ON AN ANNUAL BASIS COVERING CARGO
WORLDWIDE IN THE EVENT OF PHYSICAL LOSS OR DAMAGE FROM EXTERNAL CAUSES IN THE
AMOUNT OF NOT LESS THAN 110% OF THE C.I.F. VALUE, SUCH INSURANCE TO INCLUDE:
(A) WHILE CARGO IS IN THE NORMAL COURSE OF TRANSIT FROM THE POINT OF ORIGIN;
(B) MARINE BUSINESS INTERRUPTION INSURANCE; (C) PROCESSING OF CARGO IN FOREIGN
COUNTRIES; (D) ON-SITE AND OFF-SITE STORAGE AT SPECIFIC LOCATIONS; AND
(E) EXHIBITION COVERAGE;
(XI)
UPON THIRTY (30) DAYS' WRITTEN NOTICE FROM THE AGENT, SUCH OTHER
REASONABLE INSURANCE, IN SUCH REASONABLE AMOUNTS, AS THE REQUIRED LENDERS FROM
TIME TO TIME MAY REASONABLY REQUEST AGAINST SUCH OTHER INSURABLE HAZARDS WHICH
AT THE TIME ARE COMMONLY INSURED AGAINST FOR PROPERTY SIMILAR TO THE PROJECT
LOCATED IN OR AROUND KAPALUA, HAWAII.
82
(B)
ALL INSURANCE PROVIDED FOR IN SECTION 15.2(A) HEREOF SHALL BE
OBTAINED UNDER VALID AND ENFORCEABLE POLICIES (COLLECTIVELY, THE "POLICIES" OR
IN THE SINGULAR, THE "POLICY"), AND SHALL BE SUBJECT TO THE APPROVAL OF THE
REQUIRED LENDERS AS TO INSURANCE COMPANIES, AMOUNTS, DEDUCTIBLES, LOSS PAYEES
AND INSUREDS.
THE POLICIES SHALL BE ISSUED BY FINANCIALLY SOUND AND RESPONSIBLE
INSURANCE COMPANIES AUTHORIZED TO DO BUSINESS IN THE STATE AND HAVING A CLAIMS
PAYING ABILITY RATING OF "A" OR BETTER BY S&P OR "A2" OR BETTER BY MOODY'S. THE
POLICIES DESCRIBED IN SECTION 15.2(A) (OTHER THAN THOSE STRICTLY LIMITED TO
LIABILITY PROTECTION) SHALL DESIGNATE THE AGENT AS LOSS PAYEE. NOT LESS THAN TEN
(10) DAYS PRIOR TO THE EXPIRATION DATES OF THE POLICIES THERETOFORE FURNISHED TO
THE AGENT, CERTIFICATES OF INSURANCE EVIDENCING THE RENEWAL OF THE POLICIES,
ACCOMPANIED BY EVIDENCE SATISFACTORY TO THE AGENT OF PAYMENT OF THE PREMIUMS
THEREUNDER (THE "INSURANCE PREMIUMS"), SHALL BE DELIVERED BY BORROWER TO THE
AGENT.
(C)
ANY BLANKET INSURANCE POLICY SHALL SPECIFICALLY ALLOCATE TO
THE PROJECT THE AMOUNT OF COVERAGE FROM TIME TO TIME REQUIRED HEREUNDER AND
SHALL OTHERWISE PROVIDE THE SAME PROTECTION AS WOULD A SEPARATE POLICY INSURING
ONLY THE PROJECT IN COMPLIANCE WITH THE PROVISIONS OF SECTION 15.2(A) HEREOF.
(D)
ALL POLICIES OF INSURANCE PROVIDED FOR BY
SECTION 15.2(A) HEREOF, EXCEPT FOR THE POLICY REFERRED TO IN
SECTION 15.2(A)(IV) HEREOF, SHALL NAME BORROWER AS THE INSURED AND THE AGENT AS
THE ADDITIONAL INSURED, AS ITS INTERESTS MAY APPEAR, AND IN THE CASE OF PROPERTY
DAMAGE, BOILER AND MACHINERY, FLOOD AND EARTHQUAKE INSURANCE, SHALL CONTAIN A
SO-CALLED NEW YORK STANDARD NON-CONTRIBUTING MORTGAGEE CLAUSE (OR ITS
EQUIVALENT) IN FAVOR OF THE AGENT PROVIDING THAT THE LOSS THEREUNDER SHALL BE
PAYABLE TO THE AGENT.
(E)
ALL POLICIES OF INSURANCE PROVIDED FOR IN
SECTION 15.2(A) HEREOF SHALL CONTAIN CLAUSES OR ENDORSEMENTS TO THE EFFECT THAT;
(I)
NO ACT OR NEGLIGENCE OF BORROWER, OR ANYONE ACTING FOR BORROWER, OR
OF ANY TENANT OR OTHER OCCUPANT OF THE PROJECT, OR FAILURE TO COMPLY WITH THE
PROVISIONS OF ANY POLICY, WHICH MIGHT OTHERWISE RESULT IN A FORFEITURE OF THE
INSURANCE OR ANY PART THEREOF, SHALL IN ANY WAY AFFECT THE VALIDITY OR
ENFORCEABILITY OF THE INSURANCE INSOFAR AS THE AGENT IS CONCERNED;
(II)