ALL CLAIMS, WITH REASONABLE
DEDUCTIBLES AND SELF INSURED RETENTIONS (IT BEING AGREED, WITHOUT LIMITATION,
THAT DEDUCTIBLES AND SELF INSURED RETENTIONS OF $1,500,000 PER OCCURRENCE
(ADJUSTED EACH SEPTEMBER 1 BY THE PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX
FROM SEPTEMBER, 2006) SHALL NOT BE DEEMED UNREASONABLE, PROVIDED THAT IF
LESSEE'S SENIOR, LONG-TERM UNSECURED DEBT IS LESS THAN "BB-" BY STANDARD &
POOR'S RATINGS GROUP, THEN SUCH DEDUCTIBLE SHALL NOT EXCEED 5 PERCENT OF THE
THEN ANNUAL BASE NET RENT).
THE POLICIES DESCRIBED IN THIS SUBSECTION SHALL
ALSO INCLUDE COVERAGE FOR ELEVATORS, ESCALATORS, INDEPENDENT CONTRACTORS,
"CONTRACTUAL LIABILITY" (COVERING, TO THE MAXIMUM EXTENT PERMITTED BY LAW,
LESSEE'S OBLIGATION TO INDEMNIFY LESSOR AND MORTGAGEE AS REQUIRED UNDER THIS
LEASE), "PRODUCTS" AND "COMPLETED OPERATIONS LIABILITY" COVERAGE.
(D)
RENTAL LOSS INSURANCE (I) WITH MORTGAGEE BEING NAMED AS "MORTGAGEE
LOSS PAYEE" AND LESSOR BEING NAMED AS LOSS PAYEE, AND (II) IN AN AMOUNT EQUAL TO
100% OF THE PROJECTED BASE NET RENT AND SUPPLEMENTAL RENT FOR A PERIOD OF NOT
LESS THAN EIGHTEEN (18) MONTHS.
THE AMOUNT OF SUCH INSURANCE SHALL BE INCREASED
FROM TIME TO TIME DURING THE TERM AND AS WHEN THE ESTIMATED OR ACTUAL RENTS
INCREASE.
(E)
COMPREHENSIVE BOILER AND MACHINERY INSURANCE (WITHOUT EXCLUSION
FOR EXPLOSION) COVERING LOSS OR DAMAGE TO THE IMPROVEMENTS AND ALL MECHANICAL
AND ELECTRICAL EQUIPMENT.
MINIMUM COVERAGE PER ACCIDENT MUST BE IN AN AMOUNT
EQUAL TO 100% OF THE FULL REPLACEMENT COST OF SUCH EQUIPMENT AND THE
IMPROVEMENTS HOUSING SUCH EQUIPMENT.
(F)
WORKERS COMPENSATION AND DISABILITY INSURANCE WITH RESPECT TO ANY
EMPLOYEES OF LESSEE, AS REQUIRED BY ANY LEGAL REQUIREMENT.
(G)
DURING ANY PERIOD OF REPAIR OR RESTORATION, BUILDERS "ALL-RISK"
INSURANCE ON THE SO CALLED COMPLETED VALUE BASIS IN AN AMOUNT EQUAL TO NOT LESS
THAN THE FULL INSURABLE VALUE OF THE PROPERTY, AGAINST SUCH RISKS, (INCLUDING
FIRE AND EXTENDED COVERAGE AND COLLAPSE OF THE IMPROVEMENTS TO AGREED LIMITS) AS
LESSOR MAY REQUEST.
(H)
SO LONG AS (I) NO EVENT OF DEFAULT EXISTS, AND (II) LESSEE
MAINTAINS A MINIMUM RATING, LESSEE MAY SELF-INSURE ALL OR ANY PORTION OF THE
COVERAGE REFERRED TO IN SECTION 12.1.
IF LESSEE ELECTS TO MAINTAIN A
SELF-INSURANCE PROGRAM, SUCH PROGRAM SHALL BE MAINTAINED BY LESSEE IN A PRUDENT
AND COMMERCIALLY REASONABLE MANNER.
16
SECTION 12.2.
POLICIES.
(A)
ALL POLICIES OF INSURANCE (THE "POLICIES") REQUIRED PURSUANT TO
SECTION 12.1 SHALL:
(I)
BE ISSUED BY COMPANIES WITH A CLAIMS PAYING ABILITY RATING OF "A"
BY FITCH OR "A" OR BETTER BY S&P (PROVIDED, HOWEVER, FOR MULTI-LAYERED POLICIES
IN LIEU OF AN "A" OR BETTER RATING BY S&P, (A) IF FOUR (4) OR LESS INSURANCE
COMPANIES ISSUE THE POLICIES, THEN AT LEAST 75% OF THE INSURANCE COVERAGE
REPRESENTED BY THE POLICIES MUST BE PROVIDED BY INSURANCE COMPANIES WITH A
CLAIMS PAYING ABILITY RATING OF "A" OR BETTER BY S&P (AND THE EQUIVALENT BY ANY
OTHER RATING AGENCY), WITH NO CARRIER BELOW "BBB" (AND THE EQUIVALENT BY ANY
OTHER RATING AGENCY) OR (B) IF FIVE (5) OR MORE INSURANCE COMPANIES ISSUE THE
POLICIES, THEN AT LEAST SIXTY PERCENT