Agenda - Economic Development Authority - 05/24/2005

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The interest rate on the advance shall be 200 basis points greater than (1) the rate of interest at which the Landlord borrowed the money advanced or, (2) if the Landlord did' not borrow the money, the rate of seven percent (7.00%) per annum. Section 7.5. Landlord Access to Proj.ect. Tenant agrees that Landlord shall have the fight at ali reasonable times upon reasonable notice to examine and inspect the Project. Tenant further agrees that Landlord shall have sueh rights of access to the Project as may be reasonably necessary to cause the proper maintenance of any portion of the Project in the event of failure by Tenant to perform its obligations hereunder. Section 7.6. Transfer of Functions. The Tenant covenants that it will, at all times during the Term of this Lease, use the Project to the fullest extent possible in the governmental functions of the Tenant: The Tenant fuPther covenants that, to the.extent it may lawfully do so under the laws Of'the State of Minnesota, and to the extent it would not obgiate the Tenant's right to terminate this Lease at the end of any Fiscal Year, it will not transfer any governmental functions from the Project to any other location during, the Term of this Lease and will not otherwise eliminate or'diminish the use of the Project by the Tenant in its governmental functions unless the Tenant promptly replaces such governmental functions with other functions or programs of the Tenant which will be substituted at the Project for the transferred functions for the remaining Term of this Lease. Section 7.7. Nonsubstitution. The Tenant agrees, to the extent permitted by law, and to the extent it would not obviate the Tenant's right to term/hate this Lease, not to construct, own, lease or operate any similar facility to the Project which would materially diminish the Tenant's need for the Project. The Tenant further covenants to the extent permitted by law, and to the extent it would not obviate the Tenant's right to terminate this Lease, that at all times during the term for the Lease, it will use the Project to the fullest extent possible in the governmental functions of the Tenant and that it will not transfer any governmental functions from the Project to any other location, so as to eliminate the use of the Project by the Tenant, unless the Tenant promptly replaces such functions with other functions or programs of the Tenant which will be substituted for the remaining term of the Lease. 40 1763908vi