Common use of Covenants Regarding the Collateral Clause in Contracts

Covenants Regarding the Collateral. (1) Aladdin Gaming shall keep and maintain, at its own cost and expense, satisfactory and complete records of the Collateral. Aladdin Gaming shall ▇▇▇▇ its books and records pertaining to the Collateral to evidence this Agreement and the security interests granted pursuant hereto. (2) All of the Collateral is and will be used or held for use by Aladdin Gaming in the conduct of its business and in a manner complying with all Applicable Laws unless the failure to comply with such Applicable Law would not have a Material Adverse Effect, and Aladdin Gaming shall not permanently discontinue use of the Collateral; provided that (i) Aladdin Gaming need not comply with any Applicable Law to the extent that such law is being contested in good faith by appropriate proceedings which do not have a Material Adverse Effect on the interest of GE Capital in the Collateral and do not give rise to the risk of any criminal liability on the part of GE Capital, (ii) Aladdin Gaming need not comply with any Applicable Law to the extent that Aladdin Gaming shall have obtained a non- conforming use or similar permit, and (iii) Aladdin Gaming may store on the Subject Property indefinitely any item of Collateral not then necessary for the operation of its business. (3) Aladdin Gaming shall keep and maintain the Collateral in good operating order, appearance, condition and repair (ordinary wear and tear excepted) in a manner consistent with customary industry practice and shall make all necessary replacements thereof. Aladdin Gaming shall promptly inform GE Capital of any material additions to or deletions from the Collateral. (4) Aladdin Gaming shall not permit any Collateral to become an accession to other personal property, unless GE Capital has a valid, perfected, and first priority Lien in such personal property. (5) Aladdin Gaming shall not, without the prior written consent of GE Capital, (A) remove any of the Collateral from the Subject Property (except, prior to the occurrence of an Event of Default, (i) to be stored in the warehouse on the Subject Property, or (ii) on a temporary basis for purposes of repair); or (B) sell, lease as a lessor, or otherwise dispose of any of the Collateral or any interest therein. (6) Aladdin Gaming shall, if at any time reasonably requested by GE Capital, affix in a prominent position on each unit of Collateral having a value in excess of $5,000.00 plates, tags or other identifying labels showing the interest therein of GE Capital. Aladdin Gaming will not, without GE Capital's prior written consent, alter or remove any identifying symbol or number on the Collateral. (7) Aladdin Gaming will not, without the prior consent of GE Capital, affix or install any accessory, equipment or device on any Collateral if such addition will materially impair the value, originally intended function or use of such Collateral. All additions, repairs, parts, supplies, accessories, equipment, and devices furnished, attached or affixed to any Collateral which are not readily removable without material damage to the Collateral shall be made only in compliance with Applicable Law, shall be free and clear of all Liens, encumbrances or rights of others, and shall become subject to the security interest of GE Capital. Aladdin Gaming will not, without the prior written consent of GE Capital and subject to such conditions as GE Capital may impose for its protection, affix or install any Collateral to or in any other personal or real property unless such Collateral may be removed from such other personal or real property without material damage to the Collateral or the other real or personal property. Any alterations or modifications to the Collateral that are, at any time during the term of this Agreement, required to comply with any Applicable Law, shall be made at the expense of Aladdin Gaming.