Nautilus 2009 Annual Report Download - page 265

EXHIBIT B – CONSTRUCTION
This Exhibit sets forth the terms and conditions relating to construction work in the Premises. All references in this Exhibit to capitalized
terms or “this Lease” shall mean the relevant portion of the lease to which this Exhibit is attached and of which this Exhibit forms a part.
1. Inspection by Landlord . Landlord shall have the right to inspect work at all times; provided however, Landlord’s failure to inspect any
work shall in no event constitute a waiver of any of Landlord’s rights hereunder, nor shall Landlord’s inspection of the work constitute
Landlord’s approval thereof. Should Landlord disapprove any work, Landlord shall notify Tenant in writing of such disapproval and shall
specify the items disapproved. In the event Landlord disapproves of any matter that might adversely affect the Premises, Landlord may take such
action as Landlord deems necessary, at Tenant’s expense and without incurring any liability on Landlord’s part, to correct any such matter,
including, without limitation, causing the cessation of the applicable work.
2. Insurance . In addition to any insurance that may be required under this Lease, Tenant shall secure, pay for and maintain or cause
Tenant’s contractors to secure, pay for and maintain during the continuance of any work, the following insurance:
(a) Worker’
s Compensation Insurance with a limit of not less than the greater of (i) $500,000, or (ii) the amount required from time to time
by applicable Laws.
(b) Employer’s Liability Insurance with a limit of not less than $1,000,000.
(c) Commercial General Liability Insurance (including Contractor’s Protective Liability) in an amount not less than $1,000,000 per
occurrence, whether involving bodily injury liability (or death resulting therefrom) or property damage liability or a combination thereof with a
minimum aggregate limit of $2,000,000, and with umbrella coverage with limits not less than $5,000,000 ($10,000,000 if the cost of the work is
greater than $1,000,000). Such insurance shall provide for explosion and collapse, completed operations coverage and broad form blanket
contractual liability coverage and shall insure against any and all claims for bodily injury, including death resulting therefrom, and damage to the
property of others and arising from its operations under the contracts whether such operations are performed by Tenant’s contractors or by
anyone directly or indirectly employed by any of them.
(d) Automobile Liability Insurance, including the ownership, maintenance and operation of any automotive equipment, owned, hired, or
non-owned in an amount not less than $1,000,000 for bodily injury and property damage combined in any one accident. Such insurance shall
insure against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others arising from its
operations under the contracts, whether such operations are performed by Tenant’s contractors, or by anyone directly or indirectly employed by
any of them.
(e) “All-risk” builder’s risk insurance for the full insurable value of the work (including all stored material and equipment), as approved by
Landlord. This insurance shall include the interests of Landlord and Tenant (and their respective contractors and subcontractors of any tier to the
extent of any insurable interest therein) in the work and shall insure against physical loss or damage including, without duplication of coverage,
theft, vandalism and malicious mischief. If any materials or equipment will be stored offsite or will be in transit to the job site and are not
covered under said “all-risk” builder’s risk insurance, then Tenant shall effect and maintain similar property insurance on such materials and
equipment. Any loss insured under said “all-risk” builder’s risk insurance shall be adjusted with Landlord and Tenant and made payable to
Landlord, as trustee for the insureds, as their interests may appear.
(f) Commercial Catastrophe or “Umbrella” Excess Liability Insurance, as stated above, on an “occurrence” basis with a limit of not less
than $5,000,000 (or $10,000,000, as applicable) per occurrence and in the aggregate.
(g) Professional Liability Insurance with limits of not less than the amount that would prudently be maintained for comparable work, which
shall in no event be less than $1,000,000 per claim and in the aggregate.
(h) Pollution Liability and Environmental Impairment Insurance with limits of not less than $2,000,000 per claim and $5,000,000 in the
aggregate.
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