<PAGE>
Exhibit 10.75
OFFICE LEASE AGREEMENT
BASIC LEASE INFORMATION
1. Date:
October 29, 2003
2. Landlord: Old Gettysburg
Associates II
3. Tenant: Select
Medical Corporation
4. Guarantor: None
5. Building: Executive Park West
II, 4720 Old Gettysburg Road,
Mechanicsburg, PA 17055
6. Premises: Suite 103 and 305
7. Commencement Date:
October 1,
2003
8. Expiration Date:
September 30, 2008 (a
five year term)
9. Rentable Area of the
Building: 42,987
Rentable
square feet
10. Rentable Area of the Premises:
8,644
Rentable square feet
11. Useable Area of the Building:
37,272
Useable square
feet
12. Useable Area of the Premises:
7,347
Useable square feet
13. Tenant's Proportionate Share:
20%
(Item 12 divided by Item 11)
14. Initial Annual Base Rental:
$155,678.00
15. Initial Annual Base Rental Rate:
$18.01
per Rentable square foot
16. Annual Base Rental Increase
(cumulative)
3.25 %
17. Initial Annual Operating Expense
Allowance: $52,209.76
18. Initial Annual Operating Expense
Allowance Rate: $6.04
for Rentable square
foot for Fiscal
Year 2003.
19. Annual Operating Expense Allowance
Increase (cumulative):
3.25
%
20. Fiscal Year:
Twelve months ending December 31
21. Security Deposit: None
payable at the time the Lease is signed.
22. First Rent Check of $12973.20
payable at
the time the Lease is signed.
23. Broker: None
24. Additional Terms and Conditions:
Landlord shall pay $5/SF per rentable
area of the Premise or $43,220 toward
tenant improvement
<PAGE>
1. Landlord's Address for
Notices: Old Gettysburg Associates II, c/o
Select Capital Corp
4718 Old Gettysburg Road,
Mechanicsburg, PA 17055
Attention: Laura
Martin
1. Tenant's Address for
Notices: Select
Medical Corporation
4718 Old Gettysburg Rd.,
Mechanicsburg, PA 17055
Attention: Legal
Counsel
Exhibits A-F are part of this Lease,
identified as follows:
Exhibit A,
Description of Premises
Exhibit B,
Description of Real Property
(1)EXHIBIT C, DESCRIPTION OF LEASEHOLD IMPROVEMENTS
Exhibit D,
Description of Parking Rights
Exhibit E,
Security Card/Key Access
Exhibit F,
Rules and Regulations
The foregoing Basic Lease Information is
hereby incorporated into and made a
part of the Office Lease Agreement which is
described herein and attached. Each
reference in the Lease to any information
and definitions contained in the Basic
Lease Information shall mean and refer to
the information and definitions
hereinabove set forth. In the event of any
conflict between any Basic Lease
Information and the Lease, the Lease shall
control.
Landlord:
OLD GETTYSBURG ASSOCIATES II
a Pennsylvania general partnership
WITNESS:
By: /s/ John M.
Ortenzio
-----------------------
-----------------------------------------
John M. Ortenzio, General Partner
Tenant:
ATTEST:
By: /s/ Scott A.
Romberger
------------------------
-----------------------------------------
Scott A. Romberger, Vice President
<PAGE>
EXHIBIT 10.75
TABLE OF CONTENTS
<TABLE>
<S>
<C>
ARTICLE 1 -
PREMISE.........................................................
4
ARTICLE 2 -
TERM............................................................
4
ARTICLE 3 - DELIVERY OF THE PREMISES TO
TENANT.............................. 5
ARTICLE 4 - ACCEPTANCE OF THE PREMISESES
AND BUILDING BY TENANT............. 5
ARTICLE 5 -
RENTAL..........................................................
5
ARTICLE 6 - OPERATING
EXPENSES.............................................. 6
ARTICLE 7 - SERVICES BY
LANDLORD............................................ 8
ARTICLE 8 -
UTILITIES.......................................................
8
ARTICLE 9 -
USE.............................................................
9
ARTICLE 10 - LAWS, ORDINANCES AND
REQUIREMENTS OF PUBLIC AUTHORITIES......... 10
ARTICLE 11 - OBSERVANCE OF RULES AND
REGULATIONS............................. 10
ARTICLE 12 -
ALTERATIONS.....................................................
11
ARTICLE 13 -
LIENS...........................................................
11
ARTICLE 14 - ORDINARY
REPAIRS................................................
11
ARTICLE 15 -
INSURANCE.......................................................
12
ARTICLE 16 - DAMAGE BY FIRE OR OTHER
CAUSES.................................. 13
ARTICLE 17 -
CONDEMNATION....................................................
14
ARTICLE 18 - ASSIGNMENT AND SUBLETTING
...................................... 15
ARTICLE 19 -
INDEMNIFICATION.................................................
15
ARTICLE 20 - SURRENDER OF THE
PREMISES....................................... 16
ARTICLE 21 - ESTOPPEL
CERTIFICATES...........................................
16
ARTICLE 22 -
SUBORDINATION...................................................
17
ARTICLE 23 -
PARKING.........................................................
17
ARTICLE 24 - DEFAULT AND
REMEDIES............................................ 18
ARTICLE 25 - WAIVER BY
TENANT................................................ 20
ARTICLE 26 - SECURITY
DEPOSIT................................................
20
ARTICLE 27 - ATTORNEY'S FEES AND LEGAL
EXPENSES.............................. 20
ARTICLE 28 -
NOTICES.........................................................
21
ARTICLE 29 -
MISCELLANEOUS...................................................
21
EXHIBIT "A" - DESCRIPTION OF
PREMISES........................................ 25
EXHIBIT "B" - DESCRIPTION OF
BUILDING........................................ 26
EXHIBIT "C" - DISCRIPTION OF PARKING
RIGHTS.................................. 27
EXHIBIT "D" -
PARKING........................................................
28
EXHIBIT "E" - SECURITY CARD
ACCESS........................................... 29
EXHIBIT "F" - RULES AND
REGULATIONS.......................................... 30
</TABLE>
<PAGE>
Exhibit 10.75
OFFICE LEASE AGREEMENT
THIS Lease, dated as of the date specified
in the Basic Lease Information which
is attached hereto and incorporated herein
for all purposes, is made between
Landlord and Tenant.
ARTICLE 1
PREMISES
Landlord leases to Tenant, and Tenant
leases from Landlord for the Term (as
defined below) and subject to the
provisions hereof, to each of which Landlord
and Tenant mutually agree, the Premises,
which Premises is more particularly
described in the floor plans in Exhibit A
hereto, together with its
appurtenances, including the right to use,
in common with others, the lobbies,
entrances, stairs, elevators, off-street
parking and loading areas (for loading
and unloading of materials and supplies),
and other public portions of the
Building, which Building is situated on the
real property described in Exhibit B
hereto. The Premises shall constitute part
of the "Rentable Area," which shall
be determined and defined by Landlord using
standards adopted by Building Owners
and Managers Association (BOMA). For
purposes of this Lease, the Rentable Area
of the Building and the Rentable Area of
the Premises are as provided in the
foregoing Basic Lease Information. The term
"Common Areas" shall mean all of the
common facilities now or hereafter under,
over, in or adjacent to the Building
designed and intended for use by all
Tenants in the Building in common
facilities now or hereafter under, over, in
or adjacent to the Building designed
and intended for use by all Tenants in the
Building in common with Landlord and
each other.
ARTICLE 2
TERM
Section 2.01. The term of this Lease (the
"Term") shall begin on the
Commencement Date. The Commencement Date
shall be the earlier of the date:
(a) specified
in the Basic Lease Information provided
Landlord has delivered the Premises with the Building Standard
Leasehold Improvements as set forth on Exhibit C substantially
completed: or
(b) of
Tenant's occupancy of the Premises for the conduct
of Tenant's business (i.e. not occupancy for construction
purposes)(the "Commencement Date").
Unless sooner terminated, the Term shall
end at midnight on the Expiration Date
specified in the Basic Lease
Information.
Section 2.02. Provided Tenant performs all
of Tenant's obligations under this
Lease, including Tenant's covenant for the
payment of Rental as defined below,
Tenant shall, during the Term, peaceably
and quietly enjoy the Premises without
disturbance from Landlord; subject,
however, to the terms of this Lease and any
deeds of trust, restrictive covenants,
ground leases, easements, and other
encumbrances to which this Lease now or may
become subject and subordinate.
2
<PAGE>
Exhibit 10.75
ARTICLE 3
DELIVERY OF THE PREMISES TO TENANT
Before the Commencement Date, Landlord
shall substantially complete the floor(s)
or portions thereof on which the Premises
are located and shall construct the
Leasehold Improvements, if any, to be
constructed or installed by Landlord
pursuant to the provisions of Exhibit C
hereto. If for any reason Landlord
cannot deliver the Premises to Tenant by
the Commencement Date, this Lease shall
not be void or voidable, nor shall Landlord
be liable for any loss or damage
resulting therefrom, except that the Rental
shall be waived for the period
between the Commencement Date and the date
when Landlord can deliver possession
and Landlord shall extend the Term. Tenant
may not enter or occupy the Premises
until it is tendered by Landlord, unless
Tenant's entry relates to construction
work in the Premises. The Premises shall be
deemed completed and possession
delivered when the Premises is completed to
accommodate Tenants use. The terms
of Exhibit C hereto shall govern the
construction and installation of all
Leasehold Improvements. The term "Building
Standard Leasehold Improvements" as
used herein shall mean those Leasehold
Improvements which conform to Building
Standard. The term "Non-Building Standard
Leasehold Improvements" as used herein
shall mean all Leasehold Improvements which
exceed or deviate from Building
Standard. The terms "Building Standard" and
"Non-Building Standard" as used
herein shall have the meanings specified in
Exhibit C hereto.
ARTICLE 4
ACCEPTANCE OF THE PREMISES AND BUILDING BY TENANT
Taking possession of the Premises by Tenant
shall be conclusive evidence that
Tenant:
(a) accepts
the Premises as suitable for the purposes for
which they are Leased;
(b) accepts
the Building and every part and appurtenance
thereof as being in a good and satisfactory condition; and
(c) waives any
defects in the Premises and its
appurtenances, except for the completion of those items, if
any, on any punchlist and on Exhibit C attached hereto.
Landlord shall not be liable, except for
negligence or willful misconduct, to
Tenant or any of its agents, employees,
licensees, or invitees for any injury or
damage to person or property due to the
condition or design of or any defect in
the Building or its mechanical systems and
equipment which may exist or occur,
and Tenant, for itself and its agents,
employees, licensees, and invitees,
expressly assumes all risks of injury or
damage to person or property, either
proximate or remote, resulting from the
condition of the Premises or the
Building.
ARTICLE 5
RENTAL
3
<PAGE>
Exhibit 10.75
Section 5.01. Tenant covenants and agrees
to pay to Landlord as Rental for the
Premises, in lawful money of the United
States, 1/12 of the Annual Base Rental
specified in the Basic Lease Information,
payable monthly in advance, without
notice or demand, on the first day of each
calendar month. In the event of any
late payment, Tenant agrees to pay a late
charge for special handling equal to
5% of the Rental due. Rental shall be paid
to Landlord, without deduction or
offset, at the address of Landlord
specified in the Basic Lease Information or
such other place as Landlord may designate
in writing. The first monthly
installment of Rental shall be paid on the
Commencement Date, except that if the
Commencement Date is a date other than the
first day of a calendar month, then
the monthly Rental for the first and last
fractional months of the Term shall be
appropriately prorated. The term "Rental"
as used herein means the sum of Annual
Base Rental, Proportionate Share of
Operating Expense Excess (as defined in
Section 6.01), Parking Rental (as defined
in Exhibit D hereof), and all other
sums, whether or not expressly denominated
as rent, shall constitute Rental for
the purposes of Section 502(b)(7) of the
Bankruptcy Code U.S.C. 502(b)(7). A
service charge of 10% of the amount of any
checks returned stamped "NSF" will be
due and payable, in addition to the overdue
installments to cover Landlord's
extra cost and expense in handling and
processing. No payment by Tenant or
receipt by Landlord of a lesser amount than
the monthly installment due under
this Lease shall be deemed to be other than
on account of the earliest Rental
due hereunder, nor shall any endorsement or
statement on any check or payment as
Rental be deemed an accord and
satisfaction, and Landlord may accept such check
or payment without prejudice to Landlord's
right to recover the balance of such
Rental or pursue any other remedy provided
in this Lease or by law.
Section 5.02. Upon the first anniversary of
the Commencement Date of this Lease,
and upon each and every anniversary date
thereafter, the then current Annual
Base Rental shall be increased by the
Annual Base Rental Rate Increase
(cumulative) as specified in the Basic
Lease Information.
ARTICLE 6
OPERATING EXPENSES
Section 6.01. From the Commencement Date
until the Fiscal Year End following the
Commencement Date, Tenant shall pay on a
monthly basis in advance, without
demand, on the first day of each calendar
month, as part of the Annual Base
Rental, Tenant's Proportionate Share of
Operating Expenses (as defined in
article 6 and 7) in excess of the Initial
Operating Expense Allowance
("Operating Expense Excess"). Such payments
shall be calculated and made as
follows:
(a) Before the
beginning of each Fiscal Year during the
Term, Landlord shall furnish Tenant with Landlord's reasonable
estimate of the Operating Expenses and any anticipated
Operating Expense Excess for such Fiscal Year. On the first
day of each month during such Fiscal Year, Tenant shall pay
Tenant's Proportionate Share of such Fiscal Year's estimated
Operating Expense Excess in monthly installments of 1/12th of
Tenant's Proportionate Share of the estimated annual Operating
Expense Excess for such Fiscal Year.
(b) By the
first day of March of each Fiscal Year during
Tenant's occupancy (beginning with the Fiscal Year following
the Commencement Date), or as soon thereafter as possible,
Landlord shall furnish to Tenant a statement of Landlord's
actual Operating
Expense Excess for the previous Fiscal Year
or fraction thereof if the Commencement Date occurred after
the first day of the previous Fiscal Year. If the actual
Operating Expense Excess is greater than Landlord's estimate,
a lump sum payment, considered Rental for all purposes, shall
be made by Tenant, within 30 days of
4
<PAGE>
Exhibit 10.75
the delivery of that statement, equal to Tenant's
Proportionate Share of the actual Operating Expense Excess
over the Landlord's estimate for the previous Fiscal Year. If
the actual Operating Expense Excess is less than Landlord's
estimate, a lump sum payment shall be made by Landlord, within
30 days of delivery of that statement, equal to Tenant's
Proportionate Share of the actual Operating Expense Excess
under Landlord's estimate. The effect of this reconciliation
payment or adjustment is that the Tenant shall pay during each
Fiscal Year during the Term, in addition to the Annual Base
Rental, Tenant's Proportionate Share of Operating Expenses in
excess of an amount equal to that Fixed years allowance. Said
amount is based upon 12 months of building operation with all
tenants utilizing all services provided by Landlord pursuant
to Article 7 and Article 8.
(c) The Annual
Operating Expense Allowance shall be
increased each fiscal year by the Annual Operating Expense
Allowance Increase (cumulative) as specified in the Basic
Lease Information.
(d) With
respect to the last Fiscal Year or partial
Fiscal Year, as the case may be, during the Term, an
adjustment will be made between Landlord and Tenant pursuant
to Section 6.02, at the appropriate time after the Expiration
Date. The provisions of the paragraph (d) shall survive
termination of this Lease with respect to such adjustment and
any payments owing by either party to the other after
termination hereof.
Section 6.02. As used herein, "Operating
Expense" means all expenses, costs, and
disbursements of every kind which Landlord
pays or incurs in connection with the
ownership, operation (including, without
limitation, the costs of utilities),
and maintenance of the Building, Parking
Areas, and exterior areas contained
within the boundaries described in Exhibit
B upon which the Building is
situated. All Operating Expenses shall be
determined according to generally
accepted accrual accounting principles
which shall be consistently applied.
Operating Expenses shall include, but are
not limited to, the following:
(a) Wages,
salaries, and fees of all personnel or entities (exclusive of
Landlord's executive personnel) directly engaged in the
operation,
maintenance, repair, or security of the Building, including
taxes,
insurance, and benefits relating thereto. As to personnel not
involved
exclusively with the administration and operation of the Building,
only
those portions of such expenses reasonably allocable to the
Building
shall be included.
(b) All
supplies and materials used in the operation and maintenance of
the
Building, except for special lighting, relamping and ballasts
within
any Tenant space.
(c) Expenses
of all maintenance, janitorial, security, and service
agreements for the Building and the equipment therein,
including,
without limitation, alarm service, janitorial services, exterior
window
cleaning, elevator maintenance, landscaping, parking facility
maintenance, roadway and utility maintenance and cleaning, etc.
(d) Expenses
of all insurance relating to the Building for which Landlord
is responsible hereunder, or which Landlord considers
reasonably
necessary for the operation of the Building, including, without
limitation, the cost of property, casualty and liability
insurance
applicable to the Building and Landlord's personal property used
in
connection therewith, and the cost of business interruption or
rental
insurance.
(e) All taxes,
assessments, and other governmental charges, now or
hereafter applicable to the Building, or any portion thereof, or
to
Landlord's personal property used in connection therewith, and
dues
(including those levied by any Association managing all common
areas
and easements)
5
<PAGE>
Exhibit 10.75
attributable to the Building or its operation, exclusive of any
inheritance, gift, franchise, income, corporate, or profit taxes
which
may be assessed against Landlord.
(f) Expenses
of repairs and general maintenance (excluding repairs and
general maintenance paid by proceeds of insurance or by Tenant or
other
third parties, and alterations attributable solely to Tenants of
the
Building).
(g) Landlord's
Costs related to fees paid to individuals or companies
engaged in rendering legal, accounting or technical services
including
efforts to reduce Building Ad Valorem Tax expenses.
(h) All
utility costs to Landlord of the Building (exclusive, however,
of
such special utility services as are provided in Section 8.02
hereof),
including, without limitation, water, power, fuel, heating,
lighting,
air conditioning, and ventilation.
Operating Expenses shall not include
specific costs especially billed to and
paid by specific Tenants such as above
Building Standard janitor service, above
Building Standard utility service, or other
services above Building Standard.
Tenant shall be liable for all taxes levied
or assessed against personal
property, furniture, fixtures, or Tenant
finish placed by Tenant in the
Premises. If any such taxes for which
Tenant is liable are levied or assessed
against Landlord or Landlord's property,
and Landlord elects to pay the taxes
based on such increase, Tenant shall pay to
Landlord upon demand that part of
such taxes for which Tenant is liable
hereunder; provided that Tenant shall have
the right to contest such taxes if Tenant
shall have furnished Landlord with
security sufficient in Landlord's
reasonable determination.
ARTICLE 7
SERVICES BY LANDLORD
While Tenant is occupying the Premises and
is not in default under this Lease,
Landlord shall, at its expense, but subject
to the provisions of Articles 6 and
8 hereof, furnish the Premises with:
(a) passenger
elevator service (where applicable) in
common with other Tenants for access to and from the Premises,
reasonably limited after normal business hours and on
Saturdays, Sundays, and holidays;
(b) janitorial
cleaning services as are customarily
provided to Tenants in comparable office buildings in the
greater Harrisburg area; and
(c) the
utility services provided for in Article 8 below.
ARTICLE 8
UTILITIES
Section 8.01. While Tenant is occupying the
Premises and is not in default under
this Lease, Landlord shall furnish Tenant
with the following services:
(a) potable
water
6
<PAGE>
Exhibit 10.75
(b) heating,
ventilating, and/or air conditioning in
season on business days from 7:00 a.m. to 6:00 p.m.
(c) electric
lighting for public areas and special
Services Areas of the Building
all of which services shall be provided to
Tenant by Landlord and paid for by
Landlord as part of the Operating Expense
Allowance. If Tenant requires air
conditioning or heating outside the hours
and days specified above, Landlord
shall furnish it only at Tenant's request,
and Tenant will bear the entire
charge therefor which will be an amount
equal to the rate charged to Landlord,
at that time, plus a reasonable fee to
cover Landlord's overhead costs, with a
two-hour minimum. With respect to such
after hours costs, Landlord acknowledges
that the current after hours charge is
$35.00 per hour. Whenever machines or
equipment that generate abnormal heat are
used in the Premises by Tenant which
affect the temperature or humidity
otherwise maintained by the central air
conditioning system, Landlord will have the
right to install supplemental air
conditioning units in the Premises, and the
full total cost thereof, will be
paid by Tenant to Landlord on demand.
Notwithstanding anything in this Lease to
the contrary, Tenant shall be responsible
for the cost of special lighting
relamping and ballasts within the Premises
after initial installation of such
items.
Section 8.02. While Tenant is occupying the
Premises and is not in default under
this Lease, Landlord will furnish
sufficient power for lighting and for
typewriters, dictaphones, personal
computers, calculating machines, and other
normal office machines of similar low
electrical consumption, all of which power
shall be paid for by Landlord as a part of
the Operating Expense Allowance.
Tenant agrees that Landlord's aforesaid
obligation does not include the
provision of power for:
(a) special
mainframe type computers and/or electronic
data processing equipment,
(b) special
lighting which has electrical consumption in
excess of the Building Standard lighting, or
(c) any item
that consumes more than 0.5 kilowatts at
rated capacity or requires a voltage other than 120 volt
single phase
and such consumption by Tenant shall be
deemed excessive usage for which Tenant
shall pay Landlord upon receipt of an
invoice for the cost to Landlord of such
usage. Notwithstanding the aforementioned,
Tenant acknowledges that the Building
electrical feeders have normal design
limitations, such that
(i) in no
event shall lighting have a design load greater
than an average of 2.00 watts per Usable square foot, and
(ii)
collectively, Tenant's equipment and lighting shall
not have an electrical design load greater than an average of
3.75 watts per Usable square foot.
Upon the existence of Tenant's excess
electrical requirements, Landlord may, at
its option, upon not less than 30 days
prior written notice to Tenant,
discontinue electric services to the
Premises until Tenant reduces its power
consumption to the permissible limits.
Landlord will not be liable in any way to
Tenant for failure or defect in the supply
or character of electric energy or
any other utility service furnished to the
Premises because of any requirement,
act, or omission of the public utility
servicing the Building. All installations
of electrical fixtures, appliances, and
equipment within the Premises shall be
subject to Landlord's prior approval.
Landlord's obligation to furnish utility
services shall be subject to the rules and
regulations of any municipal or other
governmental authority regulating the
business of providing utility services.
When Tenant's use of the Premises consumes
power in excess of the Building
Standard lighting and for typewriters,
dictaphones, calculating machines and
other normal office
7
<PAGE>
Exhibit 10.75
machines of similar low consumption, then
the usage of such additional
consumption shall be determined, at
Landlord's election, either
(i) by a
survey performed by a reputable consultant
selected by Landlord (and paid for by Tenant when such
additional consumption is proven), or
(ii)
by separate meter in the Premises to be installed,
maintained and read by Landlord at Tenant's sole expense.
Section 8.03. Failure to furnish, or any
stoppage of, the services provided for
in Article 7 above and in this Article 8
resulting from any cause will not make
Landlord liable in any respect for damages
to either person, property, or
business, nor be construed as an eviction
of Tenant, nor entitle Tenant to any
abatement of Rental, nor relieve Tenant
from its obligations under this Lease.
Landlord will, with reasonable diligence,
repair any malfunction of the Building
Improvements or facilities, but Tenant will
have no claim for rebate, abatement
of Rental, or damages because of any
malfunctions or interruptions in service.
ARTICLE 9
USE
The Premises shall be used for general
office purposes, and for no other purpose
and Tenant agrees to use and maintain the
Premises in a clean, careful, safe,
lawful, and proper manner.
ARTICLE 10
LAWS, ORDINANCES AND REQUIREMENTS OF PUBLIC AUTHORITIES
Tenant shall, at its sole expense,
(i) comply
with all laws, orders, ordinances, and
regulations of federal, state, county, and municipal
authorities having jurisdiction over the Premises,
(ii)
comply with any direction made pursuant to law of any
public officer or officers requiring abatement of any
nuisance, or imposing any obligation, order, or duty upon
Landlord or Tenant arising from Tenant's use of the Premises
or from conditions which have been created by or at the
insistence of Tenant or required by reason of a breach of any
of Tenant's obligations hereunder, and
(iii)
indemnify Landlord and hold Landlord harmless from
any loss, cost, claim, or expense which Landlord may incur or
suffer by reason of Tenant's failure to comply with its
obligations under clauses (i) or (ii) above. If Tenant
receives written notice of violation of any such law, order,
ordinance, or regulation, it shall promptly notify Landlord
thereof.
ARTICLE 11
OBSERVANCE OF RULES AND REGULATIONS
8
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Exhibit 10.75
Tenant and its employees, agents, visitors,
and licensees shall observe
faithfully and comply strictly with all
Rules and Regulations attached to this
Lease (Exhibit F). Landlord shall at all
times have the right to make reasonable
exchanges in and additions to such Rules
and Regulation. Any failure by Landlord
to enforce any of the Rules and Regulations
now or hereafter in effect, either
against Tenant or any other Tenant in the
Building, shall not constitute a
waiver of any such Rules and Regulations.
Landlord shall not be liable to Tenant
for the failure or refusal by any other
Tenant, guest, invitee, visitor, or
occupant of the Building to comply with any
of the Rules and Regulations, but
Landlord shall, after receipt of notice,
take reasonable action to assure
compliance.
ARTICLE 12
ALTERATIONS
Section 12.01. Tenant may not, at any time
during the Term, without Landlord's
prior written consent (which consent shall
not be unreasonably withheld), make
any alterations to the Premises. All
alterations shall be made at Tenant's
expense, either by Tenant's contractors
which have been approved in writing by
Landlord, or at Landlord's option, by
Landlord's contractors on terms reasonably
satisfactory to Tenant, including a fee of
15% of the actual costs to Landlord
for performing such work to cover
Landlord's overhead.
Section 12.02. All Leasehold Improvements
(whether Building Standard or
Non-Building Standard), alterations, and
other physical additions made or
installed by or for Tenant in or to the
Premises shall be and remain Landlord's
property, except Tenant's furniture,
furnishings, personal property, and
moveable trade fixtures and shall not be
removed without Landlord's written
consent.
ARTICLE 13
LIENS
Tenant shall keep the Premises, the
Building, and the property on which the
Building is located, free from any liens
arising from any work performed,
materials furnished, or obligations
incurred by or at the request of Tenant.
Nothing contained in this Lease shall be
construed as Landlord's consent to any
performance of labor or furnishing of any
materials for any specific
improvements, alteration, or repair of, or
to, the Premises, that would result
in any liens against the Premises or
liability of the Landlord. If, based upon
acts of Tenant, any lien is filed against
the Premises, the Building, the
Property on which the Building is located,
or Tenant's Leasehold interests
therein, Tenant shall discharge same within
10 days after its filing. If Tenant
fails to discharge such lien within such
period, then, in addition to any other
right or remedy of Landlord, Landlord may,
at its election, discharge the lien
by either paying the amount claimed to be
due, obtaining the discharge by
deposit with a court or a title company, or
by bonding. Tenant shall pay on
demand any amount paid by Landlord for
reasonable attorneys' fees and other
legal expenses of Landlord incurred in
defending any such action or in obtaining
the discharge of such lien, together with
all necessary disbursements in
connection therewith, to double the amount
of the lien claim plus a sufficient
amount to cover any penalties, interest,
attorneys' fees, court costs, and other
legal expenses resulting from such contest.
This bond shall name Landlord and
such other parties as Landlord may direct
as beneficiaries thereunder.
ARTICLE
14
ORDINARY REPAIRS
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Exhibit 10.75
Tenant shall, at all times during the Term
hereof and at Tenant's sole cost and
expense, keep the Premises and every part
thereof in good condition and repair,
ordinary wear and tear, fire and other
casualty excepted. Subject to Article 20,
section 20.02 herein, Tenant shall, at the
end of the term hereof, surrender the
Premises, as repaired, to Landlord in the
same condition as when received,
ordinary wear and tear excepted. If Tenant
fails to make such repairs promptly,
Landlord may, at its option, make such
repairs, and Tenant shall pay Landlord on
demand Landlord's actual costs in making
such repairs plus a fee of (15%) to
cover Landlord's overhead.
ARTICLE 15
INSURANCE
Section 15.01. Tenant shall, during the
Term, at its sole expense, keep in
force, with Tenant, Landlord, and the
mortgagees and ground lessors of Landlord
named as additional insured thereunder
(except with respect to Worker's
Compensation coverage) all as their
respective interests may appear, the
following insurance:
(a) All Risk
Insurance (including fire, extended
coverage, vandalism, malicious mischief, extended perils,
sprinkler leakage and debris removal) upon property of every
description and kind owned by Tenant and located in the
Building or for which Tenant is legally liable or installed by
or on behalf of Tenant including, without limitation,
fittings,
installations, fixtures, removable trade fixtures,
Non-Building Standard Leasehold Improvements (as defined in
Exhibit C), and alterations, in an amount not less than the
full replacement cost thereof. If there is a dispute as to the
amount which comprises full replacement cost, the decision of
Landlord or the mortgagees of Landlord shall be conclusive and
binding.
(b) Commercial
liability insurance coverage to
include death, personal injury, bodily injury (not less that
$1,000,000 limits), broad form property damage (not less than
$1,000,000 limits), fire sprinkler hazard, operations hazard,
owner's protective coverage, contractual liability, and
products and completed operations liability, with combined
single liability limits not less than $1,000,000. Such
coverage shall insure against all liability of Tenant and its
authorized representatives and visitors arising out of, and in
connection with, Tenant's use or occupancy of the Premises.
(c) Worker's
Compensation and Employer's
Liability Insurance, with a waiver of subrogation endorsement,
in form and amount satisfactory to Landlord.
(d) Any other
form or forms of insurance as
Tenant or Landlord or the mortgagees of Landlord may
reasonably require from time to time in form, in amounts, and
for insurance risks against which a prudent Tenant of a
comparable size and in a comparable business would protect
itself.
All policies shall be issued by insurers
with a Best's Insurance Reports rating
of A or better and shall be in form
satisfactory to Landlord. Tenant agrees that
certificates of insurance on the Landlord's
standard form, or certified copies
of each such insurance policy, naming
Landlord and its mortgagees as additional
insured, will be delivered to Landlord not
later than 5 days prior to the date
that Tenant takes possession of any part of
the Premises. All policies shall
contain an undertaking by the insurers to
notify
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Exhibit 10.75
Landlord and the mortgagees of Landlord in
writing, by Registered U.S. Mail, not
less than 30 days before any material
change, reduction in coverage,
cancellation, or other termination thereof.
All insurance shall be primarily as
to Landlord and not participating with any
other available insurance. So long as
Tenant is not in default, proceeds of
Tenant's insurance shall be available to
repair or replace the insured fixtures and
equipment.
Section 15.02. During the Term, Landlord
shall insure the Building (but
excluding Non-Building Standard Leasehold
Improvements and any other property
which Tenant is obligated to insure under
Section 15.01 hereof) against damage
by fire and standard extended coverage
perils in an amount equal to the full
replacement cost thereof, and shall provide
public liability insurance in such
amounts and with such deductions as
Landlord considers appropriate. Landlord
may, but shall not be obligated to, take
out and carry any other form or forms
of insurance as it or Landlord's mortgagees
may reasonably determine
appropriate. Notwithstanding any
contribution by Tenant to the cost of insurance
premiums, as provided herein, Tenant
acknowledges that