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Page 8 <br />(e) The amount necessary to capitalize interest <br />on the Amendment No. 49 Bonds and the Act <br />No. 9 Bonds from the date of their issuance <br />until the date of the commencement of the <br />basic annual rent as specified in Section 203 <br />of this Lease Agreement. <br />The above described expenses and costs (that is, those <br />expenses set forth in sub -paragraphs (a) to (e), inclusive above) <br />will be hereinafter referred to as "Lessor's expenses and costs". <br />With regard to (c) above, Lessee agrees that Lessor shall have <br />the right to authorize other persons, firms and corporations to <br />connect to and use the said utility lines and facilities that <br />are to be furnished by Lessor to the boundary of the site, pro- <br />vided that in the case of each such connection the utility involved <br />shall determine and advise the parties hereto that such connection <br />will not impair the service to Lessee. <br />Section 108. It is understood that, subject to the limi- <br />tations in the proceedings authorizing the Amendment No. 49 Bonds <br />of Independence County and the Act No. 9 Bonds of Lessor, said <br />limitations being not to exceed $500,000 in unconverted principal <br />amount of Amendment No. 49 Bonds and $1,000,000 in unconverted <br />principal amount of Act No. 9 Bonds, there will be initially issued <br />bonds in the aggregate principal amount necessary to pay $1,300,000 <br />of the construction cost (as defined in Section 106 of this Lease <br />Agreement), and the full amount of Lessor's expenses and costs <br />as defined above in Section 107(x) to (e), inclusive, it being <br />understood that the Lessee is responsible for the construction <br />cost in excess of $1,300,000 as specified in Section 105. Since <br />the total unconverted principal amount of the Act No. 9 Bonds <br />being initially issued 1s less than the total authorized unconverted <br />principal amount, as set forth above, additional Act No. 9 Bonds <br />up to the maximum authorized unconverted amount may be subsequently <br />issued for the purpose of constructing additional improvements, <br />extensions and betterments to the project, or purchasing and <br />installing additional machinery, equipment and fixtures. In the <br />event of the issuance of any such additional bonds, a supplemental <br />agreement shall be executed by the parties specifying the additional <br />basic annual rental that shall be paid by Lessee because of such <br />additional construction work or such additional machinery, equip- <br />