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Section 6.2 Insurance Policies and Premiums. <br /> (a) All liability policies required by this Lease or any of the Lenders shall be <br /> written on an occurrence basis, and shall name the Indemnitees as additional insureds. Duplicate <br /> copies of such policies or certificates of such insurance shall be promptly furnished to Lessor. <br /> (b) All policies of insurance shall include an endorsement that provides that <br /> notice of any change or cancellation of said policy must be made in writing and sent to Lessee <br /> and Lessor at their respective principal offices at least thirty (30) days before the effective date of <br /> change or cancellation. <br /> (c) The rights of Lessor to receipt of any insurance proceeds will be subject <br /> and subordinate to the rights of any Lender pursuant to and in accordance with applicable Loan <br /> Documents. <br /> (d) Companies writing the insurance required hereunder shall be licensed to <br /> do business in the State of California. Insurance shall be placed with insurers with a current <br /> A.M. Best's rating of no less than A: VII. <br /> (e) If any insurance policy or coverage required hereunder is canceled or <br /> reduced, Lessee shall, within fifteen (15) days after receipt of notice of such cancellation or <br /> reduction in coverage, but in no event later than the effective date of cancellation or reduction, <br /> file with Lessor a certificate showing that the required insurance has been reinstated or provided <br /> through another insurance company or companies. Upon failure to so file such certificate. <br /> Lessor may, with notice and at its option, procure such insurance coverage at Lessee's expense, <br /> and Lessee shall promptly reimburse Lessor for such expense upon receipt of billing from <br /> Lessor. <br /> (f) Coverage provided by Lessee shall be primary insurance and shall not be <br /> contributing with any insurance, or self-insurance maintained by Lessor. and the policies shall so <br /> provide. The insurance policies shall contain a waiver of subrogation for the benefit of the <br /> Lessor. Lessee shall furnish the required certificates and endorsements to Lessor prior to the <br /> commencement of rehabilitation or construction work on the Project. and shall provide Lessor <br /> with certified copies of the required insurance policies upon request of Lessor. <br /> (g) Deductibles/Retentions. Any deductibles or self-insured retentions shall <br /> be declared to,and if such deductibles or retentions differ from those specified in the insurance <br /> policies approved by City as of the Commencement Date, they shall be subject to approval by. <br /> City's Risk Manager. At the option of and upon request by City's Risk Manager if the Risk <br /> Manager determines that such deductibles or retentions are unreasonably high, either the insurer <br /> shall reduce or eliminate such deductibles or self-insurance retentions as respects the <br /> Indemnitees or Lessee shall procure a bond guaranteeing payment of losses and related <br /> investigations,claims administration and defense expenses. Notwithstanding the foregoing. for <br /> so long as MUFG Union Bank N.A. has in place an outstanding construction or permanent loan <br /> secured by the Project. the deductibles and self-insured retentions permitted by the Bank's <br /> insurance requirements shall be deemed satisfactory to the City. <br /> 19 <br /> 191\52V1656915.8 <br /> OAK 44834-9609-1684 v11 <br />