Fillable Security Agreement Template (January 2014) (Page 7 of 11) in pdf

Events of Default; Remedies.

4.1

Events of Default. An “Event of Default” shall exist hereunder at any time

that:

(a)

any representation or warranty by Grantor herein contained is found not be

true and correct in each and every material respect;

(b)

Grantor breaches its obligation to perform any material covenant or

agreement contained herein;

(c)

the dissolution, liquidation, merger or termination of Grantor;

(d)

any order, judgment or decree for the payment of money which would have a

material and adverse effect on the Collateral or the financial condition of Grantor is entered against

Grantor, and such order, judgment or decree shall not be satisfied and be in effect for twenty (20)

consecutive calendar days without being vacated, discharged, satisfied or stayed or bonded pending

appeal;

(e)

any lien or encumbrance of any kind or character, other than any Permitted

Encumbrances or the Security Interest herein granted, shall attach to the Collateral, or any portion

thereof, or any levy, seizure or attachment thereof or thereon;

(f)

Secured Party’s liens or security interests in any of the Collateral becomes

unenforceable; and/or

(g)

An Event of Default under the Loan Agreement shall remain in effect after

the expiration of any applicable cure period provided therein.

4.2

Remedies upon Event of Default.

(a)

Secured Party shall provide Grantor with written notice of an Event of

Default arising under the Security Agreement, provided, however, that Grantor shall be entitled to

only one opportunity to cure an Event of Default arising under more than one Loan Document.

Following receipt of such notice, Grantor shall have: (i) a two (2) Business-Day period within which

to fully cure any Event of Default involving the payment of money; and (ii) a thirty (30) day period

within which either to cure any Event of Default not involving the payment of money or, if the Event

of Default does not involve the payment of money and cannot be fully cured within the thirty (30)

day period, to institute corrective action satisfactory to Secured Party and to pursue such corrective

action diligently, provided, however, that the thirty (30) day cure period shall not be made available

to Grantor if Secured Party determines, in its sole discretion, that Secured Party’s rights with respect

to Grantor and/or Collateral could be materially adversely affected.

(b)

Upon the occurrence and during the continuance of an Event of Default,

Grantor agrees to deliver each item of Collateral to Secured Party on written demand. Further, the

Parties agree that Secured Party shall have the right to take any or all of the following remedies at the

same or different times: (i) to take or employ any and all remedies set forth in Section 11.2 of the

Loan Agreement; (ii) without notice to Grantor, except as required by law, and at any time and from

time to time, charge, setoff and/or otherwise apply the amount of the Obligations, or any portion

Security Agreement Template (January 2014) Page 7

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