OF SUCH INSURANCE PROGRAM (NOT TO
EXCEED THAT WHICH IS CUSTOMARY IN THE CASE OF COMPANIES ENGAGED IN THE SAME OR
SIMILAR BUSINESS OR HAVING SIMILAR PROPERTIES SIMILARLY SITUATED) MAY BE
EFFECTED THROUGH SELF-INSURANCE, PROVIDED ADEQUATE RESERVES THEREFOR, IN
ACCORDANCE WITH GAAP, ARE MAINTAINED.
ALL INSURANCE POLICIES OR CERTIFICATES
(OR CERTIFIED COPIES THEREOF) WITH RESPECT TO SUCH INSURANCE (A) SHALL, SUBJECT
TO THE TERMS OF THE INTERCREDITOR AGREEMENT, BE ENDORSED TO THE COLLATERAL
AGENT'S REASONABLE SATISFACTION FOR THE BENEFIT OF THE LENDERS (INCLUDING BY
NAMING THE COLLATERAL AGENT AS LOSS PAYEE OR ADDITIONAL INSURED, AS
APPROPRIATE); AND (B) SHALL STATE THAT SUCH INSURANCE POLICY SHALL NOT BE
CANCELED WITHOUT 30 DAYS' PRIOR WRITTEN NOTICE THEREOF (OR, IN CONNECTION WITH
ANY CANCELATION RESULTING FROM THE NON-PAYMENT OF PREMIUMS, 10 DAYS' PRIOR
WRITTEN NOTICE THEREOF).
THE PARENT BORROWER SHALL PROMPTLY NOTIFY THE
ADMINISTRATIVE AGENT OF ANY MATERIAL CHANGE OR REVISION, OR NOTICE OF EXPIRATION
OR NON-RENEWAL, WITH RESPECT TO ANY SUCH INSURANCE POLICY.
THE PARENT BORROWER
SHALL FURNISH TO THE ADMINISTRATIVE AGENT, ON THE EFFECTIVE DATE AND ON THE DATE
OF DELIVERY OF EACH ANNUAL FINANCIAL STATEMENT, FULL INFORMATION AS TO THE
INSURANCE CARRIED.
AT ANY TIME THAT INSURANCE AT LEVELS DESCRIBED IN
SCHEDULE 5.07 IS NOT BEING MAINTAINED BY OR ON BEHALF OF THE PARENT BORROWER OR
ANY OF THE SUBSIDIARIES, THE PARENT BORROWER WILL NOTIFY THE LENDERS IN WRITING
WITHIN TWO BUSINESS DAYS THEREOF AND, IF THEREAFTER
107
NOTIFIED BY THE ADMINISTRATIVE AGENT OR THE REQUIRED LENDERS TO DO SO, THE
PARENT BORROWER OR ANY SUCH SUBSIDIARY, AS THE CASE MAY BE, SHALL OBTAIN
INSURANCE AT SUCH LEVELS AT LEAST EQUAL TO THOSE SET FORTH ON SCHEDULE 5.07,
PROVIDED THAT SUCH INSURANCE CAN BE OBTAINED AT COMMERCIALLY REASONABLE RATES.
SECTION 5.08.
CASUALTY AND CONDEMNATION.
(A)
THE PARENT BORROWER WILL FURNISH
TO THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT AND THE LENDERS PROMPT WRITTEN
NOTICE OF ANY CASUALTY OR OTHER INSURED DAMAGE TO ANY PORTION OF ANY COLLATERAL
OR THE COMMENCEMENT OF ANY ACTION OR PROCEEDING FOR THE TAKING OF ANY COLLATERAL
OR ANY PART THEREOF OR INTEREST THEREIN UNDER POWER OF EMINENT DOMAIN OR BY
CONDEMNATION OR SIMILAR PROCEEDING, WHERE THE FAIR MARKET VALUE OF THE
COLLATERAL SO AFFECTED IN CONNECTION WITH ANY SUCH CASUALTY EVENT OR
CONDEMNATION IS AT LEAST $1,000,000.
(B)
IF ANY EVENT DESCRIBED IN PARAGRAPH (A) OF THIS SECTION RESULTS IN NET
PROCEEDS (WHETHER IN THE FORM OF INSURANCE PROCEEDS, CONDEMNATION AWARD OR
OTHERWISE), THE COLLATERAL AGENT IS AUTHORIZED TO COLLECT SUCH NET PROCEEDS AND,
IF RECEIVED BY THE PARENT BORROWER OR ANY SUBSIDIARY, SUCH NET PROCEEDS SHALL BE
PAID OVER TO THE COLLATERAL AGENT; PROVIDED THAT (I) IF THE AGGREGATE NET
PROCEEDS IN RESPECT OF SUCH EVENT (OTHER THAN PROCEEDS OF BUSINESS INTERRUPTION
INSURANCE) ARE LESS THAN $5,000,000, SUCH NET PROCEEDS SHALL BE PAID OVER TO THE
PARENT BORROWER UNLESS A DEFAULT HAS OCCURRED AND IS CONTINUING, (II) ALL
PROCEEDS OF BUSINESS INTERRUPTION INSURANCE SHALL BE PAID OVER TO THE PARENT
BORROWER UNLESS A DEFAULT