REASONABLE DETAIL ANY SUCH LOSS OR DAMAGE IN EXCESS OF $250,000 TO
ANY EQUIPMENT.
(D)
TAXES, ETC.
EACH GRANTOR AGREES TO PAY
PROMPTLY WHEN DUE ALL PROPERTY AND OTHER TAXES, ASSESSMENTS AND GOVERNMENTAL
CHARGES OR LEVIES IMPOSED UPON, AND ALL CLAIMS (INCLUDING CLAIMS FOR LABOR,
MATERIALS AND SUPPLIES) AGAINST, THE EQUIPMENT AND INVENTORY, EXCEPT TO THE
EXTENT THE VALIDITY THEREOF IS BEING CONTESTED IN GOOD FAITH BY PROPER
PROCEEDINGS WHICH STAY THE IMPOSITION OF ANY PENALTY, FINE OR LIEN RESULTING
FROM THE NON-PAYMENT THEREOF AND WITH RESPECT TO WHICH ADEQUATE RESERVES IN
ACCORDANCE WITH GAAP HAVE BEEN SET ASIDE FOR THE PAYMENT THEREOF.
(E)
INSURANCE.
(I)
EACH GRANTOR WILL, AT ITS OWN EXPENSE,
MAINTAIN INSURANCE (INCLUDING, WITHOUT LIMITATION, COMMERCIAL GENERAL LIABILITY
AND PROPERTY INSURANCE) WITH RESPECT TO THE EQUIPMENT AND INVENTORY IN SUCH
AMOUNTS, AGAINST SUCH RISKS, IN SUCH FORM AND WITH RESPONSIBLE AND REPUTABLE
INSURANCE COMPANIES OR ASSOCIATIONS AS IS REQUIRED BY ANY GOVERNMENTAL AUTHORITY
HAVING JURISDICTION WITH RESPECT THERETO OR AS IS CARRIED GENERALLY IN
ACCORDANCE WITH SOUND BUSINESS PRACTICE BY COMPANIES IN SIMILAR BUSINESSES
SIMILARLY SITUATED AND IN ANY EVENT, IN AMOUNT, ADEQUACY AND SCOPE REASONABLY
SATISFACTORY TO THE COLLATERAL AGENT.
EACH SUCH POLICY FOR LIABILITY INSURANCE
SHALL PROVIDE FOR ALL LOSSES TO BE PAID ON BEHALF OF THE COLLATERAL AGENT AND
SUCH GRANTOR AS THEIR RESPECTIVE INTERESTS MAY APPEAR, AND EACH POLICY FOR
PROPERTY DAMAGE INSURANCE SHALL PROVIDE FOR ALL LOSSES TO BE ADJUSTED WITH, AND
PAID DIRECTLY TO, THE COLLATERAL AGENT.
EACH SUCH POLICY SHALL IN ADDITION (A)
NAME THE COLLATERAL AGENT AS AN ADDITIONAL INSURED PARTY THEREUNDER (WITHOUT ANY
REPRESENTATION OR WARRANTY BY OR OBLIGATION UPON THE COLLATERAL AGENT) AS THEIR
INTERESTS MAY APPEAR, (B) CONTAIN AN AGREEMENT BY THE INSURER THAT ANY LOSS
THEREUNDER SHALL BE PAYABLE TO THE COLLATERAL AGENT ON ITS OWN ACCOUNT DURING
THE CONTINUANCE OF AN EVENT OF DEFAULT, NOTWITHSTANDING ANY ACTION, INACTION OR
BREACH OF REPRESENTATION OR WARRANTY BY SUCH GRANTOR, (C) PROVIDE THAT THERE
SHALL BE NO RECOURSE AGAINST
10
THE COLLATERAL AGENT FOR PAYMENT OF PREMIUMS OR OTHER AMOUNTS WITH RESPECT
THERETO, AND (D) PROVIDE THAT AT LEAST 30 DAYS' PRIOR WRITTEN NOTICE OF
CANCELLATION, LAPSE, EXPIRATION OR OTHER ADVERSE CHANGE SHALL BE GIVEN TO THE
COLLATERAL AGENT BY THE INSURER.
SUCH GRANTOR WILL, IF SO REQUESTED BY THE
COLLATERAL AGENT, DELIVER TO THE COLLATERAL AGENT ORIGINAL OR DUPLICATE POLICIES
OF SUCH INSURANCE AND, AS OFTEN AS THE COLLATERAL AGENT MAY REASONABLY REQUEST,
A REPORT OF A REPUTABLE INSURANCE BROKER WITH RESPECT TO SUCH INSURANCE.
SUCH
GRANTOR WILL ALSO, AT THE REQUEST OF THE COLLATERAL AGENT, EXECUTE AND DELIVER
INSTRUMENTS OF ASSIGNMENT OF SUCH INSURANCE POLICIES AND CAUSE THE RESPECTIVE
INSURERS TO ACKNOWLEDGE NOTICE OF SUCH ASSIGNMENT.
(II)
REIMBURSEMENT UNDER ANY LIABILITY
INSURANCE MAINTAINED BY A GRANTOR PURSUANT TO THIS SECTION 5(E) MAY BE PAID
DIRECTLY TO THE PERSON WHO SHALL HAVE INCURRED LIABILITY COVERED BY SUCH
INSURANCE.
IN THE CASE OF ANY LOSS INVOLVING DAMAGE TO EQUIPMENT OR INVENTORY,
ANY PROCEEDS OF INSURANCE MAINTAINED