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(4) Lessor expressly reserves the right to lease, convey, or encumber the Lease Premises, in whole or in part, during the Lease
<br />term for any purpose not inconsistent or incompatible with the rights or privileges of Lessee under this Lease.
<br />(b) Encumbrances
<br />The Lease Premises may be subject to pre-existing contracts, leases, licenses, easements, encumbrances, and claims and is
<br />made without warranty by Lessor of title, condition, or fitness of the land for the stated or intended purpose.
<br />7. RULES, REGULATIONS, AND TAXES
<br />(a) Lessee shall comply with and be bound by all presently existing or subsequently enacted rules, regulations, statutes or ordinances
<br />of the State Lands Commission or any Regulatory Agency. Occupancy or use of the Lease Premises provides no exemption from
<br />applicable regulations including, but not limited to, federal, state, county and local regulations, regulations promoting public health,
<br />safety, or welfare, building codes, zoning ordinances, and sanitation regulations. Lessee expressly acknowledges that Regulatory
<br />Agencies have jurisdiction over the Lease Premises unless such laws are in direct conflict with state law or public trust principles.
<br />(b) Lessee understands and agrees that a necessary condition for the granting and continued existence of this Lease is that Lessee
<br />obtains and maintains all permits or other entitlements. Lessee expressly acknowledges that issuance of this Lease does not
<br />substitute for, or provide preference in obtaining authorizations from other Regulatory Agencies.
<br />(c) Taxes
<br />(1) In addition to the rent due under this Lease, Lessee accepts responsibility for and shall pay any and all real and personal
<br />property taxes, including possessory interest taxes, assessments, special assessments, user fees, service charges, and other
<br />charges of any description levied, imposed on, assessed, or associated with the leasehold interest, Improvements on the Lease
<br />Premises, any business or activity occurring on the Lease Premises, the Lease Premises itself, or any portion thereof, levied by
<br />any governmental agency or entity. Such payment shall not reduce rent due Lessor under this Lease and Lessor shall have no
<br />liability for such payment.
<br />(2) In the event that this Lease commences, terminates or expires during a tax year, Lessee shall pay the taxes for the period of
<br />such year during which this Lease was in effect.
<br />(3) Any and all taxes and assessments and installments of taxes and assessments required to be paid by Lessee under this Lease
<br />shall be paid when due and the official and original receipt for the payment of such tax, assessment, or installment shall be
<br />delivered to Lessor upon request.
<br />(4) Lessee shall indemnify and hold Lessor, the Lease Premises, and any Improvements now or hereafter located thereon, free
<br />and harmless from any liability, loss, or Damages resulting from any taxes, assessments, or other charges required by this Lease
<br />to be paid by Lessee and from all interest, penalties, and other sums imposed thereon and from any sales or other proceedings to
<br />enforce collection of any such taxes, assessments, or other charges.
<br />8. INDEMNITY
<br />(a) Lessee's use of the Lease Premises and any Improvements thereon is at Lessee's sole and exclusive risk.
<br />(b) In addition to any other obligation to indemnify Lessor as otherwise provided in this Lease, except to the extent caused by the
<br />sole negligence and/or willful misconduct of the Lessor, Lessee shall indemnify, hold harmless, and, at the option of Lessor, defend
<br />Lessor, its officers, agents, and employees from any and all Damages resulting from Lessee's occupation and use of the Lease
<br />Premises. Lessee shall reimburse Lessor in full for all reasonable costs and attorneys' fees, specifically including, without limitation,
<br />any Damages arising by reason of: (1) The issuance, enjoyment, interpretation, Breach, or Default of this Lease; (2) The challenge
<br />to or defense of any environmental review upon which the issuance of this Lease is based; (3) The death or injury of any person, or
<br />damage to or destruction of any property from any cause whatever in any way connected with the Lease Premises, or with any of the
<br />Improvements or personal property on the Lease Premises; (4) The condition of the Lease Premises, or Improvements on the Lease
<br />Premises; (5) An act or omission on the Lease Premises by Lessee or any person in, on, or about the Lease Premises; (6) Any work
<br />performed on the Lease Premises or material furnished to the Lease Premises; (7) Lessee's failure to comply with any material legal
<br />or other requirement validly imposed on Lessee or the Lease Premises by a Regulatory Agency.
<br />(c) The reimbursement provisions of this Paragraph 8 shall not apply to any claims, litigation, or other actions which maybe brought
<br />by either Lessee or Lessor against each other.
<br />(d) Nothing in this paragraph shall be construed as requiring that Lessor defend itself against all or any aspect of any challenge to
<br />this Lease or any associated environmental review. However, Lessee may take whatever legal action is available to it to defend this
<br />Form51.16 (Rev. 10/14)
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