Common use of Maintenance and Use of Collateral Clause in Contracts

Maintenance and Use of Collateral. Debtor does hereby further covenant with Secured Party as follows: (a) That the Collateral will be used solely for business purposes. (b) That Debtor will defend the Collateral against the claims and demands of all persons at any time claiming the same or any interest therein. (c) That Debtor has not and shall not grant to any Person other than Secured Party a security interest or any other interest or claim in the Collateral, except for the Collateral Exceptions. (d) That there is not now and will not be filed in the future in any jurisdiction any financing statement listing any Person other than Secured Party as a secured party covering any or all of the Collateral except for the Collateral Exceptions. (e) That, except for the Collateral Exceptions, Debtor will not permit any Liens or security interests other than Secured Party's security interest, to attach to any of the Collateral, permit any of the Collateral to be levied upon under legal process, permit anything to be done that may impair the value of any of the Collateral or the security intended to be afforded by this Agreement, or permit the Collateral to be or to become a fixture (and it is expressly covenanted, warranted and agreed that the Collateral, and any part thereof, whether affixed to any realty or not, shall be and remain personal property), or to become an accession to other goods or property. {OR498808;3} 5 (f) That Debtor will not sell, transfer, lease or otherwise dispose of any of the Collateral or any interest therein or offer to do so without the prior written consent of Secured Party; provided, however, that as long as the Secured Party has not accelerated the due date of the Obligations following an Event of Default, it may sell its Inventory in the normal and ordinary course of its business. (g) That except for matters not material to Debtor, Debtor will not use the Collateral or permit the Collateral to be used in violation of any statute or ordinance and Debtor shall further comply with all statutes, regulations and ordinances applicable to the use or its ownership of the Collateral and to its business. (h) That Debtor will pay promptly when due all taxes and assessments upon the Collateral or for its use or operation or upon any note or notes or other writing evidencing the Obligations, or any of them, or will contest such taxes and assessments by proper proceeding in good faith. (i) That during the term of this Agreement, Debtor shall cause to be maintained on the Collateral insurance in an amount at least equal to the amount of the Obligations and shall cause Secured Party to be noted as a loss payee on said policies. At the request of Secured Party, Debtor shall promptly deliver to Secured Party said policies of insurance along with certificates reflecting Secured Party as a loss payee and providing for not less than thirty (30) days notice to Secured Party prior to expiration or cancellation of same, and Secured Party shall be entitled to retain in its possession said policies or certificates. (j) That Debtor will maintain the Collateral in good condition and repair in the ordinary course of its business and shall undertake and perform such other functions as may be necessary to keep and maintain the Collateral in good condition and repair.

Maintenance and Use of Collateral. Debtor does hereby further covenant with Secured Party as follows: Borrower shall at all times (a) That the maintain all Collateral in good operating condition and repair and will be used solely for business purposes. furnish all parts and services required therefor, all at its expense (reasonable wear and tear, casualty and condemnation excepted), (b) That Debtor will defend the Collateral against the claims comply with (i) all manufacturer’s instructions and demands of all persons at any time claiming the same or any interest therein. (c) That Debtor has not and shall not grant warranty requirements with respect to any Person other than Secured Party a security interest or any other interest or claim in the Collateral, except for the Collateral Exceptions. (d) That there is not now and will not be filed in the future in any jurisdiction any financing statement listing any Person other than Secured Party as a secured party covering any or all of the Collateral except for the Collateral Exceptions. (e) That, except for the Collateral Exceptions, Debtor will not permit any Liens or security interests other than Secured Party's security interest, to attach to any of the Collateral, permit any of the Collateral to be levied upon under legal process, permit anything to be done that may impair the value of any of the Collateral or the security intended to be afforded by this Agreement, or permit the Collateral to be or to become a fixture (and it is expressly covenanted, warranted and agreed that the Collateral, and (ii) the conditions and requirements of all policies of insurance relating to the Collateral and its use, and use reasonable care to prevent any part thereof, whether affixed to any realty or not, shall be and remain personal property), or to become an accession to other goods or property. {OR498808;3} 5 (f) That Debtor will not sell, transfer, lease or otherwise dispose of any portion of the Collateral from being damaged or any interest therein depreciating at an excessive rate (normal wear and tear excepted), (c) at its expense, make all modifications and improvements to the Collateral required by law, and shall not make other modifications or offer improvements to do so the Collateral that could reasonably be expected to impair the use or value of the Collateral without the prior written consent consent, not to be unreasonably withheld, of Secured PartyAgent, (d) use the Collateral with due care and for the purpose for which it is intended, (e) mark and identify the Collateral with all information and in such manner as Agent may reasonably request from time to time and replace promptly any such markings or identification which are removed, defaced or destroyed and (f) pay all shipping and delivery charges and other expenses incurred in connection with the Collateral and pay all lawful claims, whether for labor, materials, supplies, rent, assessments, taxes or services, which might or could if unpaid become a lien on the Collateral; provided, however, that as long as the Secured Party has not accelerated the due date of the Obligations following an Event of Default, it may sell its Inventory in the normal and ordinary course of its business. (g) That except for matters not material to Debtor, Debtor will not use the Collateral any damage or permit the Collateral to be used in violation of any statute or ordinance and Debtor shall further comply with all statutes, regulations and ordinances applicable to the use or its ownership destruction of the Collateral and constituting a Recovery Event shall not be deemed to its business. be a breach of clause (ha) That Debtor will pay promptly when due all taxes and assessments upon the Collateral or for its use or operation or upon any note or notes or other writing evidencing the Obligations, or any of them, or will contest such taxes and assessments by proper proceeding in good faith. (i) That during the term of this Agreement, Debtor Section 4.10 to the extent Borrower complies with Section 2.4 with respect to the application of the proceeds of such Recovery Event. Borrower shall cause not permit the name of any Person other than Borrower or Agent to be maintained placed on the Collateral insurance in an amount at least equal as a designation that might be interpreted as a claim of ownership or security interest. All parts, modifications and improvements to the amount Collateral shall, when installed or made, immediately become part of the Obligations Collateral for all purposes and shall cause Secured Party subject to be noted as a loss payee on said policies. At the request of Secured Party, Debtor shall promptly deliver to Secured Party said policies of insurance along with certificates reflecting Secured Party as a loss payee and providing for not less than thirty (30) days notice to Secured Party prior to expiration or cancellation of same, and Secured Party shall be entitled to retain in its possession said policies or certificatesAgent's security interest hereunder. (j) That Debtor will maintain the Collateral in good condition and repair in the ordinary course of its business and shall undertake and perform such other functions as may be necessary to keep and maintain the Collateral in good condition and repair.