Nautilus 2009 Annual Report Download - page 239

ARTICLE 4
RENT
Tenant agrees to pay to Landlord all Rent payable hereunder, without set-off or deduction, in lawful money of the United States of America.
Tenant shall pay the Rent as follows:
4.1 Base Rent . Tenant shall pay to Landlord the Base Rent without notice or demand, in installments due and payable in advance on
the first (1 ) day of each calendar month during the Term. Along with and in addition to each monthly Base Rent payment under the Lease,
Tenant shall pay to Landlord any sales or privilege tax required under applicable Law. In the event of any fractional calendar month, Tenant
shall pay for each day in such partial month a rental equal to / 30 of the Base Rent. Concurrent with the execution of this Lease, Tenant will
deliver to Landlord the first month’s Base Rent.
4.2 Tenant’s Payment of Premises Operating Costs
. In addition to the Base Rent and all other payments due under this Lease, Tenant
shall pay Premises Operating Costs promptly upon (and in no event later than 10 business days after) receiving a statement from Landlord
describing the nature and amount of any Premises Operating Costs incurred by Landlord. Tenant shall have the right to demand that Landlord
provide Tenant with copies of any business records of Landlord maintained in the ordinary course of its business in connection with any
Premises Operating Costs. (As provided in Sections 10.2 and 10A.1, the parties intend that Tenant will pay certain Premises Operating Costs
directly to the persons providing goods and services for the repair and maintenance of the Premises or the taxing authority, as the case may be.)
4.2.1 Landlord’s Records
. Landlord shall maintain records regarding Premises Operating Costs incurred and paid by Landlord.
Tenant or its representative shall have the right to examine such records upon reasonable prior notice specifying which records Tenant
desires to examine, during normal business hours at the place or places where such records are normally kept.
4.3 Other Taxes Payable by Tenant
. In addition to the Base Rent and any other charges to be paid by Tenant hereunder, Tenant shall,
as an element of Rent, reimburse Landlord upon demand for any and all Taxes paid by Landlord as a result of Tenant’s failure to satisfy its
obligation (as provided in Article 10A) timely to pay Taxes.
4.4 Place of Payment . All Rent shall be paid at the office of Landlord set forth on the Lease Summary or at such other place as
Landlord may designate.
4.5 Interest and Late Charges . If Tenant fails to pay any Rent when due, after giving effect to any applicable grace periods, the
unpaid amounts shall bear interest at the Interest Rate. Tenant acknowledges that the late payment of any Rent will cause Landlord to incur costs
and expenses not contemplated under this Lease, including, without limitation, administrative and collection costs and processing and accounting
expenses, the exact amount of which is extremely difficult to ascertain. Therefore, in addition to interest, if any such payment is not received by
Landlord within five (5) business days from when due, Tenant shall pay Landlord a late charge equal to five percent (5%) of such payment, plus
any reasonable attorneys’ fees incurred by Landlord by reason of Tenant’
s failure to pay Rent when due. Landlord and Tenant agree that this late
charge represents a reasonable estimate of such costs and expenses and is fair compensation to Landlord for loss resulting from Tenant’s
nonpayment. The late charge shall be deemed Additional Rent and the right to require it shall be in addition to all of Landlord’s other rights and
remedies hereunder or at law and shall not be construed as liquidated damages for any default of Tenant or as limiting Landlord’s remedies in
any manner. In addition, any check returned by the bank for any reason will be considered late and will be subject to all late charges, plus a Fifty
Dollar ($50.00) fee. After two (2) returned checks in any twelve (12) month period, Landlord will have the right to receive payment by wire
transfer, cashier’s check, or money order. Nothing contained herein shall be construed as to compel Landlord to accept any payment of Rent in
arrears or late charges should Landlord elect to apply its rights and remedies available under this Lease or at law or in equity in the event of a
Default.
ARTICLE 5
SECURITY DEPOSIT
Upon Tenant’s execution of this Lease, Tenant shall deposit with Landlord $5,000.00, and no later than September 1, 2010, shall deposit an
additional $35,000.00, as the Security Deposit, as shown on the Lease Summary (subject to a reduction to $17,000.00, in the amount of the
additional deposit if Section 13.6(f) or 13.6(g) apply). The Security Deposit shall serve as security for the prompt, full, and faithful performance
by Tenant of its obligations under this
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