Lessee agrees that it will, as soon as it is permitted to do so by competent governmental authorities, install and build a new swimming pool in accordance with a sketch of the same which is attached to and made a part of this agreement and will erect _________ cabanas and a cabana deck in accordance with a sketch of the same which is attached to and made a part of this agreement, will install a central air-conditioning system of a kind and type to be agreed upon by the parties; will tile all guest bathrooms in accordance with a sketch which is attached to this agreement, will redecorate the lobby by refurnishing the same either with new furniture or reupholstering the existing furniture, by repainting, and by installing new drapes and rugs and by doing such other things as may be necessary to give the lobby a pleasing and inviting appearance; and will modernize the front and ocean-side entrances of the building in accordance with a sketch of the same attached to this agreement.

Notwithstanding the fact that lessee undertakes to accomplish the above improvements as soon as it is possible to do so, the parties agree that at such time as lessee has spent for such improvements $_____, it shall not be required to continue with such improvements, excepting only as the money for such improvements becomes available from the net proceeds of the hotel, and lessee shall not be required to furnish additional money, in excess of $_____, other than that money which may be obtained by financing which can be repaid out of the net proceeds of the hotel operation, and providing further that the total amount of money to be expended by lessee as provided above, shall not be more than $_____.

At such time as the improvements are made and completed, they shall immediately become the sole and exclusive property of lessor and shall be returned to lessor upon the expiration date of this lease agreement, free from any lien of any kind or nature so far as any of the actions of lessee are concerned.