15 - Grand Theater Management Agreement

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8/15/18 funds held in the Capital Reserve Account for monies spent by PROJECT for capital maintenance and improvement items approved by CITY and related to the Grand Theater during the term of this Agreement, which approval shall not be unreasonably withheld. ARTICLE 6. Insurance and Indemnity 6.1. Liabilitw Insurance. PROJECT agrees, at its sole expense, to obtain and maintain public liability insurance at all times during the Term hereof with reputable insurance companies authorized to transact business in the State of Texas for bodily injury (including death) and property damage with minimum limits of $5,000,000 Combined Single Limit protecting CITY and PROJECT against any liability, damage, claim or demand arising out of or connected with the condition or use of the Leased Premises. Such insurance shall include contractual liability, personal injury and advertising liability, business automobile (including owned, non -owned and hired) and independent contractor liability. Such insurance coverage must be written on an "occurrence" basis. It may be maintained by any combination of single policies and/or umbrella or blanket policies. CITY and its elected and appointed officials, and employees shall be named as additional insured, as their interests appear, on all insurance policies required by this Section. 6.2. Workers' Compensation Insurance. PROJECT agrees, at its sole expense, to obtain and maintain workers' compensation insurance, as required by applicable law, during the Term. The policy will be endorsed to provide a waiver of subrogation as to CITY. 6.3. Property Insuran,,c„e. At all times during the Term of this LEASE, PROJECT shall, at its sole expense, keep all buildings and structures included in the Leased Premises insured against "all risk" of loss for full replacement cost coverage, to include direct loss by fire, windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, boiler and machinery, and flood. Coverage must be written by reputable insurance companies authorized to transact business in the State of Texas. CITY shall be named as an additional insured or additional loss payee, as appropriate. 6.4. Policies. All insurance policies required by this Article shall provide for at least thirty (30) days written notice to CITY before cancellation and certificates or copies of policies of insurance shall be delivered to CITY. If any blanket general insurance policy of PROJECT complies with the terms of this Article, the naming of CITY therein as an additional insured shall be deemed compliance with the requirements for the insurance coverage provided in any such blanket policy. PROJECT shall provide copies of each of the policies required herein to the City no later than the 15'h day after said policies are issued. 6.5. Adjustment of Losses. Any loss under any such insurance policy required under this Article shall be made payable to PROJECT for the benefit of PROJECT and CITY, to the end that PROJECT shall be entitled to collect all money due under such policies payable in the event of and by reason of the loss of or damage to the theater Premises, to be applied as described below. Any accumulation of interest on the insurance proceeds collected by PROJECT shall be added to, and become a part of, the fund being held by PROJECT for the benefit of CITY and PROJECT. The adjustment of losses with the insurer shall be made by PROJECT. 7