IN EXCESS
OF PRIMARY LIABILITY COVERAGE.
ALL SUCH INSURANCE POLICIES REQUIRED TO BE
MAINTAINED UNDER THIS AGREEMENT SHALL BE PROCURED FROM INSURANCE COMPANIES RATED
AT LEAST A-VIII OR BETTER BY THE THEN CURRENT EDITION OF BEST'S INSURANCE
REPORTS PUBLISHED BY A.M. BEST CO.
THE BORROWERS SHALL PROVIDE ADMINISTRATIVE
AGENT WITH CERTIFICATES OF INSURANCE EVIDENCING THE REQUIRED COVERAGE
CONCURRENTLY WITH THE EXECUTION OF THIS AGREEMENT AND UPON EACH RENEWAL OF SUCH
POLICIES THEREAFTER, AND, IN ADDITION TO THE NOTICES REQUIRED UNDER
SECTION 5.7(B), THE LOAN PARTIES SHALL FURNISH PROMPT WRITTEN NOTICE OF ANY
MATERIAL CHANGE OR CANCELLATION OF SUCH POLICIES.
EACH OF THE LOAN PARTIES WILL
MAINTAIN WITH FINANCIALLY SOUND AND REPUTABLE INSURERS INSURANCE WITH
79
RESPECT TO THE COLLATERAL AND ITS OTHER PROPERTIES AGAINST SUCH CASUALTIES AS
SHALL BE CONSISTENT WITH PAST PRACTICES AND IN ACCORDANCE WITH THE GENERAL
PRACTICES OF BUSINESSES ENGAGED IN SIMILAR ACTIVITIES IN SIMILAR GEOGRAPHIC
AREAS AND IN AMOUNTS, CONTAINING SUCH TERMS, IN SUCH FORMS AND FOR SUCH PERIODS
AS MAY BE REASONABLE AND PRUDENT.
(B)
FIRE AND EXTENDED COVERAGE POLICIES MAINTAINED WITH RESPECT TO ANY
COLLATERAL SHALL BE ENDORSED OR OTHERWISE AMENDED TO INCLUDE (I) A PROVISION TO
THE EFFECT THAT NONE OF THE LOAN PARTIES, THE ADMINISTRATIVE AGENT, THE
COLLATERAL AGENT, OR ANY OTHER PARTY SHALL BE A COINSURER AND (II) SUCH OTHER
PROVISIONS AS THE ADMINISTRATIVE AGENT MAY REASONABLY REQUIRE FROM TIME TO TIME
TO PROTECT THE INTERESTS OF THE LENDERS. EACH SUCH POLICY REFERRED TO IN THIS
PARAGRAPH ALSO SHALL PROVIDE THAT IT SHALL NOT BE CANCELED, MODIFIED OR NOT
RENEWED (I) BY REASON OF NONPAYMENT OF PREMIUM EXCEPT UPON NOT LESS THAN TEN
(10) DAYS' PRIOR WRITTEN NOTICE THEREOF BY THE INSURER TO THE ADMINISTRATIVE
AGENT (GIVING THE ADMINISTRATIVE AGENT THE RIGHT TO CURE DEFAULTS IN THE PAYMENT
OF PREMIUMS) OR (II) FOR ANY OTHER REASON EXCEPT UPON NOT LESS THAN THIRTY (30)
DAYS' PRIOR WRITTEN NOTICE THEREOF BY THE INSURER TO THE ADMINISTRATIVE AGENT.
THE BORROWERS SHALL DELIVER TO THE ADMINISTRATIVE AGENT, PRIOR TO THE
CANCELLATION, MODIFICATION OR NONRENEWAL OF ANY SUCH POLICY OF INSURANCE, A COPY
OF A RENEWAL OR REPLACEMENT POLICY (OR OTHER EVIDENCE OF RENEWAL OF A POLICY
PREVIOUSLY DELIVERED TO THE ADMINISTRATIVE AGENT) TOGETHER WITH EVIDENCE
SATISFACTORY TO THE ADMINISTRATIVE AGENT OF PAYMENT OF THE PREMIUM THEREFOR.
(C)
EACH INSURANCE POLICY SHALL INCLUDE AN ENDORSEMENT (IN FORM AND
SUBSTANCE REASONABLY SATISFACTORY TO THE ADMINISTRATIVE AGENT) NAMING THE
ADMINISTRATIVE AGENT AS "LOSS PAYEE", "MORTGAGEE" OR "ADDITIONAL INSURED" AS THE
ADMINISTRATIVE AGENT MAY REASONABLY REQUEST AND PROVIDING THAT THE INSURER SHALL
PAY ALL PROCEEDS OTHERWISE PAYABLE TO THE LOAN PARTY UNDER THE POLICIES DIRECTLY
TO THE ADMINISTRATIVE AGENT, SUBJECT TO THE TERMS OF THE INTERCREDITOR
AGREEMENT.
SECTION 5.8
Casualty and Condemnation.
Each Borrower will furnish to the Administrative Agent and the Lenders prompt
written notice of any casualty or other insured damage to any material portion
of the Collateral having a value in excess of $10,000,000 or the commencement of
any action or proceeding for the taking