ITS PROPERTIES, IN SUCH AMOUNTS AND
AGAINST SUCH RISKS AS IS CUSTOMARILY MAINTAINED BY SIMILAR BUSINESSES OPERATING
IN THE SAME VICINITY, SPECIFICALLY TO INCLUDE FIRE AND EXTENDED COVERAGE
INSURANCE COVERING ALL ASSETS, BUSINESS INTERRUPTION INSURANCE, WORKERS
COMPENSATION INSURANCE AND LIABILITY INSURANCE, ALL TO BE WITH SUCH COMPANIES
AND IN SUCH AMOUNTS AS ARE SATISFACTORY TO THE LENDER FROM TIME TO TIME.
SATISFACTORY EVIDENCE OF SUCH INSURANCE WILL BE SUPPLIED TO THE LENDER PRIOR TO
THE INITIAL FUNDING UNDER THIS AGREEMENT AND NO LATER THAN THIRTY (30) DAYS
PRIOR TO EACH POLICY RENEWAL.
(B)
INSURANCE ON COLLATERAL.
THE BORROWER WILL (A) MAINTAIN HAZARD
INSURANCE WITH FIRE AND EXTENDED COVERAGE AND NAMING THE LENDER AS AN ADDITIONAL
INSURED WITH LOSS PAYABLE TO THE LENDER AS ITS INTEREST MAY APPEAR ON THE
EQUIPMENT AND INVENTORY IN AN AMOUNT AT LEAST EQUAL TO THE LESSER AMOUNT OF THE
OUTSTANDING PRINCIPAL AMOUNT OF THE OBLIGATIONS OR THE FAIR MARKET VALUE OF THE
EQUIPMENT AND INVENTORY (BUT IN ANY EVENT SUFFICIENT TO AVOID ANY CO-INSURANCE
OBLIGATIONS) AND WITH A SPECIFIC ENDORSEMENT TO EACH SUCH INSURANCE POLICY
PURSUANT TO WHICH THE INSURER AGREES TO GIVE THE LENDER AT LEAST THIRTY (30)
DAYS WRITTEN NOTICE BEFORE ANY ALTERATION OR TERMINATION OF SUCH INSURANCE
POLICY AND THAT NO ACT OR DEFAULT OF THE BORROWER SHALL AFFECT THE RIGHT OF THE
LENDER TO RECOVER UNDER SUCH POLICY IN THE EVENT OF LOSS OR DAMAGE; (B) FILE
WITH THE LENDER, UPON ITS REQUEST, A DETAILED LIST OF THE INSURANCE THEN IN
EFFECT AND STATING THE NAMES OF THE INSURANCE COMPANIES, THE AMOUNTS AND RATES
OF THE INSURANCE, DATES OF THE EXPIRATION THEREOF AND THE PROPERTIES AND RISKS
COVERED THEREBY; AND (C) WITHIN THIRTY (30) DAYS AFTER NOTICE IN WRITING FROM
THE LENDER, OBTAIN SUCH ADDITIONAL INSURANCE AS THE LENDER MAY REASONABLY
REQUEST.
6.1.7
Taxes and Other Obligations.
The Borrower will pay when due all of its taxes, other governmental assessments,
indebtedness for borrowed money, leases, and other obligations, including, but
not limited to, taxes, costs or other expenses arising out of this transaction,
as the same become due and payable, except, with respect to taxes and
governmental assessments, to the extent the same are
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being contested in good faith by appropriate proceedings in a diligent manner,
no Lien has been imposed with respect thereto, and the Lender is satisfied that
the Borrower at all times has the financial ability to pay the disputed taxes
and governmental assessments, with all interest and penalties, without
materially and adversely affecting the Borrower's financial condition.
6.1.8
Hazardous Materials.
The Borrower will not use or permit any other party to use any Hazardous
Materials at any of the Borrower's places of business or at any other property
owned, controlled or operated by the Borrower except such materials as are
incidental to the Borrower's normal course of business, maintenance and repairs
and which are handled in compliance with all applicable Laws.
The Borrower
agrees to permit the Lender, its agents, contractors and employees to enter