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ADDITIONAL PROVISIONS 200207821
<br />DEBTOR EXPRESSLY COVENANTS, REPRESENTS AND WARRANTS THAT: (tr Except for the security interest granted hereby and
<br />any encumbrance described by Debtor in willing and delivered to Secured Party before the execution and delivery of this Security Agreement,
<br />Debtor Is, or to the extent that Collateral is acquired after the date hereof, will be, the owner of the Collateral free from any adverse lien, security
<br />Interest or encumbrance, and Debtor will defend the Collateral against all claims and demands of all persons at arty time claiming the same or any
<br />interest therein. (2) No financing statement, other than other financing statements given by Debtor to Secured Party, covering the Collateral or any
<br />proceeds thereof is on file in any public office and at the request of Secured Party, Debtor will execute and deliver to Secured Party one or more
<br />financing statements or other documents deemed by Secured Party to be necessary or desirable to the attachment, perfection or continuation of
<br />the security interest granted hereunder, all in form satisfactory to Secured Party, and will pay the cost cf filing such financing statemenl, this Security
<br />Agreement, any continuation or termination statement or other documents, in all public offices wherever filing is deemed by Secured Party to be
<br />necessary or desirable. If the Collateral is attached to real estate prior to the perfection of the security interest granted hereby, or if the Collateral
<br />includes crops or oil, gas or minerals, to be extracted or timber to be cut, Debtor will, ore demand of Secured Party, fumish Secured Party with a
<br />disclaimer or disclaimers or subordination agreement signed by all persons having an interest in the real estate, disclaiming or subordarming any
<br />interest in the Collateral which Is prior to the interest of Secured Party. (3) Debtor will not sell (other than sales of inventory in trip ordinary contest
<br />of business), transfer or dispose of the Collateral, nor take the same or attempt to take the same from the state where kept without the prior written
<br />consent of Secured Party. (4) Debtor will pay prior to delinquency all taxes and assessments of every nature which may be, levied or assessed
<br />against the Collateral_ (5) Debtor will not permit or allow any adverse lien, security interest or encumbrance whatsoever upon, Ste Collateral, and
<br />will not permit the same to be affacbsrl or repievined- (6) The Collateral is in good condition and Debtor will at DeJtO' s expense, keep the Same
<br />in good condition and from time to time, forthwith,. replace and repair all such parts of the (.eifaterai as may be brcken wom of,it or damaged without
<br />allowing any lien to be created upon Abe Collateral on account of such replacement or repairs_ {7i Secured Parrs by of through any of if& officers,
<br />employees or agents may, at all reasonable times and from time to time, examine and inspect the Collateral wherever toGutod. (3) Debtor will at
<br />Debtor's expense keep the tangible Collateral insured with an insurance company salefarfory to Secured Party against k3s'a or ur j,nage, as
<br />appropriate, by fire, hazards included within the term "extended coverage ", theft, coiiisio^ and aura barer coverages as Secured Party may require
<br />for the full insurable value o: said Collateral at all times there ie any Indebtedness secured hereby- Ali such poiicies shall manic ncrurad f °arty as
<br />an addRionel nar'ned insured with loss payable. to Secured Party. Debtor will on demand deliver Said pal oos of InSG aP o Or fnfn Sr, pro0'f of soda
<br />insurance to Secured Party. In case of Loss, Secured Party may at its option retain Irani inn a n�,, pollffre:ls an amount equal to Pile total badhmre
<br />of all indebtedness seeared hereby, whether accords eg m the tenor and effect of arty prom) y ote,'s) is rd acing su"h indnbtrutnr,s;he same is
<br />due or not. (9) At its option but without any obligation to do so, Secured Party may procure Insaranc:e. d- chnnue taxes, bens, se< ¢ i bo rests or
<br />other encumbrances at any time levied or placed on toe Collateral and may pay for the repair of any lama i c nj-. test r the and
<br />maintenance of the Collateral- Debtor agrees to reimburse Secured Party on demand +__ any payrle t or crpl,rue n..,, r.:r3 ov re Party
<br />Pursuant to file foregoing authorzatir-,ir ti :.rl such mirbursement, file airbus of any stint payment, with interest th.l, an f? mok ill 16-s per
<br />annum or at the maximum rate then permitted by law whichever is less, from data of payment until reimbursement. i be doe <d t,, be ir,debt-
<br />erl secured by this Security Agreement. (10) Debtor will net lisp the Collateral in violation of any applicable statute regulatic or o n tarces-
<br />UNTIL DEFAULT Debtor may have possession of the Collateral and use it in any lawful manner not b- rnnslsten Willi Ins Sc it .r Agreement
<br />and not ircon.rs ;eni with any policy of '.isurance thereon, ripen default Secured Pady shall have the, immediate r qh, io the of the
<br />Collaterai and _hail have the right, but no obligation to use rand operate any such Collateral If Secured Party° tie r wch p t �yrer,v orr
<br />necessary or dew rable to the continued operation of Debtor's business as a going concern
<br />DEBTOR SHALL BE IN DEFAULT under this 7eciviv Agreement upon the happening of any of the f Gciwr tg rte rh= r r,Li,ns. (1)
<br />default to the payment or pedonnance of any obligation, covenant or liabiiity contained or refe;rdd to roister or a any note, yt re w ty or other
<br />agreement evidencing or relating to the Indebtedness (2) any warranty, representafkxe or sbilemeru insole or furnisbeo to Secure t Patty 14 or on
<br />behalf of Borrower or Debtor ie discovered to have been false in any material respect when made or furnished, (3) any event which results or could
<br />result in the acroleraton of the maturity of the indebtedness of Borrower or Debtor to others under any indenture, agreement ra undertaking; (4)
<br />Toss. theft, d im °t,ge, desirr,chon. sale (except as permitted herein; or er,cmhbmr ce to or Cluny of the Collateral, r Ire moirpift of y le�y, :,puree
<br />or attachment thereof or thereon: (5f deatri dissolution, termination of existence, insociercy, buJnes„ (allure apps r m r GA rt n itcsfvt, . or any
<br />Part Gf the properly ef, assignment for file holl0it of creditors by, or the commeneerrent of any proceed t s ..nder my _ k :ur,•�t r r rnsotvoncy
<br />laws by or against Borrower, Debtor, or any guarantor or surety for Borrower or Debtor.
<br />UPON ON SUCH DEFAULT and at any time thereafter . or if it deems Tseff insecure Secured Pmy may declare all Indeble ono.. e, secured
<br />hereby unmadiafely due and payable and shah have, in addition to air older remedies, the remedies sin 7ecu, ,Kl parry i,olor the cirlbraskt Uniform
<br />r omrnerciai Coda. Secured Party may require Debtor to assemble the Collateral and deliver or mare it available to Secured Party at it place to be
<br />designated by Secured Party which is reasonably convenient to both parties. Unless the Collateral is constable or threatens it) decicte sperodily in
<br />value or is of a type customarily- said on a recognized market. Secured Party will give Dpbior reasonable notice 01 the time s ,,are of any ;rublrc
<br />sale thereof or of the time after which any private sale or any other intended disposition thereof is to be made- T! +e reourrom.,rata of red ,enable notice
<br />shall be met if Saar notice is ma.led. postage prepaid, to the addrpss of Debtor shown Gn the reverse side of this Security Arreemer r at It :h,;t ten
<br />days before the time of the sale or disposition.
<br />MISCELLANEOUS:
<br />11) Unless specifically prohibited by law. Debtor shall pay to Secured Party on demand an, and alt expenses, includln tees
<br />per .titteo oy law or awarded under section 506(b) of the United States Bankruptcy Code which are incurred or expended by �e_u,. d r nrhy in
<br />recovering possession or disposing of the Collateral, collecting or attempting to collect the Collateral add in r -utecing reed enforuird lire ;,Jatinns
<br />and other rights of the Secured Party hereunder, and the same shall be, scoured by this Security Agreement.
<br />{2) No waiver by Secured Party of any default shall operate as a waiver of any other default or of the same deb,df on 5 1 irre O- Cs',,ton.
<br />The taking of this Security Agreement shat{ net waive or impair any other security Secured Party may have, or hereafter acquire for tY ';ayrnoni of
<br />the indetseci nor shall the taking of any saCh adliiuonal sear ity waive or impair this ecorfty Agreement and ?Vary r ry son ro any
<br />security it "My have in the Grier rt may dear^ proper. N aver - standing any collateral security, Secured P rty shall n r,>irn f ,r, cg ,)quinst
<br />Debtor.
<br />(3} This Secunly Agreement and the security r iereai granted hereunder is in addition to alr uirer securty, a I -cr :menu „ver a security,
<br />interests granted by Debtor or Borrower to Secured Party.
<br />(4) The terms "Debtor" and "Borrower" wherever used, shall include both singular and plural and -mion the Deb it wits the ll t r over are the
<br />same person, those terms as used in this Security Agreement shall be interchangeable.
<br />(S) If there is more than one Debtor, their liabilities hereunder shall be joint and severe;. if the Indebtedness sccured riereby r, urdeptedness
<br />owed to Secured Party by one other than the Debtor, Debtor hereby (a) consorts to any number of extensions renewals or mod .cations of any
<br />such Indebtedness for any periods without notice; lb) waives redone of nonpayment of arty Indebtedness and (c) w rry ,; nei v nod,hoatlon of
<br />any agreements regarding other collateral, it any, for the Indebtedness, including the safe, exchange, cancollatrov, release or surrender ut any such
<br />collateral. The obligation of the Debtor fs not eondraned upon Secured Party taking or retorting other or additional security for the Indebtedness.
<br />(6) All rights of Secured Party hereunder shall inure to the benefit of its successors and assigns, and all promises and duties of Debtor shelf
<br />bind Debtor's heirs, personal representatives, successors or assigns.
<br />(7} A carbon, photographic or other reproduction of the signed Security Agreement or Financing Statement may be used as a Financing
<br />Statement- i i i 33
<br />iff) This Agreement shall become effective wherr it is srg4d by`17)A od the reverse side hereof.
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