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8.1 Indemnity. Tenant shall indemnify, hold harmless and defend City, its elected
<br />officials, officers and employees, from and against any and all actions, claims, damages (including but not
<br />limited to special and consequential damages), administrative proceedings, interest, fines, charges, penalties
<br />and expenses, disabilities or expenses including, without limitation, attorneys' fees (including fees for use
<br />of in-house counsel by a Party), witness costs and court costs that may be asserted by any person or entity,
<br />including Tenant, arising out of or in connection with any of the following circumstances:
<br />8.1.1 Use of Hangar. Use of the Hangar or Airport, or from any activity, work,
<br />or things done, permitted or suffered by Tenant, its employees, agents, contractors, and guests,
<br />invitees, in or about the Hangar or elsewhere at the Airport by Tenant, its agents, employees,
<br />invitees, subtenants, licenses and contractors, and the agents, employees, patrons, contractors and
<br />invitees of Tenants and subtenants, including any use of the Hangar or the Airport not allowed
<br />under this Agreement.
<br />8.1.2 Breach by Tenant. Any breach by Tenant of the terms, covenants or
<br />conditions herein contained.
<br />8.1.3 Other Activities. Any other activities of Tenant, its agents, employees and
<br />subtenants whether or not there is concurrent negligence on the part of City, but excluding liability
<br />due to the sole active negligence or sole willful misconduct of City. This indemnification
<br />obligation is not limited in any way by any limitation on the amount or type of damages or
<br />compensation payable by or for Tenant or its agents under workers' compensation acts, disability
<br />benefit acts or other employee benefit acts.
<br />8.1.4 Upon notice from City, Tenant shall defend City, at Tenant's expense by
<br />counsel satisfactory to City, for any and all claims covered under this Section 8.
<br />9. LIMITATION OF LIABILITY. To the extent permitted by law, City shall not be liable
<br />to the Tenant or Tenant's officers, agents, representatives, guests, contractors, subcontractors, or other
<br />invitees for any damages or loss caused to them, their property, or Tenant's Aircraft by any of the following:
<br />water, rain, wind, snow ice, sleet, hail, fire, storms, earthquake, volcanic eruption, or any other weather
<br />event or condition outside of City's control; any Airport tenant, user, operator, or any other third party; or
<br />by breakage, stoppage, or leakage of utilities on or adjacent to the Hangar. In the event of damage or
<br />destruction to the Hangar, City is under no obligation to provide substitute hangar or storage space to the
<br />Tenant.
<br />10. RISK OF LOSS. Tenant bears all risk of loss or damage to any property stored in the
<br />Hangar. City will not provide insurance for any property stored in the Hangar and is not responsible
<br />for any damage to or loss of the stored property, whether caused by fire, water, earthquake,
<br />liquefaction, theft, terrorism, or any other risk. Tenant acknowledges that insurance is available from
<br />independent insurance companies to protect Tenant in the event of theft, damage, or destruction of
<br />the stored property. Tenant waives the provisions of California Civil Code Section 1932(2) and California
<br />Civil Code Section 1933(4) with respect to any destruction of the Hangar.
<br />11. ENTRY TO HANGAR; MOVING OF TENANT ITEMS. Tenant consents to City's entry
<br />and inspection of the Hangar during the term of this Agreement and any extension thereof, without
<br />notice to Tenant, to determine compliance with the terms hereof, for maintenance or repairs which may
<br />be required in City's sole discretion, to respond to heat/smoke detector alarm, to respond to an emergency
<br />(subject to City's determination), or for any other reasonable purpose. In the event City finds it necessary
<br />that Tenant's commercial vehicle(s), equipment, tools, or supplies must be moved for any non -emergency
<br />purpose, City shall give Tenant notice whenever possible and Tenant shall move the item(s) requested. In
<br />Steven C. Bait - Hangar # 17 7
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