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1 EQUIPMENT LEASE AGREEMENT THIS EQUIPMENT LEASE AGREEMENT (this "Lease") is made as of the day of , 2014, by and between the SOUTH BEND REDEVELOPMENT COMMISSION ("Lessor"), organized and existing under Indiana Code 36-7-14, and UNIVERSITY OF NOTRE DAME DU LAC, an Indiana nonprofit corporation having its principal place of business in Notre Dame, Indiana ("Lessee"). RECITALS A. Lessor, the governing body of the City of South Bend, Indiana, Redevelopment District and the City of South Bend, Indiana, Department of Redevelopment, exists and operates under the provisions of Indiana Code Section 36-7-14, as amended from time to time (the "Act"). B. Lessor desires to foster redevelopment and economic development within the City of South Bend, Indiana (the "City"). C. Lessee is an institution of higher education which, among other things engages in various scientific research projects. D. Lessee desires to lease upon construction a building and the surrounding real estate (the "Facility")to be located within such real estate commonly known as Ignition Park and the Airport Economic Development Area of the City (the "Area") and to develop, equip and operate at the Facility a state-of-the-art gas turbine research facility to be known as "Notre Dame Turbomachinery Facility" (collectively, the "Project") E. In order to more fully develop and complete the Project,Lessee requires certain equipment, more particularly described in the attached Exhibit A (the "Equipment") to be used in connection with the Project. F. Lessor has acquired the Equipment, at a cost not exceeding Five Million Five Hundred Thousand ($5,500,000), from tax increment finance revenues ("TIF Revenues") from the Area. G. As a material inducement for Lessor to enter into this Lease upon the terms provided herein, and in connection with that certain Economic Development Agreement ("Development Agreement"), by and between Lessor and Lessee, the Lessee shall (i) upon delivery of the Equipment, prepay to the Lessor any rent due and owing under the Lease, not to exceed Two Million Seven Hundred Fifty Thousand and 00/100 Dollars ($2,750,000.00); (ii)promptly proceed with the Project by negotiating a lease with a landlord for the project site, and (iii) will create 57 new jobs within St. Joseph County, Indiana, with expected average hourly wages between Eighteen Dollars ($18) per hour and Twenty-Eight Dollars ($28) per hour. H. In connection with the foregoing, Lessee now desires to lease the Equipment from Lessor, and Lessor now desires to lease the Equipment to Lessee, upon the terms and subject to the conditions set forth in this Lease.