THE APPLICABLE
POLICIES.
UPON DEMAND BY AGENT ANY INSURANCE POLICIES COVERING ANY SUCH
PROPERTY SHALL BE ENDORSED (I) TO PROVIDE THAT SUCH POLICIES MAY NOT BE
CANCELLED, REDUCED OR AFFECTED IN ANY MANNER FOR ANY REASON WITHOUT FIFTEEN (15)
DAYS PRIOR NOTICE TO AGENT, (II) TO PROVIDE FOR INSURANCE AGAINST FIRE, CASUALTY
AND OTHER HAZARDS NORMALLY INSURED AGAINST, IN AMOUNTS CUSTOMARY IN THE INDUSTRY
FOR SIMILARLY SITUATED BUSINESS AND PROPERTIES, AND (III) TO PROVIDE FOR SUCH
OTHER MATTERS AS THE BANKS MAY REASONABLY REQUIRE.
BORROWER AND GUARANTOR SHALL
AT ALL TIMES MAINTAIN INSURANCE IN AMOUNTS CUSTOMARY IN THE INDUSTRY FOR
SIMILARLY SITUATED BUSINESS AND PROPERTIES WITH RESPECT TO THE COLLATERAL
AGAINST THEIR LIABILITY FOR INJURY TO PERSONS OR PROPERTY, WHICH INSURANCE SHALL
BE BY FINANCIALLY SOUND AND REPUTABLE INSURERS AND SHALL WITHOUT LIMITATION
PROVIDE THE FOLLOWING COVERAGES:
COMPREHENSIVE GENERAL LIABILITY (INCLUDING
COVERAGE FOR DAMAGE TO UNDERGROUND RESOURCES AND EQUIPMENT, DAMAGE CAUSED BY
BLOWOUTS OR CRATERING, DAMAGE CAUSED BY EXPLOSION, DAMAGE TO UNDERGROUND
MINERALS OR RESOURCES CAUSED BY SALINE SUBSTANCES, BROAD FORM PROPERTY DAMAGE
COVERAGE, BROAD FORM COVERAGE FOR CONTRACTUALLY ASSUMED LIABILITIES AND BROAD
FORM COVERAGE FOR ACTS OF INDEPENDENT CONTRACTORS), WORKER'S COMPENSATION AND
AUTOMOBILE LIABILITY.
BORROWER AND GUARANTOR SHALL AT ALL TIMES MAINTAIN
INSURANCE WITH RESPECT TO THE COLLATERAL WHICH SHALL INSURE BORROWER AND
GUARANTOR AGAINST SEEPAGE AND POLLUTION EXPENSE IF DEEMED ECONOMICAL IN THE
REASONABLE DISCRETION OF BORROWER AND GUARANTOR.
ADDITIONALLY, BORROWER SHALL
AT ALL TIMES MAINTAIN ADEQUATE INSURANCE WITH RESPECT TO ALL OF THEIR OTHER
ASSETS AND WELLS IN ACCORDANCE WITH PRUDENT BUSINESS PRACTICES.
(H)
ACCOUNTS AND RECORDS.
BORROWER AND GUARANTOR WILL KEEP BOOKS,
RECORDS AND ACCOUNTS IN WHICH FULL, TRUE AND CORRECT ENTRIES WILL BE MADE OF ALL
DEALINGS OR TRANSACTIONS IN RELATION TO THEIR BUSINESS AND ACTIVITIES.
(I)
RIGHT OF INSPECTION.
BORROWER AND GUARANTOR WILL PERMIT ANY
OFFICER, EMPLOYEE OR AGENT OF THE BANKS TO EXAMINE BORROWER'S OR GUARANTOR'S
BOOKS, RECORDS AND ACCOUNTS, AND TAKE COPIES AND EXTRACTS THEREFROM, ALL AT SUCH
REASONABLE TIMES AND AS OFTEN AS THE BANKS MAY REASONABLY REQUEST.
BANKS WILL
USE THEIR BEST EFFORTS TO KEEP ALL SUCH INFORMATION CONFIDENTIAL AND WILL NOT
WITHOUT PRIOR WRITTEN CONSENT DISCLOSE OR REVEAL THE INFORMATION OR ANY PART
THEREOF TO ANY PERSON OTHER THAN THE BANKS' OFFICERS, EMPLOYEES, LEGAL COUNSEL,
REGULATORY AUTHORITIES OR ADVISORS TO WHOM IT IS NECESSARY TO REVEAL SUCH
INFORMATION FOR THE PURPOSE OF EFFECTUATING THE AGREEMENTS AND UNDERTAKINGS
SPECIFIED HEREIN.
(J)
NOTICE OF CERTAIN EVENTS.
BORROWER AND GUARANTOR SHALL PROMPTLY
NOTIFY THE BANKS IF BORROWER OR GUARANTOR LEARNS OF THE OCCURRENCE OF (I) ANY
EVENT WHICH CONSTITUTES, OR WITH THE PASSAGE OF TIME WOULD CONSTITUTE, AN EVENT
OF DEFAULT, TOGETHER WITH A DETAILED STATEMENT BY BORROWER OF THE STEPS BEING
TAKEN TO CURE THE EVENT OF DEFAULT; OR (II) ANY LEGAL, JUDICIAL OR REGULATORY
PROCEEDINGS AFFECTING BORROWER, OR ANY OF THE ASSETS OR PROPERTIES OF BORROWER
WHICH, IF ADVERSELY DETERMINED, COULD REASONABLY BE EXPECTED TO HAVE A MATERIAL
ADVERSE EFFECT; OR (III) ANY DISPUTE BETWEEN BORROWER OR
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GUARANTOR