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Contractors and their subcontractors and shall insure against
<br />the loss from the perils of fire and all risk coverage for physical
<br />loss or damage due to theft, vandalism, collapse, malicious
<br />mischief, transit, flood, earthquake, testing, or damages
<br />resulting from defective design, negligent workmanship or
<br />defective material. Owner acknowledges that flood coverage
<br />may be limited to $500,000, and that any earthquake coverage
<br />may be limited to 25% of the structure limit. The CM;4R~shall
<br />obtain approval from the Owner before increasing any
<br />coverage due to increases in construction costs.
<br />8.2.2 Other Prooerty Insurance
<br />[Not used.]
<br />8.2.3 Partial Occuoancv: If the Owner occupies or uses a part
<br />or parts of the Project prior to substantial completion thereof,
<br />such occupancy shall not occur until the Owner obtains
<br />property insurance for the structure.
<br />8.2.4 Notices and Recovery
<br />If requested by the Owner, the CMAR shall .provide the Owner
<br />with copies of all policies thus obtained for the Project. The
<br />CMAR shall provide the Owner with thirty (30) days advance
<br />notice of cancellation, non-renewal or endorsement reducing or
<br />restricting coverage.
<br />8.2.5 Waiver of Subrogation
<br />The Owner and the CMAR waive. all rights against each other
<br />and against-~ the Contractors, consultants, agents and.
<br />employees of the other for damages occurring during
<br />construction and covered by builder's risk and any property
<br />insurance required for this Project, excluding the Owner's
<br />property insurance. The Owner and the CMAR shall each
<br />require appropriate similar waivers from their contractors,
<br />consultants and agents. This waiver does not apply to design
<br />liability.
<br />8.3 Indemnity
<br />To the fullest extent permitted by law, the CMAR shall
<br />indemnify and hold harmless the Owner, its employees, agents
<br />(including the Designer), officers, directors and partners from
<br />and against any and all claims, demands, suits, damages,
<br />costs and expenses, including reasonable attorneys' fees,
<br />resulting from personal injury or property damages, that are
<br />asserted against the Owner, its employees, agents (including
<br />the Designer), officers, directors and partners and that arise out
<br />of or result from negligent acts or omissions by the CMAR, its
<br />employees, agents and representatives in performing services
<br />under this Agreement. The CMAR shall not be required to
<br />indemnify any person against losses resulting from a breach of
<br />contract or resulting from negligence, misconduct or violation of
<br />laws on the part of any person indemnified hereunder.
<br />The CMAR and Owner waive claims against each other for
<br />consequential damages arising out of or relating to this
<br />Agreement and the Project. This mutual waiver includes: (a)
<br />damages incurred by the Owner for rental expenses, for losses
<br />of use, income, profit, financing, business and reputation, and
<br />for loss of management or employee productivity or of the
<br />services of such persons; and (b) damages incurred by the
<br />CMAR for principal office expenses including the compensation
<br />of personnel stationed there, for losses of financing, business
<br />and reputation, and for loss of profit except anticipated profit
<br />arising directly from the Work. This mutual waiver is applicable,
<br />without limitation, to all consequential damages due to either
<br />party's termination in accordance with Article 9. Nothing
<br />contained in this Paragraph shall be deemed to preclude the
<br />award of liquidated direct damages, when applicable, in
<br />accordance with the requirements of the Contract Documents.
<br />The CMAR shall procure and maintain insurance as required
<br />by and set forth in this Agreement.
<br />8.3.1 Indemnification by Designer
<br />The Owner shall cause the Designer to indemnify and hold
<br />harmless the Owner, its employees, agents and
<br />representatives to the same extent and in the same manner
<br />that the CMAR has provided indemnification .for the Owner
<br />under Paragraph 8.3.
<br />8.3.2 Indemnification by Contractors
<br />The CMAR shall cause each Contractor to indemnify and hold
<br />harmless the Owner, CMAR and Designer from and against
<br />any and all claims, demands, suits, damages, costs and
<br />expenses, including reasonable attorneys' fees, resulting from
<br />personal injury or property damages, that are asserted against
<br />the Owner, CMAR and the Designer and that arise out of or
<br />result from negligent acts or omissions by the Contractor, its
<br />employees, agents and representatives in performing the
<br />Work.
<br />8.4 Bonds
<br />The CMAR shall purchase and provide 100% Performance and
<br />Payment Bonds, which Bonds shall comply with the
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