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Rent • The first semiannual rental installment is in the amount of. $592,050. Thereafter, the Lessee agrees to pay rental for the. Leased Premises in equal semiannual installments of $660,000 through and including January 28, 2005, and thereafter in equal semiannual installments of $1,600,000 through and including January 28, 2019. The first semiannual rental installment will be due on the later of (i) the day that the Leased Premises are complete and ready for use, or (ii) January 28, 1996. Thereafter, rental will be payable in advance in semiannual installments for the following six-month period on each July 28 and January 28. The last semi-annual rental payment due before the expiration of the Lease will be adjusted to provide for rental at the rate specified above from the date such installment is due to the date of expiration of the Lease. All rentals payable under the terms of the Lease will be paid by the Lessee to the Trustee. The Lease provides that the Lessee also will pay any taxes and assessments in connection with the Leased Premises, and all costs of maintenance, operation and use thereof, so that all rent paid will be net to the Authority. i and all expenses in connection with the Leased Premises will be the responsibility of the Lessee. Insurance The Lessee, at its own expense, will keep the Leased Premises insured against physical loss or damage in an amount at least equal to the greater of the full replacement cost of the Leased Premises and the option to purchase price (see "Option to Purchase"), with such exceptions as are ordinarily required by insurers of similar properties. Blanket property insurance may be used if certain conditions in the Lease are satisfied. The Lessee will also, at its own expense, maintain rent or rental value insurance in an amount equal to the full rental value of the Leased Premises for a period of two years against physical loss or damage. Damage and Destruction of Leased Premises • The Lease provides that, in the event the Leased Premises are partially or totally damaged or destroyed so as to render the same unfit, in whole or part, for its intended use: (i) it will then be the obligation of the Authority to restore and reconstruct the Leased Premises as promptly as may be done, unavoidable strikes and other causes beyond the control of the Authority excepted; provided, the Authority will not be obligated to restore or reconstruct the Leased Premises if the amount of the proceeds received from the insurance provided for in the Lease. plus other money available therefor are insufficient for such purpose, or if the work cannot be completed within the period covered by rental value insurance; and (ii) the rent will be abated pro rata for the period during which the Leased Premises or any part thereof is unfit for its intended use. If the Authority is not obligated to restore and reconstruct the Leased Premises pursuant to the provisions described above, the insurance proceeds must be applied to the option to purchase price (see "Option to Purchase"). In such circumstances, proceeds of insurance will be used for extraordinary redemption of Bonds without premium. Furthermore. in certain circumstances, the Authority may direct application of inc~*'ance proceeds to the redemption of Bonds at the then current redemption price. See "SUMMARY OF CERTAIN LEGAL DOCUMENTS-- Indenture--Insurance--Use of Proceeds from Insurance. " Option to Purchase The Lessee has the right and option, on any rental payment upon 30 days' written notice, to purchase the Leased Premises at a price equal to the amount required to enable the Authority to redeem the Bonds, pay the costs thereof, and liquidate the Authority if it is to be liquidated. In the event the Lessee has not exercised its option to purchase the Leased Premises, then upon expiration of the Lease and full performance by the Lessee of its obligations under the Lease, the Leased Premises will be conveyed by the Authority to the Lessee. • C-2