Common use of Hypothec Clause in Contracts

Hypothec. As security for the full and final payment of rent and for the performance by Lessee of all its obligations pursuant to the Lease, Lessee hereby grants to Lessor a movable hypothec for an amount of Five Hundred Thousand Dollars ($500,000), on all of Lessee’s present and future machinery, equipment, inventory, furniture and fixtures located in the Premises. Lessor accepts that such hypothec shall be second ranking behind that held by Lessee’s principal financial institution from time to time. If the Lessee’s principal financing is obtained from a group of financial institutions that rank para passu as between themselves, then the hypothec herein referred to shall rank second behind such financing. Lessee hereby irrevocably authorizes Lessor to do all that is necessary to ensure that this hypothec remains effective and at all times opposable to third parties, including, without limitation, the right to sign and execute any necessary documents or statements that must be registered in the appropriate registers to reflect the granting of the present hypothec