Approving lease for public improvements between Redevelopment Authority and Redevelopment Commission

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in lieu thereof, this Lease shall terminate on the date of such taking and any rent payable by the Lessee hereunder shall be prorated and paid to the date of such taking. 4.02 Proceeds of Total Condemnation. In the event of any such total taking or Constructive Total Taking and the termination of this Lease, the Condemnation Proceeds applicable to the Project shall be set aside for the benefit of the Authority for purposes of redemption of any outstanding Notes. Any proceeds in excess of the amount necessary to redeem the Notes shall be the properly of the Lessee. Nothing herein contained shall impair the right of any sublessee to the full award, compensation or damages payable as an award for the loss of improvements or for moving expenses. 4.03 Partial Condemnation. In the event of a taking of the Project that is less than a Constructive Total Taking, this Lease shall not terminate or be affected in any way. The Condemnation Proceeds shall be the property of the Lessee. SECTION 5: NET LEASE. It is expressly understood and agreed that this Lease shall be what is known as a net lease (i_e., the rent being absolutely net to the Authority and that all other expenses in connection with the Project of any nature whatsoever shall be those of the Lessee) and that during the lease term the Lessee shall be obligated to pay as its expenses without reimbursement from the Authority all costs of taxes and assessments, if any, and maintenance, operation and use in connection with or relating to the Project, including but not limited to all costs and expenses of all services, repair or replacement of all parts of the Project. SECTION 6: NONLIABILITY of AUTHORITY. The Authority shall not be liable for damage caused by hidden defects or failure to keep the Project in repair. The Authority shall not be liable for any injury to the Lessee or any sublessee of the Lessee or any other person which injury occurs on, in or about the Project howsoever arising. The Authority shall not be liable for damage to the Lessee's property or to the property of any sublessee of the Lessee or of any other person which may be located in, upon or about the Project. SECTION 7: ALTERATIONS. Lessee or its sublessee shall have the right, without the consent of the Authority, to make all alterations, modifications and additions and to do all improvements it deems necessary or desirable to the real property which constitutes the Project, which do not reduce the rental value of the Project. SECTION 8: SUBLEASES. In the event of the termination of this Lease from any cause whatsoever (including its expiration or the voluntary surrender thereof by Lessee), and while any sublease allowed under this Lease is in full force and effect, such termination shall not act as a merger, and Lessee's interest as sublessor in each of said subleases shall be deemed automatically assigned, transferred, and conveyed to the Authority. From and after such termination, the Authority (as well as any such sublessee) shall be bound by the provision of each of the subleases, then in full force and effect, on the part of Lessee (as sublessor) to be performed thereunder, and each of the sublessees shall be deemed thereupon (and without further act) to have been turned over or assigned by operation of law to the Authority. It is the intention hereof to provide that the termination of this Lease while any such sublease is in full force and effect shall not in any way, by reason thereof, ::ODMA\PCDOCS\SBDOCS 1\32001\1 -4-