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REGULAR MEETING OCTOBER 24, 1977
<br />REGULAR MEETING RECONVENED (CONTINUED)
<br />The beginning date of said lease shall be established by an addendum executed by the
<br />parties hereto as soon as the same may be done after the satisfaction of the foregoing condition!
<br />as applicable and such addendum shall be recorded as an addition to this lease. With the ex-
<br />ception of easements, the Lessor hereby represents that it is possessed of, or will acquire a
<br />good and indefeasible estate and title to the above described assets, and Lessor warrants and
<br />will defend the same against all claims whatsoever, not suffered or caused by the acts or
<br />omissions of Lessee or its assigns.
<br />2. Semi - Annual Rental Payments. The Lessee agrees to pay rental for said premises at the
<br />rate of One Hundred Two Thousand One Hundred Eighty -six ($102,186.00) Dollars per year, during
<br />the term of this lease. To the extent that excess operating revenues are inadequate to finance
<br />the cost of extending the utility services, it is contemplated that Lessee will finance the
<br />cost of so extending the utility service with "other funds" pursuant to Clause 6. Rental pay-
<br />ments shall be made semi - annually for the preceding six (6) months period starting on the last
<br />day of the first six (6) month period. All rentals payable under the terms of this lease shall
<br />be paid by the Lessee to the Lessor at 1814 American National Bank Building, South Bend, Indiana
<br />46601, or to such other person /s, company, or corporation, or at such other place as the Lessor
<br />may designate in writing from time to time. All payments so made by the Lessee pursuant to any
<br />such designation shall be considered as payment to the Lessor of the rental payable hereunder.
<br />3. Taxes and Assessments. The Lessee shall pay as further rental for said premises all
<br />taxes and assessments levied against or on the leased property. Any and all such payments shall
<br />be made and satisfactory evidence of such payments in the form of receipts shall be furnished
<br />to the Lessor by the Lessee at least three (3) days before the last day upon which the same must
<br />be paid to avoid delinquency. In case the Lessee shall in good faith desire to contest the
<br />validity of any such tax or assessment, and shall so notify the Lessor, and shall furnish bond
<br />with surety to the approval of the Lessor, conditioned for the payment of the charges so desired
<br />to be contested, and all damage or loss resulting to the Lessor from the non - payment thereof
<br />when due, the Lessee shall not be obligated to pay the same until such contests shall have been
<br />determined.
<br />If, at any time, the Lessee fails to pay any such tax or assessment or fails to furnish
<br />evidence thereof as above provided, Lessor may, at its option, pay such tax or assessment, to-
<br />gether with all interest and penalties thereon, and any amount so paid, with interest thereon
<br />at the rate of seven (7 %) percent per annum shall be additional rental payable by the Lessee
<br />under this Lease and shall be payable on demand; provided, however, that the Lessor shall be
<br />under no obligation to pay any such tax or assessment and any action or non- action of the Lessor
<br />in this regard shall not relieve the Lessee of any consequence of its default.
<br />4. Restoration. In the event any part of the said utility facilities shall be partially
<br />or totally destroyed, whether by fire or any other casualty, so as to render the same unfit, in
<br />whole or part, for use and rendition of such utility services by the Lessee, it shall then be
<br />the obligation of the Lessor to restore and rebuild the facilities as promptly as may be done,
<br />unavoidable strikes and other causes beyond the control of the Lessor excepted; provided, however
<br />that the Lessor shall not be obligated to expend on such restoration or rebuilding more than
<br />the amount of the proceeds received by the Lessor from the insurance provided for in Clause 7
<br />hereof.
<br />If there is in force on the date of such partial or total destruction, insurance on the
<br />demised premises and the rental value thereof in accordance with the provisions -.of Clause 7
<br />hereof, the rent shall be abated from the time of such partial or total destruction until the
<br />time that the utility facilities are gain fit for operation. In the case of total destruction,
<br />the rental so abated shall be apportioned on a daily basis determined by dividing the annual
<br />rental provided for in Clause 2 hereof by the total number of days in the year or years that the
<br />facilities are unfit for operation. In the case of partial destruction, the rental shall be
<br />apportioned on the basis of income from the portion damaged.
<br />If, and so often as, rent abates under this provision, the term of this lease shall be ex-
<br />tended for a period of time equal to the period of time of the rent abatement; provided, however
<br />that in no event shall the term of this lease as so extended exceed a period of fifty (50) years
<br />The proceeds from the rental value insurance shall be paid to the Lessor and shall be credited
<br />by Lessor to the payment of rental owing from Lessee for such extended period or periods of the
<br />term.
<br />5. Alterations and Repairs. As additional rent, Lessee shall, at its own expense, during
<br />the full term of this Lease, keep the leased facilities and every part thereof in good condition
<br />and repair. Lessor shall have the right of access to the facilities, at reasonable .times, for
<br />the purpose of inspecting the same. Lessee will not permit any mechanic's or materialman's or
<br />other lien to stand against the leased facilities for any labor or material furnished Lessee in
<br />connection with work of any character performed on said facilities by or at the direction of
<br />Lessee.
<br />If, at any time, the Lessee fails to make necessary repairs, Lessor may, at its option,
<br />cause such repairs to be made, for which purpose it shall have free access to the facilities,
<br />any any amount so expended, with interest thereon at seven (70) percent per annum, shall be
<br />additional rental payable by the Lessee under this Lease and shall be payable on demand.
<br />6. Extension and Additions. Lessee shall be permitted at all times when there is no de-
<br />fault herein, to make extensions and construct additions in the area to be served by the said
<br />utility facilities as described on Exhibit A and are specifically authorized to expend for such
<br />additions and extensions "other funds" not generated from the income of the operation of the
<br />leased facilities. Said facilities shall be construed as merged with and made a part of the
<br />leased facilities, provided, however, that upon any default and subsequent surrender and return
<br />of the leased facilities to the Lessor as provided in Clause 12, Lessor shall have the right to
<br />obtain a full and clear title to the same (including any land and easements upon which the same
<br />are located) by the payment to the Lessee of twenty -five (250) percent of the gross income col-
<br />lected from the customers served by said additions and extensions for a period of one hundred
<br />twenty (120) months but not to exceed an amount equal to said "other funds" less applicable
<br />Systems Charges not subject to lease rental collected thereon.
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