Approving lease for public improvements between Redevelopment Authority and Redevelopment Commission

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terminate such sublease or militate against the rights of any such sublessee. The foregoing is further subject to the right of the Authority following any termination of this Lease to terminate any sublease which is in default (notice thereof, if any be required, having been given and the time for curing such default having expired), and to any other rights and remedies reserved to Lessee in any such sublease, and any other rights and remedies afforded to a lessor of real property against a defaulting lessee by law or in equity. The Authority will, at the request of Lessee, execute and deliver to any sublessee, or proposed sublessee, a document (a) reciting, in substance, that any default by Lessee under this Lease or any termination of this Lease thereby, or otherwise, before the natural expiration of the Term or of any extension of the Term shall not, by reason thereof, affect the rights of such sublessee or proposed sublessee while such sublease or proposed sublease is in full force and effect; and (b) agreeing that the subtenant shall not be disturbed in its possession and rights under the sublease so long as it is not in default of its obligations under the sublease and that the Authority shall assume the obligations to the subtenant under the sublease. SECTION 9: LIABILITY INSURANCE. The Lessee shall, at all times during the full term of this Lease, keep in effect, public liability and property damage insurance, insuring the Lessee, sublessees, and the Authority in amounts customarily carried for similar properties. Such insurance may be provided under the public liability self insurance program of the City of South Bend. SECTION 10: GENERAL INSURANCE PROVISIONS. All insurance policies required by Section 9, other than insurance provided under the public liability self insurance program of the City of South Bend, shall be with insurance companies rated B+ or better by A.M. Best Company (or a comparable rating service if A.M. Best company ceases to exist or rate insurance companies), and shall be countersigned by an agent of the insurer who is a resident of the State of Indiana, and such policies, or copies thereof, shall be deposited with the Authority. If, at any time, the Lessee fails to maintain insurance in accordance with Section 9, such insurance may be obtained by the Authority, and the amount paid for such insurance shall be added to the amount of rental payable by the Lessee under this Lease; provided, however, that the Authority shall not be under any obligation to obtain such insurance, and any action or non-action of the Authority in this regard shall not relieve the Lessee of any consequences of a default in failing to obtain such insurance. SECTION 11: GENERAL COVENANTS. The Lessee shall not assign this Lease. The Lessee covenants that, except for Permitted Encumbrances, it will not encumber the Project, or permit any encumbrance to exist thereon, and that it shall use and maintain the Project in accordance with the laws and ordinances of the United States of America, the State of Indiana, and all other proper governmental authorities. The Authority agrees that it will, at the request of the Lessee, execute and deliver to or upon the order of the Lessee such instrument or instruments as may be reasonably required by the Lessee in order to subject the Project, or the Authority's interest therein, to such encumbrances as shall be specified in such request and as shall be permitted by the provisions of this Section 11 or otherwise by the definition of "Permitted Encumbrances". SECTION 12: OPTION TO PURCHASE. The Authority hereby grants Lessee the right and option to purchase the Project (i) on any date if the Notes are not then currently redeemable or (ii) if the Notes aze currently redeemable, on such date as may be required pursuant to the terms of the Notes to currently redeem the Notes and upon written notice to the Authority sufficient to provide ::ODMA\PCDOCS\SBDOCS 1132001\t -5-