Common use of Additional Covenants of Borrower Clause in Contracts

Additional Covenants of Borrower. Borrower covenants and agrees with Lender as follows: A. To maintain adequate insurance with responsible companies in such amounts and against such risks and hazards as are normally insured against by similar businesses; to pay before penalties attach all taxes, assessments, fees and similar charges lawfully assessed upon Borrower and/or the Property, except to the extent being contested in good faith; to preserve its corporate existence in good standing and continue to conduct and operate its business substantially as presently conducted in accordance with all applicable laws and regulations; to pay its indebtedness and obligations when due under normal terms; to maintain proper books of record and account; and to furnish to Lender and allow Lender to review such information and books and records as Lender may reasonably request. B. To furnish to Lender within ninety (90) days after the close of each fiscal year, audited financial statements as of the close of such year, containing a balance sheet and statements of income, retained earnings and cash flows for such year, prepared in accordance with generally accepted accounting principles and certified by independent certified public accountants. C. To furnish to Lender, within forty-five (45) days after the close of each quarter of each fiscal year, detailed financial statements as of the close of such fiscal period, containing a balance sheet and statements of income, retained earnings and cash flows for such period and for the portion of its year ending with such period, prepared in accordance with generally accepted accounting principles and containing the written statement of the chief financial officer of Borrower that to the best of his knowledge and belief, the financial statements are accurate and complete and have been prepared in accordance with generally accepted accounting principles and the requirements of the Securities and Exchange Commission. D. To furnish to Lender, within forty-five (45) days after the close of each quarter of each fiscal year, all quarterly financial statements submitted to the Securities and Exchange Commission. E. That Borrower shall use its best efforts to hire and retain residents of the City of Detroit whose qualifications meet applicable job requirements, consistent with current hiring practices. F. To keep Lender periodically apprised of the progress of ▇▇. ▇▇▇▇▇'▇ suit against Borrower, and of the progress of the two pending Miraphen product liability suits against Borrower, including, but not limited to, outcomes at all levels of the litigation, and to inform Lender in the event any other material actions are instituted against Borrower, a "material action" being one in which a judgment in excess of $1,000,000 could be entered against Borrower.

Additional Covenants of Borrower. Borrower covenants and agrees with Lender as follows: A. To maintain adequate insurance with responsible companies in such amounts and against such risks and hazards as are normally insured against by similar businesses; to pay before penalties attach all taxes, assessments, fees and similar charges lawfully assessed upon Borrower and/or the Property, except to the extent being contested in good faith; to preserve its corporate existence in good standing and continue to conduct and operate its business substantially as presently conducted in accordance with all applicable laws and regulations; to pay its indebtedness and obligations when due under normal terms; to maintain proper books of record and account; and to furnish to Lender and allow Lender to review such information and books and records as Lender may reasonably request. B. To furnish to Lender within ninety (90) days after the close of each fiscal year, audited financial statements as of the close of such year, containing a balance sheet and statements of income, retained earnings and cash flows for such year, prepared in accordance with generally accepted accounting principles and certified by independent certified public accountants. C. To furnish to Lender, within forty-five (45) days after the close of each quarter of each fiscal year, detailed financial statements as of the close of such fiscal period, containing a balance sheet and statements of income, retained earnings and cash flows for such period and for the portion of its year ending with such period, prepared in accordance with generally accepted accounting principles and containing the written statement of the chief financial officer of Borrower that to the best of his knowledge and belief, the financial statements are accurate and complete and have been prepared in accordance with generally accepted accounting principles and the requirements of the Securities and Exchange Commission. D. To furnish to Lender, within forty-five (45) days after the close of each quarter of each fiscal year, all quarterly financial statements submitted to the Securities and Exchange Commission. E. That Borrower shall use its best efforts to hire and retain residents of the City of Detroit whose qualifications meet applicable job requirements, consistent with current hiring practices. F. To keep Lender periodically apprised of the progress of ▇▇. ▇▇▇▇▇'▇ suit against Borrower, and of the progress of the two pending Miraphen product liability suits against Borrower, including, but not limited to, outcomes at all levels of the litigation, and to inform Lender in the event any other material actions are instituted against Borrower, a "material action" being one in which a judgment in excess of $1,000,000 could be entered against Borrower.

Additional Covenants of Borrower. Borrower covenants and agrees with Lender as follows: A. To maintain adequate insurance with responsible companies in such amounts and against such risks and hazards as are normally insured against by similar businesses; to pay before penalties attach all taxes, assessments, fees and similar charges lawfully assessed upon Borrower and/or the Property, except to the extent being contested in good faith; to preserve its corporate existence in good standing and continue to conduct and operate its business substantially as presently conducted in accordance with all applicable laws and regulations; to pay its indebtedness and obligations when due under normal terms; to maintain proper books of record and account; and to furnish to Lender and allow Lender to review such information and books and records as Lender may reasonably request. B. To furnish to Lender within ninety (90) 90 days after the close of each fiscal year, audited financial statements as of the close of such year, containing a balance sheet and statements of income, retained earnings and cash flows for such year, prepared in accordance with generally accepted accounting principles and certified by independent certified public accountants. C. To furnish to Lender, ,within forty-five (45) 45 days after the close of each quarter of each fiscal year, detailed financial statements as of the close of such fiscal period, containing a balance sheet and statements of income, retained earnings and cash flows for such period and for the portion of its year ending with such period, prepared in accordance with generally accepted accounting principles and containing the written statement of the chief financial officer of Borrower that to the best of his knowledge and belief, the financial statements are accurate and complete and have been prepared in accordance with generally accepted accounting principles and the requirements of the Securities and Exchange Commission. D. To furnish forward to Lender, within forty-five (45) days after Lender by the close 20th day of each quarter of each fiscal year, all quarterly financial statements submitted to month a cash flow projection for the Securities current month and Exchange Commissionthe next succeeding two months detailed by major receipts and disbursements. E. That during the Deferral Period, Borrower's capital expenditures shall not exceed $2,000,000 in the aggregate without the prior written consent of Lender. F. That Borrower shall not (i) redeem any of its outstanding shares, (ii) pay any dividend with respect to any of its outstanding shares during the Deferral Period, (iii) merge or consolidate with any other corporation or other entity, or (iv) pay any bonus or severance in excess of one (1) month's salary (except as previously disclosed in writing to and approved by Lender) to any employee, officer or director of Borrower, without the prior written consent of Lender. G. That contemporaneously with the closing of the transaction between Borrower and Sun, Borrower will execute and deliver a Subordination Agreement in form and substance reasonably satisfactory to Lender subordinating any and all prior security interests in the Property to Lender's security interests in the Property. In addition, Borrower agrees to grant to Lender a first security interest in the Products (as defined in the Products Agreement dated April 23, 1997 between Borrower and Sun) and any intellectual property, intangibles, licenses, permits or other personal property necessary or desirable for the sale of the Products, pursuant to the terms and conditions of a security agreement satisfactory to Lender. H. That Borrower shall use its best efforts to hire and retain residents of the City of Detroit whose qualifications meet applicable job requirements, consistent with current hiring practices. F. To keep Lender periodically apprised I. That Borrower shall fulfill all of its obligations under the progress of ▇▇. ▇▇▇▇▇'▇ suit against BorrowerStock Purchase Agreement (the "Stock Purchase Agreement") and Products Agreement (the "Products Agreement") between Borrower and Sun, and of the progress of the two pending Miraphen product liability suits against Borrowereach dated April 23, including, but not limited to, outcomes at all levels of the litigation, and to inform Lender in the event any other material actions are instituted against Borrower, a "material action" being one in which a judgment in excess of $1,000,000 could be entered against Borrower1997.