Common use of Collateral Security and Guaranties Clause in Contracts

Collateral Security and Guaranties. The Obligations of the Borrowers shall be guaranteed equally and ratably by the Parent and each other Subsidiary (direct and indirect) of the Parent, to the extent that such other Subsidiary of the Parent is required to guaranty the obligations of the Parent under the terms of the Indentures relating to the Senior Notes. The Obligations of the Borrowers shall be secured by a perfected first priority security interest (subject only to Permitted Liens entitled to priority under applicable law) in (i) certain US Flag Vessels to the extent contemplated by the US Vessel Mortgage, and (ii) certain other assets of the Borrowers to the extent contemplated by the Security Documents; provided that, notwithstanding anything to the contrary contained in the Security Documents, the aggregate amount of Obligations of the Parent and the Borrowers which is secured pursuant to the Security Documents shall not, at any time, exceed the sum of (i) $65,000,000 plus (ii) fifteen percent (15%) of Consolidated Net Tangible Assets.