SHALL IN NO EVENT LIMIT THE LIABILITY OF
TENANT UNDER THIS LEASE.
SUCH INSURANCE SHALL (I) NAME LANDLORD, AND ANY OTHER
PARTY THE LANDLORD SO SPECIFIES, AS AN ADDITIONAL INSURED, INCLUDING LANDLORD'S
MANAGING AGENT, IF ANY; (II) SPECIFICALLY COVER THE LIABILITY ASSUMED BY TENANT
UNDER THIS LEASE, INCLUDING, BUT NOT LIMITED TO, TENANT'S OBLIGATIONS UNDER
SECTION 10.1 OF THIS LEASE; (III) BE ISSUED BY AN INSURANCE COMPANY HAVING A
RATING OF NOT LESS THAN A-X IN BEST'S INSURANCE GUIDE OR WHICH IS OTHERWISE
ACCEPTABLE TO LANDLORD AND LICENSED TO DO BUSINESS IN THE STATE OF CALIFORNIA;
(IV) BE PRIMARY INSURANCE AS TO ALL CLAIMS THEREUNDER AND PROVIDE THAT ANY
INSURANCE CARRIED BY LANDLORD IS EXCESS AND IS NON-CONTRIBUTING WITH ANY
INSURANCE REQUIREMENT OF TENANT; (V) BE IN FORM AND CONTENT REASONABLY
ACCEPTABLE TO LANDLORD; AND (VI) PROVIDE THAT SAID INSURANCE SHALL NOT BE
CANCELED OR A MATERIAL POLICY CHANGE BE MADE UNLESS THIRTY (30) DAYS' PRIOR
WRITTEN NOTICE SHALL HAVE BEEN GIVEN TO LANDLORD AND ANY MORTGAGEE OF LANDLORD.
ALL COMMERCIAL GENERAL LIABILITY AND PROPERTY DAMAGE LIABILITY POLICIES
MAINTAINED BY TENANT WILL CONTAIN A PROVISION THAT LANDLORD AND ANY OTHER
ADDITIONAL INSURED, ALTHOUGH NAMED AS AN INSURED, WILL NEVERTHELESS BE ENTITLED
TO RECOVER UNDER SUCH POLICIES FOR ANY LOSS SUSTAINED BY LANDLORD, LANDLORD'S
AGENTS, AND LANDLORD'S EMPLOYEES AS A RESULT OF THE ACTS OR OMISSIONS OF
TENANT.
THE INSURANCE REQUIRED TO BE MAINTAINED BY TENANT UNDER THIS ARTICLE 10
MAY BE SUBJECT TO COMMERCIALLY REASONABLE DEDUCTIBLES (NOT TO EXCEED
$100,000);
PROVIDED, HOWEVER, THAT THE ORIGINAL TENANT (AND ANY PERMITTED TRANSFEREE TO
WHOM ALL OF TENANT'S INTEREST IN THIS LEASE HAS BEEN ASSIGNED) SHALL BE
PERMITTED TO MAINTAIN COMMERCIALLY REASONABLE DEDUCTIBLES (IN EXCESS OF
$100,000) IN CONNECTION WITH ITS COVERAGE FOR PERILS CAUSED BY FLOOD, WINDSTORM
AND/OR EARTHQUAKES.
TENANT SHALL DELIVER CERTIFICATES EVIDENCING SUCH POLICIES
TO LANDLORD BEFORE THE EARLIER TO OCCUR OF (A) LEASE COMMENCEMENT DATE, AND
(B) THE DATE TENANT COMMENCES TO OCCUPY ANY PORTION OF THE PREMISES, AND AT
LEAST THIRTY (30) DAYS BEFORE THE EXPIRATION DATES THEREOF.
IN THE EVENT TENANT
SHALL FAIL TO PROCURE SUCH INSURANCE, OR TO DELIVER SUCH CERTIFICATES TO
LANDLORD, LANDLORD MAY, AT ITS OPTION, PROCURE SUCH POLICIES FOR THE ACCOUNT OF
TENANT, AND THE COST THEREOF SHALL BE PAID TO LANDLORD WITHIN FIVE (5) DAYS
AFTER DELIVERY TO TENANT OF BILLS THEREFOR.
10.5
SUBROGATION.
LANDLORD AND TENANT INTEND THAT THEIR RESPECTIVE
PROPERTY LOSS RISKS SHALL BE BORNE BY REASONABLE INSURANCE CARRIERS TO THE
EXTENT ABOVE PROVIDED, AND LANDLORD AND TENANT HEREBY AGREE TO LOOK SOLELY TO,
AND SEEK RECOVERY ONLY FROM, THEIR RESPECTIVE INSURANCE CARRIERS IN THE EVENT OF
A PROPERTY LOSS TO THE EXTENT THAT SUCH COVERAGE IS AGREED TO BE PROVIDED
HEREUNDER.
THE PARTIES EACH HEREBY WAIVE ALL RIGHTS AND CLAIMS AGAINST EACH
OTHER FOR SUCH LOSSES, AND WAIVE ALL RIGHTS OF SUBROGATION OF THEIR RESPECTIVE
INSURERS, PROVIDED SUCH WAIVER OF SUBROGATION SHALL NOT AFFECT THE RIGHT TO THE
INSURED TO RECOVER THEREUNDER.
THE PARTIES AGREE THAT THEIR RESPECTIVE
INSURANCE