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12. Insurance and Liability.
<br /> 12.1 Lessee Insurance. Lessee shall obtain adequate insurance coverage in accordance
<br /> with all applicable laws, if so required, for (i) general liability, (ii) workers' compensation,
<br /> (iii) automobile liability and (iv) fire and extended coverage with regard to the Lessee's
<br /> operations on or about Premises and the Leasehold Improvements located thereon. Lessee shall
<br /> require any of its contractors or agents entering the Premises to obtain and keep in place with
<br /> well rated insurers, authorized to do business in the State of North Carolina, adequate insurance
<br /> coverage, as applicable, for (i) statutory workers' compensation including, employers' liability;
<br /> (ii) comprehensive general liability including, personal injury, broad form property damage,
<br /> independent contractor, XCU (explosion, collapse, underground) and products/completed
<br /> operations; (iii) automobile liability; and (iv) fire and extended coverage insurance.
<br /> Notwithstanding the rights of any insurer, nothing herein shall affect the authority of the
<br /> Attorney General of North Carolina, including but not limited to, the Attorney General's
<br /> authority to represent Lessor in any and all litigation.
<br /> 12.2 Insurance Requirements. All policies shall be issued by insurance companies
<br /> acceptable to Lessor. All such policies maintained by Lessee shall be purchased only from
<br /> insurers who are authorized to do business in the State of North Carolina, who comply with the
<br /> requirements thereof, and who carry an A.M. Best Company rating of "A" or "A+." All
<br /> insurance policies shall contain an endorsement, if obtainable, specifically naming Lessor as an
<br /> additional insured, and shall be primary to any other insurance that may be available to Lessor.
<br /> All insurance policies shall contain an endorsement stating that the insurer will not cancel or
<br /> reduce coverage without first giving Lessor thirty (30) days prior written notice. Lessee will
<br /> provide Lessor with current certificates of such insurance, including a copy of all additional
<br /> insured endorsements, within thirty (30) days after execution of this Lease, and will provide true
<br /> and complete copies of such insurance policies upon Lessor's request.
<br /> 123 Lessee's Liability. As between Lessee and Lessor, Lessee, subject to the terms of
<br /> this Lease, shall be primarily liable for the negligent or intentional acts or omissions of its agents,
<br /> contractors or employees. As to third parties, Lessee, to the extent permitted by law and solely
<br /> to the extent indemnified by an_insurance policy such that any amounts paid by Lessee to Lessor
<br /> comes from insurance proceeds and not from Lessee's funds, agrees to save Lessor harmless
<br /> from and against any and all loss, damage, claim, demand, liability, or expense, including
<br /> reasonable attorney fees, by reason of damage to person or property on or about the Premises,
<br /> which may arise or be claimed to have arisen as a result of the possession, occupation, use or
<br /> operation of the Premises by Lessee, its agents or employees, except where such loss or damage
<br /> arises from the willful or negligent misconduct of Lessor, its agents or employees.
<br /> Notwithstanding the above, no provision of this Lease shall be construed as constituting waiver
<br /> of either Party's governmental immunity under any applicable law.
<br /> 13. Casualty. In the event the Premises and the Leasehold Improvements, or a substantial part
<br /> thereof, shall be damaged by fire or other casualty, Lessee may, at its option, terminate this
<br /> Lease or cause the Premises and the Leasehold Improvements to be repaired or renovated. If
<br /> Lessee determines to make the necessary repairs or renovations, any proceeds from fire or
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