Common use of Insurance Undertakings Clause in Contracts

Insurance Undertakings. The Lessee hereby covenants with the Lessor and undertakes that throughout the Lease Period and thereafter, whilst the Lessee continues to have possession of the Ship, until the sale of the Ship (other than a sale to the Standby Purchaser), it will: 16.1.1 Insured risks, amounts and terms insure and keep the Ship insured free of cost and expense to the Lessor and in the joint names of the Lessee, the Sub-Lessee and the Lessor (but without liability on the part of the Lessor for premiums or calls) in connection with the operation of the Ship (each as their interests may appear): (a) against fire and usual marine risks (including excess risks) and war risks, on an agreed value basis, in such amounts (but not in any event for an amount less than whichever shall be the greater of (i) the market value of the Ship for the time being and (ii) such amount as shall from time to time be not less than the aggregate, from time to time, of (A) the amount of the Strip Liability Amount and (B) the aggregate amount of insurance required to be placed by the Lessee by persons other than the Lessor and in whose favour the Lessee has created a prior ranking Encumbrance in respect of the Insurances and which is determined independently of the market value of the Ship; (b) against protection and indemnity risks (including pollution risks) for the highest amount (but, in the case of pollution risks, for a minimum amount of one billion Dollars ($1,000,000,000) (or such other amount as is from time to time deemed to be the maximum insurable amount of the International Group of Protection and Indemnity Associations)) in respect of which cover is in accordance with customary insurance market practice taken out for vessels of the same type, size, age and flag as the Ship) for the full tonnage of the Ship (as approved in writing by the Lessor) and upon such terms as shall from time to time be approved in writing by the Lessor; and (c) in respect of such other matters of whatsoever nature and howsoever arising in respect of which insurance would be maintained by a prudent owner of the Ship, and that it will pay to the Lessor the cost (as conclusively certified by the Lessor) of any (aa) innocent owner's insurance which the Lessor may from time to time effect in respect of the Ship upon such terms and in such amounts as shall from time to time be approved in writing by the Lessor and (bb) any other insurance cover which the Lessor may from time to time require to be effected in respect of the Ship and/or in respect of its interest or potential liability as owner and/or lessor of the Ship as the Lessor shall deem desirable having regard to any limitations in respect of the amount or extent of cover which may from time to time be applicable in any of the other insurances referred to in this clause 16.1.1 and also having regard to such insurance cover which from time to time it is customary for finance lessors such as the Lessor to effect in respect of similar transactions to the transaction constituted by this Lease and the other Relevant Documents. Notwithstanding the above, if at any time the Lessor proposes to effect any insurance of the nature referred to at (aa) or (bb) above, the Lessor shall first notify the Lessee of the insurance which it proposes to effect, the terms on which it requires it to be effected and the date from which it requires it to be so effected. If, before the date on which the Lessor requires that insurance to be effected, the Lessee can demonstrate to the Lessor that a firm of insurance brokers with a reputation acceptable to the Lessor is able to arrange that insurance upon those terms, before that date, for a price lower than that for which any firm of insurance brokers nominated by the Lessor is prepared to arrange that insurance and with underwriters acceptable to the Lessor, and if that firm of insurance brokers will enter into such agreements with the Lessor as the Lessor may require taking into account the identity of that firm of insurance brokers, the Lessor shall not unreasonably refuse to effect that insurance through that firm of insurance brokers so nominated by the Lessee; 16.1.2 Brokers insurers and general terms of insurance effect the Insurances aforesaid in Sterling or Dollars or such other currency as the Lessor may approve and through the Approved Brokers (other than the said innocent owners and contingent liability insurance which may be effected through brokers nominated by the Lessor) and with such insurance companies and/or underwriters or a mutual insurance association or club as shall from time to time be approved in writing by the Lessor and upon such terms as shall from time to time be approved in writing by the Lessor, such approval not to be unreasonably withheld, it being agreed that, without limitation, it shall not be unreasonable to withhold such approval if withholding such approval is consistent with the insurance report referred to in clause 16.1.12 or the advice of the brokers producing such report;

Insurance Undertakings. The Lessee Charterer hereby covenants with the Lessor Owner and undertakes that throughout the Lease Charta Period and thereafter, whilst the Lessee continues to have possession of the Ship, thereafter until the sale of the Ship (other than a sale pursuant to the Standby Purchaser), any provision of this Charterparty it will: 16.1.1 (a) Insured risks, amounts and terms Risks insure and keep the Ship insured free of cost and expense to the Lessor Owner and in the joint names of the Lessee, the Sub-Lessee Charterer and the Lessor Owner (but without liability on the part of the Lessor Owner for premiums or calls) and, at the request of the Charterer, the Manager or other third party providing specialist services to the Charterer in connection with the operation of the Ship (each as their interests may appear): (ai) against fire and usual marine risks (including excess risks) and war risks, on an agreed value basis, in such amounts (but not in any event for an amount less than whichever shall be the greater of (i) the market value of the Ship for the time being and One hundred and ten per cent (ii110%) such amount as shall from time to time be not less than the aggregate, from time to time, of (A) the amount of the Strip Liability Amount and (B) maximum Termination Sum applicable during the aggregate amount of insurance required to be placed by the Lessee by persons other than the Lessor and in whose favour the Lessee has created a prior ranking Encumbrance in respect period of the Insurances and which is determined independently of the market value of the Ship; (b) against protection and indemnity risks (including pollution risks) for the highest amount (but, in the case of pollution risks, for a minimum amount of one billion Dollars ($1,000,000,000) (or such other amount as is from time to time deemed to be the maximum insurable amount of the International Group of Protection and Indemnity Associations)) in respect of which cover is in accordance with customary insurance market practice taken out for vessels of the same type, size, age and flag as the Ship) for the full tonnage of the Ship (as approved in writing by the Lessorpolicy) and upon such terms as shall from time to time be approved in writing by the LessorOwner; (ii) against protection and indemnity risks (including pollution risks) for the full value and tonnage of the Ship in a protection and indemnity association (as approved in writing by the Owner) for a full and unlimited entry (other than for oil pollution risks which shall be for a minimum sum of U.S.$500,000,000 or equivalent thereof) and upon such terms as shall from time to time be approved in writing by the Owner; and (ciii) in respect of such other matters of whatsoever nature and howsoever arising in respect of which insurance would be maintained by a prudent owner of the Ship, and that it will pay to the Lessor the cost (as conclusively certified by the Lessor) of any (aa) innocent owner's insurance which the Lessor may from time to time effect in respect of the Ship upon such terms and in such amounts as shall from time to time be approved in writing by the Lessor and (bb) any other insurance cover which the Lessor may from time to time require to be effected in respect of the Ship and/or in respect of its interest or potential liability as owner and/or lessor of the Ship as the Lessor shall deem desirable having regard to any limitations in respect the financial resources and liabilities of the amount or extent Charterer and to the situation and method of cover which may from time to time be applicable in any operation of the other insurances referred to in this clause 16.1.1 and also having regard to such insurance cover which from time to time it is customary for finance lessors such as the Lessor to effect in respect of similar transactions to the transaction constituted by this Lease and the other Relevant Documents. Notwithstanding the above, if at any time the Lessor proposes to effect any insurance of the nature referred to at (aa) or (bb) above, the Lessor shall first notify the Lessee of the insurance which it proposes to effect, the terms on which it requires it to be effected and the date from which it requires it to be so effected. If, before the date on which the Lessor requires that insurance to be effected, the Lessee can demonstrate to the Lessor that a firm of insurance brokers with a reputation acceptable to the Lessor is able to arrange that insurance upon those terms, before that date, for a price lower than that for which any firm of insurance brokers nominated by the Lessor is prepared to arrange that insurance and with underwriters acceptable to the Lessor, and if that firm of insurance brokers will enter into such agreements with the Lessor as the Lessor may require taking into account the identity of that firm of insurance brokers, the Lessor shall not unreasonably refuse to effect that insurance through that firm of insurance brokers so nominated by the LesseeShip; 16.1.2 Brokers insurers and general terms of insurance effect the Insurances aforesaid in Sterling or Dollars or such other currency as the Lessor may approve and through the Approved Brokers (other than the said innocent owners and contingent liability insurance which may be effected through brokers nominated by the Lessor) and with such insurance companies and/or underwriters or a mutual insurance association or club as shall from time to time be approved in writing by the Lessor and upon such terms as shall from time to time be approved in writing by the Lessor, such approval not to be unreasonably withheld, it being agreed that, without limitation, it shall not be unreasonable to withhold such approval if withholding such approval is consistent with the insurance report referred to in clause 16.1.12 or the advice of the brokers producing such report;

Insurance Undertakings. The Lessee Hirer hereby covenants with the Lessor Owner and undertakes that throughout the Lease Hire Period and thereafter, whilst the Lessee continues to have possession of the Ship, until the sale of the Ship (other than a sale to the Standby Purchaser), it will: 16.1.1 (a) Insured risks, amounts and terms Risks insure and keep the Ship insured free of cost and expense to the Lessor Owner and in the joint names of the Lessee, the Sub-Lessee Hirer and the Lessor Owner (but without liability on the part of the Lessor Owner for premiums or calls) in connection with the operation of the Ship (each as their interests may appear): (ai) against fire and usual marine risks (including excess risks) and war risks, on an agreed value basisbasis or such other basis as shall be agreed by the Owner, in such amounts (but not in any event for an amount less than whichever shall be the greater of (i) the market value of the Ship for the time being and (ii) such amount as shall from time to time be not less than the aggregate, from time to time, of one hundred and ten per cent (A110%) the amount of the Strip Liability Amount and (B) maximum Termination Sum applicable during the aggregate amount of insurance required to be placed by the Lessee by persons other than the Lessor and in whose favour the Lessee has created a prior ranking Encumbrance in respect period of the Insurances and which is determined independently of the market value of the Ship; (b) against protection and indemnity risks (including pollution risks) for the highest amount (but, in the case of pollution risks, for a minimum amount of one billion Dollars ($1,000,000,000) (or such other amount as is from time to time deemed to be the maximum insurable amount of the International Group of Protection and Indemnity Associations)) in respect of which cover is in accordance with customary insurance market practice taken out for vessels of the same type, size, age and flag as the Ship) for the full tonnage of the Ship (as approved in writing by the Lessorpolicy) and upon such terms as shall from time to time be approved in writing by the LessorOwner; (ii) against protection and indemnity risks (including pollution risks) for the full value and tonnage of the Ship (as approved in writing by the Owner) and upon such terms as shall from time to time be approved in writing by the Owner; and (ciii) in respect of such other matters of whatsoever nature and howsoever arising in respect of which insurance would be maintained by a prudent owner of the Ship having regard to the financial resources and liabilities of the Hirer and to the situation and method of operation of the Ship, ; and that it will pay to the Lessor Owner the cost (as conclusively certified by the LessorOwner) of any (aa) innocent owner's insurance and Additional Perils protection which the Lessor Owner may from time to time effect in respect of the Ship upon such terms and in such amounts as shall from time to time be approved in writing by the Lessor (not exceeding one hundred and ten per cent (bb110%) any other insurance cover which the Lessor may from time to time require to be effected in respect of the Ship and/or in respect of its interest or potential liability as owner and/or lessor maximum Termination Sum applicable during the period of the Ship policy) as the Lessor it shall deem desirable having regard to any limitations in respect of the amount or extent of cover which may from time to time be applicable in any of the other insurances referred to in this clause 16.1.1 and also having regard to such insurance cover which from time to time it is customary for finance lessors such as the Lessor to effect in respect of similar transactions to the transaction constituted by this Lease and the other Relevant Documents. Notwithstanding the above, desirable; Provided that if at any time the Lessor proposes to effect Owner reasonably considers that any change in circumstances may occur or has occurred which, in the opinion of the Owner, may materially affect, or has materially affected, the insurance of the nature referred Ship, then the Owner shall be entitled (without prejudice to at (aa) any other rights which it may have or (bb) aboveacquire under this Agreement), if in the Lessor shall first notify the Lessee reasonable opinion of the Owner there is no other appropriate action to prevent such material effect on the insurance which it proposes of the Ship, to effect, require the Ship to remain at any safe port or to proceed to and remain at any safe port designated by the Owner until the Owner shall have implemented any amendments to the terms on which it requires it to be effected of such insurance and the date from which it requires it to be so effected. If, before the date on any operational changes which the Lessor requires that insurance to be effected, the Lessee can demonstrate to the Lessor that Owner considers are required as a firm result of insurance brokers with a reputation acceptable to the Lessor is able to arrange that insurance upon those terms, before that date, for a price lower than that for which any firm of insurance brokers nominated by the Lessor is prepared to arrange that insurance and with underwriters acceptable to the Lessor, and if that firm of insurance brokers will enter into such agreements with the Lessor as the Lessor may require taking into account the identity of that firm of insurance brokers, the Lessor shall not unreasonably refuse to effect that insurance through that firm of insurance brokers so nominated by the Lesseechange in circumstances; 16.1.2 Brokers insurers and general terms of insurance effect the Insurances aforesaid in Sterling or Dollars or such other currency as the Lessor may approve and through the Approved Brokers (other than the said innocent owners and contingent liability insurance which may be effected through brokers nominated by the Lessor) and with such insurance companies and/or underwriters or a mutual insurance association or club as shall from time to time be approved in writing by the Lessor and upon such terms as shall from time to time be approved in writing by the Lessor, such approval not to be unreasonably withheld, it being agreed that, without limitation, it shall not be unreasonable to withhold such approval if withholding such approval is consistent with the insurance report referred to in clause 16.1.12 or the advice of the brokers producing such report;