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Classroom Building, District may, at its sole option, raise the differential between the insurance proceeds and the cost
<br />of reconstruction. At its sole discretion, District may proceed with reasonable diligence to restore the Premises or
<br />New Classroom Building to substantially the same condition in which they were immediately prior to the happening
<br />of the casualty. If District chooses not to restore the Premises or New Classroom Building, District may, at its option,
<br />terminate this Lease and the Tenn and estate granted under this Lease by notifying City in writing of such termination.
<br />In the event of such termination, District shall at the option of the City be required to (a) remove the New Classroom
<br />Building or any portion thereof and restore the Premises to its prior condition at District's sole cost and expense or (b)
<br />convey ownership of the New Class Room Building. Such removal work will be subject to the requirements of Section
<br />10 of this Lease.
<br />(b) If the Premises and/or New Classroom Building are so damaged by fire or other casualty that substantial
<br />alteration or reconstruction of either or both are required, (i) if such damage cannot be substantially repaired with
<br />reasonable diligence within two hundred (200) days thereafter, as reasonably determined by District after consultation
<br />with City or (ii) if such damage is not covered by insurance carried by District, then District may, at its option,
<br />terminate this Lease and the Term and estate granted under this Lease by notifying City in writing of such termination.
<br />In the event of such termination, District shall at the option of the City be required to (a) remove the New Classroom
<br />Building or any portion thereof and restore the Premises to its prior condition at District's sole cost and expense or (b)
<br />convey ownership of the New Class Room Building. Such removal work will be subject to the requirements of Section
<br />10 of this Lease.
<br />(c) For the sake of clarity, in the event that District terminates this lease pursuant to subsection (a) or (b) of
<br />Section 18 of this Agreement, District shall not be entitled to receive the fair market value of the District's interest in
<br />the Premises and the New Classroom Building as provided by Section 24.2(b)(iii)(a) of this Agreement. The New
<br />Classroom Building shall become the property of the City at no cost to the City pursuant to Section 13.1 of this Lease,
<br />and District shall execute a quitclaim pursuant to Section 29.10(b) of this Lease and shall take all other actions to
<br />occur upon termination under this Lease.
<br />SECTION 19 INSURANCE
<br />District and City shall maintain public liability insurance or self-insurance, generally at levels currently in effect,
<br />insuring against all liability of City and District in connection with the Parties' use of the New Classroom Building
<br />and Additional Site Improvements. District and City shall each maintain public liability insurance or self-insurance,
<br />generally at levels currently in effect for each agency, insuring against all liability of City and District and their
<br />authorized representatives arising out of and in connection with City's and District's Use of the Sandpiper Joint Use
<br />Site.
<br />SECTION 20 PROPERTY INSURANCE
<br />District shall procure, pay for and maintain in effect policies of property insurance covering the New Classroom
<br />Building that are similar to the insurance coverage it has in place from time to time on its other school classroom
<br />facilities.
<br />SECTION 21 INDEMNIFICATION BY DISTRICT
<br />District shall defend, indemnify and save City harmless against and from all liabilities, damages, losses, claims, actions
<br />or proceedings (including, without limitation any petition for review thereof) (each, for purposes of this Section 21, a
<br />"Challenge") by or on behalf of any person, firm, corporation, or other entity to the extent arising during the Term
<br />from (i) District's breach or default in the performance of any of its covenants or agreements under this Lease; (ii) any
<br />negligence of District or any of its employees, officers, agents, contractors, or subcontractors; (iii) any loss -of -life,
<br />accident, injury or damage whatsoever caused to any person, firm, corporation, or other entity, occurring during the
<br />Term in or on the New Classroom Building, except where such accident, injury, or damage was caused by City's
<br />gross negligence, reckless, or willful misconduct or directly results from a City -sponsored event or activity, in which
<br />ATTY/AGR/2017.041/GROUND LEASE—SANDPIPER
<br />REV: 03-01-17 JS
<br />Page 14 of 33
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