Common use of Protection of Collateral Agent’s Security Clause in Contracts

Protection of Collateral Agent’s Security. Each Assignor covenants that it will do nothing to impair the rights of the Collateral Agent in the Collateral. If any Assignor shall fail to insure any Inventory and Equipment constituting Collateral in accordance with the terms of Section 7.8 of the Credit Agreement, the Collateral Agent shall have the right (but shall be under no obligation) to procure such commercially reasonable insurance and such Assignor agrees to reimburse the Collateral Agent for all costs and expenses of procuring such commercially reasonable insurance, and the Collateral Agent may apply any proceeds of such insurance in accordance with Section 8.4. Each Assignor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Assignor to satisfy its Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor, except due to the gross negligence or willful misconduct of the Collateral Agent.

Protection of Collateral Agent’s Security. Each Except as otherwise permitted by the Secured Debt Agreements, each Assignor covenants that it will do nothing to impair the rights of the Collateral Agent in the Collateral. Each Assignor or an affiliate on behalf of such Assignor will at all times maintain insurance, at such Assignor’s own expense to the extent and in the manner provided in the Secured Debt Agreements. If any Assignor Event of Default shall fail to insure any Inventory have occurred and Equipment constituting Collateral in accordance with the terms of Section 7.8 of the Credit Agreementbe continuing, the Collateral Agent shall have shall, at the right (but shall be under no obligation) to procure such commercially reasonable insurance and such Assignor agrees to reimburse the Collateral Agent for all costs and expenses of procuring such commercially reasonable insurance, and the Collateral Agent may apply time any proceeds of such insurance are distributed to the Secured Creditors, apply such proceeds in accordance with Section 8.47.4 hereof. Each Assignor assumes all liability and responsibility in connection with the Collateral acquired by it and the liability of such Assignor to satisfy its pay the Obligations shall in no way be affected or diminished by reason of the fact that such Collateral may be lost, destroyed, stolen, damaged or for any reason whatsoever unavailable to such Assignor, except due to the gross negligence or willful misconduct of the Collateral Agent.