Risk Zone Procedures Clause Samples

Risk Zone Procedures. If the FPSO is in, or brought in or ordered within any Risk Zone (even though it may already be at the Operating Area): (i) Risk Zone Insurances. Owner may insure its interest in the FPSO for such terms as it deems fit up to its open market value against any of the risks likely to be involved, and Owner shall provide written notice to Charterer of the amount of any increase in insurance premiums and the period of time such premiums are payable (including the correspondence from the underwriters), and Charterer shall, within five (5) Days of receipt notify Owner whether Charterer will at its sole option, elect to either: (a) pay on demand any additional or increase in the insurance premiums (and for the period of time), paid by Owner; or (b) terminate this Charter, with no further obligations to Owner, except for payment of the Early Termination Payment and subject to Charterer’s rights and obligations under Article 25;