SUCH CHARGE IS ADEQUATELY RESERVED AGAINST ON SUCH GRANTOR'S
BOOKS IN ACCORDANCE WITH GAAP.
(H)
LIMITATION ON LIENS ON COLLATERAL.
NO GRANTOR WILL CREATE, INCUR
OR PERMIT TO EXIST, WILL DEFEND THE COLLATERAL AGAINST, AND WILL TAKE SUCH OTHER
ACTION AS IS NECESSARY TO REMOVE, ANY LIEN OR CLAIM ON OR TO THE COLLATERAL,
OTHER THAN THE LIENS CREATED HEREBY AND OTHER THAN AS PERMITTED PURSUANT TO THE
LOAN AGREEMENT, AND WILL DEFEND THE RIGHT, TITLE AND INTEREST OF THE SECURED
PARTY IN AND TO ANY OF THE COLLATERAL AGAINST THE CLAIMS AND DEMANDS OF ALL
PERSONS WHOMSOEVER.
(I)
LIMITATIONS ON DISPOSITIONS OF COLLATERAL.
NO GRANTOR WILL SELL,
TRANSFER, LEASE OR OTHERWISE DISPOSE OF ANY OF THE COLLATERAL, OR ATTEMPT, OFFER
OR CONTRACT TO DO SO EXCEPT FOR SALES OF INVENTORY IN THE ORDINARY COURSE OF ITS
BUSINESS OR AS OTHERWISE PERMITTED BY THE LOAN AGREEMENT.
(J)
LIMITATIONS ON MODIFICATIONS OF AGREEMENTS GIVING RISE TO
RECEIVABLES; EXERCISE OF RIGHTS; NOTICES.
NO GRANTOR WILL (I) OTHER THAN IN THE
ORDINARY COURSE OF BUSINESS AS GENERALLY CONDUCTED BY SUCH GRANTOR OVER A PERIOD
OF TIME, AMEND, MODIFY, TERMINATE OR WAIVE ANY PROVISION OF ANY AGREEMENT GIVING
RISE TO A RECEIVABLE (INCLUDING, IN RESPECT OF THE EXCESS CASH FLOW RECEIVABLES,
ANY RELATED MORTGAGE LOAN DOCUMENTS) IN ANY MANNER WHICH COULD REASONABLY BE
EXPECTED TO MATERIALLY ADVERSELY AFFECT THE VALUE OF SUCH RECEIVABLE AS
COLLATERAL, (II) OTHER THAN IN THE ORDINARY COURSE OF BUSINESS AS GENERALLY
CONDUCTED BY SUCH GRANTOR OVER A PERIOD OF TIME, FAIL TO EXERCISE PROMPTLY AND
DILIGENTLY EACH AND EVERY MATERIAL RIGHT WHICH IT MAY HAVE UNDER EACH AGREEMENT
GIVING RISE TO A RECEIVABLE (OTHER THAN ANY RIGHT OF TERMINATION) OR (III) FAIL
TO DELIVER TO THE SECURED PARTY A COPY OF EACH MATERIAL DEMAND, NOTICE OR
DOCUMENT RECEIVED BY IT RELATING IN ANY WAY TO ANY AGREEMENT GIVING RISE TO A
MATERIAL RECEIVABLE.
(K)
LIMITATIONS ON DISCOUNTS, COMPROMISES, EXTENSIONS OF RECEIVABLES.
OTHER THAN IN THE ORDINARY COURSE OF BUSINESS CONSISTENT WITH ITS PAST PRACTICE,
NO GRANTOR WILL (I) GRANT ANY EXTENSION OF THE TIME OF PAYMENT OF ANY
RECEIVABLE, (II) COMPROMISE, COMPOUND OR SETTLE ANY RECEIVABLE FOR LESS THAN THE
FULL AMOUNT THEREOF, (III) RELEASE, WHOLLY OR PARTIALLY, ANY PERSON LIABLE FOR
THE PAYMENT OF ANY RECEIVABLE, OR (IV) ALLOW ANY CREDIT OR DISCOUNT WHATSOEVER
ON ANY RECEIVABLE.
(L)
MAINTENANCE OF EQUIPMENT.
EACH GRANTOR WILL MAINTAIN EACH ITEM
OF EQUIPMENT IN GOOD OPERATING CONDITION, ORDINARY WEAR AND TEAR AND IMMATERIAL
IMPAIRMENTS OF VALUE AND DAMAGE BY THE ELEMENTS EXCEPTED, AND WILL PROVIDE ALL
MAINTENANCE, SERVICE AND REPAIRS NECESSARY FOR SUCH PURPOSE, EXCEPT THAT SUCH
GRANTOR'S OBLIGATIONS PURSUANT TO THIS SECTION 5(L) SHALL NOT EXTEND TO OBSOLETE
EQUIPMENT.
(M)
MAINTENANCE OF INSURANCE.
EACH GRANTOR WILL MAINTAIN, WITH
FINANCIALLY SOUND AND REPUTABLE COMPANIES, INSURANCE POLICIES (I) INSURING THE
INVENTORY AND EQUIPMENT AGAINST LOSS BY FIRE, EXPLOSION, THEFT AND SUCH OTHER
CASUALTIES AS MAY BE REASONABLY SATISFACTORY TO THE SECURED PARTY IN AMOUNTS
COMPARABLE TO AMOUNTS OF INSURANCE COVERAGE OBTAINED BY SIMILAR