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State of California and any public corporation, political subdivision, city, county, district or <br /> agency.of any thereo�, excepting only that the City may without charge use the services and <br /> facilities of the Enteiprise. <br /> Section 5.16. Eminent Domain Proceeds. <br /> If all or any part of the Enterprise shall be taken by eminent domain proceedings, <br /> the Net Proceeds thereof shall be applied as follows: <br /> (a} If (1) the City prepares a report showing (i) the estimated loss of annual <br /> Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent domain <br /> proceedings, (ii) a general description of the additions, betterments, extensions or improvements <br /> to the Enterprise proposed to be acquired by the City ffom any Net Proceeds, and (iii) an estimate <br /> of the additional annual Net Revenues to be derived from such additions, betterments,extensions <br /> or improvements, and (2) on the basis of such certificate, the City determines that the estimated <br /> additional annual Net Revenues will sufficiently offset the estimated loss of annual Net Revenues <br /> resulting from such eminent domain proceedings so that the ability of the City to meet its <br /> obligations hereunder will not be substantially impaired (which determination shall be final and <br /> conclusive); then the City shall promptly proceed with the acquisition of such additions, <br /> betterments, extensions or improvements substantially in accordance with such report and such <br /> Net Proceeds shall be applied for the payment of the costs of such acquisition,and any balance of <br /> such Net Proceeds not required by the City for such purpose shall be applied to prepay the <br /> Installment Payments pursuant to Section 6.01(a) hereof, and any Parity Obligations, on a pro <br /> rata basis in the manner provided herein and in the instruments authorizing such Parity <br /> Obligations. <br /> (b) If the foregoing conditions are not met, then such Net Proceeds shalt be <br /> applied to the prepayment of Installment Payments as provided in Article VI hereof. <br /> Section 5.17. Further Assurances. <br /> The City will adopt, deliver, execute and make any and all further assurances, <br /> instruments and resolutions as may be reasonably necessazy or proper to carry out the intention or <br /> to facilitate the performance hereof and for the better assuring and confirming unto the Authority � <br /> of the rights and benefits provided to it herein. <br /> Section 5.18. Release and Indemnification Covenants. <br /> The City shall and hereby agrees to indemnify and save the Trustee and the <br /> Authority, their officers, directors, agents, employees, successors or assigns harmless from and <br /> against all claims, losses and damages, including legal fees and expenses, azising out of (i) the <br /> use, maintenance,condition or management of,or from any work or thing done on,the Project by <br /> the City, (ii) any breach or default on the part of the City in the performance of any of the City's <br /> obligations under the Installment Purchase Contract or the Indenture, (iii) any act of negligence <br /> of the City or of any of its contractors, servants, employees or licensees with respect to the <br /> Project, (iv) any act of negligence of any assignee or sublessee of the City, or of any agents, <br /> , 19 <br /> 338529_1.DOC <br />