FOSTER ASSESSMENT CENTER & TESTING SERVICE (FACTS)

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effect a policy or policies of Worker's Compensation insurance, with coverage not less than the min- imsn required by the State of California. D. Each insurance policy (and certificate thereof) obtained by Tenant pursuant to this lease shall contain a clause that the insurer will provide Omer and Owners designee(s) with at least 30 days prior written notice of any material change, rnnrenewal or cancellation of the policy. Each such insurance policy shall be with an insurance company authorized to do business in the State of Cali- fornia and rated not less than Bests Financial Class X and Best's Policyholder Rating, B+. A cer- tificate (on the standard ACORD form and issued by an authorized representative of the insurer) evidencing the coverage under each such policy, as well as a certified copy of the aforementioned additional insured lessor endorsement, shall be delivered to Owner and Owners designee(s) prior to cmmaencement of the lease term. Each such policy shall provide that any loss payable thereunder shall be payable notwithstanding-. (1) any act, omission or neglect by Tenant, or by any subtenant of Tenant, or (2) any occupation or use of the Property (or any portion thereof) by Tenant, or by any subte- nant of Tenant, for purposes more hazardous than permitted by the terms of such policy or policies, or (3) any foreclosure or other action or proceeditng taken by any mortgagee(s) or trustee(s) pursu- ant to any provision of any mortgage(s) or deed(s) of trust covering the Property, or (4) any change in title or ownership of the Property. E. Any insurance policies required hereunder shall be written as primary policies, not contributing with or in excess of any coverage which Owner, or Owners designee(s) may carry, with loss payable clauses satisfactory to Owner and in favor of Owner, or at Owner's option, in have of Owner and Owner's designee(s). Tenant shall procure and maintain all policies (that it is required to obtain hereunder) entirely at its own expense and shall, at least 20 days prior to the expiration of any such policies, furnish Owner with renewals or "binders" thereof, or Owner shall have the right (but not the obligation, which shall be solely Tenant's to order such insurance and charge the cost the reof to Tenant. Nb such payment by Owner shall constitute a waiver of any other of Owner's rights under this lease. Tenant shall not do or permit to be done anything which shall invalidate the insurance policies referred to herein or the coverage thereunder. If Tenant (or any subtenant of Tenant) does or permits to be done anything which shall reimburse Owner for any additional premiums attributable to any act or omission or operation of Tenant (or any subtenant of Tenant) causing such increase in the cost of insurance. Any amount owed by Tenant under this paragraph shall be payable as additional rent for the month imDediately succeeding the month in which Tenant received a bill therefor from Owner. E. Tf, on account of the failure of Tenant to comply with the provisions of this Article, Owner is deemed a co-insurer by its insurance carrier, then any loss or damage which Owner shall sustain by reason thereof shall be borne by Tenant and shall be immediately paid by Tenant upon receipt of a bill therefor and evidence of such loss. G. Owner makes no representation that the limits of liability specified to be carried by Tenant sunder the terms of this Tease are adequate to protect Tenant against Tenant's indemnification obli- gations under this Lease, and if Tenant believes that any such insurance coverage called for under this Tease is insufficient, Tenant small provide, at its own expense, such additional insurance as Tenant deems adequate, because the limits of any insurance coverage required under this Article shin not limit the liability of Tenant under this Tease. IL If the lease term is more than five years, then (not more frequently than each five years) if in Owners opinion the amount of any insurance coverage maintained by Tenant at that time is not ade- quate, Tenant shall increase the insurance coverage as reasonably required by Owner. ARTICLE 46. GL1CIATIVE RIGHTS. All rights, options and remedies of Owner contained in this lease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and Owner shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law or equity, whether or not stated in this iaase. MAR 1988 -22-