Common use of Hypothecation Clause in Contracts

Hypothecation. (i) The Borrower do hereby hypothecate and charge by way of first exclusive charge to and in favour of the Lender for the Credit Facilities mentioned hereinabove the whole of the Borrower’s present and future stocks of raw materials, goods in process of manufacture, semi-finished goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to or may hereafter from time to time during the continuance of this security belong to the Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower’s factory, godowns and/or their premises wherever else the same may be situated, stored, or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar moveable assets in course of transit or delivery to the Borrower and all of which hereinafter for sake of brevity are referred to as the said “Stocks” and all of the Borrower’s present and future book debts, outstanding monies, receivables, claims, bills, investments, rights to or on moveable properties and moveable assets forming part of current assets which are now due owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to the Borrower in the course of its business and all of which hereinafter for sake of brevity are referred to as the said “Book Debts” and together with all benefits, advantages and legal incidence thereof and All the Borrower’s present and future movable plant, machinery, vehicles and equipments belonging to the Borrower which now are, or may hereinafter from time to time during the subsistence of this Agreement or during the subsistence of the securities hereby created, be brought in or stored in or about the Borrower’s factories, premises, warehouses and godowns including any plant/ machineries/vehicles/equipment’s in the course of transit or delivery wherever lying or parked and all of which hereinafter for sake of brevity are referred to as the said “Plant & Machinery”. The moveable/immovable assets hereby hypothecated including the aforesaid Stocks, Book Debts and Plant and Machinery are hereinafter collectively referred to as the “Hypothecated Assets”. (ii) The said Hypothecated Assets which are hereby hypothecated by the Borrower to and in favour of the Lender by way of First exclusive charge shall be remain as security to the Lender for the due payment of Said Dues by the Borrower to the Lender on demand of all monies at any time payable by the Borrower to the Lender under or in respect of the said Credit Facilities and whether for principal, interest, service charge, commitment charge, commission, fee, discount or for costs, charges and expenses or other monies, payable hereunder by the Borrower to Lender which may be incurred by the Lender and for the due payment and discharge of all indebtedness and/or/ liability of the Borrower to the Lender including in respect of any bills of exchanges, promissory notes or instruments at any time drawn, made accepted or endorsed by the Borrower solely or jointly with others which the Lender may discount or become interested in, together with all interest, discount, commission, fee, charges (including service charges) costs ( between attorney/advocate and client ) and expenses payable to or incurred by the Lender. The Borrower shall not remove or cause or permit to be removed any of the Hypothecated Assets from any of the premises, factories or godowns of the Borrower or wheresoever otherwise they may be kept or divert or cause or permit any of the Hypothecated Assets to be diverted while in transit except for the purpose of dealing with the Hypothecated Assets in the ordinary course of Borrower’s business. (iii) In the event of the sale of the Hypothecated Assets and realisation of the sale proceeds, such sale proceeds shall be forthwith credited/deposited by the Borrower to its account with the Lender and shall not be dealt with any other manner whatsoever. In the case of shipment or movement of the Hypothecated Assets by the ship, railway or lorry or otherwise, the Borrower shall hand over to the Lender for collection the relative documents including the relative Bills of lading, railway receipts and lorry receipts duly endorsed in favour of the Lender to enable the Lender to realise the proceeds thereof. If so required by the Lender, the Borrower shall cause to be displayed at all places whereby any of the Hypothecated Assets may be kept, sign boards prominently indicating that the Hypothecated Assets are hypothecated to the Lender; the sign boards to be displayed in such manner and form as may be required by the Lender. (iv) The Borrower shall at all time during the continuance of this security keep and maintain a margin of security of % against the said Plant & Machinery and _% against the said Stocks and % against the said Book Debts, in favour of the Lender (herein after called the said “Margin”) or such other percentage against such assets as the Lender may from time to time determine of the cost or market value (market value as found by the Lender) whichever is lower of the said Plant & Machinery, Stocks and Book Debts or any part thereof. The Lender shall be entitled to and shall be at liberty to change from time to time the Margin’s and the Borrower shall be bound by such change. The Borrower shall at all times maintain the said Plant & Machinery and a sufficient quantity of the said Stocks and/or the said Book Debts to provide the necessary margin of security as specified herein and as may be required by the Lender from time to time and will forthwith whenever necessary provide further assets approved by the Lender to restore such Margin or reduce the amount for the time being due to the Lender by cash payment so as to restore/maintain the said Margin. (v) The Borrower hereby declares that all the Hypothecated Assets and all sales and realisations and the insurance proceeds thereof and all documents relating to the Hypothecated Assets shall be held in trust by Borrower for the Lender. The Borrower shall ensure that no charge or encumbrance is created on Hypothecated Assets or any of them and that nothing is done that may adversely affect the security created hereby on the Hypothecated Assets in favour of the Lender. (vi) That the Borrower shall make best endeavour to obtain payment of all the said Book Debts as and when the same shall become payable and pay all such sums when received into the said Facility Account with the Lender. Further, the Borrower shall not except in the ordinary course of business, receive, release or compound any of the said Book Debts without the consent in writing of the Lender and will not do anything whereby the recovery thereof may be delayed, impeded, prejudiced, prevented or become time barred. (vii) The Borrower shall execute on demand by the Lender such further documents as may be required by the Lender to perfect the security and / or vest the said Hypothecated Assets or any of them in favour of the Lender and to render the same readily realizable or transferable by the Lender at any time. (viii) That the Lender shall not in any way be responsible in respect of the quantity, quality, weight, amount, value, condition and final out turn of the said Hypothecated Assets if the same are or happen to be in possession of the Lender and for any loss, destruction or deterioration thereof or damage thereto occasioned by theft, pilferage, robbery, fire, riot and civil commotion, malicious damage or otherwise howsoever whatsoever may be the circumstances or the reason under or for which the loss, destruction, deterioration or damage may arise, including any act, omission , negligence, default of the Lender or any of its servants or nominees or agents

Hypothecation. (i) The Borrower do hereby hypothecate and charge by way of first exclusive charge to and in favour of the Lender for the Credit Facilities mentioned hereinabove the whole of the Borrower’s present and future stocks of raw materials, goods in process of manufacture, semi-finished goods and all finished and manufactured goods and articles together with all stores, components and spares which now belongs to or may hereafter from time to time during the continuance of this security belong to the Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower’s factory, godowns and/or their premises wherever else the same may be situated, stored, or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar moveable assets in course of transit or delivery to the Borrower and all of which hereinafter for sake of brevity are referred to as the said “Stocks” and all of the Borrower’s present and future book debts, outstanding monies, receivables, claims, bills, investments, rights to or on moveable properties and moveable assets forming part of current assets which are now due owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to the Borrower in the course of its business and all of which hereinafter for sake of brevity are referred to as the said “Book Debts” and together with all benefits, advantages and legal incidence thereof and All the Borrower’s present and future movable plant, machinery, vehicles and equipments belonging to the Borrower which now are, or may hereinafter from time to time during the subsistence of this Agreement or during the subsistence of the securities hereby created, be brought in or stored in or about the Borrower’s factories, premises, warehouses and godowns including any plant/ machineries/vehicles/equipment’s in the course of transit or delivery wherever lying or “Plant & Machinery” parked and all of which hereinafter for sake of brevity are referred to as the said “Plant & Machinery”"Digital Fiat Currency . The Plant and Machinery moveable/immovable assets hereby hypothecated including the aforesaid Stocks, Book Debts and Plant and Machinery Collateral are hereinafter collectively referred to as the “Hypothecated Assets”. (ii) The said Hypothecated Assets which are hereby hypothecated by the Borrower to and in favour of the Lender by way of First exclusive charge shall be remain as security to the Lender for the due payment of Said Dues by the Borrower to the Lender on demand of all monies at any time payable by the Borrower to the Lender under or in respect of the said Credit Facilities and whether for principal, interest, service charge, commitment charge, commission, fee, discount or for costs, charges and expenses or other monies, payable hereunder by the Borrower to Lender which may be incurred by the Lender and Borrower for NEO the full due payment and discharge of all indebtedness and/or/ liability of the Borrower to the Lender including in respect of any bills of exchanges, promissory notes or instruments at any time drawn, made accepted or endorsed by the Borrower solely or jointly with others which the Lender may discount or become interested in, together with all interest, discount, commission, fee, charges (including service charges) costs ( between attorney/advocate and client ) and expenses payable to or incurred by the Lender. The Borrower shall not remove or cause or permit to be removed any of the Hypothecated Assets from any of the premises, factories or godowns of the Borrower or wheresoever otherwise they may be kept or divert or cause or permit any of the Hypothecated Assets to be diverted while in transit except for the purpose of dealing with the Hypothecated Assets in the ordinary course of Borrower’s business. (iii) In the event of the sale of the Hypothecated Assets and realisation of the sale proceeds, such sale proceeds shall be forthwith credited/deposited by the Borrower to its account with the Lender and shall not be dealt with any other manner whatsoever. In the case of shipment or movement of the Hypothecated Assets by the ship, railway or lorry or otherwise, the Borrower shall hand over to the Lender for collection the relative documents including the relative Bills of lading, railway receipts and lorry receipts duly endorsed in favour of the Lender to enable the Lender to realise the proceeds thereof. If so required by the Lender, the Borrower shall cause to be displayed at all places whereby any of the Hypothecated Assets may be kept, sign boards prominently indicating that the Hypothecated Assets are hypothecated to the Lender; the sign boards to be displayed in such manner and form as may be required by the Lender. (iv) The Borrower shall at all time during the continuance of this security keep and maintain a margin of security Plant & Machinery of _0.9 % against the said Plant & Machinery Digital Fiat Currency and _% 0.9_% against the said Stocks and 0.9 % against the said Book Debts, in favour of the Lender (herein after called the said “Margin”) or such other percentage against such assets as the Lender may from time to time determine of the cost or market value (market value as found Plant & Machinery, by the Lender) whichever is lower of the said Plant & Machinery, Digital Fiat Currency Stocks and Book Debts or any part thereof. Plant & Machinery The Lender shall be entitled to and shall be at liberty to change from time to time the Margin’s and the Borrower shall be bound by such change. The Borrower shall at all times maintain the said Plant & Machinery Noocratic Digital Fiat and a sufficient quantity of the said Stocks and/or the said Book Debts to provide the necessary margin of security as specified herein and as may be required by the Lender from time to time and will forthwith whenever necessary provide further assets approved by the Lender to restore such Margin or reduce the amount for the time being due to the Lender by cash payment so as to restore/maintain the said Margin. (v) The Borrower hereby declares that all the Hypothecated Assets and all sales and realisations and the insurance proceeds thereof and all documents relating to the Hypothecated Assets shall be held in trust by Borrower for the Lender. The Borrower shall ensure that no charge or encumbrance is created on Hypothecated Assets or any of them and that nothing is done that may adversely affect the security created hereby on the Hypothecated Assets in favour of the Lender. (vi) That the Borrower shall make best endeavour to obtain payment of all the said Book Debts as and when the same shall become payable and pay all such sums when received into the said Facility Account with the Lender. Further, the Borrower shall not except in the ordinary course of business, receive, release or compound any of the said Book Debts without the consent in writing of the Lender and will not do anything whereby the recovery thereof may be delayed, impeded, prejudiced, prevented or become time barred. (vii) The Borrower shall execute on demand by the Lender such further documents as may be required by the Lender to perfect the security and / or vest the said Hypothecated Assets or any of them in favour of the Lender and to render the same readily realizable or transferable by the Lender at any time. (viii) That the Lender shall not in any way be responsible in respect of the quantity, quality, weight, amount, value, condition and final out turn of the said Hypothecated Assets if the same are or happen to be in possession of the Lender and for any loss, destruction or deterioration thereof or damage thereto occasioned by theft, pilferage, robbery, fire, riot and civil commotion, malicious damage or otherwise howsoever whatsoever may be the circumstances or the reason under or for which the loss, destruction, deterioration or damage may arise, including any act, omission , negligence, default of the Lender or any of its servants or nominees or agents

Hypothecation. Grantor, in order to secure the payment of the Indebtedness (as hereinafter defined) and the performance of the obligations, covenants, agreements and undertakings of Grantor hereinafter described, does hereby GRANT, BARGAIN, SELL, CONVEY, TRANSFER, ASSIGN, PLEDGE , AFFECT, HYPOTHECATE, SPECIALLY MORTGAGE and SET OVER to Mortgagee, and grant a continuing security interest to Mortgagee in, all for the ratable benefit of the Lenders (hereinafter defined), the real estate (the “Land”) situated in the Parish of Plaquemines and State of Louisiana described in Exhibit “A” attached hereto and made a part hereof, TOGETHER WITH all of Grantor’s interests, rights and titles in and to the following, whether now owned or hereafter acquired by Grantor: (a) all buildings, structures, component parts, other constructions and other improvements now or hereafter attached to or placed, erected, constructed or developed on the Land together with all component parts of the foregoing and all appurtenances to such buildings, structures or improvements, including sidewalks, utility pipes, conduits, docks, tanks and lines, parking areas and roadways, and including all alterations, improvements, modifications, renovations and other additions to or changes in thereto at any time (the “Improvements”); (b) all materials, equipment, fixtures, furnishings, inventory, apparatus, fittings and articles of Personal Property (hereinafter defined) whatsoever now or hereafter delivered to, attached to, installed in, or used in or about the Improvements or which are necessary or useful for the complete use and occupancy of the Improvements for the purposes for which they were or are to be attached, placed, erected, constructed or developed, or which Personal Property is or may be used in the development of the Improvements (including, without limiting the generality of the foregoing, , all desks, chairs, filing cabinets, tables, book cases, credenzas, wall hangings and similar items, power feed wiring, service piping, storage tanks, product piping, pumps, tank truck racks, foam piping system, chemical sewer system, wastewater treatment facility, air emission system, scales, compressed air system, foam pumper truck, crane truck, backhoe, bulldozer, rail car mover, forklift, spill boat, vacuum truck and cranes), and all renewals of or replacements or substitutions for any of the foregoing whether or not the same shall be attached to the Land or Improvements; (c) all water and water rights, timber, crops, and minerals and equipment now or hereafter delivered to and intended to be installed in or on the Land or Improvements; (d) all building materials and equipment now or hereafter delivered to and intended to be installed in or on the Land or Improvements; (e) all security deposits and advance rentals under any lease agreements now or at any time hereafter arising from or by virtue of any transactions related to the Land, Improvements or the Personal Property and held by or for the benefit of Grantor; (f) all monetary deposits which Grantor has given to any public or private utility with respect to utility services furnished to the Land or Improvements; (g) all rents, issues, profits, revenues, royalties, bonuses or other benefits of the Land, the Improvements or the Personal Property, including, without limitation, cash or securities deposited pursuant to leases of all or any part of the Land, Improvements or Personal Property; (h) all proceeds (including premium refunds) of each policy of insurance relating to the Land, Improvements or Personal Property (including without limitation as provided in La. R.S. 9:5386); (i) The Borrower do hereby hypothecate and charge by way of first exclusive charge to and in favour all proceeds from the taking of the Lender for Land, Improvements, Personal Property or any part thereof or any interest or right or estate appurtenant thereto by eminent domain or by purchase in lieu thereof; (j) all Grantor’s rights (but not its obligations) under any contracts related to the Credit Facilities mentioned hereinabove Land or Improvements; (k) all Grantor’s rights (but not its obligations) under any documents, contract rights, commitments, accounts, general intangibles (including trademarks, trade names and symbols used in connection therewith) arising by virtue of any transactions related to the whole Land, Improvements or Personal Property; (l) all deposits, bank accounts, funds, instruments, notes or chattel paper arising from or related to the Land, Improvements or Personal Property; (m) all permits, licenses, franchises, certificates and other rights and privileges obtained in connection with the Land, Improvements or Personal Property; (n) all plans, specifications, maps, surveys, reports, architectural, engineering and construction contracts, books of account, insurance policies and other documents, of whatever kind or character, relating to the use, construction upon, occupancy, leasing, sale or operation of the Borrower’s present Land or Improvements; (o) all oil, gas and future stocks of raw materials, goods in process of manufacture, semi-finished goods other hydrocarbons and other minerals produced from or allocated to the Land or Improvements and all finished products processed or obtained therefrom, the proceeds thereof, and manufactured goods all accounts and articles together with general intangibles under which such proceeds may arise and all storesproceeds of the Personal Property; (p) all agreements, components easements, servitudes and spares which now belongs rights of way or use, rights of ingress or egress, privileges, appurtenances, tenements, hereditaments, prescriptions, advantages and other rights and benefits at any time belonging to, pertaining to or may hereafter from time used in connection with the Land or Improvements; (q) all right, title and interest of Grantor in and to time during the continuance of this security belong all streets, roads, ways, alleys, vaults, public places, easements and rights-of-way, existing or proposed, public or private, adjoining, abutting, adjacent or contiguous to or used in connection with, belonging or pertaining to the Borrower Land or any part thereof; and which are (r) all permits, licenses, rights, estates, powers, privileges and interests of whatever kind or shall character, whether or may be brought into stored not of record, appurtenant or be in or upon or about the Borrower’s factory, godowns and/or their premises wherever else the same may be situated, stored, or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar moveable assets in course of transit or delivery incident to the Borrower foregoing. All of the personal property of Grantor which is related in anyway to the Land and/or the Improvements and all fixtures, accessions and appurtenances thereto and all renewals or replacements of which hereinafter for sake of brevity are referred to as the said “Stocks” or substitutions therefore, and all of the Borrower’s present and future book debts, outstanding monies, receivables, claims, bills, investments, rights to or on moveable properties and moveable assets forming part of current assets foregoing property above which are now due owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to the Borrower in the course of its business and all of which hereinafter for sake of brevity are referred to as the said “Book Debts” and together with all benefits, advantages and legal incidence thereof and All the Borrower’s present and future movable plant, machinery, vehicles and equipments belonging to the Borrower which now are, or may hereinafter from time to time during the subsistence of this Agreement or during the subsistence of the securities hereby created, be brought in or stored in or about the Borrower’s factories, premises, warehouses and godowns including any plant/ machineries/vehicles/equipment’s in the course of transit or delivery wherever lying or parked and all of which hereinafter for sake of brevity are referred to as the said “Plant & Machinery”. The moveable/immovable assets hereby hypothecated including the aforesaid Stocks, Book Debts and Plant and Machinery are hereinafter is personal property is herein collectively referred to as the “Hypothecated AssetsPersonal Property”. , and all of the above is herein collectively referred to as the “Mortgaged Property”. If the estate of Grantor in any of the above-described property is a leasehold estate (ii) “Leasehold Estate”), this conveyance shall include, and the lien and security interest created hereby shall encumber, all additional title, estate, interest and other rights that may hereafter be acquired by Grantor in the property demised under the Leasehold Estate. The said Hypothecated Assets which are hereby Mortgaged Property shall remain so specially mortgaged, affected and hypothecated by the Borrower to unto and in favour favor of the Lender by way of First exclusive charge shall be remain as security to Collateral Agent until the Lender for the due full and final payment of Said Dues by the Borrower to the Lender on demand of all monies at any time payable by the Borrower to the Lender under or in respect of the said Credit Facilities and whether for principal, interest, service charge, commitment charge, commission, fee, discount or for costs, charges and expenses or other monies, payable hereunder by the Borrower to Lender which may be incurred by the Lender and for the due payment and discharge of all indebtedness and/or/ liability of the Borrower Indebtedness, and the Grantor is herein and hereby bound and obligated not to sell or alienate the Mortgaged Property to the Lender including in respect prejudice of any bills of exchanges, promissory notes or instruments at any time drawn, made accepted or endorsed by the Borrower solely or jointly with others which the Lender may discount or become interested in, together with all interest, discount, commission, fee, charges (including service charges) costs ( between attorney/advocate and client ) and expenses payable to or incurred by the Lenderthis act. The Borrower Collateral Agent shall not remove or cause or permit to be removed any have all of the Hypothecated Assets from any of rights and remedies with respect to the premisesPersonal Property as provided in this Mortgage or at law or in equity, factories or godowns of the Borrower or wheresoever otherwise they may be kept or divert or cause or permit any of the Hypothecated Assets to be diverted while in transit except for the purpose of dealing with the Hypothecated Assets in the ordinary course of Borrower’s business. (iii) In the event of the sale of the Hypothecated Assets and realisation of the sale proceeds, such sale proceeds shall be forthwith credited/deposited by the Borrower to its account with the Lender and shall not be dealt with any other manner whatsoever. In the case of shipment or movement of the Hypothecated Assets by the ship, railway or lorry or otherwiseincluding without limitation, the Borrower shall hand over to the Lender for collection the relative documents including the relative Bills of lading, railway receipts and lorry receipts duly endorsed in favour of the Lender to enable the Lender to realise the proceeds thereof. If so required by the Lender, the Borrower shall cause to be displayed at all places whereby any of the Hypothecated Assets may be kept, sign boards prominently indicating that the Hypothecated Assets are hypothecated to the Lender; the sign boards to be displayed in such manner and form as may be required by the Lender. (iv) The Borrower shall at all time during the continuance remedies provided under Paragraph 5.8 of this security keep and maintain a margin of security of % against the said Plant & Machinery and _% against the said Stocks and % against the said Book Debts, in favour of the Lender (herein after called the said “Margin”) or such other percentage against such assets as the Lender may from time to time determine of the cost or market value (market value as found by the Lender) whichever is lower of the said Plant & Machinery, Stocks and Book Debts or any part thereof. The Lender shall be entitled to and shall be at liberty to change from time to time the Margin’s and the Borrower shall be bound by such change. The Borrower shall at all times maintain the said Plant & Machinery and a sufficient quantity of the said Stocks and/or the said Book Debts to provide the necessary margin of security as specified herein and as may be required by the Lender from time to time and will forthwith whenever necessary provide further assets approved by the Lender to restore such Margin or reduce the amount for the time being due to the Lender by cash payment so as to restore/maintain the said MarginMortgage. (v) The Borrower hereby declares that all the Hypothecated Assets and all sales and realisations and the insurance proceeds thereof and all documents relating to the Hypothecated Assets shall be held in trust by Borrower for the Lender. The Borrower shall ensure that no charge or encumbrance is created on Hypothecated Assets or any of them and that nothing is done that may adversely affect the security created hereby on the Hypothecated Assets in favour of the Lender. (vi) That the Borrower shall make best endeavour to obtain payment of all the said Book Debts as and when the same shall become payable and pay all such sums when received into the said Facility Account with the Lender. Further, the Borrower shall not except in the ordinary course of business, receive, release or compound any of the said Book Debts without the consent in writing of the Lender and will not do anything whereby the recovery thereof may be delayed, impeded, prejudiced, prevented or become time barred. (vii) The Borrower shall execute on demand by the Lender such further documents as may be required by the Lender to perfect the security and / or vest the said Hypothecated Assets or any of them in favour of the Lender and to render the same readily realizable or transferable by the Lender at any time. (viii) That the Lender shall not in any way be responsible in respect of the quantity, quality, weight, amount, value, condition and final out turn of the said Hypothecated Assets if the same are or happen to be in possession of the Lender and for any loss, destruction or deterioration thereof or damage thereto occasioned by theft, pilferage, robbery, fire, riot and civil commotion, malicious damage or otherwise howsoever whatsoever may be the circumstances or the reason under or for which the loss, destruction, deterioration or damage may arise, including any act, omission , negligence, default of the Lender or any of its servants or nominees or agents

Hypothecation. (i) The Borrower do hereby hypothecate If requested by a Condominium Sublessee, Sublessor agrees to execute its written consent to the assignment of such Sublessee’s Condominium Sublease by mortgage or trust deed upon and charge by way of first exclusive charge subject to the covenants and conditions hereinafter set forth, and upon the further condition that such Condominium Sublessee and said assignee, for themselves and their respective successors and assigns, shall execute in favour of the Lender writing, with and for the Credit Facilities mentioned hereinabove the whole benefit of the Borrower’s present Sublessor, their acceptance and future stocks approval of raw materials, goods in process of manufacture, semi-finished goods said consent and all finished and manufactured goods and articles together with all stores, components and spares which now belongs their agreement to or may hereafter from time to time during the continuance of this security belong to the Borrower and which are or shall or may be brought into stored or be in or upon or about the Borrower’s factory, godowns and/or their premises wherever else the same may be situated, stored, or lying or being including any such raw materials, inventories, article or goods, any stores spares and components or other similar moveable assets in course of transit or delivery to the Borrower and all of which hereinafter for sake of brevity are referred to as the said “Stocks” bound by each and all of the Borrower’s present covenants and future book debtsconditions thereof, outstanding moniesas follows; (a) that except as hereinafter otherwise provided, receivables, claims, bills, investments, said assignment and all rights thereunder shall be subject to or on moveable properties and moveable assets forming part of current assets which are now due owing or payable or belonging to the Borrower or which may at any time hereafter during the continuance of this security become due, owing payable or belonging to the Borrower in the course of its business each and all of which hereinafter for sake of brevity are referred to as the said “Book Debts” covenants, conditions and together with all benefits, advantages and legal incidence thereof and All the Borrower’s present and future movable plant, machinery, vehicles and equipments belonging to the Borrower which now are, or may hereinafter from time to time during the subsistence restrictions of this Agreement or during Sublease, the subsistence of the securities hereby createdCC&Rs, be brought in or stored in or about the Borrower’s factories, premises, warehouses and godowns including any plant/ machineries/vehicles/equipment’s in the course of transit or delivery wherever lying or parked and all rights and interests of Sublessor hereunder, none of which hereinafter for sake of brevity are referred to as the said “Plant & Machinery”. The moveable/immovable assets hereby hypothecated including the aforesaid Stocks, Book Debts and Plant and Machinery are hereinafter collectively referred to as the “Hypothecated Assets”. (ii) The said Hypothecated Assets which are hereby hypothecated by the Borrower to and in favour of the Lender by way of First exclusive charge shall be remain deemed waived by said consent; (b) that should there be any conflict between the provisions of this Sublease and said mortgage or trust deed, this Sublease shall control as security to between Sublessor and its Condominium Sublessee and as between Sublessor and the Lender for Authorized Mortgagee; (c) that if the due payment interest of Said Dues by the Borrower to the Lender on demand of all monies at any time payable by the Borrower to the Lender under or in respect of the said Credit Facilities and whether for principal, interest, service charge, commitment charge, commission, fee, discount or for costs, charges and expenses or other monies, payable such Condominium Sublessee hereunder by the Borrower to Lender which may be incurred by the Lender and for the due payment and discharge of all indebtedness and/or/ liability of the Borrower to the Lender including in respect of any bills of exchanges, promissory notes or instruments at any time drawn, made accepted or endorsed by the Borrower solely or jointly with others which the Lender may discount or become interested in, together with all interest, discount, commission, fee, charges (including service charges) costs ( between attorney/advocate and client ) and expenses payable to or incurred by the Lender. The Borrower shall not remove or cause or permit to be removed any of the Hypothecated Assets from any of the premises, factories or godowns of the Borrower or wheresoever otherwise they may be kept or divert or cause or permit any of the Hypothecated Assets to be diverted while in transit except for the purpose of dealing with the Hypothecated Assets in the ordinary course of Borrower’s business. (iii) In the event of the sale of the Hypothecated Assets and realisation of the sale proceeds, such sale proceeds shall be forthwith credited/deposited by the Borrower to its account with the Lender and shall not be dealt with any other manner whatsoever. In the case of shipment foreclosed or movement of the Hypothecated Assets by the ship, railway otherwise acquired under said mortgage or lorry or otherwisetrust deed, the Borrower transferee or transferees thereof shall hand over to thereupon and thereby assume the Lender for collection the relative documents including the relative Bills performance of lading, railway receipts and lorry receipts duly endorsed in favour of the Lender to enable the Lender to realise the proceeds thereof. If so required by the Lender, the Borrower shall cause to be displayed at all places whereby any of the Hypothecated Assets may be kept, sign boards prominently indicating that the Hypothecated Assets are hypothecated to the Lender; the sign boards to be displayed in such manner and form as may be required by the Lender. (iv) The Borrower shall at all time during the continuance of this security keep and maintain a margin of security of % against the said Plant & Machinery and _% against the said Stocks and % against the said Book Debts, in favour of the Lender (herein after called the said “Margin”) or such other percentage against such assets as the Lender may from time to time determine of the cost or market value (market value as found by the Lender) whichever is lower of the said Plant & Machinery, Stocks and Book Debts or any part thereof. The Lender shall be entitled to and shall be at liberty to change from time to time the Margin’s and the Borrower shall be bound by each and all the covenants, conditions and obligations herein provided to be kept and performed by such change. The Borrower Condominium Sublessee during the period such transferee or transferees shall at hold title to such interest, and for all times maintain the said Plant & Machinery and a sufficient quantity of the said Stocks and/or the said Book Debts to provide the necessary margin of security as specified herein and as may be required by the Lender from time to time and will forthwith whenever necessary provide further assets approved by the Lender to restore such Margin unpaid rental or reduce the amount for the time being other charges due to Sublessor from such Condominium Sublessee under this Sublease; and (d) that Sublessor shall not exercise the Lender by cash payment so as to restore/maintain the said Margin. (v) The Borrower hereby declares that all the Hypothecated Assets rights and all sales and realisations and the insurance proceeds thereof and all documents relating to the Hypothecated Assets shall be held remedies provided in trust by Borrower for the Lender. The Borrower shall ensure that no charge or encumbrance is created on Hypothecated Assets or Article 16 below because of any of them and that nothing is done that may adversely affect the security created hereby default, hereunder on the Hypothecated Assets in favour part of such Condominium Sublessee, if the Lender. holder of said mortgage or trust deed, within 30 days after service of written notice to such Authorized Mortgagee from Sublessor of its intention to exercise such rights and remedies for such Uncured Default, shall either (vii) That the Borrower shall make best endeavour to obtain payment of all the said Book Debts as and when the same shall become payable and pay all cure such sums when received into the said Facility Account with the Lender. Furtherdefault, the Borrower shall not except in the ordinary course of business, receive, release or compound any of the said Book Debts without the consent in writing of the Lender and will not do anything whereby the recovery thereof may be delayed, impeded, prejudiced, prevented or become time barred. (vii) The Borrower shall execute on demand by the Lender such further documents as may be required by the Lender to perfect the security and / or vest the said Hypothecated Assets or any of them in favour of the Lender and to render the same readily realizable or transferable by the Lender at any time. (viii) That the Lender shall not in any way be responsible in respect of the quantity, quality, weight, amount, value, condition and final out turn of the said Hypothecated Assets if the same are can be cured by the payment of money, or happen , (ii) if such default is not curable (A) commence in good faith to cure any default which is curable and thereafter diligently prosecute the same to completion, (bB0 institute proceedings for the foreclosure of such mortgage or trust deed (by filing a notice of default or a complaint for judicial foreclosure) and thereafter diligently conclude the same, and (C) undertake in writing, with and for the benefit of Sublessor, to keep and perform, and in fact keep and perform, to the extent possible, all of the covenants and conditions of this Sublease herein provided to be in possession kept an performed by such Condominium Sublessee from the date of such written undertaking until such time as the interest hereunder shall be sold upon foreclosure pursuant to any such mortgage or trust deed or shall be released from said mortgage or reconveyed under said trust deed; provided, however that if the holder of said mortgage or trust deed shall fail or refuse to comply with any or all of the Lender and for any lossconditions of this clause (d), destruction then Sublessor shall be released from the covenant of forbearance contained herein. Each Condominium Sublessee shall furnish Sublessor at the time of such consent a complete copy of such mortgage or deterioration thereof or damage thereto occasioned by thefttrust deed, pilferage, robbery, fire, riot and civil commotion, malicious damage or otherwise howsoever whatsoever may be together with the circumstances or the reason under or for which the loss, destruction, deterioration or damage may arise, including any act, omission , negligence, default address of the Lender or any holder thereof. Upon execution of its servants or nominees or agentssuch consent, the assignee thereunder shall be deemed an “Authorized Mortgagee” under this Sublease.