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ARTICLE X <br />PREPAYMENT OF LEASE PAYMENTS <br />Section 10.1. Prepayment Option. The Authority hereby grants an option to the City <br />to prepay the principal component of the Lease Payments in whole or in part, on any <br />Interest Payment Date, on or after November 1, 2010, by paying a prepayment amount equal <br />to the principal amount of Lease Payments to be prepaid (not less than $1,000,000 in the case <br />of a partial prepayment), together with the premium set forth below (expressed as a <br />percentage of the total principal amount prepaid), and accrued interest to the date fixed for <br />prepayment. <br />Redemption <br />Redemption Date Premium <br />November 1, 2010, May 1, 2011, November 2.0% <br />1, 2011, and May 1, 2012 <br />November 1, 2012, May 1, 2013, November 1.5 <br />1, 2013, and May 1, 2014 <br />November 1, 2014, May 1, 2015, November 1.0 <br />1, 2015, and May 1, 2016 <br />November 1, 2016, and each May 1 and 0.0 <br />November 1 thereafter <br />Said option shall be exercised by the City by giving written notice to the Authority <br />and the Assignee of the exercise of such option at least sixty (60) days prior to said date. <br />Such option shall be exercised by depositing with said notice cash in an amount sufficient <br />to pay the aggregate unpaid principal component of the Lease Payments on said Interest <br />Payment Date as set forth in Exhibit D hereto, together with any Lease Payments then due <br />but unpaid and any accrued interest to such prepayment date. <br />Section 10.2. Mandatory Prepayment From Net _Proceeds of Insurance. Title <br />Insurance or Eminent Domain. The City shall be obligated to prepay the Lease Payments, in <br />whole on any date or in part on any Interest Payment Date, from and to the extent of any Net <br />Proceeds of an insurance, title insurance or condemnation award with respect to the <br />Property. The City, the Authority and the Assignee hereby agree that such Net Proceeds <br />shall be applied first to the payment of any delinquent Lease Payments, and thereafter shall <br />be credited towards the City's obligations under this Section 10.2. Lease Payments due after <br />any such partial prepayment shall be in the amounts set forth in a revised Lease Payment <br />schedule which shall be provided by, or caused to be provided by, the Assignee to the City <br />and which shall represent an adjustment to the schedule set forth in Exhibit D attached <br />hereto taking into account said partial prepayment. <br />-21- <br />