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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the date the Additional/Combined Project is complete and ready for use, and ending on the day prior to such date at most twenty (20) years thereafter. However, the term of this Lease shall terminate as to (i) the Original/Combined Project; (ii) the Additional/Combined Project; or (iii) both; at the earlier of (a) the exercise of the option to purchase by Lessee and payment of the option price, or (b) the payment or defeasance of all obligations of Lessor incurred (i) to finance the cost of the leased property, (ii) to refund such obligations, or (iii) to refund such refunding obligations. The date that the Additional/Combined Project is complete and ready for use shall be endorsed on this Lease at the end hereof by the parties hereto as soon as the same can be done after such completion date and such endorsement shall be recorded as an addendum to this Lease. The Authority hereby represents that it is possessed of, or will acquire, a good and indefeasible estate in fee simple or an insurable right -of -way easement subject only to Permitted Encumbrances, to the above - described real estate, and the Authority warrants and will defend the same against all claims whatsoever not suffered or caused by the acts or omissions of the Lessee. Section 3. Rental Payments. (a) During the term of this Lease, the Lessee agrees to pay rental for said premises as set forth in Section 4 hereof. Such rental shall be paid from the Palais Royale Principal and Interest Account (in the case of the Original/Combined Project) and the Morris Performing Arts Center Principal and Interest Account (in the case of the Additional /Combined Project) of the Redevelopment District Bond Fund. All rentals payable under the terms of this Lease shall be paid to the Trustee or to such other bank or trust company as may from time to time succeed the Trustee under the applicable Trust Agreement. All payments so made shall be considered as payments to the Authority of the rentals payable hereunder. In the event rentals payable under the terms of this Lease shall discontinue for any reason in relation to either (i) the Original/Combined Project or (ii) the Additional/Combined Project, such discontinuation of rental payments shall not affect the obligation of the Lessee to continue to pay rentals on said components of the Project (or portions thereof) not affected by such discontinuation. The Lessee shall receive credit for any Bonds maturing within seven (7) days of the date of the lease rental payment, at the face value thereof, which the Lessee acquires and delivers to the Trustee as a part of its lease rental payment, which credit shall be allocated to the rental payment requirement relating either to the Original/Combined Project as set forth in Exhibit D(1) or to the Additional/Combined Project (as set forth in Exhibit D(2)) as appropriate; (b) as additional rental the Lessee agrees to pay all fees, charges and reimbursement of expenses of the Trustee under the Trust Agreements and all prudent charges and expenses of the Authority incurred in the performance of its obligations hereunder. Section 4. Rental Payment Dates and Amounts. (a) Rental installments in the amount of Ninety-Eight Thousand Five Hundred and 00 /100 Dollars ($98,500) which began on January 28, 1993, shall continue and be due on July 28 and January 28 of each year for the Original/Combined Project. 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) (see Exhibit D(1) hereto). 51