Common use of Insurance Against Loss or Damage to the Aircraft and Engines Clause in Contracts

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor, maintain or cause to be maintained in effect at all times during the Term with insurers of recognized responsibility all risk, agreed value, ground and flight hull insurance, which may exclude war risks and allied perils, covering the Aircraft for an amount not less than the Termination Value from time to time; provided that, neither the Lessee nor any -------- ---- Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded for any reason and properly stored or hangared. Such hull insurance or other personal property insurance of the Lessee shall cover Engines or engines and Parts temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. If and to the extent that the Lessee or a sublessee operates the Aircraft (A) on routes where it maintains war risk insurance in effect with respect to other similar owned or leased aircraft in its fleet, or (B) on routes (other than routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is to carry war risk insurance, the Lessee or such sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the lesser of an amount at least equal to Termination Value or the amount of such insurance customarily carried by corporations engaged in the same or similar business similarly situated with the Lessee and owning or operating similar aircraft and engines on such routes or similar routes, provided that if the requirement to maintain war risk insurance arises under clause (A) of this sentence, such insurance shall be maintained in an amount not less than that maintained by the Lessee or such sublessee on similar aircraft in its fleet. An agreement by the United States Government to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b). During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the insurance required by this Section 9(b), insurance otherwise conforming with the provisions of this Section 9(b) except that the scope of the risks and the type of insurance shall be in substantially similar form, of such types and having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or hangared, provided that the scope of the risks and the type of -------- insurance shall be the same as from time to time applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount equal to the Termination Value from time to time during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor, maintain or cause to be maintained in effect at all times during the Term with insurers of nationally recognized responsibility (i) all risk, agreed value, ground and flight hull insurance, which may may, except as provided below, exclude war risks and allied perils, covering the Aircraft for an amount at all times (even when the Aircraft is grounded or in storage) not less than the Termination Value from time to time; provided that, neither the Lessee nor any -------- ---- Permitted Sublessee shall be required -------- ---- to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded for any reason and properly stored or hangared. Such insurance shall not provide insurers with a right to replace the Airframe or any Engine with another airframe or Engine. Such hull insurance or other personal property insurance of the Lessee (or a Permitted Sublessee) shall cover Engines or engines and Parts temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. If and to the extent that the Lessee or a sublessee Permitted Sublessee operates the Aircraft (A) on routes where it maintains war risk risk, hijacking or allied perils insurance in effect with respect to other similar owned or leased aircraft in its fleet, or (B) on routes (other than routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is to carry war risk insuranceinsurance or (C) in any area of recognized hostilities, the Lessee or such sublessee Permitted Sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the lesser of an amount at least equal to Termination Value or the amount of such insurance customarily carried by corporations engaged in the same or similar business similarly situated with the Lessee and owning or operating similar aircraft and engines on such routes or similar routes, provided that if the requirement from time to maintain war risk insurance arises under clause (A) of this sentence, such insurance shall be maintained in an amount not less than that maintained by the Lessee or such sublessee on similar aircraft in its fleettime. An agreement by the United States Government to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b). During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the insurance required by this Section 9(b), insurance otherwise conforming with the provisions of this Section 9(b) except that the scope of the risks and the type of insurance shall be in substantially similar form, of such types and having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or hangared, provided that the scope of the risks and the type of -------- insurance shall be the same as from time to time applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount equal to the Termination Value from time to time during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights of the Lessee under Section 9(d), the Lessee shall, without expense to the Lessor, maintain or cause to be maintained in effect at all times during the Term with insurers of recognized responsibility all risk, agreed value, ground and flight hull insurance, which may exclude war risks and allied perils, covering the Aircraft for an amount not less than the Termination Value from time to time; provided that, neither the Lessee nor any -------- ---- Permitted Sublessee shall be required to maintain all-risk flight aircraft hull insurance with respect to any period in which the Aircraft is grounded for any reason and properly stored or hangared. Such hull insurance or other personal property insurance of the Lessee shall cover Engines or engines and Parts temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the AirframeAirframe but such insurance need not cover an Engine while attached to an airframe not owned, leased or operated by the Lessee or a permitted sublessee. Such insurance shall be of the type usually carried by the Lessee with respect to similar aircraft and engines, and covering risks of the kind customarily insured against by the Lessee. If and to the extent that the Lessee or a sublessee operates the Aircraft (A) on routes where it maintains war risk insurance in effect with respect to other similar owned or leased aircraft in its fleet, or (B) on routes (other than routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is to carry war risk insurance, the Lessee or such sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the lesser of an amount at least equal to Termination Value or the amount of such insurance customarily carried by corporations engaged in the same or similar business similarly situated with the Lessee and owning or operating similar aircraft and engines on such routes or similar routes, provided that if the requirement to maintain war risk insurance arises under clause (A) of this sentence, such insurance shall be maintained in an amount not less than that maintained by the Lessee or such sublessee on similar aircraft in its fleet. An agreement by the United States Government to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any of the requirements of this Section 9(b). During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the insurance required by this Section 9(b), insurance otherwise conforming with the provisions of this Section 9(b) except that the scope of the risks and the type of insurance shall be in substantially similar form, of such types and having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or hangared, provided that the scope of the risks and the type of -------- insurance shall be the same as from time to time applicable to aircraft owned by the Lessee of the same type similarly on the ground and not in operation, provided further that the Lessee shall maintain insurance against risk of loss -------- ------- or damage to the Aircraft in an amount equal to the Termination Value from time to time during such period that the Aircraft is on the ground and not in operation.

Insurance Against Loss or Damage to the Aircraft and Engines. Subject to the rights (I) Except as provided in clause (II) of the Lessee under this Section 9(d2.07(b), the Lessee shall, without expense to the Lessor, Borrower shall maintain or cause to be maintained in effect effect, at all times during the Term its or any Lessee’s expense, with insurers of recognized responsibility all riskresponsibility, agreed value, ground and flight hull insurance, which may exclude war risks and allied perils, covering the Aircraft for an amount not less than the Termination Value from time to time; provided that, neither the Lessee nor any -------- ---- Permitted Sublessee shall be required to maintain (A) all-risk ground and flight aircraft hull insurance covering each Aircraft and Engine, (B) all-risk ground - coverage of the Engines while removed from each Aircraft and replaced by similar components and (C) all risk property damage insurance covering the Aircraft and Engines (including, without limitation, with respect to any period in which the Aircraft is grounded for any reason or Engine, war risk and properly stored or hangared. Such hull insurance or governmental confiscation and expropriation (other personal property insurance of the Lessee shall cover Engines or engines and Parts temporarily removed from the Airframe, pending replacement by installation of the same or similar Engines, engines or Parts on the Airframe. Such insurance shall be of the type usually carried than by the Lessee government of registry of such Aircraft) and hijacking insurance (with respect to similar aircraft and enginessuch limitations as are customary in the industry)(collectively, and covering risks of the kind customarily insured against by the Lessee. If “Hull War Risk Insurance”), if and to the extent that the Lessee or same is maintained by the Borrower (or, if a sublessee operates the Aircraft (ALease is then in effect, by Lessee) on routes where it maintains war risk insurance in effect with respect to other similar aircraft or engines owned or leased aircraft in its fleet, operated by the Borrower (or (Bsuch Lessee) on the same routes as such Aircraft or Engine is operated, except that the Borrower (other than or such Lessee) shall maintain Hull War Risk Insurance if such Aircraft is operated on routes within the United States, Canada, Mexico, Bermuda and islands other than Cuba in the Caribbean Basin) where the custom in the industry is for major international air carriers flying comparable routes to carry war risk such insurance, the Lessee or such sublessee shall maintain or cause to be maintained such insurance in effect with respect to the Aircraft in the lesser of an amount at least equal to Termination Value or the amount of such insurance customarily carried by corporations engaged in the same or similar business similarly situated with the Lessee and owning or operating similar aircraft and engines on such routes or similar routes, provided that if the requirement to maintain war risk insurance arises under clause (A) of this sentence, such insurance shall be maintained in an amount not less than that maintained by the Lessee or such sublessee on similar aircraft in its fleet. An agreement by the United States Government to insure against or indemnify for substantially the same risks to at least the same amount will satisfy any which is of the requirements of this Section 9(b). During any period that the Aircraft is on the ground and not in operation, the Lessee may carry or cause to be carried, in lieu of the insurance required by this Section 9(b), insurance otherwise conforming with the provisions of this Section 9(b) except that the scope of the risks and the type of insurance shall be in substantially similar form, of such types and having limits within the range of limits (but no less than Termination Value from time to time) as are customarily obtained by similarly situated United States carriers in respect of similar aircraft which are grounded, not in operation, and stored or hangared, provided that the scope of the risks and the type of -------- insurance shall be the same as from time to time applicable to aircraft or engines owned or operated by the Lessee Borrower (or, if a Lease is then in effect, by Lessee) of the same type similarly as such Aircraft or Engine; provided that such insurance shall at all times while any Aircraft, or any Engine is subject to this Security Agreement be for an amount (subject to self-insurance to the extent permitted by Section 2.07(d)) not less than 105% of the allocable contribution of such Aircraft and Engine to the Borrowing Base, subject to standard deductibles. Any policies carried in accordance with this paragraph (b) covering the Aircraft and Engines, and any policies taken out in substitution or replacement for any such policies (i) shall name the Collateral Agent (and, if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease) as an additional insured, as its interest may appear (but without imposing on such party liability to pay premiums with respect to such insurance), (ii) shall provide that all proceeds with respect to a Recovery Event shall be payable to the ground Collateral Agent for application pursuant to Section 2.11 of the Senior Credit Agreement, (iii) shall provide that if the insurers cancel such insurance for any reason whatever, or such insurance lapses for non-payment of premium or if any material change is made in the insurance which adversely affects the interest of the Collateral Agent, such cancellation, lapse or change shall not be effective as to the Collateral Agent (or, if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease) for thirty (30) days (seven (7) days in the case of Hull War Risk Insurance coverage) after issuance to the Collateral Agent and each Lender (or, if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease), respectively, of written notice by such insurers of such cancellation, lapse or change, provided, however, that if any notice period specified above is not reasonably obtainable, such policies shall provide for as long a period of prior notice as shall then be reasonably obtainable, (iv) shall provide that in operationrespect of the interest of the Collateral Agent and each Lender (and, provided further if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease) in such policies the insurance shall not be invalidated by any action or inaction of the Borrower (or, if a Lease is then in effect, any Lessee) or any other Person and shall insure the Collateral Agent (and, if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease) regardless of any breach or violation of any warranty, declaration or condition contained in such policies by the Borrower (or, if a Lease is then in effect, any Lessee), (v) shall waive any right of subrogation of the insurers against the Collateral Agent and each Lender (and, if any Lease shall be in effect, the Borrower in its capacity as lessor under the Lease), and (vi) shall waive any right of the insurers to set-off or counterclaim or any other deduction, whether by attachment or otherwise, in respect of any liability of the Collateral Agent or the Borrower (or any Lessee) to the extent of any moneys due to the Collateral Agent. To the extent that the Lessee shall maintain insurance against risk Borrower maintains Hull War Risk Insurance and the Borrower’s Hull War Risk Insurance provider does not provide for provision of loss -------- ------- or damage direct notice to the Aircraft Collateral Agent and each Lender of cancellation, material change or lapse in the insurance required hereunder, the Borrower hereby agrees that upon receipt of notice of any thereof from such insurance provider it shall give the Collateral Agent and each Lender immediate notice of each cancellation or lapse of, or material change to, such insurance. In the case of a loss with respect to an amount equal engine (other than an Engine) installed on an Airframe, the Collateral Agent shall hold any payment to it of any insurance proceeds in respect of such loss for the account of any third party that is entitled to receive such proceeds. As between the Collateral Agent and the Borrower, the insurance payments for any property damage loss to any Airframe or Engine not constituting a Recovery Event with respect thereto will be applied in payment for repairs or for replacement property in accordance with the terms of Sections 2.05 and 2.06, if not already paid for by the Borrower (or any Lessee or insurer), and any balance (or if already paid for by the Borrower (or any Lessee), all such insurance proceeds) remaining after compliance with such Sections with respect to such loss shall be paid to the Termination Value from time to time during such period that Borrower (or any Lessee if directed by the Aircraft is on the ground and not in operationBorrower).