Common use of Insurance; Casualty Clause in Contracts

Insurance; Casualty. In addition to such title insurance as Borrower is required to maintain in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved by Lender, the following policies of insurance in form and substance satisfactory to Lender: (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorism.

Insurance; Casualty. In addition (a) The Borrower shall and shall cause each Subsidiary to maintain, with financially sound and reputable insurance companies or associations, insurance with the same policy limits, coverage provisions, deductibles, co-insurance limits, waiting periods, and other requirements as contained within the policies the Borrower maintained on the Closing Date, including, without limitation, public liability insurance, property insurance against loss or damage to its Property, and business interruption insurance; provided that Borrower and its Subsidiaries may make changes to the insurance that existed on the Closing Date that cause (i) reductions in policy limits, (ii) decreases in coverage provisions, (iii) increases in deductibles or co-insurance limits, (iv) increases in waiting periods, or (v) material changes to any other provision, so long as any such change remains consistent with coverage provisions, deductibles, co-insurance limits, waiting periods, and other provisions that a prudently operated chemical or refining company with a single plant location financed with secured debt would maintain, as determined by a nationally recognized insurance broker or consultant (which may be the Borrower's insurance broker or consultant). The Borrower shall cause the Collateral Agent to be named loss payee on all of its and its Subsidiaries' property and business interruption insurance policies and additional insured on all of its and its Subsidiaries' liability insurance policies. (b) Upon the occurrence of any damage or casualty to any Property of the Borrower or any Subsidiary, which could not reasonably be expected to give rise to a receipt by the Borrower, any Subsidiary, or the Collateral Agent of property Insurance Proceeds and proceeds from condemnation in excess of $50,000,000, the Borrower will and will cause such Subsidiary, as determined by the sound business judgment of the Borrower, to pursue diligently claims available to it under property or other applicable insurance policies (other than business interruption insurance policies) relating to such title insurance as Property and shall use the proceeds of such policies to (i) finance or refinance (through reimbursement of such Person's treasury or otherwise) in whole or in part the cost of repairing or replacing such Property promptly and in a good workmanlike manner, (ii) otherwise reinvest the proceeds in Property for any of the lubes, aromatics or refining businesses of the Borrower is required to maintain or, in the case of proceeds received in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved by LenderProperty of such Subsidiary, the following policies business of insurance in form and substance satisfactory to Lender:the Borrower or such Subsidiary, or (iii) prepay Term Loans. (i) At all times, any real property under construction at Upon the Property shall be covered by a policy occurrence of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT event with respect to any uninsured loss caused part of the Collateral which could reasonably be expected to give rise to a receipt by terrorismthe Borrower, any Subsidiary, or the Collateral Agent of property Insurance Proceeds and proceeds from condemnation in excess of $50,000,000, for which all necessary repairs and replacements to such affected Collateral affected by such event could reasonably be expected to be substantially completed within nine (9) months (or such longer period as reasonably may be required, not to exceed fifteen (15) months) following such event then, so long as no Event of Default shall have occurred and be continuing, Borrower or such Subsidiary shall diligently proceed within such time periods to effect the repair or restoration of such affected Collateral as may be reasonably necessary to continue or resume operating the Refinery in the ordinary course of business, and all property Insurance Proceeds and proceeds from condemnation received by the Borrower, such Subsidiary, or the Collateral Agent as a result of such event shall be applied, to the extent necessary, in payment for such repairs to and replacement of such affected Collateral or, to the extent the costs of such repairs and replacements shall have been paid by the Borrower or one of its Subsidiaries, to reimburse such Person. If such repairs and replacements could not reasonably be made within the time period required in the preceding sentence, then all property Insurance Proceeds or condemnation proceeds received in connection with such event shall be applied to repay the Secured Obligations in the order set forth in Section 8.

Insurance; Casualty. In addition to such title insurance as Borrower is required to maintain in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved by Lender, the following policies of insurance in form and substance satisfactory to Lender: (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. (iv) A policy of terrorism insurance in an amount acceptable to Lender. (v) A policy of environmental insurance in an amount acceptable to Lender. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorism.

Insurance; Casualty. In addition to such title insurance as Borrower is required to maintain in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved by Lender, the following policies of insurance in form and substance satisfactory to Lender: (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. (iv) A policy of terrorism insurance in an amount acceptable to Lender. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorism.

Insurance; Casualty. In addition (a) The Borrower shall and shall cause each Subsidiary Guarantor to maintain, with financially sound and reputable insurance companies or associations, insurance with the same policy limits, coverage provisions, deductibles, co-insurance limits, waiting periods, and other requirements as contained within the policies the Borrower maintained on the Closing Date, including, without limitation, public liability insurance, property insurance against loss or damage to its Property, and business interruption insurance; provided that Borrower and its Subsidiary Guarantors may make changes to the insurance that existed on the Closing Date that cause (i) reductions in policy limits, (ii) decreases in coverage provisions, (iii) increases in deductibles or co-insurance limits, (iv) increases in waiting periods, or (v) material changes to any other provision, so long as any such change remains consistent with coverage provisions, deductibles, co-insurance limits, waiting periods, and other provisions that a prudently operated chemical or refining company with a single plant location financed with secured debt would maintain, as determined by a nationally recognized insurance broker or consultant (which may be the Borrower’s insurance broker or consultant). The Borrower shall cause the Collateral Agent to be named loss payee on all of its and its Subsidiary Guarantors’ property and business interruption insurance policies and additional insured on all of its and its Subsidiary Guarantors’ liability insurance policies. (b) Upon the occurrence of any damage or casualty to any Property of the Borrower or any Subsidiary Guarantor, which could not reasonably be expected to give rise to a receipt by the Borrower, any Subsidiary Guarantor, or the Collateral Agent of property Insurance Proceeds and proceeds from condemnation in excess of $50,000,000, the Borrower will and will cause such Subsidiary Guarantor, as determined by the sound business judgment of the Borrower, to pursue diligently claims available to it under property or other applicable insurance policies (other than business interruption insurance policies) relating to such title insurance as Property and shall use the proceeds of such policies (other than proceeds of business interruption proceeds) to (i) finance or refinance (through reimbursement of such Person’s treasury or otherwise) in whole or in part the cost of repairing or replacing such Property promptly and in a good workmanlike manner, (ii) otherwise reinvest the proceeds in Property for any of the lubes, aromatics or refining businesses of the Borrower is required to maintain or, in the case of proceeds received in respect of the Property, Borrower shall maintain or cause to be maintained insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved by LenderProperty of such Subsidiary Guarantor, the following policies business of insurance the Borrower or such Subsidiary Guarantor, or (iii) prepay Term Loans in form and substance satisfactory to Lender:accordance with Section 3.02(b). (i) At all timesUpon the occurrence of an event with respect to any part of the Collateral which could reasonably be expected to give rise to a receipt by the Borrower, any real Subsidiary Guarantor, or the Collateral Agent of property under construction at Insurance Proceeds and proceeds from condemnation in excess of $50,000,000, for which all necessary repairs and replacements to such affected Collateral affected by such event could reasonably be expected to be substantially completed within nine (9) months (or such longer period as reasonably may be required, not to exceed fifteen (15) months) following such event then, so long as no Event of Default shall have occurred and be continuing, Borrower or such Subsidiary Guarantor shall diligently proceed within such time periods to effect the repair or restoration of such affected Collateral as may be reasonably necessary to continue or resume operating the Refinery in the ordinary course of business, and all property Insurance Proceeds and proceeds from condemnation received by the Borrower, such Subsidiary Guarantor, or the Collateral Agent as a result of such event shall be applied, to the extent necessary, in payment for such repairs to and replacement of such affected Collateral or, to the extent the costs of such repairs and replacements shall have been paid by the Borrower or one of its Subsidiary Guarantors, to reimburse such Person. If such repairs and replacements could not reasonably be made within the time period required in the preceding sentence, then all property Insurance Proceeds or condemnation proceeds received in connection with such event shall be applied to repay the Secured Obligations in accordance with Section 3.02(b). The following shall require written consent of the Required Lenders: (A) any waiver or extension of the time frames for repairs or replacements specified in this Section 7.04(c)(i) and (B) any waiver permitting the Borrower or any Subsidiary Guarantor to use any proceeds that are subject to this Section 7.04(c)(i) for reinvestment in Property for any of the lubes, aromatics or refining businesses of the Borrower, or in the case of proceeds received in respect of the Property shall be covered by a policy of commercial property insurancesuch Subsidiary Guarantor, which shall include, without limitation, the business of the Borrower or such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent)Subsidiary Guarantor. (ii) A policy If an event which gives rise to the receipt of flood insuranceInsurance Proceeds or condemnation proceeds by the Borrower, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policiesSubsidiary Guarantor, or other evidence the Collateral Agent causes an Event of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this AgreementDefault, or if terrorism insurance is not then availableInsurance Proceeds or condemnation proceeds are received during the existence and continuation of an Event of Default, then Borrower may electall Insurance Proceeds or condemnation proceeds received by the Borrower, any of its Subsidiary Guarantors, or the Collateral Agent shall be applied to repay the Secured Obligations in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorismthe order set forth in Section 8.03.

Insurance; Casualty. In addition to such title insurance as Borrower is required (a) Mortgagor shall use good faith efforts cause all tenants and subtenants to maintain in respect all insurance required pursuant to the terms of the Property, Borrower Leases and shall provide Lender with copies of all insurance certificates and other evidence of insurance received from tenants and subtenants. Lender acknowledges that the tenants and subtenants under the Leases listed in Schedules B-1 through B-4 are permitted to provide self-insurance and are so doing. Mortgagor shall maintain or cause to be maintained commercially reasonable insurance covering the Property, at Borrower’s sole expense, with licensed insurers approved determined by Lender, the following policies of Mortgagor. The insurance in form and substance identified on Schedule D is satisfactory to Lender: (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall may notify any and all insurers under casualty and liability insurance policies relating to the Mortgaged Property that Lender has a security interest pursuant to the provisions of this Mortgage in and to such insurance policies and any proceeds thereof, and that any payments under those insurance policies are to be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by made directly to Lender. (iiib) A policy Mortgagor shall promptly notify Lender in the event of commercial general liability insurance with limits as reasonably required by any casualty affecting the Mortgaged Property. Mortgagor shall not adjust, compromise or settle any claim for casualty Proceeds without the prior consent of Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance which shall not be cancelable unreasonably withheld, conditioned or materially adversely changed without ten delayed. So long as such casualty does not result in the reduction of the fixed rent that the tenant is obligated to pay under the applicable Lease, (10i) days’ prior written notice Mortgagor shall be entitled to Lendercollect, receive and retain any casualty proceeds and (ii) no portion thereof shall be applied to any of the Indebtedness. If, as a result of any casualty, any tenant reduces the fixed rent that it is paying under any Lease, Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect have the option, in its sole discretion, to all insurance policies apply and/or to require Mortgagor to apply any Proceeds that Borrower actually maintains with respect Mortgagor is not required to make available to the Property or tenants under the improvements thereon. Borrower shall provide terms of the Leases (less any cost to Lender evidence of terrorism coverage recovering and any other hazard insurance Lender may deem necessary at any time while paying out such Proceeds, including reasonable attorneys' fees, costs and expenses) (the "Available Casualty Proceeds") to the payment of the Indebtedness or to allow all or any a portion of Lender’s commitment remains such Available Casualty Proceeds to be used for the repair, restoration and rebuilding of the Mortgaged Property. In the event that any Available Casualty Proceeds are required by Lender to be used toward payment of the Indebtedness, no Make-Whole Amount (as defined in the Notes) shall be due or payable on such payment. In the event that any such Available Casualty Proceeds are made available or any portion to Mortgagor for repair and restoration of the Mortgaged Property, the parties shall establish a reasonable mechanism for Lender to provide oversight as to the distribution of such Available Casualty Proceeds. In the event that Lender does not require 100% of such Available Casualty Proceeds be applied either toward payment of the Indebtedness and/or toward repair, restoration and rebuilding of the Mortgaged Property, the provisions of Section 4.3 of the Loan remains outstanding, provided, however, if Lender requires terrorism coverage and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT with respect to any uninsured loss caused by terrorismAgreement shall govern.

Insurance; Casualty. In addition (a) The Borrower, at its sole cost and expense, will keep the Mortgaged Property insured during the entire term of this Deed of Trust for the mutual benefit of the Borrower, the Beneficiary and the Servicer against loss or damage by fire and against loss or damage by other risks embraced by coverage of the type known as "fire and extended coverage," in an amount sufficient to prevent the Borrower or the Beneficiary from becoming a co-insurer, but in any case in an amount not less than the then full replacement value of the Improvements and Equipment, covering physical loss or damage to such title Improvements and Equipment, without considering depreciation and exclusive of excavations and foundations. The policy of insurance as Borrower is required to maintain carried in respect accordance with this Section shall contain a "Replacement Cost Endorsement." (b) The Borrower, at its sole cost and expense, for the mutual benefit of the PropertyBorrower and the Beneficiary, Borrower shall also obtain and maintain or cause to be maintained insurance covering during the Property, at Borrower’s sole expense, with licensed insurers approved by Lender, entire term of this Deed of Trust the following policies of insurance in form and substance satisfactory to Lenderinsurance: (1) Flood insurance if any part of the Mortgaged Property is located in an area identified by the Secretary of Housing and Urban Development as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act of 1968 or the Flood Disaster Protection Act of 1973, or the National Flood Insurance Reform Act of 1994, as each may be amended (and any successor act thereto), in an amount at least equal to the value of the Mortgaged Property as reasonably determined by the Beneficiary from time to time or the maximum limit of coverage available with respect to the Improvements and Equipment under said Act, whichever is less. (2) Comprehensive public liability insurance with the coverages and in the amounts required under the Lease (as in effect on the date hereof). (3) Loss of income insurance with the coverages and in the amounts required under the Lease (as in effect on the date hereof). (4) Insurance against loss or damage (and loss of occupancy or use) from explosion or breakdown of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus and elevator and escalator equipment now or hereafter installed in the Improvements with the coverages and in the amounts required under the Lease (as in effect on the date hereof). (5) During the course of any construction or repair of Improvements on the Mortgaged Property, builder's completed value risk insurance against "all risks of physical loss," during such construction with a deductible not to exceed $10,000, in non-reporting form, covering the total value of work performed and equipment, supplies and materials furnished. (6) Worker's compensation and other statutory coverages, as applicable. (7) Such other insurance as may from time to time be reasonably required by the Beneficiary or the Servicer in order to protect the Beneficiary's interests, to the extent that such insurance is generally available on commercial reasonable terms and is generally required by institutional lenders on loans secured by similar properties. (c) All policies of insurance (the "Required Insurance Policies") required pursuant to this Section 5.18 (i) At all times, any real property under construction at the Property shall be covered issued by a policy an insurer that is then rated "A-" or better in claims-paying ability by the Rating Agency, if rated by the Rating Agency, or, if not rated by the Rating Agency, an equivalent rating from any other nationally recognized statistical rating organization or A. M. Best, or is otherwise acceptable to the Rating Agency, (ii) shall contain the standard New York (or local equivalent) non-contribution clause naming the Beneficiary as the person to which all payments over $100,000 made by such insurance company shall be paid, (iii) shall be maintained throughout the term of commercial property insurancethis Deed of Trust without cost to the Beneficiary, which (iv) shall includecontain such provisions as the Beneficiary or the Servicer deems reasonably necessary or desirable to protect the Beneficiary's interest including, without limitation, such endorsements providing that neither the Borrower, the Beneficiary nor any other party shall be a co-insurer under said Policies and that the Beneficiary shall receive at least thirty (30) days prior written notice of any modification or cancellation and (v) shall list the Beneficiary and the Servicer, where applicable, as Lender loss payees or additional insureds. Notwithstanding the foregoing, workers' compensation insurance may require, insuring Lender against damage be provided by any state approved and regulated employer's self-insurance fund and need not name the Beneficiary or the Servicer as additional insureds or loss payees. The Borrower shall deliver duplicate counterparts of each of the Required Insurance Policies to the Property and improvements thereonServicer. Not later than fifteen (15) days prior to the expiration date of each of the Required Insurance Policies, in an amount acceptable the Borrower will deliver to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent)Servicer satisfactory evidence of the renewal of each of the Required Insurance Policies. (iid) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that the insurance shall not be cancelable or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains The Required Insurance Policies with respect to the Mortgaged Property may, at the option of the Borrower, be effected by blanket or umbrella policies issued to the improvements thereon. Borrower and its affiliates (including, without limitation, the direct and indirect partners in the Borrower) covering the Mortgaged Properties and properties owned by such affiliates, provided that the policies otherwise comply with the provisions of this Deed of Trust and specifically allocate to the Mortgaged Property the coverages required hereby, without possibility of reduction or coinsurance by reason of, or damage to, another premises named therein, and if the insurance required by this Deed of Trust shall be effected by any such blanket or umbrella policies, the Borrower shall provide furnish to Lender evidence the Servicer copies of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion such policies in place of the Loan remains outstandingoriginals, and in addition, within thirty (30) days after the filing thereof with any insurance ratemaking body, copies of the schedule of all improvements affected by any such blanket or umbrella policy of insurance. (e) If the Mortgaged Property shall be damaged or destroyed, in whole or in part, by fire or other casualty, the Borrower shall give prompt written notice thereof to the Beneficiary and the Servicer prior to the making of any repairs thereto; provided, however, that if Lender requires terrorism coverage the loss or damage is $100,000 or less and no Event of Default shall have occurred and be continuing, the Borrower shall have no obligation to provide notice. Following the occurrence of fire or other casualty, the Borrower, regardless of whether insurance proceeds are payable under the Required Insurance Policies, shall proceed promptly with the repair, alteration, restoration, replacement or rebuilding of the same as near as possible to their value, utility, condition and character prior to such damage or destruction (the "Restoration"), provided that if the Borrower and the premiums for such coverage will Servicer determine that (i) the Mortgaged Property cannot be greater than three restored to substantially the same condition as existed before the casualty, or (3ii) times the cost of the premiums for such coverage on restoration cannot reasonably be expected to be completed within one year from the date of this Agreementcasualty, or if terrorism insurance is not then available, then the Borrower may electchoose, in lieu its sole discretion, not to proceed with Restoration but to prepay the Bonds in accordance with the Indenture in an amount equal to the lesser of obtaining (x) the Insurance Proceeds or (y) the Allocated Loan Amount, plus accrued interest through the related Accounting Date for the Special Payment Date on which such coverage from Prepayment is applied on the Bonds in accordance with the Loan Documents, in each case without payment of a third-party insurerYield Maintenance Premium. In that event, any excess of the Insurance Proceeds over the Allocated Loan Amount shall be deposited into the Central Account for application (or release to provide to Lender a satisfactory indemnity from KBS REIT the Borrower) in accordance with respect to any uninsured loss caused by terrorism.the

Insurance; Casualty. In a. Sublessee shall not do or suffer any act upon the Sublease Premises (and Master Lease Premises) or bring into or keep upon the Sublease Premises (and Master Lease Premises) any article which would affect the fire risk or increase the rate of fire insurance or any other insurance on the Building. Sublessee shall comply with the rules and requirements of all boards of fire underwriters, rating bureaus, bureaus of fire prevention and like bodies, and with requirements of all insurance companies having policies of any kind in effect covering the Building, including policies insuring against tort liability, and with the requirements of all companies which have at any time been requested to issue such policies. Should the rate of any type of insurance on the Building be increased by reason of any action or omission by Sublessee, Sublessor, in addition to all other remedies, may following five days written notice thereof to Sublessee, pay the amount of such title increase, and the amount so paid shall become due and payable on demand as additional rent. In no event shall any flammable materials, except for kinds and quantities customarily used for ordinary office occupancy, or any explosives whatsoever be taken into the Sublease Premises and the Building or retained therein. b. Sublessee shall carry and maintain, at its own expense, with insurance companies rated at least A-XII in Best’s Insurance Guide, which are authorized to do business in the state of Nevada and are acceptable to the Sublessor: (I) all risk insurance coverage subject to reasonable deductibles, as Borrower is required determined by Sublessor in its reasonable discretion, covering personal property, trade fixtures and improvements to maintain the Sublease Premises to cover the replacement costs thereof; (II) comprehensive general public liability and property damage coverage, covering contractual liability of Sublessee and personal injury insurance applicable to the Sublease Premises in respect minimum limits of liability of $2,000,000 combined single limit for bodily injury and comprehensive property damage liability; and (III) appropriate Workers’ Compensation and Employer’s Liability Insurance, with an insurance carrier licensed to do business in Nevada, covering all persons employed by Sublessee at the Subleased Premises and satisfying the Worker’s Compensation Act of the Property, Borrower shall maintain or cause local state. c. Insurance required to be maintained insurance covering by Sublessee pursuant to this Section of this Sublease shall name the PropertySublessor and Master Lessor as additional insured, at Borrower’s sole expense, with licensed insurers approved by Lender, and all of the following policies of insurance in form and substance satisfactory to Lender: (i) At all times, any real property under construction at the Property shall be covered by a policy of commercial property insurance, which shall include, without limitation, such endorsements as Lender may require, insuring Lender against damage to the Property and improvements thereon, in an amount acceptable to Lender. Lender shall be named on the policy under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent). (ii) A policy of flood insurance, as required by applicable governmental regulations or as deemed reasonably necessary by Lender. (iii) A policy of commercial general liability insurance with limits as reasonably required by Lender, insuring against liability for injury and/or death to any person and/or damages to property occurring on the Property and/or in the improvements thereon from any cause whatsoever. Borrower shall provide to Lender certificates evidencing all required insurance policies, or other evidence of insurance acceptable to Lender. All insurance policies shall provide that no cancellation or substantial alteration shall be effective until at least thirty (30) days after receipt by Sublessee of written notice thereof or expiry of this Sublease, whichever is sooner. d. Sublessor and Sublessee each hereby release the other, as well as the Master Lessor, from any and all liability or responsibility to the other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property caused by fire or any of the extended coverage casualties covered by the insurance maintained hereunder, even if such loss or damage shall not be cancelable have been caused by the fault or materially adversely changed without ten (10) days’ prior written notice to Lender. Lender shall be named under a Lender’s Loss Payable Endorsement (form # 438BFU or equivalent) with respect to all insurance policies that Borrower actually maintains with respect to the Property or the improvements thereon. Borrower shall provide to Lender evidence of terrorism coverage and any other hazard insurance Lender may deem necessary at any time while all or any portion of Lender’s commitment remains available or any portion negligence of the Loan remains outstandingother party, provided, however, if Lender requires terrorism coverage that this release shall be applicable and the premiums for such coverage will be greater than three (3) times the cost of the premiums for such coverage on the date of this Agreement, or if terrorism insurance is not then available, then Borrower may elect, in lieu of obtaining such coverage from a third-party insurer, to provide to Lender a satisfactory indemnity from KBS REIT force and effect only with respect to loss or damage occurring during such times as the releaser’s insurance policies shall contain a clause or endorsement to the effect that any uninsured loss caused release shall not adversely affect or impair said policies or prejudice the right of the releaser to recover thereunder. e. Sublessor covenants and agrees that Sublessor will maintain in force and effect at all times during the term of this Sublease insurance required of Sublessor under the terms of the Master Lease. Sublessee covenants and agrees that Sublessee will maintain in force at all times during the term of this Sublease insurance covering Sublessee’s improvements as required by terrorismthis section of the Sublease. Sublessor will not be required to reinsure Sublessee’s improvements. f. Sublessee shall deliver to Sublessor, prior to occupancy, and prior to the expiration or replacement, adequate certificates of insurance showing that insurance required by Sublease is in full force and effect and an endorsement showing the Sublessor and Master Lessor as additional insured as required by this section of the Sublease. g. If there is damage to the Sublease Premises by fire or other casualty, Sublessee shall promptly give notice to Sublessor, but in no event later than thirty (30) days after the casualty. If the damage is such that Sublessee reasonably believes that it would not be possible to conduct business in the Sublease Premises in a manner reasonably comparable to that conducted immediately before such damage, Sublessee may terminate this Sublease on thirty (30) days written notice, effective as of the day of the casualty.