OTHER-2021-024 Lease Modification

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4. School Board's Assumption of Obligations; County's Transfer of Rights. Sections 7.1 and 7.2 of the Original Lease are hereby amended to read as follows. The purpose of these amendments is to conform the cross references to the proper references in the 2021 Trust Agreement. 7.1 Assumption of Obligations. (a) The School Board assumes the County's obligations under Trust Agreement Sections 5.04 (care and use), 5.05 (utilities), 5.08 (compliance with requirements), 5.09 (regarding use and operation), 5.11 (property damage insurance), 5.14 (payment of taxes and other governmental charges & prevention of liens), 5.16 (regarding notice of damage, repair or replacement from Net Proceeds), and 6.02 (compliance with environmental laws). The parties agree that the School Board may fulfill its requirements to maintain insurance through pooled risk and similar programs sponsored by or affiliated with the North Carolina School Boards Association, such as the North Carolina School Boards Association Insurance Trust. (b) Notwithstanding the foregoing, the County retains its rights under Article V of the Trust Agreement to direct the use of Net Proceeds. All payments of Net Proceeds are to be made to the County. 7.2. Transfer of Rights. In order to allow the School Board to carry out its obligations under Section 7.1, the County transfers its rights under Section 5.10 of the Trust Agreement (regarding maintenance, repairs and modifications of and to the Leased Property). Nothing in this Section, however, may be construed as in any way assigning or delegating to the School Board any of the County's rights or responsibilities to make decisions regarding the School Board's capital and operating budgets. 5. Confirmation of Remaining Lease Terms. Except as provided by this Agreement, the parties ratify, approve and confirm the terms of the Original Lease. [The remainder of this page has been left intentionally blank.] 3