SanDisk 2004 Annual Report Download - page 97

3. In the event the Lessee receives any damage or disadvantage due to the lack of the Performances in the Property, the Lessee may,
at its own cost and responsibility, claim the recovery of such damage or disadvantage directly to the Property Manufacturer or the
supplier of the Parts pursuant to the right described in the second sentence of the preceding paragraph, and the Lessors shall not be
responsible for such claim. Such claim shall be without prejudice to the obligation of the Lessee under Article 14.
Article 9. Loss, Damages and Share of Risks
1. In the event any Total Loss Event occurs to the entire Property or any of its Unit Component (except for the case attributable to the
Lessors), the Lessee shall immediately notify such fact to the Lessors, and shall pay to the Lessors the Liquidated Damages and
any other liabilities due as of the date of such payment, which is the earlier date of (a) 90 days after the occurrence of the Total
Loss Event (except in cases where the Lessors and Lessee separately agree that such a Total Loss Event has occurred due to any
reason not attributable to the Lessee, or (b) the Bank Business Day immediately following the date of payment of any amount
larger than the Liquidated Damages stipulated below as the insurance benefit concerning the insurance stipulated in Article 19.
2. In the event the Lessee has paid the amount payable under the preceding paragraph in full, the Lessors shall assign to the Lessee
the rights relating to the Property or the Unit Component subject to the Total Loss Event and the claims towards a third party
obtained by the occurrence of the Total Loss Event (excluding the claims for compensation or indemnification of the damage
liability that shall be borne by the Lessors) as it is at the time of such assignment and without any warranty on the Performances,
and financial ability, creditworthiness or others of such third party.
3. In the event the Lessors receive damage compensation from a third party due to the occurrence of the Total Loss Event on the
Property or the Unit Component (including any other money paid for the purpose of compensating and/or indemnifying the losses,
disadvantages and the like caused by the Total Loss Event without regard to the name of such payment, but excluding the money
for compensating and/or indemnifying the damage liability to be borne by the Lessors), or the Lessor receives the insurance
benefits for the total loss and the Lessee fails to pay the Liquidated Damages by due date stipulated in Paragraph 1 above (if the
due date under Paragraph 1 reaches based on the payment of insurance benefits for the total loss, without regard to whether the
Lessee was aware of such fact), the received amount shall be applied to the payment of the applicable Liquidated Damages, and
any remaining amount shall be immediately returned to the Lessee after deduction of any outstanding amount payable by the
Lessee to the Lessors under the Relating Agreement (including the relevant delinquency charges). In the event such application is
not sufficient, the Lessee shall be responsible to pay the remaining part of the liability. Furthermore, in the event the Lessee has
paid the Liquidated Damages at the time of the above, the Lessors shall immediately reimburse such damage compensation to the
Lessee after deducting the outstanding amount payable by the Lessee under the Relating Agreements, if any.
4. During the Lease Term, the Lessee shall bear all risks and the relevant costs concerning the losses (including those under the Total
Loss Event) or damages of the Property or the Parts (in either of the foregoing, excluding the case attributable to the Lessors).
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