GENERAL31747

• Permit No: M1977376
• IBM Index Class Name: General Documents
• Doc Name: SECURITY AGREEMENT
• Media Type: D
• Archive: No

` and/or operator of the premises at such addresses for all
locations which Guarantors do not own and operate and all
mortgages, if any, with respect to the premises. Guarantors will
not remove any Collateral from such locations, without Lender's
prior written consent; except for sales of inventory in the
ordinary course of Guarantors' respective businesses.
(c) Guarantors will maintain their books, records and
accounts in accordance with GAAP. Each of Guarantors agrees to
furnish Lender with interim financial statements (including
balance sheets, statements of income and surplus account and cash
flow statements), and to furnish Lender, at any time or from time
to time with such other information regarding its business
affairs and financial condition as Lender may reasonably request,
including, without limitation, balance sheets, statements of
profit and loss, financial statements, cash flow and other
projections, earnings forecasts, schedules, agings and reports.
Each of Guarantors hereby irrevocably authorizes and directs all
accountants, auditors or other third parties to deliver to
Lender, at Guarantors' expense, copies of its financial
statements, papers related thereto, and other accounting records
of any nature in their possession and to disclose to Lender any
information they may have regarding its business affairs and
financial conditions. Guarantors will furnish Lender with
audited financial statements on an annual basis certified by
independent public accounts selected by Guarantors and acceptable
to Lender. All such statements and information will fairly
present Guarantors' financial condition as of the dates and the
results of Guarantors' operations for the periods, for which the
same are furnished. Any documents, schedules or other papers
delivered to Lender may be destroyed or otherwise disposed of by
Lender one (1) year after the same are delivered to Lendez,
unless Guarantors make written request therefor and pay all
expenses attendant to their return, in which event Lender shall
return same when Lender's actual or anticipated need therefor has
ceased.
(d) Guarantors will duly pay and discharge all taxes,
assessments, contributions and governmental charges upon or
against Guarantors or their properties or assets prior to the
date on which penalties attach thereto subject to such approval
or authorization of the Bankruptcy Court as may be required in
the Chapter 11 Cases. Guarantors will be liable for any tax or
penalty imposed upon any transaction under this Agreement or
giving rise to the Accounts or any other Collateral or which
Lender may be required to withhold or pay for any reason and each
of Guarantors agrees to indemnify and hold Lender harmless with
respect thereto, and to repay to Lender on demand the amount
thereof, and until paid by Guarantors such amount shall be added
to and deemed part of the Obligations.
(e) Except as otherwise disclosed to Lender in
writing, there is no present investigation by any governmental
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