Collateral Call. The Borrower agrees upon the creation, formation or --------------- acquisition of any direct or indirect Subsidiary of the Borrower, to immediately pledge 100% of the Capital Stock of any such Subsidiary to secure the Obligations, pursuant to a pledge agreement substantially in the form of Exhibit ------- H hereto, and to promptly deliver to the Administrative Lender all certificates - or other documentation evidencing 100% of such Capital Stock and, if such Capital Stock is stock of a corporation, together with stock powers executed in blank. The Borrower agrees, upon the acquisition of any assets (whether through Capital Stock or otherwise) to immediately pledge/mortgage or grant a first priority security interest in (subject to Permitted Liens), as applicable, such assets of the type as are included in the definition of Collateral as set forth above to the Administrative Lender on behalf of the Lenders to secure the Obligations (and pursuant to agreements similar to those executed on the Closing Date). The Borrower agrees to use its best efforts to (and cause its Subsidiaries to use their best efforts to), upon the request of the Majority Lenders, grant the Administrative Lender on behalf of Lenders a first priority Lien or security interest (subject to Permitted Liens) in any asset of the Borrower or any of its Subsidiaries having a fair market value in excess of $1,000,000 and not constituting motor vehicles.
Appears in 1 contract
Sources: Credit Agreement (Itc Deltacom Inc)
Collateral Call. The Borrower agrees upon the creation, formation or --------------- acquisition of any direct or indirect Subsidiary of the Borrower, to immediately pledge 100% of the Capital Stock of any such Subsidiary to secure the Obligations, pursuant to a pledge agreement substantially in the form of Exhibit ------- H hereto, and to promptly deliver to the Administrative Lender all certificates - or other documentation evidencing 100% of such Capital Stock and, if such Capital Stock is stock of a corporation, together with stock powers executed in blank. The Borrower agrees, upon the acquisition of any assets (whether through Capital Stock or otherwise) to immediately pledge/mortgage or grant a first priority security interest in (subject to Permitted Liens), as applicable, such assets of the type as are included in the definition of Collateral as set forth above to the Administrative Lender on behalf of the Lenders to secure the Obligations (and pursuant to agreements similar to those executed on in connection with the Closing DateOriginal Credit Agreement). The Borrower agrees to use its best efforts to (and cause its Subsidiaries to use their best efforts to), upon the request of the Majority Lenders, grant the Administrative Lender on behalf of Lenders a first priority Lien or security interest (subject to Permitted Liens) in any asset of the Borrower or any of its Subsidiaries having a fair market value in excess of $1,000,000 and not constituting motor vehicles.
Appears in 1 contract
Sources: Credit Agreement (Itc Deltacom Inc)