5.02 Other Indebtedness. Create, incur or permit to exist any liabilities resulting from borrowing, loans or advances, secured or unsecured, for the Borrower and any of its consolidated subsidiaries, except under credit facilities, notes, or other financing arrangements existing on the Closing Date or as set forth in Schedule 5.02, attached hereto.
5.03 Merger, Consolidation, Sale of Ownership Interests or Assets. Merge into or consolidate with any corporation, partnership, trust, association or other recognized legal entity other than a natural person (a Legal Entity); or sell, assign, transfer, pledge, mortgage, or otherwise dispose of all or substantially all of the major assets of the Borrower.
5.04 Guaranties. Guarantee or become liable in any way as a surety, endorser (other than in the ordinary course of business), or accommodation endorser or otherwise for the debt or obligation of any person or entity, except as set forth in Schedule 5.04, attached hereto.
5.05 Loans, Advances, Investments. Make any loans or advances to or investments in any person or entity (collectively, Investments), other than Investments (i) in any of its consolidated subsidiaries, (ii) existing on the Closing Date, or (iii) made in the ordinary course of business.
5.06 Business. Materially change the character of the Borrowers current business, or engage in any type of business other than the Borrowers current business.
VI. Banks Rights Upon Default
6.01 Events of Default. Event of Default means each of the events listed as Events of Default under the Note.
6.02 Banks Rights. If an Event of Default shall occur and be continuing the Bank shall have, in addition to any and all other rights and remedies, legal or equitable, available to the Bank under any and all of the Loan Documents or at law, the following additional rights and remedies:
| ||(a) || |
The absolute right to deny to the Borrower any further credit;
| ||(b) || |
The right, at the option of the Bank, to declare, without notice, the entire principal balance and accrued interest for the Loan, plus any fees and charges reasonably incurred by the Bank under any of the Loan Documents, immediately due and payable; and
| ||(c) || |
The right, at the option of the Bank, to charge interest on any principal amount outstanding under this Agreement at the Default Rate under the Note.