LANDLORD FAILS TO APPROVE OR DISAPPROVE TENANT'S PLANS AND SPECIFICATIONS
FOR SUCH AN ALTERATION OR ANY PART THEREOF WITHIN TWO (2) BUSINESS DAYS AFTER
RECEIPT OF SUCH REMINDER NOTICE, LANDLORD SHALL BE DEEMED TO HAVE APPROVED THE
REVISED PLANS AND SPECIFICATIONS OR SUCH PORTIONS THEREOF.
FOR THE AVOIDANCE OF
DOUBT, LANDLORD SHALL NOT UNREASONABLY WITHHOLD ITS APPROVAL OF PLANS AND
SPECIFICATIONS FOR ANY MATERIAL ALTERATION.
AS USED HEREIN, A "REMINDER NOTICE"
SHALL INCLUDE A CONSPICUOUS STATEMENT THAT LANDLORD'S FAILURE TO RESPOND WITHIN
THE SPECIFIED TIME SHALL RESULT IN LANDLORD BEING DEEMED TO HAVE APPROVED THE
ALTERATION IN QUESTION.
(B)
UPON THE COMPLETION OF THE ALTERATION IN ACCORDANCE WITH THE TERMS
OF THIS ARTICLE 10 TENANT SHALL SUBMIT TO LANDLORD (X) PROOF EVIDENCING THE
PAYMENT IN FULL FOR SAID ALTERATION, (Y) WRITTEN UNCONDITIONAL LIEN WAIVERS OF
MECHANICS' LIENS AND OTHER LIENS ON THE PROPERTY FROM ALL CONTRACTORS PERFORMING
SAID ALTERATION AND (Z) ALL OTHER SUBMISSIONS AS MAY BE, FROM TIME TO TIME
REASONABLY REQUIRED BY LANDLORD.
(C)
BEFORE COMMENCING THE CONSTRUCTION OF ANY ALTERATIONS, TENANT
SHALL PROCURE OR CAUSE TO BE PROCURED THE INSURANCE COVERAGE DESCRIBED BELOW AND
PROVIDE LANDLORD WITH CERTIFICATES OF SUCH INSURANCE IN FORM REASONABLY
SATISFACTORY TO LANDLORD.
ALL SUCH INSURANCE SHALL COMPLY WITH THE FOLLOWING
REQUIREMENTS OF THIS SECTION AND OF SECTION 14.2.
(I)
DURING THE COURSE OF CONSTRUCTION, TO THE EXTENT NOT COVERED BY
PROPERTY INSURANCE MAINTAINED BY LANDLORD OR TENANT PURSUANT TO ARTICLE 14,
24
COVERING ALL IMPROVEMENTS IN PLACE ON THE PREMISES, ALL MATERIALS AND EQUIPMENT
STORED AT THE SITE AND FURNISHED UNDER CONTRACT, AND ALL MATERIALS AND EQUIPMENT
THAT ARE IN THE PROCESS OF FABRICATION AT THE PREMISES OF ANY THIRD PARTY OR
THAT HAVE BEEN PLACED IN TRANSIT TO THE PREMISES WHEN SUCH FABRICATION OR
TRANSIT IS AT THE RISK OF, OR WHEN TITLE TO OR AN INSURABLE INTEREST IN SUCH
MATERIALS OR EQUIPMENT HAS PASSED TO, TENANT OR ITS CONSTRUCTION MANAGER,
CONTRACTORS OR SUBCONTRACTORS (EXCLUDING ANY CONTRACTORS', SUBCONTRACTORS' AND
CONSTRUCTION MANAGERS' TOOLS AND EQUIPMENT, AND PROPERTY OWNED BY THE EMPLOYEES
OF THE CONSTRUCTION MANAGER, ANY CONTRACTOR OR ANY SUBCONTRACTOR), SUCH
INSURANCE TO BE WRITTEN ON A COMPLETED VALUE BASIS IN AN AMOUNT NOT LESS THAN
THE FULL ESTIMATED REPLACEMENT VALUE OF ALTERATIONS.
(II)
COMMERCIAL GENERAL LIABILITY INSURANCE COVERING TENANT, LANDLORD
AND EACH CONSTRUCTION MANAGER, CONTRACTOR AND SUBCONTRACTOR ENGAGED IN ANY WORK
ON THE PREMISES.
(III)
WORKERS' COMPENSATION INSURANCE APPROVED BY THE STATE OF
CALIFORNIA, IN THE AMOUNTS AND COVERAGES REQUIRED UNDER WORKERS' COMPENSATION
LAWS APPLICABLE TO THE PREMISES, AND EMPLOYER'S LIABILITY INSURANCE WITH LIMITS
NOT LESS THAN ONE MILLION DOLLARS ($1,000,000) OR SUCH HIGHER AMOUNTS AS MAY BE
REQUIRED BY LAW.
(D)
ALL CONSTRUCTION AND OTHER WORK IN CONNECTION WITH ANY ALTERATIONS
SHALL BE DONE AT TENANT'S SOLE COST AND EXPENSE (EXCEPT AS PROVIDED IN
SECTION 10.3) AND IN A PRUDENT AND FIRST CLASS MANNER.
TENANT SHALL CONSTRUCT
THE ALTERATIONS IN ACCORDANCE WITH ALL LEGAL REQUIREMENTS, AND WITH PLANS AND
SPECIFICATIONS THAT ARE IN ACCORDANCE WITH THE PROVISIONS OF THIS