Nautilus 2009 Annual Report Download - page 251

18.1.1 Commercial General Liability Insurance (or its equivalent) covering the insured against claims of bodily injury and
death, personal injury and property damage arising out of Tenant’s operations, assumed liabilities or use of the Premises, for limits of
liability not less than Two Million and No/100 Dollars ($2,000,000.00) combined single limit per occurrence and Five Million and No/100
Dollars ($5,000,000.00) combined single limit annual aggregate.
18.1.2 Property Insurance covering (a) Tenant’s Property, (b) any improvements and alterations made by Tenant or at Tenant’s
request. Such insurance shall be written on a “Causes of Loss – Special Form” basis (or its equivalent), for the full replacement cost (as
shall be approved by Landlord) without deduction for depreciation, and shall include coverage for vandalism, malicious mischief and
sprinkler leakage. The proceeds of such insurance shall be used for the repair or replacement of the property so insured. Upon termination
of this Lease following a casualty as set forth herein the proceeds under (a) shall be paid to Tenant and the proceeds under (b) in excess of
Tenant’
s unamortized cost associated therewith shall be paid to Landlord. Notwithstanding the foregoing, Landlord shall have the option at
any time, upon three (3) months’ notice to Tenant, to procure property insurance covering leasehold improvements on all the premises
throughout the Buildings, and thereafter the premium of such policy shall be an element of Premises Operating Costs.
18.1.3 Business Income and Extra Expense insurance (or its equivalent) in such amounts as will reimburse Tenant for direct or
indirect loss of earnings attributable to all perils commonly insured against by prudent tenants or attributable to prevention of access to the
Premises or to the Building as a result of such perils, for a period of not less than twelve (12) months.
18.1.4 Statutory worker’s compensation, together with employer’s liability coverage at limits of:
$500,000 Each Accident
$500,000 Each Employee by Disease
$500,000 Policy Limit by Disease
18.2 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. All liability insurance shall a) name Landlord, and, at Landlord’s request, any Mortgagee, each as an
additional insured, as their respective interests may appear; b)
specifically cover the liability assumed by Tenant under this Lease, including, but
not limited to, Tenant’s indemnity obligations under this Lease; c) be issued by an insurance company having a rating of not less than A- IX in
Best’s Insurance Guide or that is otherwise acceptable to Landlord and licensed to do business in the State; d) be primary insurance as to all
claims thereunder and provide that any insurance carried by Landlord shall be excess and non-contributing with any insurance requirement of
Tenant; e) provide that said insurance shall not be canceled, expire or coverage reduced unless thirty (30) days’ prior notice shall have been
given to Landlord; and f)
if Tenant has a tangible net worth of less than Ten Million and No/100 Dollars ($10,000,000.00), have a deductible not
greater than Five Thousand and No/100 Dollars ($5,000.00).
18.3 Evidence of Insurance . Tenant shall deliver a copy of each paid-up policy (authenticated by the insurer) or other evidence of
insurance reasonably satisfactory to Landlord, evidencing the existence and amount of each insurance policy required hereunder on or before the
Commencement Date and at least thirty (30) days before the expiration dates of the applicable policies. Landlord may, at any time and from time
to time, inspect or copy any insurance policies that this Lease requires Tenant to maintain. Tenant shall furnish Landlord with renewals or
“binders” of each policy at least ten (10) days prior to the expiration thereof. Tenant agrees that, if Tenant does not obtain and maintain such
insurance, Landlord may (but shall not be required to) after five (5) days’ notice to Tenant during which time Tenant does not supply Landlord
evidence of the required insurance, procure said insurance on Tenant’s behalf and charge Tenant the premiums therefor, payable upon demand.
Tenant shall have the right to provide the insurance required hereunder pursuant to blanket policies obtained by Tenant, provided such blanket
policies afford coverage as required by this Lease.
18.4 Additional Insurance Obligations . Landlord may require (a) that Tenant obtain additional types of insurance, including but not
limited to earthquake, sprinkler leakage by earthquake, environmental and terrorism insurance; to the extent such coverages are either
(i) standard for similar properties in the same geographic area as the Property and are available at commercially reasonable rates, or (ii) are
otherwise reasonably required by Landlord; and (b) from time to time, but not more frequently than once during the Term, increases in the policy
limits for all insurance to be carried by Tenant as set forth herein, in order to reflect standard limits for similar properties.
-
17
-