Common use of Security and Guaranty Clause in Contracts

Security and Guaranty. (a) This Agreement is secured by the Security Documents. (b) The Borrower grants to the Agent for the benefit of all Lenders, as security for the Notes and the payment of all Obligations, a first priority lien and security interest in accounts receivable, inventory and all assets of the Borrower, as more particularly described in the Security Agreement (collectively, the “Collateral”). (c) The Borrower’s Obligations shall be guaranteed by all current and future material subsidiaries of the Borrower excluding any Project Subsidiary (each a “Guarantor”). Each such Guarantor shall, promptly after the formation of such Guarantor, execute and deliver a Guaranty in form and substance satisfactory to the Agent. As of the date hereof, the Borrower represents and warrants that it has no subsidiaries which qualify as Guarantors under this Section 6.1(c).