN AMOUNT
IN EXCESS OF TWO HUNDRED FIFTY THOUSAND DOLLARS ($250,000) OR THAT COULD
REASONABLY BE EXPECTED TO RESULT IN A MATERIAL ADVERSE CHANGE;
8.7
JUDGMENTS.
IF A JUDGMENT OR JUDGMENTS FOR THE
PAYMENT OF MONEY IN AN AMOUNT, INDIVIDUALLY OR IN THE AGGREGATE, OF AT LEAST TWO
HUNDRED FIFTY THOUSAND DOLLARS ($250,000) SHALL BE RENDERED AGAINST BORROWER AND
SHALL REMAIN UNSATISFIED AND UNSTAYED FOR A PERIOD OF TWENTY (20) DAYS (PROVIDED
THAT NO CREDIT EXTENSIONS WILL BE MADE PRIOR TO THE SATISFACTION OR STAY OF SUCH
JUDGMENT);
8.8
MISREPRESENTATIONS.
IF ANY WARRANTY OR
REPRESENTATION IN THIS AGREEMENT OR IN ANY WRITING DELIVERED BY OR ON BEHALF OF
BORROWER TO BANK SHALL HAVE BEEN INCORRECT IN ANY MATERIAL RESPECT WHEN MADE;
AND
8.9
SUBORDINATED DEBT. A DEFAULT OR BREACH OCCURS
UNDER ANY AGREEMENT BETWEEN BORROWER AND ANY CREDITOR OF BORROWER THAT SIGNED A
SUBORDINATION AGREEMENT WITH BANK, OR ANY CREDITOR THAT HAS SIGNED A
SUBORDINATION AGREEMENT WITH BANK BREACHES ANY TERMS OF THE SUBORDINATION
AGREEMENT AND THE BANK IN ITS REASONABLE JUDGMENT, DETERMINES THAT SUCH BREACH
CAN REASONABLY BE EXPECT TO ADVERSELY AFFECT THE BANK'S RIGHTS HEREUNDER.
9
BANK'S RIGHTS AND REMEDIES
9.1
RIGHTS AND REMEDIES.
WHEN AN EVENT OF DEFAULT
OCCURS AND CONTINUES BANK MAY, WITHOUT NOTICE OR DEMAND, DO ANY OR ALL OF THE
FOLLOWING:
(A)
DECLARE ALL OBLIGATIONS IMMEDIATELY DUE AND
PAYABLE (BUT IF AN EVENT OF DEFAULT DESCRIBED IN SECTION 8.5 OCCURS ALL
OBLIGATIONS ARE IMMEDIATELY DUE AND PAYABLE WITHOUT ANY ACTION BY BANK);
(B)
STOP ADVANCING MONEY OR EXTENDING CREDIT FOR
BORROWER'S BENEFIT UNDER THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT BETWEEN
BORROWER AND BANK;
(C)
DEMAND THAT THE BORROWER (I) DEPOSIT CASH
WITH BANK IN AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT OF ANY LETTERS OF CREDIT
REMAINING UNDRAWN, AS COLLATERAL SECURITY FOR THE REPAYMENT OF ANY FUTURE
DRAWINGS UNDER SUCH LETTERS OF CREDIT, AND THE BORROWER SHALL FORTHWITH DEPOSIT
AND PAY SUCH AMOUNTS, AND (II) PAY IN ADVANCE ALL LETTER OF CREDIT FEES
SCHEDULED TO BE PAID OR PAYABLE OVER THE REMAINING TERM OF ANY LETTERS OF
CREDIT;
(D)
SETTLE OR ADJUST DISPUTES AND CLAIMS
DIRECTLY WITH ACCOUNT DEBTORS FOR AMOUNTS, ON TERMS AND IN ANY ORDER THAT BANK
CONSIDERS ADVISABLE AND NOTIFY ANY PERSON OWING BORROWER MONEY OF BANK'S
SECURITY INTEREST IN SUCH FUNDS AND VERIFY THE AMOUNT OF SUCH ACCOUNT;
(E)
MAKE ANY PAYMENTS AND DO ANY ACTS IT
CONSIDERS NECESSARY OR REASONABLE TO PROTECT ITS SECURITY INTEREST IN THE
COLLATERAL.
BORROWER SHALL ASSEMBLE THE COLLATERAL IF BANK REQUESTS AND MAKE IT
AVAILABLE AS
10
BANK DESIGNATES TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW. BORROWER WILL
NOT INTERFERE WITH BANK ENTERING ANY PREMISES WHERE THE COLLATERAL IS