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13. Payment when due of due all taxes and assessments against any equipment, inventory and <br />other personal property at or in the Facility, and payment when due of all sales, excise, <br />income and other taxes levied upon its business operations at the Facility. <br />14. Procuring and maintaining liability insurance in full force at its expense as set forth in the <br />City Lease and in the Minimum Standards. This insurance shall be written so that the City <br />must be notified in writing at least 3 0 days in advance of cancellation, restrictive amendment <br />ornon-renewal. SPECIALIZED AERO SERVICES shall file certificates of insurance with <br />the City upon execution of this Agreement and annually thereafter. All insurance required <br />under this paragraph shall be primary over any other insurance coverage Officers Club <br />AeroVentures San Marcos #2, LP or the City may have, and shall be written with the City as <br />an additional insured. In any event, SPECIALIZED AERO SERVICES is fully responsible <br />for all losses arising out of, resulting from or connected with all activity under this <br />Agreement whether or not the losses are covered by insurance. The City's acceptance of <br />insurance certificates that do not comply with these requirements will not release <br />SPECIALIZED AERO SERVICES from compliance with these provisions. <br />15. Procuring and maintaining fire and property damage insurance for all contents, goods, stock, <br />and any personal property which is or may be situated upon the Property or Facility. <br />16. Holding harmless, indemnifying and defending the City and its officers, agents and <br />employees from and against claims and suits. <br />17. Use, occupancy and storage of property on the Property at SPECIALIZED AERO <br />SERVICES' own risk, and holding harmless and releasing the City and its officers, agents <br />and employees from all claims, suits and actions by SPECIALIZED AERO SERVICES for <br />loss of life, personal injury or property damage occurring at the Airport or on the Property, <br />including those resulting from the sole negligence or other actionable conduct of the <br />City or its officers, agents or employees, or from the acts or omissions of third parties. <br />18. Eminent domain as to all or part of the Facility. <br />19. Providing notice to the City of any damage caused to the Facility by fire or other casualty. <br />20. Securing the advance written consent of Officers Club AeroVentures San Marcos #2, LP and <br />the City as to any sublease of its interest in the Facility. <br />21. Events of default and remedies. <br />22. Not engaging in unlawful discrimination in the conduct of business operations, use of the <br />Facility, or employment activities. <br />23. Furnishing services on a fair, equal and nondiscriminatory basis to all users, and charging <br />fair, reasonable and nondiscriminatory prices for each unit or service. SPECIALIZED <br />AERO SERVICES may offer reasonable and nondiscriminatory discounts, rebates, or similar <br />price reductions to volume purchasers. <br />Section 12. City's Reserved Rights. <br />1. The City reserves the right to operate the Airport in accordance with, and this Agreement is <br />subordinate to, the City's obligations to the Federal and State governments under any of the <br />agreements for which aid for development of the Airport was or will be granted. If these <br />obligations unreasonably restrict SPECIALIZED AERO SERVICES' use of the Facility, then <br />SPECIALIZED AERO SERVICES may terminate this Agreement, and the parties will have <br />no further obligations. <br />4 <br />