HomeMy WebLinkAbout0154 (b) The cntire unpaid principal amonnt of the Subject Indebtedness, togtther with all accrued and unpaid
interest thercun shall, unless an agrecment, notes an~~ other documents satisfactory to AMF shall have txen
executc~l and delivered under the provisions of paragraph 2(b) or 2(c) above, be immediatelv dat and payable~
without the necessity of any notice or demand by AMF and AMF inay proceed to protect and enforte its nghts
to the immcdiate paytnent thereof and any further or additionai rights which it may have either by suit in aqnity
. or by action at law, or both, whether for the ~erforntznce of any covenant, condition or agreement contained
herem or in 1a?fi instrument or instrurnents tvidencmg, securing ar otherwise rtlating to the Subjtct Indebtedness.
4. The Optsator's Rep~cs~tatioxs axd Warronties. The~Operator represents and wurants the truth and
accuracy of the following matters in order to induce AMF to enter into and abide by the terms and conditions of
this Agreemtnt :
(a) That the Operator's financial position is fairly presented by the &c~an~ial statements (balance sheet and
related statements as at a recent date) previously initialed and delivered to AMF and identified as Schedule II to
this Agreement, that said financial statements were prepareci in conformity with generally accepted accounting
principles consistently applied and that none of tl~e prop=rties or assets of Uperator are subject to any security
interrst, mortgage, pledge, li~n, encumbrante or charge whatsoever except as expressly stated in the notes attached
to saicl financial statements.
(b) That the Operator has na indebtedness or ~ther liabilities for the payment of mor?ey, whether matured~
unmatured or contingeni, except the Subject Indebtednes~, the additional liabilities set forth ~n Schedule II and
current liabilities for accounts payable, expense accruals and taxes incurred in the ordinary course and conduct of
business since the date of preparation of the aforesaid financial statements of tht Operatar.
(c) That all statements, reports, records, clocuments or other matters heretofore vr hereafter communicated
or delivered to AMF by or on behaif of the Operator and concerning the Operator's business or any other matter
pertaining ta this Agreement or to the subject matter thereof, are both true and accurate, and where completeness
is called for by the request for 'such information, or where tht completeness of such information supplied is
represented by the Overatar or where the nature of the information ar the context in which it is given wouid lead a
reasonable man to believe in the completeness of such inforniation, the same shall be complete.
(d) That Operator has not, since the date of the financial statements inclucled in Schedule II, done or suf~ered
any ~f the acts described in paragraph 6(e) hereof nor has anything set forth in paragraphs 6(f) and 6(g) htreof
occuned since such date.
5. Tke Ope~ato?s Covenants.
(a) The Operator covenants that during the term of this Agreement and any r.xtension thereof, the Operator
will not :
(i) create, assume, incur, suf~er to exist or in any manner be or become liable in respect of any indebtedness,
other than
(aa) indebtedness to AMF,
(bb) current liabilities fnr acconnts payable incurred or assumed in the ordinary covrse of business in
an amount at any one time outstanding not in excess af the product of ~,'iOU. rnultiplied by the
number of bowling lanes stated in Schedule III attached heTeto and owned and operated by
Operator, provided that such accounts payable shall be paid and discharged within t~velve (12)
rnonths after the same shall have becorne accounts payable unless the same shall be currently but
in good faith cantested by the Operator by appropriate proceedings,
(ec) liabilities for currtnt taaces, assessments, governrnental charges or levies, and
(dd) liabilities or indebtedness currently outstanding and set forth in Schedute II,
(ii) create, assume, incur or suf~er to be created, assumed nr incurred or to exist, without the express written
consent of AMF, any security interest, mortgage, lien, pledge, encumbrance or charge of any kind on any
property of any character of the Operator whether owned at the date of this Agreement or hereafter
acquued or acquire or agree to acquire any property of any character subject to any conditional sale
agreement or other title retention agreement or enter into any lease, sublease or assignment or assumption
of lease, provi~ed, hawever, that there shall be exctuded from the operation of ihis section:
~ (aa) security interests, mortg;ages, liens, pledges, encumbrances or charges presently existing at the date
of thi§ Agreement and described in the notes to the financial statements forming a part of Schedule IT,
(bb) liens for taxes or assessments or gover.nmental charges or levies; pledges or deposits made to
secure obligations under workmen's compensation laws or similar leg~slation, including liens of
judgment thereunder which are not cunently dischargeable; deposits to secure statutory or
~ public obligations of the Operator; materialmen's, mechanics', workmen's, repairmen's or other
like liens in the ordinary course of business or deposits to obtain the relrase of such liens ; and
xcurity interest~, mortgages, lirns, pledges, encumbrances or charges the creation of which is
expressly consented to in writing by AMF,
(iii) make, without the prior written constnt of AMF, any expenditure for additianal impravernents to or
modification or renovation of premises or fixtures or equipment or capital improvement in an amount
in excess of the product of jl(lb. multiplied by the number of bowling lanes stated in St]~etlule III ~
attached hereto and awned by Operator,
(iv) pay rent for the use of real or personal property at rates in excess of those set forth in the respective
lease agreements relating to such prt~ierty in e$ect at t~e date hereof,
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