TAXES AND ASSESSMENTS, EXCEPT (A) SUCH AS BORROWER MAY IN GOOD FAITH
CONTEST OR AS TO WHICH A BONA FIDE DISPUTE MAY ARISE, AND (B) FOR WHICH BORROWER
HAS MADE PROVISION, TO TRADE BANK'S SATISFACTION, FOR EVENTUAL PAYMENT THEREOF
IN THE EVENT THAT BORROWER IS OBLIGATED TO MAKE SUCH PAYMENT.
4.7
INSURANCE. MAINTAIN AND KEEP IN FORCE INSURANCE OF THE TYPES AND
IN AMOUNTS CUSTOMARILY CARRIED IN LINES OF BUSINESS SIMILAR TO THAT OF BORROWER,
INCLUDING, BUT NOT LIMITED TO, FIRE, EXTENDED COVERAGE, PUBLIC LIABILITY, FLOOD,
PROPERTY DAMAGE AND WORKERS' COMPENSATION, WITH ALL SUCH INSURANCE TO BE IN
AMOUNTS SATISFACTORY TO TRADE BANK AND TO BE CARRIED WITH COMPANIES APPROVED BY
TRADE BANK BEFORE SUCH COMPANIES ARE RETAINED, AND DELIVER TO TRADE BANK FROM
TIME TO TIME AT TRADE BANK'S REQUEST SCHEDULES SETTING FORTH ALL INSURANCE THEN
IN EFFECT. ALL INSURANCE POLICIES SHALL NAME TRADE BANK AS AN ADDITIONAL LOSS
PAYEE, AND SHALL CONTAIN A LENDERS LOSS PAYEE ENDORSEMENT IN FORM REASONABLY
ACCEPTABLE TO TRADE BANK. (UPON RECEIPT OF THE PROCEEDS OF ANY SUCH INSURANCE,
TRADE BANK SHALL APPLY SUCH PROCEEDS IN REDUCTION OF THE OUTSTANDING FUNDED
CREDIT EXTENSIONS AND SHALL HOLD ANY REMAINING PROCEEDS AS COLLATERAL FOR THE
OUTSTANDING UNFUNDED CREDIT EXTENSIONS, AS TRADE BANK SHALL DETERMINE IN ITS
REASONABLE DISCRETION, EXCEPT THAT, PROVIDED NO EVENT OF DEFAULT HAS OCCURRED,
TRADE BANK SHALL RELEASE TO BORROWER INSURANCE PROCEEDS WITH RESPECT TO
EQUIPMENT TOTALING LESS THAN $100,000, WHICH SHALL BE UTILIZED BY BORROWER FOR
THE REPLACEMENT OF THE EQUIPMENT WITH RESPECT TO WHICH THE INSURANCE PROCEEDS
WERE PAID, IF TRADE BANK RECEIVES REASONABLE ASSURANCE THAT THE INSURANCE
PROCEEDS SO RELEASED WILL BE SO USED.) IF BORROWER FAILS TO PROVIDE OR PAY FOR
ANY INSURANCE, TRADE BANK MAY, BUT IS NOT OBLIGATED TO, OBTAIN THE INSURANCE AT
BORROWER'S EXPENSE.
4.8
FURTHER ASSURANCES. AT TRADE BANK'S REQUEST AND IN FORM AND
SUBSTANCE SATISFACTORY TO TRADE BANK, EXECUTE ALL DOCUMENTS AND TAKE ALL SUCH
ACTIONS AT BORROWER'S EXPENSE AS TRADE BANK MAY DEEM REASONABLY NECESSARY OR
USEFUL TO PERFECT AND MAINTAIN TRADE BANK'S PERFECTED SECURITY INTEREST IN THE
COLLATERAL AND IN ORDER TO FULLY CONSUMMATE ALL OF THE TRANSACTIONS CONTEMPLATED
BY THE LOAN DOCUMENTS.
5
4.9
THE POLICY.
BORROWER SHALL COMPLY AT ITS OWN EXPENSE WITH ALL
OBLIGATIONS AND COVENANTS BINDING UPON BORROWER UNDER THE POLICY.
BORROWER
SHALL PERMIT TRADE BANK TO COMMUNICATE DIRECTLY WITH THE INSURER WITHOUT FURTHER
PERMISSION OR AUTHORIZATION FROM BORROWER ON ANY ASPECT OR MATTER RELATING TO
THE POLICY, INCLUDING WITHOUT LIMITATION, FILING A CLAIM UNDER THE POLICY, AS
ASSIGNEE.
BORROWER SHALL PAY WHEN DUE ALL PREMIUMS DUE UNDER THE POLICY.
BORROWER WILL NOT REQUEST, AGREE TO OR ACCEPT ANY AMENDMENTS OR MODIFICATIONS TO
THE POLICY WITHOUT TRADE BANK'S PRIOR WRITTEN CONSENT.
V.
NEGATIVE COVENANTS
Borrower covenants that so long as Trade Bank remains committed to make any
Credit Extensions to Borrower and until all Obligations and Credit Extensions
have been paid, Borrower will not:
5.1
MERGE OR CONSOLIDATION, TRANSFER OF ASSETS. MERGE INTO OR
CONSOLIDATE WITH ANY