FORTH IN THE DOMESTIC LOAN DOCUMENTS.
6.5
EXIM INSURANCE.
IF REQUIRED BY BANK, BORROWER WILL OBTAIN, AND PAY
WHEN DUE ALL PREMIUMS WITH RESPECT TO, AND MAINTAIN UNINTERRUPTED FOREIGN CREDIT
INSURANCE.
IN ADDITION, IF REQUESTED BY BANK, BORROWER WILL EXECUTE IN FAVOR OF
BANK AN ASSIGNMENT OF PROCEEDS OF ANY INSURANCE POLICY OBTAINED BY BORROWER AND
ISSUED BY EXIM BANK INSURING AGAINST COMPREHENSIVE COMMERCIAL AND POLITICAL RISK
(THE "EXIM BANK POLICY").
THE
6
INSURANCE PROCEEDS FROM THE EXIM BANK POLICY ASSIGNED OR PAID TO BANK WILL BE
APPLIED TO THE BALANCE OUTSTANDING UNDER THIS EXIM AGREEMENT.
BORROWER WILL
IMMEDIATELY NOTIFY BANK AND EXIM BANK IN WRITING UPON SUBMISSION OF ANY CLAIM
UNDER THE EXIM BANK POLICY.
6.6
FURTHER ASSURANCES.
EXECUTE ANY FURTHER INSTRUMENTS AND TAKE
FURTHER ACTION AS BANK REASONABLY REQUESTS TO PERFECT OR CONTINUE BANK'S LIEN IN
THE COLLATERAL OR TO EFFECT THE PURPOSES OF THIS EXIM AGREEMENT.
7
NEGATIVE COVENANTS
Borrower shall not do any of the following without Bank's prior written consent:
7.1
DOMESTIC LOAN DOCUMENTS.
VIOLATE OR OTHERWISE FAIL TO COMPLY WITH
ANY PROVISIONS OF THE DOMESTIC LOAN DOCUMENTS, WHICH PROVISIONS ARE INCORPORATED
INTO THIS EXIM AGREEMENT BY REFERENCE, AND SHALL SURVIVE THE TERMINATION OF
DOMESTIC AGREEMENT.
7.2
EXIM BORROWER AGREEMENT.
VIOLATE OR OTHERWISE FAIL TO COMPLY WITH
ANY PROVISION OF THE EXIM BORROWER AGREEMENT, INCLUDING, WITHOUT LIMITATION, THE
NEGATIVE COVENANTS SET FORTH THEREIN.
7.3
EXIM GUARANTY.
TAKE ANY ACTION, OR PERMIT ANY ACTION TO BE TAKEN,
THAT CAUSES OR, WITH THE PASSAGE OF TIME, COULD CAUSE, THE EXIM GUARANTY TO
CEASE TO BE IN FULL FORCE AND EFFECT.
8
EVENTS OF DEFAULT
Any one of the following shall constitute an event of default (an "Event of
Default") under this EXIM Agreement:
8.1
PAYMENT DEFAULT.
BORROWER FAILS TO (A) MAKE ANY PAYMENT OF
PRINCIPAL OR INTEREST ON ANY CREDIT EXTENSION ON ITS DUE DATE, OR (B) PAY ANY
OTHER OBLIGATIONS WITHIN THREE (3) BUSINESS DAYS AFTER SUCH OBLIGATIONS ARE DUE
AND PAYABLE (WHICH THREE (3) DAY GRACE PERIOD SHALL NOT APPLY TO PAYMENTS DUE ON
THE REVOLVING LINE MATURITY DATE).
DURING THE CURE PERIOD, THE FAILURE TO CURE
THE PAYMENT DEFAULT IS NOT AN EVENT OF DEFAULT (BUT NO CREDIT EXTENSION WILL BE
MADE DURING THE CURE PERIOD);
8.2
COVENANT DEFAULT.
(a) Borrower fails or neglects to perform any obligation in Section 6 or
violates any covenant in Section 7; or
(B) BORROWER FAILS OR NEGLECTS TO PERFORM, KEEP, OR OBSERVE ANY OTHER TERM,
PROVISION, CONDITION, COVENANT OR AGREEMENT CONTAINED IN THIS EXIM AGREEMENT OR
ANY LOAN DOCUMENTS, AND AS TO ANY DEFAULT (OTHER THAN THOSE SPECIFIED IN THIS
SECTION 8) UNDER SUCH OTHER TERM, PROVISION, CONDITION, COVENANT OR AGREEMENT
THAT CAN BE CURED, HAS FAILED TO CURE THE DEFAULT WITHIN TEN (10) DAYS AFTER THE
OCCURRENCE THEREOF; PROVIDED, HOWEVER, THAT IF THE DEFAULT CANNOT BY ITS NATURE
BE CURED WITHIN THE TEN (10) DAY PERIOD OR CANNOT AFTER DILIGENT ATTEMPTS BY
BORROWER BE CURED WITHIN SUCH TEN (10) DAY PERIOD, AND SUCH DEFAULT IS