270 Legal [Sample Agreements]

LEASE AGREEMENT

THIS LEASE AGREEMENT (this “Lease”) is made and entered into to be effective as of the 6th day of June, 2007 (“Effective Date”), by and between BEHRINGER HARVARD CORDILLERA, LLC, a Delaware limited liability company (“Lessor”), and BEHRINGER HARVARD RESIDENCES AT CORDILLERA, LLC, a Delaware limited liability company (“Lessee”). B

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13.3 Casualty Insurance.

(a) Subject to Section 13.4 below, Lessee shall, at all times during the term of this Lease, and at Lessee’s cost and expense, keep the Leased Property insured (through Lessee’s own insurers) for the benefit of Lessee and Lessor, as their interests may appear.

(i) against “all risks” of physical loss or damage for the Full Replacement Value thereof, in form no less comprehensive than ISO Form CP 10 30 (ED 10/91), as amended from time to time, and without exclusion for loss or damage by fire, lightning, windstorm, hail, explosion, riot, civil commotion, aircraft, vehicles, smoke, vandalism, malicious mischief, sprinkler leakage, volcanic action, breakage of glass, falling objects, weight of ice and snow or sleet, water damage, weather conditions or collapse;

(ii) against such other “all risk” perils, including earthquake and flood, commonly insured against by a Difference in Conditions insurance policy in such amounts as are obtainable from time to time, but in no event in amounts less than those required under the terms of the Mortgage

(iii) on equipment for the supply or control of heat, light, power, hot water, cold water, gas, refrigeration, or air-conditioning against direct or consequential loss or damage, as customarily covered under a Boiler and Machinery policy with a comprehensive definition of insured equipment, in the amount of at least Five Million Dollars ($5,000,000) or amounts as Lessee may from time to time reasonably require;

(iv) for such other risks (including loss to fine arts, accounts receivable, valuable papers and records, electronic media and records, and shipments in transit) that, at the time, are commonly insured against by Lessees of hotel premises in the State of Colorado, with due regard being or to be given to the then-existing circumstances and to the type, construction, design, use and occupancy of the Hotel; and

(v) against “Business Interruption and Extra Expense” (as that phrase is used within the United States insurance industry for application to transient lodging facilities) in form no less comprehensive than ISO Form CP 00 30 (10/91), as amended from time to time, resulting from loss or damage from the hazards specified above, to owned or non-owned property, which prevents normal operations from continuing; such coverage shall: be on an “Actual Loss Sustained” basis in an amount equal to at least one (1) year’s expected net income before income tax (calculated according to Generally Accepted Accounting Principles and the Uniform System), plus continuing normal Operating Expenses, including Operator’s Management Fee, Reimbursable Expenses and other amounts payable to Operator under this Lease, that necessarily continue, notwithstanding the business interruption; the insurance shall also provide “extended period of indemnity” or “extended business income” provisions for payment of loss until normal operations resume, but in any event for a period of not less than one hundred eighty (180) days after business operations for resumed; the insurance shall also include an “ordinary payroll” endorsement for a minimum of ninety (90) days.

(b) Notwithstanding anything to the contrary in the Lessee, Lessee shall not place any insurance with respect to the Leased Property under this Lease unless and until such insurance has been reviewed and approved by Lessor.
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