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The City and the Authority have agreed and determined that the Base Rental payments shown in the Base Rental Payment Schedule set forth in the Lease represent the fair rental value of the Leased Property. In making such determination, consideration was given to the costs of the Leased Property, the fair market value thereof, the other obligations of the parties under the Lease, the uses and purposes which may be served by the Leased Property and the benefits therefrom which will accrue to the City, its residents and the general public. Each installment of Base Rental and Additional Rent payable hereunder shall be paid in lawful money of the United States of America to or upon the order of the Authority at the office of the Trustee. To the extent permitted by law, any such installment of Base Rental or Additional Rental accruing hereunder which shall not be paid when due shall bear interest at the rate of twelve per cent (12%)per annum, or such maximum lesser rate of interest as may be permitted by law. All such delinquent installments of Base Rental and the interest thereon shall be deposited in the Revenue Fund. All such delinquent installments of Additional Rental and interest thereon shall be paid to the order of the Authority. Notwithstanding any dispute between the Authority, or the Trustee and the City, the City shall make all rental payments when due hereunder without deduction or offset of any kind and shall not withhold any rental payments pending the final resolution of such dispute. Additional Rental The City will pay to the Authority as Additional Rental such amounts in each year as are required by the Authority for the payment in full of all costs and expenses incurred by the Authority, and the Trustee in connection with the execution, performance or enforcement of the Lease or any assignment of the Lease, of the Indenture and of the lease of the Leased Property to the City, including but not limited to payment of all fees, costs and expenses and all administrative costs of the Authority and the Trustee in connection with the Leased Property, the Project, the Lease, the Ground Lease, and the Indenture and all taxes, assessments and governmental charges of any nature whatsoever levied or imposed by any governmental authority against the Authority, the Leased Property, the Project, or the rentals and the other payments required to be made by the City. Such Additional Rental shall be billed to the City by the Authority, or the Trustee from time to time, together with a statement certifying that the amount so billed has been paid by the Authority, or the Trustee for one or more of the items above described, or that such amount is then payable by the Authority, or the Trustee for one or more of such items, and all amounts so billed shall be due and payable by the City within thirty (30) days after receipt of each bill therefor by the City. Insurance The City will procure and maintain or cause to be maintained throughout the term of the Lease for the Leased Property insurance against the following risks in the following respective amounts: (1) insurance against loss or damage to the Leased Property or such structure or item of furniture or equipment caused by fire, lightning, or earthquake, with an extended coverage endorsement and vandalism and malicious mischief insurance and sprinkler system leakage insurance and boiler insurance, which such extended coverage insurance shall, as nearly as practicable, cover loss or damage by explosion, windstorm, riot, aircraft, vehicle damage, smoke and such other hazards as are normally covered by such insurance; provided that earthquake coverage shall be required with respect to all City property in the amount of$50,000,000 (subject to the terms set forth in the City's existing policy) or such greater amount or is commercially reasonable and prudent to obtain; subject, however, to the requirement in each instance that such earthquake insurance be available from reputable insurers at commercially reasonable rates. In the event the City is unable to obtain earthquake coverage on any Leased Property which it previously has maintained, the City will promptly so notify all rating agencies then rating the Bonds. The insurance required by the Lease will be in an amount equal to the lesser of (i) the replacement cost (without deduction for depreciation) of improvements located or to be located on the Leased Property, or (ii) the principal amount of the Outstanding Bonds (except that such insurance may be subject to deductible clauses of not to exceed five percent (5%) of the amount of any one loss); A-19