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shall be equal to the full insurable replacement cost of Ih'e Premises, as the sante shall exist from time to time, or the amount required by any Lender.
<br /> but in no event more than the commercially reasonable and available insurable value thereof. Lessee Owned Alterations and Utility Installations,Trade
<br /> Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If the coverage is available and commercially appropriate, such
<br /> policy or policies shall insure against all risks of direct'Ohysical less or damage (except the perils of flood andlor earthquake unless required by a
<br /> Lender),including coverage for debris removal and the eriforcemenl of any Applicable Requirements requiring the upgrading,demolition,reconstruction
<br /> or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in
<br /> Ilei of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage
<br /> amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price index for All Urban Consumers for the city nearest to where
<br /> the Premises are located. If such insurance coverage hada deductible clause,the deductible amount shall not exceed$5,000 per occurrence.
<br /> (b) Rental Value. Lessor shalt also obtain and keep in force a policy or policies in the name of Lessor with loss payable to
<br /> Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days("Rental Value
<br /> insurance"), Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be
<br /> adjusted annually to reflect the projected Rent otherwise payable by Lessee.for the next 12 month period.
<br /> (c) Adjacent Premises. Lessee shall pay for any increase in the premiums for the property insurance of the Building and for
<br /> the Common Areas or other buildings in the Project if said,increase is caused by Lessee's acts, omissions.use or occupancy of the Premises.
<br /> (d) Lessee's Improvements."-'Since Lessor is the Insuring Party, Lessor shall not be required to insure Lessee Owned
<br /> Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this Lease.
<br /> 8.4 Lessee's Property; Business Interruption Insurance;Worker's Compensation Insurance.
<br /> (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property. Trade
<br /> Fixturesand lessee Owned Alterations and Utiiily Installations, Such insurance shall be full replacement cost coverage with a deductible of not to
<br /> exceed 51.000 per occurrence. The proceeds from ariy such insurance shall be used by Lessee for the replacement of personal property, Trade
<br /> 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
<br /> reimburse Lessee for direct or indirect loss of earnings attdbutabie to all perils commonly insured against by prudent lessees in the business of Lessee
<br /> or attributable to prevention of access to the Premises as,a result of such perils.
<br /> (c) Worker's Compensation insurance. Lessee shall obtain and maintain Worker's Compensation insurance in such
<br /> amount as may be required by Applicable Requirements. Such policy shag include a 'Waiver of Subrogation' endorsement. Lessee shall provide
<br /> Lessor with a copy of such endorsement along with the certificate of insurance or copy of the policy required by paragraph 8.5.
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<br /> (d) No Representation of Adequate Coverage: Lessor makes no representation that ;he limits or forms of coverage of
<br /> insurance specified herein are adequate to cover Lessee's properly,business operations or obligations under this Lease.
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<br /> 8.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a"General Poficyhoiders
<br /> Rating"of at least A VII, as set forth in the most current issue of "Best's Insurance Guide", or such other rating as may be required by a Lender.
<br /> Lessee shall not do or permit to be done anything whiGh invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to
<br /> Lessor certified copies of policies of such insurance or certificates with copies of the required endorsements evidencing the existence and amounts of
<br /> the required insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor Lessee shall,
<br /> at least 10 days prior to the expiration of such policies, fiifrlish Lessor with evidence of renewals or"insurance binders" evidencing renewal thereof,or
<br /> Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall Or, payable by Lessee to Lessor upon demand. Such
<br /> 9.
<br /> policies shall be for a term of at least one year, or the length of the remaining term of this Lease,whichever is less. If either Party shall fail to procure
<br /> and maintain the insurance required to be carried by it, the other Party may,but shall not be required to, procure 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
<br /> other, and waive their entire right to recover damages against,the other, for loss of or damage to its property arising out of or incident to the perils
<br /> required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required,or by any
<br /> deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such
<br /> companies may have against Lessor or Lessee, as the case may be.so 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
<br /> the Premises, Lessor and its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents andlor
<br /> damages liens,judgments,penalties,attorneys'and consultants'fees, expenses andlor liabilities arising out of, involving,or in connection with. the use
<br /> andlor occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters. Lessee
<br /> shall upon notice defend the same at Lessee's expense'6y counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such
<br /> 5.
<br /> defense- Lessor need not have first paid any such claim in order to be defended or indemnified.
<br /> 8.8 Exemption of Lessor and its Agents from Liability. Notwithstanding the negligence or breach of this Lease by Lessor or its
<br /> agents, neither Lessor nor its agents shall be liable under'any circumstances for: (i)injury or damage to the person or goods, wares, merchandise or
<br /> o fh�r property of Lessee, Lessee's employees. contractors.'invitees, customers.or any other person in or about the Premises.whether such damage or
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<br /> INITIALS INITIALS
<br /> Q1999-AIR COMMERCIAL REAL ESTATE ASSOCIATION FORM MTN-14-2113E
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