THE EVENT THAT TRIA IS NOT IN EFFECT IN SUBSTANTIALLY
THE SAME MANNER AS IN EFFECT AS OF THE EFFECTIVE DATE, AND LESSEE CANNOT AND
DOES NOT WISH TO OBTAIN COVERAGE WITH RESPECT TO TERRORIST ACTS AS PART OF THE
"ALL RISK" PROPERTY POLICY REQUIRED BY SECTION 12.1(A)(I), LESSEE SHALL BE
REQUIRED TO OBTAIN COVERAGE FOR TERRORISM (AS STAND ALONE COVERAGE, WHICH MAY BE
OBTAINED IN A BLANKET PROGRAM) IN AN AMOUNT EQUAL TO 100% OF THE "FULL
REPLACEMENT COST" OF THE PROPERTY; PROVIDED THAT SUCH COVERAGE IS AVAILABLE.
NOTWITHSTANDING THE FOREGOING, WITH RESPECT TO ANY SUCH COVERAGE FOR SUCH ACTS,
LESSEE SHALL NOT BE REQUIRED TO PAY ANY INSURANCE PREMIUMS SOLELY WITH RESPECT
TO SUCH TERRORISM COVERAGE IN EXCESS OF THE TERRORISM PREMIUM CAP (HEREINAFTER
DEFINED); PROVIDED THAT IF THE INSURANCE PREMIUMS PAYABLE WITH RESPECT TO SUCH
TERRORISM COVERAGE EXCEEDS THE TERRORISM PREMIUM CAP, LESSOR (ON REASONABLE
NOTICE TO LESSEE AND WITHOUT RESULTING IN DUPLICATIVE INSURANCE COSTS TO LESSEE)
MAY, AT ITS OPTION (1) PURCHASE A STAND-ALONE TERRORISM POLICY, WITH LESSEE
PAYING SUCH PORTION OF THE INSURANCE PREMIUMS WITH RESPECT THERETO EQUAL TO THE
TERRORISM PREMIUM CAP AND LESSOR PAYING SUCH PORTION OF THE INSURANCE PREMIUMS
IN EXCESS OF THE TERRORISM PREMIUM CAP OR (2) MODIFY THE DEDUCTIBLE AMOUNTS,
POLICY LIMITS AND OTHER REQUIRED POLICY TERMS TO REDUCE THE INSURANCE PREMIUMS
PAYABLE WITH RESPECT TO SUCH STAND-ALONE TERRORISM POLICY TO THE TERRORISM
PREMIUM CAP.
AS USED HEREIN, "TERRORISM PREMIUM CAP" MEANS AN AMOUNT EQUAL TO
THE COST OF A STAND-ALONE TERRORISM POLICY WITH RESPECT TO THE PROPERTY AS OF
THE FIRST RENEWAL PERIOD IN WHICH TRIA IS NOT IN EFFECT IN SUBSTANTIALLY THE
SAME MANNER AS IT IS IN EFFECT AS OF THE EFFECTIVE DATE, BUT IN NO EVENT MORE
THAN $300,000 PER ANNUM (ADJUSTED EACH SEPTEMBER 1 BY THE PERCENTAGE CHANGE IN
THE CONSUMER PRICE INDEX FROM SEPTEMBER, 2006).
LESSEE SHALL OBTAIN THE
COVERAGE REQUIRED UNDER THIS SUBSECTION 12.1(A)(II) FROM A CARRIER WHICH
OTHERWISE SATISFIES THE RATING CRITERIA SPECIFIED IN SECTION 12.2 OR IN THE
EVENT THAT SUCH COVERAGE IS NOT AVAILABLE FROM SUCH A CARRIER, LESSEE SHALL
OBTAIN SUCH COVERAGE FROM THE HIGHEST RATED INSURANCE COMPANY PROVIDING SUCH
COVERAGE TAKING INTO ACCOUNT THE TERRORISM PREMIUM CAP.
(B)
FLOOD INSURANCE IF ANY PART OF THE PROPERTY IS LOCATED IN AN AREA
NOW OR HEREAFTER DESIGNATED BY THE FEDERAL EMERGENCY MANAGEMENT AGENCY AS A ZONE
"A" & "V" SPECIAL HAZARD AREA.
SUCH POLICY SHALL BE IN AN AMOUNT AS SHALL BE
APPROVED BY LESSOR AND MORTGAGEE IN THEIR REASONABLE DISCRETION TAKING INTO
ACCOUNT THE APPLICABLE INSURANCE STANDARDS.
15
(C)
LIABILITY INSURANCE, INCLUDING (I) "COMMERCIAL GENERAL LIABILITY
INSURANCE", (II) "OWNED", "HIRED" AND "NON OWNED AUTO LIABILITY":, AND (III)
UMBRELLA LIABILITY COVERAGE FOR PERSONAL INJURY, BODILY INJURY, DEATH, ACCIDENT
AND PROPERTY DAMAGE, SUCH INSURANCE PROVIDING IN COMBINATION NO LESS THAN
$35,000,000 (ADJUSTED EVERY SEPTEMBER BY A PERCENTAGE EQUAL TO THE PERCENTAGE
CHANGE IN THE CONSUMER PRICE INDEX FROM SEPTEMBER, 2006) OF PRIMARY, EXCESS
AND/OR UMBRELLA LIABILITY INSURANCE FOR ANY AND