ASSUMED BY LANDLORD UNDER THIS LEASE),
CONTRACTUAL LIABILITIES, OR USE OF THE BUILDING, COMMON AREAS AND PARKING
FACILITIES.
SUCH INSURANCE SHALL ALSO PROVIDE FOR RENT CONTINUATION INSURANCE
EQUAL TO AT LEAST TWELVE (12) MONTHS' RENT.
SUCH COVERAGES MAY BE CARRIED UNDER
BLANKET INSURANCE POLICIES.
THE INSURERS PROVIDING SUCH INSURANCE SHALL BE
LICENSED TO DO BUSINESS IN THE STATE OF CALIFORNIA AND MEET THE CRITERIA SET
FORTH IN SECTION 10.3.4(III) BELOW, AND THE POLICIES OF INSURANCE WITH RESPECT
TO PROPERTY LOSS OR DAMAGE BY FIRE OR OTHER CASUALTY SHALL CONTAIN A WAIVER OF
SUBROGATION AS PROVIDED IN SECTION 10.4 BELOW.
10.2.1
LANDLORD HEREBY REPRESENTS TO TENANT THAT, AS OF THE DATE OF
EXECUTION OF THIS LEASE, LANDLORD CARRIES EARTHQUAKE INSURANCE FOR THE BUILDING
WITH A FIVE PERCENT (5%) DEDUCTIBLE, FOR THE FULL REPLACEMENT COST OF THE
BUILDING (THE "EARTHQUAKE COVERAGE").
IN THE EVENT THAT LANDLORD SHALL ELECT AT
ANY TIME AFTER THE DATE OF EXECUTION OF THIS LEASE NOT TO CARRY EARTHQUAKE
INSURANCE OR TO MATERIALLY CHANGE EITHER COMPONENT OF THE EARTHQUAKE COVERAGE
FROM THAT MAINTAINED AS OF THE DATE OF EXECUTION OF THIS LEASE (ANY OF WHICH
LANDLORD SHALL HAVE THE RIGHT TO DO IN LANDLORD'S SOLE AND ABSOLUTE DISCRETION),
THEN NOT LESS THAN SIXTY (60) DAYS PRIOR TO THE TERMINATION OF OR CHANGE IN
COVERAGE, LANDLORD SHALL DELIVER NOTICE THEREOF (THE "INSURANCE REDUCTION
NOTICE") TO TENANT, IN WHICH EVENT TENANT MAY, AT TENANT'S SOLE OPTION AND AT
TENANT'S SOLE COST AND EXPENSE, ELECT TO CARRY ITS OWN SUPPLEMENTAL EARTHQUAKE
INSURANCE (BUT THE SAME SHALL NOT AFFECT LANDLORD'S RIGHTS AND/OR OBLIGATION TO
CARRY ANY PARTICULAR INSURANCE PURSUANT TO THE TERMS OF THIS LEASE).
TO THE
EXTENT THAT LANDLORD SHALL DELIVER AN INSURANCE REDUCTION NOTICE AND SHALL
THEREAFTER ELECT TO MATERIALLY CHANGE EITHER COMPONENT OF THE EARTHQUAKE
COVERAGE FOR THE BUILDING, LANDLORD SHALL DELIVER NOTICE THEREOF TO TENANT.
10.2.2
TENANT SHALL, AT TENANT'S EXPENSE, COMPLY AS TO THE PREMISES WITH
ALL REASONABLE INSURANCE COMPANY REQUIREMENTS PERTAINING TO THE USE OF THE
PREMISES.
IF TENANT'S CONDUCT OR USE OF THE PREMISES CAUSES ANY INCREASE IN THE
PREMIUM FOR LANDLORD'S INSURANCE POLICIES, THEN TENANT SHALL REIMBURSE LANDLORD
FOR ANY SUCH INCREASE. TENANT, AT TENANT'S EXPENSE, SHALL COMPLY WITH ALL RULES,
ORDERS, REGULATIONS OR REQUIREMENTS OF THE AMERICAN INSURANCE ASSOCIATION
(FORMERLY THE NATIONAL BOARD OF FIRE UNDERWRITERS) AND WITH ANY SIMILAR BODY
WHERE APPLICABLE DUE TO TENANT'S ALTERATIONS OR USE OF THE PREMISES.
10.3
TENANT'S INSURANCE.
FROM AND AFTER THE DATE (THE "INSURANCE START
DATE") WHICH IS THE EARLIER OF (I) THE DATE TENANT ENTERS ANY PORTION OF THE
PREMISES TO COMMENCE OCCUPANCY THEREOF OR PERFORM ANY WORK UNDER THIS LEASE OR
INSTALL ANY OF TENANT'S PROPERTY THEREIN OR (II) THE LEASE
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COMMENCEMENT DATE, AND CONTINUING THEREAFTER THROUGHOUT THE LEASE TERM, TENANT
SHALL MAINTAIN THE FOLLOWING COVERAGES IN THE FOLLOWING AMOUNTS.
10.3.1
COMMERCIAL GENERAL LIABILITY INSURANCE COVERING THE INSURED AGAINST
CLAIMS OF BODILY INJURY, PERSONAL INJURY AND PROPERTY DAMAGE ARISING OUT OF
TENANT'S OPERATIONS, ASSUMED LIABILITIES OR USE OF THE PREMISES, INCLUDING