PARRIS N. GLENDENING, Governor

Ch. 603

II.      The Authority and Baltimore City shall each annually
contribute $200,000 to the Capital Improvement Reserve Fund; and

III.    Baltimore City shall be solely responsible for all operating
deficits and capital improvements:

1.       Prior to the completion of the expanded and renovated
BALTIMORE Convention Center facility; and

2.       After June 30, 2008; and

C. Provide for remedies upon default which include the right of
the Authority or the State, in the event of a material default by Baltimore City which has
not been corrected after a reasonable notice and cure period, to immediately assume
responsibility for maintenance and repairs of the BALTIMORE Convention Center facility
and offset the costs of such maintenance and repairs against other amounts owed by the
Authority or the State to Baltimore City, whether under the operating agreement with
Baltimore City or otherwise; AND

(6) WITH RESPECT TO SITE ACQUISITION AND CONSTRUCTION OF AN
OCEAN CITY CONVENTION CENTER FACILITY, HAS SECURED, AS APPROVED BY THE
BOARD OF PUBLIC WORKS:

(I) A LEASE OR OTHER WRITTEN AGREEMENT WITH OCEAN CITY
PURSUANT TO WHICH:

1. OCEAN CITY AGREES TO ISSUE BONDS NOT LATER THAN
THE DATE OF THE AUTHORITY'S BOND ISSUANCE AS AUTHORIZED UNDER §
13-712(A)(1) OF THIS SUBTITLE AND TO CONTRIBUTE $9,800,000 $14,700,000 OF THE
PROCEEDS FROM THE SALE OF THE BONDS FOR THE CAPITAL COSTS OF THE
EXPANSION OF THE OCEAN CITY CONVENTION CENTER;

2. THE AUTHORITY AGREES TO ISSUE BONDS AS
AUTHORIZED UNDER § 13-712(A)(1) OF THIS SUBTITLE AND TO CONTRIBUTE
$19,600,000 $14,700,000 OF THE PROCEEDS FROM THE SALE OF THE BONDS FOR THE
CAPITAL COSTS OF THE EXPANSION OF THE OCEAN CITY CONVENTION CENTER;

3.       OCEAN CITY AND THE AUTHORITY AGREE THAT IF THE
ACTUAL CAPITAL COSTS OF THE EXPANSION OF THE OCEAN CITY CONVENTION
CENTER ARE LESS THAN $29,400,000, THE SAVINGS WILL BE ALLOCATED:

A.      TWO-THIRDS ONE-HALF TO THE AUTHORITY; AND

B.       ONE-THIRD ONE-HALF TO OCEAN CITY;

4.       OCEAN CITY AGREES TO PROVIDE THE OCEAN CITY
CONVENTION CENTER SITE, AS DEFINED IN § 13-701(L) OF THIS SUBTITLE, FOR THE
EXPANSION AND RENOVATION OF THE OCEAN CITY CONVENTION CENTER; AND

4. 5. OCEAN CITY AGREES THAT IF THE ACTUAL CAPITAL
COSTS OF THE EXPANSION OF THE OCEAN CITY CONVENTION CENTER EXCEED
$29,400,000, OCEAN CITY WILL PAY ANY ADDITIONAL CAPITAL COSTS OF THE
EXPANSION; AND

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