2001 S Co Attorney - Smith Middle School Ground Lease Agreement with UNC

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groundlease- rev -cl2. orange ARTICLE VII. MUTUAL COVENANTS: DEFAULT: ADDITIONAL MATTERS. 7.1 Fire or Other Casualty. If the Leased Premises is destroyed or partially damaged by fire or other casualty so as to render the Leased Premises untenantable in whole or in part ( "the Casualty Event "), Tenant must construct and rebuild the Improvements previously existing on the Leased Premises. Notwithstanding the above, the Tenant is not obligated to construct and rebuild the Improvements previously constructed on the leased premises under either of the following circumstances: (a) the Casualty Event occurs after the lease has expired; or (b) on the date of the Casualty Event, the Term has less than 15 years to run. 7.2 Condemnation. If a portion of the Leased Premises is taken by exercise of the power of eminent domain (or conveyed by Landlord in lieu of such exercise) and the usefulness of the Leased Premises for Tenant's purposes is not materially abrogated thereby, no part of the award or purchase price shall be claimed by Tenant. If all of the Leased Premises (or so much thereof as to materially abrogate the usefulness thereof for Tenant's purpose) are taken by exercise of the power of eminent domain (or conveyed by Landlord in lieu of such exercise), this Lease will terminate on a date (the "Condemnation Date ") which is the earlier of the date upon which the condemning authority takes possession of the Leased Premises or the date on which title to the Leased Premises is vested in the condemning authority and Tenant and Landlord shall each participate in the award or purchase based upon the amount of loss suffered by each. 7.3 Insurance. 7.3.1 Tenant's Insurance. At all times during the Term of this Lease, Tenant shall carry and maintain at its sole cost and expense, the following insurance in the amounts specified below or such other amounts as Landlord and Tenant may from time to time agree upon, with insurance companies and on forms satisfactory to Landlord and Tenant: 7.3.1.1 Fire and Extended Coverage Insurance. Fire and extended coverage insurance covering all leasehold Improvements in the Premises and all of Tenant's merchandise, equipment, trade fixtures, appliances, furniture, furnishings, and personal property from time to time, on, or upon the Premises, in an amount not less than the full replacement cost without deduction for depreciation from time to time during the term of this Lease, providing protection against all perils included within the classification of fire, extended coverage, vandalism, malicious mischief, special extended peril (all risk), boiler, flood, vandalism, glass breakage, and sprinkler leakage. 7.3.1.2 Workmen's Compensation Insurance. Workmen's compensation insurance insuring against and satisfying Tenant's obligations and liabilities under the workmen's compensation laws of North Carolina, as the same may be amended from time to time. 7.3.2 Forms of Policies. Original or copies of original policies and evidence of the payment of all premiums of such policies shall be delivered prior to Tenant's occupancy of the Premises and from time to time at least thirty (30) days prior to the expiration of the term of each such policy. All such policies maintained by Tenant shall be purchased only from insurers who are licensed to do business in the State of North Carolina, comply with the requirements thereof, and who carry A.M. Best Company rating of "A" or "A +" and will provide that they may not be terminated or amended except after thirty (30) days' prior written notice to Landlord. Notwithstanding the foregoing, nothing herein shall preclude the Tenant from providing self insurance, so long as the level of insurance protection required by this Agreement is maintained, and the Tenant has sufficient reserves to meet its insurance obligation. 7.3.3 Adequacy of Coverage. Landlord, its Agents and employees make no representation that the limits of liability specified to be carried by Tenant pursuant to this Article VII are adequate to protect Tenant. If Tenant believes that any of such insurance Coverage is inadequate, Tenant will obtain, at Tenant's sole expense, such additional insurance coverage as Tenant deems adequate. 6