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blanket contractual liability. Such insurance must have the following minimum limits of liability: $2,000,000 per occurrence, $2,000,000 policy aggregate, $2,000,000 Personal and Advertising injury — per occurrence, $2,000,000 Products and Completed Operations Aggregate. 2. Property insurance, written on an"All Risk"or Special Form Perils with coverage for broad form water damage including earthquake sprinkler leakage and pollution coverage for damage caused by heat, smoke or fumes from a hostile fire, at full replacement cost value (without deduction for depreciation) and with a replacement cost enforcement covering all of the Building, Premises and Property (Landlord's Property). 3. Worker's Compensation insurance as required by California statute and Employer's Liability coverage of at least $1,000,000 per accident, disease, employee, containing a waiver of subrogation endorsement in favor of Tenant. 17. Subrogation. Landlord and Tenant hereby waive and shall cause their respective insurance carriers to waive any and ail rights of recovery against the other for any loss or damage to person with respect to Tenant's Property, Leasehold Improvements, the Building, the Premises, or any contents thereof. As noted above, Landlord and Tenant also waives subrogation with respect to losses or claims covered by worker's compensation insurance. 18. Casualty Damage. a. Repair; Termination. If all or any part of the Premises is damaged by fire or other casualty, Tenant shall immediateiy notify Landlord in writing. During any period of time that all or a material portion of the Premises is rendered untenantable as a result of a fire or other casualty, the Rent shall abate for the portion of the Premises that is untenantable and not used by Tenant. Landlord shall have the right to terminate this Lease if: (1) the Building shall be damaged so that, in a reasonable person's judgment, substantial alteration or reconstruction of the Building shall be required (whether or not the Premises has been damaged); (2) Landlord Is not permitted by Law to rebuild the Building in substantially the same form as existed before the fire or casualty; (3) the Premises have been materially damaged and there is less than two (2) years of the Term remaining on the date of the casualty;(4)any Mortgagee requires that the insurance proceeds be applied to the payment of the mortgage debt; (5) a material uninsured loss to the Building occurs; or (6) any restoration would be considered "construction" with respect to the Premises within the meaning of Treas. Reg, Section 1.856. Landlord may exercise its right to terminate this Lease by notifying Tenant in writing within sixty (60) days after the date of the casualty. If Landlord does not terminate this Lease, Landlord shall commence and proceed with reasonable diligence to repair and restore the Building and the Leasehold Improvements (exGluding any Alterations -that--were-performed-b Tenant- In--violation-of--this--Lease - - However, in no event shall Landlord be squired to spend more than the insurance proceeds received by Landlord. Landlord shall not be liable for any loss or damage to Tenant's Property or to the business of Tenant resulting in any way from the fire or other casualty or from the repair and restoration of the damage. b. Completion Estimate. If all or any portion of the Premises shall be made untenantable by fire or other casualty, and Landlord has not elected to terminate this Lease pursuant to Section 18,a above, Landlord shall, with reasonable promptness, cause an architect or general contractor selected by Landlord to provide Landlord and Tenant with a written estimate of the amount of time required to substantially complete the repair and restoration 4 HUTTON CENTRE SMRH;4898-2696-6119.6 -�1_ City of Santa Ana(Police.Substation) 072325 92ZK-404113 2219691.1