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8318 IRB Connally Implement(Published in the 10-30-73 RoveMtrl 3 A , 1973) 1. ORDINANCE NO. �3 I? AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY OF SALINA, KANSAS, TO ACQUIRE A TRACT OF LAND IN SALINE COUNTY, KANSAS, TOGETHER WITH THE EXISTING IMPROVEMENTS THEREON, FOR IN- DUSTRIAL DEVELOPMENT PURPOSES; AUTHORIZING THE PAYMENT OF THE COST OF IMPROVING, ENLARGING, CONSTRUCTING AND EQUIPPING INDUSTRIAL FACILITIES THEREON; AUTHORIZING AND DIRECTING THE ISSUANCE OF $265,000.00 PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS OF SAID CITY FOR THE PURPOSE OF PAYING THE COST OF PURCHASING, IM- PROVING, ENLARGING, CONSTRUCTING AND EQUIPPING SUCH INDUSTRIAL FACILITIES; PRESCRIBING THE FORM AND DETAILS OF SAID INDUSTRIAL DEVELOPMENT REVENUE BONDS; PROVIDING FOR THE COLLECTION, SEGREGATION AND APPLICATION OF THE REVENUES OF SUCH FACILITY FOR THE PURPOSES AUTHORIZED BY LAW; PLEDGING SAID FACILITY AND THE REVENUES FROM SAID FACILITY TO SECURE SUCH BONDS; PRO- VIDING FOR A TRUSTEE AND PRESCRIBING THE POWERS AND DUTIES OF SUCH TRUSTEE; AND PRESCRIBING THE FORM AND AUTHORIZING THE EXECUTION OF A LEASE AND AGREEMENT BY, BETWEEN AND AMONG SAID CITY AS -LANDLORD, THE HILL COMPANY, AS TENANT, AND CONNALLY IMPLEMENT SUPPLY CO., INC., AS GUARANTOR. 0 WHEREAS, the City of Salina, Kansas, a city of the first class, hereinafter sometimes referred to as the "City," desires to promote, stimulate and develop the general economic welfare and pros- perity of the City of Salina, Kansas, and its environs and thereby to further promote, stimulate and develop the general economic welfare and prosperity of the State of Kansas; and WHEREAS, pursuant to the provisions of K.S.A. Sections 12-1740 to 12-1749, inclusive, and all acts amendatory and supplemental thereof, said City is authorized to issue industrial development revenue bonds of the City, and it is hereby found and determined to be advisable and in the interest and for the welfare of the City and its inhabitants that ;ndustrial development revenue bonds of the City in the principal amount of $265,000.00 be authorized and issued, for the purpose of providing funds to pay the cost of acquiring certain real estate in Saline County, Kansas, together with the existing ?mpr„ve,,ent.^ th-ri^.on, and of _�ur:�-.,asinf , improving. ";:�.� 'r� , strutting and equipping industrial facilities thereon to be leased to The Hill Company, a Texas corporation, said lease to be fully guaranteed by Connally Implement Supply Co., Inc., a Texas corpor- ation, such real estate, buildings and equipment hereinafter sometimes referred to as the "Facility"; NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS: SECTION 1. That the City of Salina, Kansas, is hereby authorized to acquire the following described real estate situated in Saline County, Kansas, to wit: A tract of land lying in the Southwest Quarter (SW/4) of Section Fourteen (14), Township Fourteen (14) South, Range Three (3) West of the Sixth Principal Meridian in Saline County, Kansas, des- cribed as follows: from the southwest corner of said Southwest Quarter (SW/4), thence east on an assumed bearing of North 9010' East along the south line of said Southwest Quarter (SW/4) a distance of 1771 feet to a point on the east right-of-way line of U.S. 81 Highway Bypass ex- tended, thence North 0058145" East along said east right-of-way line and parallel with the east line of said Southwest Quarter (SW/4) a distance of 1309.5 feet to the Point of Beginning, thence North 9010' east parallel with south line of said Southwest Quarter (SW/4) a distance of 875.30 feet to a point on east line of said Southwest Quarter, said east line also being the west right-of-way line of the Missouri Pacific Railroad, thence South 0058'45" West along the east line of said Southwest Quarter (SW/4) a distance of 300 feet, thence South 9000' West parallel with the south line of said Southwest Quarter (SW/4) a distance of 875.30 feet to a point on the east right-of-way line of U.S. 81 Highway Bypass, thence North 0°58'45" East along said east right-of-way line a distance of 300 feet to the point of beginning, being the same land described in Saline County, Kansas Recorder deed book 172 page 242, an in- denture between the Salina Building Company, Inc. and John Deere Plow Company of Kansas City, subject to easements and restrictions of record, and to pay the cost of purchasing, improving, enlarging, constructing and equipping industrial buildings thereon, including a certain existing building thereon, in accordance with the provisions of the Lease and Agreement 2. 1 1 1 dated as of November 1, 1973, between said City and said The Hill Company, as Tenant, and Connally Implement Supply Co., Inc., as Guarantor, (sometimes referred to hereafter as the "Lease") hereinafter authorized, all at an amount which will not exceed the cost of $265,000.00 to said City. SECTION 2. That for the purpose of providing funds to pay the cost of acquiring said real estate and of purchasing, improving, enlarging, constructing and equipping said industrial buildings to be leased to The Hill Company, a Texas corporation, (sometimes referred to hereafter as the "Tenant"), there shall be issued and hereby are authorized and directed to be issued a series of Industrial Development Revenue Bonds, Series 11-1-73 , of the City of Salina, Kansas, in the principal amount of $265,000.00. Said bonds herein authorized, here- inafter sometimes referred to as the "Bonds" or the "Revenue Bonds," and all interest thereon shall be paid solely from the money and revenue received from the Facility and not from any other fund or source. SECTION 3. Said Industrial.Development Revenue Bonds, Series 11-1-73 , of the City of Salina, Kansas, shall consist of 53 bonds, numbered from 1 to 53, inclusive, each of said bonds being in denomination of $5,000.00. All of said bonds shall be dated November 1, 1973, and said bonds shall be numbered, and shall bear interest and become due serially on November 1, 1974 and in each year thereafter as follows: 3. Bond Interest Maturity Numbers Amount Rate Date 1 to 3, Incl. $15,000.00 7% November 1, 1974 4 to 63 Incl. 15,000.00 7% November 1, 1975 7 to 9, Incl. 15,000.00 7% November 1, 1976 10 to 13, Incl. 20,000.00 7% November 1, 1977 14 to 17, Incl. 205,000.00 7% November 1, 1978 18 to 213 Incl. 20,000.00 7% November 13 1979 22 to 26, Incl. 25,000.00 7% November 1, 1980 27 to 31, Incl. 25,000.00 7% November 1, 1981 32 to 37, Incl. 30,000.00 7% November 1, 1982 38 to 43, Incl. 30,000.00 7% November 1, 1983 44 to 49, Incl. 30,000.00 7% November 13- 1984 50 to 53, Incl. 20,000.00 7% November 1, 1985 3. Said Bonds bear interest from date at the rates of interest set forth above, payable May 1, 1974, and thereafter semi- annually on November 1 and May 1 in each year. Bonds numbered 1 to 26, inclusive, shall become due without option of prior payment, except as is hereinafter specified. At the option of the City, which option the City shall exercise upon written direction from Tenant, Bonds numbered 27 to 53, inclusive, may be called for redemption and payment in whole or in part, in inverse numerical order, on November 1, 1980, or on any interest payment date thereafter at the par value thereof, plus accrued interest thereon to the date fixed for redemption and payment, together with a premium which shall be equal to three percent (3%) of the par value of the principal amount of said Bonds so called for redemption and payment. All of the Bonds of this issue shall be subject to redemption and payment at the option of said City, which option the City shall exercise upon written direction from Tenant, on November 1, 1974, or on any interest payment date thereafter if title to, or the use for a limited period of, substantially all of the Facility be condemned by any authority having power of eminent domain, or in the event that all or substantially all of such Facility is damaged or destroyed by fire or other casualty, or if as a result of changes in the Constitution of the State of Kansas or.of legislative action, or by the final decree of judgment of any Court entered after Tenant's contest thereof in good faith, the Lease and Agreement becomes void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in said Lease and Agreement, or unreasonable burdens or excessive liabilities are imposed on the City or on the Tenant, at the par value thereof, plus accrued interest thereon to the date fixed for redemption and payment. Notice of any call for redemption and payment shall be given by one publication in the official city paper and in the official state paper of the State of Kansas at least thirty (30) days t .-h-n � t., fi .ca f, ,-- prior U v �: u.c.i.v.. .. a yr r -. ".-",-pt i'on and paymncnt . shall specify bond numbers of bonds to be redeemed and paid and such notice shall also be mailed by registered or certified mail not less than thirty (30) days prior to the date fixed for redemption and 4. payment to Stifel, Nicolaus and Company, Inc., Wichita, Kansas, and to the Trustee hereinafter named. Interest shall cease on any of said bonds so called for redemption and payment as of the date fixed for redemption and payment, provided funds are available to pay the same according to their terms. Said bonds and interest coupons to be attached thereto as hereinafter provided shall be payable in lawful money of the United States of America at First National Bank & Trust Company, Salina, Kansas, hereinafter sometimes referred to as "Trustee" or as "Paying Agent" or by both titles. SECTION 4. Said bonds and each of them shall be executed for and on behalf of the City by the facsimile signature of the Mayor and attested by the facsimile signature of the City Clerk, with the seal of the City affixed. Interest coupons shall be attached to said bonds representing the interest to mature thereon, and said interest coupons shall bear the facsimile signatures of the Mayor and City Clerk of said City. All of said bonds shall be registered by the City Clerk in substantially the form hereinafter set forth and such registration certificate shall be manually executed by the City Clerk and attested by the seal of the City. Each of said bonds shall be authenticated by the manual signature of an authorized officer of the Trustee and Paying Agent. SECTION 5. Each of said bonds and interest coupons and the certificates attached thereto shall be in substantially the following form: 5• No. UNITED STA'L'ES OF AMERICA $5,000.00 STATE OF KANSAS COUNTY OF SALINE CITY OF SALINA INDUSTRIAL DEVELOPMENT REVENUE BOND SERIES If -1- 73 FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the first day of November, 19 , and to pay interest thereon from the date hereof at the rate of seven percent (7%) per annum, payable May 1, 1974, and thereafter semiannually on November 1 and May 1 in each year after the date hereof until the said principal sum shall have been paid, upon presentation and surrender of the interest coupons hereto attached, bearing the facsimile signatures of the Mayor and City Clerk of said City as said coupons severally become due, both principal of'and interest on this bond being payable at the office of the First National Bank & Trust Company, in the City of Salina, Kansas, Trustee and Paying Agent. THIS BOND is one of an authorized series of 53 bonds of like date and tenor, except as to number, privilege of redemption, and maturity, aggregating the principal amount of $265,000.00, numbered from 1 to 53, inclusive, being in denominations of $5,000.00, authorized by Ordinance No. 06318 of said City, issued for the purpose of providing funds to pay the cost of acquiring certain real estate and of purchasing, improving, enlarging, constructing, and equipping industrial buildings thereon (said real estate, buildings and equipment hereinafter sometimes referred to as the "Facility") to be leased to The Hill Company, a Texas corporation, (hereinafter sometimes referred to as the "Facility"), by the authority of and in conformity with the provisions, restrictions and limitations of the Constitution and Statutes of the State of Kansas, including K.S.A. Sections 12-1740 to 12-1749, inclusive, and all amendments thereof and acts supplemental thereto, and all other provisions of the laws of said State applicable thereto, and this bond and all interest and premium, if any, hereon are to be paid by said City of Salina, Kansas, solely and only from the money and revenue received from the Facility and not from any other fund or source. Pursuant to the provisions of said statute, the governing body of the City has pledged said Facility and the earnings therefrom to the payment of the series of bonds of which this bond is a part, and the interest and premium, if any, thereon. Reference is hereby made to the ordinance aforesaid and to said lease from the City to said Tenant, which lease is fully and unconditionally guaranteed by Connally Implement Supply Co., Inc., a Texas corporation, for a description of the covenants of the City with respect to the collection, segregation, and application of the revenues of said Facility, the nature and extent of the security of said bonds, the rights, duties and obligations of the City and of the Trustee with respect thereto, and the rights of the holders thereof. 6. (THE HILL COMPANY, TENANT, AND CONNALLY IMPLEMENT SUPPLY CO., INC., GUARANTOR) KNOW ALL MEN BY THESE PRESENTS: That the City of Salina, in the County of Saline, State of Kansas, for value received, hereby promises to pay, out of the revenues hereinafter specified, to the bearer, the sum of FIVE THOUSAND DOLLARS in lawful money of the United States of America, on the first day of November, 19 , and to pay interest thereon from the date hereof at the rate of seven percent (7%) per annum, payable May 1, 1974, and thereafter semiannually on November 1 and May 1 in each year after the date hereof until the said principal sum shall have been paid, upon presentation and surrender of the interest coupons hereto attached, bearing the facsimile signatures of the Mayor and City Clerk of said City as said coupons severally become due, both principal of'and interest on this bond being payable at the office of the First National Bank & Trust Company, in the City of Salina, Kansas, Trustee and Paying Agent. THIS BOND is one of an authorized series of 53 bonds of like date and tenor, except as to number, privilege of redemption, and maturity, aggregating the principal amount of $265,000.00, numbered from 1 to 53, inclusive, being in denominations of $5,000.00, authorized by Ordinance No. 06318 of said City, issued for the purpose of providing funds to pay the cost of acquiring certain real estate and of purchasing, improving, enlarging, constructing, and equipping industrial buildings thereon (said real estate, buildings and equipment hereinafter sometimes referred to as the "Facility") to be leased to The Hill Company, a Texas corporation, (hereinafter sometimes referred to as the "Facility"), by the authority of and in conformity with the provisions, restrictions and limitations of the Constitution and Statutes of the State of Kansas, including K.S.A. Sections 12-1740 to 12-1749, inclusive, and all amendments thereof and acts supplemental thereto, and all other provisions of the laws of said State applicable thereto, and this bond and all interest and premium, if any, hereon are to be paid by said City of Salina, Kansas, solely and only from the money and revenue received from the Facility and not from any other fund or source. Pursuant to the provisions of said statute, the governing body of the City has pledged said Facility and the earnings therefrom to the payment of the series of bonds of which this bond is a part, and the interest and premium, if any, thereon. Reference is hereby made to the ordinance aforesaid and to said lease from the City to said Tenant, which lease is fully and unconditionally guaranteed by Connally Implement Supply Co., Inc., a Texas corporation, for a description of the covenants of the City with respect to the collection, segregation, and application of the revenues of said Facility, the nature and extent of the security of said bonds, the rights, duties and obligations of the City and of the Trustee with respect thereto, and the rights of the holders thereof. 6. At the option of the City, which option the City shall exercise upon written direction from Tenant, bonds numbered 27 to 53, inclusive, of the series of bonds of which this bond is one, may be called for redemption and payment prior to their respective maturities, in whole or in part, in inverse numerical order, on November 1, 1980, or on any interest payment date thereafter, at the par value thereof and accrued interest to date of redemption, together with a premium of three percent (3%) of the principal amount of said bonds so called for redemption and payment. Each of the then outstanding bonds of the series of which this bond is one is also subject to redemption and payment prior to their respective maturities on any interest payment date, in the event that all or substantially all of the Facility leased to said Tenant be condemned by any authority having the power of eminent domain, or in the event all or substantially all of said Facility be damaged or destroyed by fire or other casualty, or if as a result of changes in the Constitution of the State of Kansas or of legislative action, or by the final decree or judgment of any Court entered after Tenant's contest thereof in good faith, the Lease and Agreement becomes void or unenforceable or impossible of performance in accordance with the intent and purposes of the parties as expressed in the Lease and Agree- ment, or unreasonable burdens or excessive liabilities are imposed on the City or on the Tenant, at the par value thereof, plus accrued interest thereon to date of redemption. Notice of the City's intention to redeem and pay said bonds, specifying the numbers of the bonds to be redeemed and paid, shall be given by United States registered or certified mail to Stifel, Nicolaus and Company, Inc., Wichita, Kansas, the original purchaser of said bonds, not less than thirty (30) days prior to the date fixed for redemption and payment and by one publication in the official city paper and in the official state paper of the State of Kansas not less than thirty (30) days before the date fixed for redemption and payment. a This bond shall not be valid for any purpose until the Certificate of Authentication hereon shall have been signed by the Trustee. AND IT IS HEREBY DECLARED AND CERTIFIED that all acts, conditions and things required to be done and to exist precedent to and in the issuance of this bond have been properly done and performed and do exist in due and regular form and manner as required by the Con- stitution and laws of the State of Kansas and the ordinances of the City of Salina. IN WITNESS WHEREOF, the City of Salina, in the State of Kansas, by its governing body, has caused this bond to be signed by the facsimile signature of its Mayor and attested by the facsimile signature of its City Clerk, and its corporate seal to be hereto affixed and the interest coupons hereto attached to be signed with the facsimile signatures of said officers, and this bond to be dated this first day of November, 1973• ATTEST: (facsimile) CITY CLERK MA (facsimile) MAYOR 1 1 (FORM 01" COUPON) Coupon No. The first interest coupon being payable May 1, 1974) On the First day of (November) (May), 19 , (unless the bond to which this coupon is attached shall have been previously called for redemption and payment duly provided for) the City of Salina, Kansas, will pay bearer, solely from the money and revenue received from the Facility described in the bond to which this coupon is attached, and not from any other fund or source, One Hundred Seventy -Five and no/100 Dollars, in lawful money of the United States of America, at the office of the First National Bank & Trust Company, Salina, Kansas, being six months' interest on its Industrial Develop- ment Revenue Bonds, Series 11-1-75 , dated November 1, 1973, No. facsimile Mayor Attest: (facsimile City Clerk STATE OF KANSAS ) ss. SALINE COUNTY ) Bond No. _ November 1, May 1, 19 City of Salina, Kansas Industrial Development Revenue Bonds Series 11-1- 73 $175.00 I, the undersigned, City'Clerk of the City of Salina, Kansas, hereby certify that the within Industrial Development Revenue Bond, Series 11-1-73 of the City of Salina, Kansas, has been duly registered in my office according to law. (Seal) WITNESS my hand and official seal this City Clerk TRUSTEE'S CERTIFICATE OF AUTHENTICATION This bond is one of those described in the within mentioned Ordinance No. M$ of the City of Salina, Kansas. FIRST NATIONAL BANK & TRUST COMPANY Salina, Kansas 1 8. SECTION 6. Said bonds and the coupons affixed thereto shall be registered on the official records of the City of Salina, Kansas. SECTION 7. The Mayor and City Clerk are hereby authorized and directed to prepare and execute in the manner hereinbefore specified the Industrial Development Revenue Bonds, Series 1/-1-73 of the City herein authorized, and to deliver said bonds to Sti.fel, Nicolaus & Company, Inc., Wichita, Kansas, the purchaser thereof on payment of the purchase price to First National Bank & Trust Company, Salina, Kansas, the Trustee hereinafter designated. SECTION 8. There is hereby authorized and ordered to be established in the hands of the Trustee a separate fund or account designated as "THE HILL COMPANY ACQUISITION AND CONSTRUCTION FUND," hereinafter referred to as the "CONSTRUCTION FUND." The proceeds from the sale of said Bonds shall be deposited in said CONSTRUCTION FUND. Concurrently with the issuance of said bonds, the Trustee shall with- draw from aaid CONSTRUCTION FUND any accrued interest received by said City and shall deposit the same in the PRINCIPAL AND INTEREST ACCOUNT hereinafter created. The Trustee shall make disbursements from said CONSTRUCTION FUND in accordance with the terms and provisions of the Lease dated as of November 1, 1973, between said City and said The Hill Company, as authorized by the provisions of this ordinance and in accordance with this ordinance. The Trustee is hereby authorized to pay from the CONSTRUCTION FUND on orders signed by the Project Manager designated in the Lease and Agreement such sums as may be necessary to cover the cost of acquisition of the real estate and the existing improvements thereon, payments required to be made under the construction contracts, architects' and engineers' fees, fiscal fees, attorneys' fees, and 01 miscellaneous expenses covering the issuance of the bonds and the completion of the Facility, including all necessary equipment for said Facility. The Trustee may rely upon orders of the Project Manager and shall not be required to determine whether there has been a proper application of funds. Following the completion of N the Facility and the payment of all construction expenses, which completion and payment shall be evidenced by the certificate of the Project Manager, any balance remaining in the CONSTRUCTION FUND shall be transferred by the Trustee to the PRINCIPAL AND INTEREST ACCOUNT hereafter created, unless all transfers required by this Ordinance to be made to said PRINCIPAL AND INTEREST ACCOUNT shall then be current, in which event said balance shall be transferred by the Trustee to the SURPLUS ACCOUNT hereafter created. SECTION 9. There are hereby authorized and ordered to be established in the hands of the Trustee two separate accounts as follows: (1) "THE HILL COMPANY PRINCIPAL AND INTEREST ACCOUNT NO. l," herein referred to as the "PRINCIPAL AND INTEREST ACCOUNT," or as "ACCOUNT NO. 13" (2) "THE HILL COMPANY SURPLUS ACCOUNT, ACCOUNT NO. 2," herein referred to as the "SURPLUS ACCOUNT," or as "ACCOUNT NO. 2." The City covenants and agrees that from and after delivery of any of the Revenue Bonds herein authorized, and continuing so long as any of said bonds shall remain outstanding, said City will maintain said accounts and each of them with the Trustee. All monies paid or to be paid under said Lease between the City and The Hill Company, dated as of November 1, 1973, shall be paid to and deposited with the Trustee, and shall be applied and allocated by said Trustee on the first day of each month beginning with the month of November, 1973, and continuing thereafter as long as any of the Revenue Bonds authorized remain outstanding and unpaid, as follows: (a) There shall first be credited to and deposited in said PRINCIPAL AND INTEREST ACCOUNT: (1) Beginning November 1, 1973, and on the first day of each month thereafter an amount not less than one-sixth (1/6) of the amount required to pay the interest on said bonds becoming due on the next succeeding interest payment date (after 10. first deducting any monies then on hand in said PRINCIPAL AND INTEREST ACCOUNT), and in addition (2) on the first day of November, 1973, and on the first day of each month thereafter an amount not less than one -twelfth (1/12) of the amount required to pay the principal amount of the bonds herein authorized becoming due on the next succeeding bond maturity date. All amounts credited to and deposited in said PRINCIPAL AND INTEREST ACCOUNT shall be expended and used by the Trustee for the sole purpose of paying the interest on and principal of the Revenue Bonds herein authorized as and when the same become due, and the Trustee shall apply such amounts immediately upon receipt, if necessary, for the purpose of paying such principal and interest. (b) After all deposits required by paragraph (a) of this Section 9 shall have been made, the Trustee shall deposit the Agent. The Trustee is authorized to make any such payments upon an appropriate certificate executed by Tenant setting out the purpose for which the funds are to be expended and certifying that such ex- penditures comes within the provisions of this ordinance but subject to the consent of the City as is provided in paragraph (b) of this Section 9. Monies in said SURPLUS ACCOUNT shall be used by the Trustee to increase the balance held in the PRINCIPAL AND INTEREST ACCOUNT for the purpose of paying the principal of or interest on the bonds herein authorized in the event that rental payments under the lease are insufficient for that purpose or if for any other reason no other monies are available for said purpose. Monies in said SURPLUS ACCOUNT may also be used by the Trustee for the purpose of purchasing for can- U4- the Rt enue Bonds herei?1 a1- 1. i zed, pi-ior to their respective 11. balance of all monthly rental payments in the SURPLUS ACCOUNT. Monies in said SURPLUS ACCOUNT shall be paid out by the Trustee for the purpose of making emergency repairs to the Facility aforesaid, for extensions, enlargements and improvements to the same, for replacements to any equipment (constituting a part of the Facility) located therein, and to pay the fees, expenses and charges for the Trustee and Paying Agent. The Trustee is authorized to make any such payments upon an appropriate certificate executed by Tenant setting out the purpose for which the funds are to be expended and certifying that such ex- penditures comes within the provisions of this ordinance but subject to the consent of the City as is provided in paragraph (b) of this Section 9. Monies in said SURPLUS ACCOUNT shall be used by the Trustee to increase the balance held in the PRINCIPAL AND INTEREST ACCOUNT for the purpose of paying the principal of or interest on the bonds herein authorized in the event that rental payments under the lease are insufficient for that purpose or if for any other reason no other monies are available for said purpose. Monies in said SURPLUS ACCOUNT may also be used by the Trustee for the purpose of purchasing for can- U4- the Rt enue Bonds herei?1 a1- 1. i zed, pi-ior to their respective 11. maturities, provided funds are availahle to pay the same according to their terms and provided such purchases occur prior to November 1, 1980, and for the purpose of calling any of the bonds which are then subject to call for redemption and payment prior to their respective maturities. Monies in the SURPLUS ACCOUNT shall not be paid out by the Trustee for any of the purposes herein set forth (except to provide for payment of the principal of or interest on the bonds herein authorized, and except to pay the fees, expenses and charges of the Trustee and Paying Agent) unless the Trustee has been furnished with a written order from Tenant. Unless the City shall have consented to each such disbursement, the Trustee shall notify the City Clerk of the City of such proposed disbursement and shall proceed to make such disburse- ment, unless within ten (10) days after notice to the City Clerk the City notifies the Trustee that it objects to such disbursement. SECTION 10. When monies accumulated in said PRINCIPAL AND and payment, said City shall upon Tenant's direction proceed to give notice of such redemption in the manner herein specified, and the Trustee shall apply the necessary funds out of the said PRINCIPAL AND INTEREST ACCOUNT and said SURPLUS ACCOUNT to redeem and pay said bonds in accordance with the provisions of this ordinance. Any balance in said funds and accounts not required for said purpose shall be returned to Tenant as excess rent. SECTION 11. Monies in the CONSTRUCTION FUND, the PRINCIPAL AND INTEREST ACCOUNT, and the SURPLUS ACCOUNT may, upon instruction by Tenant, be invested by the Trustee in such amounts and at such times as shall reasonably provide for monies to be available when required, in obligations of the United States Government or of an agency thereof, 12. INTEREST ACCOUNT and in said SURPLUS ACCOUNT shall aggregate an amount sufficient to pay the principal of all of said Revenue Bonds then outstanding and subject to call for redemption prior to their respective maturities, together with all interest thereon, together with the premium required to pay the same upon call for redemption and payment, said City shall upon Tenant's direction proceed to give notice of such redemption in the manner herein specified, and the Trustee shall apply the necessary funds out of the said PRINCIPAL AND INTEREST ACCOUNT and said SURPLUS ACCOUNT to redeem and pay said bonds in accordance with the provisions of this ordinance. Any balance in said funds and accounts not required for said purpose shall be returned to Tenant as excess rent. SECTION 11. Monies in the CONSTRUCTION FUND, the PRINCIPAL AND INTEREST ACCOUNT, and the SURPLUS ACCOUNT may, upon instruction by Tenant, be invested by the Trustee in such amounts and at such times as shall reasonably provide for monies to be available when required, in obligations of the United States Government or of an agency thereof, 12. in obligations guaranteed by the United States Government or an agency thereof, or in Certificates of Deposit issued by the commercial department of a State or National Bank, including Trustee, provided said Certificates of Deposit are insured by an agency of ^the United States Government. The Trustee shall have complete discretion in determining maturity dates, so as to adequately anticipate its future cash needs as may be required in said accounts. The Trustee shall invest such monies so as to obtain the maximum possible return, with a view, however, to the risk and time involved. All interest on any bonds or other obligations held in any of said accounts shall accrue to and become a part of the CONSTRUCTION FUND until completion and occupancy of the Facility and shall thereafter accrue to and become a part of the SURPLUS ACCOUNT. In determining the amount held in any account under the provisions of this Ordinance, obligations shall be valued at their principal par value or at their then market value, whichever is lower. SECTION 12. So long as any of the principal of and interest on any of the Revenue Bonds herein authorized remain outstanding and unpaid, the City covenants with each of the purchasers and owners of said bonds as follows: (A) The City will neither make nor permit Tenant, Guarantor or Trustee to make any use of the proceeds of the bonds herein authorized which if such use had been reasonably expected on the date of issuance of said bonds, would have caused said bonds to be arbitrage bonds within the meaning of Section 103(d) of the Internal Revenue Code of 1954, as amended, and the City will comply with, and will take all necessary action to cause Tenant, Guarantor and Trustee to comply with, all applicable requirements of said Section 103(d) and the rules and regulations of tie United States Treasury Department thereunder for so long as any of said bonds outstanding and unpaid. (B) The City will comply fully with all the terms, provisions and conditions of the Lease which require performance by, or impose duties on the City and that it will not permit any 13. default to occur on the part of the City; that it will fully and promptly enforce all of the terms, provisions and conditions of the Lease which require performance by, or impose duties on, The Hill Company, or Connally Implement Supply Co., Inc., and in the event of the occurrence of a default, as defined in the Lease, will exercise all rights and remedies conferred by the Lease for the full and complete protection of the security and rights of the bondholders and to the extent permitted by the Lease, will use its best efforts to procure a new tenant or tenants for the leased property under lease provisions which will provide funds sufficient in amount to make the rental payments and other charges which The Hill Company is required to make under the Lease dated as of November 1, 1973. If the City is unable to procure a new tenant who will enter into such a lease, the City may, with the consent of the holders of not less than seventy- five percent (75%) in principal amount of the Bonds herein authorized at the time outstanding, sell the Facility leased at a price not less than the amount of then outstanding Revenue Bonds plus interest then unpaid, plus.the premium required to call said bonds for redemption and payment. (C) The City will enforce collection of the rental payments and other charges in the amounts and at the times set forth in the Lease authorized hereby and will not reduce or cause or permit to be reduced the rental payments and other charges fixed, established and required by the Lease, nor change or alter the time or times when the same are due and payable under said Lease. The City's obligation to pay the expenses of such enforcement shall be limited to funds made available to it for that purpose by the holders of the bonds or other interested or obligated parties. (D) That until payment of all the Bonds and interest thereon has been duly made or provided for, the City will not consent to any assignment or other transfer, in whole or in part, of the interests of The Hill Company or Connally Implement Supply Co., Inc. in the Lease, except as provided for in the Lease, nor any change, amendment, modification or termination of said Lease, which will in any manner affect adversely the rights, remedies or interests of the bondholders. 14. (E) Any purchase price of the leased property received by the City following the termination of the Lease Agreement, any proceeds of condemnation awards or any advance rental payments will be used solely and exclusively to redeem and pay according to their terms any of the Revenue Bonds herein authorized then outstanding and unpaid and subject to redemption and payment. Upon receipt of any such funds, the City shall proceed promptly to call said Revenue Bonds for redemption and payment and shall give notice thereof provided for by the terms of this ordinance. Such funds shall be deposited with the Trustee, and the same shall be used solely for the payment of the Revenue Bonds herein authorized, accrued interest thereon, any premium provided for by this ordinance and the charges of the Trustee for paying the same. (F) The City will not issue any other obligations payable from payments made by The Hill Company or by Connally Implement Supply Co., Inc. pursuant to the Lease, nor voluntarily create or cause to be created any debt, lien, pledge, assignment, encumbrance, or any other charge on said payments or on the property subject to said Lease. (G) The City will cause The Hill Company to keep constantly insured all buildings and improvements from time to time constituting a part of the Facility in the manner provided for by the Lease herein authorized. The City's share of the proceeds of any such insurance policies shall be payable to and deposited with the Trustee as In- surance Trustee. Any of the proceeds of such policies shall be used and applied in the manner set forth in Section lg of said Lease. (H) The City will keep books and records, or cause the Trustee to keep books and records, relating to the Facility, which shall be separate and apart from all other books, records and accounts of the City in which correct entries shall be made in accordance with standard principles of accounting of all transactions relating to the leased property and improvements and the original purchasers of the nevenue Bonds iieveiri authorized and any bondholder or any representative 15. of The dill Company or Connally Implement Supply Co., Inc. shall have the right at all reasonable times to inspect all records, accounts and data of the City relating to the leased property and improvements. In the event said books and records are maintained by the City rather than by the Trustee, the City shall, at least once a year at the expense of The Hill Company cause such books, records and accounts to be properly audited by a competent auditor or accountant of recognized standing and shall make said audit available at all reasonable times to any bondholder, to The Hill Company, and to Connally Implement Supply Co., Inc. A copy of said audit shall also be mailed to Stifel, Nicolaus & Company, Inc., Wichita, Kansas. (I) The City will make or cause to be made a biennial inspection of the Facility and will cause a report of such inspection with recommendation for changes or improvements in maintenance procedures to be filed with the City Clerk. The City shall be reimbursed by the Trustee for any expenses incurred by it in making such inspection of the Facility and the report thereof. SECTI0111 13. The provisions of the Bonds authorized by this ordinance and the provisions of this ordinance may be modified or amended at any time by the City with the written consent of the Trustee, the Tenant, the Guarantor and the holders of not less than seventy-five percent (75%) in aggregate principal amount of the Bonds herein authorized at the time outstanding; provided, however, that no such modification or amendment shall permit or be construed as permitting (a) the extension of the maturity of the principal of any interest on any Bonds issued hereunder, or (b) a reduction in the principal amount of any Bonds or the rate of interest thereon, or (c) a reduction in the aggregate principal amount of Bonds the consent of the holders of which is required for any such amendment or modification. Any provisions of the Bonds or of this ordinance may, however, be modified or amended in any respect with the written consent of the Tenant and the consent of the holders of all of the Bonds then outstanding. Every r—endment or mo,' i fi_ at'r,n of r,_ ,sri i,nn of t}ia Rnr;15 Or Ot' this ordinance to which the written consent of the bondholders is given as above provided shall be expressed in an ordinance of the City amending or supplementing the provisions of this ordinance and shall be deemed 16. to be a part of this ordinance. It shall not be necessary to note on any of the outstanding Bonds any reference to such amendment or modification, if any. A certified copy of this ordinance shall always be kept on file in the office of the City Clerk and shall be made available for inspection by the Tenant or the Guarantor and by the holder of any Bond or prospective purchaser or holder of any Bond authorized by this Ordinance, and upon payment of the reasonable cost of preparing the same, a certified copy of any such amendatory or supplemental ordinance or of this ordinance will be sent by the City Clerk to any such bondholder or prospective bondholder. SECTION 14. The provisions of this ordinance shall con- stitute a contract between the City of Salina, Kansas and the holders of the Revenue Bonds herein authorized, and the holder of any one or more of said Bonds may sue, in any action, in mandamus, injunction, or other proceedings, either at law or in equity, to enforce or compel performance of all duties and obligations required b.y this ordinance to be done or performed by said City. The City hereby pledges the Facility hereinabove described together with all additions thereto, all machinery and equipment therein and thereon purchased or acquired from the bond proceeds or proceeds from the SURPLUS ACCOUNT, including any replacements thereof and all accretions thereto, subject to the replacement provisions provided for in the Lease and Agreement, to the payment of the Bonds authorized herein and all interest thereon, such pledge to be enforced in the manner provided by law. Nothing contained in this ordinance shall, however, be construed to impose on said City any duty or obligation to levy any taxes either to meet any obligation contained herein or to pay the principal of or interest on the Revenue Bonds of the City herein authorized. SECTION 1�r. The tract of land to be acquired pursuant to the provisions of this ordinance and the improvements to be acquired, installed and constructed thereon pursuant to this ordinance shall be leased to The Hill Company under and pursuant to a Lease and Agreement dated a;c of luovemb;:r 1, 1973, in the form attached to this ordinance and made a part hereof by reference, which Lease the Mayor and City 17. Clerk are hereby authorized and directed to execute for, on behalf' of and as the act and deed of the City. Said officers are further authorized and directed to execute and acknowledge a memorandum of said Lease in such form as they may deem adequate and to have the same recorded in the office of the Register of Deeds of Saline County, Kansas. SECTION 16. The First National Bank & Trust Company, Salina, Kansas, hereinbefore designated as Trustee and Paying Agent hereunder, shall have all the power of the City as herein described upon the filing with the City Clerk of the City of a written acceptance of the office of the Trustee and Paying Agent. Said Trustee may enforce in the name of the City or in its own name the Lease and Agreement and this Ordinance. Should said Trustee fail to accept such office or should it later resign as Trustee, the City reserves the right by Ordinance to select and designate a successor Trustee which shall be a bank having trust powers or trust company located in the State of Kansas, and which successor Trustee shall have all the power and duties of the Trustee herein designated upon written acceptance of the office of Trustee. When all of the bonds have been paid in full, together with all interest thereon and premium, if any, and all fees and charges of the Trustee and Paying Agent, the balance, if any, in all of the accounts shall be paid over by the Trustee to The Hill Company, and when all of said accounts have been reduced to a zero balance the office of Trustee and Paying Agent shall terminate. The Trustee shall have no duties except those specifically provided for in the Lease and Agreement and in this Ordinance. The Trustee in administering the Lease and Agreement and this Ordinance, shall be entitled to advice of counsel and shall be protected for any action taken in good faith in reliance upon such advice. The Trustee shall be entitled to rely fully upon any reports, certificates or opinions furnished to it by the Project Manager pursuant to the no Lease. The Trustee shall riot be liable for any action taken by it in good faith and reasonably believed by it to be within the dis- cretion or power conferred by this ordinance or be responsible for, the consequences of any oversight or error of judgment reasonably made by it and the Trustee shall be answerable only for its own acts, receipts, neglects and defaults and not for those of any person, firm or corporation employed and selected with reasonable care. SECTION 17. The City hereby assigns to the Trustee herein designated, the Lease of the Facility. Such assignment shall continue only so long as any of the Bonds (including interest thereon) authorized hereunder shall be outstanding and unpaid, and when said Bonds (in- cluding interest thereon) shall have all been paid or provisions shall have been made for their payment, said Lease shall automatically be reassigned to the City. SECTION 18. If any one or more of the covenants, agreements or provisions of this ordinance or of said Lease dated as of November 1, 1973, should be held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall for any reason whatso- ever be held invalid, then such covenants, agreements or provisions shall be null and void and shall be deemed separate from the remaining covenants, agreements or provisions, and shall in no way affect the validity of the other provisions of this ordinance or of the Bonds or coupons issued hereunder, or the Lease. SECTION 19. This ordinance shall take effect and be in force from and after its passage and publication in the official City paper. PASSED ANIS APPROVED at Salina, Kansas, the /, Z e4 day of 1973• MAYOR ATTEST: c 0 _ CITY CLERK * 19. • 0-06-73 Lt�,ASE AND AGREEMENT THIS LEASE AND AGREEMENT made as of the lst day of November, 1973, by, between and among the CITY OF SALINA (Landlord), a municipal corporation of the State of Kansas, THE HILL COMPANY (Tenant), a Texas corporation, and CONNALLY IMPLEMENT SUPPLY CO., INC. (Guarantor), a Texas corporation. W I T N E S S E T H: Landlord is a duly existing municipality, a city of the first class, with full lawful power and authority to enter into this Lease and Agreement, acting by and through its Governing Body, in the public interest and for a public purpose, by providing for industrial development and employment opportunities for its citizens and for the citizens of the Salina metropolitan area to promote the economic stability of the State of Kansas, all as authorized by K.S.A. 12-1740 to 12-1749, as amended. In reliance upon negotiations heretofore had, and in order to expedite the anticipated public benefits hereunder by avoiding delays which would otherwise occur, Tenant has proceeded to acquire land and certain existing improvements and to cause to be designed additional improvements to be constructed upon the real estate herein- after described. To provide the funds for the acquisition of the fee simple title to the land hereinafter described and the existing improvements thereon and to pay the cost of construction of said additional im- provements, Landlord intends to issue and sell its Industrial Development Revenue Bonds in the amount of Two Hundred Sixty-five Thousand Dollars ($265,000.00) hereinafter sometimes called the "Bonds." The Bonds shall be secured by a pledf;e of the Facility as hereinafter defined and shall also be secured by a first lien on the j;ross rentals from the said Fa c.,ilit;y under L-a.ae and l„rree, er�t;. Tc yi,-in ; edc"es that tho net; procecds from the sa_7 o oI' such Bond,-) m�ty be Ar to pay for the completed Facility, and intends and agrees to contribute its own funds to pay any balance required to fully construct and equip the Facility. Despite any such payments by Tenant the completed Facility shall be owned by the City. Said Bonds will be authorized by an ordinance of the Landlord hereinafter sometimes called the "Bond Ordinance," a copy of which ordinance is attached hereto and made a part hereof. Concurrently with the execution and delivery of this Lease and Agreement: (a) Tenant has caused to be conveyed to Landlord the fee simple title to the Land hereinafter described, including any improvements now thereof, free and clear of liens and encumbrances. (b) Tenant has delivered to Landlord construction plans and specifications for the buildings and appurtenances to be con- structed thereon. NOW, THEREFORE, in consideration of the premises, of other good and valuable considerations and of the mutual benefits, covenants and agreements herein contained, the parties hereto agree as follows: SECTION 1. PREMISES DEMISED. Landlord leases to Tenant and Tenant hires from Landlord, subject to the terms and conditions of this Lease and Agreement, and subject to the terms and conditions of a lease from Jack D. Watson, Trustee, to the John Deere Company, a copy of which is annexed hereto, the following: (a) The following described real estate in Saline County, Kansas, as and when owned by the Landlord in fee simple, to -wit: A tract of land lying in the Southwest Quarter (SW/4) of Section Fourteen (14), Township Fourteen (14) South, Range Three (3) West of the Sixth Principal Meridian in Saline County, Kansas, des- cribed as follo;A:s : • from the southwest corner of said Southwest Quarter (SW/4), thence east on an assumed bearing of North 9000' East.along the south line of said Southwest Quarter (SW/4) a distance of 1771, feet to a point on the east right-of-way line of U.S. 81 Highway Bypass ex- tended, thence North 0°58'45".East along said cast right-of-way Line and parallel with the east line of said South,�Ilest Quarter. (S14/4) a distance of 1309.5 feet to the Point of Beginning, thence North 90°0' east parallel with south line of said Southrr^�7,t Quarter a d1stance of 875.30 fact to a t 010f, oil easi, lin(. or -,,aid Southwest Quarter, sa_Ld ea.,, -,t line a1 so beinf; the right-of-way line of the I.11ssouri- Pacific 1lai_lrnad, thence South 0`58'45" Wert along th(� e,3st l.i.ne of „a_i.d 2. 11 1 1 Ll • "oIt, h,.'ru:-t; Quart, (-,1, (std/11) a (ti;;tancC of 300 I*CtE t , %hence :)oath 90°0' LJr�;�,L p•� r��llcl_ V,ith L11C ,�0,if;h line o.:'., Qu,_ ,,,Ler (;'):I 11 ) a d:i_stance of_75.0 feet to a point on t;he east riE:;ht-of Linc of U. S . 81. F[i „hr;av }3���;�L�:,._ , t!Iencc NoI�tli 0058'11'J" East along said east; rit 1t, -of-. ay line a distance of 300 feet to the point of beinnlnt;, beinor the s�uae lend described in Saline County, Kansas Recorder deed book 1.72 page 2112, an in- denture between the Salina Building Company, Inc. and John Deere Plow Company of Kansas City, (b) All improvements as defined in Section 26 hereof, constructed thereon and to be constructed thereon, i.ncludin- all equipment, machinery and fixtures which are a part of such improvements. (c) All accretions, easements and appurtenances belonging or in any wise appertaining to the Land. All of the above are included within the meaning of the term "Facility" as used herein. SECTION 2. CONSTRUCTION OF FACILITY BY LANDLORD. Landlord covenants to cause the additional improvements to be constructed in accordance with plans and specifications prepared by Tenant and approved by Tenant, which plans and specifications shall include an itemized list of the equi.prnent, machinery and fixtures which are to be purchased or acquired from the proceeds of the Bonds and are to constitute a part of this Facility, and to pay for the same as provided in this Section. After consultation with Tenant, Landlordereby RL I- I, I't , t) L.,t. designates and appoints as Project Manager and as La.ndlord's duly authoraj_ed a;ent to perform and exercise certain of the authorities, directions and elections of Landlord and to supervise the acquisition of the land and exi_ntin� improvements and the. construction of the additional improvements covered by said plans and specifications and who may direct the Trustee to male payi:lent:i out; O the proceeds of the bonds and further dosignate:-, and appoints Virgil Warren as successor ProjectI�ana�cz'. `the Parties agree t -hat, tnc Lan ll.orci sh�_m ai,rard a eon..triict i_on contract, or -1 U. -I, or may peri:ilt Tenant to atioiard such contr_).cts, to L�inci.lord':; approval_ a.n,t rectui.rc anal • • all payments and all liability of Landlord under such contract; or contracts shall be limited to the proceeds of the bonds, and none of Landlord's other funds shall be in any manner obligated on such contract or contracts. Landlord and Tenant shall have the right to remove and from time to time designate a new Project Manager. The Project Manager shall direct reimbursement to the Tenant for sums theretofore expended by it for engineers' and architects' fees, fiscal fees, attorneys' fees and other similar payments. All such directions ftha1l',-be supported by detailed lists showing descriptions of items and prices and a copy shall be transmitted by the Project Manager to Landlord and -another copy to Tenant. It is contemplated that the net proceeds of the Bonds may be insufficient to fully pay all sums required to be paid to fully complete the acquisition and construction of the Facility, including any additions and extras, lien free.. Tenant hereby agrees to pay any such deficiency by making such payments directly to the contractors or suppliers and Tenant. shall save Landlord whole and harmless from any obligation to pay such deficiency. Tenant shall not make any major change in or amendments to the construction contracts which will_ affect the basic size or character of the Facility without Landlord's prior written consent. However, Tenant may request the Project Manager to make routine changes and alterations in the plans and specifications and so long as such changes do not impair the market value or usefulness of the Facility or change the character of the structures thereon, the Project Manager shall authorize such changes to be made. Tenant agrees to pay any excess costs which may result from any such changes, to the extent that such costs exceed the amount available from the bond proceeds for construction. In addition, Tenant covenants that it will pay or cease to be paid any and all additional expenses reasonably required in connection with this Lease and Agreement and the Bond Ordinance, i.ncludin1-; but not limited to publication expense, bond pri_ntini and attorneys' fees to the extent that such expen.>es exceed. 1 I 1 • • the amount available from the bond. proceeds, including all necessary administrative expen..es of the Landlord incurred during the term of the Lease. All costs of platting, or zoning; or other governmental building requirements shall be complied with and paid for by Tenant. SECTION 3. DELIVERY OF POSSESSION TO TENANT. Landlord agrees to place Tenant in full possession of the Facility immediately upon completion of the additional improvements thereto. Tenant or its agents and employees shall also, prior to completion of the improve- ments, be permitted to enter and use the Facility for any reasonable purpose. SECTION 4. TERI14. The term of this Lease commences November 1, 1973 and shall end November 1, 1985, subject to prior termination as in this Lease and Agreement specified, but to continue thereafter until all of the Bonds and all interest thereon shall have been paid or provision made for their payment, and is herein called the "Term." •SECTION 5. BASIC RENT AND ADDITIONAL RENT. (a) BASIC RENT. Tenant shall pay to Landlord as basic rent the sum of $3,000.00 on the first day of November, 1973, and a like sum on the first day of each month thereafter to and including the first day of October, 1985. Tenant may at any time prepay all or any part of the basic rent provided for hereunder. If at any time the amount held by the Trustee, as provided for in the Bond Ordinance, is sufficient to pay in full the principal of (including redemption premium, if any) and interest on all out- standing Bonds, either at maturity, or on earlier redemption and the Landlord and Trustee hereinafter designated have caused all of the Bonds to be called for redemption and payment, then no further basic rent shall be payable hereunder, and any funds r.,epresent ing payment of basic rent, i%,h1ch are then field by the Trustee and are in excess of the amount t}i,� f3oj f In full a�-if��1��:�sa.id shrill be rc,[`lndi-d to Tennnt: a., excess rant. J• (b) ADDITIONAL RENT. Tenant shall pay as additional rent all Tmpositions (as defined in Section 7 of t}11s Lease),- costs, expenses, liabilities, obligations and other payments of whatever nature which Tenant has agreed to pay or assume under the provisions of this Lease and Agreement, and also such sums of money, in addition to basic rent, as shall be necessary to pay in full the principal of and in- terest on all the Bonds remaining outstanding November 1, 1985, and all other sums necessary to fully retire the Bonds. If -at any time any amounts paid by Tenant to the Trustee as additional rent are or become in excess of the amounts required for the purpose for which they were paid, such excess amounts shall be refunded to Tenant. (c) CHARGES, FEES AND EXPENSES OF TRUSTEE AND PAYING AGENT. Tenant shall pay the fees and expenses of the Trustee and Paying Agent for the Bonds as provided in the Bond Ordinance, semiannually or annually as statements are rendered by said Trustee and Paying Agent and fur- nished to Tenant. Basic rent and additional rent shall be paid on the dates specified or as required, without notice or demand, and without abatement or setoff whether or not the additional improvements to the Facility shall have been completed and whether or not Tenant shall have taken possession of the Facility, notwithstanding legal curtailment of Tenant's use of the Facility, change in Landlord's legal organization or status, or any default of the Landlord and regardless of the invalidity of'any action of the Landlord, it being the intent hereof that except as herein specifically set forth, Tenant shall be absolutely and un- conditionally obligated to pay such basic and additional rent. Guarantor hereby absolutely and unconditionally guarantees said obligation of Tenant.. 6. SECTION 6. MANNER OF PAYVIEIIT OF RENT. Basic rent shall be paid to Landlord by Tenant reini.ttIng the same directly to the Trustee for the account of Landlord, and shall be deposited by the Trustee as provided for in the Pond Ordinance, to be used by the 6. Cl Trustee as provided in the Bond Ordinance. 1Jandlord agrees to cause the Trustee to furnish to Tenant annually and at other reasonable intervals as requested, an accounting of*the funds paid to it and disbursements made by it. Additional rent specified in Section 5 of this Lease, except impositions as defined in Section 7 of this Lease, shall be paid to Landlord by Tenant remitting the same directly to the Trustee for the account of Landlord to be deposited by the Trustee and used as provided in the Bond Ordinance. SECTION 7. PAYMENT OF IMPOSITIONS. Subject to the pro- visions of Section 8, Tenant shall pay to the authorized governmental collection agency all taxes and assessments, general and special, if any, levied and assessed on the Facility during the Term, and all water and sewer charges, assessments and other governmental charges and impositions whatsoever, foreseen and unforeseen, which if not paid when due, would impair the pledge of the Facility or the gross rentals from the Facility or the security of the Bonds, or encumber Landlord's title, all of which are herein called Impositions; provided, however, that any Imposition relating to a fiscal period of the taxing authority, part of which extends beyond the Term, shall be apportioned as of the expiration of the Term. Landlord shall promptly forward to Trustee and,to Tenant any notice, bill or other advice received by Landlord concerning any Imposition. Tenant may pay any Imposition in installments if so payable by law, whether or not interest accrues on the unpaid balance. Tenant shall promptly forward to Landlord and to the Trustee certification or other evidence satisfactory to Landlord and to Trustee of payment in fu] -1 or part of any Imposition. Subject to the provisions of ,Section 8 hereof', Guarantor hereby expressly guarantees the payment of al_ Impositions which Tenant is obligated to pay under the provisions of this Lease and Agreement,. SECTION 8. CONTEST 010 IMPOSITIONS; PAYI1IFNT IN LIEU O `I'AXF,S. `Tenant, has entered into this Lease and Agreement in contemplation that under the law of K'an::as the Facility cannot be lega.]A_y subjected LU iltl _J�Yi (iPc tii LCL%tt I'Oi' Uf LCll '(10) calendar ye;,I,.i c 7• calendar year in which raid Industrial Development Revenue Bonds are issued. Landlord covenants that, except as provided in Section 214 and except as provided in this Section 8•with respect to payments in lieu of taxes, it will not voluntarily part with title to the Facility assessment be threatened or occur, Landlord shall, at Tenant's request, fully cooperate with Tenant in all reasonable ways to prevent or contest any such levy or assessment. Tenant shall have the right in its own or Landlord's name or both to contest the validity or amount of any Imposition by appropriate proceedings timely instituted, provided Tenant gives Landlord, Guarantor and the Trustee written notice of its in- tention to contest and diligently prosecutes such contest and at all times effectively stays or prevents any official or judicial sale of the Facility by reason.of non-payment of any Imposition. Tenant and Guarantor shall hold Landlord or Trustee whole and harmless from any costs and expenses Landlord or Trustee may incur related to any such contest; and promptly.pay any valid final judgment enforcing any Imposition and cause the same to be satisfied of record. Guarantor hereby expressly guarantees the prompt payment and satisfaction of record of any such valid final judgment. As a further consideration for the leasing of the Facility herein provided for, Tenant covenants and agrees to pay to Landlord, - in addition to all other sums due hereunder, an annual amount designated as a payment in lieu of taxes in accordance with the provisions of K.S.A. 1972 Supp. 12-1742, during each year that the Facility is exempt from ad valorem taxes by virtue of any present or future provision of the Constitution or laws of the State of Kansas. Such payments shall. be made on or before the first day of November in each year during the period aforesaid, and shall be made direct to the Trustee who shall promptly remit such payment to the Saline County Treasurer. The amount of each payment shall be a sum equal to the actual annual ad valorum taxes levied agai..nst the Facility in the calendar year In whish said Indo trial Development Revenue Bond,; are issued. 8. or any part thereof during the Term or take any other action which may reasonably be construed as tending to cause or induce levy or assessment of ad valorem taxes on the Facility so long as any of the bonds be outstanding and unpaid or for said ten (10) year period, whichever shall be the shorter time, and should any such levy or assessment be threatened or occur, Landlord shall, at Tenant's request, fully cooperate with Tenant in all reasonable ways to prevent or contest any such levy or assessment. Tenant shall have the right in its own or Landlord's name or both to contest the validity or amount of any Imposition by appropriate proceedings timely instituted, provided Tenant gives Landlord, Guarantor and the Trustee written notice of its in- tention to contest and diligently prosecutes such contest and at all times effectively stays or prevents any official or judicial sale of the Facility by reason.of non-payment of any Imposition. Tenant and Guarantor shall hold Landlord or Trustee whole and harmless from any costs and expenses Landlord or Trustee may incur related to any such contest; and promptly.pay any valid final judgment enforcing any Imposition and cause the same to be satisfied of record. Guarantor hereby expressly guarantees the prompt payment and satisfaction of record of any such valid final judgment. As a further consideration for the leasing of the Facility herein provided for, Tenant covenants and agrees to pay to Landlord, - in addition to all other sums due hereunder, an annual amount designated as a payment in lieu of taxes in accordance with the provisions of K.S.A. 1972 Supp. 12-1742, during each year that the Facility is exempt from ad valorem taxes by virtue of any present or future provision of the Constitution or laws of the State of Kansas. Such payments shall. be made on or before the first day of November in each year during the period aforesaid, and shall be made direct to the Trustee who shall promptly remit such payment to the Saline County Treasurer. The amount of each payment shall be a sum equal to the actual annual ad valorum taxes levied agai..nst the Facility in the calendar year In whish said Indo trial Development Revenue Bond,; are issued. 8. 1 SECTION 9. INSURANCE. (a) COVERAGES REQUIRED. Until construction of the additional improvements to the Facility are completed Tenant shall cause to be kept in force the insurance coverages provided for in the Construction Contract and deliver to Landlord and to the Trustee duplicates of the Certificates there provided to be delivered to the Landlord, and cause Landlord to be named as an additional insured under the policies provided for. At or before the termination of the insurance under the Construction Contract and otherwise throughout the Term, Tenant shall keep the entire Facility insured against loss or damage by fire and extended coverage in amounts sufficient to prevent Landlord or Tenant from becoming a co-insurer within the terms of applicable policies and equal to -one hundred percent (100%) of the full insurable value thereof, subject to a maximum deductible amount of $25,000.00. The term "full insurable value" means such value as shall be determined from time to time at the request of Landlord or the Trustee (but not more frequently than once in every twenty-four months) by an architect, contractor, appraiser, appraisal company or one of the insurers selected by Tenant. In addition, the Tenant shall maintain policies of general liability insurance in the amount of not less than $100,000.00 for any one person, $300,000.00 in any one accident and $50,000.00 property damage with no deductible amount. (b) DEPOSIT OF INSURANCE POLICIES. Not more than fifteen (15) days after completion of the additional improvements to the Facility, and thereafter not less than fifteen (15) days prior to - the expiration dates of the expiring policies, originals or certificates of the policies provided for in this Section, each bearing notations evidencing payment of the premiums or other evidence of such payment 9.' satisfactory to the Trustee, shall be delivered by Tenant to the Trustee. Tenant may procure and keep in force, in place of separate policies, blanket policies of insurance having the same coverage and provisions as are herein required, and in such case shall deliver an attested copy of the blanket policy or policies stating the amount allocated to the Facility. (c) PROVISIONS OF INSURANCE POLICIES - SELECTION OF INSURERS. Subject to the provisions of Section 19 hereto and the limitations hereinafter in this Section set forth, policies of in- surance provided for in this Section shall: (i) name Landlord and Tenant as assureds as their respective interests may appear and except as to general liability insurance shall be payable to the Trustee; provided, however, that loss under all policies shall be adjusted with the insurance companies by Tenant, subject to the approval of the Trustee in case of any loss in excess of Twenty Thousand Dollars ($20,000), except with respect to losses under such general liability insurance, and shall not be cancellable without at least ten (10) days' prior written notice to Tenant and the Trustee; (ii) provide that loss thereunder shall be adjusted and paid for as aforesaid; and (iii) be in effect with insurers selected by Tenant subject to the reasonable approval of the Trustee. (d) NO RIGHTS OF SUBROGATION. No claim shall be made and no suit or action at law or in equity shall be brought by Land- lord or by anyone claiming by, through or under Landlord against Tenant for any damage to the Facility, however caused, to the extent the same is covered by insurance as in this Section requi.rcd, provided .that nothing In this Section containczd shall dirlin:i.sh Tenant's ob- lii at3_on to repair or rebuild as provided in Section 19 hereof. 1-0. c, �, Jr� r�,• r� r r� Tenant has the right . .S1_,(' I ION 10. AL'P Iii ION O111� IICILI l Y . from time to time to make additions, alterations and changes in or to the Facility and to construct new improvements on the land not theretofore occupied by buildings or structures; provided, however, that no alteration shall be glade which would impair the market value or usefulnoss of the Facility or change the character of the structures thereon so that the same will not be appropriate and usable, provided further, however, that no major change which will require expenditure of more than x;25,000.00 by Tenant shall_ be made to the Facility without the prior approval of the Landlord, which approval shall be deemed to have been given if such change is not disapproved within fifteen (15) days after written notice to the City Clerk, specifying the nature of such proposed change. All alterations and additions shall be deemed a part of the Facility and covered by the pledge of the Facility; provided, however, that additions and improvements made by Tenant after completion of the Facility, not purchased or acquired from°the proceeds of the sale of the bonds and not constituting re- pairs, renewals or replacements of items so purchased or acquired, may be demolished or removed by Tenant at any time with the prior written approval of the Trustee, but Tenant shall repair any damage to the Facility occasioned by such demolition or removal. SECTION 11. PUBLIC UTILI`hIES. Tenant shall provide or cause to be provided all necessary facilities to supply all needed utilities on the Facility, and shall pay or cause to be paid all charges for utilities so supplied and obtain all required permits and licenses and indemnify and save Landlord harmless against any costs, expenses, liabilities or damages related to utilities supplied to the Facility. S"CTION 12. INSPlCTION OY FOCILITY• Tenant shall permit the Landlord and the Trustee, by their nuthori.:,ed repro: enta�;ivr.: , to enter the Facility at all reasonable times durint; u:,u al hourf; for pl.l7 po ; c of inspec, Lion ,:nd the perf.of ,,,,y jgc)1•1 therein made necenvNry by renron of JA11 <ont, s curt ult under roil, of 11 . the pi•ovi. •i ot1: of., th:i_'. 1_,ca:.c quid J10rcctrtenL. The parLie'; aLT'I'cc that Landlord "ball_ make or cL711:,0 to be made by the Landlord's engincerinU staff or other qualified personnel a bi.enn_i_:i1. inspection of the Facility and cause a written report of such 'inspection to be filed with the City Cleric, and a copy thereof to be furnished to Tenant. The cost of such inspection shall be borne by Tenant. Said report shall review the adequacy of maintenance 'procedures with respect to the Facility, and Tenant agrees to comply with Landlord's reason- able requests with respect to its recommendations as to improvements in maintenance procedures on the ;;Facility. SECTION 13. USE OF FACILITY - COMPLIANCE WITH LEGAL AND !NSURANCE REQUIREMENTS. Subject to the following provisions Of this Section, Tenant and Landlord agree that Tenant may use the Facility for any lawful purpose. Tenant shall during the Term promptly comply with all valid statutes, laws, ordinances, orders, judgments, decrees, regulations, directions and requirements of all Aderal,-state, local and other governments or governmental authorities, now or hereafter applicable to the Facility or to the adjoining public ways, as to the manner of use or the condition of the Facility or of adjoining public ways. Tenant shall, however, have the right to contest any of the foregoing, and if compliance therewith may legally be held in abeyance during such contest without incidence of any lien on the Facility, Tenant may postpone compliance until final determination of such contest provided such contest shall be prosecuted with due diligence; and even though a lien against the Facility may be incurred by reason of such non- compliance, Tenant may nevertheless delay compliance therewith during contest thereof, provided Tenant:, if requested, furnishes Landlord reasonably satisfactory security against any loss by reason of such lien and effectively prevents foreclosure thereof. Tenant shal__1. dur:i_riC the Term comply with the mandatory requirements, rules and rcgulat i.oiis of all :insures under they policies required to be carnied under the proviniuns 6f 1) llol-enf% TP. SECTION 111. I E'I'AIRS AND MA_CNTE.NANCK'. Sul)Jcct to the provisiolls of f;cct:ion 19 hereof, Tenant shall }.ecp file facility :i.ri good and tenantable condition and repair durin,,; the Term and, upon expiration or termination, shall surrender the Facility to Landlord in as good condition as when Tenant tigas put in possession thereof, ordinary 1%lear and tel -r excepted. SECTION 15. WORK BY TENANT ON THE FACILITY. Tenant shall not do or permit others under its control to do any work on the Facility related to any repair, rebuilding, alteration of or addition to the Facility unless Tenant shall have first procured and paid for all requisite municipal and other governmental permits and authorizations. Landlord shall join in the application for any such permit or authorization whenever required, but Tenant shall indemnify and hold Landlord harmless against and from all costs and expenses which may be thereby incurred by Landlord. All such work shall be -done in a good and workmanlike manner and in compliance with all applicable building, zoning and other laws, ordinances, governmental regulations and requirements and in accordance with the requirements, rules and regulations of all insurers under the Policies required to be carried under the provisions of Section 9 hereof. SECTION 16. LIENS. If any lien shall be filed'against the interest of Landlord or of Tenant in the Facility or asserted against any rent payable hereunder either (i_) by reason of work, labor, services or materials supplied or claimed to have been supplied on or to the Facility at the request or with the permission of Tenant or of anyone claiming under Tenant, or (ii) for any other reason except: a claim against Landlord (and not `I'en,tnt) un - elated to the transactions herein conter;;plated, Tenant ithin thirty (30) days after notice of the f:il:1_11i ttlereof or the assert;ion t;hr roof a�; �i11: t such �.r;t:;, c ,u'c the .game to char ;C'( of -r'ocorrJ., or ef•j',.,_.tJ-,,-('1_y j.)I:'C'Jr,tit Lh,(, C:111�O1`i'r�ri�">'�1t rig f'r.o- '- clor;ure fAtel'(2of the P,'wJl:i.ty or ,;uch rcrrt.;,, by contc�.st, Payment, depo.".11" bond, order of court or othcl2J_iz;c. Nothing con- tained in this Leta ,c and /1t;i c ement ­)11,211 be con-.trued as constituting the express or implied consc�2zt to or permission of Landlord for the performance of any labor or services, or the furnishing of any materials that would give rise to any :;Lich lien against Landlord's interest in the vacili.Ly. Gii,:.rantor expressly guarantees the performance of Tenant of its obl.i )a'-J_ons uncler this Section 16. SECTION 17. INDIsMI.ITFICATION OF LANDLORD AND TRUSTEE. Tenant and Guarantor shall indemnify and save.Landlord and the Trustee harmless against and from all claims by or on behalf of any person, firm or corporation arising from the conduct or manage- ment of, or from any work or thing done on, the Facility during the Term, and against and from all_ claims arising during the term from (a) any condition of the Facility, of (b) any breach or default on the part of Tenant in the performance of any of its obligations under this Lease and Agreement, or (c) any act or negligence of Tenant or of its agents, contractors, servants, employees or licensees, or (d) any accident, injury or death of any person or damage to any property occurring in or about the ',Facility. Tenant .and Guarantor shall indemnify and save Landlord and the Trustee harm- les.s from and against all costs and expenses incurred in or in connection with any such .claim arising as aforesaid or in conriection with any action or proceeding brought thereon, and upon notice from Landlord or the Trustee, Tenant or Guarantor shall defend them or either of them in any such action or proceeding. SEC`T'ION 18. LANDLORD MAY PERFORM TENANT'S OBLIGATIONS'. If Tenant shall fail to keep or perform any of its obligations as provided in this Lease and P.greement in respect of: .(a) maintenance of insurance; (b) payment, of Impositions; (c) repair.-, and maintenance of, the I1'aci.l.ity; (d) compliance with legal or insurance requirenler2t; (e) keep=i-ric, tiie Pacil_i_ty lien free, or J_n mal::i_n ; of tiny other pay- ment or hF ��forrar�nc��.� cif' r:ny �>t.l�c�r oh]..-ii,-_tion, tholi 1',�tndlorcl ,lay (but shall not be sc) to do) upon the continuance of such failure on Tenant's part for sixty (60) days after written notice to Tenant, and without waiving or releasing Tenant from any obli.ga- tion, as an additional but not exclusive remedy, make any such payment or perform any such obligation, and all sums so paid by Landlord and all necessary incidental costs and expenses incurred by Landlord in performing such obligation shall be or at Landlord's option may be added to any installment of basic rent thereafter falling due, and if not so paid by Tenant, Landlord shall have the same rights and remedies as in the case of default by Tenant in the payment of basic rent. SECTION 19. DAMAGE TO FACILITY. (a) If, during the Term, the Facility shall be damaged by fire or other casualty, in excess of $25,000, Tenant shall im- mediately notify the Trustee, and unless Tenant shall have elected to exercise the option to purchase provided for in rection 29, the Tenant shall promptly and with reasonable diligence, proceed to repair, remodel and rebuild the Facility.. Tenant shall be reimbursed for the cost of the above out of the proceeds of the insurance upon receipt by the Trustee of: (1) A certificate signed by an officer. of Tenant: (i) requesting payment of a specified amount of such.proceeds; (A) describing in reasonable detail the (a) work and materials applied to the repair, remodeling and rebuilding, and in place, and (b) the equipment and machinery re- moved and purchased; (iii) stating that such specified amount: does not exceed the cost of such work and materials npplied an afopenaid, the cost of rcmavi.nL; z>>)d i)t�rr.�hr.�;;.i.n�; c�{u.i.i;�rl,�I)t; Nnd much twiW tinct Wfw r (u:; W; :i r)�nirinad ill • • connection tlierc: ,J .th,. p1.1l;; the fees of the arcii_i.tect or eriu;:ineer, ':i.f' ally; and (iv) stating that no part of itch cost his previously been made the basis of any request for the withdrawals of such insur- ance pro -cods. (2) A certificate of an architect or engineer selected by Tenant and approved in writing by the Trustee, which approval shall not be unreasonably withheld: (i) stating that the work and materials des- cribed in the accompanying officer's certificate were necessary or appropriate to the repair or rebuilding and are in place; stating that the amount specified in such certificate does not exceed the reasonable cost of such work and materials; and (iii) specifying the additional amount, if any, required to complete the repair, remodeling, or rebuilding. (b) If, during the Term, the Facility shall be damaged by fire or other casualty, in the amount of $25,000.00 or less, Tenant shall i.rnmediately notify Trustee and shall promptly proceed to repair the Facility. Tenant shall be reimbursed for the cost of repair out of insurance proceeds, if any, upon receipt by Trustee of a certificate in the form specified in subparagraph (ii) of paragraph (a) of this Section 1_9. (c) Any excess of proceeds recovered by the Tru-stee over and above the cost of performing the aforesaid repairs, remodelin- and rebu:i.ldJnC tnd remaval of equiprncnt rind purctla: c of other rri(:�nt ;tia1_:! be dopn"';.i_te(I by th(� and used _i s prov:i ded in the L'ond .G. SHICTION 20. CONDI;MNA`i'TON. ( a) TENANT'S OP`1':I:ON IN EVENT OIC' CONDEMNATION. ON. `1'he right of Tenant to excrc:i:,e its options to Purchase the Facility Lender the provisions of ecti.on <� shall remain uni,zipaired notWithc,tandinC, any taking by etn:inent; cio;r,clin of title to, or of the right of tomporary use of, all or part of the Faci.li.ty, and the fo.11o-wing provisions of this Section shall be construed in the light of the effect of any such option exercised by Tenant, and if Tenant shall exercise any such option and pay thepunccase price, the entire condemnation award shell belong and be paid to Tenant notwithstanding any other provisions Of this Section. (b) TAKING OF ALL OR SUBSTANTIALLY ALL _OF THE FA-CILI`I'Y.- _. If during the Term title to all or substontially all of the Facility shall be taken in any proceeding (hereinafter referred to as the Proceeding) involving exercise of the right of eminent domain, this Tease and Agreement (except as to the follo,,aing provisions of this paragraph (b)) and the Term hereof, and all right, title and interest of Tenant in the Facility shall_ come to an end at midnight of the thirty-first (31st) day after the ,resting of title pursuant y to the Proceeding, and the Trustee shall be entitled to receive the entire award, wl-ii.ch ai-;ard T'eiZant- hereby assigns to the Trustee. The phrase "net award" as used in each of the paragraphs of this Section means the total amount a;•jarded as compensation for the part of the Facility taken, plus damages to any part not taken, after deducting all attorneys' fees and other expenses and costs incurred in the Proceeding by the party to whvr(1 the award is payable and after deduct- ing any amounts which Tenant is entitled to receive pursuant to sub- section (d) of this Section. %If the net a;iard Shall be insufficient, ogether with the amount then in the several Accounts more fully escribed in the Bond 03_•di.n.ince, to pay i:l fill -.l oil the next 111tere"'t payment date tif.ter receipt of,' ttj(a:rrird, Ule rlmo�111t nece ;s�:ry to ply al_l..,.i";:i]., .T"i�i't'(::;U, lt'Ill;LLI:':J iftt:;, 1.'C'C)efllli[.:iOrl pY'('CII:LLlifl:%, and al.l_ other costs of rc dcnlpt:I.�11, 'fellant shcl:il pay such du1fic1_cllcy as additional I'eI1t. Ally excc.-,s of the 011111 of thc-l)ct award plus the amount then in the several Accounts more re fully described 1.21 the Bond Ordinance over the amoullt I'erIllil'ed to m,,, le the aforesaid payments. on account of the Bonds shall be paid to Tenant. For the purposes of this parr graph (b) and of 1)�1ra[;raph (c) of this Section, "all or substantially all of the Facility" shell be deemed to have been taken if the taking, under any Proceeding shall involve such 'an area, or such impairment of access to the Facility over public high- ways., that Tenant cannot in its opinion, evidenced by notice to Landlord and the Trustee given within thirty (30) days after the filing.of the Proceeding, reasonably operate its business in the remainder in substantially the same manner and as satisfactory to it as before. (C.) -.TAKING OF LESS THAN ALL -OR SUBSTANTIALLY ALL OF THE FACILITY. If during the Term title to less than all or substantially v all of the Facility shall be taken in any -Proceeding, neither the Term nor any of the obligations of e=ither party under this Lease and Agreement shall be reduced or affected in any way, and: (i) If any part of the Facility is taken or damaged, Tenant shall proceed to repair or rebuild the remaining part as nearly as possible to the condition existing im- mediately prior to such taking or damage, to the extent that the same may be feasible, subject to such alterations as Tenant may elect to make as permitted by Section 10; (ii) If no part of the Facility is taken or damaged, the net award shall be paid to the Trustee and deposited and applied as provided in the Fond Ordinance, but basic monthly rent :_hall not be thereby reduced. If, in such C. -Ise -11Y par. t of. the Facil:i_ty i.s t<lken or damaged, Tenant prompt-ly I'n(l 1-r_i_t'h dil-i_gerIce z)rc)(I-ed to rep':i.r arld rehit_i ld t'he Far -11.-1.1,y, "]lid tl-w rv�t �,�1�1rd, a f t;c1, rc::ilnl�ur�r,�- 18. 111ent of '.1'cta.1tit for :�Ilch repai.i• coat, :;hall be •pai.d to Lh(_ and depoai.L:ed and u:,ed a,: aet out in the Fond Ordinance. (e) TAKING FOR A LIMITED PERIOD. If.the use, for a limited period, of all or part of the Facility shall be taken by right of eminent domain, this Lease and Agreement shall not be thereby terminated and the parties shall continue to be obligated under all of its terms and provisions. If such taking is for a period of time ending on or prior to the expiration of the Term, Tenant shall be entitled to receive the entire amount of the award made -for such taking, whether by way of damages, rent or otherwise, and in such case shall, at the termination of the period of such taking and upon being restored to possession, restore the Facility as nearly as may be possible to the condition existing immediately prior to such taking. If such taking is for a period which extends beyond the expiration of the Term, Tenant shall be entitled to receive that portion of the entire award allocable to the period of time from the date of such taking to the date of the expiration of the Term and Landlord shall be entitled to the amount allocable to the remainder of such period. (d) AWARD FOR TENANT'S PROF'i?RTY. Tennant With the viri.tten right to receive any award made in any Proceeding for be unreasonably taking of Tciiant', o.:n p2 s)crt y and al _1 other meets; all of the awarded ottaer.:i, e th,tn asco:"pensati.on for the may this and of Tenant; in the part of the Facility taken and as da ,iages • to the part not taken. (e) TAKING FOR A LIMITED PERIOD. If.the use, for a limited period, of all or part of the Facility shall be taken by right of eminent domain, this Lease and Agreement shall not be thereby terminated and the parties shall continue to be obligated under all of its terms and provisions. If such taking is for a period of time ending on or prior to the expiration of the Term, Tenant shall be entitled to receive the entire amount of the award made -for such taking, whether by way of damages, rent or otherwise, and in such case shall, at the termination of the period of such taking and upon being restored to possession, restore the Facility as nearly as may be possible to the condition existing immediately prior to such taking. If such taking is for a period which extends beyond the expiration of the Term, Tenant shall be entitled to receive that portion of the entire award allocable to the period of time from the date of such taking to the date of the expiration of the Term and Landlord shall be entitled to the amount allocable to the remainder of such period. 1-9. SECT101\1 21. ASSIGNMENT AND SUBLETTING. With the viri.tten consent of the Landlord (Which consent shall not be unreasonably withheld, if the propor,c:.d a:;siLnee or sublessee meets; all of the criteria orit;irially i mpos ed upotl '1-'enanf;) , Tenant: may this Lease or sublet; the pLicility or part tliez•eof•, provided that no such 1-9. assignment or subletting and no dealings or transactions between Landlord or the Trustee and any subtenant or assignee shall relieve Tenant or Guarantor of any of its obligations under this Lease and Agreement, and Tenant and Guarantor shall remain as fully bound as though no assignment or subletting had been made, and performance by any assignee or subtenant shall be considered as performance pro tanto by Tenant, provided, however, that if Tenant shall assign this Lease and Agreement as part of a transaction involving the merger or consolidation of Tenant or Guarantor with or into, or the sale of all or substantially all of Tenant's or Guarantor's assets to, another corporation or corporations, and such assignee corporation shall expressly assume and agree to perform all of Tenant's obliga- tions under this Lease and Agreement, Tenant shall be released of all thereafter accruing obligations under this Lease and Agreement, but only upon condition that, and effective when, Tenant shall have furnished the Trustee and Landlord with evidence in the form of financial.statements certified by an independent certified public wholly owned subsidiary of Guarantor, provided the net asset value of the resulting corporation is not less than the net assets of Guarantor at the time of such merger or consolidation. Notwithstanding anything herein contained to the contrary, Tenant may sublet the Facility to Guarantor or may assign its interest hereunder to Guarantor without the necessity of obtaining Landl-ord's consent or approval. SECTION 22. FINANCIAL STATEUIENTS. Guarantor shall within one hundred and twenty (120) days after the end of each fiscal year of Guarantor, have an �,_nnual audit prel-;ared of its operation,-, and shall. pr�ompt)y sub;nit such audits, i%hich ,-hall include a consolidated balance of Tenant .nd_ of (,uarantor ;)nd their subsidir�r.ic� as at the end of ::,rich i':iscal y(,ar, ra1.1 in reasorlal>le det�.t:1.1_ and acco,,,r),-,nied 1,Y "1. or ("ert-iI'le''IL e of j.nt.jcrt�enc;c°n t; cc�,�t; .i_Led puhl9 c accountant or firm of accountants of recognized standing, establishing that the net assets of such assignee are .at least equal to the net assets of Guarantor as shown by the last previous such statement of Guarantor. Notwithstanding anything herein contained to the contrary, Tenant may merge with or into or consolidate with Guarantor or any wholly owned subsidiary of Guarantor, provided the net asset value of the resulting corporation is not less than the net assets of Guarantor at the time of such merger or consolidation. Notwithstanding anything herein contained to the contrary, Tenant may sublet the Facility to Guarantor or may assign its interest hereunder to Guarantor without the necessity of obtaining Landl-ord's consent or approval. SECTION 22. FINANCIAL STATEUIENTS. Guarantor shall within one hundred and twenty (120) days after the end of each fiscal year of Guarantor, have an �,_nnual audit prel-;ared of its operation,-, and shall. pr�ompt)y sub;nit such audits, i%hich ,-hall include a consolidated balance of Tenant .nd_ of (,uarantor ;)nd their subsidir�r.ic� as at the end of ::,rich i':iscal y(,ar, ra1.1 in reasorlal>le det�.t:1.1_ and acco,,,r),-,nied 1,Y "1. or ("ert-iI'le''IL e of j.nt.jcrt�enc;c°n t; cc�,�t; .i_Led puhl9 c accountants of rccoj7,n1,.Lc,d stand.i_n,, to Truot.eo, Landlord and St'Ifel, Nicolaus & Co., Inc. Tn addition, Tenant and Guarantor sh�:tll furnish to Trustee, Landlord, and Stifel, Nicolaus; & Co., Inc. cop=ies of all reports sent to Tenant's and Guarantor's stockholders other than routine reports enclosing; dividend checks. SEICTION 23. PRIORITY OF LEASE - EIGHTS AND RENLDIES OF TRUSTEE. This Lease and Agreement and the estate of Tenant hereunder are and shall continue to be superior and prior to the pledge of the Facility and the net rentals from the Facility in the Bond Ordinance. Tenant consents and agrees for the benefit of the Trustee and of the holders of the Bonds that until payment of all of the Bonds or until funds sufficient for such payment have been duly provided, this Lease and Agreement may not be effectively amended, changed or modified without the concurring written consent of the Trustee and of the holders of seventy-five percent (75%) in principal amount then outstanding of the bonds, all as permitted and provided in the Bond Ordinance, and that the Trustee has and may exercise, by right of subrogation to the Landlord, all rights and remedies of Landlord provided for in this Lease and Agreement or in the Bond Ordinance, either in its own name or in the name of Landlord. SECTION 24. NO CONVEYANCE BY LANDLORD. During the Term, Landlord shall not voluntarily sell, transfer or convey Landlord's interest in the Facility except to Tenant or. to the Trustee for the benefit of the bondholders and shall not encumber Landlord's interest in the Facility except for the security of the Bonds under the Bond Ordinance. Landlord does hereby assign to Trustee its rights under this Lease and Agreement for the benefit of the bondholders to the extent set out herein. SECTION 25. Rl:',MI DIES Al*-, CUJMULA`.i'IVE - NO IMPLIED WAIVER. Landlord, Tenant: and the Trustee, and Guarantor (if Guarantor Mas the duty and right under Section 30 of t;h-i.s Lease and Afryecmcnt } 2.1 . shall each be entitled to specif'ic performance, trod injunctive or other equitable relief for any breach or'threatencd breach of any of the provisions of this Lease and Agreement, notwithstanding availability of an adequate remedy at law, and each party hereby waives the right to raise such defense in any proceeding in equity. The specific remedies provided forin this Lease and Agreement are cumulative and not exclusive of any other remedy. The failure of either party to insist in any one or more cases upon strict per- formance shall not be construed as a waiver or relinquishment for the future. No acceptance of rent with knowledge of any default shall be deemed a waiver of such default. SECTION 26. IMPROVEMENTS AT END OF TERM - FIXTURES. Upon termination of this Lease and Agreement or of the*Term herein provided for by lapse of time or otherwise (except by exercise of Tenant's option to purchase) the Facility, as consituted at the time, shall be and become the property of Landlord without requirement of the payment of any compensation or consideration. The term "Facility" however, does not, for any purpose of this Lease and Agreement, include any of Tenant's property or additions or improvements made by Tenant not purchased or acquired from the proceeds of the sale of the Bonds and not constituting repairs, renewals or replace- ments of items 'so purchased or acquired, even though affixed or attached to the Land, buildings or structures in such manner as, under the laws of Kansas, the same might be considered to be fixtures and part of the real estate, and Tenant may, before or within a reasonable time after such termination remove all machinery, equipment, fixtures, additions and improvements not part of the Facility under the fore- going provisions of this Section 26. Tenant shall_ repair any damage to the Facility occasioned by such removal.. SECTION 27. CONSTRUCTION AND 111FORCEM1`114T. This Lease and Agreement "hall be construed and enforced in accordance with the l-'3ws of Kansas. in this and it, I,-, provided that elther porty shall or will make ORY paymollt or perforiu or refrain from performing any act or obligation, each such provision shall, even thout,h not, so expressed, be con5trucd as an express covenant to make such payment or to perform, or not to perform, as the case may be, such act or obligation.. Whenever in this Lease and Agroement it is provided that Tenant shall or will make any payment or perform or refrain from performing an,y act or obligation, each such provision shall., even though not so expressed, be also construed as an express covenant by Guarantor to -guarantee Tenant's obligations to make such payment or to perform or not to perform such act or obligation. SECTION 28. DEFAULT PROVISIONS. This Lease and Agreement is made on condition that if: (a) Tenant defaults in the due and punctual payment of basic rent or additional rent and such default continues for ten (10) days after such basic or additional rent is due; or (b) Tenant defaults in the keeping or performance of any other covenant or obligation herein contained on Tenant's part to be kept or performed, and Tenant fails to remedy the same within thirty (30) days after Landlord or the Trustee has given Tenant and Guarantor written notice,specifying such default, (or within such additional period, if any, as may be reasonably required to cure such default, if it is of such nature that it cannot be cured within said thirty (30) day period because of governmental restriction orother cause beyond the control of the Tenant ), and if Guarantor fails to remedy the default as provided in paragraph (b) of Section 30 of this Lease and Agreement; or (c) Tenant shall file a voluntary petition under the Bankruptcy Act, as amended; or an involuntary petition under the Bankruptcy Act, as amended, if filed against 'Tenant and Tenant, after full hearing is adjudged to be bankrupt, insolvent or unable to pay its debts, as they rr!at:ure; or Tenant an for the benefit, of its ci,cdi.tors,; or a reec�-i_ver, after f'ull lac,ar_ii,{;, be appoint( -2d or rCt(l.inc'C: t(-) tii,i(' }1:11'';1: W T(-,l�l.ilt'�, 1?11;,1i1�'.,, ; (W "MY PX1-'(11)1,1(:1) or s1 t;t<1_r.ilnu�l�f; ;;hr11.1 i.�:,uc� �t�;;�ir1:,t; I`crl,_1ni: v!ilc�i-'1,'lli,r�n thc! 1�'rl��:i_7i_ty, or, shall be t�Jkcn or at: tempted to be taken and t:hanic IS not released prior to judicial sale thereunder; then Landlord may at; Landlord's election, but. only with the written consent of the Trustee, then or at any time thereafter, acid while such event of default; shall continue, give Tenant and Guarantor written notice of intention to terminate this Lease and Agreement and the Term herein provided for oil a date specified therein, which date shall not be earlier than ten (10) days after such notice is given, and, if all defaults have not then been cured, on the date so specified Tenant's right to possession of the Facility shall cease and the Term, and this .Lease and Agreement, shall thereupon be terminated, and Landlord may re-enter and take possession of the Facility as of Landlord's former estate; and as an alternative remedy Landlord may, without terminating the Term of this Lease and Agreement, re-enter as above provided or take possession pur- suant to legal proceedings or pursuant to any notice provided for by law, and shall use reasonable diligence to relet the Facility, or parts thereof, for such term or terms (but not beyond the Term provided for in this Lease and Agreement) and at such reasonable rental or rentals and upon such othei.° terr;:s and conditions as Landlord may deem advisable, with the right to make alterations and repairs to the Improvements; and no such re-entry or taking of possession of the Facility by Landlord shall'be construed as an election on Landlord's part to terminate this Lease and Agreement unless the termination thereof be decreed by a court of competent jurisdiction, and no such repossession by Landlord shall relieve Tenant or Guarantor of their obligation to pay basic rent and additional_ rent, or of any of their other obligations under this Lease and Agreement, all of shish shall survive such repossession, and Teriant shall continue to pay the basic rent arid all additional rent .provided for in this Lease and Af;reement irhether or not the Facllity shall leave been relet, leas the net proceeds, :it' arty, of any reletting of the Facility after deduction of a 1 of I_,<1ndlord':; exl`)en.,t�s i.ri or :in with such rel.ett;:i_nf;, i ircl.ud_i.n,c :ithotit: l_.I_mitation all of t1110 of ('or' 1 or' take po;,sessiorr of the Facility without, termin:rt rrZ; ti:h:i.. I,ea::,e and Agreement or. the `Perm herein provided for, Landlord ►nay (but on] -y with the written consent of the Trustee) J)y notice to Tenant given at any time thereafter while Tenant is in default in the payment of basic rent or additional rent or in the performance of any other obligat-ion under this Lease and. Agreement elect to terminate this Lease and Agreement and the Term herein provided for, on a date to be specified in such notice which date shall be not earlier than ten (10) days after the giving of such notice, and if all defaults shall not have then been cured, on the date so specified, the Term, and this Lease and Agreement, shall thereupon be terminated. If in accordance with any of the foregoing provisions of this Section, Landlord shall have the right to elect to re-enter and take possession of the Facility, Landlord may enter and expel Tenant and those claiming through or under Tenant and remove the property and effects of both or either (forcibly if necessary) -without being deemed guilty of any manner of trespass and without prejudice to any remedies for arrears of rent or preceding breach of covenant. In the event of default under paragraph (a) above in the payment of basic or additional rent, Trustee shall notify Tenant and Guarantor of such default as soon as possible after the date that such rent was due but not paid, provided, howevZ2r, that the failure of Trustee to give such notice or the failure of Tenant or Guarantor to receive it shall not affect the existence of a condition of default hereunder. SECTION 29. TENANT'S OPTIONS TO PURCHASE THE FACILITY. (a) DURING TIME FIRST TEN YEARS OF THE TERIT1. At. any time prior to November 1, 1983, 'Tenant shall have the right and option to purchase the Facility, but only if': (i) Landlord shall. default in the performance of its obl_ic,,)tion under this Lea,:;e and Af recment,; or (ii) the Vacil:i.ty shall have been 'damatr,ed to the extent that it ctannot be retisonably re.;tored to the condition existing irnunediately preccd111g such damage within a period of seventy--f:i_ve (75) working days, or to the extent that Tenant is hereby prevented from carrying on its operations therein for a period of seventy --five (75) days, or to the extent that the restoration cost t,rould exceed the total amount of insurance carried on the Facility in accordance with the provisions of Section 9; or (iii) title to, or the temporary use for a period in excess of thirty (30) days of, the whole or part of the Facility shall be taken by eminent domain; (iv) as a result of changes in the Constitution of the State of Kansas*or of legislative action, or by the final decree or judgment of any court entered after `T'enant's contest thereof in good faith, this Lease and Agreement becomes void or unenforcible or impossible of performance in accordance with the intent and purposes of the parties as expressed in this Lease and Agreement, or unreasonable burdens or excessive lia- bilities are imposed upon either party to it. (b) DURING FINAL TEN YEARS OF THE TERM. On and after November 1, 1983, and during the remainder of the Term, Tenant shall have the unconditional right and option to purchase the Facility at any time. (c) PURCHASE PRICE. The purchase price payable if Tenant exercises Tenant's Option to purchase the Facility under the provisions of para.F;raph (a) of this Section shall, be the full amount necessary under the provisions of the Bond Ordinance to redeein and retire all out,,tandinlc�; Bonds (:I ncl.uding, 111t)-Iout limita- tion, pr3.zic:i.pal, interest (both due rind interest tip to the first call option date) redemption prerniums, if any, expenses of redemption, and Trustee's fees) upon the happening of any of the contingencies set forth in paragraph (a) of this Section, but after. deduction of any amount then in the several accounts described and provided for in the Bond Ordinance and available for such redemption, together with the sum of $2,500.00. The purchase price payable if Tenant exercises Tenant's option to purchase the Facility under the provisions of paragraph (b) of this Section shall be the full amount necessary under the provisions of the Bond Ordinance to redeem (on the first date thereafter on which all outstanding Bonds may be redeemed after giving the necessary notice) all the outstanding Bonds including without limitation principal, interest, redemption premium, if any, expenses of redemption, but after deduction of any amount then in the several accounts in the hands of the Trustee and available for application to such redemption, together with the sum of $2,500.00. In any case if no Bonds shall be outstanding at the time of purchase, or the redemption or retirement of the Bonds shall be or have been otherwise provided for, the purchase price of the Facility shall. be $2,500.00. (d) EXERCISE OF OPTIONS. Either of the foregoing options may be exercised by giving written notice to Trustee and the Landlord of the exercise thereof, specifying the time and place of closing, which shall neither be earlier than thirty (30) days, nor later than ninety (90) days, after the notice is given. At such closing Land- lord shall, upon receipt of the purchase price hereinabove specified, deliver to Tenant a special warranty deed conveying the Facility to Tenant free and clear of all liens and encumbrances except those to which title was subject when.conveyed to Landlord, or resulting from any failure of Tenant to perforin any of its obligations under this Lease and Agreement; provided, holeever, that: if such closing shr:.l1 be prior to the redemption of the Bonds such purchase price shall be 27. p I i d to the 'rru.';t'k:0 with II I`Stru(:t1')II"; to appa.y ;;ai.d proc:ced:; to ";uctl SECTION 30. TENANT'S PERFORMANCE GUARANTEED. Guarantor hereby expressly covenants as primary obligor to absolutely and un- conditionally assure and guarantee the performance of each and every obligation, duty and covenant of Tenant under this Lease and Agree- ment, including but not in any way limited to, the payment of basic rent, additional rent, or other sums of money due hereunder, and even though such covenants of guaranty are not elsewhere expressed in this Lease and Agreement. The words "guarantee," "assure," and like -words or phrases wherever used in this Lease and Agreement are understood and agreed to mean, include and be construed consistent with the following: (a) In the event that Tenant fails or refuses, for whatever reason, to perform any obligation to pay money hereunder, whether due to Landlord or Trustee or some other person, then it shall be the unconditional_ and absolute duty of Guarantor to pay such sums of money in the same amount and in the same manner as if paid by Tenant, provided, hoviever, that (i) Guarantor's duty to pay such sums shall arise upon receipt of written notice of nonpayirrent by Tenant from Landlord or `Trustee; and (ii) Should Guarantor fail to pay such surlis U,ittlin ten (10) day"', from the date of .rece:i_pt of s.;i.d i-,ritten notice, then LaI1d1oI'd may pur:�uc! al.l or .any of tE1e remcdac;; nv�,�i_l��b_Lc t;o it 1.uldcr th-j-:; 11-1d At;�r�rc:rnc:nt;, red empt:ion ot; the. C'12'.i.:Lc:;t po)_;;,:Lblc time, 1n which Cvent such Bond6 and the 13onci 02'diI1a21ce :;hill continue to be a licri on the Facility until redemption; and prov_i (led ful'ther, however, that if such Option is exercised under the provision:; of subparagraph (a) (iii) of this .;uch titic, .nay be .;ubjzct to the right:;, titles and intere'-is of +ny p�:rty h :.:i.r.g i:a ;gin or who is atterr,ptini to ta'•,e title to or use of all or part of the Facility by eminent domain. SECTION 30. TENANT'S PERFORMANCE GUARANTEED. Guarantor hereby expressly covenants as primary obligor to absolutely and un- conditionally assure and guarantee the performance of each and every obligation, duty and covenant of Tenant under this Lease and Agree- ment, including but not in any way limited to, the payment of basic rent, additional rent, or other sums of money due hereunder, and even though such covenants of guaranty are not elsewhere expressed in this Lease and Agreement. The words "guarantee," "assure," and like -words or phrases wherever used in this Lease and Agreement are understood and agreed to mean, include and be construed consistent with the following: (a) In the event that Tenant fails or refuses, for whatever reason, to perform any obligation to pay money hereunder, whether due to Landlord or Trustee or some other person, then it shall be the unconditional_ and absolute duty of Guarantor to pay such sums of money in the same amount and in the same manner as if paid by Tenant, provided, hoviever, that (i) Guarantor's duty to pay such sums shall arise upon receipt of written notice of nonpayirrent by Tenant from Landlord or `Trustee; and (ii) Should Guarantor fail to pay such surlis U,ittlin ten (10) day"', from the date of .rece:i_pt of s.;i.d i-,ritten notice, then LaI1d1oI'd may pur:�uc! al.l or .any of tE1e remcdac;; nv�,�i_l��b_Lc t;o it 1.uldcr th-j-:; 11-1d At;�r�rc:rnc:nt;, alld Lan�31��r�i mray by 'ippr'opriclLc proccc_(1111-"; or otherwit,c E'nfOl'CC :r1 J1 covCImnti; t0 pay 11102110 a�;;.li.rlJt TCIIiInt Or GI.I,Iralltor; and (iii) In the ca: -,e of default under flection 28 of this Leese and Pgree,fient, �-;frcr;eunder t•rri_tten notices of default ar to be clrt ir.,ul.t ;ncoue;l_y to 'Tenant and to Guarantor, nothing in this paragraph (a) of Section 30 shall be construed as altering or extending the time provided in said Section 28 for cure of default. (b) In the event that Tenant fails or refuses, for what- ever reason, to perform any other obligation, covenant, or condition under this Lease and Agreement, not provided for in paragraph (a) Of this Section 30, within the period of time allowed under paragraph (b) of Section 28 of this Lease and Agreement, then it shall be the unconditional and absolute duty and right of Guarantor to undertake and perform said obligation, covenant, or condition as fully as if performed by Tenant, provided, however, that (i) Guarantor's duty and right to undertake and perform such obligations, covenants and conditions shall arise only after receipt of written notice from Landlord or Trustee, except that in cases where simultaneous written notice is given to Tenant and Guarantor as provided in Section 28, then no further written notice to Guarantor shall be necessary; and (ii) Should Guarantor fail to perforin such obliga- tion, covenant or condition ,-ii.thin thirty (30) day; from the receipt of said written notice, then Landlord may pur- sue �i i_1 or a I, of the rerrled:i.e:_; availab-c to it under this Lease and l:�;recment, and L_111d1ord may by app):,Opriate pr.ocecdi_n ;:, or, oth(2r,:i_c,e erlf'on--e :;"lid c,bl:i.gcil;:i_on:,, covcn- a1111C; or col"lditioljl, a( �la_Tli;t. '1�f:ncirl�: or mlar,'ntor; "and • • (iii) :In the c isc of default undej, rection 8 of this Lease aril Agreement, whereunder written notices are to be sent simultnneously to Tenant and to Guarantor, this Section 30 shall not be construed as extending the time provided in said Section' 28 for cure of default; and (iv) Where Tenant has failed to perform an obliga- tion, covenant or condition which is, by its nature, personal to Tenant and not reasonably capable of perfor- mance by Guarantor, then Guarantor shall have an un- conditional and absolute duty to do any and all acts Which will or may result in performance by Tenant. Should Tenant still fail to perform within the time for cure prescribed in this Lease and Agreement, then Guarantor shall indemnify and hold Landlord harmless (d) Where Cuarantor under the provision.- of th1.s Section 30 perforrns any obligation, covenant or condition in the place and stead of Tenant, �:ny ri.ght or c_lairn of Guar'llitor against Ten,ant ari-sing on .ccount of such perfoi'ra-nce may be enforced by Gia�ar�ntor throul;h c3E���ropr.,�t� pxocecd_i.r�t.a or .�thertri..:>� , :in accordance tl.i.i;h the i_�_aw:; nppl.act,h.l a f:her��to, sand by reason of any loss resulting to it from said failure of Tenant to perform. (c) In the event that Guarantor is required by the pro- visions of this Lease and Agreement to pay surds of money or to perform any other obligation, covenant or condition, nothing herein shall be construed to mean that Guarantor is thereby substituted for Tenant for purposes of any other of the obligations, covenants and conditions of this Lease and Agreement. Tenant shall-, in such case, remain fully bound, and shall continue to be under a duty to pay all sum, and perform all obligations, covenants and conditions required by virtue of this Lease and Agreement (d) Where Cuarantor under the provision.- of th1.s Section 30 perforrns any obligation, covenant or condition in the place and stead of Tenant, �:ny ri.ght or c_lairn of Guar'llitor against Ten,ant ari-sing on .ccount of such perfoi'ra-nce may be enforced by Gia�ar�ntor throul;h c3E���ropr.,�t� pxocecd_i.r�t.a or .�thertri..:>� , :in accordance tl.i.i;h the i_�_aw:; nppl.act,h.l a f:her��to, sand • • governinL, thhc validity of such right or claim or the rncalh;, rind manlier of cnforci.zhr, right or claim, provided, however-, that Guarantor shall do noUhi_ng by 1,1c)y of such erhfor•cenient: thi<it; will or may give rise to a lien or claim to or on the Facility or any part thereof, and should any such lien or claim arise through or by virtue of szlch pr o;.cedi_ng:;, tflcn Guar �ntor• shrill indc :nni fy and hold Landlord hsrrrle:-s L>y 2•0ason of any lo.�s sustained by Landlord resulting from the attachment or foreclosure of any such lien o.r claim. (e) It is the intention of the parties to this Lease and Agreement that Guarantor shall be absolutely, unconditionally and fully bound, as primary obligor, to assure and guarantee the full performance of each and every obligation of Tenant, and to perform each and every obligation of Tenant itself as though it were named as Tenant herein, subject only to the procedural conditions and provisions of this Section 30. V SECTION 31. UNIFORM COMMERCIAL CODE. The parties contem- plate that the Facility shall consist of land, buildings and such equipment and fixtures as may be necessary to render the Facility operable. To the extent, however, that any such items may be re- garded as being ti,aithin the scope arid intent of the Uniform Commercial Code, the parties agree that t[-iey will execute and file such finan- cing statements and ta:ce such other action as may be reasonably required to protect the interest of the holders of the Bonds. SECTION 32. NOTICES. All notices, demands and requests which may or are requ-fired to be given by either party to the other or• to or by ti -ie Trustee shrill be in writing and each shall be d,:emed to have been properly given ,Then served per-son,.hlly on an executive offic_r Of the party to whhorn such notice is to be -,i.ven, or when sentpostage prepaid by rei;i:Aercd or certified mail , ref,urrh receipt req�_le:.;ted, 31. by deposit thereof in a duly constituted United States post office or branch thereof located in one of the present states of the United States of America, in a sealed envelope addressed as follows: if intended for Tenant: The Hill Company 9th & Grant Streets P. 0. Box 2129 Amarillo, Texas 79105 or, if intended for Guarantor: Connally Implement Supply Co., Inc. 9th & Grant Streets P. 0. Box 2129 Amarillo, Texas 79105 or, if intended for Landlord: City of Salina Salina, Kansas 67401 For attention of City Clerk or, if intended for Trustee: First National Bank Salina, Kansas 67401 For attention of Trust Officer Either party or the Trustee may change the address and name of addressee to which subsequent notices are to be sent to it by notice to the others given as aforesaid, but any such notice of change, if sent by mail, shall not be effective until the fifth (5th) day after it is mailed. SECTION 33. ADDITIONAL COVENANTS BY TENANT AND GUARANTOR. Tenant and Guarantor are and each will remain at all times during the term hereof corporations duly organized and validly existing under the laws of their respective states of incorporation, and duly qualified and empowered to do business in the State of Kansas and to engage in the transactions contemplated hereby, with full lawful power and authority to enter into and perform this Lease, acting by and through their duly authorized officers. The execution of this Lease and the performance of its terms by Tenant and Guarantor will not result in a breach of or a default under their respective charters or bylaws, or, any other indenture, agreement or :instrument to whish they or either of them are parties or by which they or either of them may be bound or affected. 32. a,C'.LIO;v '3111. A11131_iRnGL. Tenant covenants and at;meas th;,rt it Will not. cause or, pormit to be made, whether by Trustee or otherwise, any use of the proceeds of the Bonds which., if such use had been reasonably expected on the date of issuance of said Bonds, would have caused said Bonds to be arbitrage bonds within the meaning of Section 103(d) of the Internal Revenue Code of 1.9511, as amended. Tenant further covenants and agrees that it will comply with all. applicable requirements of said Section 103(d) and the rules and regulations of the United States Treasury Department thereunder for so long as any of said Bonds remain outstanding and unpaid. SECTION 35. INVESTMENT TAX CREDIT; DEPRECIATION. The parties have entered into this Lease in contemplation that Tenant shall be entitled to claim the full benefit of (1) any investment credit against federal or state income tax allowable with respect to expendtures of the character contemplated hereby under any federal or state income tax laws now or from time to time hereafter in effect, and (2) any deduction,for depreciation of the improvements to be constructed or purchased hereunder from federal or state income taxes. Landlord agrees that, it will upon Tenant's request execute all_ such elections, returns or other documents which may be .reasonably necessary or required to more fully assure the availability of such benefits to Tenant. SECTION 36. RECORDING. A brief synopsis of this Lease and Agreement and every assignment and modification hereof shall be recorded in the Office of the Register of Deeds of Saline County, Kansas. SECTION 37. CAPTIONS. The captions or headings of the sections and paragraphs of this Lease and Agreement are for con- venience only and in no ti,;ay define, Limit or describe the scope or intent of any provision of this Lease and AF_;reement . SE'CTIOJvr 38. TRUSTEE. The Trust(�e and P(i.ying Agent referred to here-1-1-1shr:�1.7, be the `-*0`st Nation zll Batik- and TY'ust: Coml-)rIny, 1JC;('1�,�, �n���� [(:?1' r��il'. �)rU`✓-I � i (�;I;, �")� �,�11,, � �1:>r ;Itl�l �: ;1'�'�'1�1� ili, ,;}l;l �..� ���I Cl�.i '11111 i_nurc t o the bcnef.i.t•' tlrc liar°ties he i eto and t're r re:�pect:ive succosors and as.si.t;ns, provi_dcd, ho�vcver, that; no one shall lrave any benefit or acqu_Ire any i,io;hts urldcr. this Lease aril A ;rcernent; pur- suant to any conveyance, transfer or assignment in violation of any of its provisions. IN WITNESS ',;'i}?PEO:', Landlord, beim hereunto authorized by valid and subsist_i.n`; ordinances duly adopted, has caused this Lease and Agreement to be executed and delivered in its name and behalf by and through its Mayor and City Clerk; and Tenant, pursuant to valid and subsisting resolutions of its Board of Directors, has caused this Lease and Agreement to be executed and delivered in its name and behalf by Its officers thereunto duly authorized; and Guarantor, pursuant to valid and subsisting resolutions of its Board of Directors, has caused this Lease and Agreement to be executed and delivered in its name and behalf by its officers thereunto duly authorized, all the day and year first above written. ATTEST: CITY CLERK ATTEST: SE'URETAHY A`}'!'I?; )T : CITY OF SALINA, KANS (LANDLORD) B�� y MAYO THE HILL COMPANY (TENANT) By P S1 DENT CONIIf�.1:IlY 7,PLL;Ii};N`.P SUI'}'LY CO. , Ct1dC. (GI]1,.. {hiITOiz) • AC KNOt-1I.ED'; ,i1 N'T'S • 1 IN 1-IITNESS !`THEREOF, and affixed my official seal, �. .20E ...I:y PL'DLII un,y, Kansas My Commi5s,on Expires Nov. 12, 1974 I have hereunto subscribed my name the day and year last above written. My Commission Expires: `nom-- 1-�, 15'14 STATE OF _ A 5 I ) ss. COUNTY OF P L,.- ) L) - - &C -A— - Notary Public T �, r BE IT REMEi,BERED that on this ?� day of 1973, before me, a notary public in nd for said county and state, c am e tiH i t- r S �, l _,1+� i -}C. 6 ,z�i s l_�. , 6 '-n., of The Hill_ Company, a Texas corporation, to me personall,? known to be the same person who executed. the foregoing instrument, and duly acknowledged the execution of the same for and on behalf and as the act and deed of said corporation. IN WITNESS 1%THERE0F, I have hereunto subscribed my name and affixed my official seal on the day and year last above written. JAN CE ROE STATE NOTARY PUBLIC =** _ Saline County, Kansas Uly Commission Expires Nov. 12, 1974 I1ot ry Public I'•Zy Commis.:ion Expires: �� l�, 19174 OF I LI, __ , 1' I' 7 All (., i , nl;' 11 Iltai„it r 1C 111 f nd I'i,t -lkt Co1111f,`r I I STATE OF KANSAS ) ) ss. SALINE COUNTY ) BE IT 1973, before me, RI i':IIIRI ICED that on a notary public this day of -, ,_ in and 1'or said county and state, carne r��� ,.- r , r ��� Z , I•?ayor. of the City of Salina, Kansas, _ .z to me personally knor,n to be the salve person who executed the foregoing instrument, and duly ackno�,,1.edged the execution of the same -for and on behalf and as the act and deed of said City. 1 IN 1-IITNESS !`THEREOF, and affixed my official seal, �. .20E ...I:y PL'DLII un,y, Kansas My Commi5s,on Expires Nov. 12, 1974 I have hereunto subscribed my name the day and year last above written. My Commission Expires: `nom-- 1-�, 15'14 STATE OF _ A 5 I ) ss. COUNTY OF P L,.- ) L) - - &C -A— - Notary Public T �, r BE IT REMEi,BERED that on this ?� day of 1973, before me, a notary public in nd for said county and state, c am e tiH i t- r S �, l _,1+� i -}C. 6 ,z�i s l_�. , 6 '-n., of The Hill_ Company, a Texas corporation, to me personall,? known to be the same person who executed. the foregoing instrument, and duly acknowledged the execution of the same for and on behalf and as the act and deed of said corporation. IN WITNESS 1%THERE0F, I have hereunto subscribed my name and affixed my official seal on the day and year last above written. JAN CE ROE STATE NOTARY PUBLIC =** _ Saline County, Kansas Uly Commission Expires Nov. 12, 1974 I1ot ry Public I'•Zy Commis.:ion Expires: �� l�, 19174 OF I LI, __ , 1' I' 7 All (., i , nl;' 11 Iltai„it r 1C 111 f nd I'i,t -lkt Co1111f,`r I I �! /% �. came _cL1=_L _— kl Z -L L J _--' — %C � ' __ of Connally Impl.cm�nt St-ippIy Co. , 1_nC . ; a `i.'cx,is corpot',Otion, to mcg personally known to be the same per:�:;on rrho �>>�,cuted .i;tie Torei;o_in� in:�t;rume and duly acknowledf; d the ex<>cution o1' the same for .and on behalf and as the act and deed of said corporation. 1N l'd-l'1'NL,SS WH1FZiIOT', I have hereunto subscribed my name and affixed my official seal on the day and year last above written. JAN--. "`�. STATE h; . ssti. Saline My co otary Public My Commission Expires: I Misc. )k L.�p_.,G,.. Pa e t N 0T I C E ; Public notice is hereby given that the City of Salina, Kansas, a municipal corporation, has leased to The Bill Company, a Texas corporation duly qualified to do business in the State of Kansas, the following described property located in Saline County, Kansas, to -wit: A tract of land lying in the Southwest Quarter . (SIV/4) of Section Fourteen (14), Township Fourteen (14) South, Range Three (3) Nest of the Sixth Principal Meridian in Saline County, Kansas, described as follows: from the south- -west corner of said Southwest Quarter (SIV/4), thence east on an assumed bearing of North 9000' East along the south line of said Southwest Quarter (SIV/4) a distance of 1771 feet to a point on the.east right-of-way line and parallel with the east line of U.S. 81 Highway Bypass extended, thence North 0°58145" East along said east right-of-way line and parallel with the east line of said Southwest Quarter (SIV/4) a distance of 1309.5 feet to the Point of Beginning, thence North 9000' east parallel with south line of said Southwest Quarter (SIV/4) a distance of 875.30 feet to a point on east line of said Southwest Quarter, said - east line also being the west right-of-way line of the Missouri Pacific Railroad, thence South 0058145" (Vest along the east line of said Southwest Quarter (SIV/4) a distance of 300 feet, thence South 9000' Nest parallel with the south line of said Southwest Quarter (SIV/4) a dist-ante of 875.30 feet to a point on the east right-of-way line of U.S. 81 Highway Bypass, thence North 0°58145" East along said east right-of-way line a distance of 300 feet to the point of beginning, being the same land described in Saline County, Kansas Recorder deed book 172 page 242, an indenture between the Salina Building Company, Inca and John Deere Plow Company of Kansas City. Said lease is dated as of November 1, 1973, expires November 1, 1985, provides for an early term-ination-in the event of the happening of certain contingencies, provides an option to purchase the leased facility for prices and on terms set forth in said Lease, and contains various other covenants, terms and conditions. The obligation of The Hill Company, as Tenant, under said Lease, is absolutely and unconditionally guaranteed-by-Co'nnally'> Impl-emcnt Supply Co., Inc., a Texas corporation duly qualified to do business in the State of Kansas. A copy of said lease is and Misc. Book _l6l�__ Page. .. a Misc. Book _,ld4 Page 'gill remain permanently on file in the office of the City Clerk of Salina, Kansas. The Lessor's interest in said lease has been assigned by the City of Salina, Kansas, to First National Brink and Trust Company, Salina, Kansas, Trustee, as additional security for the purposes set out in said assignment in connection with the issuance by the City of Salina, Kansas, of $.265,000.00 Industrial Development Revenue Bonds, Series 11-1-73, of'said City; such bonds being payable solely and only from the money and revenue.received from the fees charged and rentals received for the use of the leased facility, and all of the above described property and the net rentals therefrom have been pledged to the payment of said Industrial Development Revenue Bonds. Executed by authority of the governing body of the City of Salina, Kansas, this / 2— day of" �1,v1✓ , 1973. THE CITY OF SALINA, KANSAS B �{liI2F�,y Mayor Jack Weisgerber ATTffT : f � r;s City Clerk D. L. Harrison 1 ACKNOWLEDGMENT STATE OF KANSAS. ) ss: COUNTY OF SALINE ) STATE OF KANSAS COUNTY OF SALINE ss FILED FOR RECORD IN MY OFFICE ON NOV 2 01973 AT q,5;/Q-0TL CK1�11. ANDULY RECORDE,O��-�3 ((�A 0 _a Pr;GE��''SS?2 9 � REG. OF DEEDS BE IT REMEMBERED that on this _�,; day of 1973, before me, a notary public in and for the county and state aforesaid, came I. _, i.. , Mayor of the City of Salina, Kansas,' a municipal corporation, to me personally known to be the same person who executed the foregoing instrument and duly acknowledged the execution of the same, for and on behalf and as the act and deed of said municipal corporation, IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed my official seal the day and year last above written. JANICE ROE STATC NOTARY PUCLIC —✓ii 11 �J Saline County, Kan,.,; "f my COITIMIS51C11 Cxp_ ire _ Notary Public Nov. 12, 1971 Janice Roe My Conimi.ssion Expires: 2. / Misc. DOOR ! a �.. P(19C .,