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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 fall 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 case may be, so
<br />long as the Insurance Is not Invalidated thereby.
<br />8.7 Indemnity. Except for Lessor's gross negligence or willful misconduct. Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and
<br />Its agents, Lessor's master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties,
<br />attorneys' and consultants' fees, expenses and/or liabilities arising out of, involving, or In connection with, a Breach of the Lease by Lessee and/or the use and/or
<br />occupancy of the Premises and/or Project by Lessee and/or by Lessee's employees, contractors or Invitees. If any action or proceeding Is brought against Lessor by
<br />reason of any of the foregoing matters. Lessee shall upon notice defend the same at Lessee's expense by counsel reasonably satisfactory to Lessor and Lessor shall
<br />cooperate with Lessee In such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.
<br />8.8 Exemption of Lessor and Its Agents from Liability. Notwithstanding the negligence or breach of this Lease by lessor or its agents, neither Lessor nor Its
<br />agents shall be liable under any circumstances for. (I) Injury or damage to the person or goods, wares, merchandise or other property of Lessee, Lessee's employees,
<br />contractors, invitees, customers, or any other person In or about the Premises, whether such damage or Injury Is caused by or results from fire, steam, electricity, gas,
<br />water or rain. Indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing,
<br />HVAC or lighting fixtures, or from any other cause, whether the said in|ury or damage results from conditions arising upon the Premises or upon other portions of the
<br />building of which the Premises are a part, or from other sources or places, (II) any damages arising from any act or neglect of any other tenant of Lessor or from the
<br />failure of Lessor or Its agents to enforce the provisions of any other lease in the Project, or (III) Injury to Lessee's business or for any loss of Income or profit therefrom.
<br />Instead, it is intended that Lessee's sole recourse In the event of such damages or Injury be to file a claim on the Insurance pollcy(les) that Lessee Is required to
<br />maintain pursuant to the provisions of paragraph 8.
<br />8.9 failure to Provide Insurance, lessee acknowledges that any failure on Its part to obuln or maintain the Insurance required herein will expose Lessor to
<br />risks and potentially cause Lessor to Incur costs not contemplated by this lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month
<br />or portion thereof that Lessee does not maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the
<br />existence of the required insurance after notice and resaonable opportunity to cure, Lessee shall pay to Lessor a fee
<br />of $500, the gate Bent shall be automatically Increased, without anyrequtrement-fef notice to Lea eo,by an ameunt equal la 10K of the then existing Base Bent
<br />or-8l00rwhicho*of Is greater. The parties agree that such fee-increase In 8aso Bent represents fair and reasonable compensation for the additional risk/costs that
<br />Lessor will Incur by reason of Lessee's failure to maintain the required insurance. Such Increase in Base Rent shall In no event constitute a waiver of Lessee's Default
<br />or Breach with respect to the failure to maintain such insurance, prevent the exerdse of any of the other rights and remedies granted hereunder, nor relieve Lessee of
<br />its obligation to maintain the insurance specified in this Lease.
<br />9. Damage or Destruction.
<br />9.1 Definitions.
<br />(a) "Premises Partial Damage" shall mean damage or destruction to the Improvementson the Premises, other than Lessee Owned Alterations and Utility
<br />Installations, which can reasonably be repaired In 6 months or less from the date of the damage or destruction, lessor shall notify Lessee in writing within 30 days
<br />from the date of the damage or destruction as to whether or not the damage Is Partial or Total.
<br />(b) "PremisesTotal Destruction’shall mean damage or destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and
<br />Trade Fixtures, which cannot reasonably be repaired In 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee In writing within 30
<br />days from the date of the damage or destruction as to whether or not the damage is Partial or Total.
<br />(c) "Insured Loss" shall mean damage or destruction to Improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and
<br />Trade Fixtures, which was caused by an event required to be covered by the Insurance descried in Paragraph 8.3(a), Irrespective of any deductible amounts or
<br />coverage limits Involved.
<br />(d) "Replacement Cost" shall mean the cost to repair or rebuild the Improvements owned by Lessor at the time of the occurrence to their condition
<br />existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, and without deduction
<br />for depreciation.
<br />(e) “Hazardous Substance Condition" shall mean the occurrence or discovery of a condition Involving the presence of, or a contamination by, a
<br />Hazardous Substance, in, on, or under the Premises which requires restoration.
<br />9.2 Partial Damage - Insured loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall at Lessor’s expense, repair such damage (but
<br />not Lessee's Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this lease shall continue In full force and effect;
<br />provided, however, that Lessee shall, at Lessor's election, make the repair of any damage or destruction the total cost to repair of which Is $10,000 or less, and, In such
<br />event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing. If the required
<br />Insurance was not In force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage In proceeds
<br />(except as to the deductible which Is Lessee's responsibility) as and when required to complete said repairs, in the event, however, such shortage was due to the fact
<br />that by reason of the unique nature of the improvements, full replacement cost Insurance coverage was not commercially reasonable and available. Lessor shall have
<br />no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover
<br />same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or
<br />adequate assurance thereof within said 10 day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease
<br />shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within 10 days thereafter
<br />to: (i) make such restoration and repair as Is commercially reasonable with Lessor paying any shortage In proceeds, In which case this Lease shall remain In full force
<br />and effect, or (II) have this Lease terminate 30 days thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such
<br />damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 93, notwithstanding that there may be some Insurance
<br />|e, but the net proceeds of any such Insurance shall be made available for the repairs if made by either Party.
<br />INITIALS
<br />© 2019 AIR CRE. All Rights Reserved.
<br />STN-27.30, Revised 11-25-2019
<br />INITIALS
<br />Last Edited: 2/25/20219:S3 AM
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