Exhibit
10.11
AGREEMENT TO PROVIDE
INSURANCE
(Commercial-Non Real
Estate)
(Inventory/Equipment/Contents)
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Borrower:
PREMIER POWER RENEWABLE ENERGY, INC.
4961
Windplay Drive, #100
El
Dorado Hill, CA 95762
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Lender: UMPQUA BANK
2998
Douglas Blvd., Suite 100
Roseville,
CA 95661
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INSURANCE
REQUIREMENTS . PREMIER
POWER RENEWABLE ENERGY, INC., a Delaware corporation ("
Grantor "), understands that insurance coverage is required
in connection with the Loan, pursuant to the Loan Agreement dated
July 13, 2009, by and between Grantor and UMPQUA BANK, an Oregon
corporation (“ 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 "):
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Described in
Exhibit A attached hereto.
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Hazard : Hazard coverage for perils of fire, extended
coverage, special extended coverage (including theft coverage if
loan is covering inventory/equipment) on a replacement cost basis,
in an amount within at least 80% of replacement of property. Policy
should include Agreed Amount Clause. Maximum deductible of
$10,000.00. Policy should include Agreed Amount Clause. Policy
shall show Lender as loss payee .
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Flood : Flood coverage, if covered property, whether
equipment, inventory, contents, etc., is located in “A”
or ”V” Zone. Policy shall show Lender as loss
payee .
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Wind
Coverage : Wind coverage
including any named windstorm restrictions, exclusions, specific
deductibles or sublimits must be indicated on certificate or
evidence of property form along with builder’s risk or hazard
insurance.
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General
Liability : Minimum
coverage of $1,000,000.00. Include coverage for liability the
Grantor assumes under contract or agreement and coverage for
independent contractors. Policy shall provide an Additional
Insured endorsement in favor of Lender. Policy shall provide a
Waiver of Subrogation endorsement in favor of
Lender.
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Business
Auto : Minimum coverage
of $1,000,000.00. Coverage to include hired and non-owned
liability. Policy shall provide an Additional Insured
endorsement in favor of Lender. Policy shall provide a Waiver of
Subrogation endorsement in favor of Lender.
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Workers
Compensation :
Statutory/Employer’s Liability coverage of $500,000.Coverage
for all employees and independent contractors. Policy shall provide
a Waiver of Subrogation endorsement in favor of
Lender.
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Excess
Liability : Policy should
be excess over all liability policies and include Defense costs.
Policy shall provide an Additional Insured endorsement in
favor of Lender. Policy shall provide a Waiver of
Subrogation endorsement in favor of Lender.
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Endorsements . 438 BFU (Lender’s Loss Payable
Endorsement) must be attached to all policies and binders. All
policies and binders shall expressly provide by written endorsement
that the insurance shall not be cancelled, surrendered, non-renewed
or modified, unless thirty (30) days advance written notice is
given to Lender.
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