OUT OF TENANT'S OPERATIONS, AND
CONTRACTUAL LIABILITIES (COVERING THE PERFORMANCE BY TENANT OF ITS INDEMNITY
AGREEMENTS) INCLUDING A BROAD FORM ENDORSEMENT COVERING THE INSURING PROVISIONS
OF THIS LEASE AND THE PERFORMANCE BY TENANT OF THE INDEMNITY AGREEMENTS SET
FORTH IN SECTION 10.1 OF THIS LEASE, FOR LIMITS OF LIABILITY NOT LESS THAN:
Bodily Injury and
$5,000,000 each occurrence
Property Damage Liability
$5,000,000 annual aggregate
Personal Injury Liability
$5,000,000 each occurrence
$5,000,000 annual aggregate
0% Insured's participation
10.3.2
PHYSICAL DAMAGE INSURANCE COVERING (I) ALL OFFICE
FURNITURE, BUSINESS AND TRADE FIXTURES, OFFICE EQUIPMENT, FREE-STANDING CABINET
WORK, MOVABLE PARTITIONS, MERCHANDISE AND ALL OTHER ITEMS OF TENANT'S PROPERTY
ON THE PREMISES INSTALLED BY, FOR, OR AT THE EXPENSE OF TENANT, (II) THE "TENANT
IMPROVEMENTS," AS THAT TERM IS DEFINED IN SECTION 2.1 OF THE TENANT WORK LETTER,
AND ANY OTHER IMPROVEMENTS WHICH EXIST IN THE PREMISES AS OF THE LEASE
COMMENCEMENT DATE (EXCLUDING THE BASE BUILDING) (THE "ORIGINAL IMPROVEMENTS"),
AND (III) ALL OTHER IMPROVEMENTS, ALTERATIONS AND ADDITIONS TO THE PREMISES
INSTALLED BY OR FOR TENANT.
SUCH INSURANCE SHALL BE WRITTEN ON "SPECIAL CAUSES"
OF LOSS OR DAMAGE BASIS, FOR THE FULL REPLACEMENT COST VALUE (SUBJECT TO
REASONABLE DEDUCTIBLE AMOUNTS) NEW WITHOUT DEDUCTION FOR DEPRECIATION OF THE
COVERED ITEMS AND IN AMOUNTS THAT MEET ANY CO-INSURANCE CLAUSES OF THE POLICIES
OF INSURANCE AND SHALL INCLUDE COVERAGE FOR DAMAGE OR OTHER LOSS CAUSED BY FIRE
OR OTHER PERIL INCLUDING, BUT NOT LIMITED TO, VANDALISM AND MALICIOUS MISCHIEF,
THEFT, WATER DAMAGE OF ANY TYPE, INCLUDING SPRINKLER LEAKAGE, BURSTING OR
STOPPAGE OF PIPES, AND EXPLOSION, AND PROVIDING BUSINESS INTERRUPTION COVERAGE
FOR A PERIOD OF ONE YEAR.
10.3.3
WORKER'S COMPENSATION AND EMPLOYER'S LIABILITY OR OTHER
SIMILAR INSURANCE PURSUANT TO ALL APPLICABLE STATE AND LOCAL STATUTES AND
REGULATIONS.
10.4
FORM OF POLICIES.
THE MINIMUM LIMITS OF POLICIES
OF INSURANCE REQUIRED OF TENANT UNDER THIS LEASE SHALL IN NO EVENT LIMIT THE
LIABILITY OF TENANT UNDER THIS LEASE.
SUCH INSURANCE SHALL (I) NAME LANDLORD AS
AN ADDITIONAL INSURED,; (II) SPECIFICALLY COVER THE LIABILITY ASSUMED BY TENANT
UNDER THIS LEASE, INCLUDING, BUT NOT LIMITED TO, OBLIGATIONS UNDER SECTION 10.1
OF THIS LEASE; (III) BE ISSUED BY AN INSURANCE COMPANY HAVING A RATING OF NOT
LESS THAN A-VIII IN BEST'S INSURANCE GUIDE OR WHICH IS OTHERWISE ACCEPTABLE TO
LANDLORD AND LICENSED TO DO BUSINESS IN THE STATE OF CALIFORNIA; (IV) PROVIDE
THAT SAID INSURANCE SHALL NOT BE CANCELED UNLESS THIRTY (30) DAYS' (TEN (10)
DAYS IN THE EVENT OF NONPAYMENT OF PREMIUMS) PRIOR WRITTEN NOTICE SHALL HAVE
BEEN GIVEN TO LANDLORD.
TENANT SHALL DELIVER SAID CERTIFICATES OF POLICIES
REQUIRED HEREUNDER TO LANDLORD ON OR BEFORE THE LEASE COMMENCEMENT DATE AND AT
LEAST TEN (10) DAYS BEFORE THE EXPIRATION DATES THEREOF.
IF EITHER PARTY FAILS
TO CARRY THE AMOUNTS AND TYPES OF INSURANCE REQUIRED TO BE CARRIED BY IT
PURSUANT TO THIS LEASE, SUCH FAILURE SHALL BE DEEMED TO BE A COVENANT AND
AGREEMENT BY SUCH PARTY TO SELF-INSURE WITH RESPECT TO THE TYPE AND AMOUNT OF
INSURANCE WHICH SUCH PARTY SO FAILED TO