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defined as any increase in the actual cost of the insurance required under Paragraph 8.2(b), 8.3(a) and 8.3(b), over and above the Base Premium as hereinafter defined
<br />calculated on an annual basis. Insurance Cost Increase shall include but not be limited to increases resulting from the nature of Lessee'soccupancy, any actor
<br />omission of Lessee, requirements of the holder of mortgage or deed of trust covering the Premises, increased valuation of the Premises and/or a premium rate
<br />increase. The parties are encouraged to fill in the Base Premium in Paragraph 1.8 with a reasonable premium for the Required Insurance based on the Agreed Use of
<br />the Premises. B the parties fail to insert a dollar amount in Paragraph 1.8, then the Base Premium shall be the lowest annual premium reasonably obtainable for the
<br />Required Insurance as of the commencement of the Original Term for the Agreed Use of the Premises. In no event, however, shall Lessee be responsible for any
<br />portion of the increase in the premium cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence.
<br />(b) Lessee shall pay any such Insurance Cost Increase to Lessor within 30 days after receipt by Lessee of a copy of the premium statement or other
<br />reasonable evidence of the amount due. If the insurance policies maintained hereunder cover other property besides the Premises, Lessor shall also deliver to Lessee
<br />a statement of the amount of such Insurance Cost Increase attributable only to the Premises showing in reasonable detail the manner in which such amount was
<br />computed. Premiums for policy periods commencing prior to, or extending beyond the term of this Lease, shall be prorated to correspond to the term of this Lease.
<br />8.2 Liability Insurance.
<br />(a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting Lessee and Lessor as an
<br />additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of
<br />the Premises and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than 51,000,000
<br />per occurrence with an annual aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad
<br />as the Insurance Service Organization's "Additional Insured -Managers or Lessors of Premises" Endorsement. The policy shall not contain any intra-insured exclusions
<br />as between insured persons or organizations, but shall include coverage for liability assumed under this Lease as an "insured contract" for the performance of Lessee's
<br />indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation hereunder.
<br />Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance
<br />carried by Lessor, whose insurance shall be considered excess insurance only.
<br />(b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to
<br />be maintained by Lessee. Lessee shall not be named as an additional insured therein.
<br />8.3 Property Insurance - Building, Improvements and Rental Value.
<br />(a) Building and Improvements. The Insuring Party shall obtain and keep in force a polity or policies in the name of Lessor, with loss payable to Lessor,
<br />any ground -lessor, and to any Lender insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full insurable replacement cost of
<br />the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available
<br />insurable value thereof. Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee's personal property shall be insured by Lessee not by Lessor. If
<br />the coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood
<br />and/or earthquake unless required by a Lender or included in the Base Premium), including coverage for debris removal and the enforcement of any Applicable
<br />Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies
<br />shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the
<br />annual property insurance coverage amount by factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
<br />city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per urnence,
<br />and Lessee shall be liable for such deductible amount in the event of an Insured Loss.
<br />(b) Rental Value. The Insuring Parry shall obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender,
<br />insuring the loss of the full Rent for one year with an extended period of indemnity for an additional 180 days ("Rental Value insurance"). Said insurance shall contain
<br />an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable
<br />by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss.
<br />(c) Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the
<br />Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused by Lessee's acts, omissions, use or
<br />occupancy of the Premises.
<br />8.4 Lessee's Property; Business Interruption Insurance; Workers Compensation Insurance.
<br />(a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee's personal property, Trade Fixtures, and Lessee Owned
<br />Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds
<br />from any such insurance shall be used by lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.
<br />(b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or
<br />indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the
<br />Premises as a result of such perils.
<br />(c) Worker's Compensation Insurance. Lessee shall obtain and maintain Worker's Compensation Insurance in such amount as may be required by
<br />Applicable Requirements. Such policy shall include a'Waiver of Subrogation' endorsement. Lessee shall provide Lessor with a copy of such endorsement along with
<br />the certificate of insurance or copy of the policy required by paragraph 8.5.
<br />(d) No Representation of Adequate Co rage. Lessor makes no representation that the limits or forms of coverage of insurance specified herein are
<br />adequate to cover Lessee's property, business operations or obligations under this Lease.
<br />8.5 InsurancePolicies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, VII,
<br />as set forth in the most current issue of "Best's Insurance Guide", or such other rating as maybe required by a Lender. Lessee shall not door permitto be done
<br />anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or
<br />certificates with copies of the required endorsements evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject
<br />to modification except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of
<br />renewals or "insurance binders" evidencing renewal thereof, or Lessor may increase his liability insurance coverage and charge the cost thereof to Lessee, which
<br />amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease,
<br />whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure
<br />and maintain the same.
<br />8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire
<br />right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The
<br />effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have
<br />their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the use may be, so
<br />long as the insurance is not invalidated thereby.
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<br />INITIALS Last Edited: 3/18/2020 6:28 PM INITIALS
<br />® 2017 AIR CRE. All Rights Reserved. 25D-8 STG-27.20, Revised 11-01-2017
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