Health Net 2009 Annual Report Download - page 395

noncontributing with any other insurance available to Landlord, but only as to losses arising out of the negligent acts or
omissions of Tenant. The foregoing notwithstanding, the self-insured retention amount under the insurance policies maintained
by Tenant pursuant to the provisions of this Lease shall be subject to Landlord’s prior written approval which shall not be
unreasonably withheld, conditioned or delayed; provided, however, that, so long as the Tenant under this Lease is Managed
Health Network, Inc. (“Named Tenant”) or a Successor to Named Tenant, Named Tenant’s policy of Commercial General
Liability Insurance may provide for a self-insured retention amount of not more than One Million Dollars ($1,000,000) in an
occurrence and Three Million Dollars ($3,000,000) in the aggregate.
(iii) Workers’ Compensation Insurance. Workers’ Compensation and Employer’s Liability Insurance (as required by the
laws of the State of California).
(iv) Boiler and Machinery Insurance. If Tenant installs any boiler, pressure object, machinery, fire suppression system,
supplemental air conditioning or other mechanical equipment within the Premises, Tenant shall also obtain and maintain at
Tenant’s expense, boiler and machinery insurance covering loss arising from the use of such equipment.
(b) Criteria for Tenant’s Policies. All such policies shall be written in a form satisfactory to Landlord and shall be taken out
with insurance companies qualified to issue insurance in the State of California and holding an A.M. Best’s Rating of “A-” and a
Financial Size Rating of “VII” or better, as set forth in the most current issue of Best’s Key Rating Guide. Such insurance shall
provide that it is primary insurance, and not contributory with any other insurance in force for or on behalf of Landlord. Prior to
the commencement of the Term, Tenant shall deliver to Landlord copies of certificates of insurance evidencing in a manner
binding on the insurance carrier the existence of the amounts and forms of coverage required above and, except for the Special
Form Policy, naming Landlord and any other person specified by Landlord, as an additional insured. No such policy shall be
cancelable, terminable or reducible in coverage except after the insurer endeavors to provide thirty (30) days (or, in the event of
nonpayment of premium, ten (10) days) prior written notice to Landlord. Tenant shall, within ten (10) days prior to the
expiration of such policies, furnish Landlord with renewals or “binders” thereof, or upon ten (10) days prior written notice to
Tenant, Landlord may order such insurance and charge the cost thereof to Tenant as additional rent, if Tenant fails to so notify
Landlord. If Landlord obtains any insurance that is the responsibility of Tenant under this Section 19, Landlord shall deliver to
Tenant a written statement setting forth the cost of any such insurance and showing in reasonable detail the manner in which it
has been computed.
(c) Landlord’s Insurance.
(i) Landlord shall maintain, or cause to be maintained, a policy of Commercial General Liability insurance with the
premiums thereon fully paid in advance, issued by and binding upon an insurance company of good financial standing, insuring
Landlord against any liability arising out of the lease, use, occupancy, or maintenance of the Project and all areas appurtenant
thereto (other than the Premises, unless Landlord elects to extend such coverage to the Premises). Such insurance shall be in the
amount of Two Million Dollars ($2,000,000) Combined Single Limit for injury to or death of one or more persons in an
occurrence and Four Million Dollars ($4,000,000) in the aggregate (some reasonable portion of which may be maintained
through an excess or umbrella policy, provided that any such excess or umbrella
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