Lease of Project and Site; No Merger. Contractor hereby leases the Project to District, and District hereby leases said Project from Contractor, upon the terms and conditions set forth in this Facilities Lease. The leasing by Contractor to District of the Project shall not effect or result in a merger of District's leasehold estate pursuant to this Facilities Lease and Contractor's title to improvements (prior to the end of the Facility Lease's Term) under the Site Lease, and Contractor shall continue to have and hold a leasehold estate in said Site pursuant to the Site Lease throughout the term thereof and the term of this Facilities Lease. As to the Site, this Facilities Lease shall be deemed and constitute a sublease.