INSURABLE PROPERTY ADEQUATELY INSURED AT ALL
TIMES BY FINANCIALLY SOUND AND REPUTABLE INSURERS AND MAINTAIN SUCH OTHER
INSURANCE, IN EACH CASE, TO SUCH EXTENT AND AGAINST SUCH RISKS AS IS CUSTOMARY
WITH COMPANIES IN THE SAME OR SIMILAR BUSINESSES OPERATING IN THE SAME OR
SIMILAR LOCATIONS, INCLUDING INSURANCE WITH RESPECT TO MORTGAGED PROPERTIES AND
OTHER PROPERTIES MATERIAL TO THE BUSINESS OF THE COMPANIES AGAINST SUCH
CASUALTIES AND CONTINGENCIES AND OF SUCH TYPES AND IN SUCH AMOUNTS WITH SUCH
DEDUCTIBLES AS IS CUSTOMARY IN THE CASE OF SIMILAR BUSINESSES OPERATING IN THE
SAME OR SIMILAR LOCATIONS; PROVIDED THAT WITH RESPECT TO PHYSICAL HAZARD
INSURANCE, NEITHER THE COLLATERAL AGENT NOR THE APPLICABLE COMPANY SHALL AGREE
TO THE ADJUSTMENT OF ANY CLAIM THEREUNDER WITHOUT THE CONSENT OF THE OTHER (SUCH
CONSENT NOT TO BE UNREASONABLY WITHHELD OR DELAYED); PROVIDED, FURTHER, THAT NO
CONSENT OF ANY COMPANY SHALL BE REQUIRED DURING AN EVENT OF DEFAULT.
(B)
REQUIREMENTS OF INSURANCE.
ALL SUCH INSURANCE SHALL (I) PROVIDE
THAT NO CANCELLATION IN COVERAGE THEREOF SHALL BE EFFECTIVE UNTIL AT LEAST
30 DAYS AFTER RECEIPT BY THE COLLATERAL AGENT OF WRITTEN NOTICE THEREOF,
(II) NAME THE COLLATERAL AGENT AS MORTGAGEE (IN THE CASE OF PROPERTY INSURANCE)
OR
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ADDITIONAL INSURED ON BEHALF OF THE SECURED PARTIES (IN THE CASE OF LIABILITY
INSURANCE) OR LOSS PAYEE (IN THE CASE OF PROPERTY INSURANCE), AS APPLICABLE,
(III) IF REASONABLY REQUESTED BY THE COLLATERAL AGENT, INCLUDE A BREACH OF
WARRANTY CLAUSE AND (IV) BE REASONABLY SATISFACTORY IN ALL OTHER RESPECTS TO THE
COLLATERAL AGENT.
THE COLLATERAL AGENT ACKNOWLEDGES THAT THE INSURANCE IN
EFFECT ON THE CLOSING DATE IS SATISFACTORY AS OF THE CLOSING DATE.
(C)
NOTICE TO AGENTS.
NOTIFY THE ADMINISTRATIVE AGENT AND THE
COLLATERAL AGENT IMMEDIATELY WHENEVER ANY SEPARATE INSURANCE CONCURRENT IN FORM
OR CONTRIBUTING IN THE EVENT OF LOSS WITH THAT REQUIRED TO BE MAINTAINED UNDER
THIS SECTION 5.04 IS TAKEN OUT BY ANY LOAN PARTY, AND PROMPTLY DELIVER TO THE
ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT A DUPLICATE ORIGINAL COPY OF SUCH
POLICY OR POLICIES.
(D)
FLOOD INSURANCE.
WITH RESPECT TO EACH MORTGAGED PROPERTY, OBTAIN
FLOOD INSURANCE IN COMPLIANCE WITH THE NATIONAL FLOOD INSURANCE PROGRAM AS SET
FORTH IN THE FLOOD DISASTER PROTECTION ACT OF 1973, AS AMENDED FROM TIME TO
TIME.
(E)
BROKER'S REPORT.
DELIVER TO THE ADMINISTRATIVE AGENT AND THE
COLLATERAL AGENT AND THE LENDERS A REPORT OF A REPUTABLE INSURANCE BROKER WITH
RESPECT TO SUCH INSURANCE AND SUCH SUPPLEMENTAL REPORTS WITH RESPECT THERETO AS
THE ADMINISTRATIVE AGENT OR THE COLLATERAL AGENT MAY FROM TIME TO TIME
REASONABLY REQUEST BUT NOT MORE THAN ONE PER FISCAL YEAR.
(F)
MORTGAGED PROPERTIES.
NO LOAN PARTY THAT IS AN OWNER OF
MORTGAGED PROPERTY SHALL TAKE ANY ACTION THAT IS REASONABLY LIKELY TO BE THE
BASIS FOR TERMINATION, REVOCATION OR DENIAL OF ANY INSURANCE COVERAGE REQUIRED
TO BE MAINTAINED UNDER SUCH LOAN PARTY'S RESPECTIVE MORTGAGE OR THAT COULD
REASONABLY BE LIKELY TO BE THE BASIS FOR A DEFENSE TO ANY CLAIM UNDER ANY
INSURANCE POLICY MAINTAINED IN RESPECT OF THE