Agenda - 06-24-1986 - Laserfiche WebLink

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equal or greater utility ( but not necessarily having the same function) , and having an equal or greater value in the operation of the Collateral, all of which substituted mach- inery, equipment or related property shall be free of all liens and encumbrances other than Permitted Encumbrances (as defined in the Loan Agreement) , and shall become a part of the Collateral; or (b) if it shall not make any such substitution and in- stallation, pay to the Secured Party as a prepayment of the Note ( i) in the case of the sale of any such items of Col- . lateral to anyone other than itself or a corporate affiliate of the Company or in the case of the scrapping thereof, the proceeds from such sale or scrapping, ( ii) in the case of the trade-in of any such items of Collateral, the amount of the credit received by it in such trade-in, and ( iii) in the case of the sale to itself or a corporate affiliate of the Company of any such items of Collateral or in the case of a disposition thereof not specifically mentioned in clauses ( i) , ( ii) or ( iii) hereof, an amount equal to the value thereof, all in accordance with the provisions of the last paragraph of this Section. The removal from the Project of any items of Collateral pursuant to the provisions of this Section 3 shall not entitle the Company to any abatement or diminution of its obligations under the Note. The Company shall file a report with the Secured Party and the Holder annually, on July 1, 1986, and on each July 1 there- after, describing generally each such removal, substitution, sale, scrapping, trade-in or other disposition of any item of Collateral having a value of more than $10, 000 and shall make any and all payments required by subsection (b) of this Section 3 within 30 days after filing such report; provided, however, that no such payment need be made until the aggregate amount to be paid to the Holder, determined from the annual reports mentioned above, on account of all such sales, scrappings, trade-ins or other dispositions of items having a value of more than $10,000 for which payments have not yet been made equals at least $50,000, at which time the Company shall, pay as provided above an amount equal to the aggregate value of such items. The amount so paid shall be deemed an optional prepayment of the Note and applied in accordance with Section 10.1(a) of the Loan Agreement. The Company will not remove, or permit the removal of, any of the Collateral except in accordance with the provisions of this Section 3. For purposes of this Section, the determination of the "value" of any item of Collateral shall be an amount equal to the original cost thereof less straight line depreciation calculated 4.