GENERAL44265

• Permit No: M1977376
• IBM Index Class Name: General Documents
• Doc Name: COVENANT SUPPLEMETN TO ACCOUNTS FINANCING AGREEMENT SECURITY AGREEMENT
• Media Type: D
• Archive: No

or committed to be made in any one fiscal year may not be made or
committed to be made in any following fiscal year) in excess of
$10,000,000 in any fiscal year.
Section 3.. ADDITIONAL COLLATERAL
In addition to the Collateral referred to in Section 4.1 of
the Accounts Agreement or in any of the other Financing
Agreements, as security for the prompt performance, observance and
payment in full of all Obligations, Borrower hereby grant:s to
Congress a continuing security interest in, a lien upon and hereby
assigns, transfers, pledges and sets over to Congress a1:L personal
property now or hereafter owned by Borrower or in which Borrower
has an interest, tangible and intangible, other than equipment,
including, without limitation, all of the Collateral described in
Section 4.1 of the Accounts Agreement, all oP the Collateral
described in Section 1 of the Inventory Security Agreement
Supplement to the Accounts Agreement, all choses in action and
other claims and recoveries (including any recoveries av.3ilable to
Borrower's estate pursuant to Sections 544, 545, 547, 54B and 551
of the Bankruptcy Code) and all other property of Borrower's
estate upon which Congress is granted a security interest or lien
pursuant to the Financing Order.
Section 4. ADDITIONAL EVENTS OF DEFAULT
The occurrence of any one or more of the following shall
constitute an 'Event of Defaults hereunder, under the Accounts
Agreement and under the other Financing Agreements:
4.1 Borrower shall be in default in the payment of any of
the Obligations when due; or
4.2 Borrower shall fail to observe or perform any covenant
or agreement contained herein, in the Accounts Agreement or in any
of the other Financing Agreements; or
4.3 Guarantors or any other guarantor, endorser or other
person liable on the Obligations shall terminate or breach any of
the terms, covenants, conditions or provisions of any guarantee,
endorsement or other agreement of such person with, or in favor
of, Congress; or
4.4 any representation, warranty or statement of fact made
to Congress at any time by or on behalf of Borrower is i'alse or
misleading in any material respect; or
4.5 Borrower, Guarantors or any other guarantor, endorser
or other person liable on the Obligations shall make a general
assignment for the benefit of creditors, suspend or discontinue
doing business for any reason, or any trustee, receiver,. custodian
or liquidator shall be appointed for it or them or all or any part
of its oz their properties or assets; or
-12-