Common use of War Risks Clause in Contracts

War Risks. The Credit Parties shall at all times maintain insurance (or its equivalent) covering War Risks on all of the Mortgaged Revolving Credit Facility Rigs; provided, however, that (i) if the premiums associated therewith increase by more than 30% above the premiums in effect on the Closing Date, as certified in writing by the Parent Company's independent maritime insurance broker, then the Credit Parties shall only be obligated to maintain insurance (or its equivalent) covering War Risks on Mortgaged Revolving Credit Facility Rigs, so that the aggregate amount of War Risk coverage is not less than 150% of the Total Revolving Commitments, and including, in any event, the Pride South Pacific and each of the Mortgaged Revolving Credit Facility Rigs that have a Market Value equal to or greater than $40,000,000 (as set forth in the most recent Rig Appraisal Reports covering such Mortgaged Revolving Credit Facility Rig) located outside of the Gulf of Mexico shall remain at all times covered against War Risks by insurance (or its equivalent) by the Credit Parties; and (ii) if from time to time, insurance (or its equivalent) covering War Risks becomes unavailable in certain geographical areas, as certified in writing by the Parent Company's independent maritime insurance broker, then the Credit Parties shall maintain insurance (or its equivalent) covering War Risks on such other unaffected Mortgaged Revolving Credit Facility Rigs so that the aggregate amount of War Risk coverage is not less than 150% of the Total Revolving Commitments. Promptly after such insurance (or its equivalent) covering War Risks becomes available again, then the Credit Parties shall reinstate the coverage set forth in clause (i) above. The Credit Parties shall arrange for the execution of such guarantees as may from time to time be required by any war risks association.

War Risks. The Credit Parties shall at all times maintain insurance (or its equivalent) covering War Risks on all of the Mortgaged Revolving Credit Term Loan Facility Rigs; provided, however, that (i) if the premiums associated therewith increase by more than 30% above the premiums in effect on the Closing Date, as certified in writing by the Parent Company's independent maritime insurance broker, then the Credit Parties shall only be obligated to maintain insurance (or its equivalent) covering War Risks on Mortgaged Revolving Credit Term Loan Facility Rigs, so that the aggregate amount of War Risk coverage is not less than 150% of the Total Revolving CommitmentsTerm Loans, and including, in any event, the Pride South Pacific North America and each of the Mortgaged Revolving Credit Term Loan Facility Rigs that have a Market Value equal to or greater than $40,000,000 (as set forth in the most recent Rig Appraisal Reports covering such Mortgaged Revolving Credit Term Loan Facility Rig) located outside of the Gulf of Mexico shall remain at all times covered against War Risks by insurance (or its equivalent) by the Credit Parties; and (ii) if from time to time, insurance (or its equivalent) covering War Risks becomes unavailable in certain geographical areas, as certified in writing by the Parent Company's independent maritime insurance broker, then the Credit Parties shall maintain insurance (or its equivalent) covering War Risks on such other unaffected Mortgaged Revolving Credit Term Loan Facility Rigs so that the aggregate amount of War Risk coverage is not less than 150% of the Total Revolving CommitmentsTerm Loans. Promptly after such insurance (or its equivalent) covering War Risks becomes available again, then the Credit Parties shall reinstate the coverage set forth in clause (i) above. The Credit Parties shall arrange for the execution of such guarantees as may from time to time be required by any war risks association.