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<br />(2j The term "adjusted sssets" means the sum of the Mortgagor's accounts-
<br />classified as "Investments," "Current Assets," "Other Assets," and
<br />"Prepaid Recounts rind Defezxed Charges;" plus an amount-equal to
<br />the-autount of lase-funds still to be advanced-under the Consolidated
<br />Loan kgreement, if such amount:has-not been recorded as "Subscriptions
<br />to Funded Debt,"-less the sv~ of the "Depreciation-Reserve," and`:
<br />`"Amortisation Reserve" sccounta and "adjustments."
<br />(3) The term "adjustments" used in the foregoing. definitions means the-
<br />- sum of the .following: "Investments in Affiliated Companies," "Advances
<br />to Affiliated Companiea,° "Telephone Plant Acquisition-Adjustment"
<br />debit amounts in excess of °Amortization Reserve-,"-"Telephone Plant
<br />Adjustment" debiC balances, °Company Securities Owned,".unpaid "Subs
<br />scriptions to Capital Stock," and "Dis'count on Capital-Stock."
<br />(4} Titles of accounts or groups of accounts and-other terms describing
<br />accounting transactions, used in the foregoing definitions. or in thins,
<br />section 15, shall have the meanings prescribed for-them by the Federal.
<br />Communications Coms~ission in its prevailing uniform system of accounts
<br />for Class A telephone companies. These terms shall also-apply to
<br />accounts or groups of accounts, of the Mortgagor, regardless of the
<br />account title or the system of accounts used, if such accounts have
<br />substantially the same meaning as terms referred to in such. uniform
<br />system of accounts.
<br />SECTION Ib. In the event that the Mortgaged Property, or any. part
<br />thereof, shall be taken under the parer of eminent domain, all proceeds and
<br />avails therefrom., except to the extent that all noteholders shall consent to
<br />atlier use and application thereof by the Mortgagor, shall forthwith be applied
<br />6y the Mortgagor: first, to the ratable payment of any indebtedness by this
<br />Mortgage secured other than principal of or interest on the Hates; second, to
<br />the ratable payment of interest which shall have accrued on the. notes and be
<br />unpaid; third, to the ratable payment of or on account of the unpaid principal
<br />of ttie notes and to such installments thereof as may be designated by the respec-
<br />tive noteholders at the time of any such payment, and fourth, the balance shall
<br />be paid to whosoever shall be entitled thereto.
<br />SECTION 17. The Mortgagor will well and truly observe and perform all
<br />of the covenants, agreements, terms and conditions contained in the Consolidated
<br />Loan Agreement, on its part to be observed or performed.
<br />SECTION 18. If this section is made applicable by the Instruments
<br />Recital, then: (a) The Mortgagor will not at any time employ, or enter into any
<br />contract for the employment of, any manager of its telephone. properties, unless
<br />such employment or such contract shall first have been approved by the majority
<br />REA noteholders and the majority Bank noteholders. (b) If, during such periods
<br />as Che Mortgagor shall be in default in the making of a payment or payments of
<br />principal of or interest on one or more of the notes, the majority REA noteholders
<br />or the majority Bank. noteholders shall give notice to Che Mortgagor that in their
<br />.opinion its telephone properties are not-being efficiently operated, and shall
<br />request the termination of the employment of any such manager, or shall request
<br />the termination of any operating contract in respect of any. such telephone proper-
<br />ties,, the Mortgagor will-terminate such employment or operating contract withir,
<br />thirty (30) days after the date of such notice. (c} All contracts in respect of
<br />the employment of any such manager or for the operation of such telephone proper-
<br />ties shall contain provisions [o permit compliance with the foregoing covenants.
<br />S£CTI4N 1F. If all the REA Notes have been paid and discharged while
<br />any 4f-the $ank Notes are still outstanding, all rights. and,powezs of the Govern-
<br />- merit and the holders of the REA Notes under this Mortgage shall immediately vest
<br />in the Ban1c and the. holdeza of the Bank Notes, respectively, and> correspondingly,
<br />if all the, Bank Notes. hays been paid and discharged while any of the REA Notes
<br />-era.-still outstanding, all rights sad powers of the Bank and the holders of the
<br />Bank Notes, uadex this Mortgage shall immediately vest in the Government and. the
<br />.holders of the REA Notes, respectively. The Bank, the Government, the Mortgagor
<br />and the natattoldars_shall execute. and deliver such instruments, assignments,
<br />re leases or other documcnta as skull 6e reasonably required to carry out the
<br />nreintion of this section.
<br />- 1'~
<br />Form - Orig..- Comma RHEA - T$1• Bank Mtg. 2i;2
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