Common use of Insurance of Collateral; Condemnation Proceeds Clause in Contracts

Insurance of Collateral; Condemnation Proceeds. (i) Borrower shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved by Agent) satisfactory to Agent. All proceeds under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement). From time to time upon Agent’s request therefor, Borrower shall deliver to Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if any. Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing Agent as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement); (ii) requiring 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect of Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If Borrower fails to provide and pay for any insurance, Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower therefor. Borrower agrees to deliver to Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower may settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust and compromise such claims.

Insurance of Collateral; Condemnation Proceeds. (ia) Borrower Each Obligor shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating rating of at least A7A+, unless otherwise approved by AgentAgent in its discretion) satisfactory to Agent (it being agreed that, as of the Closing Date, the Borrowers’ existing insurance providers as set forth in the certificates of insurance delivered to Agent on or about the Closing Date shall be deemed to be acceptable to Agent); provided, that if Real Estate secures any Obligations, flood hazard diligence, documentation and insurance for such Real Estate shall comply with all Flood Laws or shall otherwise be satisfactory to all Lenders. All proceeds under each policy shall be payable to Agent (Agent, subject to the terms of the Intercreditor Agreement)clause (c) below. From time to time upon Agent’s request thereforrequest, Borrower Obligors shall deliver to Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless Agent shall agree otherwise, each Each policy shall include endorsements satisfactory endorsements to Agent (i) showing Agent as sole lender’s loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) requiring 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect of Borrower any Obligor or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If Borrower any Obligor fails to provide and pay for any insurance, Agent may, at in its option, but shall not be required todiscretion, procure the insurance and charge Borrower Obligors therefor. Borrower Each Obligor agrees to deliver to Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Obligors may settle, adjust or compromise any insurance claim, as long as provided the proceeds are delivered to Agent, subject to clause (c) below. If an Event of Default exists, only Agent shall be authorized to may settle, adjust and compromise such claims.

Insurance of Collateral; Condemnation Proceeds. (ia) Each Borrower shall, and shall cause each other Obligor to, maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating rating of at least A7A+, unless otherwise approved by Agentthe Administrative Agent in its discretion) satisfactory to the Administrative Agent. All proceeds with respect to Collateral under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Administrative Agent. From time to time upon Agent’s request thereforrequest, Borrower Borrowers shall, and shall cause each other Obligor to, deliver to the Administrative Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless the Administrative Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing the Administrative Agent as sole additional loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) requiring 30 days days’ prior written notice to the Administrative Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of the Administrative Agent shall not be impaired or invalidated by any act or neglect of Borrower any Obligor or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If Borrower any Obligor fails to provide and pay for any insurance, the Administrative Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver deliver, and shall cause each other Obligor to deliver, to the Administrative Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust or compromise any insurance claim, as long as the proceeds of any insurance with respect to Collateral are delivered to the Administrative Agent. If an Event of Default exists, only the Administrative Agent shall be authorized to settle, adjust and compromise such claimsclaims regarding Collateral.

Insurance of Collateral; Condemnation Proceeds. (ia) Each Borrower shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved by Agent) satisfactory to Agent (it being understood and agreed that the insurance of the Borrowers in place on the Closing Date and insurers providing it are satisfactory to Agent). All proceeds under each policy in respect of Collateral shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Agent. From time to time upon Agent’s request thereforrequest, Borrower Borrowers shall deliver to Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anypolicies. Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing Agent as sole loss payee or in respect of the property insurance policies relating to the Collateral and additional insuredinsured in respect of the liability insurance policies, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)applicable; (ii) requiring 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay for any insurance, Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust or compromise any insurance claimclaim relating to Collateral, as long as the proceeds are delivered to Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust and compromise such claimsclaims relating to Collateral.

Insurance of Collateral; Condemnation Proceeds. (ia) Subject to the provisions of Section 7.8 hereof, each Borrower shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating rating of at least A7A+, unless otherwise approved by AgentLender in its discretion) satisfactory to AgentLender. All Subject to the provisions of Section 7.8 hereof proceeds under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Lender. From time to time upon Agent’s request thereforrequest, Borrower Borrowers shall deliver to Agent Lender the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless Agent Lender shall agree otherwise, each policy shall include satisfactory endorsements (i) showing Agent Lender as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) requiring 30 days days’ (or 10 days’ in the case of non-payment of premium) prior written notice to Agent Lender in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent Lender shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay for any insurance, Agent Lender may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to AgentLender, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to AgentLender. If Subject to the provisions of Section 7.8 hereof, if an Event of Default exists, only Agent Lender shall be authorized to settle, adjust and compromise such claims.

Insurance of Collateral; Condemnation Proceeds. (i) Borrower Each Grantor shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved by the Collateral Agent) satisfactory to the Collateral Agent. The Collateral Agent agrees that the insurance maintained by each Grantor on the date hereof satisfies this Section 3.5(b). All proceeds under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Collateral Agent. From time to time upon Agent’s request thereforrequest, Borrower the Grantors shall promptly following such request, deliver to the Collateral Agent the originals or certified copies of its their respective insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless the Collateral Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing the Collateral Agent as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) to the extent available requiring 30 days prior written notice to the Collateral Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) to the extent available specifying that the interest of the Collateral Agent shall not be impaired or invalidated by any act or neglect of Borrower any Grantor or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If Borrower any Grantor fails to provide and pay for any insurance, the Collateral Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower the Grantors therefor. Borrower Each Grantor agrees to deliver to the Collateral Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower any Grantor may settle, adjust or compromise any insurance claim, claim as long as the proceeds are delivered to Agentthe Collateral Agent to the extent and as required by Section 4.06 of the Indenture. If an Event of Default exists, only the Collateral Agent shall be authorized to settle, adjust and compromise such claims.

Insurance of Collateral; Condemnation Proceeds. (ia) Each Borrower shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agentif necessary) and other risks, in amounts, with endorsements and with insurers (with a Best Rating of at least A7, unless otherwise approved by AgentLender) reasonably satisfactory to AgentLender. All proceeds under each such policy (other than proceeds constituting Excluded Assets) shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Lender. From time to time upon Agent’s request thereforrequest, Borrower Borrowers shall deliver to Agent Lender the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless Agent Lender shall agree otherwise, each policy shall include reasonably satisfactory endorsements (i) showing Agent Lender as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject except with respect to the terms of the Intercreditor Agreementinsurance proceeds constituting Excluded Assets); (ii) requiring 30 days prior written notice to Agent Lender in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent Lender shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay for any insuranceinsurance required hereunder or under Section 10.1.7, Agent Lender may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to AgentLender, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to AgentLender. If an Event of Default exists, only Agent Lender shall be authorized to settle, adjust and compromise such claimsclaims (except claims in respect of Excluded Assets).

Insurance of Collateral; Condemnation Proceeds. (i) Each Borrower shall maintain and pay for insurance with respect to the upon all Collateral, wherever located, covering casualty, hazard, public liability, theft, malicious mischief, flood (to and such other risks in such amounts as are usually insured against by companies engaged in similar businesses in the extent reasonably required by Agent) and other risks, in amounts, with endorsements same geographic area and with insurers (with a Best Rating such insurance companies of at least A7, unless standing and reputation no less favorable than those companies reflected on Schedule 7.1.2 or are otherwise approved by Agent) reasonably satisfactory to Administrative Agent. Schedule 7.1.2 describes all insurance of Borrowers in effect on the date hereof. All proceeds payable under each such policy shall be payable to Administrative Agent (subject for application to the terms of the Intercreditor Agreement)Obligations. From time to time upon Agent’s request therefor, Borrower Borrowers shall deliver to Agent the originals or certified copies of its insurance such policies and any updated flood plain searches conducted by Borrower or at Borrowerto Administrative Agent with satisfactory lender’s request, if any. Unless loss payable endorsements reasonably satisfactory to Administrative Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing naming Administrative Agent as sole lender’s loss payee payee, mortgagee, assignee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject appropriate. Each policy of insurance or endorsement shall contain a clause requiring the insurer to the terms of the Intercreditor Agreement); (ii) requiring give not less than 30 days prior written notice to Administrative Agent in the event of cancellation of the policy for any reason whatsoever; whatsoever other than non-payment of premiums (in which case 10 days prior written notice shall be required) and (iii) specifying that otherwise including those provisions contained in the interest form of Agent shall not be impaired or invalidated by any act or neglect of Borrower or the owner of the Property, nor endorsement provided to Borrowers by the occupation of Administrative Agent on the premises for purposes more hazardous than are permitted by the policyClosing Date. If any Borrower fails to provide and pay for any such insurance, Administrative Agent may, at its option, but shall not be required to, procure the insurance same and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to Administrative Agent, promptly as rendered, true copies of all material reports made in any reporting forms to insurance companies. While For so long as no Event of Default exists, each Borrower may shall have the right to settle, adjust or and compromise any claim with respect to any insurance maintained by such Borrower; provided, that all proceeds thereof are applied in the manner specified in this Agreement, and Administrative Agent agrees promptly to provide any necessary endorsement to any checks or drafts issued in payment of any such claim, as long as the proceeds are delivered to Agent. If At any time that an Event of Default exists, only Administrative Agent shall be authorized to settle, adjust and compromise such claims, Administrative Agent shall have all rights and remedies with respect to such policies of insurance as are provided for in this Agreement and the other Loan Documents.

Insurance of Collateral; Condemnation Proceeds. (ia) Each Borrower shall maintain property, casualty and liability insurance with respect insurers rated A+ or better by Best Rating Guide, or with insurers that such Borrower believes (in its business judgment) are financially sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts (after giving effect to any self-insurance) as such Borrower believes is reasonable and prudent in light of the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood size and nature of its business and against at least such risks (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers such risk retentions) as such Borrower believes (with a Best Rating in its business judgment) are reasonable and prudent in light of at least A7, unless otherwise approved by Agent) satisfactory to Agentthe size and nature of its business. All proceeds under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Section 8.6.2(c) below. From time to time upon Agent’s request thereforreasonable request, Borrower Borrowers shall deliver to Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anyto Agent. Unless Agent shall agree otherwise, each policy (other than policies with respect to which such endorsements are not customary) shall include reasonably satisfactory endorsements (i) showing Agent as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement); appropriate, (ii) requiring 30 days prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever; , and (iii) specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay for any such insurance, Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to Agent, promptly as rendered, copies of all material reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust adjust, or compromise any insurance claim, as long as the proceeds are delivered to Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust adjust, and compromise such claims. Agent acknowledges and agrees that the insurance currently maintained by Borrowers, as evidenced by the certificates or policies provided by Borrowers to Agent, satisfied the requirements of this Section 8.6.2(a) as of the Closing Date.

Insurance of Collateral; Condemnation Proceeds. (i) Borrower Each Obligor shall maintain maintain, with financially sound and reputable insurance companies, insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating rating of at least A7A-, unless otherwise approved by AgentAgent in its Permitted Discretion) reasonably satisfactory to Agent. All proceeds under each policy shall be payable to Agent (Agent, subject to the terms rights of the Term Agent with respect to Term Priority Collateral in accordance with the Intercreditor Agreement). From time to time upon Agent’s request thereforreasonable request, Borrower Obligors shall deliver to Agent the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anypolicies. Unless Agent shall agree otherwise, each policy shall include customary endorsements reasonably satisfactory endorsements to Agent (i) showing Agent as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) requiring 30 days (or 10 days with respect to failure to pay premiums) prior written notice to Agent in the event of cancellation of the policy for any reason whatsoever; and (iii) where customary, specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect of Borrower any Obligor or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If Borrower any Obligor fails to provide and pay for any insurance, Agent may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Borrower agrees to deliver to Agent, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Obligors may settle, adjust or compromise any insurance claim, as long as the proceeds of any Term Priority Collateral (other than proceeds from workers' compensation or D&O insurance, if applicable) are delivered to Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust and compromise such claimsclaims (other than claims with respect to workers' compensation or D&O insurance, if applicable), subject to the rights of the Revolving Loan Agent in ABL Priority Collateral in accordance with the Intercreditor Agreement.

Insurance of Collateral; Condemnation Proceeds. (i) Borrower shall maintain and pay for insurance with respect to the upon all Collateral, wherever located, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and such other risks, risks in amounts, with endorsements such amounts and with insurers (with a Best Rating of at least A7, unless otherwise approved by Agent) such insurance companies as are reasonably satisfactory to AgentLender. All proceeds payable under each such policy shall be payable to Agent (subject Lender for application to the terms of the Intercreditor Agreement)Obligations. From time to time upon Agent’s request therefor, Borrower shall deliver to Agent the originals or certified copies of its insurance such policies and any updated flood plain searches conducted by Borrower or at Borrower’s requestto Lender with satisfactory lender's loss payable endorsements reasonably satisfactory to Lender naming Lender as loss payee, if any. Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements (i) showing Agent as sole loss payee assignee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject appropriate. Each policy of insurance or endorsement shall contain a clause requiring the insurer to the terms of the Intercreditor Agreement); (ii) requiring give not less than 30 days prior written notice to Agent Lender in the event of cancellation of the policy for any reason whatsoever; whatsoever and (iii) a clause specifying that the interest of Agent Lender shall not be impaired or invalidated by any act or neglect of Borrower or the owner of the Property, nor Property or by the occupation of the premises for purposes more hazardous than are permitted by the said policy. If Borrower fails to provide and pay for any such insurance, Agent Lender may, at its option, but shall not be required to, procure the insurance same and charge Borrower therefor. Borrower agrees to deliver to AgentLender, promptly as rendered, true copies of all reports made in any reporting forms to insurance companies. While For so long as no Event of Default exists, Borrower may shall have the right to settle, adjust or and compromise any claim with respect to any insurance maintained by Borrower provided that all proceeds thereof are applied in the manner specified in this Agreement, and Lender agrees promptly to provide any necessary endorsement to any checks or drafts issued in payment of any such claim, as long as the proceeds are delivered to Agent. If At any time that an Event of Default exists, only Agent Lender shall be authorized to settle, adjust and compromise such claims, and Lender shall have all rights and remedies with respect to such policies of insurance as are provided for in this Agreement and the other Loan Documents.

Insurance of Collateral; Condemnation Proceeds. (ia) Subject to the provisions of Section 7.8 hereof, each Borrower shall maintain insurance with respect to the Collateral, covering casualty, hazard, public liability, theft, malicious mischief, flood (to the extent reasonably required by Agent) and other risks, in amounts, with endorsements and with insurers (with a Best Rating rating of at least A7A+, unless otherwise approved by AgentLender in its discretion) satisfactory to AgentLender. All Subject to the provisions of Section 7.8 hereof, proceeds under each policy shall be payable to Agent (subject to the terms of the Intercreditor Agreement)Lender. From time to time upon Agent’s request thereforrequest, Borrower Borrowers shall deliver to Agent Lender the originals or certified copies of its insurance policies and any updated flood plain searches conducted by Borrower or at Borrower’s request, if anysearches. Unless Agent Lender shall agree otherwise, each policy shall include satisfactory endorsements (i) showing Agent Lender as sole loss payee or additional insured, as appropriate Sport Chalet: Term Loan Agreement (and subject to the terms of the Intercreditor Agreement)payee; (ii) requiring 30 days days’ (or 10 days’ in the case of non-payment of premium) prior written notice to Agent Lender in the event of cancellation of the policy for any reason whatsoever; and (iii) specifying that the interest of Agent Lender shall not be impaired or invalidated by any act or neglect of any Borrower or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the policy. If any Borrower fails to provide and pay for any insurance, Agent Lender may, at its option, but shall not be required to, procure the insurance and charge Borrower Borrowers therefor. Each Borrower agrees to deliver to AgentLender, promptly as rendered, copies of all reports made to insurance companies. While no Event of Default exists, Borrower Borrowers may settle, adjust or compromise any insurance claim, as long as the proceeds are delivered to AgentLender. If Subject to the provisions of Section 7.8 hereof, if an Event of Default exists, only Agent Lender shall be authorized to settle, adjust and compromise such claims.