or retained by,
Sublessee, provided that Sublessee shall have fully performed, or concurrently
therewith will fully perform, the terms of Section 10(b) with respect to the
Event of Loss for which such payments are made.
As between Sublessor and Sublessee, the insurance payments for any property
damage loss to the Airframe or any Engine not constituting an Event of Loss with
respect thereto will be applied in payment for repairs or for replacement
property in accordance with the terms of Sections 7 and 8, if not already paid
for by Sublessee, and any balance (or if already paid for by Sublessee, all such
insurance proceeds) remaining after compliance with such Sections with respect
to such loss shall be paid to Sublessee.
(C) REPORTS, ETC.
SUBLESSEE WILL FURNISH, OR CAUSE TO BE FURNISHED, TO
SUBLESSOR, HEAD LESSOR AND THE OWNER PARTICIPANT, ON OR BEFORE THE COMMENCEMENT
DATE AND ON OR BEFORE JULY 1 IN EACH YEAR THEREAFTER DURING THE TERM COMMENCING
JULY, 2006, A REPORT, SIGNED BY AON RISK SERVICES, INC. OR ANY OTHER INDEPENDENT
FIRM OF INSURANCE BROKERS REASONABLY ACCEPTABLE TO SUBLESSOR AND HEAD LESSOR
(THE "INSURANCE BROKERS"), DESCRIBING IN REASONABLE DETAIL THE INSURANCE AND
REINSURANCE THEN CARRIED AND MAINTAINED WITH RESPECT TO THE AIRCRAFT AND STATING
THE OPINION OF SUCH FIRM THAT THE INSURANCE THEN CARRIED AND MAINTAINED WITH
RESPECT TO THE AIRCRAFT COMPLIES WITH THE TERMS HEREOF; PROVIDED, HOWEVER, THAT
ALL INFORMATION CONTAINED IN THE FOREGOING REPORT SHALL NOT BE MADE AVAILABLE BY
SUBLESSOR, HEAD LESSOR OR THE OWNER PARTICIPANT TO ANYONE EXCEPT (A) TO
PROSPECTIVE AND PERMITTED TRANSFEREES OF SUBLESSOR'S, HEAD LESSOR'S, OR THE
OWNER PARTICIPANT'S INTEREST WHO AGREE TO HOLD SUCH INFORMATION CONFIDENTIAL,
(B) TO SUBLESSOR'S, HEAD LESSOR'S, OR THE OWNER PARTICIPANT'S COUNSEL OR
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS OR INDEPENDENT INSURANCE ADVISORS WHO
AGREE TO HOLD SUCH INFORMATION CONFIDENTIAL, (C) AS MAY BE REQUIRED BY ANY
STATUTE, COURT OR ADMINISTRATIVE ORDER OR DECREE OR GOVERNMENTAL RULING OR
REGULATION OR AS MAY BE REQUESTED BY ANY REGULATORY AGENCY OR BODY HAVING
AUTHORITY OR (D) AS MAY BE NECESSARY FOR PURPOSES OF PROTECTING THE INTERESTS OF
ANY SUCH PERSON OR FOR THE ENFORCEMENT OF THIS SUBLEASE BY SUBLESSOR OR THE HEAD
LEASE BY HEAD LESSOR.
SUBLESSEE WILL CAUSE SUCH INSURANCE BROKERS TO AGREE TO
ADVISE SUBLESSOR, HEAD LESSOR, AND THE OWNER PARTICIPANT IN WRITING OF ANY
DEFAULT IN THE PAYMENT OF ANY PREMIUM AND OF ANY OTHER ACT OR OMISSION ON THE
PART OF SUBLESSEE OF WHICH IT HAS KNOWLEDGE AND WHICH MIGHT INVALIDATE OR RENDER
UNENFORCEABLE, IN WHOLE OR IN PART, ANY INSURANCE ON THE AIRCRAFT.
TO THE
EXTENT SUCH AGREEMENT IS REASONABLY OBTAINABLE, SUBLESSEE WILL ALSO CAUSE SUCH
INSURANCE BROKERS TO AGREE TO ADVISE SUBLESSOR, THE HEAD LESSOR AND THE OWNER
PARTICIPANT IN WRITING AT LEAST THIRTY (30) DAYS (SEVEN (7) DAYS IN THE CASE OF
WAR RISK AND ALLIED PERILS COVERAGE), PRIOR TO THE EXPIRATION OR TERMINATION
DATE OF ANY INSURANCE CARRIED AND MAINTAINED ON THE AIRCRAFT PURSUANT TO THIS
SECTION 11.
IN ADDITION, SUBLESSEE