OBTAINABLE, LESSEE WILL ALSO CAUSE SUCH INSURANCE
BROKERS TO AGREE TO ADVISE LESSOR 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
ENGINE PURSUANT TO THIS SECTION 11.
IN ADDITION, LESSEE WILL ALSO CAUSE SUCH
INSURANCE BROKERS TO DELIVER TO LESSOR, ON OR PRIOR TO THE DATE OF EXPIRATION OF
ANY INSURANCE POLICY REFERENCED IN A PREVIOUSLY DELIVERED CERTIFICATE OF
INSURANCE, A NEW CERTIFICATE OF INSURANCE, SUBSTANTIALLY IN THE SAME FORM AS
DELIVERED BY LESSEE TO SUCH PARTIES ON THE COMMENCEMENT DATE.
IN THE EVENT THAT
LESSEE SHALL FAIL TO MAINTAIN OR CAUSE TO BE MAINTAINED INSURANCE AS HEREIN
PROVIDED, LESSOR OR ITS DESIGNEE MAY AT ITS SOLE OPTION PROVIDE SUCH INSURANCE
AND, IN SUCH EVENT, LESSEE SHALL, UPON DEMAND, REIMBURSE LESSOR, AS SUPPLEMENTAL
RENT, FOR THE COST THEREOF TO LESSOR OR SUCH DESIGNEE, AS THE CASE MAY BE,
WITHOUT WAIVER OF ANY OTHER RIGHTS LESSOR OR SUCH DESIGNEE MAY HAVE; PROVIDED,
HOWEVER, THAT NO EXERCISE BY LESSOR OR SUCH DESIGNEE OF SAID OPTION SHALL AFFECT
THE PROVISIONS OF THIS LEASE, INCLUDING THE PROVISIONS OF SECTION 14(G) HEREOF.
(D)
SELF-INSURANCE.
LESSEE MAY NOT SELF-INSURE THE RISKS REQUIRED TO
BE INSURED AGAINST PURSUANT TO THIS SECTION 11; PROVIDED, HOWEVER, THAT WHILE
THE ENGINE IS INSTALLED ON AN AIRFRAME LESSEE MAY SELF-INSURE THE RISKS REQUIRED
TO BE INSURED AGAINST PURSUANT TO SECTION 11(A) AND (B) HEREOF SOLELY TO THE
EXTENT OF ANY APPLICABLE MANDATORY MINIMUM (OR, IF APPLICABLE, PER ANNUM OR
OTHER PERIOD) HULL OR LIABILITY INSURANCE DEDUCTIBLE IMPOSED BY THE HULL OR
LIABILITY INSURERS.
(E)
ADDITIONAL INSURANCE BY LESSOR.
LESSEE MAY AT ITS OWN EXPENSE
CARRY INSURANCE WITH RESPECT TO ITS INTEREST IN THE ENGINE IN AMOUNTS IN EXCESS
OF THAT REQUIRED TO BE MAINTAINED BY THIS SECTION 11; LESSOR MAY CARRY FOR ITS
OWN ACCOUNT AT ITS SOLE COST AND EXPENSE INSURANCE WITH RESPECT TO ITS INTEREST
IN THE ENGINE, PROVIDED THAT SUCH INSURANCE DOES NOT PREVENT LESSEE FROM
CARRYING THE INSURANCE REQUIRED OR PERMITTED BY THIS SECTION 11 OR ADVERSELY
AFFECT SUCH INSURANCE OR THE COST THEREOF.
(F)
INDEMNIFICATION BY GOVERNMENT IN LIEU OF INSURANCE.
WITH
LESSOR'S WRITTEN CONSENT WHICH MAY BE GIVEN OR WITHHELD IN ITS SOLE DISCRETION,
NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION 11 REQUIRING INSURANCE, LESSEE
MAY PROVIDE, IN LIEU OF INSURANCE AGAINST ANY RISK
A2-27
WITH RESPECT TO THE ENGINE, INDEMNIFICATION FROM, OR INSURANCE PROVIDED BY, THE
UNITED STATES GOVERNMENT OR ANY AGENCY OR INSTRUMENTALITY THEREOF THE
OBLIGATIONS OF WHICH ARE BACKED BY THE FULL FAITH AND CREDIT OF THE UNITED
STATES AGAINST SUCH RISK IN AN AMOUNT WHICH, WHEN ADDED TO THE AMOUNT OF
INSURANCE AGAINST SUCH RISK MAINTAINED BY LESSEE WITH RESPECT TO THE ENGINE
(INCLUDING PERMITTED SELF-INSURANCE) SHALL BE AT LEAST EQUAL TO THE AMOUNT OF
INSURANCE AGAINST SUCH RISK OTHERWISE REQUIRED BY THIS SECTION 11.
(G)
APPLICATION OF PAYMENTS DURING EXISTENCE OF DEFAULT.
ANY