CUSTOMARY PRACTICES OF BORROWER, AS THEY EXIST AT THE
TIME OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT.
BORROWER SHALL PROMPTLY
NOTIFY BANK OF ALL RETURNS AND RECOVERIES AND OF ALL DISPUTES AND CLAIMS, WHERE
THE RETURN, RECOVERY, DISPUTE OR CLAIM INVOLVES MORE THAN FIFTY THOUSAND DOLLARS
($50,000).
6.5
TAXES.
BORROWER SHALL MAKE, AND SHALL CAUSE EACH SUBSIDIARY TO
MAKE, DUE AND TIMELY PAYMENT OR DEPOSIT OF ALL MATERIAL FEDERAL, STATE, AND
LOCAL TAXES, ASSESSMENTS, OR CONTRIBUTIONS REQUIRED OF IT BY LAW, AND WILL
EXECUTE AND DELIVER TO BANK, ON DEMAND, APPROPRIATE CERTIFICATES ATTESTING TO
THE PAYMENT OR DEPOSIT THEREOF; AND BORROWER WILL MAKE, AND WILL CAUSE EACH
SUBSIDIARY TO MAKE, TIMELY PAYMENT OR DEPOSIT OF ALL MATERIAL TAX PAYMENTS AND
WITHHOLDING TAXES REQUIRED OF IT BY APPLICABLE LAWS, INCLUDING, BUT NOT LIMITED
TO, THOSE LAWS CONCERNING F.I.C.A., F.U.T.A., STATE DISABILITY, AND LOCAL,
STATE, AND FEDERAL INCOME TAXES, AND WILL, UPON REQUEST, FURNISH BANK WITH PROOF
REASONABLE SATISFACTORY TO BANK INDICATING THAT BORROWER OR A SUBSIDIARY HAS
MADE SUCH PAYMENTS OR DEPOSITS; PROVIDED THAT BORROWER OR A SUBSIDIARY NEED NOT
MAKE ANY PAYMENT IF THE AMOUNT OR VALIDITY OF SUCH PAYMENT IS CONTESTED IN GOOD
FAITH BY APPROPRIATE PROCEEDINGS AND IS RESERVED AGAINST (TO THE EXTENT REQUIRED
BY GAAP) BY BORROWER.
6.6
INSURANCE.
(A)
BORROWER, AT ITS EXPENSE, SHALL KEEP THE COLLATERAL INSURED
AGAINST LOSS OR DAMAGE BY FIRE, THEFT, EXPLOSION, SPRINKLERS, AND ALL OTHER
HAZARDS AND RISKS, AND IN SUCH AMOUNTS, AS ORDINARILY INSURED AGAINST BY OTHER
OWNERS IN SIMILAR BUSINESSES CONDUCTED IN THE LOCATIONS WHERE BORROWER'S
BUSINESS IS
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CONDUCTED ON THE DATE HEREOF.
BORROWER SHALL ALSO MAINTAIN INSURANCE RELATING
TO BORROWER'S BUSINESS, OWNERSHIP AND USE OF THE COLLATERAL IN AMOUNTS AND OF A
TYPE THAT ARE CUSTOMARY TO BUSINESSES SIMILAR TO BORROWER'S.
(B)
ALL SUCH POLICIES OF INSURANCE SHALL BE IN SUCH FORM, WITH SUCH
COMPANIES, AND IN SUCH AMOUNTS AS REASONABLY SATISFACTORY TO BANK.
ALL SUCH
POLICIES OF PROPERTY INSURANCE SHALL CONTAIN A LENDER'S LOSS PAYABLE
ENDORSEMENT, IN A FORM REASONABLY SATISFACTORY TO BANK, SHOWING BANK AS AN
ADDITIONAL LOSS PAYEE THEREOF, AND ALL LIABILITY INSURANCE POLICIES SHALL SHOW
THE BANK AS AN ADDITIONAL INSURED AND SHALL SPECIFY THAT THE INSURER MUST GIVE
AT LEAST TWENTY (20) DAYS NOTICE TO BANK BEFORE CANCELING ITS POLICY FOR ANY
REASON.
UPON BANK'S REQUEST, BORROWER SHALL DELIVER TO BANK CERTIFIED COPIES OF
SUCH POLICIES OF INSURANCE AND EVIDENCE OF THE PAYMENTS OF ALL PREMIUMS
THEREFOR.
ALL PROCEEDS PAYABLE UNDER ANY SUCH POLICY SHALL, AT THE OPTION OF
BANK, BE PAYABLE TO BANK TO BE APPLIED ON ACCOUNT OF THE OBLIGATIONS.
6.7
ACCOUNTS.
BORROWER SHALL MAINTAIN AND SHALL CAUSE EACH OF ITS
SUBSIDIARIES TO MAINTAIN ITS PRIMARY DEPOSITORY, OPERATING, AND INVESTMENT
ACCOUNTS WITH BANK AND/OR COMERICA SECURITIES, INC.
AT LEAST THE GREATER OF (I)
50% OF BORROWER'S CASH AND CASH EQUIVALENTS OR (II) $7,500,000 SHALL BE
MAINTAINED IN OPERATING, DEPOSITORY OR INVESTMENT ACCOUNTS AT BANK OR COMERICA
SECURITIES, INC. AT ALL TIMES.
BORROWER WILL EXECUTE ACCOUNT CONTROL AGREEMENTS
WITH