Agreement to Provide Insurance between Sheer Vision, Inc. and Vineyard Bank
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Summary
Sheer Vision, Inc. agrees to maintain insurance coverage on all inventory and equipment as collateral for a $300,000 loan from Vineyard Bank. The insurance must cover all risks, including fire, theft, and liability, at full replacement value, and name Vineyard Bank as loss payee. If Sheer Vision, Inc. fails to provide or maintain the required insurance, Vineyard Bank may obtain insurance at Sheer Vision's expense. The agreement specifies the minimum coverage, deductible, and delivery requirements, and authorizes the lender to share relevant information with insurers.
EX-10.11 17 c41656_ex10-11.txt Ex - 10.11 AGREEMENT TO PROVIDE INSURANCE
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "***" has been omitted due to text length limitations. - --------------------------------------------------------------------------------
================================================================================ INSURANCE REQUIREMENTS. Grantor, SHEER VISION, INC. ("Grantor"), understands that insurance coverage is required in connection with the extending of a loan or the providing of other financial accommodations to Grantor by Lender. These requirements are set forth in the security documents for the loan. The following minimum insurance coverages must be provided on the following described collateral (the "Collateral"): COLLATERAL: ALL INVENTORY AND EQUIPMENT. TYPE: All risks, including fire, theft and liability. AMOUNT: Full Insurable Value. BASIS: Replacement value. ENDORSEMENTS: Certificate of Insurance to name Vineyard Bank as Loss Payee/Mortgagee. Lender's Loss Payable Endorsement; and further stipulating that coverage will not be cancelled or diminished without a minimum of 10 days prior written notice to Lender. DEDUCTIBLES: $500.00. LATEST DELIVERY DATE: By the loan closing date. INSURANCE COMPANY. Grantor may obtain insurance from any insurance company Grantor may choose that is reasonably acceptable to Lender. Grantor understands that credit may not be denied solely because insurance was not purchased through Lender. INSURANCE MAILING ADDRESS. All documents and other materials relating to insurance for this loan should be mailed, delivered or directed to the following address: Vineyard Bank Credit Administration P.O. Box 2319 Corona, CA ###-###-#### FAILURE TO PROVIDE INSURANCE. Grantor agrees to deliver to Lender, on the latest delivery date stated above, proof of the required insurance as provided above, with an effective date of December 7, 2005, or earlier. Grantor acknowledges and agrees that if Grantor fails to provide any required insurance or fails to continue such insurance in force, Lender may do so at Grantor's expense as provided in the applicable security document. The cost of any such insurance, at the option of Lender, shall be added to the indebtedness as provided in the security document. GRANTOR ACKNOWLEDGES THAT IF LENDER SO PURCHASES ANY SUCH INSURANCE, THE INSURANCE WILL PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE TO THE COLLATERAL, UP TO AN AMOUNT EQUAL TO THE LESSER OF (1) THE UNPAID BALANCE OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE CHARGES, OR (2) THE VALUE OF THE COLLATERAL; HOWEVER, GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL RESPONSIBILITY LAWS. AUTHORIZATION. For purposes of insurance coverage on the Collateral, Grantor authorizes Lender to provide to any person (including any insurance agent or company) all information Lender deems appropriate, whether regarding the Collateral, the loan or other financial accommodations, or both. GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED DECEMBER 7, 2005. GRANTOR: SHEER VISION, INC. By: /s/ Suzanne Lewsadder --------------------------------------------- Suzanne Lewsadder, President of SHEER VISION, INC. - -------------------------------------------------------------------------------- FOR LENDER USE ONLY INSURANCE VERIFICATION DATE: 12-09-05 PHONE ###-###-#### ______________________ AGENT'S NAME: Hartford Casualty Ins. Co AGENCY: ________________________________ INSURANCE COMPANY: Hartford Casualty Ins. Co POLICY NUMBER: 72 3BA AC9541 EFFECTIVE DATES: 10-16-2005 - 10-16-2006 ________________________________________________________________________________ COMMENTS: ______________________________________________________________________ ________________________________________________________________________________ - --------------------------------------------------------------------------------
