BROKER AGREEMENT.
4.8
INDEBTEDNESS.
> (A)
THE BORROWERS DO NOT HAVE ANY INDEBTEDNESS WITH THE EXCEPTIONS OF:
>
> > (I)
ANY INDEBTEDNESS ON ACCOUNT OF THE REVOLVING CREDIT;
> > AND
> >
> > (II)
THE INDEBTEDNESS (IF ANY) LISTED ON EXHIBIT 4.8, ANNEXED
> > HERETO.
>
>
> (B)
DURING ANY COVENANT ACTIVATION PERIOD, THE BORROWERS SHALL NOT INCUR ANY
> INDEBTEDNESS EXCEPT FOR:
>
> > (I)
ANY INDEBTEDNESS ON ACCOUNT OF THE REVOLVING CREDIT AND
> > THE INDEBTEDNESS (IF ANY) LISTED ON EXHIBIT 4.8 ANNEXED HERETO;
> >
> > (II)
INDEBTEDNESS OR CAPITAL LEASES FOR EQUIPMENT, THE
> > ACQUISITION OF WHICH IS PERMITTED UNDER SECTION 4.7(B) HEREOF
>
>
> (C)
THE BORROWERS SHALL NOT PERMIT MORE THAN 25% OF THAT PORTION OF THE
> AGGREGATE OF THEIR INDEBTEDNESS FOR THE PURCHASE OF GOODS OR SERVICES WHICH IS
> NOT THE SUBJECT OF A GOOD FAITH DISPUTE TO REMAIN UNPAID MORE THAN 30 DAYS
> BEYOND THEN CURRENT TRADE TERMS PROVIDED TO THE SUBJECT BORROWER BY THE
> SUPPLIER OF SUCH GOODS AND SERVICES.
4.9
INSURANCE.
> (A)
EXHIBIT 4.9 IS A SCHEDULE LISTING ALL COMMERCIAL INSURANCE POLICIES
> OWNED BY THE BORROWERS OR UNDER WHICH THE BORROWERS ARE THE NAMED INSURED.
> EACH OF SUCH POLICIES IS IN FULL FORCE AND EFFECT.
NEITHER THE ISSUER OF ANY
> SUCH POLICY NOR THE BORROWERS ARE IN DEFAULT OR VIOLATION OF ANY SUCH POLICY.
>
>
> (B)
THE BORROWERS SHALL HAVE AND MAINTAIN AT ALL TIMES INSURANCE COVERING
> SUCH RISKS, IN SUCH AMOUNTS, CONTAINING SUCH TERMS, IN SUCH FORM, FOR SUCH
> PERIODS, AND WRITTEN BY SUCH COMPANIES AS MAY BE REASONABLY SATISFACTORY TO
> THE AGENT.
>
>
> (C)
ALL INSURANCE CARRIED BY THE BORROWERS SHALL PROVIDE FOR A MINIMUM OF
> TEN (10) DAYS' WRITTEN NOTICE OF CANCELLATION TO THE AGENT AND ALL SUCH
> INSURANCE WHICH COVERS THE COLLATERAL SHALL INCLUDE AN ENDORSEMENT IN FAVOR OF
> THE AGENT, WHICH ENDORSEMENT SHALL PROVIDE THAT THE INSURANCE, TO THE EXTENT
> OF THE AGENT'S INTEREST THEREIN, SHALL NOT BE IMPAIRED OR INVALIDATED, IN
> WHOLE OR IN PART, BY REASON OF ANY ACT OR NEGLECT OF THE BORROWERS OR BY THE
> FAILURE OF THE BORROWERS TO COMPLY WITH ANY WARRANTY OR CONDITION OF THE
> POLICY.
>
>
> (D)
THE COVERAGE REFLECTED ON EXHIBIT 4.9 PRESENTLY SATISFIES THE FOREGOING
> REQUIREMENTS, IT BEING RECOGNIZED BY THE BORROWERS, HOWEVER, THAT SUCH
> REQUIREMENTS MAY CHANGE HEREAFTER TO REFLECT CHANGING CIRCUMSTANCES.
>
>
> (E)
THE BORROWERS SHALL FURNISH THE AGENT FROM TIME TO TIME WITH
> CERTIFICATES OR OTHER EVIDENCE SATISFACTORY TO THE AGENT REGARDING COMPLIANCE
> BY THE BORROWERS WITH THE FOREGOING REQUIREMENTS.
>
>
> (F)
IN THE EVENT OF THE FAILURE BY THE BORROWERS TO MAINTAIN INSURANCE AS
> REQUIRED HEREIN, THE AGENT, AT ITS OPTION, MAY OBTAIN SUCH INSURANCE,
> PROVIDED, HOWEVER, THE AGENT'S OBTAINING OF SUCH INSURANCE SHALL NOT
> CONSTITUTE