RESTRICTED PERSON SHALL AT ALL TIMES
MAINTAIN (AT ITS OWN EXPENSE) INSURANCE FOR ITS PROPERTY AND INSURANCE WITH
RESPECT TO ALL COLLATERAL AND LIABILITY INSURANCE, WITH FINANCIALLY SOUND AND
REPUTABLE INSURANCE COMPANIES, IN SUCH AMOUNTS AND AGAINST SUCH RISKS AS IS
CUSTOMARY IN THE INDUSTRY FOR SIMILARLY SITUATED BUSINESSES AND PROPERTIES.
ALL
INSURANCE POLICIES COVERING COLLATERAL SHALL BE ENDORSED (I) TO PROVIDE FOR
PAYMENT OF LOSSES TO AGENT AS ITS INTERESTS MAY APPEAR AND BORROWER SHALL
DELIVER A CERTIFICATE TO THAT EFFECT, (II) TO PROVIDE THAT SUCH POLICIES MAY NOT
BE CANCELED OR REDUCED OR AFFECTED IN ANY MATERIAL MANNER FOR ANY REASON WITHOUT
TEN (10) DAYS PRIOR NOTICE TO AGENT FROM THE INSURER, (III) TO PROVIDE FOR ANY
OTHER MATTERS SPECIFIED IN ANY APPLICABLE SECURITY DOCUMENT OR WHICH AGENT MAY
REASONABLY REQUIRE; AND (IV) TO PROVIDE FOR INSURANCE AGAINST FIRE, CASUALTY AND
ANY OTHER HAZARDS NORMALLY INSURED AGAINST, (LESS A REASONABLE DEDUCTIBLE NOT TO
EXCEED AMOUNTS CUSTOMARY IN THE INDUSTRY FOR SIMILARLY SITUATED BUSINESSES AND
PROPERTIES) OF THE PROPERTY INSURED.
(B)
EACH SUCH POLICY SHALL (A) IF SUCH POLICY IS
FOR LIABILITY INSURANCE, NAME THE APPROPRIATE RESTRICTED PERSON AND AGENT, AS
AGENT FOR THE LENDERS, AS INSURED PARTIES THEREUNDER (WITHOUT ANY REPRESENTATION
OR WARRANTY BY OR OBLIGATION UPON AGENT OR LENDERS) AS THEIR INTERESTS MAY
APPEAR, (B) IF SUCH POLICY IS FOR PROPERTY INSURANCE, CONTAIN THE AGREEMENT BY
THE INSURER THAT ANY LOSS THEREUNDER SHALL BE PAYABLE TO AGENT NOTWITHSTANDING
ANY ACTION, INACTION OR BREACH OF REPRESENTATION OR WARRANTY BY ANY RESTRICTED
PERSON, AND (C) PROVIDE THAT THERE SHALL BE NO RECOURSE AGAINST AGENT OR LENDERS
FOR PAYMENT OF PREMIUMS OR OTHER AMOUNTS WITH RESPECT THERETO.
EACH RESTRICTED
PERSON WILL, IF SO REQUESTED BY AGENT, DELIVER TO AGENT ORIGINAL OR DUPLICATE
POLICIES OF SUCH INSURANCE.
AGENT IS HEREBY AUTHORIZED TO ENFORCE PAYMENT UNDER
ALL SUCH INSURANCE POLICIES AND TO COMPROMISE AND SETTLE ANY CLAIMS THEREUNDER,
IN ITS OWN NAME OR IN THE NAME OF THE RESTRICTED PERSONS.
(C)
REIMBURSEMENT UNDER ANY LIABILITY INSURANCE
MAINTAINED BY RESTRICTED PERSONS PURSUANT TO THIS SECTION 6.8 MAY BE PAID
DIRECTLY TO THE PERSON WHO HAS INCURRED THE LIABILITY COVERED BY SUCH
INSURANCE.
WITH RESPECT TO ANY LOSS INVOLVING DAMAGE TO COLLATERAL AS TO WHICH
SUBSECTION (D) OF THIS SECTION 6.8 IS NOT APPLICABLE, EACH RESTRICTED PERSON
WILL MAKE OR CAUSE TO BE MADE THE NECESSARY REPAIRS TO OR REPLACEMENTS OF SUCH
COLLATERAL, AND ANY PROCEEDS OF INSURANCE MAINTAINED BY EACH RESTRICTED PERSON
PURSUANT TO THIS SECTION 6.8 SHALL BE PAID TO SUCH RESTRICTED PERSON BY AGENT AS
REIMBURSEMENT FOR THE COSTS OF SUCH REPAIRS OR REPLACEMENTS AS SUCH REPAIRS OR
REPLACEMENTS ARE MADE OR ACQUIRED.
(D)
UPON THE OCCURRENCE AND DURING THE
CONTINUANCE OF AN EVENT OF DEFAULT OR UPON THE OCCURRENCE OF A LOSS OF ANY
COLLATERAL, ALL PROPERTY AND CASUALTY INSURANCE PAYMENTS IN RESPECT OF SUCH
COLLATERAL SHALL BE PAID TO AGENT AND APPLIED AS SPECIFIED IN SECTION 2.7.
SECTION 6.9.
PERFORMANCE ON BORROWER'S
BEHALF.
IF ANY RESTRICTED PERSON FAILS TO