Common use of Casualty and Liability Insurance Required Clause in Contracts

Casualty and Liability Insurance Required. (A) Each Borrower will keep the Collateral continuously insured against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar operations including, without limiting the generality of any other covenant herein contained: (i) casualty insurance on the Inventory in an amount not less than the full insurable value thereof, against loss or damage by theft, fire and lightning and other hazards ordinarily included under uniform broad form standard extended coverage policies, limited only as may be provided in the standard broad form of extended coverage endorsement at the time in use in the states in which the Collateral is located; (ii) comprehensive general liability insurance against claims for bodily injury, death or property damage occurring with or about such Collateral (such coverage to include provisions waiving subrogation against the Secured Party and the Lenders) in amounts as shall be reasonably satisfactory to Agent; (iii) liability insurance with respect to the operation of its facilities under the workers' compensation laws of the states in which such Collateral is located; and (iv) business interruption insurance. (B) Each insurance policy obtained in satisfaction of the requirements of Section 11(A) hereof: (i) may be provided by blanket policies now or hereafter maintained by each Borrower or its parent companies; (ii) shall be issued by such insurer (or insurers) as shall be financially responsible and of recognized standing; (iii) shall be in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation clause, the deductible amount, if any, and the standard mortgagee endorsement clause), as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Agent; (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage by the insurer without at least 30 days' prior written notice to the Agent, except for non-payment of premium, in which case such policies shall provide ten (10) days' prior written notice; (v) without limiting the generality of the foregoing, all insurance policies where applicable under Section 11(A)(i) carried on the Collateral shall name the Agent, for the benefit of the Lenders, as loss payee and a party insured thereunder in respect of any claim for payment in excess of $250,000. (C) Prior to expiration of any such policy, such Borrower shall furnish the Agent with evidence satisfactory to the Agent that the policy or certificate has been renewed or replaced or is no longer required by this Agreement. (D) Each Borrower hereby irrevocably makes, constitutes and appoints the Agent (and all officers, employees or agents designated by the Agent), for the benefit of the Lenders, effective upon the occurrence and during the continuance of an Event of Default, as such Borrower's true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Borrower on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance. (E) In the event such Borrower shall fail to maintain, or fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Agent may (but shall be under no obligation to), without waiving or releasing any Obligation or Event of Default by such Borrower hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by Agent, including reasonable attorneys' fees, court costs, expenses and other charges related thereto, shall be payable on demand by such Borrower to the Agent and shall be additional Obligations secured by the Collateral. (F) Each Borrower agrees that to the extent that it shall not carry insurance required by Section 11(A) hereof, it shall in the event of any loss or casualty pay promptly to the Agent, for the benefit of the Lenders, for application in accordance with the provisions of Section 11(H) hereof, such amount as would have been received as Net Proceeds (as hereinafter defined) by the Agent, for the benefit of the Lenders, under the provisions of Section 11(H) hereof had such insurance been carried to the extent required. (G) The Net Proceeds of the insurance carried pursuant to the provisions of Sections 11(A)(ii) and 11(A)(iii) hereof shall be applied by such Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid. (H) The Net Proceeds of the insurance carried with respect to the Collateral pursuant to the provisions of Section 11(A)(i) hereof shall be paid to such Borrower and held by such Borrower in a separate account and applied as follows: (i) as long as no Event of Default shall have occurred and be continuing, after any loss under any such insurance and payment of the proceeds of such insurance, each Borrower shall have a period of 180 days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Agent, for the benefit of the Lenders, as additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets used or useful in the conduct of the business of such Borrower, subject to the provisions of this Agreement. If such Borrower elects to repair or replace the Collateral so damaged, such Borrower agrees the Collateral shall be repaired to a condition substantially similar to its condition prior to damage or replaced with Collateral in a condition substantially similar to the condition of the Collateral so replaced prior to damage; and (ii) at all times during which an Event of Default shall have occurred and be continuing, after any loss under such insurance and payment of the proceeds of such insurance, such Borrower shall immediately deliver such Net Proceeds to such Agent, for the benefit of the Lenders, as additional Collateral.

Casualty and Liability Insurance Required. (Aa) Each Borrower Grantor will keep the Collateral continuously insured against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar operations including, without limiting the generality of any other covenant herein contained: (i) casualty insurance on the Inventory and the Equipment in an amount not less than the full insurable value thereof, against loss or damage by theft, fire and fire, lightning and other hazards ordinarily included under uniform broad form standard extended coverage policies, limited only as may be provided in the standard broad form of extended coverage endorsement at the time in use in the states in which the Collateral is located; (ii) comprehensive general liability insurance against claims for bodily injury, death or property damage occurring with or about such Collateral (such coverage to include provisions waiving subrogation against the Secured Party Parties, except in the event of their gross negligence or willful misconduct as a cause of such injury, death or property damage), with the Administrative Agent and the Lenders) Lenders as additional insureds thereunder, in amounts as shall be reasonably satisfactory to Administrative Agent; (iii) liability insurance with respect to the operation of its facilities under the workers' ’ compensation laws of the states in which such Collateral is located, in amounts as shall be reasonably satisfactory to Administrative Agent; and (iv) business interruption insuranceinsurance in amounts as shall be reasonably satisfactory to Administrative Agent. (Bb) Each insurance policy obtained in satisfaction of the requirements of Section 11(A) hereof:10(a): (i) may be provided by blanket policies now or hereafter maintained by each Borrower or its parent companiesany Grantor or by the Borrower; (ii) shall be issued by such insurer (or insurers) as shall be financially responsible and responsible, of recognized standingstanding and reasonably acceptable to the Administrative Agent; (iii) shall be in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation clauseclause except for workers compensation policies, the deductible amount, if any, and the standard mortgagee endorsement clause), ) as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Administrative Agent; (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage by the insurer without the insurer’s agreement to endeavor to provide at least 30 fifteen (15) days' ’ prior written notice to the Administrative Agent, except for non-payment of premium, in as to which case such policies shall provide for at least ten (10) days' ’ prior written noticenotice to the Administrative Agent; (v) without limiting the generality of the foregoing, all insurance policies (other than those in respect of workers compensation and any umbrella/excess liability policies, which are paid to the first named insured thereunder only) where applicable under Section 11(A)(i10(a)(i) carried on the Collateral shall name the Administrative Agent, for the benefit of the LendersSecured Parties, as loss payee and a party the Administrative Agent and Lenders as additional parties insured thereunder in respect of any claim for payment in excess of $250,000payment. (Cc) Prior to expiration of any such policy, such Borrower Grantor shall furnish the Administrative Agent with evidence satisfactory to the Administrative Agent that the policy or certificate has been renewed or replaced or is no longer required by this Security Agreement. (Dd) Each Borrower Grantor hereby irrevocably makes, constitutes and appoints the Administrative Agent (and all officers, employees or agents designated by the Administrative Agent), for the benefit of the Lenders, effective upon the occurrence and during the continuance of an Event of DefaultSecured Parties, as such Borrower's Grantor’s true and lawful attorney to the extent permitted by the applicable insurance policy (and agent-in-fact) for the purpose of making, making and settling and adjusting claims with the insurance companies under such policies of insurance, endorsing the name of such Borrower Grantor on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance, which appointment is coupled with an interest and is irrevocable; provided, however, that the powers pursuant to such appointment shall be exercisable only upon the occurrence and during the continuation of an Event of Default. (Ee) In the event such Borrower Grantor shall fail to maintain, or fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Administrative Agent may (but shall be under no obligation to), upon notice to such Grantor, without waiving or releasing any Secured Obligation or Default or Event of Default by such Borrower Grantor hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by Administrative Agent, including reasonable attorneys' feesAttorney Costs, court costs, expenses and other charges related thereto, shall be payable on demand by such Borrower Grantor to the Agent and Administrative Agent, shall be additional Secured Obligations secured by the Collateral, and (in addition to other rights and remedies resulting from such nonpayment), upon the request of the Required Lenders pursuant to Section 2.09(b)(ii) of the Credit Agreement, shall bear interest from the date of demand until paid in full at the Default Rate. (Ff) Each Borrower Grantor agrees that to the extent that it shall not carry fail to maintain, or fail to cause to be maintained, the full insurance coverage required by Section 11(A) hereof10(a), it shall in the event of any loss or casualty pay promptly to the Administrative Agent, for the benefit of the LendersSecured Parties, to be held in a separate account for application in accordance with the provisions of Section 11(H) hereofSections 10(h), such amount as would have been received as Net Proceeds (as hereinafter defined) by the Administrative Agent, for the benefit of the LendersSecured Parties, under the provisions of Section 11(H10(h) hereof had such insurance been carried to the extent required. (Gg) The Net Proceeds of the insurance carried pursuant to the provisions of Sections 11(A)(ii10(a)(ii) and 11(A)(iii10(a)(iii) hereof shall be applied to the extent claims thereunder have not been satisfied by such Borrower Grantor toward extinguishment of the defect or claim or satisfaction of the claim or liability with respect to which such insurance proceeds may be paid. (Hh) The Net Proceeds of the insurance carried with respect to the Collateral pursuant to the provisions of Section 11(A)(i10(a)(i) hereof shall be paid to such Borrower Grantor and held by such Borrower Grantor in a separate account and applied as follows: (i) applied, as long as no Event of Default shall have occurred and be continuing, as follows: after any loss under any such insurance and payment of the proceeds of such insurance, each Borrower Grantor shall have a period of 180 thirty (30) days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Administrative Agent, for the benefit of the LendersSecured Parties, as additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets constituting Collateral used or useful in the conduct of the business of such BorrowerGrantor, subject to the provisions of this Security Agreement. If such Borrower Grantor elects to repair or replace the Collateral so damaged, such Borrower Grantor agrees the Collateral shall be repaired to a condition substantially similar to or of better quality or higher value than its condition prior to damage or replaced with Collateral in a condition substantially similar to or of better quality or higher value than the condition of the Collateral so replaced prior to damage; and (ii) at . At all times during which an Event of Default shall have occurred and be continuing, after any loss under such insurance the Administrative Agent shall be entitled to receive direct and immediate payment of the proceeds of such insuranceinsurance and such Grantor shall take all action as the Administrative Agent may reasonably request to accomplish such payment. Notwithstanding the foregoing, in the event such Grantor shall receive any such proceeds, such Borrower Grantor shall immediately deliver such Net Proceeds proceeds following the occurrence and during the continuance of an Event of Default to such Agent, Administrative Agent for the benefit of the Lenders, Secured Parties as additional Collateral, and pending such delivery shall hold such proceeds in trust for the benefit of the Secured Parties and keep the same segregated from its other funds.

Casualty and Liability Insurance Required. (A) Each Until Payment of the Bonds shall be made, the Borrower will keep or cause to be kept the Collateral New Facility continuously insured against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar manufacturing operations (including business interruption insurance) including, without limiting the generality of any other covenant herein containedthe foregoing: (i1) prior to completion of the portion of the Project involving improvements to real property, builder's risk insurance on the Plant on an "all risk" basis in an amount acceptable to the Bondholder and with such other provisions as are required by the Bondholder; (2) casualty insurance on the Inventory New Facility in an amount not less than the full insurable value thereofof all property located at, and all improvements to, the Project Site, against loss or damage by theft, fire and lightning and other hazards ordinarily included under uniform broad form standard extended coverage policies, limited only as may be provided in the standard broad form of extended coverage endorsement at the time in use in the states in which the Collateral is locatedState; (ii3) general comprehensive general liability insurance insurance, naming the Issuer and the Trustee as loss payees, against claims for bodily injury, death or property damage occurring with on, in or about such Collateral the New Facility (such coverage to include provisions waiving subrogation against the Secured Party Issuer and the LendersTrustee) in amounts as shall be reasonably satisfactory not less than $1,000,000.00 with respect to Agentbodily injury to any one person, $1,000,000.00 with respect to bodily injury to two or more persons in any one accident and $1,000,000.00, with respect to property damage resulting from any one occurrence; (iii4) liability insurance with respect to the operation of its facilities New Facility under the workers' compensation laws of the states in which such Collateral is locatedState; and (iv) business interruption insurance. (B) Each provided, however, that the insurance policy obtained in satisfaction of the requirements of Section 11(A) hereof: (i) so required may be provided by blanket policies now or hereafter maintained by each Borrower or its parent companies;the Borrower; and (ii5) shall be issued by such insurer (or insurers) as shall be financially responsible and if at any time any portion of recognized standing; (iii) shall be the New Facility Site is in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation clause, the deductible amount, if any, and the standard mortgagee endorsement clause), as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Agent; (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage an area that has been identified by the insurer without at least 30 days' prior written notice to the AgentSecretary of Housing and Urban Development as having special flood and mud-slide hazards, except for non-payment a policy of premium, in which case flood insurance covering improvements located on such policies shall provide ten (10) days' prior written notice; (v) without limiting the generality portion of the foregoing, all insurance policies where applicable under Section 11(A)(i) carried on the Collateral shall name the Agent, for the benefit of the Lenders, as loss payee Project Site with amounts and a party insured thereunder in respect of any claim for payment in excess of $250,000. (C) Prior to expiration of any such policy, such Borrower shall furnish the Agent with evidence coverage satisfactory to the Agent that the policy or certificate has been renewed or replaced or is no longer required by this AgreementBondholder. (D) Each Borrower hereby irrevocably makes, constitutes and appoints the Agent (and all officers, employees or agents designated by the Agent), for the benefit of the Lenders, effective upon the occurrence and during the continuance of an Event of Default, as such Borrower's true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Borrower on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance. (E) In the event such Borrower shall fail to maintain, or fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Agent may (but shall be under no obligation to), without waiving or releasing any Obligation or Event of Default by such Borrower hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by Agent, including reasonable attorneys' fees, court costs, expenses and other charges related thereto, shall be payable on demand by such Borrower to the Agent and shall be additional Obligations secured by the Collateral. (F) Each Borrower agrees that to the extent that it shall not carry insurance required by Section 11(A) hereof, it shall in the event of any loss or casualty pay promptly to the Agent, for the benefit of the Lenders, for application in accordance with the provisions of Section 11(H) hereof, such amount as would have been received as Net Proceeds (as hereinafter defined) by the Agent, for the benefit of the Lenders, under the provisions of Section 11(H) hereof had such insurance been carried to the extent required. (G) The Net Proceeds of the insurance carried pursuant to the provisions of Sections 11(A)(ii) and 11(A)(iii) hereof shall be applied by such Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid. (H) The Net Proceeds of the insurance carried with respect to the Collateral pursuant to the provisions of Section 11(A)(i) hereof shall be paid to such Borrower and held by such Borrower in a separate account and applied as follows: (i) as long as no Event of Default shall have occurred and be continuing, after any loss under any such insurance and payment of the proceeds of such insurance, each Borrower shall have a period of 180 days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Agent, for the benefit of the Lenders, as additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets used or useful in the conduct of the business of such Borrower, subject to the provisions of this Agreement. If such Borrower elects to repair or replace the Collateral so damaged, such Borrower agrees the Collateral shall be repaired to a condition substantially similar to its condition prior to damage or replaced with Collateral in a condition substantially similar to the condition of the Collateral so replaced prior to damage; and (ii) at all times during which an Event of Default shall have occurred and be continuing, after any loss under such insurance and payment of the proceeds of such insurance, such Borrower shall immediately deliver such Net Proceeds to such Agent, for the benefit of the Lenders, as additional Collateral.

Casualty and Liability Insurance Required. (A) Each Borrower Until Payment of the Bonds shall be made, the Company will keep the Collateral Project properly and continuously insured against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar operations including, without limiting the generality of the foregoing, all insurance required under the Reimbursement Agreement or any other covenant herein contained:of the Letter of Credit Documents; (ia) prior to completion of the Project, an "all risk" builder's risk insurance on the Project in the amount of not less than the full insurable value thereof and with such other provisions as may be required by the Trustee or the Bank; (b) casualty insurance on the Inventory Project in an amount not less than the full insurable value thereofof all property located at, and all improvements to, the Project, against loss or damage by theft, fire and lightning and other hazards ordinarily included under uniform broad form standard extended coverage policies, limited only as may be provided in the standard broad form of extended coverage endorsement at the time in use in the states in which the Collateral is located;fire (iic) general comprehensive general liability insurance against claims for bodily injury, death or property damage occurring with on, in or about such Collateral the Project (such coverage to include provisions waiving subrogation against the Secured Party Issuer and the LendersTrustee) in amounts as shall be reasonably satisfactory not less than $1,000,000 with respect to Agentbodily injury to any one person, $1,000,000 with respect to bodily injury to two or more persons in any one accident and $1,000,000 with respect to property damage resulting from any one occurrence; (iiid) liability insurance with respect to the operation of its facilities Project under the workers' compensation laws of the states in which such Collateral is locatedState; and (iv) business interruption insurance. (B) Each provided, however, that the insurance policy obtained in satisfaction of the requirements of Section 11(A) hereof: (i) so required may be provided by blanket policies or under a self insurance program now or hereafter maintained by each Borrower or its parent companies;the Company; and (iie) shall be issued by such insurer (or insurers) as shall be financially responsible and if at any time any portion of recognized standing; (iii) shall be the Project is in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation clause, the deductible amount, if any, and the standard mortgagee endorsement clause), as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Agent; (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage an area that has been identified by the insurer without at least 30 days' prior written notice to the AgentSecretary of Housing and Urban Development as having special flood and mudslide hazards, except for non-payment a policy of premium, in which case flood insurance covering improvements located on such policies shall provide ten (10) days' prior written notice; (v) without limiting the generality portion of the foregoing, all insurance policies where applicable under Section 11(A)(i) carried on the Collateral shall name the Agent, for the benefit of the Lenders, as loss payee Project with amounts and a party insured thereunder in respect of any claim for payment in excess of $250,000. (C) Prior to expiration of any such policy, such Borrower shall furnish the Agent with evidence coverage satisfactory to the Agent that Trustee and the policy or certificate has been renewed or replaced or is no longer required by this AgreementCredit Facility Issuer. (D) Each Borrower hereby irrevocably makes, constitutes and appoints the Agent (and all officers, employees or agents designated by the Agent), for the benefit of the Lenders, effective upon the occurrence and during the continuance of an Event of Default, as such Borrower's true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Borrower on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance. (E) In the event such Borrower shall fail to maintain, or fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Agent may (but shall be under no obligation to), without waiving or releasing any Obligation or Event of Default by such Borrower hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by Agent, including reasonable attorneys' fees, court costs, expenses and other charges related thereto, shall be payable on demand by such Borrower to the Agent and shall be additional Obligations secured by the Collateral. (F) Each Borrower agrees that to the extent that it shall not carry insurance required by Section 11(A) hereof, it shall in the event of any loss or casualty pay promptly to the Agent, for the benefit of the Lenders, for application in accordance with the provisions of Section 11(H) hereof, such amount as would have been received as Net Proceeds (as hereinafter defined) by the Agent, for the benefit of the Lenders, under the provisions of Section 11(H) hereof had such insurance been carried to the extent required. (G) The Net Proceeds of the insurance carried pursuant to the provisions of Sections 11(A)(ii) and 11(A)(iii) hereof shall be applied by such Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid. (H) The Net Proceeds of the insurance carried with respect to the Collateral pursuant to the provisions of Section 11(A)(i) hereof shall be paid to such Borrower and held by such Borrower in a separate account and applied as follows: (i) as long as no Event of Default shall have occurred and be continuing, after any loss under any such insurance and payment of the proceeds of such insurance, each Borrower shall have a period of 180 days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Agent, for the benefit of the Lenders, as additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets used or useful in the conduct of the business of such Borrower, subject to the provisions of this Agreement. If such Borrower elects to repair or replace the Collateral so damaged, such Borrower agrees the Collateral shall be repaired to a condition substantially similar to its condition prior to damage or replaced with Collateral in a condition substantially similar to the condition of the Collateral so replaced prior to damage; and (ii) at all times during which an Event of Default shall have occurred and be continuing, after any loss under such insurance and payment of the proceeds of such insurance, such Borrower shall immediately deliver such Net Proceeds to such Agent, for the benefit of the Lenders, as additional Collateral.

Casualty and Liability Insurance Required. (A) Each Borrower Until Payment of the Bonds shall be made, the Company will keep the Collateral Project properly and continuously insured against such risks as are customarily insured against by businesses of like size and type engaged in the same or similar operations (other than business interruption insurance) including, without limiting the generality of the foregoing, all insurance required under the Reimbursement Agreement or any other covenant herein contained:of the Letter of Credit Documents; (ia) casualty insurance on the Inventory Project in an amount not less than the full insurable value thereofof all property located at, and all improvements to, the Project, against loss or damage by theft, fire and lightning and other hazards ordinarily included under uniform broad form standard extended coverage policies, limited only as may be provided in the standard broad form of extended coverage endorsement at the time in use in the states in which the Collateral is locatedState; (iib) general comprehensive general liability insurance against claims for bodily injury, death or property damage occurring with on, in or about such Collateral the Project (such coverage to include provisions waiving subrogation against the Secured Party Issuer and the LendersTrustee) in amounts as shall be reasonably satisfactory no less than $1,000,000 with respect to Agentbodily injury to any one person, $1,000,000 with respect to bodily injury to two or more persons in any one accident and $1,000,000 with respect to property damage resulting from any one occurrence; (iiic) liability insurance with respect to the operation of its facilities Project under the workers' compensation laws of the states in which such Collateral is locatedState; and (iv) business interruption insurance. (B) Each provided, however, that the insurance policy obtained in satisfaction of the requirements of Section 11(A) hereof: (i) so required may be provided by blanket policies or under a self insurance program now or hereafter maintained by each Borrower or its parent companies;the Company; and (iid) shall be issued by such insurer (or insurers) as shall be financially responsible and if at any time any portion of recognized standing; (iii) shall be the Project is in such form and have such provisions (including without limitation the loss payable clause, the waiver of subrogation clause, the deductible amount, if any, and the standard mortgagee endorsement clause), as are generally considered standard provisions for the type of insurance involved and are reasonably acceptable in all respects to the Agent; (iv) shall prohibit cancellation or substantial modification, termination or lapse in coverage an area that has been identified by the insurer without at least 30 days' prior written notice to the AgentSecretary of Housing and Urban Development as having special flood and mudslide hazards, except for non-payment a policy of premium, in which case flood insurance covering improvements located on such policies shall provide ten (10) days' prior written notice; (v) without limiting the generality portion of the foregoing, all insurance policies where applicable under Section 11(A)(i) carried on the Collateral shall name the Agent, for the benefit of the Lenders, as loss payee and a party insured thereunder in respect of any claim for payment in excess of $250,000. (C) Prior to expiration of any such policy, such Borrower shall furnish the Agent with evidence satisfactory to the Agent that the policy or certificate has been renewed or replaced or is no longer required by this Agreement. (D) Each Borrower hereby irrevocably makes, constitutes and appoints the Agent (and all officers, employees or agents designated by the Agent), for the benefit of the Lenders, effective upon the occurrence and during the continuance of an Event of Default, as such Borrower's true and lawful attorney (and agent-in-fact) for the purpose of making, settling and adjusting claims under such policies of insurance, endorsing the name of such Borrower on any check, draft, instrument or other item or payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect to such policies of insurance. (E) In the event such Borrower shall fail to maintain, or fail to cause to be maintained, the full insurance coverage required hereunder or shall fail to keep any of its Collateral in good repair and good operating condition, the Agent may (but shall be under no obligation to), without waiving or releasing any Obligation or Event of Default by such Borrower hereunder, contract for the required policies of insurance and pay the premiums on the same or make any required repairs, renewals and replacements; and all sums so disbursed by Agent, including reasonable attorneys' fees, court costs, expenses and other charges related thereto, shall be payable on demand by such Borrower to the Agent and shall be additional Obligations secured by the Collateral. (F) Each Borrower agrees that to the extent that it shall not carry insurance required by Section 11(A) hereof, it shall in the event of any loss or casualty pay promptly to the Agent, for the benefit of the Lenders, for application in accordance with the provisions of Section 11(H) hereof, such amount as would have been received as Net Proceeds (as hereinafter defined) by the Agent, for the benefit of the Lenders, under the provisions of Section 11(H) hereof had such insurance been carried to the extent required. (G) The Net Proceeds of the insurance carried pursuant to the provisions of Sections 11(A)(ii) and 11(A)(iii) hereof shall be applied by such Borrower toward extinguishment of the defect or claim or satisfaction of the liability with respect to which such insurance proceeds may be paid. (H) The Net Proceeds of the insurance carried with respect to the Collateral pursuant to the provisions of Section 11(A)(i) hereof shall be paid to such Borrower and held by such Borrower in a separate account and applied as follows: (i) as long as no Event of Default shall have occurred and be continuing, after any loss under any such insurance and payment of the proceeds of such insurance, each Borrower shall have a period of 180 days after payment of the insurance proceeds with respect to such loss to elect to either (x) repair or replace the Collateral so damaged, (y) deliver such Net Proceeds to the Agent, for the benefit of the Lenders, as additional Collateral or (z) apply such Net Proceeds to the acquisition of tangible assets used or useful in the conduct of the business of such Borrower, subject to the provisions of this Agreement. If such Borrower elects to repair or replace the Collateral so damaged, such Borrower agrees the Collateral shall be repaired to a condition substantially similar to its condition prior to damage or replaced with Collateral in a condition substantially similar to the condition of the Collateral so replaced prior to damage; and (ii) at all times during which an Event of Default shall have occurred and be continuing, after any loss under such insurance and payment of the proceeds of such insurance, such Borrower shall immediately deliver such Net Proceeds to such Agent, for the benefit of the Lenders, as additional Collateral.the