Certain Pre-Closing Insured Losses Clause Samples

Certain Pre-Closing Insured Losses. In the event that (i) the Company experiences a loss with respect to an asset that is not a Current Asset, (ii) such asset loss is covered by an insurance policy of the Parent or its Affiliates relating to the Company, (iii) the Company replaces such asset or otherwise fully repairs such loss, and (iv) the Company has rights to insurance proceeds therefrom (“Insurance Rights”), and such right is not recorded as a Current Asset as of the Closing Date, then the Parties agree and acknowledge that the Company shall assign such Insurance Rights to Seller. In addition, Purchaser agrees and acknowledges that it shall not have any rights to insurance proceeds that are payable to the Company following the Closing Date to compensate the Company for business interruptions prior to the Closing Date; provided, that, such right to payment is not recorded as a Current Asset as of the Closing Date. Any such insurance payments shall belong to Seller or Parent, and if for any reason any such insurance payment is delivered or paid to the Company, the Company shall remit such payment to Seller.