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e4; voi F9 <br />4Ei:i24415 QFF: 29g~j X48 <br />5.1. Maintenance. The Parties acknowledge that the Hotel and the Conference Center <br />are designed to operate as an integrated project. As such, JQH agrees to maintain all <br />improvements hereafter constructed on the Hote] Site (including, without limitation, <br />landscaping) in good condition and repair and make all necessary replacements thereto so that <br />throughout the term of this Agreement, the Hotel and Hotel Site are maintained in an upscale <br />condition typical of that customarily found at other "upscale" hotels in the State of Texas. <br />5.2. Insurance. JQH, with respect to the Hotel and the Hotel Site, and the City, with <br />respect to the Conference Center and Conference Center Site, shall maintain at its respective sole <br />cost and expense: <br />5.2.1. "Special Form" Commercial Property Insurance (ISO Special <br />Causes of Loss Form (CP 10 30) or its equivalent) on any improvement now or hereafter <br />constructed on said property. All insurance, unless agreed by the other party, shall be for <br />the full insurable value of the improvements on the respective properties, with a <br />deductible amount no greater than that retained by owners of similaz properties in the <br />State of Texas at the time the policy in question is obtained. No policy of insurance <br />required under this Section 5.2.1 shall be written such that the proceeds thereof will <br />produce less than the minimum of coverage required hereunder by reason of co-insurance <br />provisions or otherwise. The term "full insurable value" means one hundred percent <br />(100%) of the actual replacement cost of the improvements constructed on said property <br />(excluding foundation and excavation costs and costs of underground flues, pipes, drains <br />and other uninsurable items). For so long as the City holds a deed of trust lien on the <br />Hotel Site, the insurance maintained by JQH shall name City as mortgagee and loss payee. <br />5.2.2. Commercial General Liability Insurance on a "occurrence" basis <br />against claims for personal injury, liability and liability for death, bodily injury and <br />damage to property, products and completed operations, all in limits, from time to time, <br />equal to those customarily held by owners of similar projects in the State of Texas, with <br />respect to any one occurrence and the aggregate of all occurrences during any given <br />annual policy period. The liability insurance maintained by JQH with respect to the Hotel <br />and Hotel Site shall name the City as an additional insured. Such insurance shall include <br />contractual liability, personal injury and advertising liability, business automobile <br />(including owned, not owned and hired) and independent contractor liability coverage. <br />The liability insurance required to be maintained hereunder may be maintained by any <br />combination of single policies and such umbrella or blanket policies so long as the level of <br />coverage is not impaired or reduced by the use thereof. Furthermore, if the liability <br />insurance policies maintained by JQH does not contain the standard ISO Separation of <br />Insureds Provision, or a substantially similaz clause, such liability insurance policies shall <br />be endorsed to provide cross-liability coverage at JQH's expense. <br />5.2.3. During any period of construction on either property, the owner <br />thereof shall maintain, or cause others to maintain, builder's risk insurance (non-reporting <br />form) with completed operations coverage of the type customarily carried in the case of <br />similaz construction for one hundred percent (100%) of the full replacement cost of work <br />in place and materials, supplies and equipment that are intended to be installed in the <br />construction regardless of whether same are stored at or upon the property or off of the <br />property in question. <br />803273 4 21 <br />