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LEASE AGREEMENT BETWEEN THE CITY OF SOUTH BEND AND PARKING FACILITIES OF SOUTH BEND, INC. In connection with the refinancing of bonds, the City of South Bend (City) sold the parking garage facilities as of June 1, 1978 to Parking Facilities of South Bend, Inc. , an Indiana not-for-profit corporation, (Corporation) and entered into an agreement to lease the facilities back. The lease runs through November, 2007 , at which time the outstanding bonds will be completely satisfied and the title will revert back to the City by gift of the Corporation. Throughout the term of the lease the City will have exclusive possession and control and will be responsible for maintaining and operating the parking facilities . The debt outstanding in the Corporation as of December 31, 1980 consists of two 1978 series and the original 1969 series . The 1978 series proceeds are invested in trust and will fully pay principal and interest on the Series 1969 Project bonds with a balance of $3, 100, 000 at December 31, 1980. 1978 series special obligation bonds outstanding of $750, 000 will be paid from trust investment interest earnings . The other 1978 series with a balance of $3 , 630, 000 will be serviced by the lease payments . The lease requires monthly rent payments to the trustee, St. Joseph Bank and Trust Company, for the account of the Corporation sufficient to service the 1978 series debt described above. The Trustee has projected that the City will be required to make payments in future years as follows : Annual Year Payment 1981 $ 217 ,456 1982 231, 563 1983 237 , 734 1984 238, 556 1985 241 , 595 1986 242 , 591 1987 - 1991 1 , 257 , 689 1992 - 1996 1 ,404, 815 1997 - 2001 1, 632, 296 2002 - 2007 None The payment schedule will be reviewed annually by the trustee and revised, if necessary.