Approving a lease for certain land & public improvements South Bend Redevelopment Authority South Bend Redevelopment Commission

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of this Lease shall terminate 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, (iii) to refund such refunding obligations, or (iv) to improve the leased property. The date the 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 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 Airport Economic Development Area Public Improvement Project Principal and Interest Account 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 Trust Agreement. All payments so made shall be considered as payments to the Authority of the • rentals payable hereunder. The Lessee shall receive credit for any Bond 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; (b) as additional rental the Lessee agrees to pay all fees, charges and reimbursement of expenses of the Trustee under the Trust Agreement and all prudent charges and expenses of the Authority incurred in the performance of its obl igations hereunder. Section 4. Rental Payment Dates and Amounts. The first semiannual rental installment in the amount of Nine Hundred Thousand Dollars ($900, 000) shall be due on the day that the Project is completed and ready for use, or January 28, 1992, whichever is later. If completion is later than January 28, 1992, the first installment shall be in an amount which provides for rental at the rate specified in Exhibit C for the semiannual period in which the 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 attached lease payment schedule at Exhibit C. The last seminannual rental payment due before the expiration of this Lease shall be adjusted to provide for rental at the rate specified in Exhibit C for the applicable -3- \rlhill\sthbnd\airport\lease;dsl;August 30, 1990