FORTH IN CLAUSES (A) AND (B) ABOVE THAT WOULD NOT, IN THE AGGREGATE,
REASONABLY BE EXPECTED TO HAVE A MATERIAL ADVERSE EFFECT.
SECTION 7.5
MAINTENANCE OF INSURANCE.
EACH GROUP MEMBER SHALL (A)
MAINTAIN OR CAUSE TO BE MAINTAINED IN FULL FORCE AND EFFECT ALL POLICIES OF
INSURANCE WITH RESPECT TO THE PROPERTY AND BUSINESSES OF THE GROUP MEMBERS
(INCLUDING POLICIES OF LIFE, FIRE, THEFT, PRODUCT LIABILITY, PUBLIC LIABILITY,
FLOOD INSURANCE, PROPERTY DAMAGE, OTHER CASUALTY, EMPLOYEE FIDELITY, WORKERS'
COMPENSATION, BUSINESS INTERRUPTION AND EMPLOYEE HEALTH AND WELFARE INSURANCE)
WITH FINANCIALLY SOUND AND REPUTABLE INSURANCE COMPANIES OR ASSOCIATIONS (IN
EACH CASE THAT ARE NOT AFFILIATES OF THE BORROWER) OF A NATURE AND PROVIDING
SUCH COVERAGE AS IS SUFFICIENT AND AS IS CUSTOMARILY CARRIED BY BUSINESSES OF
THE SIZE AND CHARACTER OF THE BUSINESS OF THE GROUP MEMBERS,
AND (B) CAUSE ALL
SUCH INSURANCE RELATING TO ANY PROPERTY OR BUSINESS OF ANY LOAN PARTY TO NAME
THE ADMINISTRATIVE AGENT ON BEHALF OF THE SECURED PARTIES AS ADDITIONAL INSURED
OR LOSS PAYEE, AS APPROPRIATE AND TO PROVIDE THAT INSURER WILL PROVIDE 30 DAYS'
PRIOR NOTICE OF ANY CANCELLATION THEREOF TO THE ADMINISTRATIVE AGENT.
NOTWITHSTANDING THE REQUIREMENT IN SUBSECTION (A) ABOVE, FEDERAL FLOOD INSURANCE
SHALL NOT BE REQUIRED FOR (X) REAL PROPERTY NOT LOCATED IN A SPECIAL FLOOD
HAZARD AREA, OR (Y) REAL PROPERTY LOCATED IN A SPECIAL FLOOD HAZARD AREA IN A
COMMUNITY THAT DOES NOT PARTICIPATE IN THE NATIONAL FLOOD INSURANCE PROGRAM.
SECTION 7.6
KEEPING OF BOOKS.
THE GROUP MEMBERS SHALL KEEP PROPER
CONSOLIDATED BOOKS OF RECORD AND ACCOUNT, IN WHICH FULL, TRUE AND CORRECT
ENTRIES SHALL BE MADE IN ACCORDANCE WITH GAAP AND ALL OTHER APPLICABLE
REQUIREMENTS OF LAW OF ALL MATERIAL FINANCIAL TRANSACTIONS AND THE ASSETS AND
BUSINESS OF THE GROUP MEMBERS.
SECTION 7.7
ACCESS TO BOOKS AND PROPERTY.
EACH LOAN PARTY (AND
DURING THE CONTINUANCE OF A DEFAULT, EACH GROUP MEMBER) SHALL PERMIT THE
ADMINISTRATIVE AGENT AND ITS RELATED PERSONS, AS OFTEN AS REASONABLY REQUESTED,
AT ANY REASONABLE TIME DURING NORMAL BUSINESS
81
HOURS, WITH REASONABLE ADVANCE NOTICE AND WITH THE FOLLOWING RIGHT OF INSPECTION
NOT TO BE EXERCISED MORE FREQUENTLY THAN TWO (2) SEPARATE TIMES DURING ANY
FISCAL YEAR OF HOLDINGS (EXCEPT THAT, DURING THE CONTINUANCE OF AN EVENT OF
DEFAULT, NO SUCH NOTICE SHALL BE REQUIRED AND THE ADMINISTRATIVE AGENT MAY
EXERCISE ALL RIGHTS HEREUNDER (INCLUDING THE RIGHT OF INSPECTION) AT ANY AND ALL
TIMES DURING THE CONTINUANCE THEREOF) TO (A) VISIT AND INSPECT THE PROPERTY OF
EACH LOAN PARTY (AND DURING THE CONTINUANCE OF A DEFAULT, EACH GROUP MEMBER) AND
EXAMINE AND MAKE COPIES OF AND ABSTRACTS FROM, THE CORPORATE (AND SIMILAR),
FINANCIAL, OPERATING AND OTHER BOOKS AND RECORDS OF EACH LOAN PARTY (AND DURING
THE CONTINUANCE OF A DEFAULT, EACH GROUP MEMBER), (B) DISCUSS THE AFFAIRS,
FINANCES AND ACCOUNTS OF EACH LOAN PARTY (AND DURING THE CONTINUANCE OF A
DEFAULT, EACH GROUP MEMBER) WITH ANY OFFICER OR DIRECTOR OF ANY LOAN PARTY (AND
DURING THE CONTINUANCE OF A DEFAULT, ANY GROUP MEMBER), (C) COMMUNICATE DIRECTLY
WITH