Circuit City 2005 Annual Report Download - page 77

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(e) In the event insurance premiums pertaining to the Demised Premises, the Building, or the Building
Common Area, whether paid by Landlord or Tenant, are increased over the least hazardous rate available due to the
nature of the use of the Demised Premises by Tenant, Tenant shall pay such additional amount as Additional Rent.
8. Insurance .
(a) Tenant covenants and agrees that from and after the Lease Commencement Date or any earlier date upon
which Tenant enters or occupies the Demised Premises or any portion thereof, Tenant will carry and maintain, at its
sole cost and expense, the following types of insurance, in the amounts specified and in the form hereinafter provided
for:
(i) Liability insurance in the Commercial General Liability form (including Broad Form Property
Damage and Contractual Liabilities or reasonable equivalent thereto) covering the Demised Premises and Tenant’s use
thereof against claims for bodily injury or death, property damage and product liability occurring upon, in or about the
Demised Premises, such insurance to be written on an occurrence basis (not a claims made basis), to be in combined
single limits amounts not less than $3,000,000.00 and to have general aggregate limits of not less than $10,000,000.00
for each policy year. The insurance coverage required under this Section 8(a)(i) shall, in addition, extend to any
liability of Tenant arising out of the indemnities provided for in Section 11 and, if necessary, the policy shall contain a
contractual endorsement to that effect.
(ii) Insurance covering (A) all of the items included in the leasehold improvements constructed in the
Demised Premises by or at the expense of Landlord (collectively, the “Improvements”), including but not limited to
demising walls and the heating, ventilating and air conditioning system and (B) Tenant’s trade fixtures, merchandise
and personal property from time to time in, on or upon the Demised Premises, in an amount not less than one hundred
percent (100%) of their full replacement value from time to time during the Term, providing protection against perils
included within the standard form of “Special Form”
fire and casualty insurance policy, together with insurance against
sprinkler damage, vandalism and malicious mischief. Any policy proceeds from such insurance relating to the
Improvements shall be used solely for the repair, construction and restoration or replacement of the Improvements
damaged or destroyed unless this Lease shall cease and terminate under the provisions of Section 20.
(b) All policies of the insurance provided for in Section 8(a) shall be issued in form reasonably acceptable to
Landlord by insurance companies with a rating of not less than “A,” and financial size of not less than Class XII, in the
most current available “Best’s Insurance Reports”, and licensed to do business in the state in which the Building is
located. Each and every such policy:
(i) shall name Landlord, Lender (as defined in Section 24), and any other party reasonably designated by
Landlord, as an additional insured. In addition, the coverage described in Section 8(a)(ii)(A) relating to the
Improvements shall also name Landlord as “loss payee”;
(ii) shall be delivered to Landlord, in the form of an insurance certificate acceptable to Landlord as
evidence of such policy, prior to the Lease Commencement Date and thereafter within thirty (30) days prior to the
expiration of each such policy, and, as often as any such policy shall expire or terminate. Renewal or additional policies
shall be procured and maintained by Tenant in like manner and to like extent;
(iii) shall contain a provision that the insurer will give to Landlord and such other parties in interest at
least thirty (30) days notice in writing in advance of any material change, cancellation, termination or lapse, or the
effective date of any reduction in the amounts of insurance; and
(iv) shall be written as a primary policy which does not contribute to and is not in excess of coverage
which Landlord may carry.
(c) In the event that Tenant shall fail to carry and maintain the insurance coverages set forth in this Section
8, Landlord may upon thirty (30) days notice to Tenant (unless such coverages will lapse in which event no such notice
shall be necessary) procure such policies of insurance and Tenant shall promptly reimburse Landlord therefor.
(d) Notwithstanding anything to the contrary contained in this Lease, Landlord and Tenant hereby waive