PARTY A STATEMENT DESCRIBING IN 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 SECURED
PARTY.
EACH SUCH POLICY FOR LIABILITY INSURANCE SHALL PROVIDE FOR ALL LOSSES TO
BE PAID ON BEHALF OF THE SECURED PARTY 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 SECURED
PARTY.
EACH SUCH POLICY SHALL IN ADDITION (A) NAME THE SECURED PARTY AS AN
ADDITIONAL INSURED PARTY THEREUNDER (WITHOUT ANY REPRESENTATION OR WARRANTY BY
OR OBLIGATION UPON THE SECURED PARTY) AS THEIR INTERESTS MAY APPEAR, (B) CONTAIN
AN AGREEMENT BY THE INSURER THAT ANY LOSS THEREUNDER SHALL BE PAYABLE TO THE
SECURED PARTY ON ITS OWN ACCOUNT NOTWITHSTANDING ANY ACTION, INACTION OR BREACH
OF REPRESENTATION OR WARRANTY BY SUCH GRANTOR, (C) PROVIDE THAT THERE SHALL BE
NO RECOURSE AGAINST THE SECURED PARTY 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 SECURED PARTY BY THE INSURER.
SUCH GRANTOR WILL, IF SO REQUESTED BY THE
SECURED PARTY, DELIVER TO THE SECURED PARTY ORIGINAL OR DUPLICATE POLICIES OF
SUCH INSURANCE AND, AS OFTEN AS THE SECURED PARTY MAY REASONABLY REQUEST, A
REPORT OF A REPUTABLE INSURANCE BROKER WITH RESPECT TO SUCH INSURANCE.
SUCH
GRANTOR WILL ALSO, AT THE REQUEST OF THE SECURED PARTY, 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 BY A GRANTOR PURSUANT