Common use of Risk of Loss; Insurance Clause in Contracts

Risk of Loss; Insurance. a) LESSEE shall bear all risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintain, at its own expense, insurance on the LEASED PROPERTY in such initial amounts and types as may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue such insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty (30) days written notice to the Real Estate Contracting Officer prior to the making of any material change in or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEE.

Risk of Loss; Insurance. a) LESSEE The Company shall bear all the full risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for loss of any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability nature whatsoever with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure Collateral. At the Company's own cost and maintain, at its own expense, insurance on the LEASED PROPERTY expense in such initial amounts and types as may exceed, but shall not be less thanwith carriers acceptable to the Lenders, the minimum amounts Company shall (a) keep all its insurable properties and types specified properties in Clause 8 hereof. Howeverwhich it has an interest insured against the hazards of fire, LESSEE shall provideflood, maintainsprinkler leakage, change or discontinue those hazards covered by extended coverage insurance and such insurance as the Local Government Representative may from time to time require other hazards, and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for as is customary in the case of companies engaged in businesses similar to the Company's including, without limitation, public and product liability insurance, worker's compensation, insurance against larceny, embezzlement or other criminal misappropriation of insured's officers and employees and business interruption insurance; (b) furnish the Lenders with (i) copies of all policies and evidence of the maintenance of such periods policies and will consult in good faith with the Lenders regarding replacement or renewal of time coverage in advance of any expiration date, and (ii) obtain appropriate loss payable endorsements in form and substance satisfactory to the Lenders, naming the Lenders as loss payee and providing that as to the Lenders the insurance coverage shall not be impaired or invalidated by any act or neglect of the Company and the insurer will provide the Lenders with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for at least thirty (30) days written notice prior to cancellation. Upon an Event of Default: (i) all loss recoveries received by the Lenders upon any such insurance may be applied to the Real Estate Contracting Officer prior obligations represented by the Notes; (ii) any surplus shall be paid by the Lenders to the making of any material change in Company or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY applied as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In otherwise required by law: and (iii) any deficiency thereon shall be paid by the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay Company to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repairLenders, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEon demand.

Risk of Loss; Insurance. a) LESSEE shall bear all risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintain, at its own expense, insurance on the LEASED PROPERTY in such initial amounts and types as may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue such insurance as the Local Government Representative RECO may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses Clause 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, insurance which this LEASE requires LESSEE to carry on the LEASED PROPERTY, PROPERTY shall be in such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty (30) days written notice to the Real Estate Contracting Officer prior to the making of any material change in or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of an original insurance policy or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. (1) Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a11(a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a11(a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraphClause, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEE.

Risk of Loss; Insurance. a) LESSEE The Company shall bear all the full risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for loss of any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability nature whatsoever with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure Collateral. At the Company’s own cost and maintain, at its own expense, insurance on the LEASED PROPERTY expense in such initial amounts and types as may exceed, but shall not be less thanwith carriers acceptable to the Lender, the minimum amounts Company shall (a) keep all its insurable properties and types specified properties in Clause 8 hereof. Howeverwhich it has an interest insured against the hazards of fire, LESSEE shall provideflood, maintainsprinkler leakage, change or discontinue those hazards covered by extended coverage insurance and such insurance as the Local Government Representative may from time to time require other hazards, and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for as is customary in the case of companies engaged in businesses similar to the Company’s including, without limitation, public and product liability insurance, worker’s compensation, insurance against larceny, embezzlement or other criminal misappropriation of insured’s officers and employees and business interruption insurance; (b) furnish the Lender with (i) copies of all policies and evidence of the maintenance of such periods policies and will consult in good faith with the Lender regarding replacement or renewal of time coverage in advance of any expiration date, and (ii) obtain appropriate loss payable endorsements in form and substance satisfactory to the Lender, naming the Lender as loss payee and providing that as to the Lender the insurance coverage shall not be impaired or invalidated by any act or neglect of the Company and the insurer will provide the Lender with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for at least thirty (30) days written notice prior to cancellation. Upon an Event of Default: (i) all loss recoveries received by the Lender upon any such insurance may be applied to the Real Estate Contracting Officer prior Obligations, in such order as the Lender in its sole discretion shall determine; (ii) any surplus shall be paid by the Lender to the making of any material change in Company or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY applied as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In otherwise required by law; and (iii) any deficiency thereon shall be paid by the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay Company to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repairLender, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEon demand.

Risk of Loss; Insurance. (a) LESSEE Risk of loss of, damage to, or destruction of, the Collateral shall bear be on each of the Debtors at all times. Each of the Debtors shall maintain all risk of loss of or damage to hazard insurance on the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for any Collateral at all times against loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount by fire and other casualty, with extended coverage, for their insurable value with replacement cost endorsement. All policies of insurance so required or covering the amount actually procured and maintained, whichever Collateral shall be the greater: Provided, further, that maintenance contain loss payable clauses in favor of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from Agent for the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintain, at its own expense, insurance on the LEASED PROPERTY in such initial amounts and types as may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue such insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount benefit of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so Senior Secured Parties as to reflect any resultant savings or increased cost to LESSEE. c) All insuranceits interest may appear. Certificates evidencing the policies covering the Collateral as well as all renewals and modifications thereof, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision providing for thirty (30) days written days' notice of cancellation or other lapse to the Real Estate Contracting Officer prior Agent, shall be delivered to the making of Agent. If any material change in or the cancellation of the policy. XXXXXX Debtors fails to obtain and continuously keep in full force and effect such insurance, or fails to pay the premiums thereon when due, the Agent may (but shall deliver promptly not be obligated to) do so for the account of such Debtors and the cost thereof shall be added to the Real Estate Contracting Officer a certificate Obligations. (b) Each of insurance or a certified copy the Debtors hereby assigns and sets over unto the Agent all moneys which may become payable on account of each policy such insurance, excluding any return of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration unearned premiums which may be due upon cancellation of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insuredinsurance, and each policy of insurance against loss of or damage irrevocably directs the insurers to pay the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); Agent any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, amount so due to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may electbelow. In the event that of any casualty loss of any Collateral: (i) If the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE loss is required to effect pursuant to this paragraphin excess of $250,000, the GOVERNMENT Debtors will give notice thereof within three (3) Business Days to the Agent, and the Agent may make proof of loss if not made promptly by Debtors; (ii) any adjustment of a proof of loss exceeding such amount by an amount in excess of $ 1,000,000 shall direct require the payment prior written consent of the Agent; (iii) the Agent, its officers, employees and authorized agents are hereby irrevocably appointed the attorneys-in-fact of each of the Debtors to LESSEE of so much of endorse any draft or check which may be payable to it as set forth in paragraph (c) below in order to collect the proceeds of such insurance or any insurance carried by XXXXXX and made available return of unearned premiums; and (iv) any sum paid with respect to any casualty loss shall be paid directly to the GOVERNMENT on account Agent (and if nonetheless received by any of loss of the Debtors, shall be held in trust for the Agent until paid over) to the extent provided by paragraph (c) below. (c) Any proceeds or damage return which are paid with respect to any item or part casualty loss with respect to which the higher of the LEASED PROPERTY as insurance proceeds therefor or the replacement cost thereof exceeds $5,000,000 (a "Major Casualty Loss"), or, regardless of amount, during the continuance of an Event of Default, may be necessary to enable LESSEE to effect such repairapplied in whole or in part, rebuilding or replacement. In as deemed desirable by the event Agent in the GOVERNMENT shall elect not to require LESSEE to repairexercise of its reasonable discretion, rebuild or replace any item or part of toward (i) the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding repair or replacement of any lost property or damaged item or part assets of any of the LEASED PROPERTY would involve Debtors that have been damaged or destroyed and in respect of which the incurring insurance proceeds were payable, or (ii) the payment or prepayment of costs any of the Senior Secured Obligations, whether or not otherwise due. Any balance of insurance proceeds remaining in excess the possession of LESSEE's liability for such loss or damage under this Clause, LESSEE the Agent after payment in full of the Senior Secured Obligations shall be under no obligation paid to effect same until after a satisfactory agreement the appropriate Debtor. (d) If subsection (c) above is not applicable, all insurance proceeds or return shall be promptly applied by the Debtors toward the replacement of the property that has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEdamaged or destroyed.

Risk of Loss; Insurance. a) LESSEE The Company shall bear all the full risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoever, with or without fault by LESSEE; Provided, however, that LESSEE's liability for loss of any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability nature whatsoever with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure Collateral. At the Company’s own cost and maintain, at its own expense, insurance on the LEASED PROPERTY expense in such initial amounts and types as may exceed, but shall not be less thanwith carriers acceptable to the Lender, the minimum amounts Company shall (a) keep all its insurable properties and types specified properties in Clause 8 hereof. Howeverwhich it has an interest insured against the hazards of fire, LESSEE shall provideflood, maintainsprinkler leakage, change or discontinue those hazards covered by extended coverage insurance and such insurance as the Local Government Representative may from time to time require other hazards, and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for as is customary in the case of companies engaged in businesses similar to the Company’s including, without limitation, public and product liability insurance, worker’s compensation, insurance against larceny, embezzlement or other criminal misappropriation of insured’s officers and employees and business interruption insurance; (b) furnish the Lender with (i) copies of all policies and evidence of the maintenance of such periods policies and will consult in good faith with the Lender regarding replacement or renewal of time coverage in advance of any expiration date, and (ii) obtain appropriate loss payable endorsements in form and substance satisfactory to the Lender, naming the Lender as loss payee and providing that as to the Lender the insurance coverage shall not be impaired or invalidated by any act or neglect of the Company and the insurer will provide the Lender with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for at least thirty (30) days written notice prior to cancellation. Upon an Event of Default: (i) all loss recoveries received by the Lender upon any such insurance may be applied to the Real Estate Contracting Officer prior Obligations, in such order as the Lender in its sole discretion shall determine; (ii) any surplus shall be paid by the Lender to the making of any material change in Company or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY applied as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In otherwise required by law: and (iii) any deficiency thereon shall be paid by the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay Company to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repairLender, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEon demand.

Risk of Loss; Insurance. (a) LESSEE Prior to delivery to Owner, all of Engineering Services Contractor's work product, deliverables and supporting data shall bear all remain at the risk of loss of or damage to the LEASED PROPERTY arising from any cause whatsoeverEngineering Services Contractor, with or without fault by LESSEE; Provided, however, that LESSEE's liability for any loss or damage resulting from risks expressly required to be insured against under the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever who shall be the greater: Providedresponsible for all loss and damage thereto and shall replace, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss correct or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintainotherwise cure, at its own expense, insurance on all such loss and damage whether or not due to the LEASED PROPERTY in such initial amounts fault of Engineering Services Contractor. On completion of this Engineering Service Contract, title and types as may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue such insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for risk of loss of or damage shall pass to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEEOwner. c(b) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, Engineering Services Contractor shall be in such form, for such amounts, for such periods maintain and shall require each of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty (30) days written notice to the Real Estate Contracting Officer prior to the making of any material change in or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Lossits Subcontractors, if any, under to maintain the following insurance coverages with not less than the limits of coverage specified and set out below or that Engineering Services Contractor maintains as part of its general program of business insurance, whichever are greater, and for the coverage periods as long as the Engineering Services Master Agreement is in effect: (i) Commercial general liability insurance (including umbrella coverage), on a form at least as broad as Insurance Services Office ("ISO") commercial general liability "occurrence" form CG 00 01 0196 (and any updated versions available through a commercial insurance broker) or another "occurrence" form providing equivalent coverage and approved in writing by Owner; and such commercial general liability insurance and any necessary riders thereto shall include but not be limited to contractual liability coverage as applicable to any indemnity, defense and hold harmless agreements in this policy shall be adjusted with Engineering Service Contract. (name ii) Workers Compensation and occupational disease insurance securing compensation for the benefit of XXXXXX) Engineering Services Contractor employees and the proceedsemployees of each Subcontractor, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damagedif any, as required by Applicable Laws, including the GOVERNMENT may electlaws of each State where the employment contracts of such employees were made. In the event that the GOVERNMENT Such coverage need not be obtained if Engineering Services Contractor has an accepted program of self- insurance under Applicable Laws or participates in an applicable monopolistic state Workers Compensation fund. If applicable, Engineering Services Contractor shall direct LESSEE to effect any repair, rebuilding also carry Xxxxxxxxx and Harbor Workers Compensation Act and/or Xxxxx Act coverages or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY similar coverage as may be necessary to enable LESSEE to effect such repairrequired for any personnel working on, rebuilding over, or replacement. In around water; (iii) Employers liability insurance; (iv) Motor vehicle liability insurance issued on a form at least as broad as ISO Business Auto Coverage Form CA 00 01 07 97 or other form providing equivalent coverage, covering all owned, hired, borrowed and non-owned vehicles (Symbol 1) brought onto the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out real property of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's Owner’s Site; and (v) Professional liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEE.coverage; and

Risk of Loss; Insurance. (a) LESSEE shall bear all During the period between the date of this Agreement and the Closing Date, the risk of loss loss, damage or impairment, confiscation or condemnation of or damage to any of the LEASED PROPERTY arising Assets from any cause whatsoeverwhatsoever shall be borne by RxCentric, and RxCentric shall continue to maintain all existing insurance polices presently maintained on the buildings and on the other Assets (or upon written request of Allscripts and at Allscripts’ expense, in such greater amounts as Allscripts may reasonably request). (b) In the event of any loss, damage or impairment, confiscation or condemnation of any of the Assets prior to the completion of the Closing, RxCentric shall notify Allscripts of same in writing immediately, specifying with particularity the loss, damage or without fault by LESSEE; Providedimpairment, howeverconfiscation or condemnation incurred, the cause thereof, if known or reasonably ascertainable, and the insurance coverage. RxCentric shall apply the proceeds of any insurance policy, judgment or award with respect thereto to repair, replace or restore such Assets to their prior condition as soon as possible after such loss, damages or impairment, confiscation or condemnation, and RxCentric shall use the proceeds of any claim under any property damage insurance policy or other recovery solely to repair, replace, or restore any of the Assets that LESSEE's liability are lost, damaged, impaired, or destroyed. (c) If before the Closing Date, due to damages or destruction or any other reason, the operations of RxCentric are suspended for any loss or damage resulting from risks expressly required period, then (i) RxCentric shall immediately give written notice thereof to be insured against under Allscripts; and (ii) Allscripts shall have the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintainedright, whichever shall be the greater: Provided, further, that maintenance of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintain, at its own expense, insurance on the LEASED PROPERTY in such initial amounts and types as may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue such insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty (30) days by giving immediate written notice to the Real Estate Contracting Officer prior to the making of any material change in or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASERxCentric, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name A) within five Business Days of XXXXXX); any proceeds not paid receiving such notice from RxCentric of such suspension, terminate this Agreement pursuant to Article XIV hereof, or (name B) postpone the Closing Date for a period of XXXXXX) shall be payable up to the Treasurer of the United States90 days." (d) In the event that of any item material damage or part destruction of the LEASED PROPERTY Assets described in subsection (b) above, or in the event of any damage or destruction of the Assets described in subsection (c) above, if such Assets have not been restored or replaced and RxCentric’s normal and usual operation resumed by the date scheduled for Closing, as same may be postponed pursuant to subsection (c) above, Allscripts may pursuant to Section 14, terminate this Agreement by written notice to RxCentric pursuant to Article XIV hereof. Alternatively, Allscripts may, at its option, proceed to close this Agreement and complete the restoration and replacement of such damaged Assets after the Closing Date, in which event RxCentric shall require repair, rebuilding deliver or replacement resulting from loss assign to Allscripts all insurance or damage, other proceeds received in connection with such damage or destruction of the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, Assets to the extent of its liability as provided such proceeds are received by or payable to RxCentric and have not theretofore been used in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available committed to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding restoration or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEAssets.

Risk of Loss; Insurance. (a) LESSEE Borrower agrees that it shall bear all risk of loss, damage to or destruction of the Equipment. Borrower shall give Lender prompt notice of any damage to or loss of the Equipment or of any occurrence arising from the possession, use or operation of the Equipment resulting in death or bodily injury, or damage to property. In the LEASED PROPERTY arising from event of damage to any cause whatsoeveritem(s) of Equipment, borrower shall immediately place such item(s) in good repair (with no abatement of payments hereunder or under the Note), with or without fault by LESSEE; Providedthe proceeds of any insurance recovery applied to the cost of such repair. If, however, that LESSEE's liability for any loss item(s) of Equipment shall become lost, stolen, destroyed, worn out, damaged beyond repair, condemned, confiscated, seized or damage resulting from risks expressly required to be insured against requisitioned (herein "Event of Loss"), Borrower shall, at the option of Lender, either replace the same with like equipment in good repair (with no abatement of payments hereunder or under the LEASE shall not exceed Note), or pay to Lender on the amount next scheduled payment date immediately following such Event of insurance so required or Loss, the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance remaining unpaid principal balance of the required insurance Note, all accrued but unpaid interest thereon, plus all other amounts due from Borrower hereunder, whereupon the Agreement shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from the willful misconduct, lack of good faith, or negligence of LESSEE or any terminate. (b) Until satisfaction by Borrower of its officersObligations, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintainBorrower, at its own expense, shall maintain comprehensive general liability insurance, and "fire and allied perils" and "all risks" property insurance on covering the LEASED PROPERTY Equipment (as primary insurance for Borrower and Lender), both in such initial amounts and types as may exceedLender shall require, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change or discontinue except that such property insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in an amount at least equal to the remaining unpaid principal balance of the Note and such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty be placed with carriers acceptable to Lender. The liability insurance policy shall name Lender (30and any assignee of Lender) days written notice to as additional insured(s) and the Real Estate Contracting Officer prior to the making property insurance policy shall name Lender (and any assignee of any material change in or the cancellation of the policy. XXXXXX shall deliver promptly to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASELender) as loss payee(s) tot he extent its interest(s) may appear, and XXXXXX both policies shall also deliver to the Real Estate Contracting Officer, no later than provide that they may not be cancelled or altered without at least thirty (30) days prior written notice to Lender (and any assignee of Lender). Borrower irrevocably appoints Lender its agent and attorney-in-fact for the expiration purpose of adjusting and settling any such policyproperty insurance hereunder and endorsing in Borrower's name any instruments or payments received in respect thereof. Borrower shall furnish to Lender, upon request, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of the GOVERNMENT and LESSEE against their respective risks and liabilities that such coverage is in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America (Department of the Navy) as the insuredeffect, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Losshowever, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, the risk of which is assumed by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability as provided in Clause 12 (a) of this LEASE thereof, shall, upon demand, either compensate the GOVERNMENT for such loss or damage, or rebuild, replace or repair the item or items of the LEASED PROPERTY so lost or damaged, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE to effect any repair, rebuilding or replacement which the LESSEE is required to effect pursuant to this paragraph, the GOVERNMENT shall direct the payment to LESSEE of so much of the proceeds of any insurance carried by XXXXXX and made available to the GOVERNMENT on account of loss of or damage to any item or part of the LEASED PROPERTY as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE Lender shall be under no obligation duty either to effect same until after a satisfactory agreement has been reached between ascertain the GOVERNMENT and LESSEE existence of or to examine such insurance policies or to advise Borrower in the event that such insurance coverage does not comply with regard to GOVERNMENT reimbursement of such excess of costs to LESSEEthe requirements hereof.

Risk of Loss; Insurance. (a) LESSEE Lessee hereby assumes and shall bear all the entire risk of loss and damage, of the Equipment from any and every cause whatsoever as of the date the Equipment is delivered to Lessee and throughout the Initial Term and any extension thereof. No loss or damage to the LEASED PROPERTY arising from Equipment or any cause whatsoeverpart thereof shall impair any obligation of Lessee under this Lease, with or without fault by LESSEE; Provided, however, that LESSEE's liability for any loss or damage resulting from risks expressly required to be insured against under which shall continue in full force and effect. (b) During the LEASE shall not exceed the amount of insurance so required or the amount actually procured and maintained, whichever shall be the greater: Provided, further, that maintenance term of the required insurance shall effect no limitation on LESSEE's liability with respect to any loss or damage resulting from the willful misconductLease, lack of good faith, or negligence of LESSEE or any of its officers, agents, servants, employees, subtenants, licensees, and/or invitees. b) LESSEE shall procure and maintainLessee, at its own expense, insurance on shall insure the LEASED PROPERTY Equipment against all risks and in such initial amounts as Lessor shall reasonably require (but not less than the Casualty Value of the Equipment) with carriers acceptable to Lessor. Such insurance shall also provide for loss payable endorsement to Lessor, any Assignee, and types as any Secured Party. Lessee shall also maintain comprehensive public liability insurance satisfactory to Lessor. All such insurance shall name Lessor, or Assignee, or any Secured party, and the policies shall provide that they may exceed, but shall not be less than, the minimum amounts and types specified in Clause 8 hereof. However, LESSEE shall provide, maintain, change terminated or discontinue such insurance as the Local Government Representative may from time to time require and direct; Provided, LESSEE's liability for loss of or damage to the LEASED PROPERTY is modified accordingly; Provided, further, that if any insurance requirement is so changed an equitable adjustment shall be made in the amount of the Rent or Maximum Amount to be Expended specified in Clauses 3 or 9 hereof so as to reflect any resultant savings or increased cost to LESSEE. c) All insurance, which this LEASE requires LESSEE to carry on the LEASED PROPERTY, shall be in such form, for such amounts, for such periods of time and with such insurers as the GOVERNMENT may from time to time require or approve. Each policy of insurance shall contain a provision for thirty (30) days without at least 30 days' prior written notice to Lessor, or Assignee, or any Secured Party. (c) In the Real Estate Contracting Officer prior event of loss or damage of any Unit, Lessee shall use all reasonable efforts to place the Unit in good repair, condition and working order to the making satisfaction of any material change Lessor within 60 days of such loss or damage, unless the manufacturer determines that such Unit has been irreparably damaged, in or the cancellation which case Lessee shall, within 10 days of the policy. XXXXXX shall deliver promptly manufacturer's determination of irreparable loss, make its election to either pay Lessor the Casualty Value (as set forth in Annex A to the Real Estate Contracting Officer a certificate of insurance or a certified copy of each policy of insurance required by this LEASE, and XXXXXX shall also deliver to the Real Estate Contracting Officer, no later than thirty (30Lease) days prior to the expiration of any such policy, a certificate of insurance or a certified copy of each renewal policy covering the same risks. All insurance required or carried by LESSEE on any of the LEASED PROPERTY shall be for the protection of irreparably damaged Unit or replace the GOVERNMENT and LESSEE against their respective risks and liabilities in connection with the LEASED PROPERTY. Each policy of insurance shall name both LESSEE and the United States of America irreparably damaged unit, all as provided hereinafter. (Department of the Navy) as the insured, and each policy of insurance against loss of or damage to the LEASED PROPERTY shall contain a loss payable clause reading as follows: i. Loss, if any, under this policy shall be adjusted with (name of XXXXXX) and the proceeds, at the election of the GOVERNMENT, shall be payable to (name of XXXXXX); any proceeds not paid to (name of XXXXXX) shall be payable to the Treasurer of the United States." d) In the event that any item or part Lessee elects to pay Lessor the Casualty Value for the irreparably damaged Unit, Lessee shall pay such amount to Lessor on the first day of the LEASED PROPERTY shall require repair, rebuilding or replacement resulting from loss or damage, month following the risk of which is assumed election by LESSEE under Clause 12 (a) of this LEASE, LESSEE shall promptly give notice thereof to the Real Estate Contracting Officer and, to the extent of its liability Lessee as provided in Clause 12 (ac) above and pay all Monthly Rent for the Equipment up to the date that the Casualty Value is paid to Lessor. If not all the Equipment is irreparably damaged, the Equipment Value (as identified in the Lease) of this LEASE thereofthe irreparably damaged Unit shall be multiplied by the applicable percentage set forth in Annex A to compute the Casualty Value therefor, shalland the Monthly Rental for the undamaged Equipment remaining due shall be that amount resulting from multiplying the original Monthly Rental by the ratio of the original Equipment Value of the undamaged Equipment divided by the Equipment Value for all the Equipment prior to the damage. (e) Should Lessee elect to replace the irreparably damaged Unit, upon demandLessee shall continue all payments under the lease without interruption as if no such damage, either compensate the GOVERNMENT for such loss or damagedestruction had occurred, or rebuildand shall replace such irreparably damaged Unit within 30 days following the date the manufacturer determines the Unit is irreparable, replace or repair paying all such costs associated therewith, and so that Lessor has good and valid title thereto. The "Replacement Equipment" shall have a fair market value at the item or items time of replacement equal to then fair market value of the LEASED PROPERTY so lost or damagedUnit thereof for which replacement is made, as the GOVERNMENT may elect. In the event that the GOVERNMENT shall direct LESSEE and anticipated to effect any repair, rebuilding or replacement have a fair market value which the LESSEE Unit thereof for which replacement is required to effect pursuant to this paragraph, made would have had at the GOVERNMENT shall direct the payment to LESSEE of so much end of the proceeds Initial Term, and be the same type and of any insurance carried by XXXXXX and made available at least equal capacity to the GOVERNMENT on account of loss of or damage Unit for which the replacement is being made. Upon delivery, such Replacement Equipment shall become subject to any item or part all the terms and conditions of the LEASED PROPERTY as may be necessary to enable LESSEE to effect such repair, rebuilding or replacement. In the event the GOVERNMENT shall elect not to require LESSEE to repair, rebuild or replace any item or part of the LEASED PROPERTY lost or damaged, LESSEE shall promptly pay to the GOVERNMENT out of any insurance proceeds collected by LESSEE such portion thereof as may be allocable to loss of or damage to the LEASED PROPERTY. When compliance with a GOVERNMENT request to effect any repair, rebuilding or replacement of any lost or damaged item or part of the LEASED PROPERTY would involve the incurring of costs in excess of LESSEE's liability for such loss or damage under this Clause, LESSEE shall be under no obligation to effect same until after a satisfactory agreement has been reached between the GOVERNMENT and LESSEE with regard to GOVERNMENT reimbursement of such excess of costs to LESSEELease.