EXHIBIT
10.4
EXHIBIT C
SECURITY AGREEMENT
SECURITY
AGREEMENT, dated as of February 9, 2009 (this “
Agreement ”), among BroadWebAsia, Inc., a Delaware
corporation (the “ Company ” or the “
Debtor ”) and the holder of the Company’s 18%
Secured Convertible Promissory Note due May 10, 2009 in
the original aggregate principal amount of $150,000 (the “
Note ”), signatory hereto, their endorsees,
transferees and assigns (collectively referred to as, the “
Secured Party ”).
W I T N E S S E T
H:
WHEREAS,
pursuant to the Note, the Secured Party has agreed to extend
the loans to the Company evidenced by the Note;
WHEREAS,
in order to induce the Secured Party to extend the loans evidenced
by the Note, the Debtor has agreed to execute and deliver to the
Secured Party this Agreement and to grant the Secured Party a
perfected security interest in certain property of such Debtor to
secure the prompt payment, performance and discharge in full of all
of the Company’s obligations under the Note and the other
Debtor’s obligations under the Guaranty.
NOW,
THEREFORE, in consideration of the agreements herein contained and
for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:
1.
Certain Definitions . As used in this Agreement, the
following terms shall have the meanings set forth in this Section
1. Terms used but not otherwise defined in this
Agreement that are defined in Article 9 of the UCC (such as
“account”, “chattel paper”,
“commercial tort claim”, “deposit account”,
“document”, “equipment”,
“fixtures”, “general intangibles”,
“goods”, “instruments”,
“inventory”, “investment property”,
“letter-of-credit rights”, “proceeds” and
“supporting obligations”) shall have the respective
meanings given such terms in Article 9 of the UCC.
(a) “
Collateral ” means the collateral in which the Secured
Party is granted a security interest by this Agreement and
which shall include the following personal property of the Debtor,
whether presently owned or existing or hereafter acquired or coming
into existence, wherever situated, and all additions and accessions
thereto and all substitutions and replacements thereof, and all
proceeds, products and accounts thereof, including, without
limitation, all proceeds from the sale or transfer of the
Collateral and of insurance covering the same and of any tort
claims in connection therewith, and all dividends, interest, cash,
notes, securities, equity interest or other property at any time
and from time to time acquired, receivable or otherwise distributed
in respect of, or in exchange for, any or all of the Pledged
Securities (as defined below):
(i) All goods,
including, without limitations, (A) all machinery, equipment,
computers, motor vehicles, trucks, tanks, boats, ships, appliances,
furniture, special and general tools, fixtures, test and quality
control devices and other equipment of every kind and nature and
wherever situated, together with all documents of title and
documents representing the same, all additions and accessions
thereto, replacements therefor, all parts therefor, and all
substitutes for any of the foregoing and all other items used and
useful in connection with any Debtor’s businesses and all
improvements thereto; and (B) all inventory;
(ii) All contract
rights and other general intangibles, including, without
limitation, all partnership interests, membership interests, stock
or other securities, rights under any of the Organizational
Documents, agreements related to the Pledged Securities, licenses,
distribution and other agreements, computer software (whether
“off-the-shelf”, licensed from any third party or
developed by any Debtor), computer software development rights,
leases, franchises, customer lists, quality control procedures,
grants and rights, goodwill, trademarks, service marks, trade
styles, trade names, patents, patent applications, copyrights, and
income tax refunds;
(iii) All
accounts, together with all instruments, all documents of title
representing any of the foregoing, all rights in any merchandising,
goods, equipment, motor vehicles and trucks which any of the same
may represent, and all right, title, security and guaranties with
respect to each account, including any right of stoppage in
transit;
(iv) All
documents, letter-of-credit rights, instruments and chattel
paper;
(v) All
commercial tort claims;
(vi) All
deposit accounts and all cash (whether or not deposited in such
deposit accounts);
(vii) All
investment property;
(viii) All
supporting obligations; and
(ix) All
files, records, books of account, business papers, and computer
programs; and
(x) the products
and proceeds of all of the foregoing Collateral set forth in
clauses (i)-(ix) above.
Without limiting the generality of the
foregoing, the “ Collateral ” shall include all
investment property and general intangibles respecting ownership
and/or other equity interests in each Guarantor, including, without
limitation, the shares of capital stock and the other equity
interests listed on Schedule H hereto (as the same may be
modified from time to time pursuant to the terms hereof), and any
other shares of capital stock and/or other equity interests of any
other direct or indirect subsidiary of any Debtor obtained in the
future, and, in each case, all certificates representing such
shares and/or equity interests and, in each case, all rights,
options, warrants, stock, other securities and/or equity interests
that may hereafter be received, receivable or distributed in
respect of, or exchanged for, any of the foregoing (all of the
foregoing being referred to herein as the “ Pledged
Securities ”) and all rights arising under or in
connection with the Pledged Securities, including, but not limited
to, all dividends, interest and cash.
Notwithstanding the foregoing, nothing herein
shall be deemed to constitute an assignment of any asset which, in
the event of an assignment, becomes void by operation of applicable
law or the assignment of which is otherwise prohibited by
applicable law (in each case to the extent that such applicable law
is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC
or other similar applicable law); provided, however, that to the
extent permitted by applicable law, this Agreement shall create a
valid security interest in such asset and, to the extent permitted
by applicable law, this Agreement shall create a valid security
interest in the proceeds of such asset.
(b) “
Intellectual Property ” means the collective reference
to all rights, priorities and privileges relating to intellectual
property, whether arising under United States, multinational or
foreign laws or otherwise, including, without limitation, (i) all
copyrights arising under the laws of the United States, any other
country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished, all
registrations and recordings thereof, and all applications in
connection therewith, including, without limitation, all
registrations, recordings and applications in the United States
Copyright Office, (ii) all letters patent of the United States, any
other country or any political subdivision thereof, all reissues
and extensions thereof, and all applications for letters patent of
the United States or any other country and all divisions,
continuations and continuations-in-part thereof, (iii) all
trademarks, trade names, corporate names, company names, business
names, fictitious business names, trade dress, service marks,
logos, domain names and other source or business identifiers, and
all goodwill associated therewith, now existing or hereafter
adopted or acquired, all registrations and recordings thereof, and
all applications in connection therewith, whether in the United
States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country
or any political subdivision thereof, or otherwise, and all common
law rights related thereto, (iv) all trade secrets arising under
the laws of the United States, any other country or any political
subdivision thereof, (v) all rights to obtain any reissues,
renewals or extensions of the foregoing, (vi) all licenses for any
of the foregoing, and (vii) all causes of action for infringement
of the foregoing.
(c) “
Majority in Interest ” shall mean, at any time of
determination, the majority in interest (based on then-outstanding
principal amounts of Notes at the time of such determination) of
the Secured Party.
(d) “
Necessary Endorsement ” shall mean undated stock
powers endorsed in blank or other proper instruments of assignment
duly executed and such other instruments or documents as the Agent
(as that term is defined below) may reasonably request.
(e) “
Obligations ” means, without limitation: (i) principal
of, and interest on the Notes and the loans extended pursuant
thereto; (ii) any and all other fees, indemnities, costs,
obligations and liabilities of the Debtors from time to time under
or in connection with this Agreement, the Notes, the Guaranty and
any other instruments, agreements or other documents executed
and/or delivered in connection herewith or therewith; and (iii) all
amounts (including but not limited to post-petition interest) in
respect of the foregoing that would be payable but for the fact
that the obligations to pay such amounts are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving any Debtor.
(f) “
Organizational Documents ” means with respect to any
Debtor, the documents by which such Debtor was organized (such as a
certificate of incorporation, certificate of limited partnership or
articles of organization, and including, without limitation, any
certificates of designation for preferred stock or other forms of
preferred equity) and which relate to the internal governance of
such Debtor (such as bylaws, a partnership agreement or an
operating, limited liability or members agreement).
(g) “
UCC ” means the Uniform Commercial Code of the State
of Delaware and or any other applicable law of any state or states
which has jurisdiction with respect to all, or any portion of, the
Collateral or this Agreement, from time to time. It is
the intent of the parties that defined terms in the UCC should be
construed in their broadest sense so that the term
“Collateral” will be construed in its broadest
sense. Accordingly if there are, from time to time,
changes to defined terms in the UCC that broaden the definitions,
they are incorporated herein and if existing definitions in the UCC
are broader than the amended definitions, the existing ones shall
be controlling.
2. Grant of
Perfected First Priority Security Interest . As an inducement
for the Secured Party to extend the loans as evidenced by the Notes
and to secure the complete and timely payment, performance and
discharge in full, as the case may be, of all of the Obligations,
each Debtor hereby unconditionally and irrevocably pledges, grants
and hypothecates to the Secured Party a continuing and perfected
security interest in and to, a lien upon and a right of set-off
against all of their respective right, title and interest of
whatsoever kind and nature in and to, the Collateral (the “
Security Interest ”).
3. Delivery
of Certain Collateral . Contemporaneously or prior
to the execution of this Agreement, each Debtor shall deliver or
cause to be delivered to the Agent (a) any and all certificates and
other instruments representing or evidencing the Pledged
Securities, and (b) any and all certificates and other instruments
or documents representing any of the other Collateral, in each
case, together with all Necessary Endorsements. The
Debtors are, contemporaneously with the execution hereof,
delivering to Agent, or have previously delivered to Agent, a true
and correct copy of each Organizational Document governing any of
the Pledged Securities.
4.
Representations, Warranties, Covenants and Agreements of the
Debtors . Each Debtor represents and warrants to, and covenants
and agrees with, the Secured Party as follows:
(a) Each Debtor
has the requisite corporate, partnership, limited liability company
or other power and authority to enter into this Agreement and
otherwise to carry out its obligations hereunder. The execution,
delivery and performance by each Debtor of this Agreement and the
filings contemplated therein have been duly authorized by all
necessary action on the part of such Debtor and no further action
is required by such Debtor. This Agreement has been duly
executed by each Debtor. This Agreement constitutes the
legal, valid and binding obligation of each Debtor, enforceable
against each Debtor in accordance with its terms except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization and similar laws of general application
relating to or affecting the rights and remedies of creditors and
by general principles of equity.
(b) The Debtors
have no place of business or offices where their respective books
of account and records are kept (other than temporarily at the
offices of its attorneys or accountants) or places where Collateral
is stored or located, except as set forth on Schedule A
attached hereto. Except as specifically set forth on
Schedule A , each Debtor is the record owner of the real
property where such Collateral is located, and there exist no
mortgages or other liens on any such real property except for
Permitted Liens (as defined in the Notes). Except as
disclosed on Schedule A , none of such Collateral is in the
possession of any consignee, bailee, warehouseman, agent or
processor.
(c) Except for
Permitted Liens (as defined in the Notes) and except as set forth
on Schedule B attached hereto, the Debtors are the sole
owner of the Collateral (except for non-exclusive licenses granted
by any Debtor in the ordinary course of business), free and clear
of any liens, security interests, encumbrances, rights or claims,
and are fully authorized to grant the Security
Interest. There is not on file in any governmental or
regulatory authority, agency or recording office an effective
financing statement, security agreement, license or transfer or any
notice of any of the foregoing (other than those that will be filed
in favor of the Secured Party pursuant to this Agreement) covering
or affecting any of the Collateral. So long as this
Agreement shall be in effect, the Debtors shall not execute and
shall not knowingly permit to be on file in any such office or
agency any such financing statement or other document or instrument
(except to the extent filed or recorded in favor of the Secured
Party pursuant to the terms of this Agreement).
(d) No written
claim has been received that any Collateral or Debtor's use of any
Collateral violates the rights of any third party. There has been
no adverse decision to any Debtor's claim of ownership rights in or
exclusive rights to use the Collateral in any jurisdiction or to
any Debtor's right to keep and maintain such Collateral in full
force and effect, and there is no proceeding involving said rights
pending or, to the best knowledge of any Debtor, threatened before
any court, judicial body, administrative or regulatory agency,
arbitrator or other governmental authority.
(e) Each Debtor
shall at all times maintain its books of account and records
relating to the Collateral at its principal place of business and
its Collateral at the locations set forth on Schedule A
attached hereto and may not relocate such books of account and
records or tangible Collateral unless it delivers to the Secured
Party at least 30 days prior to such relocation (i) written notice
of such relocation and the new location thereof (which must be
within the United States) and (ii) evidence that appropriate
financing statements under the UCC and other necessary documents
have been filed and recorded and other steps have been taken to
perfect the Security Interest to create in favor of the Secured
Party a valid, perfected and continuing perfected first priority
lien in the Collateral.
(f) This
Agreement creates in favor of the Secured Party a valid, security
interest in the Collateral, subject only to Permitted Liens (as
defined in the Notes) securing the payment and performance of the
Obligations. Upon making the filings described in the
immediately following paragraph, all security interests created
hereunder in any Collateral which may be perfected by filing
Uniform Commercial Code financing statements shall have been duly
perfected. Except for the filing of the Uniform
Commercial Code financing statements referred to in the immediately
following paragraph, the recordation of the Intellectual Property
Security Agreement (as defined below) with respect to copyrights
and copyright applications in the United States Copyright Office
referred to in paragraph (m), the execution and delivery of deposit
account control agreements satisfying the requirements of Section
9-104(a)(2) of the UCC with respect to each deposit account of the
Debtors, and the delivery of the certificates and other instruments
provided in Section 3, no action is necessary to create, perfect or
protect the security interests created
hereunder. Without limiting the generality of the
foregoing, except for the filing of said financing statements, the
recordation of said Intellectual Property Security Agreement, and
the execution and delivery of said deposit account control
agreements, no consent of any third parties and no authorization,
approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body is required for (i) the
execution, delivery and performance of this Agreement, (ii) the
creation or perfection of the Security Interests created hereunder
in the Collateral or (iii) the enforcement of the rights of the
Secured Party hereunder.
(g) Each Debtor
hereby authorizes the Secured Party, or any of them, to file one or
more financing statements under the UCC, with respect to the
Security Interest with the proper filing and recording agencies in
any jurisdiction deemed proper by them.
(h) The
execution, delivery and performance of this Agreement by the
Debtors does not (i) violate any of the provisions of any
Organizational Documents of any Debtor or any judgment, decree,
order or award of any court, governmental body or arbitrator or any
applicable law, rule or regulation applicable to any Debtor or
(ii) conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of,
any agreement, credit facility, debt or other instrument
(evidencing any Debtor's debt or otherwise) or other understanding
to which any Debtor is a party or by which any property or asset of
any Debtor is bound or affected. No consent (including, without
limitation, from stockholders or creditors of any Debtor) is
required for any Debtor to enter into and perform its obligations
hereunder.
(i) The capital
stock and other equity interests listed on Schedule H hereto
represent all of the capital stock and other equity interests of
the Guarantors, and represent all capital stock and other equity
interests owned, directly or indirectly, by the
Company. All of the Pledged Securities are validly
issued, fully paid and nonassessable, and the Company is the legal
and beneficial owner of the Pledged Securities, free and clear of
any lien, security interest or other encumbrance except for the
security interests created by this Agreement and other Permitted
Liens (as defined in the Note).
(j) The
ownership and other equity interests in partnerships and limited
liability companies (if any) included in the Collateral (the
“ Pledged Interests ”) by their express terms do
not provide that they are securities governed by Article 8 of the
UCC and are not held in a securities account or by any financial
intermediary.
(k) Each Debtor
shall at all times maintain the liens and Security Interest
provided for hereunder as valid and perfected first priority liens
and security interests in the Collateral in favor of the Secured
Party until this Agreement and the Security Interest hereunder
shall be terminated pursuant to Section 11 hereof. Each
Debtor hereby agrees to defend the same against the claims of any
and all persons and entities. Each Debtor shall safeguard and
protect all Collateral for the account of the Secured
Party. At the request of the Secured Party, each
Debtor will sign and deliver to the Secured Party at any time or
from time to time one or more financing statements pursuant to the
UCC in form reasonably satisfactory to the Secured Party and will
pay the cost of filing the same in all public offices wherever
filing is, or is deemed by the Secured Party to be, necessary or
desirable to effect the rights and obligations provided for herein.
Without limiting the generality of the foregoing, each Debtor shall
pay all fees, taxes and other amounts necessary to maintain the
Collateral and the Security Interest hereunder, and each Debtor
shall obtain and furnish to the Secured Party from time to time,
upon demand, such releases and/or subordinations of claims and
liens which may be required to maintain the priority of the
Security Interest hereunder.
(l) No Debtor
will transfer, pledge, hypothecate, encumber, license, sell or
otherwise dispose of any of the Collateral (except for
non-exclusive licenses granted by a Debtor in its ordinary course
of business and sales of inventory by a Debtor in its ordinary
course of business) without the prior written consent of a Majority
in Interest.
(m) Each Debtor shall
keep and preserve its equipment, inventory and other tangible
Collateral in good condition, repair and order and shall not
operate or locate any such Collateral (or cause to be operated or
located) in any area excluded from insurance coverage.
(n) Each Debtor
shall maintain with financially sound and reputable insurers,
insurance with respect to the Collateral against loss or damage of
the kinds and in the amounts customarily insured against by
entities of established reputation having similar properties
similarly situated and in such amounts as are customarily carried
under similar circumstances by other such entities and otherwise as
is prudent for entities engaged in similar businesses but in any
event sufficient to cover the full replacement cost
thereof. Each Debtor shall cause each insurance policy
issued in connection herewith to provide, and the insurer issuing
such policy to certify to the Agent that (a) the Agent will be
named as lender loss payee and additional insured under each
such insurance policy; (b) if such insurance be proposed to be
cancelled or materially changed for any reason whatsoever, such
insurer will promptly notify the Agent and such cancellation or
change shall not be effective as to the Agent for at least
thirty (30) days after receipt by the Agent of such notice, unless
the effect of such change is to extend or increase coverage under
the policy; and (c) the Agent will have the right (but no
obligation) at its election to remedy any default in the payment of
premiums within thirty (30) days of notice from the insurer of such
default. If no Event of Default (as defined in the Note)
exists and if the proceeds arising out of any claim or series of
related claims do not exceed $100,000, loss payments in each
instance will be applied by the applicable Debtor to the repair
and/or replacement of property with respect to which the loss was
incurred to the extent reasonably feasible, and any loss payments
or the balance thereof remaining, to the extent not so
applied, shall be payable to the applicable Debtor, provided,
however, that payments received by any Debtor after an Event of
Default occurs and is continuing or in excess of $100,000 for any
occurrence or series of related occurrences shall be paid to the
Agent and, if received by such Debtor, shall be held in trust for
and immediately paid over to the Agent unless otherwise directed in
writing by the Agent. Copies of such policies or
the related certificates, in each case, naming the Agent as lender
loss payee and additional insured shall be delivered to the Agent
at least annually and at the time any new policy of insurance is
issued.
(o) Each Debtor
shall, within ten (10) days of obtaining knowledge thereof, advise
the Secured Party promptly, in sufficient detail, of any
substantial change in the Collateral, and of the occurrence of any
event which would have a material adverse effect on the value of
the Collateral or on the Secured Party’ security interest
therein.
(p) Each Debtor
shall promptly execute and deliver to the Secured Party such
further deeds, mortgages, assignments, security agreements,
financing statements or other instruments, documents, certificates
and assurances and take such further action as the Secured Party
may from time to time request and may in its sole discretion deem
necessary to perfect, protect or enforce its security interest in
the Collateral including, without limitation, if applicable, the
execution and delivery of a separate security agreement with
respect to each Debtor’s Intellectual Property (“
Intellectual Property Security Agreement ”) in which
the Secured Party have been granted a security interest hereunder,
substantially in a form acceptable to the Secured Party, which
Intellectual Property Security Agreement, other than as stated
therein, shall be subject to all of the terms and conditions
hereof.
(q) Each Debtor
shall permit the Secured Party and their representatives and agents
to inspect the Collateral at any time, and to make copies of
records pertaining to the Collateral as may be requested by a
Secured Party from time to time.
(r) Each Debtor
shall take all steps reasonably necessary to diligently pursue and
seek to preserve, enforce and collect any rights, claims, causes of
action and accounts receivable in respect of the
Collateral.
(s) Each Debtor
shall promptly notify the Secured Party in sufficient detail upon
becoming aware of any attachment, garnishment, execution or other
legal process levied against any Collateral and of any other
information received by such Debtor that may materially affect the
value of the Collateral, the Security Interest or the rights and
remedies of the Secured Party hereunder.
(t) All
information heretofore, herein or hereafter supplied to the Secured
Party by or on behalf of any Debtor with respect to the Collateral
is accurate and complete in all material respects as of the date
furnished.
(u) The
Debtors shall at all times preserve and keep in full force and
effect their respective valid existence and good standing and any
rights and franchises material to its business.
(v) No
Debtor will change its name, type of organization, jurisdiction of
organization, organizational identification number (if it has one),
legal or corporate structure, or identity, or add any new
fictitious name unless it provides at least 30 days prior written
notice to the Secured Party of such change and, at the time of such
written notification, such Debtor provides any financing statements
or fixture filings necessary to perfect and continue perfected the
perfected security Interest granted and evidenced by this
Agreement.
(w) No
Debtor may consign any of its Inventory or sell any of its
Inventory on bill and hold, sale or return, sale on approval, or
other conditional terms of sale without the consent of
a Majority in Interest which shall not be unreasonably
withheld, except to the extent such consignment or sale does not
exceed 15% of the total value of all of the Company’s
finished goods in Inventory.
(x) No
Debtor may relocate its chief executive office to a new location
without providing 30 days prior written notification thereof to the
Secured Party and so long as, at the time of such written
notification, such Debtor provides any financing statements or
fixture filings necessary to perfect and continue perfected the
perfected security Interest granted and evidenced by this
Agreement.
(y) Each
Debtor was organized and remains organized solely under the laws of
the state set forth next to such Debtor’s name in the first
paragraph of this Agreement. Schedule D attached
hereto sets forth each Debtor’s organizational identification
number or, if any Debtor does not have one, states that one does
not exist.
(z)
(i) The actual name of each Debtor is the name set forth in the
preamble above; (ii) no Debtor has any trade names except as set
forth on Schedule E attached hereto; (iii) no Debtor has
used any name other than that stated in the preamble hereto or as
set forth on Schedule E for the preceding five years; and
(iv) no entity has merged into any Debtor or been acquired by any
Debtor within the past five years except as set forth on
Schedule E .
(aa) At
any time and from time to time that any Collateral consists of
instruments, certificated securities or other items that require or
permit possession by the secured party to perfect the security
interest created hereby, the applicable Debtor shall deliver such
Collateral to the Agent.
(bb) Each
Debtor, in its capacity as issuer, hereby agrees to comply with any
and all orders and instructions of Agent regarding the Pledged
Interests consistent with the terms of this Agreement without the
further consent of any Debtor as contemplated by Section 8-106 (or
any successor section) of the UCC. Further, each Debtor
agrees that it shall not enter into a similar agreement (or one
that would confer “control” within the meaning of
Article 8 of the UCC) with any other person or entity.
(cc) Each
Debtor shall cause all tangible chattel paper constituting
Collateral to be delivered to the Agent, or, if such delivery is
not possible, then to cause such tangible chattel paper to contain
a legend noting that it is subject to the security interest created
by this Agreement. To the extent that any Collateral
consists of electronic chattel paper, the applicable Debtor shall
cause the underlying chattel paper to be “marked”
within the meaning of Section 9-105 of the UCC (or successor
section thereto).
(dd) If there is any
investment property or deposit account included as Collateral that
can be perfected by “control” through an account
control agreement, the applicable Debtor shall cause such an
account control agreement, in form and substance in each case
satisfactory to the Secured Party, to be entered into and delivered
to the Secured Party.
(ee) To
the extent that any Collateral consists of letter-of-credit rights,
the applicable Debtor shall cause the issuer of each underlying
letter of credit to consent to an assignment of the proceeds
thereof to the Secured Party.
(ff) To
the extent that any Collateral is in the possession of any third
party, the applicable Debtor shall join with the Secured Party in
notifying such third party of the Secured Party’ security
interest in such Collateral and shall use its best efforts to
obtain an acknowledgement and agreement from such third party with
respect to the Collateral, in form and substance satisfactory to
the Secured Party.
(gg) If any Debtor
shall at any time hold or acquire a commercial tort claim, such
Debtor shall promptly notify the Secured Party in a writing signed
by such Debtor of the particulars thereof and grant to the Secured
Party in such writing a security interest therein and in the
proceeds thereof, all upon the terms of this Agreement, with such
writing to be in form and substance satisfactory to the Secured
Party.
(hh) Each Debtor shall
immediately provide written notice to the Secured Party of any and
all accounts which arise out of contracts with any governmental
authority and, to the extent necessary to perfect or continue the
perfected status of the Security Interest in such accounts and
proceeds thereof, shall execute and deliver to the Secured Party an
assignment of claims for such accounts and cooperate with the
Secured Party in taking any other steps required, in their
judgment, under the Federal Assignment of Claims Act or any similar
federal, state or local statute or rule to perfect or continue the
perfected status of the Security Interest in such accounts and
proceeds thereof.
(ii) Each Debtor
shall cause each subsidiary of such Debtor to immediately become a
party hereto (an “ Additional Debtor ”), by
executing and delivering an Additional Debtor Joinder in
substantially the form of Annex A attached hereto and comply with
the provisions hereof applicable to the
Debtors. Concurrent therewith, the Additional Debtor
shall deliver replacement schedules for, or supplements to all
other Schedules to (or referred to in) this Agreement, as
applicable, which replacement schedules shall supersede, or
supplements shall modify, the Schedules then in
effect. The Additional Debtor shall also deliver such
opinions of counsel, authorizing resolutions,
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