Common use of Insurance; Condemnation Awards Clause in Contracts

Insurance; Condemnation Awards. Pledgor shall, at its own expense, maintain insurance with financially sound and reputable insurers against loss or damage to the Inventory (including liability insurance) of such types, against such risks and in such amounts as are customarily carried under similar circumstances by corporations of established reputation engaged in the same or similar businesses and similarly situated. Each policy of insurance with respect to the Inventory shall (i) name Pledgor and Collateral Agent as insured parties thereunder (without any representation or warranty by or obligation upon Collateral Agent) as their interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be payable to Collateral Agent (except that reimbursement under any liability insurance may be paid directly to the person who shall have incurred liability covered by such insurance), notwithstanding any action, inaction or breach of representation or warranty by Pledgor, (iii) provide that there shall be no recourse against Collateral Agent for payment of premiums or other amounts with respect thereto and (iv) provide that at least 10 days' prior written notice of cancellation or of lapse shall be given to Collateral Agent by the insurer. Pledgor shall furnish to Collateral Agent insurance certificates, in form and substance satisfactory to Collateral Agent, evidencing compliance by each of them with the terms of this Section 7, and, if so requested by Collateral Agent, shall deliver to Collateral Agent original or duplicate policies of such insurance and, as often as Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, Pledgor shall, at the request of Collateral Agent at any time after an Event of Default has occurred and is continuing, duly execute and deliver instruments of assignment of such insurance policies to comply with the requirements of Section 5 and cause the respective insurers to acknowledge notice of such assignment.

Insurance; Condemnation Awards. (a) Pledgor shall, at its own expense, maintain insurance with financially sound and reputable insurers against loss or damage to the Inventory (including liability insurance) of such types, against such risks and in such amounts as are customarily carried under similar circumstances by corporations of established reputation engaged in the same or similar businesses and similarly situated. Each policy of insurance with respect to the Inventory shall (i) name Pledgor and Collateral Agent as insured parties thereunder (without any representation or warranty by or obligation upon Collateral Agent) as their interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be payable to Collateral Agent (except that reimbursement under any liability insurance may be paid directly to the person who shall have incurred liability covered by such insurance), notwithstanding any action, inaction or breach of representation or warranty by Pledgor, (iii) provide that there shall be no recourse against Collateral Agent for payment of premiums or other amounts with respect thereto and (iv) provide that at least 10 days' prior written notice of cancellation or of lapse shall be given to Collateral Agent by the insurer. Pledgor shall furnish to Collateral Agent insurance certificates, in form and substance satisfactory to Collateral Agent, evidencing compliance by each of them with the terms of this Section 7, and, if so requested by Collateral Agent, shall deliver to Collateral Agent original or duplicate policies of such insurance and, as often as Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, Pledgor shall, at the request of Collateral Agent at any time after an Event of Default has occurred and is continuing, duly execute and deliver instruments of assignment of such insurance policies to comply with the requirements of Section 5 and cause the respective insurers to acknowledge notice of such assignment. (b) Prior to the expiration of each insurance policy with respect to the Inventory, upon written request of Collateral Agent, Pledgor shall furnish Collateral Agent with evidence satisfactory to Collateral Agent of the reissuance of a policy continuing insurance in force as required by this Agreement and at or prior to the date payment of the premium therefor is due, evidence satisfactory to Agent of such payment. In the event Pledgor fails to provide, maintain, keep in force or deliver and furnish to Collateral Agent the policies of insurance required by this Section 7,