Laserfiche WebLink
<br />, ", <br /> <br />9. Partial Release of Collateral. (a) Beginning with the making of the <br />fourth annual payment under the Note due August __, 1996, upon receipt by <br />Secured Party of a required payment or any prepayment under the Note together <br />with interest accrued thereon and certified as allocable to the Obligations, <br />Secured Party shall take all steps and execute all documents necessary to <br />release a number of the shares comprising the Collateral from the encumbrance <br />of this security agreement the value of which is proportional to the payment <br />made, as calculated pursuant to the loan agreement between Maker and Secured <br />Party. Shares representing Class A Series 2 stock shall be released first. <br />(b) Upon payment in full of the Obligations (whether or not other portions of <br />the Note have been paid) Secured Party shall take all steps and execute all <br />documents necessary to release all remaining Collateral from the encumbrance <br />of this security agreement. <br /> <br />10. Events of Default. The occurrence of any of the following events shall <br />constitute an event of default under this agreement (a) failure to pay any of <br />the Obligations when due and the expiration of the cure period provided <br />therefor in the loan agreement between Maker and Secured Party; (b) failure to <br />perform or observe any other material covenant contained in this agreement or <br />the Note within 60 days after notice from Secured Party; (c) any warranty, <br />representation or statement of Debtor in this agreement proves to have been <br />false in any material respect when made or furnished; or (d) dissolution, <br />termination of existence, insolvency, business failure, appointment of a <br />receiver of any part of the property of, assignment for the benefit of <br />creditors by, or the commencement of any proceeding under any bankruptcy or <br />insolvency laws of, by or against Debtor, and, with respect to any involuntary <br />action or proceeding against Debtor or the Collateral such action or <br />proceeding is not dismissed within 60 days after its commencement. <br /> <br />11. Remedies. (a) Upon the occurrence of any event of default and the <br />expiration of any applicable cure or grace period herein or in the loan <br />agreement between Maker and Secured Party, and at any time thereafter, Secured <br />Party shall have, in addition to all other rights and remedies, the remedies <br />of a secured party under the Uniform Commercial Code ("UCC") as then in effect <br />in Colorado, regardless of whether the UCC applies to the security <br />transactions covered by this agreement, including without limitation the right <br />to accelerate the maturity of the Obligations, without further notice or <br />demand, and to take possession of the Collateral and any proceeds thereof <br />wherever located. Secured Party shall give to Debtor at least 15 days' prior <br />written notice of the time and place of any public sale of the Collateral or <br />of the time after which any private sale or any other intended disposition is <br />to be made. (b) If Secured Party in good faith believes that the Securities <br />Act of 1933 or any other state or federal law prohibits or restricts the <br />customary manner of sale or distribution of any of the Collateral, Secured <br />Party may sell such Collateral privately or in any other manner deemed <br />advisable by Secured Party at such price or prices as Secured Party determines <br />in its sole discretion. Debtor recognizes that such prohibition or <br />restriction may cause the Collateral to have less value than it otherwise <br />would have and that, consequently, such sale or disposition by Secured Party <br />may result in a lower sales price than if the sale were otherwise held. <br /> <br />E-3 <br />