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to Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of
<br />Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the removal of any storage tank Installed by or for Lessee.
<br />Lessee shall also remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous
<br />Substances which were deposited via underground migration from areas outside of the Premises) to the level specified In Applicable Requirements. Tirade Fixtures
<br />shall remain the property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier
<br />termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as Lessor may desire. The failure by Lessee to
<br />timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent ofLessor shall constitute a holdover under the provisions of
<br />Paragraph 26 below.
<br />8. Insurance; Indemnity.
<br />8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost attributable to liability Insurance
<br />carried by Lessor under Paragraph 8.2(b) In excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease
<br />term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within 10 days following receipt of an Invoice.
<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 $1,000,000
<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 asan "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 pollcyfies) 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 asdescrlbedln Paragraph 8.2(a), In addition to, and not In lieu of, the Insurance required to
<br />be maintained by Lessee. Lessee shall, tO the extent available, -not be named as an additional insured therein. The City Of Santa Ana,
<br />and its officers, employees, agent and representatives, shall to the extent no cost is incurred with
<br />respect thereto and to the extent reasonably available to Lessor shall be additional insureds with
<br />respect to any general liability or auto liability policy obtained by Lessor, by endorsement, and all
<br />such insurance policies shall be primary and non-contributory. Lessor shall send certificates of such
<br />insurance to Lessee to its Risk Management Division, 4th Floor, 20 Civic Center Plaza, Santa Ana
<br />92701.
<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 policy 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), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading,
<br />demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation
<br />provision In lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an Increase In the annual property Insurance coverage
<br />amount by a factor of not less than the adjusted U.S. Department of labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises
<br />are located. If such Insurance coverage has a deductible clause, the deductible amount shall not exceed $5,000 per occurrence, and lessee shall be liable for such
<br />deductible amount In the event of an Insured Loss.
<br />(b) Rental Value. The Insuring Party 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 lSOdays ("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; Worker's 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 forthe 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 insuranceln amountsaswlll reimburse Lessee fordirect 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 accessto 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 Subrogation1 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 Coverage. Lessor makes no representation that the llmltsor forms of coverage of insurance specified herein are
<br />adequate to cover Lessee's property, business operations or obligations under this Lease.
<br />B.5 Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a "General Policyholders Rating" of at least A-, Vll,
<br />asset forth In the most current Issue of "Best's Insurance Guide", or such other rating as may be required by a Lender, lessee shall not do or permit to 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 />INITIALS
<br />©2019 AIR CRE. All Rights Reserved.
<br />STN-27.30, Revised 11-25-2019
<br />INITIALS
<br />Last Edited: 2/25/20219:53 AM
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