INSURANCE IN SO
CALLED "SPECIAL FORM" OR "SPECIAL PERILS" FORM COVERING PHYSICAL LOSS OR
DAMAGE.
TENANT SHALL USE THE PROCEEDS FROM SUCH INSURANCE FOR THE RESTORATION
OF THE ALTERATIONS, ADDITIONS OR IMPROVEMENTS MADE BY OR FOR TENANT TO THE
PREMISES, INCLUDING, WITHOUT LIMITATION, THE TENANT IMPROVEMENTS.
IN ADDITION,
TENANT SHALL SECURE AND MAINTAIN, AT ALL TIMES DURING THE TERM, BUSINESS
INTERRUPTION AND EXTRA EXPENSE INSURANCE IN SUCH AMOUNTS AS WILL SUBSTANTIALLY
SUPPORT THE PAYMENT OF ANNUAL RENT UNDER THIS LEASE (NOT TO EXCEED
$2,500,000.00), TO THE EXTENT AN INTERRUPTION IS ATTRIBUTABLE TO ANY PERILS
COMMONLY INSURED AGAINST BY PRUDENT TENANTS OR ATTRIBUTABLE TO PREVENTION OF
ACCESS TO THE PREMISES OR TO THE BUILDING AS A RESULT OF SUCH PERILS; SUCH
INSURANCE SHALL BE MAINTAINED WITH TENANT'S PROPERTY INSURANCE CARRIER.
FURTHER, TENANT SHALL SECURE AND MAINTAIN AT ALL TIMES DURING THE TERM WORKERS'
COMPENSATION INSURANCE IN SUCH AMOUNTS AS ARE REQUIRED BY LAW, EMPLOYER'S
LIABILITY INSURANCE IN THE AMOUNT OF NOT LESS THAN ONE MILLION DOLLARS
($1,000,000.00) PER OCCURRENCE, AND ALL SUCH OTHER INSURANCE AS MAY BE REQUIRED
BY APPLICABLE LAW. TENANT SHALL PROVIDE LANDLORD WITH CERTIFICATES OF ALL SUCH
INSURANCE PRIOR TO THE COMMENCEMENT DATE.
THE PROPERTY INSURANCE CERTIFICATE
SHALL CONFIRM THAT THE WAIVER OF SUBROGATION REQUIRED TO BE OBTAINED PURSUANT TO
SECTION 11.5 IS PERMITTED BY THE INSURER.
TENANT SHALL, AT LEAST THIRTY (30)
DAYS PRIOR TO THE EXPIRATION OF ANY POLICY OF INSURANCE REQUIRED TO BE
MAINTAINED BY TENANT UNDER THIS LEASE, FURNISH LANDLORD WITH AN "INSURANCE
BINDER" OR OTHER SATISFACTORY EVIDENCE OF RENEWAL THEREOF.
(B)
IN THE EVENT TENANT MAKES ANY ALTERATIONS, ADDITIONS OR
IMPROVEMENTS TO THE PREMISES, PRIOR TO COMMENCING ANY WORK IN THE PREMISES,
TENANT SHALL SECURE "BUILDER'S ALL RISK" INSURANCE WHICH SHALL BE MAINTAINED
THROUGHOUT THE COURSE OF CONSTRUCTION.
SUCH POLICY SHALL BE AN ALL RISK
BUILDER'S RISK COMPLETED VALUE FORM, IN AN AMOUNT REASONABLY APPROVED BY
LANDLORD, IN ALL EVENTS NOT LESS THAN THE TOTAL CONTRACT PRICE FOR THE
CONSTRUCTION OF SUCH ALTERATIONS, ADDITIONS OR IMPROVEMENTS AND COVERING THE
CONSTRUCTION OF SUCH ALTERATIONS, ADDITIONS OR IMPROVEMENTS, AND SUCH OTHER
INSURANCE AS LANDLORD MAY REQUIRE, IT BEING UNDERSTOOD AND AGREED THAT ALL OF
SUCH ALTERATIONS, ADDITIONS OR IMPROVEMENTS SHALL BE INSURED BY TENANT PURSUANT
TO SECTION 11.2(A) IMMEDIATELY UPON COMPLETION THEREOF.
TENANT SHALL PROMPTLY
PROVIDE LANDLORD WITH A CERTIFICATE EVIDENCING SUCH INSURANCE COVERAGE.
(C)
ALL POLICIES REQUIRED TO BE CARRIED BY TENANT UNDER THIS LEASE
SHALL BE ISSUED BY AND BINDING UPON A REPUTABLE INSURANCE COMPANY OF GOOD
FINANCIAL STANDING LICENSED TO DO BUSINESS IN THE STATE OF CALIFORNIA WITH A
RATING OF AT LEAST A:VII, OR SUCH OTHER RATING AS MAY BE REQUIRED BY ANY HOLDER,
AS SET FORTH IN THE MOST CURRENT ISSUE OF "BEST'S INSURANCE REPORTS."
TENANT
SHALL NOT DO OR PERMIT ANYTHING TO BE DONE THAT WOULD INVALIDATE THE INSURANCE
POLICIES REFERRED TO IN THIS ARTICLE 11.
EVIDENCE OF INSURANCE PROVIDED TO
LANDLORD SHALL INCLUDE AN ENDORSEMENT SHOWING THAT LANDLORD, ITS REPRESENTATIVES
AND ANY HOLDERS OR GROUND LESSORS ON THE