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Borrower shall receive from Kokan, as security for its advances to Kokan, thereunder, such lien or liens as may be consistent with the Borrower's established practice.

Section 5.08. Except as the Bank shall otherwise agree, the Borrower shall exercise its rights under the Second Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Bank; and (except as aforesaid) the Borrower shall not amend, assign, abrogate or waive any provision of the Second Subsidiary Loan Agreement; provided, however, that the agreement of the Bank shall not be required in respect of the following:

(a) the amendment, abrogation or waiver, or the making of any agreement or giving of any consent in respect of any provision of the Second Subsidiary Loan Agreement relating to (i) any guarantor thereunder or (ii) damages for non-performance by Kokan;

(b) the amendment or waiver, or the making of any agreement or giving of any consent in respect of provisions of the Second Subsidiary Loan Agreement relating to insurance or security; provided that such amendment, waiver or consent does not affect such provisions of the Second Subsidiary Loan Agreement in a manner which would depart from the established practices of the Borrower.

The Borrower shall advise the Bank promptly of any action or amendment taken in respect of the Second Subsidiary Loan Agreement pursuant to the provisions of the foregoing subsections (a) and (b).

Section 5.09. It is the mutual intention of the Borrower and the Bank that to the extent that Kokan shall prepay the Borrower its indebtedness under the Second Subsidiary Loan Agreement, the Borrower shall to a correspondingly proportionate extent prepay the Bank under this Loan Agreement. Accordingly, unless otherwise agreed between the Borrower and the Bank, if Kokan shall prepay in advance of maturity any part of its indebtedness to the Borrower under the Second Subsidiary Loan Agreement, then the Borrower shall thereupon repay to the Bank, in advance of maturity, an amount being such proportion of the principal amount of the Loan then outstanding as the amount so repaid to the Borrower by Kokan bears to the total principal amount owing by Kokan under the Second Subsidiary Loan Agreement immediately prior to such repayment; provided that, in computing any such total principal amounts, there shall be deducted any amount paid, contemporaneously with such repayment, in accordance with the amortization schedule set forth in Schedule 1 to this Agreement. To any repayment by the Borrower in accordance with this Section, all the provisions of the Loan Regulations relating to repayment in advance of maturity shall be applicable.

Section 6.01. (i) If any event specified in paragraph (a), paragraph (b), paragraph (e) or paragraph (f) of Section 5.02 of the Loan Regulations shall occur and shall continue

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