WILL ALSO CAUSE SUCH INSURANCE BROKERS TO
DELIVER TO SUBLESSOR, HEAD LESSOR AND THE OWNER PARTICIPANT, 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 SUBLESSEE TO SUCH PARTIES ON THE COMMENCEMENT DATE.
IN THE EVENT THAT SUBLESSEE SHALL FAIL TO MAINTAIN OR CAUSE TO BE
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MAINTAINED INSURANCE AS HEREIN PROVIDED, SUBLESSOR OR ITS DESIGNEE MAY AT ITS
SOLE OPTION PROVIDE SUCH INSURANCE AND, IN SUCH EVENT, SUBLESSEE SHALL, UPON
DEMAND, REIMBURSE SUBLESSOR, AS SUPPLEMENTAL RENT, FOR THE COST THEREOF TO
SUBLESSOR OR SUCH DESIGNEE, AS THE CASE MAY BE, WITHOUT WAIVER OF ANY OTHER
RIGHTS SUBLESSOR OR SUCH DESIGNEE MAY HAVE; PROVIDED, HOWEVER, THAT NO EXERCISE
BY SUBLESSOR OR SUCH DESIGNEE OF SAID OPTION SHALL AFFECT THE PROVISIONS OF THIS
SUBLEASE, INCLUDING THE PROVISIONS OF SECTION 14(G) HEREOF.
(D) SELF-INSURANCE.
SUBLESSEE MAY NOT SELF-INSURE THE RISKS REQUIRED TO BE
INSURED AGAINST PURSUANT TO THIS SECTION 11; PROVIDED, HOWEVER, THAT SUBLESSEE
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 PER AIRCRAFT (OR, IF APPLICABLE, PER ANNUM OR OTHER PERIOD) HULL OR
LIABILITY INSURANCE DEDUCTIBLE IMPOSED BY THE AIRCRAFT HULL OR LIABILITY
INSURERS.
(E) ADDITIONAL INSURANCE BY HEAD LESSOR AND SUBLESSOR.
SUBLESSEE MAY AT ITS OWN
EXPENSE CARRY INSURANCE WITH RESPECT TO ITS INTEREST IN THE AIRCRAFT IN AMOUNTS
IN EXCESS OF THAT REQUIRED TO BE MAINTAINED BY THIS SECTION 11; THE OWNER
PARTICIPANT (EITHER DIRECTLY OR THROUGH HEAD LESSOR) OR SUBLESSOR MAY CARRY FOR
ITS OWN ACCOUNT AT ITS SOLE COST AND EXPENSE INSURANCE WITH RESPECT TO ITS
INTEREST IN THE AIRCRAFT, PROVIDED THAT SUCH INSURANCE DOES NOT PREVENT
SUBLESSEE 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 SUBLESSOR'S
WRITTEN CONSENT WHICH MAY BE GIVEN OR WITHHELD IN ITS SOLE DISCRETION,
NOTWITHSTANDING ANY PROVISIONS OF THIS SECTION 11 REQUIRING INSURANCE, SUBLESSEE
MAY PROVIDE, IN LIEU OF INSURANCE AGAINST ANY RISK WITH RESPECT TO THE AIRCRAFT,
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 SUBLESSEE
WITH RESPECT TO THE AIRCRAFT (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.
(I)
ANY AMOUNT REFERRED TO IN PARAGRAPH
(B) OF THIS SECTION 11 WHICH IS PAYABLE TO OR RETAINABLE BY SUBLESSEE SHALL NOT
BE PAID TO OR RETAINED BY SUBLESSEE IF AT THE TIME OF SUCH PAYMENT OR RETENTION
A DEFAULT OR AN EVENT OF