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" , " ~~, violate any law or agreement governing Debtor or to which Debtor is a party; (f) all information and statements in paragraphs 1 through 4 above are true and correct; and (g) by its acceptance of the benefits of the loan money pursuant to the terms of the loan agreement between Maker and Secured Party and by Debtor's representation herein, Debtor shall be estopped from asserting for any reason that it is not authori~ed to grant a security interest in the Collateral pursuant to the terms of this agreement. 7. Covenants of Debtor. Unless and until Secured Party consents in writing to another course of action, Debtor COvenants and agrees: (a) Debtor will not sell or assign any of the Collateral; will keep it free of liens, security interests and adverse claims other than the security interests contemplated by (c) of paragraph 6 or those being contested in good faith and by appropriate proceedings; will promptly notify Secured Party of any event of default, as defined in paragraph 10; will defend the Collateral against the claims and demands of all persons; and will pay promptly all taxes and assessments with respect to the Collateral. (b) At its option Secured Party, after 30 days' notice to Debtor, may discharge taxes, liens, security interests and other claims against the Collateral and may pay for reasonable costs and expenses incidental to any actions undertaken by Secured Party pursuant to paragraph 8. Any such payments by Secured Party shall become part of the Obligations, bearing interest at the same rate as the Note. (c) Debtor will from time to time execute financing statements and other documents in form satisfactory to Secured Party (and pay the cost of filing or recording them in whatever public offices the Secured Party deems necessary) to perfect and maintain a valid security interest in,the Collateral. 8. Rights of Secured Partv. (a) Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if it takes such action for that purpose as Debtor shall request. Secured Party shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties nor to protect, preserve or maintain any security interest given to secure the Collateral. (b) Upon a default and a failure by Debtor to cure such default within 60 days after receipt of written notice from Secured Party describing such default, Secured Party may take any one or more of the following actions (and Secured Party is hereby irrevocably appointed Debtor's attorney-in-fact to accomplish this), without liability except to account for property actually received by it: (i) transfer to Secured Party or register in its name or the name of its nominee any of the Collateral, with indication of the security interest herein created, and whether or not so transferred or registered, receive the income, dividends and other distributions thereon and hold them or apply them to the Obligations; (ii) insure any of the Collateral; (iii) renew, extend, or otherwise change the terms and conditions of any of the Collateral or the Obligations to the extent permitted by the loan agreement between Maker and Secured Party; and (iv) release any Collateral. (c) Secured Party shall be under no duty to exercise or to withhold the exercise of any of the rights, powers, privileges and options expressly or implicitly granted to Secured Party in this agreement and shall not be responsible for any failure to do so or delay in so doing. E-2