Approving a Lease for the St Joseph/Wayne Parking Facility

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Section 3. Rental Payments. (a) During the term of this Lease, the Lessee agrees to pay rental for said premises at the rate of Five Hundred Twenty Thousand Dollars ($520,000) per year. Such Rental shall be paid from the Parking Garage Principal and Interest Account of the Redevelopment District Bond Fund. All rentals payable under the terms of this Lease shall be paid to Trustee or to such other bank or trust company as may from time to time succeed Trustee under the Trust Agreement. All payments so made shall be considered as payments to the Authority of the rentals payable hereunder. Lessee shall receive a credit on such rental payment in an amount equal to the amount then in the South Bend Redevelopment Authority Parking Garage Facility Sinking Fund created by Section 3. 02 of the Trust Agreement. The Lessee shall also receive credit for any Bond maturing within seven (7) days of the date of the lease rental payment, at the face value thereof, which the Lessee acquires and delivers to Trustee as a part of its lease rental payment; (b) As additional rental the Lessee agrees to pay all fees, charges and reimbursement of expenses of Trustee under the Trust Agreement and all prudent charges and expenses of the Authority incurred in the performance of its obligations hereunder. Section 4. Rental Payment Dates. The first rental installment shall be due on the day that the Garage to be erected and/or improved on the premises is completed and ready for occupancy, or December 28, 1989, whichever is later. If completion is later than December 28, 1989, the first installment shall be in an amount which provides for rental at the yearly rate specified in Section 3 from the date of completion until the first June 28 or December 28 following such date of completion. Thereafter such rentals shall be payable in advance in semiannual installments of Dollars ($ ) on June 28 and December 28 of each year. The last semiannual rental payment due before the expiration of this Lease shall be adjusted to provide for rental at the yearly rate specified above from the date such installment is due to the date of the expiration of this Lease. After the sale of the Bonds issued by the Authority to pay the cost of the Garage, including the acquisition of the site thereof and other expenses incidental thereto, the annual rental 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 a bond maturity date (bond year) on such Bonds plus $2,000, 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 said Bonds, and such endorsement shall be recorded as an addendum to this Lease. -3-