No. 1506 approving a proposed lease between the SBRA and the SBRC for certain land and public improvements, approving preliminary plans, speccifications and cost estimates, setting a public hearing (Palais Royale)

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(b) _ The first semiannual rental installment for the Additional/Combined Project in the amount of Six Hundred Ninety-five Thousand and 00 /100 Dollars ($695,000.00) shall be due on the day that the Additional/Combined Project is completed and ready for use, or July 28, 1999, whichever is later. If completion is later than July 28, 1999, the first installment shall be in an amount which provides for rental at the rate specified in Exhibit D(2) for the semiannual period in which the Additional/Combined Project is completed and ready for use, prorated from the date of completion until the first January 28 or July 28 following such date of completion. Thereafter such rentals shall be payable in advance in semiannual installments on January 28 and July 28 of each year as provided for in the lease payment schedule attached hereto as Exhibit D(2). The last semiannual rental payment due before the expiration of this Lease shall be adjusted to provide for rental at the amount specified above for the applicable semiannual period prorated from the date such installment is due to the date of the expiration of this Lease (without taking into account any subsequent early termination of this Lease pursuant to Section 2 hereof). For purposes of this Lease, rental payments shall be allocable among the Original Project, the Additional Project, and the Combined Project as follows: (i) thirty percent (30 %) of the amount required to be paid under Section 4(a) hereof shall be allocable to the Original Project, as reflected on Exhibit DM; (ii) eighty percent (80 %) of the amount required to be paid under Section 4(b) hereof shall be allocable to the Additional Project, as reflected on Exhibit D(2); and (iii) the remaining amounts required to be paid under Sections 4(a) and 4(b) shall be allocable to the Combined Project as reflected in Exhibits D(1) and D(2). t After the sale of the Additional Bonds issued by the Authority to pay the cost of the Additional/Combined Project, the rental required to be paid pursuant to Section 4(b) shall be reduced as follows: the sum of the first and second semiannual rental installments and the sum of the third and fourth semiannual rental installments, and so on, shall be reduced to an amount equal to the multiple of One Thousand Dollars ($1,000) next highest to the highest sum of principal and interest due in any year ending on an Additional Bond maturity crate (Additional Bond Year) on such Additional Bonds plus Three Thousand Dollars ($3,000), payable in equal semiannual installments. Such amount of reduced annual rental shall be endorsed *on this Lease at the end hereof by the parties hereto as soon as the same can be done after the sale of the Additional Bonds, and such endorsement shall be recorded as an addendum to this Lease. In the case of the Additional/Combined Project, the Lessee will not take any action or fail 4 to take any action that would result in the loss of the exclusion from gross income for federal tax purposes of interest on the Additional Bonds pursuant to Section 103(a) of the Internal Revenue Code of 1986, as amended (the "Code "), as in effect on the date of delivery of the Additional Bonds, nor will the Lessee act in any manner which would adversely affect such exclusion. The Lessee further covenants that it will not make any investment or do any other act or thing during the period that any Additional Bond is outstanding hereunder which would cause any Additional -5-