Party Liability
Insurance; and
(C)
CAUSE THE LAUNCH SERVICES PROVIDER TO SUBMIT
A COPY OF THE THIRD PARTY LIABILITY INSURANCE DOCUMENTATION TO THE COFACE AGENT
AS SOON AS PRACTICABLE AND IN ANY EVENT NO LESS THAN THIRTY (30) DAYS PRIOR TO
THE SCHEDULED LAUNCH DATE FOR ANY LAUNCH.
SUCH INSURANCE SHALL BE IN FULL FORCE
AT THE LAUNCH DATE (AS OF INTENTIONAL IGNITION (AS SUCH TERM IS DEFINED IN THE
LAUNCH SERVICES CONTRACT)) AND SHALL BE MAINTAINED FOR A PERIOD EQUAL TO THE
LESSER OF:
(aa)
twelve (12) Months; or
(bb)
so long as all or any part of the Launch Vehicle
(as such term is defined in the Launch Services Contract), the
Satellite(s) and/or their components remain in orbit.
(D)
EACH INSURANCE POLICY SHALL COMPLY WITH THE
LENDERS' REQUIREMENTS SET OUT IN CLAUSE 21.4(E) BELOW AND SHALL BE ON REASONABLE
TERMS AND CONDITIONS AND WITH ACCEPTABLE EXCLUSIONS AND A REASONABLE LEVEL OF
DEDUCTIBLE ACCEPTABLE TO THE COFACE AGENT (ACTING ON THE INSTRUCTIONS OF THE
MAJORITY LENDERS).
(E)
GENERAL INSURANCE PROVISIONS AND
REQUIREMENTS
The Borrower shall:
(I)
PROVIDE, OR AS APPROPRIATE, REQUEST THE
SUPPLIER AND/OR THE LAUNCH SERVICES PROVIDER TO DELIVER TO THE COFACE AGENT,
PROMPTLY AFTER ISSUANCE OF EACH RELEVANT INSURANCE, CERTIFICATE(S) OF
INTERNATIONALLY RECOGNISED INSURANCE BROKER(S) USUALLY INVOLVED IN SPACE RISK
INSURANCE AND APPROVED BY THE LENDERS, CONFIRMING THAT:
(A)
THE PROPERTY ALL RISKS INSURANCE, THE LAUNCH
INSURANCE AND THE THIRD PARTY LIABILITY INSURANCE, AS APPROPRIATE, ARE IN FULL
FORCE AND EFFECT ON THE DATE THEY ARE RESPECTIVELY REQUIRED TO BE ENTERED INTO
FORCE,
(B)
THE NAMES AND PERCENTAGES OF THE RELEVANT
INSURANCE COMPANIES;
(C)
THE SUMS INSURED AND EXPIRATION DATES OF SUCH
INSURANCES;
(D)
THE PREMIA FOR THE PROPERTY ALL RISKS
INSURANCE, LAUNCH INSURANCE AND THE THIRD PARTY LIABILITY INSURANCES SHALL BE
PAYABLE BY THE BORROWER, THE SUPPLIER AND THE LAUNCH SERVICES PROVIDER, AS
APPLICABLE, IN ACCORDANCE WITH THE TERMS OF CREDIT AGREED FOR EACH SUCH
INSURANCE; AND
(E)
ALL PREMIA DUE AT THE DATE OF SUCH
CERTIFICATE HAVE BEEN PAID IN FULL.
109
(II)
USE REASONABLE EFFORTS (HAVING REGARD TO
THE TERMS WHICH ARE REASONABLY COMMERCIALLY AVAILABLE IN THE INSURANCE MARKET)
TO OBTAIN AGREEMENT TO INCORPORATE IN THE INSURANCES THE FOLLOWING PROVISIONS OR
PROVISIONS SUBSTANTIALLY SIMILAR IN CONTENT:
(A)
THE INSURERS, EITHER DIRECTLY OR VIA THE
INSURANCE BROKER, AND THE BROKER SHALL ALSO ADVISE THE COFACE AGENT (BY
FACSIMILE AND BY E-MAIL) OF ANY LOSS OR OF ANY DEFAULT IN THE PAYMENT OF ANY
PREMIUM AND OF ANY EVENT OTHER ACT OR OMISSION ON THE PART OF THE BORROWER, THE
SUPPLIER AND/OR THE LAUNCH SERVICE PROVIDER, AS APPLICABLE, OF WHICH THE BROKER
OR THE INSURERS HAVE KNOWLEDGE AND WHICH MIGHT RESULT IN THE INVALIDATION, THE
LAPSE OR THE CANCELLATION IN WHOLE OR IN PART OF SUCH INSURANCE;
(B)
THE COFACE AGENT AND/OR THE LENDERS SHALL
HAVE THE RIGHT (WITHOUT ANY OBLIGATION) TO PAY THE INSURANCE PREMIA IF THE
RELEVANT PARTY FAILS TO OR DELAYS IN MAKING ANY SUCH PAYMENT WITHIN THE TIME
PERIODS SPECIFIED IN