DATE HEREOF,
THE GRANTOR IDENTIFIES THE EXISTENCE OF A COMMERCIAL TORT CLAIM BELONGING TO THE
GRANTOR THAT HAS ARISEN IN THE COURSE OF THE GRANTOR'S BUSINESS IN ADDITION TO
THE COMMERCIAL TORT CLAIMS DESCRIBED IN EXHIBIT "F", WHICH ARE ALL OF THE
GRANTOR'S COMMERCIAL TORT CLAIMS AS OF THE DATE HEREOF, THEN THE GRANTOR SHALL
GIVE THE SECURED PARTY PROMPT NOTICE THEREOF, BUT IN ANY EVENT NOT LESS
FREQUENTLY THAN QUARTERLY.
THE GRANTOR AGREES PROMPTLY UPON REQUEST BY THE
SECURED PARTY TO EXECUTE AND DELIVER TO THE SECURED PARTY ANY SUPPLEMENT TO THIS
SECURITY AGREEMENT OR ANY OTHER DOCUMENT REASONABLY REQUESTED BY THE SECURED
PARTY TO EVIDENCE THE GRANT OF A SECURITY INTEREST THEREIN IN FAVOR OF THE
SECURED PARTY.
4.12.
INSURANCE.
THE GRANTOR SHALL (I) MAINTAIN IN FULL
FORCE AND EFFECT WITH RESPECT TO ITS INSURABLE PROPERTIES, INSURANCE POLICIES IN
SUCH AMOUNTS AND COVERING SUCH RISKS AS WOULD BE CONSISTENT WITH PRUDENT
INDUSTRY PRACTICE, (II) CAUSE EACH INSURANCE POLICY PERTAINING TO THE COLLATERAL
TO (A) NAME THE SECURED PARTY AS AN "ADDITIONAL INSURED" IF SUCH POLICY IS A
LIABILITY POLICY, (B) NAME THE SECURED PARTY AS A "MORTGAGEE" AND "LOSS PAYEE"
AS TO CLAIMS IN EXCESS OF $50,000 AND INCLUDE A STANDARD AGENT'S LOSS PAYABLE
ENDORSEMENT IN FAVOR OF THE SECURED PARTY SATISFACTORY TO THE SECURED PARTY IF
SUCH POLICY IS A PROPERTY INSURANCE POLICY, (C) PROVIDE THAT, THE SECURED PARTY
SHALL BE NOTIFIED IN WRITING OF ANY PROPOSED CANCELLATION OR MODIFICATION OF
SUCH POLICY INITIATED BY THE GRANTOR'S INSURER AT LEAST THIRTY (30) DAYS IN
ADVANCE PRIOR TO ANY PROPOSED CANCELLATION OR MODIFICATION, (D) PROVIDE THAT ALL
INSURANCE PROCEEDS FOR LOSSES SHALL BE PAYABLE TO THE SECURED PARTY AFTER THE
OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, (E) WAIVE ANY
RIGHT OF SUBROGATION OF THE INSURERS AGAINST THE SECURED PARTY AND WAIVE ANY
RIGHT OF THE INSURERS TO ANY SETOFF OR COUNTERCLAIM OR ANY OTHER DEDUCTION,
WHETHER BY ATTACHMENT OR OTHERWISE, IN RESPECT OF ANY LIABILITY OF THE GRANTOR,
AND (E) PROVIDE THAT SUCH INSURANCE SHALL BE PRIMARY INSURANCE, THAT THE
INSURERS UNDER SUCH INSURANCE POLICIES SHALL BE LIABLE UNDER SUCH POLICIES
WITHOUT RIGHT OF CONTRIBUTION FROM ANY OTHER INSURANCE COVERAGE AND EXPRESSLY
PROVIDE THAT LIABILITY FOR PREMIUMS SHALL BE SOLELY A LIABILITY OF THE GRANTOR.
4.13.
REAL PROPERTY.
IN THE EVENT THAT AT ANY TIME THAT
THE SECURED OBLIGATIONS (OTHER THAN INCHOATE INDEMNITY OBLIGATIONS) ARE
OUTSTANDING, THE GRANTOR BECOMES THE OWNER OF ANY REAL PROPERTY, THE GRANTOR
SHALL ENTER INTO A MORTGAGE OF SUCH REAL PROPERTY, IN FORM AND SUBSTANCE
REASONABLY SATISFACTORY TO THE SECURED PARTY TO SECURE THE PAYMENT AND
PERFORMANCE OF THE SECURED OBLIGATIONS.
ARTICLE V
EVENTS OF DEFAULT REMEDIES
5.1.
ACCELERATION AND REMEDIES.
UPON THE
ACCELERATION BY THE SECURED PARTY OF THE GRANTOR'S OBLIGATIONS UNDER THE NOTE,
THE SECURED OBLIGATIONS SHALL IMMEDIATELY BECOME DUE AND PAYABLE WITHOUT
PRESENTMENT, DEMAND, PROTEST OR NOTICE OF ANY KIND, ALL OF WHICH ARE HEREBY
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EXPRESSLY WAIVED, AND THE SECURED PARTY MAY EXERCISE IN