<PAGE>
Exhibit 10.1
OFFICE LEASE AGREEMENT
BASIC LEASE INFORMATION
1. Date: August 10, 2005
2. Landlord: Old Gettysburg Associates
II
3. Tenant: Select Medical Corporation
4. Guarantor: None
5. Building: 4720 Old Gettysburg Road
6. Premises: Suites 103-104-201B-202
7. Commencement Date: See 21
8. Expiration Date: 60 months after
commencement date
9. Rentable Area of the Building: Approx.
42,987 Rentable square feet
10. Rentable Area of the Premises: Approx.
8,615 Rentable square feet
11. Tenant's Proportionate Share 20%
12. Initial Annual Base Rental: Suite
103/104 - $86,617.37
Suite 201B - $23,610.44 Suite 202 - $58,712.34
13. Initial Annual Base Rental Rate: $19.61
per Rentable square foot
14. Annual Base Rental Increase
(cumulative) 3 %
15. Fiscal Year: Twelve Months ending
December 31
16. Security Deposit: none payable at the
time the Lease is signed. (Article
#26)
17. First Rent Check ________ payable at
the time the Lease is signed. (Article
#26) Suite
103/104 - $7,218.11 Suite 201B - $1,967.54 Suite - $4,892.70
18. Broker: None
19. Landlord's Address for Notices: Old
Gettysburg Associates II
c/o Select Capital Commercial Properties
4718 Old Gettysburg Road, Suite 405
Mechanicsburg, PA 17055
Attention: John M. Ortenzio
1
<PAGE>
Exhibit 10.1
20. Tenant's Address for Notices: Select
Medical Corporation
4720 Old Gettysburg Road
Mechanicsburg, PA 17055
Attention: General Counsel
21. Other Terms and Conditions:
Suite 103-104
Commencement date August 1, 2005
Suite 201B
Commencement date August 1, 2005
Suite 202
Commencement date August 1, 2005
2
<PAGE>
Exhibit 10.1
Exhibits A-F are part of this Lease,
identified as follows:
Exhibit A, Description of
Premises
Exhibit B, Description of
Leasehold Improvements/Finish Schedule
Exhibit C, Description of
Parking Rights
Exhibit D, Security
Card/Key Access
Exhibit E, Rules and
Regulations
Exhibit F, Deleted
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
By: SELECT CAPITAL COMMERCIAL PROPERTIES, INC.
Its general partner
WITNESS: /s/ Molly Fidler
By: /s/ John M. Ortenzio
_______________________
_________________________________
John M. Ortenzio,
President
TENANT:
SELECT MEDICAL CORPORATION
WITNESS: /s/ Molly Fidler
By: /s/ Michael E. Tarvin
________________________
_________________________________
Michael E. Tarvin,
Senior Vice President
3
<PAGE>
Exhibit 10.1
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
<S>
<C>
ARTICLE 1
PREMISES.............................................................................
5
ARTICLE 2
TERM.................................................................................
5
ARTICLE 3 DELIVERY OF THE PREMISES TO
TENANT...................................................
6
ARTICLE 4 ACCEPTANCE OF THE PREMISES AND
BUILDING BY TENANT....................................
6
ARTICLE 5
RENTAL...............................................................................
6
ARTICLE 6 OPERATING
EXPENSES...................................................................
7
ARTICLE 7 SERVICES BY
LANDLORD.................................................................
7
ARTICLE 8
UTILITIES............................................................................
8
ARTICLE 9
USE..................................................................................
9
ARTICLE 10 LAWS, ORDINANCES AND
REQUIREMENTS OF PUBLIC AUTHORITIES.............................
9
ARTICLE 11 OBERVANCE OF RULES AND
REGULATIONS..................................................
10
ARTICLE 12
ALTERATIONS.........................................................................
10
ARTICLE 13
LIENS...............................................................................
10
ARTICLE 14 ORDINARY
REPAIRS....................................................................
11
ARTICLE 15
INSURANCE...........................................................................
11
ARTICLE 16 DAMAGE BY
FIRE......................................................................
13
ARTICLE 17
CONDEMNATION........................................................................
14
ARTICLE 18 ASSIGNMENT AND
SUBLETTING...........................................................
14
ARTICLE 19
INDEMNIFICATION.....................................................................
15
ARTICLE 20 SURRENDER OF
PREMISES...............................................................
15
ARTICLE 21 ESTOPPEL
CERTIFICATES...............................................................
16
ARTICLE 22
SUBORDINATION.......................................................................
16
ARTICLE 23
PARKING.............................................................................
17
ARTICLE 24 DEFAULT AND
REMEDIES................................................................
17
ARTICLE 25
WAIVER..............................................................................
19
ARTICLE 26 SECURITY
DEPOSIT....................................................................
19
ARTICLE 27 ATTORNEYS FEES AND LEGAL
EXPENSES...................................................
19
ARTICLE 28
NOTICES.............................................................................
20
ARTICLE 29
MISCELLANEOUS.......................................................................
20
EXHIBIT "A" FLOOR
PLAN.........................................................................
24
EXHIBIT "B" LEASEHOLD IMPROVEMENTS/FINISH
SCHEDULE.............................................
25
EXHIBIT "C" PARKING
RIGHTS.....................................................................
26
EXHIBIT "D" SECURITY CARD/KEY
ACCESS...........................................................
27
EXHIBIT "E" RULES AND
REGULATIONS..............................................................
28
EXHIBIT "F" INTENTIONALLY LEFT
BLANK...........................................................
31
</TABLE>
4
<PAGE>
Exhibit 10.1
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. 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 A AND B 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.
5
<PAGE>
Exhibit 10.1
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 A AND
B 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 A AND B 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
and or indicated in EXHIBIT B 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 punch list
remaining
on EXHIBIT A AND B 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
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 payments, Tenant agrees to pay a late
charge for special handling equal to
5% of the Rental due Rental
6
<PAGE>
Exhibit 10.1
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 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, Parking
Rental (as defined in EXHIBIT C 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
Intentionally left blank
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 will be provided 5 nights a week to
Tenants as is customary in comparable office buildings in the
greater Harrisburg area; and
(c)
utility services
provided for in Article 8 below.
7
<PAGE>
Exhibit 10.1
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
(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. 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
therefore 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. 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, personal
computers, and other normal office machines
of similar low electrical
consumption, all of which power shall be
paid for by Landlord . 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.
8
<PAGE>
Exhibit 10.1
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 normal office
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
9
<PAGE>
Exhibit 10.1
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
Tenant and its employees, agents, visitors,
and licensees shall observe
faithfully and comply strictly with all
Rules and Regulations attached to this
Lease (EXHIBIT E). Landlord shall at all
times have the right to make reasonable
changes 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
10
<PAGE>
Exhibit 10.1
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
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
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
B), 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.
11
<PAGE>
Exhibit 10.1
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 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
it has no right to receive any
proceeds from any insurance policies
carried by Landlord. Landlord will not be
required to carry insurance of any kind on
any Non-Building Standard Leasehold
Improvements, on Tenant's furniture or
furnishings, or on any of Tenant's
fixtures, equipment, improvements, or
appurtenances under this Lease; and
Landlord shall not be obligated to repair
or replace same.
Section 15.03 Tenant shall not keep in the
Premises any article which may be
prohibited by any reasonable insurance
policy periodically in force covering the
Building. If Tenant's occupancy results in
any increase in premiums for the
insurance carried by Landlord, Tenant shall
pay any such increase in premiums as
additional Rental within 10 days after
being billed therefore. Tenant shall
promptly comply with all reasonable
requirements of the insurance authority or
any present or future insurer relating to
the Premises and the Building.
Section 15.04 If any of Landlord's
insurance policies shall be cancelled or
cancellation shall be threatened or the
coverage hereunder reduced or threatened
to be reduced, or if the premiums on any of
Landlord's insurance policies are
increased or threatened to be increased, in
any way because of Tenant's use of
the Premises and, if Tenant fails to remedy
the cause thereof within 48 hours
after notice, Landlord may, at its option,
either terminate this Lease or enter
upon the Premises and attempt to remedy
such condition, and Tenant shall
promptly pay the cost thereof to Landlord
as additional Rental. Landlord shall
not be liable for any damage or injury
caused to any property of Tenant or of
others located on the Premises resulting
from such entry. If Landlord is unable
to remedy such condition, then Landlord
shall have all of the remedies provided
for in this Lease in the event of a default
by Tenant.
Section 15.05 All policies covering real or
personal property which either party
obtains affecting the Premises shall
include a clause or endorsement denying the
insurer any rights of subrogation against
the other party to the extent rights
have been waived by the insured before the
occurrence of injury or loss.
Landlord and Tenant hereby mutually waive
any rights of recovery against the
other for injury or loss due to hazards
covered by insurance containing such a
waiver of subrogation clause or endorsement
to the extent of the injury or loss
covered thereby.
12
<PAGE>
Exhibit 10.1
ARTICLE 16
DAMAGE BY FI