Can Americas Best Value Inn change the required amounts of insurance coverage?

We periodically may change the amounts of coverage required under the insurance policies and require different or additional kinds of insurance, including excess liability insurance. All insurance may be effected under policies of blanket insurance which cover your other properties and affiliates so long as such blanket insurance satisfies our requirements, as they periodically are modified. Our requirements for minimum insurance coverage are not representations or warranties of any kind that such coverage is sufficient for your Hotel's operations. Such requirements represent only the

Insurance Requirements

• (a) Types and Amounts of Coverage. Throughout the Term, you will maintain such types of insurance in such amounts as we may require. Such insurance is in addition to any other insurance that may be required by applicable law, your landlord, your mortgagee, or otherwise. At a minimum, such policies shall include the following (liability limits for primary and excess/umbrella policies may be in any combination as long as the total minimum limit requirements are met):
• (i) Commercial general liability ("CGL") insurance for any claims or losses arising or resulting from the operations/premises of the Premises with limits of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000; limits shall apply on a per location aggregate basis if Premises is insured under a blanket policy;
• (ii) Property/all risk and contents insurance (or builder's risk insurance during any period of construction) on all building(s) and contents against loss or damage by fire, lightning and all other risks associated and covered by the "all risks" policy form, all in an amount not less than 90% of the replacement cost;
• (iii) Boiler & machinery insurance against loss or damage from explosion of boilers or pressure vessels to the extent applicable;
• (iv) Business interruption insurance covering at least 12 months loss of profits and necessary continuing expenses for interruptions caused by a covered occurrence;
• (v) Workers' compensation insurance in statutory amounts for all your employees and employer's liability insurance in amounts not less than $1,000,000 per accident/disease;
• (vi) Liquor liability (applicable only when or if you distribute, sell, serve, or furnish alcoholic beverages) with limits of not less than $1,000,000 per occurrence; limits shall apply on a per location aggregate basis if Premises is insured under a blanket policy;
• (vii) Automobile liability insurance including owned, non‐owned and hired vehicles for combined single limits of bodily injury and property damage of not less than $1,000,000 per occurrence and a general aggregate limit not less than $3,000,000; and
• (viii) Garage-keeper's liability to the extent that Premises operations include parking operations, with a limit adequate to cover the full actual value of all automobiles that are in your care, custody, and control at any one time.

Source: Item 23 — RECEIPTS (FDD pages 71–223)