Nautilus 2009 Annual Report Download - page 240

Lease. In the event that Tenant is in Default hereunder, Landlord may use or apply the whole or any part of the Security Deposit for the payment
of Tenant’s obligations hereunder. The use or application of the Security Deposit or any portion thereof shall not prevent Landlord from
exercising any other right or remedy provided hereunder or under any Law and shall not be construed as liquidated damages. In the event the
Security Deposit is reduced by such use or application, Tenant shall deposit with Landlord, within ten (10) days after notice, an amount
sufficient to restore the full amount of the Security Deposit. Landlord shall not be required to keep the Security Deposit separate from Landlord’
s
general funds or pay interest on the Security Deposit. Provided Tenant has performed all of its obligations under this Lease, the amount of the
Security Deposit shall be applied by Landlord to the monthly payment due for Base Rent for the last month of the Lease Term. If the Lease Term
shall be extended at any increased rate of Rent, the Security Deposit shall thereupon be proportionately increased. No trust or fiduciary
relationship is created herein between Landlord and Tenant with respect to the Security Deposit. If Landlord transfers the Premises during the
Term, Landlord may pay the Security Deposit to Landlord’s successor-in-
interest. Tenant waives the provisions of any Laws now in force or that
become in force after the date of execution of this Lease, that limit the costs, expenses or damages for which Landlord may use a security
deposit, including any provisions of such Laws providing that Landlord may claim from a security deposit only those sums reasonably necessary
to remedy defaults in the payment of Rent, to repair damage caused by Tenant, or to clean the Premises. Landlord and Tenant agree that
Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other foreseeable or unforeseeable loss or
damage caused by the acts or omissions of Tenant or any Tenant Related Party.
ARTICLE 6
USE
6.1 Permitted Use . Tenant shall use the Premises solely for the Permitted Use as shown on the Lease Summary, and for no other
purpose without Landlord’s consent. Tenant shall comply with all recorded covenants, conditions, and restrictions, and the provisions of all
ground or underlying leases, now or hereafter affecting the Premises. Tenant shall not (a) cause, maintain or permit any nuisance arising out of
Tenant’s use or occupancy of the Premises; or (b) commit or suffer to be committed any waste in or upon the Premises.
6.2 Compliance with Law . Tenant has been provided an opportunity to inspect the Premises to a degree sufficient to determine
whether or not the same, in their condition as of the date hereof, violate any applicable Law. Tenant further acknowledges and agrees that, except
as may otherwise be specifically provided in this Lease, Landlord has made no representation or warranty as to whether the Premises conform to
the requirements of Law. Tenant shall be responsible for compliance of the Premises with applicable Law and shall bear all costs necessary to
maintain the Premises in compliance with Law, including, without limitation, structural work, if any. Tenant shall also be responsible for the cost
of any alterations to the Premises necessitated by any change in use of the Premises; provided, however any such change must be within the
Permitted use. Tenant shall not use or occupy the Premises in violation of any Law or the certificate of occupancy issued for the Buildings and
shall, upon notice from Landlord, immediately discontinue any use of the Premises that is declared by any governmental authority having
jurisdiction to be a violation of Law or the certificate of occupancy. A judgment of any court of competent jurisdiction or the admission by
Tenant in any action or proceeding against Tenant that Tenant has violated any such Laws in the use of the Premises shall be deemed to be a
conclusive determination of that fact as between Landlord and Tenant. Should any obligation be imposed by Law, then Tenant agrees, at its sole
cost and expense, to comply promptly with such obligations to the extent the same relate to the Premises or Tenant’s use of the Premises.
6.3 Effect on Landlord’s Insurance . Tenant shall not do or permit to be done anything that will invalidate or increase the cost of any
property coverage, or other insurance policy covering the Premises, including the Buildings, and any property located therein. Tenant shall
promptly, upon demand, reimburse Landlord for any additional premium charged for such policy by reason of Tenant’s failure to comply with
the provisions of this Section.
ARTICLE 7
HAZARDOUS MATERIALS
7.1 Indemnity . Tenant shall indemnify, defend and hold harmless all Landlord Related Parties from and against all claims, suits,
demands, response costs, contribution costs, liabilities, losses, or damages (including, without limitation, reasonable attorneys’ fees), directly or
indirectly arising out of the existence, use generation, migration, storage, transportation, release, threatened release, or disposal of Hazardous
Materials in, on, or under the Premises, or in the groundwater under the Premises and the migration or transportation of Hazardous Materials to
or from the Premises, or the groundwater underlying the Premises, to the extent that any of the foregoing is caused by any Tenant Related
Parties. This indemnity extends to the costs incurred by any Landlord Related Party to investigate, remediate, monitor,
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