Common use of INSURANCE, DAMAGE OR DESTRUCTION Clause in Contracts

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout the term of this Agreement insurance protection for all risk coverage on the Improvements which are part of the Leased Premises, to the extent of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written by insurers acceptable to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct the Improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to the provisions of Article 5 hereof and applicable building codes and Airport design standards, if any, existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceeds.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout 11.1 In the term event of this Agreement insurance protection for all risk coverage on damage or destruction to any of the Improvements which are part of improvements upon the Leased Premises, the City shall have no obligation to repair or rebuild the extent of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written improvements or any fixtures, equipment or other personal property installed by insurers acceptable Lessee pursuant to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvementsthis agreement. Upon the failure of Lessee to maintain such insurance repair or rebuild the City may, as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to agent of Lessee, repair or rebuild such damage or destruction at the expense of Lessee which expense shall be due and payable on demand, or may give notice of default pursuant but only to Article 18the extent that insurance proceeds are available to Lessee. 8.2 11.2 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed. Nothing herein contained shall be deemed to release the lessee from any of its repair, maintenance or rebuilding obligations under this agreement. 11.3 In the no event the Improvements shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. Lessee agrees that such work will promptly commence and proceed to completion with due diligence; subject to delays beyond Lessee’s control. 11.4 Prior to commencement of any subsequent improvements, insurable or uninsurable, activity permitted on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyedas provided in this lease, Lessee shall promptly repair purchase and reconstruct maintain, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the Improvements substantially Sate of Texas and satisfactory to the Lessor’s Risk Manager. All insurance coverages shall require that the City be named as they were immediately an additional insured, and provide for 30 days written notification to the City prior to such casualty cancellation and provide a written notification of non- payment within 10 days. (a) Fire and Extended Coverage Insurance covering the improvements presently existing on, or hereafter created on the Leased Premises (excluding concrete or asphalt ramps, taxiways, aprons, underground utilities or roadways), against loss or damage by fire, windstorm hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of insurance shall be carried with a company or companies satisfactory to Lessor and in a new an amount of coverage not less than replacement cost of the property dedicated to or modified designnecessary to performance of Lessee’s obligations under this agreement, subject and the policy or policies of insurance shall be issued to the provisions Lessee and Lessor, as their interests may appear. In the event of Article 5 hereof damage to such buildings and applicable building codes structures, Lessee will immediately notify Lessor of the nature and Airport design standards, if any, existing at the time extent of repairing or rebuildingsuch damage. If the aforesaid damage or destruction occurs results in the last five years partial or the total destruction of the Initial term a building, improvement or any option term of this Agreementstructure which has been erected by Lessee, Lessee may elect not mortgagees and assignees agree to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain apply all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, rebuilding of the improvements as is, in which case Lessee shall assign to and approved by the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout 11.1 In the term event of this Agreement insurance protection for all risk coverage on damage or destruction to any of the Improvements which are part of improvements upon the Leased Premises, the City shall have no obligation to repair or rebuild the extent of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written improvements or any fixtures, equipment or other personal property installed by insurers acceptable Lessee pursuant to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvementsthis Restated Agreement. Upon the failure of Lessee to maintain such insurance as above providedrepair or rebuild, the CitiesCity may, as agent of Lessee, repair or rebuild such damage or destruction at their option, may take out such insurance and charge the cost thereof to expense of Lessee, which expense shall be due and payable on demand, or may give notice of default pursuant but only to Article 18the extent that insurance proceeds are available to Lessee. 8.2 11.2 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this Restated Agreement. 11.3 In the no event the Improvements shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. Lessee agrees that such work will promptly commence and proceed to completion with due diligence, subject to delays beyond Lessee’s control. 11.4 Prior to commencement of any subsequent improvements, insurable or uninsurable, activity permitted on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyedas provided in this lease, Lessee shall promptly repair purchase and reconstruct maintain, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the Improvements substantially State of Texas and satisfactory to the Lessor’s Risk Manager. All insurance coverages shall require that the City be named as they were immediately an additional insured (loss payee for property insurance), provide for 30 days written notification to the City prior to such casualty cancellation, provide a written notification of non-payment within 10 days and provide a Waiver of Subrogation in favor of the City. (a) Fire and Extended Coverage Insurance covering the improvements presently existing on, or hereafter created on the Leased Premises (excluding concrete or asphalt ramps, taxiways, aprons, underground utilities or roadways), against loss or damage by fire, windstorm hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of insurance shall be carried with a company or companies satisfactory to Lessor and in a new an amount of coverage not less than replacement cost of the property dedicated to or modified designnecessary to performance of Lessee’s obligations under this Restated Agreement, subject and the policy or policies of insurance shall be issued to the provisions Lessee and Lessor, as their interests may appear. In the event of Article 5 hereof damage to such buildings and applicable building codes structures, Lessee will immediately notify Lessor of the nature and Airport design standards, if any, existing at the time extent of repairing or rebuildingsuch damage. If the aforesaid damage or destruction occurs results in the last five years partial or the total destruction of the Initial term a building, improvement or any option term of this Agreementstructure which has been erected by Lessee, Lessee may elect not mortgagees and assignees agree to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain apply all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, rebuilding of the improvements as is, in which case Lessee shall assign to and approved by the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, A. The Lessee shall procure and maintain maintain, throughout the term of this Agreement Agreement, insurance protection for all risk fire and extended coverage on the Initial Improvements which are part of and other improvements to the Leased Premises, to the extent of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written issued by insurers acceptable of recognized financial standing and authorized to Citiesconduct business in the State of North Dakota. The If said insurers become financially incapable of performing under the terms of said policy, the Lessee will promptly obtain a new policy issued by a financially responsible carrier and shall submit revised evidence of insurance shall provide for ten (10) days' notice of cancellation or material changeas previously provided. If the Lessee is, by certified mailat any time, return receipt requested, unable to obtain such insurance to the Citiesextent required, Attention: Airport Managerthis Agreement shall automatically terminate unless the City is able and elects to insure the Initial Improvements and other improvements and Lessee is willing to pay the City the requisite insurance premiums and administrative charges therefore. 8.1.1 B. The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses directly with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 C. In the event the Initial Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises other improvements are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are is destroyed, the Lessee shall promptly repair and reconstruct have the Improvements election of repairing or reconstructing the improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to design consistent with Lessee's use thereof under the provisions of Article 5 hereof 6 and applicable building Article 10 hereof. D. Lessee shall, at its expense, replace and repair any and all of Lessee's fixtures, equipment and other personal property necessary to properly and adequately continue its operations at the Airport, but in no event shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction except for requirements of construction codes and Airport design standards, if any, existing at the time of repairing repair or rebuilding. If replacement. E. In the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, event Lessee may elect elects not to repair and and/or reconstruct the ImprovementsInitial and New Improvements and other improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give use the Cities written notice of its election not insurance proceeds to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site Leased Premises to its original cleared condition at the commencement of the term hereof to the satisfaction of the City in its sole discretion, the “Restoration,” and this Agreement shall terminate upon completion of the Restoration. F. In the event of damage to or destruction of Airport property caused by the Lessee, its agents, employees, aircraft or other equipment, Lessee agrees to repair, reconstruct, or replace the affected property to the condition which existed prior to commencement such damage or destruction. Lessee further agrees to cause such repair, reconstruction or replacement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title affected property with reasonable due diligence and to the damaged Improvements, as is, in which case Lessee shall assign to and reasonable satisfaction of the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 13.1 Lessee, and all of its tenants and sublessees, shall maintain, at a minimum, the applicable coverage and limits of insurance set forth in the Minimum Standards, as may be amended by County from time to time, included with this Lease as Exhibit F. 13.2 To safeguard the interests of County and Manager, the Lessee, at its sole cost and expense, shall procure and maintain maintain, throughout the term of this Agreement Lease, insurance protection for “all risk risk” coverage on the Improvements structure and improvements, including the improvements described in Exhibit C, of which are part of the Leased PremisesPremises is a part, to the extent of one hundred percent One Hundred Percent (100%) of the actual replacement cost thereof, with insurance companies licensed to do business in the State of California. Such If said insurance company becomes financially incapable of performing under the terms of said policy, the Lessee shall promptly obtain a new policy issued by a financially responsible carrier and shall submit such new policy, as previously provided. 13.2.1 The above-stated property insurance shall be written by insurers acceptable to Cities. The insurance shall name County and Manager as Additional Insureds, provide for ten thirty (1030) days' ’ written notice of cancellation or material change, change by certified mail, return receipt requested, registered mail to the Cities, Attention: Office of the Airport Manager, and have a deductible amount not to exceed Ten Thousand Dollars ($10,000.00) per occurrence. 8.1.1 13.2.2 The above Lessee shall provide a copy of the above-stated property insurance shall be for policy to the benefit and to safeguard the interests Office of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy Airport Manager within seven (7) days of the ImprovementsCommencement Date of this Lease. Upon the failure of the Lessee to maintain such insurance as above provided, the CitiesCounty, at their its option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demandLessee with the next installment of the monthly fee due hereunder, or may give notice of declare a default hereunder pursuant to Article 18Section 23 herein. 8.2 13.3 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed (except damage or destruction caused by Lessee as set forth in Section 13.6 hereof) to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct repair, rebuild, or replace the Improvements substantially damaged or destroyed portion of the Leased Premises as they were immediately prior to such casualty casualty, except for requirements of applicable laws, including, without limitation, Los Angeles County Building Code, which shall be as of the time of repair or replacement. 13.4 In the event of damage or destruction to any of the Improvements upon the Leased Premises, County shall have no obligation to repair or rebuild the improvements or any fixtures, equipment or other personal property installed by Lessee pursuant to this Lease. Upon the failure of Lessee to repair or rebuild, County may, as agent of the Lessee, repair or rebuild such damage or destruction at the expense of Lessee, which expense shall be due and payable on demand. 13.5 Upon completion of all the work, the Lessee shall certify in writing that such rebuilding and repairs have been completed in compliance with all applicable laws, that all costs in connection therewith have been paid by the Lessee, that said costs are fair and reasonable, and that said certification shall also include an itemization of costs. If the insurance proceeds are not sufficient, the Lessee agrees to bear and pay the deficiency. Nothing contained herein shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this Lease. 13.6 Lessee shall, at its expense, repair and replace any and all fixtures, equipment and other personal property necessary to properly and adequately continue its Airport business on the Airport, but in no event shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. During such period of repair or reconstruction, but not to exceed a new period of six (6) months, the rentals provided for elsewhere herein shall be proportionately abated during the period from the date of such damage, destruction or modified designloss until the same is repaired, replaced, restored or rebuilt, provided Lessee does not use said damaged Leased Premises or the location thereof for any purposes other than the repair or rebuilding of same. Such abatement shall not exceed the actual time required for arranging for and the doing of such work. The proportional amount of reduction of rentals will be directly related to the percent of Airport business adversely affected. Xxxxxx agrees that such work will be promptly commenced and prosecuted to completion with due diligence, subject to delays beyond Xxxxxx’s control. 13.7 In the event the Improvements on the Leased Premises are damaged or destroyed by fire or other cause by reason of any negligent act or omission of the Lessee or its employees, this Lease shall continue in full force and effect, notwithstanding the provisions of Article 5 hereof Sections 13.3, 13.4, 13.5 and applicable building codes 13.6 hereof, and Airport design standardsthe Lessee shall repair or rebuild the Improvements so damaged or destroyed, if anyat Xxxxxx’s own cost and expense, in a good workmanlike manner to the same standards existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvementscasualty, subject to applicable building codes existing at the following terms and conditions:time of repair or rebuilding. 8.2.1 Lessee shall give 13.8 Notwithstanding anything to the Cities written notice contrary above, in the event more than 25% of its election not to repair and reconstruct the Improvements within ninety (90) days improvements of the date upon which the Improvements were Leased Premises are damaged or destroyed. Is such case, and Cities shall have such damage is not covered by the option “all risk” property insurance required by Section 13.2 above, or occurs within the last year of either: 8.2.1.1 Requiring the term of the lease, Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as ismay, in which case Lessee shall assign its sole and absolute discretion, elect to and terminate this Lease by providing written notice to County within (60) days after the Cities shall retain all insurance coverage and proceedsoccurrence of such damage or destruction.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout the term of this Agreement insurance protection for all risk coverage on the Improvements which are part of the Leased Premises, Premises to the extent of one hundred percent (100%) of the actual replacement cost thereof. Such All policies of insurance required herein shall be written by insurers acceptable taken out with insurance companies qualified to Cities. The do insurance shall provide for ten (10) days' notice business in the State of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager.Colorado and having a Bests’ Insurance Guide rating of at least A- 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "“premium paid" ” evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct the Improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to the provisions of Article 5 hereof and applicable building codes and Airport design standards, if any, existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five (5) years of the Initial term or any option term of this AgreementTerm, Lessee may elect not to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceeds.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee13.1. The landlord that shall insure the buildings, at including fixtures and fittings – 13.1.1 for not less than the full replacement value of the buildings to the landlord as determined by the landlord in its sole cost absolute discretion provided that if the tenant requires the sum insured to be increased from time to time, the landlord shall procure that the sum insured is increased to the amount which the tenant requires; 13.1.2 against the risk of fire, lightning, explosion, storm, flood, earthquake, riots (including political riot), civil commotion, strikes and expensemalicious damage and for any other risks selected by the landlord or the tenant including the contingencies referred to in 16.1.2, which are freely insurable in the local insurance market; with a reputable insurer nominated by the landlord. 13.2. The tenant’s interest as tenant shall be recorded in the relevant insurance policy. However, the value of the tenant’s work or any other property owned by the tenant will only be covered to the extent agreed between the landlord and the tenant and specifically provided for in the relevant policy. 13.3. The first premium, subsequent renewal premiums, all additional premiums and all stamp duties in respect of the relevant insurance policies, shall procure be paid by the landlord, who shall be reimbursed by the tenant within 14 days of being requested in writing to do so. 13.4. The landlord shall use its best endeavours to negotiate premiums reasonably competitive with those for which the tenant could insure the buildings if owned by the tenant and maintain throughout insured on a reinstatement value basis and which relate to the term of this Agreement insurance protection for all risk coverage on represented by the Improvements which are part buildings without reference to any other premises. 13.5. The landlord shall provide the tenant with full details of the Leased Premisescover provided by the relevant insurance policy and shall endeavour to obtain cover against risk or circumstances not insured, should the tenant so request in writing, but at the expense of the tenant. 13.6. The tenant shall specifically advise the landlord in writing of any change of risk relative to its occupation or the storage of any hazardous commodity or any other material information, and shall abide by the conditions of the relevant insurance policy as notified to it and shall not do or permit to be done anything which may adversely affect or invalidate such insurance. 13.7. The insurance shall include an item in respect of rent to cover loss of rent for an amount equivalent to 12 times the monthly rent payable in respect of the month preceding the inception of each period of insurance, or such greater amount as may be agreed in writing between the landlord and the tenant. 13.8. If the premises are totally destroyed or damaged so as to render them wholly untenantable, the buildings shall be reinstated and the landlord shall cause such reinstatement to take place with due expedition; the landlord shall only be obliged to reinstate the premises to the extent of one hundred percent (100%) the proceeds received from the insurer in terms of the actual replacement cost thereof. Such relevant insurance policy and shall be written by insurers acceptable entitled to Citiesdelay commencement of reinstatement until the proceeds of the policy have been received from the insurer. 13.9. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, tenant’s obligation to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance pay rent shall be for abated during the benefit and to safeguard period from the interests date of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts occurrence to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct the Improvements substantially as they were immediately prior to such casualty or in a new or modified design, subject to the provisions of Article 5 hereof and applicable building codes and Airport design standards, if any, existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have reinstated premises are ready for beneficial occupation by an amount not greater than the option amount recovered under any loss of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceedsrent policy.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout 11.1 In the term event of this Agreement insurance protection for all risk coverage on damage or destruction to any of the Improvements which are part of improvements upon the Leased Premises, the City shall have no obligation to repair or rebuild the extent of one hundred percent (100%) of improvements or any fixtures, equipment or other personal property installed by Lessee pursuant to this agreement unless such damage or destruction is caused by the actual replacement cost thereof. Such insurance shall be written by insurers acceptable to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the ImprovementsCity. Upon the failure of Lessee to maintain such insurance as above providedrepair or rebuild, the CitiesCity may, at their option, may take out such insurance and charge the cost thereof to as agent of Lessee, repair or rebuild such damage or destruction at the expense of Lessee after first providing Lessee with notice and an opportunity to cure, which reasonable and necessary expense shall be due and payable on demand, within thirty (30) days of a receipt of an invoice. Nothing in this paragraph is intended to waive any governmental immunity available to City under Texas law or may give notice waive any defenses of default pursuant to Article 18City under Texas law. 8.2 11.2 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this agreement. 11.3 In the no event the Improvements shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. Lessee agrees that such work will promptly commence and proceed to completion with due diligence, subject to delays beyond Lessee’s control. 11.4 Prior to commencement of any subsequent improvements, insurable or uninsurable, activity permitted on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyedas provided in this lease, Lessee shall promptly repair purchase and reconstruct maintain, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the Improvements substantially State of Texas and with an A.M. Best rating of A-VII or better. All insurance coverages shall require that the City be named as they were immediately an additional insured, and provide for 30 days written notification to the City prior to such casualty cancellation and provide a written notification of non- payment within 10 days. A. Fire and Extended Coverage Insurance covering the improvements presently existing on, or hereafter created on, the Leased Premises (excluding concrete or asphalt ramps, taxiways, aprons, underground utilities or roadways), against loss or damage by fire, windstorm, hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of insurance shall be carried with a company or companies satisfactory to Lessor and in a new an amount of coverage not less than replacement cost of the property dedicated to or modified designnecessary to performance of Lessee’s obligations under this agreement, subject and the policy or policies of insurance shall be issued to the provisions Lessee and Lessor, as their interests may appear. In the event of Article 5 hereof damage to such buildings and applicable building codes structures, Lessee will immediately notify Lessor of the nature and Airport design standards, if any, existing at the time extent of repairing or rebuildingsuch damage. If the aforesaid damage or destruction occurs results in the last five years partial or the total destruction of the Initial term a building, improvement or any option term of this Agreementstructure which has been erected by Lessee, Lessee may elect not mortgagees and assignees agree to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain apply all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, rebuilding of the improvements as is, in which case Lessee shall assign to and approved by the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee11.1 Prior to commencement of any activity permitted on the Leased Premises as provided in this lease, Lessee shall purchase and maintain, at its sole cost and own expense, hereinafter stipulated minimum insurance as shown on Arlington Municipal Airport General Aviation Minimum Standards Exhibit “A” – Insurance Requirements “Aircraft Maintenance Operator and Avionics or Instrument Maintenance Operator-Piston” with companies duly authorized to do business in the State of Texas and with an AM Best rating of A VII or better. The types and amounts of insurance are subject to change immediately should Lessee commence additional commercial activities, 11.2 Property Insurance which shall procure include Fire and maintain throughout Extended Coverage which shall cover Insurance covering the term of this Agreement insurance protection for all risk coverage improvements presently existing on, or hereafter created on the Improvements which are part of the Leased Premises, to the extent against loss or damage by fire, windstorm hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written by insurers acceptable carried in an amount of coverage not less than replacement cost of the property dedicated to Cities. The or necessary to performance of Lessee’s obligations under this agreement, and the policy or policies of insurance shall provide for ten (10) days' notice of cancellation or material changename the Lessor as a Loss Payee, by certified mail, return receipt requested, to the Cities, Attention: Airport Manageras their interests may appear. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvements. Upon the failure of Lessee to maintain such insurance as above provided, the Cities, at their option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, or may give notice of default pursuant to Article 18. 8.2 11.3 In the event of damage to such buildings and structures, Lessee will immediately notify Lessor of the Improvements nature and any subsequent improvementsextent of such damage. If damage results in the partial loss of or the total destruction of a building, insurable improvement or uninsurablestructure, on the Leased Premises are damaged or destroyed as shown in Exhibit “A”, Lessee agrees to apply all insurance proceeds to the extent that they are unusable rebuilding of the improvements as approved by the City. In no event shall Lessee for the purposes for which they were used be obligated to provide equipment and fixtures in excess of those existing prior to such damagedamage or destruction. Lessee agrees that such work will promptly commence and proceed to completion with due diligence; subject to delays beyond Lessee’s control. 11.4 Upon completion of any repairs or reconstruction, or same are destroyed, the Lessee shall promptly repair certify by a responsible officer or authorized representative that such rebuilding and reconstruct repairs have been completed. 11.5 If a total loss occurs, this Lease shall terminate. Lessee will use proceeds from the Improvements substantially as they were immediately prior policies of insurance to such casualty or in a new or modified design, subject to the provisions of Article 5 hereof and applicable building codes and Airport design standards, if any, existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and pavingremaining improvements from, stub up all utilitiesfill any substantial excavations in, and restore return the site Leased Premises to its original cleared condition prior a level and vacant condition. Lessor shall then receive the remaining proceeds equal to commencement the replacement cost of construction; in which case the improvements measured as if no destruction had occurred. Lessee shall retain then receive all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvementsremaining proceeds, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceedsif any.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 13.1 To safeguard the interest of the County, the Lessee, at its sole cost and expense, shall procure and maintain throughout the term of this Agreement Lease insurance protection for “all risk risk” coverage on the Improvements structure and improvements of which are part of the Leased PremisesPremises is a part, to the extent of one hundred percent One Hundred Percent (100%) of the actual replacement cost thereof, using an insurance company or companies licensed to do business in the State of California. Such If said insurance company becomes financially incapable of performing under the terms of said policy, the Lessee shall promptly obtain a new policy issued by a financially responsible carrier and shall submit such new policy, as previously provided. 13.1.1 The above -stated property insurance shall be written by insurers acceptable to Cities. The insurance shall name the County and American Airports Corporation as Additional Insureds, provide for ten thirty (1030) days' ’ notice of cancellation or material change, change by certified mail, return receipt requested, registered mail to the Cities, Attention: Office of the Airport Manager, and have a deductible amount not to exceed One Thousand Dollars ($1,000.00) per occurrence. 8.1.1 13.1.2 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates a copy of insurance, in a form acceptable the above -stated property insurance policy to the Cities and marked "premium paid" evidencing existence Office of all insurance required to be maintained the Airport Manager at least seven (7) days prior to occupancy the inception of the ImprovementsLease Agreement. Upon the failure of the Lessee to maintain such insurance as above provided, the CitiesCounty, at their its option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demandLessee with the next installment of the monthly fee due hereunder, or may give notice of declare a default hereunder pursuant to Article 18Section 23 herein. 8.2 13.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed (except damage or destruction caused by Lessee as set forth in Section 13.6 hereof) to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct repair, rebuild, or replace the Improvements substantially damaged or destroyed portion of the Leased Premises as they were immediately prior to such casualty casualty, except for requirements of construction codes, which shall be as of the time of repair or replacement. 13.3 In the event of damage or destruction to any of the improve ments upon the Leased Premises, the County shall have no obligation to repair or rebuild the improvements or any fixtures, equipment or other personal property installed by Lessee pursuant to this Agreement. Upon the failure of Lessee to repair or rebuild, the County may, as agent of the Lessee, repair or rebuild such damage or destruction at the expense of Lessee, which expense shall be due and payable on demand. 13.4 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed, that all costs in connection therewith have been paid by the Lessee, that said costs are fair and reasonable, and that said certification shall also include an itemization of costs. If the insurance proceeds are not sufficient, the Lessee agrees to bear and pay the deficiency. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this Lease. 13.5 Lessee shall, at its expense, repair and replace any and all fixtures, equipment and other personal property necessary to properly and adequately continue its Airport business on the Airport, but in no event shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. During such period of repair or reconstruction, but not to exceed a new period of six (6) months, the rentals provided for elsewhere herein shall be proportionately abated during the period from the date of such damage, destruction or modified designloss until the same is repaired, replaced, restored or rebuilt, provided Lessee does not use said damaged Leased Premises or the location thereof for any purposes other than the repair or rebuilding of same. Such abatement shall not exceed the actual time required for arranging for and the doing of such work. The proportional amount of reduction of rentals will be directly related to the percent of Airport business adversely affected. Xxxxxx agrees that such work will be promptly commenced and prosecuted to completion with due diligence, subject to delays beyond Xxxxxx’s control. 13.6 In the event the improvements on the Leased Premises are damaged or destroyed by fire or other cause by reason of any negligent act or omission of the Lessee or its employees, this Lease Agreement shall continue in full force and effect, notwithstanding the provisions of Article 5 hereof Sections 13.2, 13.3, 13.4 and applicable building codes 13.5 hereof, and Airport design standardsthe Lessee shall repair or rebuild the improve ments so damaged or destroyed, if anyat Lessee’s own cost and expense, in a good workmanlike manner to the same standards existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvementscasualty, subject to applicable building codes existing at the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice time of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceedsrebuilding.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout 11.1 In the term event of this Agreement insurance protection for all risk coverage on damage or destruction to any of the Improvements which are part of improvements upon the Leased Premises, the City shall have no obligation to repair or rebuild the extent of one hundred percent (100%) of improvements or any fixtures, equipment or other personal property installed by Lessee pursuant to this agreement unless such damage or destruction is caused by the actual replacement cost thereof. Such insurance shall be written by insurers acceptable to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the ImprovementsCity. Upon the failure of Lessee to maintain such insurance as above providedrepair or rebuild, the CitiesCity may, at their option, may take out such insurance and charge the cost thereof to as agent of Lessee, repair or rebuild such damage or destruction at the expense of Lessee after first providing Lessee with notice and an opportunity to cure, which reasonable and necessary expense shall be due and payable on demand, within thirty (30) days of a receipt of an invoice. Nothing in this paragraph is intended to waive any governmental immunity available to City under Texas law or may give notice waive any defenses of default pursuant to Article 18City under Texas law. 8.2 11.2 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this agreement. 11.3 In the no event the Improvements shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. Xxxxxx agrees that such work will promptly commence and proceed to completion with due diligence, subject to delays beyond Xxxxxx’s control. 11.4 Prior to commencement of any subsequent improvements, insurable or uninsurable, activity permitted on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyedas provided in this lease, Lessee shall promptly repair purchase and reconstruct maintain, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the Improvements substantially State of Texas and with an A.M. Best rating of A-VII or better. All insurance coverages shall require that the City be named as they were immediately an additional insured, and provide for 30 days written notification to the City prior to such casualty cancellation and provide a written notification of non-payment within 10 days. A. Fire and Extended Coverage Insurance covering the improvements presently existing on, or hereafter created on, the Leased Premises (excluding concrete or asphalt ramps, taxiways, aprons, underground utilities or roadways), against loss or damage by fire, windstorm, hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of insurance shall be carried with a company or companies satisfactory to Lessor and in a new an amount of coverage not less than replacement cost of the property dedicated to or modified designnecessary to performance of Lessee’s obligations under this agreement, subject and the policy or policies of insurance shall be issued to the provisions Lessee and Lessor, as their interests may appear. In the event of Article 5 hereof damage to such buildings and applicable building codes structures, Lessee will immediately notify Lessor of the nature and Airport design standards, if any, existing at the time extent of repairing or rebuildingsuch damage. If the aforesaid damage or destruction occurs results in the last five years partial or the total destruction of the Initial term a building, improvement or any option term of this Agreementstructure which has been erected by Xxxxxx, Lessee may elect not mortgagees and assignees agree to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain apply all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, rebuilding of the improvements as is, in which case Lessee shall assign to and approved by the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 Lessee, at its sole cost and expense, shall procure and maintain throughout 11.1 In the term event of this Agreement insurance protection for all risk coverage on damage or destruction to any of the Improvements which are part of improvements upon the Leased Premises, the City shall have no obligation to repair or rebuild the extent of one hundred percent (100%) of the actual replacement cost thereof. Such insurance shall be written improvements or any fixtures, equipment or other personal property installed by insurers acceptable Lessee pursuant to Cities. The insurance shall provide for ten (10) days' notice of cancellation or material change, by certified mail, return receipt requested, to the Cities, Attention: Airport Manager. 8.1.1 The above stated property insurance shall be for the benefit and to safeguard the interests of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy of the Improvementsthis agreement. Upon the failure of Lessee to maintain such insurance as above providedrepair or rebuild, the CitiesCity may, as agent of Lessee, repair or rebuild such damage or destruction at their option, may take out such insurance and charge the cost thereof to expense of Lessee, which expense shall be due and payable on demand, or may give notice of default pursuant to Article 18. 8.2 11.2 Upon completion of all the work, the Lessee shall certify by a responsible officer or authorized representative that such rebuilding and repairs have been completed. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this agreement. 11.3 In the no event the Improvements shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. Lessee agrees that such work will promptly commence and proceed to completion with due diligence, subject to delays beyond Lessee’s control. 11.4 Prior to commencement of any subsequent improvements, insurable or uninsurable, activity permitted on the Leased Premises are damaged or destroyed to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyedas provided in this lease, Lessee shall promptly repair purchase and reconstruct maintain, at its own expense, hereinafter stipulated minimum insurance with companies duly authorized to do business in the Improvements substantially State of Texas and satisfactory to the Lessor’s Risk Manager. All insurance coverages shall require that the City be named as they were immediately an additional insured, and provide for 30 days written notification to the City prior to such casualty cancellation and provide a written notification of non- payment within 10 days. A. Fire and Extended Coverage Insurance covering the improvements presently existing on, or hereafter created on, the Leased Premises (excluding concrete or asphalt ramps, taxiways, aprons, underground utilities or roadways), against loss or damage by fire, windstorm, hail, tornado, explosion, water, lightning, rain, sleet, snow, sprinkler leakage, riots, civil commotion, vandalism, malicious mischief, and aircraft/vehicle damage. This type of insurance shall be carried with a company or companies satisfactory to Lessor and in a new an amount of coverage not less than replacement cost of the property dedicated to or modified designnecessary to performance of Lessee’s obligations under this agreement, subject and the policy or policies of insurance shall be issued to the provisions Lessee and Lessor, as their interests may appear. In the event of Article 5 hereof damage to such buildings and applicable building codes structures, Lessee will immediately notify Lessor of the nature and Airport design standards, if any, existing at the time extent of repairing or rebuildingsuch damage. If the aforesaid damage or destruction occurs results in the last five years partial or the total destruction of the Initial term a building, improvement or any option term of this Agreementstructure which has been erected by Lessee, Lessee may elect not mortgagees and assignees agree to repair and reconstruct the Improvements, subject to the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain apply all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, rebuilding of the improvements as is, in which case Lessee shall assign to and approved by the Cities shall retain all insurance coverage and proceedsCity.

INSURANCE, DAMAGE OR DESTRUCTION. 8.1 12.1 To safeguard the interests of the County and Manager, the Lessee, at its sole cost and expense, shall procure and maintain maintain, throughout the term of this Agreement lease, insurance protection for “all risk risk" coverage on the Improvements structure and improvements of which are part of the Leased PremisesPremises is a part, to the extent of one hundred percent (100%) of the actual replacement cost thereof, with insurance companies licensed to do business in the State of California. Such If said insurance company becomes financially incapable of performing under the terms of said policy, the Lessee shall promptly obtain a new policy issued by a financially responsible carrier and shall submit such new policy as previously provided. 12.1.1 The above stated property insurance shall be written by insurers acceptable to Cities. The insurance shall name the County and Manager as Additional Insureds, provide for ten thirty (1030) days' ’ written notice of cancellation or material change, by certified mail, return receipt requested, registered mail to the Cities, Attention: Office of the Airport Manager, and have a deductible amount not to exceed One Thousand Dollars ($1,000.00) per occurrence. 8.1.1 12.1.2 The Lessee shall provide a copy of the above stated property insurance shall be for policy to the benefit and to safeguard the interests Office of the Cities and Lessee. 8.1.2 Lessee shall settle all losses with the insurance carrier. Lessee shall consult with the Cities and use its best efforts to obtain a settlement that covers the cost of repairing or rebuilding the Improvements. 8.1.3 Lessee shall provide certificates of insurance, in a form acceptable Airport Manager at least seven (7) days prior to the Cities and marked "premium paid" evidencing existence of all insurance required to be maintained prior to occupancy inception of the ImprovementsLease Agreement. Upon the failure of the Lessee to maintain such insurance as above provided, the CitiesCounty, at their its option, may take out such insurance and charge the cost thereof to Lessee, which shall be payable on demand, Lessee with the next installment of the monthly fee due hereunder or may give notice of declare a default hereunder pursuant to Article 18Section 22 herein. 8.2 12.2 In the event the Improvements and any subsequent improvements, insurable or uninsurable, on the Leased Premises are damaged or destroyed (except damage or destruction caused by Lessee as set forth in Section 12.6 hereof) to the extent that they are unusable by Lessee for the purposes for which they were used prior to such damage, or same are destroyed, Lessee shall promptly repair and reconstruct repair, rebuild, or replace the Improvements substantially damaged or destroyed portion of the Leased Premises as they were immediately prior to such casualty casualty, except for requirements of construction codes, which shall be as of the time of repair or replacement. 12.3 In the event of damage or destruction to any of the improvements upon the Leased Premises, the County shall have no obligation to repair or rebuild the improvements or any fixtures, equipment or other personal property installed by Lessee pursuant to this Agreement. Upon the failure of Lessee to repair or rebuild the County may, as agent of the Lessee, repair or rebuild such damage or destruction at the expense of Lessee which expense shall be due and payable on demand. 12.4 Upon completion of all the work, the Lessee shall certify in writing that such rebuilding and repairs have been completed, that all costs in connection therewith have been paid by the Lessee and said costs are fair and reasonable and said certification shall also include an itemization of costs. If the insurance proceeds are not sufficient the Lessee agrees to bear and pay the deficiency. Nothing herein contained shall be deemed to release the Lessee from any of its repair, maintenance or rebuilding obligations under this Lease. 12.5 Lessee shall, at its expense, repair and replace any and all fixtures, equipment and other personal property necessary to properly and adequately continue its airport business on the Airport, but in no event shall Lessee be obligated to provide equipment and fixtures in excess of those existing prior to such damage or destruction. During such period of repair or reconstruction, but not to exceed a new period of 6 (six) months, the rentals provided for elsewhere herein shall be proportionately abated during the period from the date of such damage, destruction or modified designloss until the same is repaired, replaced, restored or rebuilt, provided, Lessee does not use said damaged Leased Premises or the location thereof for any purposes other than the repair or rebuilding of same. Such abatement shall not exceed the actual time required for arranging for and the doing of such work. The proportional amount of reduction of rentals will be directly related to the percent of Airport business adversely affected. Xxxxxx agrees that such work will be promptly commenced and prosecuted to completion with due diligence; subject to delays beyond Xxxxxx’s control. 12.6 In the event the improvements on the Leased Premises are damaged or destroyed by fire or other cause by reason of any negligent act or omission of the Lessee or its employees, this Lease Agreement shall continue in full force and effect, notwithstanding the provisions of Article 5 hereof Sections 12.2, 12.3, 12.4 and applicable building codes 12.5 hereof, and Airport design standardsthe Lessee shall repair or rebuild the improvements so damaged or destroyed, if anyat Lessee’s own cost and expense, in a good workmanlike manner to the same standards existing at the time of repairing or rebuilding. If the aforesaid damage or destruction occurs in the last five years of the Initial term or any option term of this Agreement, Lessee may elect not to repair and reconstruct the Improvementscasualty, subject to applicable building codes existing at the following terms and conditions: 8.2.1 Lessee shall give the Cities written notice time of its election not to repair and reconstruct the Improvements within ninety (90) days of the date upon which the Improvements were damaged or destroyed. Is such case, and Cities shall have the option of either: 8.2.1.1 Requiring Lessee to clear the site, remove all debris and paving, stub up all utilities, and restore the site to its original cleared condition prior to commencement of construction; in which case Lessee shall retain all insurance proceeds above those necessary to fund such site restoration; or 8.2.1.2 Taking title to the damaged Improvements, as is, in which case Lessee shall assign to and the Cities shall retain all insurance coverage and proceedsrebuilding.