OR PROCEDURE OBSERVED
OR OBSERVABLE IN THE COURSE OF AN INSPECTION HEREUNDER SHALL NOT BE DEEMED TO
WAIVE OR MODIFY ANY OF THE TERMS OF THIS LOAN AGREEMENT WITH RESPECT TO SUCH
CONDITION OR PROCEDURE.
(F)
LOCATION.
ON OR BEFORE THE CLOSING DATE,
BORROWER SHALL DELIVER TO ADMINISTRATIVE AGENT INFORMATION REGARDING THE BASE
LOCATION OF EACH RIG THAT COMPRISES THE COLLATERAL.
IN NO EVENT SHALL BORROWER
CAUSE OR PERMIT ANY COLLATERAL TO BE REMOVED FROM THE UNITED STATES WITHOUT THE
EXPRESS PRIOR WRITTEN CONSENT OF ADMINISTRATIVE AGENT.
BORROWER SHALL MAINTAIN
A SIGN ON EACH DRILLING RIG CONSTITUTING COLLATERAL, WHICH SIGN SHALL
(I) INDICATE THAT SUCH DRILLING RIG IS THE PROPERTY OF BORROWER, AND
(II) DISPLAY THE NUMBER THAT HAS BEEN ASSIGNED TO SUCH DRILLING RIG BY
BORROWER.
BORROWER WILL KEEP ITS BOOKS AND RECORDS AT ITS PRINCIPAL OFFICE
ADDRESS SPECIFIED IN THE FIRST PARAGRAPH OF THIS LOAN AGREEMENT.
BORROWER WILL
NOT CHANGE THE ADDRESS WHERE BOOKS AND RECORDS ARE KEPT, ITS ORGANIZATIONAL
NUMBER OR ITS TAXPAYER IDENTIFICATION NUMBER WITHOUT PROVIDING ADMINISTRATIVE
AGENT WITH THIRTY (30) DAYS PRIOR WRITTEN NOTICE.
(G)
INSURANCE.
(I)
COVERAGE.
WITHOUT LIMITING ANY OF THE
OTHER OBLIGATIONS OR LIABILITIES OF BORROWER UNDER THE LOAN DOCUMENTS, BORROWER
SHALL, DURING THE TERM OF THIS LOAN AGREEMENT, CARRY AND MAINTAIN, WITH RESPECT
TO COLLATERAL LISTED HEREUNDER, AT ITS OWN EXPENSE, AT LEAST THE MINIMUM
INSURANCE COVERAGE AS STATED
30
BELOW, WITH INSURERS HAVING A MINIMUM A.M. BEST RATING OF "A- VII", AND BE IN
SUCH FORM, WITH TERMS, CONDITIONS, LIMITS AND DEDUCTIBLES AS SHALL BE REASONABLY
ACCEPTABLE TO ADMINISTRATIVE AGENT.
BORROWER SHALL ALSO CARRY AND MAINTAIN ANY
OTHER INSURANCE THAT ADMINISTRATIVE AGENT MAY REASONABLY REQUIRE FROM TIME TO
TIME.
(A)
ALL RISK OR SPECIAL FORM PROPERTY INSURANCE,
INSURING THE COLLATERAL AGAINST PHYSICAL LOSS OR DAMAGE FROM PERILS INCLUDING
BUT NOT LIMITED TO FIRE AND EXTENDED COVERAGE, WINDSTORM, COLLAPSE, FLOOD, AND
EARTH MOVEMENT.
COVERAGE SHALL BE WRITTEN IN THE GREATER OF THE THEN CURRENT
OBLIGATIONS OR REPLACEMENT COST VALUE IN AN AMOUNT REASONABLY ACCEPTABLE TO
ADMINISTRATIVE AGENT.
SUCH INSURANCE POLICY SHALL CONTAIN AN ENDORSEMENT
WAIVING ANY COINSURANCE REQUIREMENT AND CONTAINING DEDUCTIBLES IN AMOUNTS
CONSISTENT WITH INDUSTRY STANDARDS, BUT IN NO EVENT GREATER THAN $250,000.
(B)
COMMERCIAL GENERAL LIABILITY INSURANCE
INCLUDING BUT NOT LIMITED TO POLLUTION LIABILITY (WHICH MAY BE PROVIDED UNDER A
SEPARATE POLICY), PRODUCTS/COMPLETED OPERATIONS, BLANKET CONTRACTUAL LIABILITY,
ENVIRONMENTAL LIABILITY, PREMISES/OPERATIONS, INDEPENDENT CONTRACTORS, PERSONAL
INJURY, FIRE LEGAL LIABILITY, LOSS OF USE, AND EMPLOYEE BENEFITS LIABILITY WITH
EACH WRITTEN ON AN OCCURRENCE BASIS (EXCEPT EMPLOYEE BENEFITS LIABILITY, WHICH
WILL BE WRITTEN ON A CLAIMS-MADE BASIS) AND WITH A LIMIT OF NOT LESS THAN
$10,000,000 FOR BODILY INJURY AND PROPERTY DAMAGE.
DEDUCTIBLES, IF ANY, SHALL
BE CONSISTENT WITH INDUSTRY STANDARDS.
SUCH INSURANCE SHALL NOT CONTAIN AN
EXCLUSION FOR PUNITIVE OR EXEMPLARY DAMAGES WHERE INSURABLE BY LAW.
(C)
WORKERS' COMPENSATION INSURANCE IN ACCORDANCE
WITH STATUTORY PROVISIONS AND EMPLOYER'S LIABILITY IN AN AMOUNT NOT LESS THAN
$1,000,000.
SUCH COVERAGE SHALL NOT CONTAIN ANY OCCUPATIONAL DISEASE
EXCLUSIONS.
ALL SUCH INSURANCE WILL BE COMPULSORY AND