|
omission of Lessee, requirements of the holder of mortgage or deed of trust covering the Premises, increased valuation of the Premises and/or a premium rate
<br />increase. The parties are encouraged to fill in the Base Premium in Paragraph 1.8 with a reasonable premium for the Required Insurance based on the Agreed Use of
<br />the Premises. If the parties fail to insert a dollar amount in Paragraph 1.8, then the Base Premium shall be the lowest annual premium reasonably obtainable for the
<br />Required Insurance as of the commencement of the Original Term for the Agreed Use of the Premises. In no event, however, shall Lessee be responsible for any
<br />portion of the increase in the premium cost attributable to liability Insurance carried W Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence.
<br />(b) Lessee shall pay any such Insurance Cost Increase to Lessor within 30 days after receipt by Lessee of a copy of the premium statement or other
<br />reasonable evidence of the amount due. if the insurance policies maintained hereunder cover other property besides the Premises, Lessor shall also deliver to Lessee
<br />a statement of the amount of such Insurance Cost Increase attributable only to the Premises showing In reasonable detail the manner in which such amount was
<br />computed- Premiums for policy periods commencing prior to, or extending beyond the term of this Lease, shall be prorated to correspond to the term of this Lease.
<br />8.2 Liability Insurance.
<br />(a) carried by lessee- Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an
<br />additional insured against claims for bodily Injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of
<br />the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000.000
<br />per occurrence with an annual aggregate of not less than 52,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad
<br />as the Insurance Service Organization's "Additional Insured -Managers or Lessors of Premises' Endorsement. The policy shall not contain any intra-insured exclusions
<br />as between insured persons or organiwtions, but shall include coverage for liability assumed under this Lease as an "insured cordracf" for the performance of Lessee's
<br />indemnity obligations under this Lease. The limits of Said insurance shag not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
<br />Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance
<br />carried by Lessor, whose insurance shall be considered excess insurance only.
<br />(b) Carded by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not 10 lieu of, the insurance required to
<br />be maintained by Lessee. Lessee shall not be named as an additional insured therein.
<br />8.3 Property Insurable -Building, Improvements and Renal Value.
<br />(a) Building and Improvements- The Insuring Parry shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor,
<br />any ground fessm, and to any Lender insuring loss of damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of
<br />the Premises, as the same shall exist from time to time, or the amount required by any Lender, but In no event more than the comme.rcla0y reasonable and available
<br />insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If
<br />the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood
<br />and/or earthquake unless required by a Lender or included in the Base Premium), including coverage for debris removal and the enforcement of any Applicable
<br />Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result at covered loss. Said policy or policies
<br />shall also contain an agted valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase In the
<br />annual property insurance coverage amount by a factor of not less than the adjusted U.S. Department of labor Consumer Price Index for All Urban Consumers for the
<br />city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence,
<br />and Lessee shall be liable for such deductible amount in the event of an insured Loss.
<br />(b) Rental Value. The Insuring Parry shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender,
<br />insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain
<br />an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable
<br />by Lessee, for the next 12 month period. Lessee shag be liable for any deductible amount in the event of such loss.
<br />(c) Adjacent Premises. If the Premises am part of a larger budding, or of a group of buildings owned by Lessor which are adjacent to the Premises, the
<br />Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee's acts, omissions, use or
<br />occupancy of the Premises.
<br />8.4 Lessee's Pmperty; Business Interruption Insurable; Worker's compensation Insurance.
<br />(a) Property Damage. Lessee shall obtain and maintain Insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee. Owned
<br />Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,0W per occurrence. The proceeds
<br />from any such insurance shall be used by Lessee for the replacement at personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.
<br />(b) Business interruption. Lessee shall obtain and maintain loss of Income and extra expense insurance in amounts as will reimburse Lessee for direct or
<br />indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access M the
<br />Premises as a result of such perils.
<br />(c) Worker's Compensation insurance. Lessee shall obtain and maintain worker's Compensation insurance In such amount as may be required by
<br />Applicable Requirements. Such policy shall include a'Waiver of Subrogation' endorsement. Lessee shall provide Lessorwith a copy of such endorsement along with
<br />the certificate of insurance, or copy of the policy required by Paragraph S.S.
<br />(d) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of Insurance specified herein are
<br />adequate to cover Lessee's property, business operations or obligations under this Lease-
<br />8.5 Insurancee Policies. Insurance required herein shall be, by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII,
<br />as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender. Lessee shall not do or permit to be done
<br />anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such Insurance or
<br />certficates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject
<br />to modification except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of
<br />renewals or "insurance binders" evidencing renewal thereof, or Lessor may Increase his liability insurance coverage and charge the cost thereof to Lessee, which
<br />amount shall be payable by Lessee to Lessor upon demand. Such policies shag be for a term of at least one year, or the length of the remaining term of this Lease,
<br />whichever is less- If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure
<br />and maintain the same.
<br />8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and lessor each hereby, release and relieve the other, and waive their entire
<br />right to recover damages against the other, for loss of or damage to its property arising out of of incident to the perils required to be insured' against herein. The
<br />effect of such releases and waivers is not limited by the amount of insurance carried or required. or by any deductibles applicable hereto. The Parties agree to have
<br />their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the case may be, so
<br />long as the insurance is not invalidated thereby.
<br />8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and
<br />its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties,
<br />Page 6 of 16
<br />INITIALS s Ie INITIALS
<br />® 2017 AIR CRPIV1�rigQQC"ed. — 4�12021
<br />eseS"rG-27. Revised 11-01-2017
<br />
|