Common use of Insurance; Casualty Clause in Contracts

Insurance; Casualty. 11.1 Landlord shall maintain, throughout the Term, policies of insurance covering damage to the Demised Premises, excluding Tenant's fixtures, or equipment, in the amount of the full replacement value thereof, providing protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, "all risk" and fire sprinkler leakage insurance. Landlord shall furnish Tenant, upon written demand therefor, a copy of such policies or a certificate evidencing such insurance. 11.2 Tenant will, at its own cost and expense, obtain and maintain during the Term hereof, a policy or policies of comprehensive general liability insurance, or its equivalent, with minimum limits of not less than Five Million Dollars ($5,000,000) for death or injury per occurrence and in the aggregate and Two Million Dollars ($2,000,000) for property damage per occurrence and in the aggregate. Such policy or policies shall be issued by companies having a Best's rating of not less than A, shall name Landlord as additional insured, shall require the insurer to give Landlord at least twenty (20) days' written notice of its intention to cancel or terminate the insurance policy or policies and shall cover the entire Demised Premises. 11.3 In case at any time during the Term a portion of the Demised Premises shall be damaged by fire or other casualty which materially interferes with the conduct of Tenant's business, then, at the option of Tenant, (a) the proceeds of any insurance shall be used by Tenant to repair the Demised Premises in accordance with the procedures set forth in Section 11.4 or (b) Tenant may terminate this Lease in which case the estate and interest of Tenant in the Demised Premises shall immediately terminate and Rent and additional rent hereunder shall be adjusted as of the date of such casualty. 11.4 In case at any time or times during the Term, the Demised Premises shall be damaged other than as described in Section 11.3 hereof, then the proceeds of any insurance maintained hereunder for the Demised Premises (and not for Tenant's property on or adjacent to the Demised Premises) shall be payable to a mutually acceptable escrow agent for the joint account of Landlord and Tenant, to be held by such escrow agent in trust, for the purpose of paying the cost of the repair or replacement of the Demised Premises, to such extent as may be necessary, and so far as sufficient for said purpose, and the same shall be paid over promptly by such escrow agent, without hindrance or delay, to Tenant, at such times as Tenant shall be obligated to make payments upon building contracts for such repairs and upon certificates of the architect, if any, in charge of such repairs, and in the absence of an architect, upon the furnishing of receipted bills for all materials and labor used, it being understood and agreed that, in the event of damage to any building or buildings or structure or structures upon the Demised Premises by fire or other casualty Tenant will proceed with all reasonable diligence to cause said building or buildings to be repaired in the manner herein provided, as soon as possible, to the condition such property was in immediately prior to such damage. Any balance of insurance in excess of the foregoing requirement shall be the property of Tenant and shall be promptly paid over to Tenant by such escrow agent.

Insurance; Casualty. 11.1 Landlord shall maintainThroughout the entire Term of this Lease, throughout the TermTenant will obtain and maintain in good standing, policies of at Tenant’s expense: (a) public liability insurance covering damage with respect to the Demised Premises, excluding Tenant's fixtures, or equipment, in and the amount of the full replacement value thereof, providing protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, "all risk" and fire sprinkler leakage insurance. Landlord shall furnish business operated by Tenant, upon with such insurance companies and in such form as are acceptable to Landlord with minimum limits with respect to bodily injury of One Million Dollars ($1,000,000.00) per person, and One Million Dollars ($1,000,000.00) per accident or occurrence, and Five Hundred Thousand Dollars ($500,000.00) with respect to property damage; (b) all workmen’s compensation or employer’s liability insurance as may be required by law. Tenant will have all liability policies endorsed to show Landlord as an additional insured with respect to all occurrences and no insurance provided under this Lease will be subject to cancellation or reduction of limits unless at least ten (10) days written demand therefor, notice is given to Landlord. Certificates of all policies evidencing the insurance required must be delivered to Landlord within five (5) business days of Tenant’s execution of this Lease. Tenant will furnish Landlord with a copy of such policies or a certificate evidencing such insurance. 11.2 Tenant will, at its own cost and expense, obtain and maintain during the Term hereof, a Tenant’s policy or policies of comprehensive general liability insuranceinsurance or certificates thereof, or within ten (10) days of Landlord’s request for same. If Tenant does not comply with the provision of this Section, Landlord may at its equivalentoption, with minimum limits of not less than Five Million Dollars ($5,000,000) for death or injury per occurrence cause insurance as aforesaid to be issued, and in such event, Tenant agrees to pay the aggregate and Two Million Dollars ($2,000,000) premium for property damage per occurrence and in the aggregate. Such policy or policies shall be issued by companies having a Best's rating of not less than A, shall name Landlord as additional insured, shall require the insurer to give Landlord at least twenty (20) days' written notice of its intention to cancel or terminate the insurance policy or policies and shall cover the entire Demised Premises. 11.3 In case at any time during the Term within five (5) business days of Tenant’s receipt of Landlord’s demand along with a portion fee of three percent (3%) of the Demised Premises annual premium for any such policy in order to reimburse Landlord for the administrative cost of coordinating and ensuring Tenant’s compliance with this provision, which such cost would otherwise be extremely difficult and impractical to determine with certainty. In no event shall Landlord be damaged liable for any loss occasioned by fire or other casualty which materially interferes with the conduct of Tenant's business, then, at the option to personal property or fixtures of Tenant, (a) the proceeds its agents, employees, assignees, sub lessees, bailers, licensees, invitees or of any insurance shall be used by Tenant to repair the Demised Premises in accordance with the procedures set forth in Section 11.4 other person, firm or (b) Tenant may terminate this Lease in which case the estate and interest of Tenant in the Demised Premises shall immediately terminate and Rent and additional rent hereunder shall be adjusted as corporation upon any part of the date of such casualty. 11.4 In case at Premises. Tenant’s insurance will provide primary coverage to Landlord when any time policy issued to Landlord provides duplicate or times during the Term, the Demised Premises shall be damaged other than as described in Section 11.3 hereof, then the proceeds of any insurance maintained hereunder for the Demised Premises (and not for Tenant's property on or adjacent to the Demised Premises) shall be payable to a mutually acceptable escrow agent for the joint account of Landlord and Tenant, to be held by such escrow agent in trust, for the purpose of paying the cost of the repair or replacement of the Demised Premises, to such extent as may be necessary, and so far as sufficient for said purpose, and the same shall be paid over promptly by such escrow agent, without hindrance or delay, to Tenant, at such times as Tenant shall be obligated to make payments upon building contracts for such repairs and upon certificates of the architect, if any, in charge of such repairs, and in the absence of an architect, upon the furnishing of receipted bills for all materials and labor used, similar coverage; it being understood and agreed that, in the event of damage to any building or buildings or structure or structures upon the Demised Premises by fire or other casualty Tenant will proceed with all reasonable diligence to cause said building or buildings to be repaired in the manner herein provided, as soon as possible, to the condition such property was in immediately prior to such damage. Any balance of insurance in excess intent of the foregoing requirement shall be the that in such circumstance Landlord’s policy will provide excess coverage over Tenant’s policy. Tenant is advised that Tenant’s personal property and fixtures are not covered under any of Tenant and shall be promptly paid over to Tenant by such escrow agent.Landlord’s property insurance policies

Insurance; Casualty. 11.1 Landlord (a) Mortgagor, at its sole cost and expense, shall maintain, throughout the Term, policies of insurance covering damage to the Demised Premises, excluding Tenant's fixtureskeep, or equipmentshall cause to be kept, in the amount Mortgaged Property insured during the term of this Mortgage for the full replacement value thereofmutual benefit of Mortgagor and Mortgagee against loss or damage by any peril covered by a standard "all risk of physical loss" insurance policy including, providing protection against all perils included within the classification of firewithout limitation, extended coverageriot and civil commotion, vandalism, malicious mischief, burglary and theft in an amount (i) equal to at least one hundred percent (100%) of the then "all riskfull replacement cost" of the Improvements and fire sprinkler leakage insuranceEquipment, without deduction for physical depreciation and (ii) such that the insurer would not deem Mortgagor a coinsurer under such policies. Landlord The policies of insurance carried in accordance with this PARAGRAPH 3 shall furnish Tenantbe paid annually in advance and shall contain the "Replacement Cost Endorsement", upon written demand therefor, and shall have a copy of such policies or a certificate evidencing such insurancedeductible no greater than $10,000 unless so agreed by Mortgagee. 11.2 Tenant will(b) Mortgagor, at its own sole cost and expense, for the mutual benefit of Mortgagor and Mortgagee, shall also obtain and maintain during the Term hereof, a policy or term of this Mortgage the following policies of comprehensive general insurance: (i) Flood insurance if any part of the Real 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 (and any successor act thereto) in an amount at least equal to the outstanding principal amount of the Note or the maximum limit of coverage available with respect to the Improvements and Equipment under said Act, whichever is less. (ii) Comprehensive public liability insurance, including broad form property damage, blanket contractual and personal injuries (including death resulting therefrom) coverages. (iii) Rental loss insurance in an amount equal to at least one hundred percent of the aggregate annual amount of all rents and additional rents payable by all of the tenants under the Leases (whether or its equivalent, with minimum limits of not less than Five Million Dollars ($5,000,000) for death or injury per occurrence and such Leases are terminable in the aggregate and Two Million Dollars event of a fire or casualty), such rental loss insurance to cover rental losses for a period of at least one ($2,000,0001) for property damage per occurrence and year after the date of the fire or casualty in the aggregatequestion. Such policy or policies The amount of such rental loss insurance shall be issued by companies having a Best's rating of not less than A, shall name Landlord as additional insured, shall require the insurer increased from time to give Landlord at least twenty (20) days' written notice of its intention to cancel or terminate the insurance policy or policies and shall cover the entire Demised Premises. 11.3 In case at any time during the Term a portion term of this Mortgage as and when new Leases and renewal Leases are entered into in accordance Loan No. 3212525 with the terms of this Mortgage, to reflect all increased rent and increased additional rent payable by all of the Demised Premises shall be damaged by fire or other casualty which materially interferes with the conduct of Tenant's business, then, at the option of Tenant, (a) the proceeds of any insurance shall be used by Tenant to repair the Demised Premises in accordance with the procedures set forth in Section 11.4 or (b) Tenant may terminate this Lease in which case the estate tenants under such renewal Leases and interest of Tenant in the Demised Premises shall immediately terminate and Rent all rent and additional rent hereunder shall be adjusted as payable by all of the date of tenants under such casualtynew Leases. 11.4 In case at any time (iv) Insurance against loss or times during damage from explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in the TermImprovements. (v) Such other insurance (including, the Demised Premises shall be damaged other than as described in Section 11.3 hereofwithout limitation, then the proceeds of any insurance maintained hereunder for the Demised Premises (and not for Tenant's property on or adjacent to the Demised Premisesearthquake insurance) shall be payable to a mutually acceptable escrow agent for the joint account of Landlord and Tenant, to be held by such escrow agent in trust, for the purpose of paying the cost of the repair or replacement of the Demised Premises, to such extent as may from time to time be necessary, and so far as sufficient for said purpose, and the same shall be paid over promptly reasonably required by such escrow agent, without hindrance or delay, Mortgagee in order to Tenant, at such times as Tenant shall be obligated to make payments upon building contracts for such repairs and upon certificates of the architect, if any, in charge of such repairs, and in the absence of an architect, upon the furnishing of receipted bills for all materials and labor used, it being understood and agreed thatprotect its interests or, in the event of damage a Secondary Market Transaction, as required by the Rating Agencies (as such terms are hereinafter defined). (c) All policies of insurance (the "POLICIES") required pursuant to this PARAGRAPH 3 (i) shall be issued by an insurer satisfactory to Mortgagee (and, in the event of a Secondary Market Transaction, to the Rating Agencies), (ii) shall contain the standard New York Mortgagee non-contribution clause naming Mortgagee as the person to which all payments made by such insurance company shall be paid, (iii) shall be maintained throughout the term of this Mortgage without cost to Mortgagee, (iv) shall be delivered to Mortgagee, (v) shall contain such provisions as Mortgagee deems reasonably necessary or desirable to protect its interest including, without limitation, endorsements providing that neither Mortgagor, Mortgagee nor any building other party shall be a co-insurer under such Policies and that Mortgagee shall receive at least thirty (30) days prior written notice of any modification or buildings cancellation and (vi) shall be satisfactory in form and substance to Mortgagee (and, in the event of a Secondary Market Transaction, to the Rating Agencies) and shall be approved by Mortgagee (and, in the event of a Secondary Market Transaction, by the Rating Agencies) as to amounts, form, risk coverage, deductibles, loss payees and insureds. Not later than thirty (30) days prior to the expiration date of each of the Policies, Mortgagor will deliver to Mortgagee satisfactory evidence of the renewal of each of the Policies. (d) If the Improvements shall be damaged or structure destroyed, in whole or structures upon the Demised Premises in part, by fire or other casualty Tenant will casualty, Mortgagor shall give prompt notice thereof to Mortgagee and prior to the making of any repairs thereto. Following the occurrence of fire or other casualty, Mortgagor, regardless of whether insurance proceeds are payable under the Policies or, if paid, are made available to Mortgagor by Mortgagee, shall promptly proceed with the repair, alteration, restoration, replacement or rebuilding of the Improvements as near as possible to their value, utility, condition and character prior to such damage or destruction. Such repairs, alterations, restoration, replacement and rebuilding are herein collectively referred to as the "RESTORATION". The Restoration shall be performed in accordance with the following provisions: (i) Mortgagor shall procure, pay for and furnish to Mortgagee true copies of all reasonable diligence required governmental permits, certificates and approvals with respect to the Restoration. Loan No. 3212525 (ii) Mortgagor shall furnish Mortgagee, within thirty (30) days of the casualty, evidence reasonably satisfactory to Mortgagee of the cost to complete the Restoration. (iii) If the Restoration involves structural work or the estimated cost to complete the Restoration exceeds $600,000, the Restoration shall be conducted under the supervision of an architect (the "ARCHITECT") selected by Mortgagor and approved by Mortgagee (which approval shall not be unreasonably withheld), and no such Restoration shall be made except in accordance with detailed plans and specifications, detailed cost estimates and detailed work schedules approved by Mortgagee (which approval shall not be unreasonably withheld). (iv) If the estimated cost of the Restoration shall exceed $1,200,000 in the aggregate, at the request of Mortgagee, Mortgagor, before commencing any work, shall cause said building or buildings to be repaired furnished to Mortgagee a surety bond or bonds, in form and substance reasonably satisfactory to Mortgagee, naming Mortgagor and Mortgagee as co-obligees, in an amount that is not less than the estimated cost of the Restoration, issued by a surety company or companies reasonably satisfactory to Mortgagee. (v) The Restoration shall be prosecuted to completion with all due diligence and in an expeditious and first class workmanlike manner and in compliance with all laws and other governmental requirements, all permits, certificates and approvals, all requirements or fire underwriters and all insurance policies then in force with respect to the Real Property. (vi) At all times when any work is in progress, Mortgagor shall maintain all insurance then required by law or customary with respect to such work, and, prior to the commencement of any work, shall furnish to Mortgagee duplicate originals or certificates of the policies therefor. (vii) Upon completion of the Restoration, Mortgagor shall obtain (A) any occupancy permit which may be required for the Improvements and (B) all other governmental permits, certificates and approvals and all permits, certificates and approvals of fire underwriters which are required for or with respect to the Restoration, and shall furnish true copies thereof to Mortgagee. (viii) An Event of Default (as hereinafter defined) shall be deemed to have occurred under this Mortgage if Mortgagor, after having commenced demolition or construction of any Improvements, shall abandon such demolition or the construction work or shall fail to complete such demolition and construction within a reasonable time after the commencement thereof. Loan No. 3212525 (e) Mortgagor and Mortgagee shall jointly adjust and settle all insurance claims, PROVIDED, HOWEVER, if an Event of Default shall have occurred and be continuing, Mortgagee shall have the right to adjust and settle such claims without the prior consent of Mortgagor. In the event of any insured loss, the payment for such loss shall be made directly to Mortgagee. Mortgagee shall have the option in its sole discretion to apply any insurance proceeds payable under any of the Policies to the payment of the Indebtedness or to allow all or a portion of such proceeds to be used for the Restoration. Notwithstanding the foregoing, provided (i) no Event of Default or event that with the passage of time or giving of notice or both would constitute a default has occurred hereunder, under the Note or under any of the other Loan Documents and remains uncured at the time of such application, (ii) the insurer does not deny liability to any named insured, (iii) each major and/or anchor tenant (as determined by Mortgagee) whose Lease permits termination thereof as a result of such insured loss, agrees in writing to continue its Lease, (iv) rental loss insurance is available and in force and effect to offset in full any abatement of rent to which any tenant may be entitled as a result of such damage, destruction or loss, (v) the remaining Improvements continue at all times to comply with all applicable building, zoning and other land use laws and regulations, (vi) in Mortgagee's judgment, the Restoration is practicable and can be completed within one (1) year after the damage, destruction or loss and at least one (1) year prior to the Maturity Date (as such term is defined in the Note) and (vii) rebuilding of the Improvements to substantially identical size, condition and use as existed prior to the casualty is permitted by all applicable laws and ordinances, then all of such proceeds shall be used for Restoration. Any application of insurance proceeds to the Indebtedness shall be to the unpaid installments of principal due under the Note in the inverse order of their maturity, such that the regular payments under the Note shall not be reduced or altered in any manner. In the event the above criteria are satisfied (including that no Event of Default or event that, with the passage of time or giving of notice or both, would constitute a default has occurred hereunder, under the Note or other Loan Documents) or Mortgagee otherwise elects to allow the use of such proceeds for the Restoration, such proceeds shall be disbursed in accordance with the following provisions: (i) Each request for an advance of insurance proceeds shall be made on seven (7) days' prior notice to Mortgagee and shall be accompanied by a certificate of the Architect, if one be required under PARAGRAPH 3(d)(III) above, otherwise by an executive officer or managing general partner or managing member of Mortgagor, stating (A) that all work completed to date has been performed in compliance with the approved plans and specifications and in accordance with all provisions of law, (B) the sum requested is properly required to reimburse Mortgagor for payments by Mortgagor to, or is properly due to, the contractor, subcontractors, materialmen, laborers, engineers, architects or other persons rendering services or materials for the Restoration (giving a brief description of such services and materials), and that when added to all sums, if any, previously disbursed by Mortgagee, does not exceed the value of the work done to the date of such certificate and (C) that the amount of such proceeds remaining in the hands of Mortgagee will be sufficient on completion of the Loan No. 3212525 work to pay the same in full (giving, in such reasonable detail as Mortgagee may require, an estimate of the cost of such completion). (ii) Each request for an advance of insurance proceeds shall, to the extent permitted under applicable law, be accompanied by waivers of liens satisfactory to Mortgagee covering that part of the Restoration previously paid for, if any, and by a search prepared by a title company or by other evidence reasonably satisfactory to Mortgagee including without limitation a title endorsement satisfactory to Mortgagee if available in the state where the Real Property is located, that there has not been filed with respect to the Real Property any mechanic's lien or other lien or instrument and that there exist no encumbrances on or affecting the Real Property other than the Permitted Encumbrances or otherwise approved by Mortgagee. In addition to the foregoing, the request for the final advance shall be accompanied by (A) any final occupancy permit which may be required for the Improvements, (B) all other governmental permits, certificates and approvals and all other permits necessary for the occupancy and operation of the Real Property, (C) Tenant estoppels from tenants whose space was affected and (D) final lien waivers from all contractors, subcontractors and materialmen. (iii) No advance of insurance proceeds shall be made if there exists an Event of Default or event which with the passage of time or the giving of notice or both would constitute a default on the part of Mortgagor under this Mortgage, the Note or any other Loan Document. (iv) If the cost of the Restoration (as reasonably estimated by Mortgagee) at any time shall exceed the amount of the insurance proceeds available therefor, insurance proceeds shall not be advanced until Mortgagor, before commencing the Restoration or continuing the Restoration, as the case may be, shall deposit the full amount of the deficiency (or other assurances reasonably satisfactory to Mortgagee) with Mortgagee and the amount so deposited shall first be applied toward the cost of the Restoration before any portion of the insurance proceeds is disbursed for such purpose. Upon completion of the Restoration and payment in full therefor, or upon failure on the part of Mortgagor promptly to commence or diligently to continue the Restoration, or at any time upon request by Mortgagor, Mortgagee may apply the amount of any such proceeds then or thereafter in the hands of Mortgagee to the payment of the Indebtedness; PROVIDED, HOWEVER, that nothing herein contained shall prevent Mortgagee from applying at any time the whole or any part of such proceeds to the curing of any default that has not been cured within the applicable cure period under this Mortgage, the Note or any other Loan Document. (f) Insurance proceeds and any additional funds deposited by Mortgagor with Mortgagee shall constitute additional security for the Indebtedness. Mortgagor shall execute, Loan No. 3212525 deliver, file and/or record, at its expense, such documents and instruments as Mortgagee deems necessary or advisable to grant to Mortgagee a perfected, first priority security interest in the insurance proceeds and such additional funds. If the insurance proceeds are applied to Restoration, (i) the insurance proceeds shall be, at Mortgagee's election, disbursed in installments by Mortgagee or by a disbursing agent ("DEPOSITORY") selected by Mortgagee and whose fees and expenses shall be paid by Mortgagor in the manner herein provided, provided in PARAGRAPH 3(e) above and (ii) Mortgagee shall be entitled to receive a fee in the amount of one percent (1%) of the insurance proceeds as soon as possible, to compensation for administering the condition such property was in immediately prior to such damage. Any balance use of insurance proceeds, such fee to be in excess of addition to fees paid the foregoing requirement shall be the property of Tenant and shall be promptly paid over to Tenant by such escrow agentDepository.

Insurance; Casualty. 11.1 Landlord (a) Trustor, at its sole cost and expense, shall maintainkeep the Folsom Trust Property insured during the term of this Deed of Trust for the mutual benefit of each Trustor, throughout the TermTrustee and Beneficiary against loss or damage by any peril covered by a standard "special perils" or "all risk of physical loss" insurance policy including, policies without limitation, riot and civil commotion, acts of insurance covering damage to the Demised Premises, excluding Tenant's fixtures, or equipment, in the amount of the full replacement value thereof, providing protection against all perils included within the classification of fire, extended coverageterrorism, vandalism, malicious mischief, burglary, theft and mysterious disappearance in an amount (i) equal to at least one hundred percent (100%) of the then "all riskfull replacement cost" of the Improvements and fire sprinkler leakage insuranceEquipment, without deduction for physical depreciation and (ii) such that the insurer would not deem Trustor a coinsurer under such policies. Landlord The policies of insurance carried in accordance with this Paragraph 3 shall furnish Tenantbe paid annually in advance and shall contain the "Replacement Cost Endorsement" with a waiver of depreciation, upon written demand therefor, and shall have a copy of such policies or a certificate evidencing such insurancedeductible no greater than $10,000 unless so agreed by Beneficiary. 11.2 Tenant will(b) Trustor, at its own sole cost and expense, for the mutual benefit of each Trustor, Trustee and Beneficiary, shall also obtain and maintain during the Term hereof, a policy or term of this Deed of Trust the following policies of comprehensive general insurance: (i) Flood insurance if any part of the Real 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 (and any successor act thereto) in an amount at least equal to the outstanding principal amount of the Folsom Note or the maximum limit of coverage available with respect to the Improvements and Equipment under said Act, whichever is less. (ii) Comprehensive public liability insurance, including broad form property damage, blanket contractual and personal injuries (including death resulting therefrom) coverages. (iii) Rental loss insurance in an amount equal to at least one hundred percent (100%)of the aggregate annual amount of all rents and additional rents payable by all of the tenants under the Leases (whether or its equivalent, with minimum limits of not less than Five Million Dollars ($5,000,000) for death or injury per occurrence and such Leases are terminable in the aggregate and Two Million Dollars event of a fire or casualty), such rental loss insurance to cover rental losses for a period of at least one ($2,000,0001) for property damage per occurrence and year after the date of the fire or casualty in the aggregatequestion. Such policy or policies The amount of such rental loss insurance shall be issued by companies having a Best's rating of not less than A, shall name Landlord as additional insured, shall require the insurer increased from time to give Landlord at least twenty (20) days' written notice of its intention to cancel or terminate the insurance policy or policies and shall cover the entire Demised Premises. 11.3 In case at any time during the Term a portion term of the Demised Premises shall be damaged by fire or other casualty which materially interferes with the conduct this Deed of Tenant's business, then, at the option of Tenant, (a) the proceeds of any insurance shall be used by Tenant to repair the Demised Premises Trust as and when new Leases and renewal Leases are entered into in accordance with the procedures set forth in Section 11.4 or (b) Tenant may terminate terms of this Lease in which case Deed of Trust, to reflect all increased rent and increased additional rent payable by all of the estate tenants under such renewal Leases and interest of Tenant in the Demised Premises shall immediately terminate and Rent all rent and additional rent hereunder shall be adjusted as payable by all of the date of tenants under such casualtynew Leases. 11.4 In case at any time (iv) Insurance against loss or times during damage from explosion of steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or similar apparatus now or hereafter installed in the Term, the Demised Premises shall be damaged Improvements. (v) Such other than as described in Section 11.3 hereof, then the proceeds of any insurance maintained hereunder for the Demised Premises (and not for Tenant's property on or adjacent to the Demised Premises) shall be payable to a mutually acceptable escrow agent for the joint account of Landlord and Tenant, to be held by such escrow agent in trust, for the purpose of paying the cost of the repair or replacement of the Demised Premises, to such extent as may be necessary, and so far as sufficient for said purpose, and the same shall be paid over promptly by such escrow agentincluding, without hindrance or delaylimitation, earthquake insurance)as may from time to Tenant, at such times as Tenant shall time be obligated reasonably required by Beneficiary in order to make payments upon building contracts for such repairs and upon certificates of the architect, if any, in charge of such repairs, and in the absence of an architect, upon the furnishing of receipted bills for all materials and labor used, it being understood and agreed thatprotect its interests or, in the event of a Secondary Market Transaction (as hereinafter defined), as required by the Rating Agencies (as such terms are hereinafter defined) provided, however, that (a) earthquake insurance coverage shall only be required if such insurance is available at a Commercially Reasonable Cost (hereinafter defined), and (b) in any event, the requirement for earthquake insurance coverage shall be suspended if, and for so long as, the following conditions are satisfied: (1) there are no defaults under the Loan Documents, (2) the Seismic Risk Assessment report has been reviewed and approved by Beneficiary, (3) the Probable Maximum Loss ("PML") of the Real Property on a 475-year recurrence interval and 90th percentile damage to any building or buildings or structure or structures upon the Demised Premises by fire or other casualty Tenant will proceed with all reasonable diligence to cause said building or buildings to be repaired estimate is less than 20%, and (4) there have been no material adverse changes in the manner herein provided, as soon as possible, to the condition such property was in immediately prior to such damage. Any balance of insurance in excess seismicity of the foregoing requirement shall be the property of Tenant and shall be promptly paid over to Tenant by such escrow agentReal Property.