RESTORATION OF THE PREMISES CANNOT BE SUBSTANTIALLY
COMPLETED WITHIN SIXTY (60) DAYS AFTER THE DATE OF SUCH DAMAGE, AND (II) SUCH
DAMAGE RENDERS UNUSABLE MORE THAN TWENTY-FIVE PERCENT (25%) OF THE PREMISES,
THEN, IN SUCH EVENT, THE LANDLORD OR TENANT MAY ELECT TO TERMINATE THIS LEASE
UPON WRITTEN NOTICE TO THE OTHER PARTY WITHIN FORTY-FIVE (45) DAYS AFTER THE
DATE OF SUCH FIRE OR OTHER CASUALTY AND, IF THIS LEASE IS NOT SO TERMINATED,
LANDLORD SHALL PROMPTLY COMMENCE TO REPAIR AND RESTORE SUCH DAMAGE, IN WHICH
EVENT THIS LEASE SHALL CONTINUE IN FULL FORCE AND EFFECT, BUT THE BASE RENTAL
AND ADDITIONAL RENTAL SHALL BE PARTIALLY ABATED AS PROVIDED FOR IN PARAGRAPH
10.01.
10.06.
LANDLORD ACKNOWLEDGES AND AGREES THAT IN THE EVENT THE PREMISES ARE
DAMAGED BY FIRE, EARTHQUAKE, ACT OF GOD. THE ELEMENTS OR OTHER CASUALTY TO SUCH
ART EXTENT THAT THE PREMISES ARE RENDERED UNUSABLE BY TENANT FOR THEIR INTENDED
USE AND THIS LEASE IS NOT TERMINATED PURSUANT TO THE PROVISIONS OF THIS SECTION
10, LANDLORD SHALL USE COMMERCIALLY REASONABLE EFFORTS AT NO OUT-OF-POCKET COSTS
TO LANDLORD TO TEMPORARILY RELOCATE TENANT INTO OTHER SPACE THEN OWNED BY
LANDLORD DURING THE PERIOD OF RESTORATION.
11.
INSURANCE.
(A)
TENANT COVENANTS AND AGREES THAT FROM AND AFTER THE DATE OF DELIVERY OF
THE PREMISES FROM LANDLORD TO TENANT, TENANT WILL CARRY AND MAINTAIN, AT ITS
SOLE COST AND
16
EXPENSE, THE FOLLOWING TYPES OF INSURANCE, IN THE AMOUNTS SPECIFIED AND IN THE
FORM HEREINAFTER PROVIDED FOR:
(I)
LIABILITY INSURANCE IN THE COMMERCIAL GENERAL LIABILITY FORM (OR
REASONABLE EQUIVALENT THERETO) COVERING THE PREMISES AND TENANT'S USE THEREOF
AGAINST CLAIMS FOR PERSONAL INJURY OR DEATH, PROPERTY DAMAGE AND PRODUCT
LIABILITY OCCURRING UPON, IN OR ABOUT THE PREMISES, SUCH INSURANCE TO BE WRITTEN
ON A CLAIMS MADE BASIS, TO BE IN COMBINED SINGLE LIMIT AMOUNTS NOT LESS THAN TWO
MILLION DOLLARS ($2,000,000.00) AND TO HAVE GENERAL AGGREGATE LIMITS OF NOT LESS
THAN THREE MILLION DOLLARS
($3,000,000.00) FOR EACH POLICY YEAR.
THE INSURANCE
COVERAGE REQUIRED UNDER THIS PARAGRAPH 11 (A)(I) SHALL, IN ADDITION, EXTEND TO
ANY LIABILITY OF TENANT ARISING OUT OF THE INDEMNITIES PROVIDED FOR IN PARAGRAPH
14 AND, IF NECESSARY, THE POLICY SHALL CONTAIN A CONTRACTUAL ENDORSEMENT TO THAT
EFFECT.
(II)
INSURANCE ON THE "ALL-RISK" OR EQUIVALENT FORM ON A REPLACEMENT
COST BASIS AGAINST LOSS OR DAMAGE TO ALL IMPROVEMENTS MADE BY TENANT TO THE
PREMISES, EXCLUDING THE TENANT IMPROVEMENTS, AS DEFINED IN EXHIBIT "G", WHICH
SHALL BE COVERED UNDER LANDLORD'S POLICIES OF INSURANCE, (INCLUDING, WITHOUT IN
ANY MANNER LIMITING THE GENERALITY OF THE FOREGOING, FLOOD INSURANCE IF THE
PREMISES ARE LOCATED IN A FLOOD HAZARD AREA), HAVING A DEDUCTIBLE NOT GREATER
THAN FIFTY THOUSAND DOLLARS ($50,000.00); AND IN AN AMOUNT SUFFICIENT TO PREVENT
LANDLORD OR TENANT FROM BECOMING A CO-INSURER OF ANY LOSS, BUT IN ANY EVENT IN
AMOUNTS NOT LESS THAN 100% CT THE ACTUAL REPLACEMENT VALUE OF ALL IMPROVEMENTS
MADE BY TENANT TO THE PREMISES AS DESCRIBED IN THIS SUBPARAGRAPH.
LANDLORD
SHALL HAVE THE RIGHT TO REQUIRE FROM TENANT,