COVERING SUCH INVENTORY OR EQUIPMENT.
EXCEPT FOR INVENTORY SOLD IN
THE ORDINARY COURSE OF BUSINESS AND EXCEPT FOR SUCH OTHER LOCATIONS AS BANK MAY
APPROVE IN WRITING, BORROWER SHALL KEEP THE INVENTORY AND EQUIPMENT ONLY AT THE
LOCATION SET FORTH IN SECTION 10 AND SUCH OTHER LOCATIONS OF WHICH BORROWER
GIVES BANK PRIOR WRITTEN NOTICE AND AS TO WHICH BANK FILES A FINANCING STATEMENT
WHERE NEEDED TO PERFECT ITS SECURITY INTEREST.
7.11 NO INVESTMENT COMPANY; MARGIN REGULATION.
BECOME OR BE CONTROLLED BY AN
"INVESTMENT COMPANY," WITHIN THE MEANING OF THE INVESTMENT COMPANY ACT OF 1940,
OR BECOME PRINCIPALLY ENGAGED IN, OR UNDERTAKE AS ONE OF ITS IMPORTANT
ACTIVITIES, THE BUSINESS OF EXTENDING CREDIT FOR THE PURPOSE OF PURCHASING OR
CARRYING MARGIN STOCK, OR USE THE PROCEEDS OF ANY CREDIT EXTENSION FOR SUCH
PURPOSE.
8.
EVENTS OF DEFAULT.
ANY ONE OR MORE OF THE FOLLOWING EVENTS SHALL CONSTITUTE AN EVENT OF DEFAULT BY
BORROWER UNDER THIS AGREEMENT:
8.1
PAYMENT DEFAULT.
IF BORROWER FAILS TO PAY ANY OF THE OBLIGATIONS WHEN
DUE;
8.2
COVENANT DEFAULT.
(A)
IF BORROWER FAILS TO PERFORM ANY OBLIGATION UNDER ARTICLE 6 OR VIOLATES
ANY OF THE COVENANTS CONTAINED IN ARTICLE 7 OF THIS AGREEMENT; OR
(B)
IF BORROWER FAILS OR NEGLECTS TO PERFORM OR OBSERVE ANY OTHER MATERIAL
TERM, PROVISION, CONDITION, COVENANT CONTAINED IN THIS AGREEMENT, IN ANY OF THE
LOAN DOCUMENTS, OR IN ANY OTHER PRESENT OR FUTURE AGREEMENT BETWEEN BORROWER AND
BANK AND AS TO ANY DEFAULT UNDER SUCH OTHER TERM, PROVISION, CONDITION OR
COVENANT THAT CAN BE CURED, HAS FAILED TO CURE SUCH DEFAULT WITHIN 10 DAYS AFTER
BORROWER RECEIVES NOTICE THEREOF OR ANY OFFICER OF BORROWER BECOMES AWARE
THEREOF; PROVIDED, HOWEVER, THAT IF THE DEFAULT CANNOT BY ITS NATURE BE CURED
WITHIN THE 10 DAY PERIOD OR CANNOT AFTER DILIGENT ATTEMPTS BY BORROWER BE CURED
WITHIN SUCH 10 DAY PERIOD, AND SUCH DEFAULT IS LIKELY TO BE CURED WITHIN A
REASONABLE TIME, THEN BORROWER SHALL HAVE AN ADDITIONAL REASONABLE PERIOD (WHICH
SHALL NOT IN ANY CASE EXCEED 30 DAYS) TO ATTEMPT TO CURE SUCH DEFAULT, AND
WITHIN SUCH REASONABLE TIME PERIOD THE FAILURE TO HAVE CURED SUCH DEFAULT SHALL
NOT BE DEEMED AN EVENT OF DEFAULT BUT NO CREDIT EXTENSIONS WILL BE MADE;
8.3
MATERIAL ADVERSE CHANGE.
IF THERE OCCURS A MATERIAL ADVERSE CHANGE IN
BORROWER'S PROSPECTS, BUSINESS OR FINANCIAL CONDITION, OR IF THERE IS A MATERIAL
IMPAIRMENT IN THE PROSPECT OF REPAYMENT OF ANY PORTION OF THE OBLIGATIONS OR A
MATERIAL IMPAIRMENT IN THE PERFECTION, VALUE OR PRIORITY OF BANK'S SECURITY
INTERESTS IN THE COLLATERAL;
8.4
ATTACHMENT.
IF ANY MATERIAL PORTION OF BORROWER'S ASSETS IS ATTACHED,
SEIZED, SUBJECTED TO A WRIT OR DISTRESS WARRANT, OR IS LEVIED UPON, OR COMES
INTO THE POSSESSION OF ANY TRUSTEE, RECEIVER OR PERSON ACTING IN A SIMILAR
CAPACITY AND SUCH ATTACHMENT, SEIZURE, WRIT OR DISTRESS WARRANT OR LEVY HAS NOT
BEEN REMOVED, DISCHARGED OR RESCINDED WITHIN 10 DAYS, OR IF BORROWER IS
ENJOINED, RESTRAINED, OR IN ANY WAY PREVENTED BY COURT ORDER FROM CONTINUING TO