# EDGAR Filing Document

**Accession Number:** 0001823587
**File Stem:** 0001437749-26-004565
**Filing Date:** 2026-2
**Character Count:** 525785
**Document Hash:** 8f50b1b0416f5c57a6eafb0615f83438
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-004565.hdr.sgml**: 20260218

**ACCESSION NUMBER**: 0001437749-26-004565

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 17

**CONFORMED PERIOD OF REPORT**: 20260212

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260218

**DATE AS OF CHANGE**: 20260218

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sky Harbour Group Corp
- **CENTRAL INDEX KEY:** 0001823587
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 852732947
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39648
- **FILM NUMBER:** 26649330

**BUSINESS ADDRESS:**
- **STREET 1:** 1601 DODGE STREET
- **STREET 2:** SUITE 3300
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68102
- **BUSINESS PHONE:** (402) 225-6511

**MAIL ADDRESS:**
- **STREET 1:** 1601 DODGE STREET
- **STREET 2:** SUITE 3300
- **CITY:** OMAHA
- **STATE:** NE
- **ZIP:** 68102

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Yellowstone Acquisition Co
- **DATE OF NAME CHANGE:** 20200903

?xml version='1.0' encoding='ASCII'? ysac20260217_8k.htm

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF THE**

**SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported) **February 12, 2026**

**Sky Harbour Group Corporation**

(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Delaware** | **001-39648** | **85-2732947** |
| (State or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS Employer<br> Identification No.) |

---

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| | |
|:---|:---|
| **136 Tower Road, Suite 205**<br> **Westchester County Airport**<br> **White Plains, NY** | **10604** |
| (Address of principal executive offices) | (Zip Code) |

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**(212) 554-5990**

Registrant's telephone number, including area code

(Former name or former address, if changed since last report.)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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| | | |
|:---|:---|:---|
| **Title of each class** | **Trading** <br> **Symbol(s)** | **Name of each exchange on** <br> **which registered** |
| Class A common stock, par value $0.0001 per share | SKYH | The New York Stock Exchange |
| Warrants, each whole warrant exercisable for one share of Class A common stock at an exercise price of $11.50 per share | SKYH WS | The New York Stock Exchange |

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**Item 1.01 Entry into a Material Definitive Agreement**

On February 12, 2026, Sky Harbour Capital III LLC (the "Borrower"), an indirect, wholly-owned subsidiary of Sky Harbour Group Corporation (the "Company"), completed a $150 million financing through the issuance of Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026 (the "Series 2026 Bonds"). The Series 2026 Bonds were issued by the Public Finance Authority of Wisconsin, a multi-jurisdictional conduit issuer (the "Issuer"), pursuant to a Trust Indenture, dated as of January 1, 2026 (the "Indenture") and effective as of February 12, 2026, between the Issuer and UMB Bank, N.A., as trustee (the "Bond Trustee"). The proceeds of the Bonds were used to make a loan (the "Loan") to the Borrower pursuant to a Loan Agreement, dated as of February 1, 2026 (the "Loan Agreement"), between the Issuer and the Borrower, and assigned to the Bond Trustee. The Series 2026 Bonds were issued in a limited offering (the "Offering") pursuant to a Limited Offering Memorandum dated January 29, 2026 (the "Limited Offering Memorandum") to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") or accredited investors within the meaning of Rule 501(a) under the Securities Act. The borrowings under the Loan Agreement are guaranteed (the "Guarantee") by Sky Harbour LLC, the Company's primary operating subsidiary ("Sky LLC"), and Sky Harbour Holdings IV LLC, a wholly owned subsidiary of the Sky LLC (the "Pledgor"). Pursuant to the Indenture, all of the Issuer's right, title, and interest in the Loan Agreement (except for certain unassigned rights) were assigned to the Bond Trustee. The Bonds are secured by the Loan Agreement and the residual cash flows of certain of the Company's projects, and payment of the Bonds is structurally subordinate to the Issuer's Senior Special Facility Revenue Bonds (Sky Harbour Capital LLC Aviation Facilities Project), Series 2021 (the "Series 2021 Bonds") and borrowings under the Draw Down Note Facility (as defined below).

The Series 2026 Bonds and borrowings under the Loan Agreement bear interest at a rate of 6.000% per year, payable semi-annually in arrears on January 1 and July 1 of each year, beginning on July 1, 2026. The Series 2026 Bonds are subject to mandatory tender for purchase on January 1, 2031 (the "Mandatory Tender Date"), and will mature on July 1, 2060, unless earlier exchanged, redeemed or repurchased. On the Mandatory Tender Date, holders will be required to tender their Bonds for purchase at a price equal to 100% of the principal amount thereof plus accrued interest. Following such mandatory tender, the Bonds may be remarketed at a new interest rate or otherwise refinanced. Accordingly, although the Series 2026 Bonds have a stated final maturity of July 1, 2060, the Borrower will be required to refinance or remarket the Series 2026 Bonds on or prior to January 1, 2031.

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The principal amount of the Loan is $150 million. The Company intends to use the proceeds from the Loan, together with other available funds, including draws from the Company's existing term loan facility in an aggregate principal amount of up to $200 million (the "Drawdown Note Facility"), to (i) finance or refinance, directly or indirectly, all or a portion of the construction, equipping and/or improvement of all or a portion of certain aircraft storage facilities (collectively, the "2026 Projects"); (ii) fund a deposit to the debt service reserve fund for the Series 2026 Bonds; (iii) pay capitalized interest on the Loan; and (iv) pay the costs of issuance of the Series 2026 Bonds and entry into the Loan Agreement.

The Series 2026 Bonds are subject to (a) optional redemption at the discretion of the Borrower at any time on or after January 1, 2030 at a redemption price equal to the principal amount plus an applicable premium and accrued and unpaid interest to the redemption date, (b) mandatory redemption upon the occurrence of a determination of taxability of the Series 2026 Bonds, and (c) mandatory sinking fund redemption beginning in 2056.

The Borrower expects to meet its payment obligations under the Loan Agreement from funds to the extent available and permitted to be released under the master trust indenture with respect to the Series 2021 Bonds and the Drawdown Note Agreement. Interest is capitalized through January 1, 2029.

The Indenture and the Loan Agreement provide for customary events of default, all as described in the Indenture and the Loan Agreement.

The Limited Offering Memorandum is available on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access website (<u>https://emma.msrb.org/</u>). The information found on, or accessible through, the foregoing website is not incorporated into, and does not form a part of, this Current Report on Form 8-K or any other report of document the Company files with or furnished to the Securities and Exchange Commission.

The foregoing descriptions of the Indenture and the Loan Agreement are qualified in their entirety by reference to full text of such agreements, which are filed as exhibits 10.1 and 10.2 to this Current Report on Form 8-k.

**Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.03.

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**Item 9.01. Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits. The Exhibit Index set forth below is incorporated herein by reference.

**EXHIBIT INDEX**

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| | |
|:---|:---|
| <u>Exhibit Number</u>  | <u>Exhibit Title</u> |
| 10.1 | [Trust Indenture, dated as of January 1, 2026, by and between the Public Finance Authority of Wisconsin and UMB Bank, N.A., as bond trustee.](ex_921942.htm) |
| 10.2 | [Loan Agreement, dated as of January 1, 2026, by and among the Public Finance Authority of Wisconsin and Sky Harbour Capital III LLC.](ex_921943.htm) |
| 10.3 | [Guaranty of Sky Harbour, LLC in favor of UMB Bank, N.A.](ex_921944.htm) |
| 10.4 | [Guaranty of Sky Harbour Holdings IV LLC in favor of UMB Bank, N.A.](ex_921945.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

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**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 18, 2026

---

| | |
|:---|:---|
| SKY HARBOUR GROUP CORPORATION | SKY HARBOUR GROUP CORPORATION |
| By: | */s/ Tal Keinan* |
| Name: | Tal Keinan |
| Title: | Chief Executive Officer |

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## Exhibit 10.1

**Exhibit 10.1**

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**TRUST INDENTURE**

between

**PUBLIC FINANCE AUTHORITY**

and

**UMB Bank, N.A.**, as Trustee

Dated as of January 1, 2026

Relating to:

**$150,000,000**<br> **Public Finance Authority**

**Revenue Bonds**

**(Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026**

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**TABLE OF CONTENTS**

**Page**

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| | | |
|:---|:---|:---|
| ARTICLE I. DEFINITIONS AND INTERPRETATION | ARTICLE I. DEFINITIONS AND INTERPRETATION | 4 |
| Section 1.1 | Definitions | 4 |
| Section 1.2 | Interpretation. | 16 |
| ARTICLE II. AUTHORIZATION, ISSUANCE, CONDITIONS AND TERMS OF BONDS | ARTICLE II. AUTHORIZATION, ISSUANCE, CONDITIONS AND TERMS OF BONDS | 18 |
| Section 2.1 | Authorization and Issuance of Bonds | 18 |
| Section 2.2 | Method and Place of Payment | 19 |
| Section 2.3 | Payment of Principal and Interest of Bonds; Acceptance of Terms and Conditions. | 19 |
| Section 2.4 | Calculation and Payment of Interest | 19 |
| Section 2.5 | Maximum Interest Rate | 19 |
| Section 2.6 | Book-Entry System | 19 |
| Section 2.7 | Execution and Authentication of Bonds | 21 |
| Section 2.8 | Delivery of Bonds. | 21 |
| Section 2.9 | Issuance of Additional Bonds. | 22 |
| ARTICLE III. REDEMPTION OF BONDS; MANDATORY TENDER; CONVERSION | ARTICLE III. REDEMPTION OF BONDS; MANDATORY TENDER; CONVERSION | 23 |
| Section 3.1 | Optional, Mandatory Sinking Fund and Special Mandatory Redemption of Series 2026 Bonds | 23 |
| Section 3.2 | Mandatory Taxability Redemption | 24 |
| Section 3.3 | [Reserved] | 24 |
| Section 3.4 | General Provisions. | 24 |
| Section 3.5 | Tender of Bonds | 25 |
| Section 3.6 | Conversion | 25 |
| Section 3.7 | Remarketing | 26 |
| Section 3.8 | Selection of Bonds to be Tendered for Purchase. | 27 |
| ARTICLE IV. GENERAL TERMS AND PROVISIONS OF BONDS | ARTICLE IV. GENERAL TERMS AND PROVISIONS OF BONDS | 27 |
| Section 4.1 | Date of Bonds | 27 |
| Section 4.2 | Form and Denominations | 28 |
| Section 4.3 | Medium of Payment | 28 |
| Section 4.4 | Legends. | 28 |
| Section 4.5 | Bond Details | 28 |
| Section 4.6 | Interchangeability; Transfer and Registry. | 29 |
| Section 4.7 | Bonds Mutilated, Destroyed, Stolen or Lost | 29 |
| Section 4.8 | Cancellation and Disposal of Bonds | 29 |
| Section 4.9 | Requirements With Respect To Transfers | 30 |
| Section 4.10 | Registrar | 30 |
| Section 4.11 | Principal Balance; Annual and Monthly Reports | 30 |
| Section 4.12 | Transfer Restrictions | 30 |
| Section 4.13 | Section 4.13. CUSIP Numbers | 30 |
| ARTICLE V. CUSTODY AND INVESTMENT OF FUNDS | ARTICLE V. CUSTODY AND INVESTMENT OF FUNDS | 31 |
| Section 5.1 | Creation of Funds | 31 |
| Section 5.2 | Debt Service Fund | 32 |
| Section 5.3 | Debt Service Reserve Fund | 34 |
| Section 5.4 | Rebate Fund | 34 |
| Section 5.5 | Series 2026 Construction Account | 35 |
| Section 5.6 | Series 2026 Capitalized Interest Account | 36 |
| Section 5.7 | Investment of Funds and Accounts; Valuation | 36 |
| Section 5.8 | Non-presentment of Bonds | 37 |

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i

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| | | |
|:---|:---|:---|
| ARTICLE VI. PROCEDURES FOR REDEMPTION OF BONDS | ARTICLE VI. PROCEDURES FOR REDEMPTION OF BONDS | 38 |
| Section 6.1 | Privilege of Redemption and Redemption Price | 38 |
| Section 6.2 | Selection of Bonds to be Redeemed | 38 |
| Section 6.3 | Notice of Redemption | 38 |
| Section 6.4 | Payment of Redeemed Bonds | 39 |
| Section 6.5 | Cancellation of Redeemed Bonds | 39 |
| Section 6.6 | Purchase In Lieu of Redemption | 40 |
| ARTICLE VII. PARTICULAR COVENANTS | ARTICLE VII. PARTICULAR COVENANTS | 40 |
| Section 7.1 | No Pecuniary Liability on Issuer or Officers | 40 |
| Section 7.2 | Payment of Principal; Redemption Price, or Purchase Price, if any, and Interest | 40 |
| Section 7.3 | Further Assurances | 40 |
| Section 7.4 | Inspection of Project Books | 41 |
| Section 7.5 | Rights under Financing Documents | 41 |
| Section 7.6 | Creation of Liens, Indebtedness | 41 |
| Section 7.7 | Recording and Filing | 41 |
| ARTICLE VIII. EVENTS OF DEFAULT; REMEDIES OF BONDHOLDERS | ARTICLE VIII. EVENTS OF DEFAULT; REMEDIES OF BONDHOLDERS | 42 |
| Section 8.1 | Events of Default; Acceleration of Due Dates | 42 |
| Section 8.2 | Enforcement of Remedies | 43 |
| Section 8.3 | Application of Revenues and Other Moneys After Default | 44 |
| Section 8.4 | Actions by Trustee | 45 |
| Section 8.5 | Required Bondholders Control Proceedings | 45 |
| Section 8.6 | Individual Bondholder Action Restricted | 45 |
| Section 8.7 | Effect of Discontinuance of Proceedings | 46 |
| Section 8.8 | Remedies Not Exclusive | 46 |
| Section 8.9 | Delay or Omission Upon Default | 46 |
| Section 8.10 | Notice of Default | 46 |
| ARTICLE IX. TRUSTEE AND PAYING AGENT | ARTICLE IX. TRUSTEE AND PAYING AGENT | 46 |
| Section 9.1 | Appointment and Acceptance of Duties | 46 |
| Section 9.2 | Indemnity | 47 |
| Section 9.3 | Rights and Responsibilities of Trustee | 47 |
| Section 9.4 | Compensation | 50 |
| Section 9.5 | Evidence on Which Trustee May Act | 50 |
| Section 9.6 | Evidence of Signatures of Owners of the Bonds and Ownership of Bonds | 51 |
| Section 9.7 | Trustee and Paying Agent Deal in Bonds and With Obligated Group | 52 |
| Section 9.8 | Resignation or Removal of Trustee | 52 |
| Section 9.9 | Successor Trustee | 52 |
| Section 9.10 | Resignation or Removal of Paying Agent; Successors | 53 |
| Section 9.11 | Moneys Held for Particular Bonds | 53 |
| Section 9.12 | Continuation Statements | 54 |
| Section 9.13 | [Reserved] | 54 |
| Section 9.14 | Payments Due on non-Business Day | 54 |
| Section 9.15 | Appointment of Co-Trustee | 54 |
| ARTICLE X. AMENDMENTS OF INDENTURE | ARTICLE X. AMENDMENTS OF INDENTURE | 55 |
| Section 10.1 | Limitation on Modifications | 55 |
| Section 10.2 | Supplemental Indentures Without Consent of Owners of the Bonds | 55 |
| Section 10.3 | Supplemental Indentures With Consent of Owners of the Bonds | 56 |
| Section 10.4 | Supplemental Indenture Part of the Indenture | 57 |
| ARTICLE XI. AMENDMENTS OF FINANCING DOCUMENTS | ARTICLE XI. AMENDMENTS OF FINANCING DOCUMENTS | 57 |
| Section 11.1 | Rights of Borrower | 57 |

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| | | |
|:---|:---|:---|
| Section 11.2 | Amendments of Financing Documents Not Requiring Consent of Owners of the Bonds | 57 |
| Section 11.3 | Amendments of Financing Documents Requiring Consent of Owners of the Bonds | 58 |
| ARTICLE XII. DEFEASANCE; DISCHARGE OF INDENTURE | ARTICLE XII. DEFEASANCE; DISCHARGE OF INDENTURE | 58 |
| Section 12.1 | Defeasance | 58 |
| ARTICLE XIII. GENERAL PROVISIONS | ARTICLE XIII. GENERAL PROVISIONS | 60 |
| Section 13.1 | Notices | 60 |
| Section 13.2 | Bondholder Directions and Consents | 60 |
| Section 13.3 | Waiver of Personal Liability | 61 |
| Section 13.4 | No Obligation to Enforce Assigned Rights | 61 |
| Section 13.5 | Third-Party Beneficiaries | 61 |
| Section 13.6 | No Impairment of Rights | 61 |
| Section 13.7 | Issuer's Performance | 62 |
| Section 13.8 | Parties Interested Herein | 62 |
| Section 13.9 | Effective Date; Counterparts | 62 |
| Section 13.10 | Continuing Disclosure | 62 |
| Section 13.11 | Date for Identification Purposes Only | 62 |
| Section 13.12 | Governing Law | 63 |
| Section 13.13 | Non-Liability of Issuer | 63 |
| Section 13.14 | Limited Liability. | 63 |
| Section 13.15 | Patriot and U.S.A. Freedom Act Requirements of the Trustee | 63 |
| Section 13.16 | Waiver of Jury Trial | 64 |
| EXHIBIT A – FORM OF BOND | EXHIBIT A – FORM OF BOND | A-1 |
| EXHIBIT B – 2026 PROJECT | EXHIBIT B – 2026 PROJECT | B-1 |

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iii

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**TRUST INDENTURE**

THIS TRUST INDENTURE (as amended and supplemented from time to time, this "**Indenture**"), made and dated as of January 1, 2026, by and between the PUBLIC FINANCE AUTHORITY (together with its successors and assigns, the "**Issuer**"), a joint powers commission created under Section 66.0304 of the Wisconsin Statutes, a unit of government and a body corporate and politic organized and existing under the laws of the State of Wisconsin with the powers, among others, set forth in Sections 66.0301, 66.0303 and 66.0304, as amended, of the Wisconsin Statutes (the "**Act**"), and UMB Bank, N.A., as trustee, a New York banking corporation, existing, and authorized to accept and execute trusts of the character herein set out under and by virtue of the laws of the United States (together with its successors and assigns, the "**Trustee**"),

WITNESSETH THAT:

WHEREAS, the Issuer is authorized and empowered under the Act and by the Joint Exercise Agreement (as hereinafter defined) to, among other things, issue bonds, notes or other evidences of indebtedness in connection with, and to make loans to assist in the financing and refinancing of, "projects" (as defined in the Act) located inside and outside of the State of Wisconsin;

WHEREAS, the Borrower has applied for the financial assistance of the Issuer in the financing or refinancing of the 2026 Project (as hereinafter defined);

WHEREAS, the Issuer has authorized the issuance of its airport facilities revenue bonds in the principal amount of $150,000,000 designated "Public Finance Authority Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026" (the "**Series 2026 Bonds**"), the proceeds of which will be used to: (i) finance or refinance, directly or indirectly, all or a portion of the projects described in the attached **<u>Exhibit B</u>** (collectively, the "**2026 Project**"), (ii) fund the deposit to the Debt Service Reserve Fund for the Series 2026 Bonds, (iii) pay capitalized interest on the Series 2026 Bonds, and (iv) pay the costs of issuance of the Series 2026 Bonds;

WHEREAS, the facilities comprising the 2026 Project are located within the territorial limits of the political subdivisions listed on Schedule I to the Loan Agreement, which political subdivisions have approved the financing of the respective facilities located therein by the issuance of the Series 2026 Bonds;

WHEREAS, based on representations of the Borrower (hereinafter defined) but without independent investigation, the Issuer has found and determined that the financing and refinancing of the 2026 Project will promote significant economic, cultural and community development opportunities, including the creation or retention of employment, the stimulation of economic activity and the promotion of improvements in the health, safety and welfare of persons living and working in the Project Jurisdictions (as defined in the Loan Agreement) where the 2026 Project is located and nearby communities;

WHEREAS, the Issuer is authorized, by a Bond Resolution adopted by its Board of Directors (as amended, the "**Series 2026 Bond Resolution**") to issue the Series 2026 Bonds and loan the proceeds of the Series 2026 Bonds to Sky Harbour Capital III LLC (the "**Borrower**") pursuant to a Loan Agreement, dated as of January 1, 2026 (the "**Loan Agreement**"), between the Issuer and the Borrower, for the purpose of, directly or indirectly, financing and refinancing all or a portion of the 2026 Project;

WHEREAS, the Loan Agreement specifies the terms and conditions of the loan by the Issuer to the Borrower of the proceeds of the Series 2026 Bonds to provide for the financing or refinancing of the 2026 Project and of the payment by the Borrower to the Issuer of amounts sufficient for the payment of the principal of, premium, if any, or interest on the Bonds and costs incidental thereto;

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WHEREAS, the Series 2026 Bonds will be secured as set forth herein, in the Loan Agreement and in the Security Documents (as defined in the Loan Agreement);

WHEREAS, in order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal, Redemption Price or Purchase Price thereof and interest thereon, the Issuer has authorized the execution and delivery of this Indenture; and

WHEREAS, all acts and proceedings required by law and all other things necessary to make the Series 2026 Bonds, when executed by the Issuer, authenticated and delivered by the Trustee and issued as in this Indenture provided, the valid, binding, and legal obligations of the Issuer and to constitute this Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done and performed, and the creation, execution, and delivery of this Indenture, and the creation, execution, and issuance of the Series 2026 Bonds subject to the terms hereof, have in all respects been duly authorized;

NOW, THEREFORE, KNOW ALL PERSONS BY THESE PRESENTS:

GRANTING CLAUSES

That the Issuer in consideration of the premises and the acceptance by the Trustee of the trusts hereby created and of the purchase and acceptance of any Bonds by the holders and owners thereof, and of the sum of One Dollar, lawful money of the United States of America, to it duly paid by the Trustee at or before the execution and delivery of these presents, and for other good and valuable consideration, the receipt of which is hereby acknowledged, and in order to secure the payment of the principal, Redemption Price or Purchase Price, if any, of, and interest on all Bonds according to their tenor and effect and all other amounts due in connection therewith and the performance and observance by the Issuer of all the covenants expressed or implied herein and in the Bonds, does hereby grant, bargain, sell, convey, pledge, and assign unto, and grant a security interest in and to, the Trustee, and unto its respective successors in trust, and to their respective assigns, forever, for the securing of the performance of the obligations of the Issuer hereinafter set forth, the following (except in all cases for the Unassigned Rights):

I. The General Financing Documents (as such term is defined in Article I below), including, without limitation, the Loan Agreement, and including all extensions and renewals of the term thereof, if any, together with all right, title, and interest of the Issuer therein (including rights, title and interests of the Borrower pledged to the Issuer to secure the Borrower's obligations to the Issuer pursuant to the Loan Agreement) including, but without limiting the generality of the foregoing, the present and continuing right to claim, collect, and receive any of the moneys, income, revenues, issues, profits, and other amounts payable or receivable thereunder, to bring actions and proceedings thereunder or for the enforcement thereof, and to do any and all things which the Issuer is or may become entitled to do under the Loan Agreement upon the conditions therein set forth, and including, but without limiting the generality of the foregoing, the Security Documents and the collateral pledged pursuant thereto, including without limitation the pledge of the Series 2026 Bond Collateral Account pledged to secure obligations of SKY IV pursuant to the SKY IV Guaranty;

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II. Subject only to the rights of the Issuer to apply amounts under the provisions of this Indenture, the pledge and assignment of the Trust Estate (as hereinafter defined) hereby made shall immediately attach thereto and shall be effective, binding and enforceable from and after the time of the delivery by the Trustee of the first bonds authenticated and delivered under this Indenture. The security so pledged and any assignment then or thereafter received by the Trustee from the Issuer as security for the Bonds shall immediately be subject to the lien of such pledge and assignment and the lien of such pledge and assignment shall be valid and binding against the Issuer, purchasers thereof, creditors and all other parties having claims against the Issuer irrespective of whether such parties have notice thereof and without the need for any physical delivery, recordation, filing or further act.

III. All Funds (as such term is defined in Article I below and except the Rebate Fund) and moneys and securities therein; and

IV. All moneys and securities from time to time held by the Trustee or the Paying Agent under the terms of this Indenture (except moneys and securities in the Rebate Fund) and any and all other real or personal property of every name and nature concurrently herewith or from time to time hereafter by delivery or by writing of any nature conveyed, mortgaged, pledged, assigned, or transferred as and for additional security hereunder by the Issuer or by anyone in its behalf, or with its written consent, to the Trustee or the Paying Agent, which are hereby authorized to receive any and all such property at any and all times and to hold and apply the same subject to the terms hereof;

TO HAVE AND TO HOLD all and singular the above described trust estate (as the same is further defined herein, the "**Trust Estate**"), whether now owned or hereafter acquired, unto the Trustee and its respective successors and assigns in trust forever to its and their own proper use and behalf:

BUT IN TRUST NEVERTHELESS, for the benefit and security of all present and future holders, of the Bonds, and for enforcement of payment of the Bonds in accordance with their terms and all other sums payable hereunder or on the Bonds and for the performance of and compliance with the obligations, covenants and conditions of this Indenture, as if all the Bonds at any time Outstanding had been authenticated, executed and delivered simultaneously with the execution and delivery of this Indenture, all as herein set forth;

PROVIDED, HOWEVER, that if the Issuer, or its successors or assigns, shall well and truly pay, or cause to be paid, the principal, Redemption Price or Purchase Price, if any, of, and interest on, the Bonds due or to become due thereon, and all other amounts due thereunder, at the times and in the manner mentioned in the Bonds according to their tenor, and shall cause the payments to be made on the Bonds as required under Article VI hereof, or shall provide, as permitted hereby, for the payment thereof by depositing with the Trustee the entire amount due or to become due thereon, and shall well and truly keep, perform, and observe all the covenants and conditions pursuant to the terms of this Indenture to be kept, performed, and observed by it, and shall pay or cause to be paid to the Trustee all sums of money due or to become due to it in accordance with the terms and provisions of the Loan Agreement, and this Indenture, then upon the final payment thereof this Indenture and the rights hereby granted shall cease, determine, and be void; otherwise this Indenture to be and remain in full force and effect.

THIS TRUST INDENTURE FURTHER WITNESSETH, and it is expressly declared, that all Bonds issued and secured hereunder are to be issued, authenticated, and delivered and all of the property, rights, and interests, including, without limitation, the loan payments and other amounts hereby assigned and pledged, are to be dealt with and disposed of under, upon, and subject to the terms, conditions, stipulations, covenants, agreements, trusts, uses, and purposes as hereinafter expressed, and the Issuer has agreed and covenanted, and does hereby agree and covenant, with the Trustee and with the respective holders and owners of the Bonds as follows:

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**ARTICLE I.**<br> **<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1 <u>Definitions</u>. Terms capitalized herein but not defined herein shall have the meanings ascribed thereto under the Loan Agreement. In addition, as used in this Indenture:

"**Account**" means any account within a special trust fund as established under this Indenture.

"**Act of Bankruptcy**" means with respect to any Person, the filing of a petition in bankruptcy (or the other commencement of a bankruptcy or similar proceeding) by or against such Person, under the Federal Bankruptcy Code or any other applicable bankruptcy, insolvency, reorganization or similar law, now or thereafter in effect; provided, however, that no involuntary petition in bankruptcy, or appointment of a trustee, custodian or receiver, without the consent of such Person, shall constitute an Act of Bankruptcy until one hundred and twenty (120) days shall have elapsed from the date of filing thereof, during which time such Person has been unable to obtain the dismissal of the petition or appointment.

"**Additional Bonds**" means Bonds of one or more Series, other than the Series 2026 Bonds, authorized and issued by the Issuer, in the Issuer's sole and exclusive discretion, pursuant to this Indenture.

"**Authorized Denominations**" shall mean $500,000 and any integral multiple of $5,000 in excess thereof, provided that at such time as the Borrower shall provide to the Issuer and the Trustee written evidence to the effect that each Rating Agency then rating the Bonds has rated such Bonds "BBB-" or equivalent, or higher (without regard for gradation within a rating category and without regard for credit enhancement unless such credit enhancement extends through the final maturity date of the Bonds), the Authorized Denominations of such Bonds shall be changed (if requested by the Borrower) to denominations of $5,000 or any integral multiple thereof, in each case, notwithstanding whether at a future time the Bonds are no longer rated at such rating.

"**Authorized Representative**" means, in the case of the Issuer, any Authorized Signatory, in the case of the Borrower, any Authorized Representative of the Borrower under the Loan Agreement, and, when used with reference to the performance of any act, the discharge of any duty, or the execution of any certificate or other document, any officer, employee or other person authorized to perform such act, discharge such duty or execute such certificate or other document, provided the Trustee receives written evidence of such person's authorization.

"**Authorized Signatory**" means any officer, director or other Person designated by resolution of the Board of Directors of the Issuer (whether such resolution is adopted in connection with the issuance of the Bonds or otherwise) or by the Issuer's Bylaws as an 'Authorized Signatory' empowered to, among other things, execute and deliver on behalf of the Issuer, this Indenture, the Issuer Financing Documents, and the Bonds.

"**Beneficial Owner**" shall mean, so long as the Bonds are negotiated in the Book-Entry System, any Person who acquires a beneficial ownership interest in a Bond held by the Securities Depository. If at any time the Bonds are not held in the Book-Entry System, Beneficial Owner shall mean Owner for purposes of this Indenture.

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"**Bond Counsel**" shall mean Greenberg Traurig, LLP, or any other law firm approved by the Issuer having a national reputation in the field of municipal law, whose legal opinions are generally accepted by purchasers of municipal bonds.

"**Bond Year**" shall mean each one-year period that ends at the close of business on the day selected by the Borrower, initially December 31 of each year. The first and last Bond Years may be short periods. If no day is selected by the Borrower before the earlier of the date the last Bond is discharged or the date that is five (5) years after the Date of Delivery of the Bonds, Bond Years shall end on each anniversary of the Date of Delivery of the Bonds and on the date the last Bond is discharged. Different Series of Bonds may have different Bond Years if the Trustee is so notified in writing.

"**Bondholder**," "**holder**," or "**owner**" or words of similar import when used with reference to Bonds shall, unless otherwise specified, mean any person who shall be the registered owner of any Outstanding Bond.

"**Bonds**" means the Series 2026 Bonds and any Additional Bonds authorized and issued pursuant to Section 2.8 hereof.

"**Book-Entry System**" shall mean the system maintained by the Securities Depository described in Section 2.5 hereof.

"**Borrower**" shall mean Sky Harbour Capital III LLC and its successors.

"**Borrower Financing Documents**" means all documents and agreements executed and delivered by the Borrower, the Parent Guarantor or SKY IV on the Date of Delivery as security for or in connection with the issuance of the Bonds, including the Loan Agreement, the Tax Certificate, the Security Documents and the General Certificate of the Borrower, and all other documents executed in connection therewith, each as supplemented or amended from time to time.

"**Business Day**" shall mean any day other than a Saturday, Sunday or a day on which banking institutions in New York, New York and/or the cities in which the principal corporate trust or principal operations offices of the Trustee to whom a payment is to be made, as applicable, are located are authorized or obligated by law or executive order to be closed or the New York Stock Exchange is closed.

"**Cede & Co**." means the nominee for The Depository Trust Company (DTC) who shall act as securities depository for the Bonds.

"**Change in Control**" means (a) (i) the Parent Guarantor shall cease to own, directly or indirectly, beneficially or of record, free and clear of all liens or other encumbrances, 100% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Sky Harbour Holdings LLC ("SKYH") on a fully diluted basis, or (ii) any Person, other than the Parent Guarantor, shall acquire direct or indirect Control of SKYH, (b) (i) Sky Harbour Holdings II LLC ("SKYH II") shall cease to own, directly or indirectly, beneficially or of record, free and clear of all liens or other encumbrances, 100% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Sky Harbour Capital II LLC ("SH Capital II") on a fully diluted basis, or (ii) any Person, other than SKYH, shall acquire direct or indirect Control of SH Capital II, and (c) (i) SH Capital II shall cease to own, free and clear of all liens (other than in favor of the Administrative Agent (as defined in the Limited Offering Memorandum)) or other encumbrances, directly or indirectly, beneficially or of record, 100% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of each of the other Drawdown Note Borrowers on a fully diluted basis, or (ii) any Person, other than SH Capital II, shall acquire direct or indirect Control of any of the other Drawdown Note Borrowers (as defined in the Limited Offering Memorandum).

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"**Code**" shall mean the Internal Revenue Code of 1986, as amended, and the treasury regulations promulgated thereunder.

"**Computation Date**" shall mean an Installment Computation Date or the Final Computation Date.

"**Control**" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "**Controlling**" and "**Controlled**" have meanings correlative thereto.

"**Conversion Date**" means, with respect to all or a portion of the Bonds in the Term Rate Mode to be converted to bear interest at a new Term Rate for a new Term Rate Period or at a Fixed Rate, the date on which such Bonds begin to bear interest at such Term Rate or at a Fixed Rate, as applicable.

"**Date of Delivery**" means the date that the Series 2026 Bonds are initially delivered pursuant to Section 2.7 hereof.

"**Debt Service Fund**" means the special trust fund so designated, established and maintained pursuant to Section 5.1 hereof.

"**Debt Service Reserve Fund**" means the special trust fund so designated, established and maintained pursuant to Section 5.1 hereof and the accounts therein.

"**Debt Service Reserve Fund Requirement**" means, with respect to the Series 2026 Bonds, an amount equal to $9,000,000, and with respect to any other Bonds, the amount designated in the Supplemental Indenture providing for the issuance thereof.

"**Default**" means any event or condition which will, with the lapse of time, or the giving of notice, or both, become an Event of Default.

"**Default Rate**" means 12% per annum.

"**Defeasance Collateral**" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) non-callable direct obligations of the United States of America, non-callable and non-prepayable direct federal agency obligations the timely payment of principal of and interest on which are fully and unconditionally guaranteed by the United States of America, non-callable direct obligations of the United States of America which have been stripped by the United States Treasury itself or by any Federal Reserve Bank (not including "CATS," "TRS" and "TIGRS") and the interest components of REFCORP bonds for which the underlying bond is non-callable (or non-callable before the due date of such interest component) for which separation of principal and interest is made by request to the Federal Reserve Bank of New York in book-entry form, and shall exclude investments in mutual funds and unit investment trusts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) non-callable obligations the timely payment of principal and interest on which are fully and unconditionally guaranteed by the United States of America; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local government unit of any such state (i) which are not callable at the option of the obligor or otherwise prior to maturity or as to which irrevocable notice has been given by the obligor to call such bonds or obligations on the date specified in the notice, (ii) timely payment of which is fully secured by a fund consisting only of cash or obligations of the character described in clause (a) or (b) which fund may be applied only to the payment when due of such bonds or other obligations, and (iii) which are rated "AAA" by S&P or Fitch or "Aaa" by Moody's Investors Service.

"**Determination of Taxability**" means, with respect to any Series 2026 Bonds, a determination that the interest income on any Series 2026 Bond does not qualify as being excludable from the gross income of the holder thereof ("exempt interest") for any reason other than that such holder is a "substantial user" of the Project or a "related person" as such terms are defined in Section 147 of the Code, which determination shall be deemed to have been made upon the first to occur of any of the following: (a) the date on which any change in law or regulation becomes effective or on which the Internal Revenue Service issues any private ruling, technical advice memorandum or any other written communication to the effect that the interest income on any of the Series 2026 Bonds does not qualify as exempt interest; or (b) the date on which the Borrower shall receive notice from the Trustee in writing that the Trustee has been advised by any holder or former holder that the Internal Revenue Service has issued a thirty-day letter or other notice which asserts that the interest on any such Series 2026 Bond does not qualify as such exempt interest; or (c) the date on which the Trustee receives written notice from any Bondholder that the Borrower has, or the Issuer has taken any action inconsistent with, or has failed to act consistently with, the tax exempt status of interest on the Series 2026 Bonds; provided that no Determination of Taxability shall be deemed to have occurred as a result of a determination by any Bondholder pursuant to clause (c) above unless such determination is supported by an opinion of Bond Counsel to the effect that the interest income on Series 2026 Bonds does not constitute exempt interest and that the Series 2026 Bonds do not qualify for a remedial action under the applicable regulations, compliance with which would render the interest on the Series 2026 Bonds tax exempt. With respect to any other Tax-Exempt Bonds, "Determination of Taxability" shall have the meaning, if any, provided in the Supplemental Indenture authorizing the issuance of such Tax-Exempt Bonds.

"**DTC**" or "The Depository Trust Company" means the limited-purpose trust company organized under the laws of the State of New York which shall act as securities depository for the Bonds, and any successor thereto.

"**DTC Participants**" means those broker dealers, banks and other financial institutions reflected on the books of DTC.

"**Earliest Optional Mode Change Date**" means, with respect to the initial Term Rate Period, the date set forth in Section 2.1, and with respect to any subsequent Term Rate Period, the date selected by the Borrower pursuant to Section 3.6, on or after which date a Term Rate Bond may be converted to a different Mode.

"**Electronic Means**" shall mean telecopy, facsimile transmission, e-mail transmission or other unsecured electronic methods, secure electronic transmission containing applicable authorization codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for use in connection with its services hereunder.

"**Environmental Regulations**" means any federal, state or local law, statute, code, ordinance, regulation, requirement or rule relating to dangerous, toxic or hazardous pollutants, Hazardous Substances, chemical waste, materials or substances.

"**Equity Interests**" means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such equity interest, but excluding any debt securities convertible into any of the foregoing.

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"**Event of Default**" has the meaning given such term in Section 8.1 hereof.

"**Favorable Opinion of Bond Counsel**" shall mean, with respect to any action the occurrence of which requires such an opinion, an unqualified Opinion of Counsel, which shall be a Bond Counsel, to the effect that such action is permitted under this Indenture and will not adversely affect the exclusion of interest on the Bonds from gross income for purposes of Federal income taxation (subject to the inclusion of any exceptions contained in the opinion delivered upon original issuance of the Bonds).

"**Final Computation Date**" shall have the meaning ascribed thereto in the Regulations.

"**Fiscal Year**" shall mean a period of twelve consecutive months ending on December 31 or on such other date as may be specified in a certificate delivered to the Trustee.

"**Fitch**" shall mean Fitch, Inc., and its successors and assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term "Fitch" shall be deemed to refer to any other nationally recognized securities rating agency selected by the Borrower.

"**Fixed Rate**" means the per annum interest rate on any Bond in the Fixed Rate Mode determined by the Remarketing Agent pursuant to Section 2.1(f) hereof.

"**Fixed Rate Bond**" means a Bond in the Fixed Rate Mode.

"**Fixed Rate Mode**" means the Mode during which the Bonds bear interest at the Fixed Rate.

"**Fixed Rate Period**" means for the Bonds in the Fixed Rate Mode, the period from the date of original issuance and delivery of such Bonds, if originally issued as Fixed Rate Bonds or, otherwise, the Conversion Date upon which the Bonds were converted to the Fixed Rate Mode to but not including the maturity date for the Bonds.

"**Fund**" means any special trust fund established pursuant to Article V hereof.

"**Fund Letter of Credit**" means the irrevocable, transferable letter of credit, if any, deposited in an applicable Fund in lieu of or in partial substitution for cash or securities on deposit therein, which shall be payable or available to be drawn upon on any date that moneys therein are required to be transferred; provided that the issuer providing such letter of credit shall be a banking association, bank or trust company or branch thereof whose letter of credit obligations are rated in any of the three highest rating categories of Fitch, Moody's or S&P at the time such Fund Letter of Credit is issued.

"**General Financing Documents**" means the Borrower Financing Documents and the Issuer Financing Documents.

"**Government Obligations**" shall mean:

(i) direct obligations of, or obligations the timely payment of the principal of and interest on which is guaranteed by, the United States of America;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) evidences of ownership of a proportionate interest in specified direct obligations of, or specified obligations the timely payment of the principal of and the interest on which are unconditionally and fully guaranteed by, the United States of America, which obligations are held by a bank or trust company organized and existing under the laws of the United States of America or any state thereof in the capacity of custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations issued by the Resolution Funding Corporation pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (the "FIRRE Act"), (A) the principal of which obligations is payable when due from payments of the maturing principal of non-interest bearing direct obligations of the United States of America which are issued by the Secretary of the Treasury and deposited in the Funding Corporation Principal Fund established pursuant to the FIRRE Act, and (B) the interest on which obligations, to the extent not paid from other specified sources, is payable when due by the Secretary of the Treasury pursuant to the FIRRE Act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) obligations which are (A) issued by any state or political subdivision thereof or any agency or instrumentality of such a state or political subdivision, (B) fully secured as to principal and interest by obligations described in clause (i), (ii) or (iii) above and (C) rated at the time of purchase in one of the two highest ratings categories by at least one Rating Agency.

"**Hazardous Substances**" means (a) any oil, flammable substance, explosives, radioactive materials, hazardous wastes or substances, toxic wastes or substances or any other wastes, materials or pollutants which (i) pose a hazard to the Project or to persons on or about the Project or (ii) cause the Project to be in violation of any Environmental Regulation; (b) asbestos in any form which is or could become friable, urea formaldehyde foam insulation, transformers or other equipment which contain dielectric fluid containing levels of polychlorinated biphenyls, or radon gas; (c) any chemical, material or substance defined as or included in the definition of "waste," "hazardous substances," "hazardous wastes," "hazardous materials," "extremely hazardous waste," "restricted hazardous waste," or "toxic substances" or words of similar import under any Environmental Regulation including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 USC §§ 9601 et seq.; the Resource Conservation and Recovery Act ("RCRA"), 42 USC §§ 6901 et seq.; the Hazardous Materials Transportation Act, 49 USC §§ 1801 et seq.; the Federal Water Pollution Control Act, 33 USC §§ 1251 et seq. and any state environmental law or regulation applicable to the location of any Project; (d) any other chemical, material or substance, exposure to which is prohibited, limited or regulated by any governmental authority or agency or may or could pose a hazard to the health and safety of the occupants of the Project or the owners and/or occupants of property adjacent to or surrounding the Project, or any other person coming upon the Project or adjacent property; or (e) any other chemical, materials or substance which may or could pose a hazard to the environment.

"**Indebtedness**" shall mean and include: (a) the loan of Bond proceeds to the Borrower and (b) any additional obligation for the payment of money to a Person other than the Borrower, which obligation is incurred, assumed or guaranteed by the Borrower and is in the form of (i) a loan, (ii) a finance lease, installment sale agreement or other comparable arrangement to provide for the acquisition, renovation or construction of capital assets, or (iii) any other extension of credit by a third party which is properly treated as indebtedness under generally accepted accounting principles.

"**Indenture**" means this Indenture as from time to time amended or supplemented by Supplemental Indentures in accordance with Article X hereof.

"**Installment Computation Date**" means the last day of the fifth Bond Year and each succeeding fifth Bond Year.

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"**Interest Accrual Period**" shall mean the period during which a Bond accrues interest payable on the next Interest Payment Date applicable thereto. Each Interest Accrual Period shall commence on (and include) the last Interest Payment Date to which interest has been paid (or, if no interest has been paid, from the date of original authentication and delivery of the Bonds) to, but not including, the Interest Payment Date on which interest is to be paid. If, at the time of authentication of any Bond, interest is in default or overdue on the Bonds, such Bond shall bear interest from the date to which interest has previously been paid in full or made available for payment in full on Outstanding Bonds.

"**Interest Payment Date**" shall mean each date on which interest is to be paid and is each January 1 and July 1, commencing on July 1, 2026.

"**Investment Securities**" shall mean and include any of the following to the extent the same are legal investments under the laws of any applicable jurisdiction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) cash deposits (insured at all times by the Federal Deposit Insurance Corporation or otherwise collateralized with Government Obligations);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Government Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) obligations of the following federal agencies so long as such obligations are backed by the full faith and credit of the United States of America: (a) U.S. Export-Import Bank (Eximbank), (b) Rural Economic Community Development Administration, (c) Federal Financing Bank, (d) General Services Administration, (e) U.S. Maritime Administration, (f) U.S. Department of Housing and Urban Development (PHAs) (g) Small Business Administration, (h) Government National Mortgage Association (GNMA), (i) Federal Housing Administration, and (j) Farm Credit System Financial Assistance Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) direct obligations of any of the following federal agencies which obligations are not fully guaranteed by the full faith and credit of the United States of America: (a) senior debt obligations rated in the highest long-term rating category by at least two nationally recognized Rating Agencies issued by the Federal National Mortgage Association (FNMA) or Federal Home Loan Mortgage Corporation (FHLMC), (b) senior debt obligations of the Federal Home Loan Bank System, and (c) senior debt obligations of other United States government sponsored agencies bearing the same or higher ratings as Government Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) U.S. dollar denominated deposit accounts, federal funds, bankers' acceptances and other deposit products with domestic commercial banks which either (a) have a rating on their short-term certificates of deposit on the date of purchase in the highest short-term rating category of at least two nationally recognized Rating Agencies, (b) are insured at all times by the Federal Deposit Insurance Corporation or (c) are collateralized with Government Obligations at 102% of the value thereof, valued daily. All such certificates must mature no more than 360 days after the date of purchase (ratings on holding companies are not considered as the rating of the bank);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) commercial paper which is rated at the time of purchase in the highest short-term rating category of at least two nationally recognized Rating Agencies and which matures not more than 270 days after the date of purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) investments in (a) money market funds registered under the Investment Company Act of 1940, as amended, whose shares are registered under the Securities Act of 1933, as amended (the "**Securities Act**"), and rated in the highest short-term rating category of at least two nationally recognized Rating Agencies, including, without limitation, funds for which the Trustee, its affiliates and subsidiaries serve as investment manager, administrator, shareholder servicing agent, and/or custodian or subcustodian or provide investment advisory or other management services (notwithstanding that the Trustee or an affiliate receives and retains fees for services provided to such funds), and (b) public sector investment pools operated pursuant to SEC Rule 2a-7 in which the issuer's deposit shall not exceed 5% of the aggregate pool balance at any time and such pool is rated in one of the two highest short-term rating categories of at least two nationally recognized Rating Agencies;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) pre-funded municipal obligations defined as follows: any bonds or other obligations of any state of the United States of America or of any agency, instrumentality or local government unit of any such state which are not callable at the option of the obligor prior to maturity or as to which irrevocable instructions have been given by the obligor to call on the date specified in the notice and (a) which are rated, based on an irrevocable escrow account or fund (the "escrow"), in the highest long-term rating category of at least two nationally recognized Rating Agencies (without regard to gradations), or (b)(1) which are fully secured as to principal and interest and redemption premium, if any, by an escrow consisting only of cash or Government Obligations, which escrow may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate, and (2) which escrow is sufficient, as verified by a nationally recognized independent certified public accountant, to pay principal of and interest and redemption premium, if any, on the bonds or other obligations described in this clause (viii) on the maturity date or dates specified in the irrevocable instructions referred to above, as appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) general obligations of states with a short-term rating in one of the two highest rating categories and a long-term rating in one of the two highest rating categories of at least two nationally recognized Rating Agencies. In the event such obligations are variable rate obligations, the interest rate on such obligations must be reset not less frequently than annually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) investment agreements with a Qualified Investment Provider;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) other forms of investments (including repurchase agreements) approved in writing by a Qualified Financial Institution providing a Fund Letter of Credit or not unacceptable to the Rating Agencies then rating any Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) repurchase agreements relating to securities described in clauses (i), (ii), (iii), (iv), (vi), (viii) and (ix) above, with Qualified Investment Provider which agreement shall provide that (A) such securities have a value of at least 103% (valued on each interest payment date for the Bonds) of the specified repurchase price and are deposited with the Trustee or with a third party custodian approved by, and in accordance with documentation satisfactory to, the Trustee, (B) the provider will repurchase such securities without penalty upon request of the Trustee in order to use the proceeds for any purpose for which the Fund from which the investment was made may be used, (C) if such rating falls below "A3" or "A-," respectively by either Moody's and S&P, the provider must notify the Trustee and repurchase such securities without penalty within five (5) Business Days of such downgrade and (D) the Trustee is expressly authorized to liquidate such securities in the event of the insolvency of the provider or the commencement by or against the provider of a case under the federal Bankruptcy Code or the appointment or taking possession by a trustee or custodian of the assets of the provider; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) a guaranteed investment contract with a defined termination date, secured by Government Obligations or other security not unacceptable to the Rating Agencies then rating the Bonds, if any, in an amount at least equal to the amount invested under the contract and pledged to the Trustee.

"**Issuer**" means Public Finance Authority, its successors and assigns.

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"**Issuer Financing Documents**" means, collectively, this Indenture, the Loan Agreement, the Tax Certificate, and all other documents executed and delivered by the Issuer in connection therewith.

"**Joint Exercise Agreement**" means the Amended and Restated Joint Exercise of Powers Agreement Relating to the Public Finance Authority, dated September 28, 2010 by and among Adams County, Wisconsin, Bayfield County, Wisconsin, Marathon County, Wisconsin, Waupaca County Wisconsin and the City of Lancaster, Wisconsin, as such agreement may be amended from time to time.

"**Letter of Representations**" means the Letter of Representations of the Issuer to DTC.

"**Limited Offering Memorandum**" means the Limited Offering Memorandum, dated January 29, 2026, with respect to the offering of the Series 2026 Bonds.

"**Loan Agreement**" means the Loan Agreement of even date herewith between the Issuer and the Borrower, and any amendments and supplements thereto.

"**Mandatory Tender Date**" means (i) each Scheduled Mandatory Tender Date and (ii) any Conversion Date on or after the then applicable Earliest Optional Mode Change Date.

"**Maturity Date**" shall mean the date of final maturity of any Series of Bonds.

"**Maximum Rate**" shall mean a rate of interest that shall not (as a result of an event of default or otherwise) exceed (i)(A) with respect to the Series 2026 Bonds, the not to exceed interest rate stated in the Series 2026 Bond Resolution (25%) and (B) with respect to any Series of Additional Bonds, the not to exceed interest rate stated in the Issuer's resolution authorizing such Series of Additional Bonds, or (ii) the highest rate allowed by applicable law.

"**Mode**" means, as the context may require, the Term Rate Mode or the Fixed Rate Mode.

"**Moody**'**s**" shall mean Moody's Investors Service, a corporation duly organized and existing under and by virtue of the laws of the State of Delaware, and its successors and assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term "Moody's" shall be deemed to refer to any other nationally recognized securities rating agency selected by the Borrower.

"**Notice Parties**" shall mean the Issuer, the Borrower, the Trustee, the Remarketing Agent and the Paying Agent.

"**Opinion of Counsel**" shall mean a written legal opinion from a firm of attorneys experienced in the matters to be covered in the opinion.

"**Outstanding**", when used with reference to a Bond or Bonds, as of any particular date, means all Bonds which have been authenticated and delivered hereunder, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any Bonds canceled by the Trustee because of payment or redemption prior to maturity or surrendered to the Trustee for cancellation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any Bond (or portion of a Bond) paid or redeemed or for the payment or redemption of which there has been separately set aside and held in the Redemption Account of the Debt Service Fund moneys in an amount sufficient to effect payment of the principal or applicable Redemption Price thereof, together with accrued interest on such Bond to the payment or redemption date, which payment or redemption date shall be specified in irrevocable instructions given to the Trustee to apply such moneys to such payment on the date so specified;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Bonds in exchange for or in lieu of which other Bonds shall have been authenticated and delivered under Article IV hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Any Bond deemed to have been paid as provided in Section 12.1(b) hereof.

"**Owner**" shall mean the registered owner of a Bond, including the Securities Depository, if any, or its nominee.

"**Paying Agent**" shall mean the commercial bank, trust company or other entity which may from time to time be appointed to serve as Paying Agent as provided in Section 9.1 hereof. Until such time as an alternate Paying Agent is appointed, the Paying Agent shall be the Trustee.

"**Person**" shall mean an individual, a corporation, a partnership, an association, a joint venture, a trust, an unincorporated organization or any other entity or organization, including a government or political subdivision or an agency or instrumentality thereof.

"**Principal and Interest Account**" means the Account so designated, established within the Debt Service Fund pursuant to Section 5.1 hereof.

"**Principal Payment Date**" shall mean any date upon which the principal amount of Bonds is due hereunder, including the Maturity Date, any Redemption Date, any date on which a Sinking Fund Payment is due, or the date the maturity of any Bond is accelerated pursuant to the terms hereof or otherwise.

"**Project**" means the land, facilities, equipment and other property financed by the proceeds of the Series 2026 Bonds or any Additional Bonds, and includes, without limitation, the 2026 Project.

"**Purchase Price**" means with respect to Bonds tendered for purchase pursuant to Section 3.5, an amount equal to the applicable Redemption Price that would be payable if the Bonds were optionally redeemed on the date such Bonds are tendered or deemed tendered for purchase.

"**Qualified Financial Institution**" shall mean a bank, trust company, national banking association, insurance company, other financial services company or government or quasi-governmental agency whose unsecured long term debt obligations (in the case of a bank, trust company, national banking association, other financial services company, government or quasi-governmental agency) or whose claims paying abilities (in the case of an insurance company) are rated in any of the three highest rating categories (without regard to gradation) by one or more of Moody's, Fitch and S&P, including the rating agency, if any, then rating the Bonds (i.e., the equivalent of A or higher).

"**Qualified Investment Provider**" shall mean a financial institution or insurance company which has (or the parent company or guarantor of which has), at the date of execution of the applicable investment agreement, an outstanding issue of unsecured, uninsured and unguaranteed debt obligations or a claims paying ability rated in either of the two highest long-term rating categories by Moody's, Fitch or S&P, including the rating agency, if any, then rating the Bonds (without regard to gradations).

"**Rate Determination Date**" means any date on which the interest rate on Bonds shall be determined, which, (i) in the case of the Term Rate Mode, shall be a Business Day no later than the Business Day next preceding the first day of the applicable Term Rate Period after the initial Term Rate Period, as determined by the Remarketing Agent; and (ii) in the case of the Fixed Rate Mode, shall be a date determined by the Remarketing Agent which shall be at least one Business Day prior to the first date of the Fixed Rate Period.

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"**Rating Agencies**" shall mean any of Moody's, S&P or Fitch, which is then providing a rating on the Bonds.

"**Rebate Amount**" has the meaning ascribed in Section 1.148-3(b) of the Regulations and generally means the excess as of any date of the future value of all receipts on Nonpurpose Investments over the future value of all payments on Nonpurpose Investments all as determined in accordance with Section 1.148-3 of the Regulations.

"**Rebate Analyst**" means Bond Counsel or an independent public accountant or other independent financial analyst qualified and experienced in the calculation of Rebate Payments under Section 148 of the Code and not unacceptable to the Trustee, charged with calculating to Rebate Amounts and Rebate Payments with respect to a Tax-Exempt Bonds.

"**Rebate Fund**" means the special trust fund so designated, established pursuant to Section 5.1 hereof.

"**Rebate Payment**" shall mean the minimum amount of rebatable arbitrage required to be paid with respect to any particular Tax-Exempt Bonds on a Computation Date.

"**Regulations**" means the applicable Income Tax Regulations under Sections 103 and 141 through 150 of the Code and, to the extent appropriate, any predecessor statute, whether at the time proposed, temporary, final or otherwise.

"**Record Date**" shall mean the fifteenth (15th) day (whether or not a Business Day) of the month next preceding each Interest Payment Date.

"**Redemption Account**" means the Account so designated, established within the Debt Service Fund pursuant to Section 5.1 hereof.

"**Redemption Date**" shall mean the date fixed for redemption of Bonds subject to redemption in any notice of redemption given in accordance with the terms hereof.

"**Redemption Price**" shall mean an amount equal to the principal of and premium, if any, and accrued interest, if any, on the Bonds to be paid on the Redemption Date.

"**Remarketing Agent**" means any investment banking firm or firms which shall be appointed by the Borrower to act as Remarketing Agent under this Indenture.

"**Remarketing Agreement**" means that certain Remarketing Agreement relating to any series of Bonds by and between the Borrower and the Remarketing Agent or any similar agreement between the Borrower and a Remarketing Agent, as it may be amended or supplemented from time to time in accordance with its terms.

"**Required Bondholders**" means in the case of consent or direction to be given hereunder, the holders of the majority in aggregate principal amount Outstanding of Bonds.

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"**Responsible Officer**" means, when used with respect to the Trustee, any vice president, assistant vice president, senior associate, associate or other officer of the Trustee within the designated corporate trust office specified in Section 13.1 (or any successor corporate trust office) customarily performing functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred at the designated corporate trust office specified in Section 13.1 because of such person's knowledge of and familiarity with the particular subject and having direct responsibility for the administration of this Indenture.

"**S&P**" shall mean S&P Global Ratings, a business unit of Standard & Poor's Financial Services LLC, and its successors and assigns, except that if such corporation shall be dissolved or liquidated or shall no longer perform the functions of a securities rating agency, then the term "S&P" shall be deemed to refer to any other nationally recognized securities rating agency selected by the Borrower.

"**Scheduled Mandatory Tender Date**" means, with respect to the initial Term Rate Period, the date set forth in Section 2.1(c), and with respect to any subsequent Term Rate Period, the first Business Day following the last day of such Term Rate Period.

"**Securities Depository**" shall mean The Depository Trust Company, 711 Stewart Avenue, Garden City, New York 11530, Fax (516) 227-4039 or 4190 and such other securities depository as the Borrower may designate in a certificate of the Borrower delivered to the Trustee.

"**Series**" means any series of Bonds.

"**Series 2026 Bond Fund**" means the special trust fund so designated, established and maintained pursuant to Section 5.1 hereof.

"**Series 2026 Capitalized Interest Account**" means the special trust fund so designated, established and maintained pursuant to Section 5.1 hereof.

"**Series 2026 Construction Account**", the "**Bond Proceeds Subaccount**" thereof and the "**Equity Subaccount**" thereof means the special trust fund and the subaccounts thereof so designated, established and maintained pursuant to Section 5.1 hereof.

"**Series 2026 Costs of Issuance Account**" means the special trust fund so designated, established and maintained pursuant to Section 5.1 hereof.

"**Sinking Fund Payment**" means the amount required by this Indenture as payable on a single future date for the retirement of any Outstanding Bonds which are expressed to mature after such future date, but does not include any amounts payable by reason only of the maturity of a Bond.

"**Supplemental Indenture**" means any indenture supplemental hereto or amendatory hereof, adopted by the Issuer in accordance with Article X hereof.

"**Tax Certificate**" means collectively, the Arbitrage and Tax Certificate dated the date of initial issuance and delivery of the Series 2026 Bonds, executed by the Issuer and the Borrower, and any amendments and supplements thereto.

"**Taxable Bonds**" means any Series of Bonds, the interest on which is includable in federal income tax under the Code.

"**Tax-Exempt Bonds**" means the Series 2026 Bonds and any other Series of Bonds, the interest on which is excludable from the gross income of the holders thereof for federal income tax purposes.

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"**Tax Incidence Date**" means the date as of which interest on any Tax-Exempt Bonds becomes or became includable in the gross income of the recipient thereof (other than the Borrower or another substantial user or related person) for federal income tax purposes for any cause, as determined by a Determination of Taxability.

"**Term**" when used with reference to the Loan Agreement, means the term of the Loan Agreement determined as provided in Article III thereof.

"**Term Rate**" means the per annum interest rate for the Bonds in the Term Rate Mode determined pursuant to Section 2.1(f) hereof.

"**Term Rate Bond**" means a Bond in the Term Rate Mode.

"**Term Rate Mode**" means the Mode during which the Bonds bear interest at the Term Rate.

"**Term Rate Period**" means the period from (and including) the date on which the Bonds are converted to the Term Rate Mode to (and including) the last day of the applicable Term Rate Mode, thereafter, the period from (and including) the beginning date of each successive Mode selected for the Term Rate Bonds by the Borrower pursuant to Section 2.1(f) to (but excluding) the commencement date of the next succeeding Term Rate Period or the Fixed Rate Period.

"**Trust Estate**" means all property and rights granted to the Trustee pursuant to the granting clauses of this Indenture, as the same may be amended or supplemented from time to time.

"**Trustee**" shall mean the commercial bank, trust company or other entity which may from time to time be appointed to serve as Trustee as provided in Section 9.1 hereof. The initial Trustee shall be UMB Bank, N.A.

"**Unassigned Rights**" means the Issuer's rights under Sections 3.2(a)(iv), 3.2(b), 3.3, 4.3, 6.1(a), 7.4, 7.5, 7.6, 7.10 7.11, 7.13, 7.14 and 7.15 of the Loan Agreement, and, to the extent not expressly provided in such sections or in any other sections hereof or thereof), the Issuer's rights hereunder or thereunder to (i) inspect books and records, (ii) give or receive notices, approvals, consents, requests, and other communications, (iii) receive payment or reimbursement of expenses, including, without limitation, "Additional Payments" as defined in the Loan Agreement and the Issuer's Annual Fee, (iv) immunity from and limitation of any liability, (v) indemnification by each Borrower or any other Person, (vi) security for the indemnification obligation of each Borrower, and (vii) to enforce, in the Issuer's own name and on the Issuer's own behalf, those provisions hereof or of the Loan Agreement and any other document, instrument or agreement entered into with respect to the Bonds that provides generally for the foregoing enumerated rights or any similar rights of the Issuer or any Issuer Indemnified Person. For avoidance of doubt, the "Unassigned Rights" referenced in clauses (iv), (v), and (vi), above, shall include (but not be limited to) the rights of the Issuer Indemnified Persons to immunity from and limitation of liability and indemnification by the Borrower as provided in the Loan Agreement and the right of any such Issuer Indemnified Person to enforce such rights in his, her or its own name.

"**2026 DSR Account**" means the special trust account so designated, established and maintained pursuant to Section 5.1 hereof.

Section 1.2 <u>Interpretation.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In this Indenture:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Any capitalized word or term used but not defined herein shall have the meaning ascribed to such word or term in the Loan Agreement or the Tax Certificate, as the case may be.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The terms "hereby", "hereof', "hereto", "herein", "hereunder" and any similar terms, as used in this Indenture, refer to this Indenture, and the term "hereafter" means after, and the term "heretofore" means before, the date of execution of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Words importing persons include firms, associations, partnerships (including limited partnerships), limited liability companies, trusts, corporations and other legal entities, including public bodies, as well as natural persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any headings preceding the texts of the several Articles and Sections of this Indenture, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Indenture, nor shall they affect its meaning, construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) All approvals, consents and acceptances required to be given or made by any person or party hereunder shall be at the reasonable discretion of the party whose approval, consent or acceptance is required except to the extent otherwise specified herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) This Indenture shall be governed by and construed in accordance with the applicable laws of the State of Wisconsin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Unless otherwise provided herein, all references to a particular time are to Eastern Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Whenever the Issuer is named or referred to, it shall be deemed to include its successors and assigns whether so expressed or not. All of the covenants, stipulations, obligations, and agreements by or on behalf of, and other provisions for the benefit of, the Issuer contained in this Indenture shall bind and inure to the benefit of such successors and assigns and shall bind and inure to the benefit of any officer, board, commission, issuer, agency or instrumentality to whom or to which there shall be transferred by or in accordance with law any right, power or duty of the Issuer, or of its successors or assigns, the possession of which is necessary or appropriate in order to comply with any such covenants, stipulations, obligations, agreements or other provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If any one or more of the covenants or agreements provided herein on the part of the Issuer or the Trustee to be performed should be contrary to law, then such covenant or covenants or agreement or agreements shall be deemed separable from the remaining covenants and agreements hereof, and shall in no way affect the validity of the other provisions of this Indenture or of the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes hereof, the Trustee shall not be deemed to have knowledge of any fact or the occurrence of any event unless and until a Responsible Officer of the Trustee has written notice thereof or actual knowledge thereof, provided that the Trustee shall be deemed to have knowledge of any default in payments due on the Bonds.

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**ARTICLE II.**<br> **<u>AUTHORIZATION, ISSUANCE, CONDITIONS AND TERMS OF BONDS</u>**

Section 2.1 <u>Authorization and Issuance of Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bonds of the Issuer issued hereunder shall be subject to the terms, conditions and limitations established herein. No Bonds may be authenticated and delivered except in accordance with this Article II.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) There shall be issued under and secured by this Indenture a series of Bonds to be designated "Public Finance Authority Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026", in the aggregate principal amount of $150,000,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Series 2026 Bonds shall be initially issued as Term Rate Bonds in the Term Rate Mode, bearing interest at the applicable initial Term Rate per annum, during the applicable initial Term Rate Period set forth below.

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| | | | | |
|:---|:---|:---|:---|:---|
| Principal<br> <u>Amount</u> | <u>Term Rate</u> | Term Rate Period<br> <u>(Delivery Date through)</u> | Scheduled<br> Mandatory<br> <u>Tender Date</u> | Earliest<br> Optional Mode<br> <u>Change Date</u> |
| $150000000 | 6.000% | December 31, 2030 | January 1, 2031 | Date of Delivery |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Series 2026 Bonds shall be subject to mandatory tender for purchase on the first Business Day following the last day of the applicable initial Term Rate Period and on any Conversion Date on or after the Earliest Optional Mode Change Date set forth above, as provided in Section 3.5 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On each Mandatory Tender Date, the Borrower may elect to convert all or a portion of such Series 2026 Bonds to bear interest at a new Term Rate for a new Term Rate Period or convert all or a portion of the Series 2026 Bonds to bear interest at a Fixed Rate, as set forth in Section 3.6 hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Remarketing Agent shall determine the Term Rate for the Series 2026 Bonds for each Term Rate Period subsequent to the initial Term Rate Period and the Fixed Rate for Series 2026 Bonds converted to the Fixed Rate Mode in the manner and at the times as follows: not later than 4:00 P.M. on the applicable Rate Determination Date, the Remarketing Agent shall determine the Term Rate or the Fixed Rate, as applicable. The Term Rate or the Fixed Rate, as applicable, shall be the minimum interest rate which, in the sole judgment of the Remarketing Agent, will result in a sale of all of the Series 2026 Bonds then being remarketed at the applicable remarketing price on the Rate Determination Date. The Remarketing Agent shall make the Term Rate or the Fixed Rate, as applicable, available by telephone or by Electronic Means after 4:00 P.M. on the Rate Determination Date to each Notice Party. Each Term Rate so established shall remain in effect until the end of the applicable Term Rate Period selected by the Borrower in writing delivered to the Remarketing Agent prior to the applicable Rate Determination Date. The Fixed Rate so established shall remain in effect until the maturity date of such Series 2026 Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Series 2026 Bonds shall be numbered from one upward, in consecutive numerical order. Bonds issued in exchange shall be numbered in such manner as the Trustee in its discretion shall determine.

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Section 2.2 <u>Method and Place of Payment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise provided in any writing with or from the Securities Depository, the interest on the Bonds shall be paid by the Paying Agent on the Interest Payment Dates by wire transfer of immediately available funds to an account specified by the Owner in a writing delivered to the Paying Agent. Any such specified account shall remain in effect until revised by such Owner by an instrument in writing delivered to the Paying Agent. The principal of and premium, if any, on each Bond shall be payable on the Principal Payment Date, upon surrender thereof at the designated office of the Paying Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as may be specifically set forth herein, the Paying Agent, the Trustee, the Borrower and the Issuer may treat the Owner of a Bond as the absolute owner thereof for all purposes, whether or not such Bond shall be overdue, and the Paying Agent, the Trustee, the Borrower, and the Issuer shall not be affected by any knowledge or notice to the contrary; and payment of the principal of and premium, if any, and interest on such Bond shall be made only to such Owner, which payments shall be valid and effectual to satisfy and discharge the liability of such Bond to the extent of the sum or sums so paid. All Bonds at maturity or on earlier redemption paid pursuant to the provisions of this Section shall be cancelled by the Paying Agent.

Section 2.3 <u>Payment of Principal and Interest of Bonds; Acceptance of Terms and Conditions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The interest on the Bonds shall become due and payable on the Interest Payment Dates in each year to and including the Maturity Date, on each Redemption Date, on each Mandatory Tender Date, and on the date of any acceleration prior thereto. The principal of the Bonds shall become due and payable on the Principal Payment Dates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By the acceptance of its Bond, the Owner and each Beneficial Owner thereof shall be deemed to have agreed to all the terms and provisions of such Bond as specified in such Bond and this Indenture including, without limitation, the applicable interest rates, mandatory and optional redemption provisions and mandatory tender provisions applicable to such Bond, method and timing of redemption, payment, etc. Such Owner and each Beneficial Owner further agree that if, on any date upon which one of its Bonds is to be redeemed or paid at maturity or earlier due date, funds are on deposit with the Paying Agent or the Trustee to pay the full amount due on such Bond, then such Owner or Beneficial Owner shall have no rights under this Indenture other than to receive such full amount due with respect to such Bond and that interest on such Bond shall cease to accrue as of such date.

Section 2.4 <u>Calculation and Payment of Interest</u>. Interest shall be calculated on the basis of a 360 day year comprised of twelve 30-day months. Payment of interest on each Bond shall be made on each Interest Payment Date for such Bond for unpaid interest accrued during the Interest Accrual Period to the Owner of record of such Bond on the applicable Record Date. In the absence of manifest error, the record of interest rates maintained by the Paying Agent shall be conclusive and binding upon the Paying Agent, the Trustee, the Issuer, the Borrower, the Owners and the Beneficial Owners.

Section 2.5 <u>Maximum Interest Rate</u>. Notwithstanding any provision herein to the contrary, at no time, whether as a result of an Event of Default or otherwise, shall the Bonds bear interest at an interest rate higher than the Maximum Rate.

Section 2.6 <u>Book-Entry System</u>. Initially the Bonds will be issued as book-entry only bonds and the Letter of Representations with DTC and the provisions of such Letter of Representations shall be incorporated herein by reference; provided, however, that a Supplemental Indenture authorizing a Series of Bonds may include provisions superseding the provisions of the Letter of Representations with respect to that Series.

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Unless otherwise provided in the Supplemental Indenture authorizing a Series of Bonds, the Bonds of each Series shall be initially issued in the form of a single, fully-registered certificate in the aggregate principal amount of each maturity of each Series or in more than one such certificate if and to the extent, required by DTC. So long as the Bonds of a Series are held in the Book-Entry System the registered owner of all of the Bonds of such Series shall be DTC, and the Bonds of the Series shall be registered in the name of Cede & Co., as nominee for DTC. The Trustee and the Issuer may treat DTC (or its nominee) as the sole and exclusive registered owner of the Bonds of such Series registered in its name for the purposes of payment of the principal of or interest on the Series of Bonds, giving any notice permitted or required to be given to registered owners under this Indenture and the Letter of Representations, registering the transfer of Bonds, obtaining any consent or other action to be taken by registered owners and for all other purposes whatsoever; and neither the Trustee nor the Issuer shall be affected by any notice to the contrary. Neither the Trustee nor the Issuer shall have any responsibility or obligation to any DTC Participant, any person claiming a beneficial ownership interest in the Bonds of a Series under or through DTC or any DTC Participant, or any other person which is not shown on the registration books of the Trustee as being a registered owner, with respect to the accuracy of any records maintained by DTC or any DTC Participant; the payment to DTC or any DTC Participant of any amount in respect of the principal of or interest on the Bonds of the Series; any notice which is permitted or required to be given to registered owners under this Indenture and the Letter of Representations; or any consent given or other action taken by DTC as registered owner. The Trustee shall pay from monies available hereunder all principal of, and interest on the Bonds of a Series only to or "upon the order" of DTC (as that term is used in the Uniform Commercial Code as adopted in the State of New York), and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with respect to the principal of and interest on the Bonds of a Series to the extent of the sum or sums so paid. So long as the Bonds of a Series are held in the Book-Entry System, no person other than DTC shall receive an authenticated bond certificate of that Series. Upon delivery by DTC to the Trustee of DTC's written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., and subject to the provisions of the Supplemental Indenture and this Indenture with respect to transfers of Bonds, the term "Cede & Co." in the Supplemental Indenture and this Indenture shall refer to such new nominee of DTC; provided, however, registered ownership of the Bonds of a Series, or any portions thereof, may not be transferred except (i) to any successor of DTC or its nominee, provided that any such successor shall be qualified under any applicable laws to provide the service proposed to be provided by it; (ii) to any substitute depository or its successor; or (iii) to any person as provided in the following paragraph.

In the event that (i) DTC or its successor (or substitute depository or its successor) resigns or is removed from its functions as depository, and no substitute depository can be obtained, or (ii) the Issuer determines following direction from the Borrower to discontinue the use of the Book-Entry System the ownership of Bonds may then be transferred to any person or entity as provided in the Indenture and the Bonds shall no longer be held in the Book-Entry System. In any such event, the Issuer (subject to Section 13.7 hereof) shall deliver a written request to the Trustee, together with a supply of bond certificates, to issue Bonds as provided in this Indenture in any authorized denomination. Upon receipt of all then Outstanding Bonds by the Trustee, together with the aforementioned written request of the Issuer new Bonds shall be issued and authenticated in such denominations and registered in the names of such persons as are requested in such written request.

The Bondholders have no right to require the use of the Book-Entry System.

Whenever DTC requests the Issuer to do so, the Issuer (subject to Section 13.7 hereof) will cooperate with DTC in taking appropriate action after written notice to arrange for another securities depositary to maintain custody of certificates evidencing the Bonds.

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Section 2.7 <u>Execution and Authentication of Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) After their authorization as provided in this Article, Bonds may be executed by or on behalf of the Issuer by any Authorized Signatory and delivered to the Trustee for authentication. Each Bond shall be executed in the name of the Issuer by the manual or facsimile signature of any Authorized Signatory.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case any officer who shall have signed any of the Bonds shall cease to be such officer before the Bonds so signed shall have been authenticated and delivered by the Trustee, such Bonds may nevertheless be authenticated and delivered as herein provided as if the person who so signed such Bonds had not ceased to be such officer. Any Bond may be signed on behalf of the Issuer by any person who, on the date of such act, shall hold the proper office, notwithstanding that at the date of such Bond such person may not have held such office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Bonds shall each bear thereon a certificate of authentication, in the form set forth in <u>Exhibit A</u> hereto, executed manually by the Trustee. Only such Bonds as shall bear thereon such certificate of authentication shall be entitled to any right or benefit under this Indenture and no Bond shall be valid or obligatory for any purpose until such certificate of authentication shall have been duly executed by the Trustee. Such certificate of the Trustee upon any Bond executed on behalf of the Issuer shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered under this Indenture and that the holder thereof is entitled to the benefits hereof.

Section 2.8 <u>Delivery of Bonds.</u>

The Series 2026 Bonds and each series of Additional Bonds shall be executed in the form and manner set forth herein, presented to the Trustee and thereupon authenticated by the Trustee in accordance with the direction of the Issuer, and deposited with the Trustee to be held as F.A.S.T. agent for DTC. Upon payment to the Trustee of the proceeds of sale thereof, such Bonds shall be delivered by the Trustee to or upon the order of the purchasers thereof, but only upon receipt by the Trustee of:

(i) A certified copy of the Issuer's resolution authorizing the issuance of such Bonds and the execution and delivery of this Indenture and the other Issuer Financing Documents;

(ii) Original executed counterparts, or certified copies, of the General Financing Documents and, in the case of Additional Bonds, the supplement to or modification or amendment of the Loan Agreement and this Indenture entered into prior to such delivery and such other documents as the Trustee or the purchaser of such Additional Bonds may require;

(iii) A request and authorization to the Trustee on behalf of the Issuer to authenticate and deliver such Bonds to the purchasers therein identified upon payment to the Trustee, for the account of the Issuer, of a sum specified in such request and authorization, plus any accrued interest on such Bonds to the date of such delivery. The proceeds of such payment shall be paid over to the Trustee and deposited in the Debt Service Fund, the Debt Service Reserve Fund and the Series 2026 Bond Fund pursuant to Article V hereof; and

(iv) A written opinion by Bond Counsel to the effect that the issuance of such Bonds has been duly authorized and that all conditions precedent to the delivery thereof have been fulfilled and, in the case of any series of Additional Bonds, to the effect that the issuance of such Additional Bonds will not impair the exemption from federal income taxation of any Tax-Exempt Bonds Outstanding on the date of issuance of such Additional Bonds.

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Section 2.9 <u>Issuance of Additional Bonds.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer may, in its sole and exclusive discretion, but shall not be obligated to, issue Additional Bonds hereunder, from time to time, for the following purposes:

(i) To acquire and construct or rehabilitate or renovate new or expanded facilities of the Borrower.

(ii) To pay the cost of refunding through redemption of any Outstanding Bonds issued under this Indenture and subject to such redemption.

(iii) To pay the cost of refunding through redemption any other indebtedness of the Borrower and subject to such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In any such event the Trustee shall, at the direction of the Issuer, authenticate the Additional Bonds and deliver them as specified in the request, but only upon receipt of:

(i) A Supplemental Indenture: (A) setting forth the terms of the Additional Bonds; (B) for Additional Bonds described in paragraph (a)(i) above, describing the facilities to be added to the Project; (C) for Additional Bonds described in paragraph (a)(i) above, also describing the realty and facilities to become part of the Project; and (D) for any Additional Bonds, (1) stating the purpose of the issue, (2) establishing the series of Bonds to be issued and providing the terms and form of Bonds thereof and directing the payments to be made into the funds hereunder, (3) authorizing the execution and delivery of the Additional Bonds to be issued, and (4) authorizing the redemption of any previously issued Bonds which are to be refunded;

(ii) A supplemental Agreement providing for additional payments to be made by the Borrower thereunder sufficient to pay principal and Redemption Price of and interest on the Additional Bonds and all other amounts required to be paid with respect thereto;

(iii) For any Additional Bonds described in paragraph (a)(ii) above, a certificate of the Borrower (A) stating that notice of redemption of the Bonds to be refunded has been given or that provisions have been made therefor and (B) stating that the proceeds of the Additional Bonds plus the other amounts, if any, stated to be available for the purpose, will be sufficient to accomplish the purpose of the refunding and to pay the cost of refunding, which shall be itemized in reasonable detail;

(iv) For any Additional Bonds, a certificate of the Borrower stating that it has no knowledge that an Event of Default hereunder has occurred and is continuing;

(v) For any Additional Bonds, an opinion or opinions of Bond Counsel that (A) the purpose of the Additional Bonds is one for which Additional Bonds may be issued under this Section, (B) all conditions prescribed herein as precedent to the issuance of the Additional Bonds have been fulfilled, (C) the Additional Bonds have been validly authorized and executed and when authenticated and delivered pursuant to the request of the Issuer will be valid, legally binding, special limited obligations of the Issuer, enforceable against the Issuer in accordance with their terms (except to the extent that the rights and remedies created thereby are subject to bankruptcy, insolvency, reorganization, moratorium and similar laws affecting the rights and remedies of creditors and secured parties, and that the availability of specific enforcement, injunctive relief or other equitable remedies is subject to the discretion of the court before which any proceeding therefor may be brought) and are entitled to the benefit and security of this Indenture, (D) all consents of any regulatory bodies required as a condition to the valid issuance of the Additional Bonds have been obtained and (E) issuance of such Additional Bonds will not adversely affect the tax status of the interest on Outstanding Tax-Exempt Bonds;

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(vi) For any Additional Bonds, an opinion of counsel to the Borrower addressing the execution and delivery of the documents being executed and delivered in connection with the issuance of the Additional Bonds; and

(vii) For any Additional Bonds, a deposit to the Debt Service Reserve Fund of such amounts as are required so that there shall be on deposit therein an amount equal to the Debt Service Reserve Fund Requirement, if any, for such Additional Bonds.

**ARTICLE III.**<br> **<u>REDEMPTION OF BONDS; MANDATORY TENDER; CONVERSION</u>**

Section 3.1 <u>Optional, Mandatory Sinking Fund and Special Mandatory Redemption of Series 2026 Bonds.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Optional Redemption of Series 2026 Bonds**.

During the initial Term Rate Period described herein, the 2026 Bonds are subject to optional redemption, upon the written direction of the Borrower to the Trustee (a copy of such direction shall be provided to the Issuer), prior to maturity, in whole or in part at any time on or after January 1, 2030, at a Redemption Price equal to the principal amount thereof, plus the Optional Redemption Premium described below, plus interest accrued to the redemption date.

The "Optional Redemption Premium" means the redemption premium set forth below (expressed as a percentage of the principal amount redeemed) applicable to the date on which redemption occurs:

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| | |
|:---|:---|
| <u>Period During Which Redeemed</u> | <u>Redemption Premium</u> |
| January 1, 2030 through and including September 30, 2030 | 1% |
| October 1, 2030 and thereafter | 0% |

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Upon the delivery of such written request by the Borrower to the Trustee, the Issuer shall be deemed, without any action on the Issuer's part, to have exercised its option to redeem the Bonds under this clause (a) of Section 3.1.

During any subsequent Term Rate Period and after the conversion of any Term Rate Bonds to the Fixed Rate Mode, unless redemption provisions are otherwise established by the Borrower pursuant to the provisions hereof or any Supplemental Indenture delivered in connection with such conversion, the Series 2026 Bonds shall be subject to redemption on the 10<sup>th</sup> anniversary of such conversion at par.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Mandatory Sinking Fund Redemption**. The Series 2026 Bonds are subject to mandatory sinking fund redemption in part by lot on July 1 of the years and in the respective principal amounts set forth below, at a Redemption Price equal to the principal amount thereof, from mandatory Sinking Fund Payments which will be made in amounts sufficient to redeem, on July 1 of each of the following years, the principal amount of the Series 2026 Bonds set forth opposite such year below:

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| | |
|:---|:---|
| **Year**<br> **<u>(July 1)</u>** | **<u>Amount</u>** |
| 2056 | $26345000 |
| 2057 | 28060000 |
| 2058 | 29880000 |
| 2059 | 31825000 |
| 2060<sup>\*</sup> | 33890000 |

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____________<br> \* Maturity.

Section 3.2 <u>Mandatory Taxability Redemption</u>. Upon the occurrence of a Determination of Taxability, the Series 2026 Bonds are subject to mandatory redemption in whole on the earliest practicable date for which notice can be given pursuant to Section 6.3 hereof (but in any event no later than sixty (60) days after the Trustee has actual knowledge thereof), at a redemption price equal to the principal amount thereof plus accrued interest. In the case of any redemption pursuant to this subsection, the Issuer or the Borrower shall deliver to the Trustee a certificate of an Authorized Representative specifying the event giving rise to such inclusion in the gross income of the recipient thereof and the dates which are the Tax Incidence Date and the date of the Determination of Taxability. Such certificate shall be delivered at least ten days before notice of redemption is required to be given.

Section 3.3 <u>[Reserved]</u>.

Section 3.4 <u>General Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon any redemption of Bonds there shall also be due and payable, concurrently with the payment of the Redemption Price, all other amounts then due under the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Redemption of Bonds permitted or required by this Article III shall be made as follows, and the Trustee shall give the notice of redemption referred to in Section 6.3 hereof in respect of each such redemption:

(i) Redemption shall be made pursuant to the general optional redemption provisions of Section 3.1 on the dates permitted in such subsection and in such principal amounts and maturities as the Borrower shall request in a written notice to the Trustee and the Issuer in accordance with Section 6.2 of the Loan Agreement.

(ii) Redemption shall be made pursuant to the Determination of Taxability redemption provisions of Section 3.2 at the earliest possible date following receipt of the certificate prescribed in Section 3.2 and payments made by the Borrower prescribed in Section 6.1 of the Loan Agreement, without the necessity of any instructions or further act of the Issuer or the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Additional Bonds shall be subject to redemption prior to maturity at such times and prices, in the manner and upon such terms and conditions, not inconsistent with this Indenture, as shall be specified in the Supplemental Indenture authorizing such Additional Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, on any date set hereunder for the redemption of Bonds, moneys for the redemption of such Bonds or any portions thereof to be redeemed, together with interest to such redemption date, shall be held by the Trustee so as to be available therefor on said date and if notice of redemption shall have been given as required in this Indenture, then, from and after such redemption date interest on such Bonds or portions thereof so called for redemption shall cease to accrue and become payable. If said moneys shall not be so available on such redemption date, such Bonds or portions thereof shall continue to bear interest until paid at the same rate as they would have borne had they not been called for redemption.

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Section 3.5 <u>Tender of Bonds</u>. Bonds in the Term Rate Mode shall be subject to mandatory tender for purchase on each Mandatory Tender Date at the applicable Purchase Price. Each Owner and each beneficial owner of Term Rate Bonds, by its acceptance of such Term Rate agrees to tender its Term Rate Bonds to the Trustee for purchase on each Mandatory Tender Date at the applicable Purchase Price. The Trustee shall give notice of such mandatory purchase by mail (or, in the case of Term Rate Bonds in book-entry form, in accordance with the procedures of DTC) to the Owners of the Term Rate Bonds subject to mandatory purchase no less than ten (10) days prior to the Mandatory Tender Date. Any notice shall state the Mandatory Tender Date, the Purchase Price, the numbers of the Term Rate Bonds to be purchased if less than all of the Term Rate Bonds owned by such Owner are to be purchased, the CUSIP numbers of the Term Rate Bonds to be tendered, and that, unless the Issuer fails to pay the Purchase Price (solely and exclusively from the Trust Estate), interest on the Term Rate Bonds subject to mandatory purchase shall cease to accrue from and after the Mandatory Tender Date. The failure to send such notice with respect to any Term Rate Bond shall not affect the validity of the mandatory purchase of any other Term Rate Bond with respect to which notice was so sent or the mandatory purchase on a Scheduled Mandatory Tender Date. Any notice sent will be conclusively presumed to have been given, whether or not actually received by any Owner or beneficial owner.

Section 3.6 <u>Conversion</u>. While Bonds are in a Term Rate Mode, on each Mandatory Tender Date and on any Business Day on or after the Earliest Optional Mode Change Date, the Borrower may convert all or a portion of such Term Rate Bonds to bear interest at a new Term Rate for a new Term Rate Period selected by the Borrower or convert all or a portion of such Bonds to bear interest at a Fixed Rate. If a new Term Rate Period is not selected by the Borrower prior to a Rate Determination Date, the new Term Rate Period shall be the same length as the then current Term Rate Period provided that no Term Rate Period may extend beyond the applicable maturity date. The Borrower also shall select the Earliest Optional Mode Change Date for each Term Rate Period. When a portion of the Term Rate Bonds is subject to a conversion, the Borrower may change the series designation for such portion with notice to the Trustee and the Issuer. On any Business Day which is at least twelve (12) days before the proposed Conversion Date, the Borrower shall give written notice to the Notice Parties stating that the Term Rate Bonds will be converted to a new Term Rate for a new Term Rate Period or to the Fixed Rate, as applicable, and setting forth the proposed Conversion Date. Not later than the tenth (10<sup>th</sup>) day next preceding the Conversion Date, the Trustee shall, in accordance with written instructions from the Borrower, send, in the name of the Issuer, a notice of such proposed conversion to the Owners of the Term Rate Bonds stating that the Bonds will be converted to a new Term Rate for a new Term Rate Period or to a Fixed Rate, as applicable, the proposed Conversion Date and that such Owner is required to tender such Owner's Bonds for purchase on such proposed Conversion Date. The new Mode shall commence on the Conversion Date and the interest rate(s) shall be determined by the Remarketing Agent in the manner provided in Section 2.1(f) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The conversion to a new Term Rate for new Term Rate Period or to the Fixed Rate, as applicable, shall not occur unless a Favorable Opinion of Bond Counsel dated as of the Conversion Date and addressed to the Notice Parties shall have been delivered to the Notice Parties on or prior to the Conversion Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon conversion, the Bonds shall be remarketed at par, shall mature on the same maturity date(s) and be subject to the same mandatory sinking fund redemption, if any, mandatory tender and optional redemption provisions as set forth in this Indenture prior to such conversion; provided, however, that if the Borrower shall deliver to the Trustee a certificate of the Remarketing Agent certifying that such revised or modified maturity, tender and redemption provisions will improve the marketability of the Bonds in the remarketing because they are industry standard at the time of such conversion for tax-exempt bonds of similar remaining maturity, security and credit quality as the Bonds, together with a Favorable Opinion of Bond Counsel, the Borrower shall direct that the maturity, tender and redemption provisions be revised or modified in one or more of the following ways: (1) establish interim terms for certain of the Bonds, have some of the Bonds be serial bonds with different interest rates for different serial maturities and some subject to sinking fund redemption even if such Bonds were not serial bonds or subject to mandatory sinking fund redemption prior to such change, (2) change the mandatory and/or optional redemption dates and/or premiums applicable to the Bonds, (3) change the mandatory tender dates set forth herein, and/or (4) sell some or all of the Bonds at a premium or a discount to par.

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Notwithstanding anything herein to the contrary, the Borrower may rescind any election by it to change a Mode as described above, with respect to all or a portion of the Bonds or any subseries of the Bonds subject to such change in Mode, prior to the Conversion Date, by giving written notice thereof to the Notice Parties on any date prior to such Conversion Date. If the Trustee receives notice of such rescission prior to the time the Trustee has given notice to the Owners of the Bonds, then such notice of change in Mode shall be of no force and effect. If the Trustee receives notice from the Borrower of rescission of a Mode change after the Trustee has given notice thereof to the Owners of the Bonds, then if the proposed Conversion Date would have been a Mandatory Tender Date solely as a result of such conversion, the Trustee shall give notice of such rescission to the Owners of the Bonds, and such date shall no longer be a Mandatory Tender Date. If the proposed Conversion Date would have been a Mandatory Tender Date regardless of whether such date was a Conversion Date, such date shall continue to be a Mandatory Tender Date. If the proposed change in Mode was from the Term Rate Mode, then the Bonds shall stay in the Term Rate Mode for a Term Rate Period ending on the following Interest Payment Date for the Bonds in the Term Rate Mode and the interest rate shall be established by the Remarketing Agent in accordance with Section 2.1(f).

Section 3.7 <u>Remarketing</u>. (a) The Borrower shall, not later than ten (10) days prior to each Mandatory Tender Date, appoint and employ the services of a Remarketing Agent. The Remarketing Agent shall be authorized by law to perform all of the duties imposed upon it by this Indenture. The Remarketing Agent appointed by the Borrower shall use its best efforts to offer for sale: (i) all Term Rate Bonds required to be purchased on a Mandatory Tender Date as described in Section 3.5, and (ii) any Borrower Bonds (as hereinafter defined), provided that in no event shall the Remarketing Agent remarket any Bonds to the Issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On each date on which a Term Rate Bond is to be purchased:

(1) the Remarketing Agent shall notify by Electronic Means the Trustee and the Borrower by 10:30 A.M. on such date if it has been unable to remarket all the tendered Bonds, and shall include in such notice the principal amount of Bonds it has been unable to remarket;

(2) if the Bonds are no longer in the book-entry-only system, the Remarketing Agent shall notify the Trustee and the Borrower by Electronic Means by 1:00 P.M. on such date of the names of the purchasers of the remarketed Bonds and such information as may be necessary to register the Bonds and the registration instructions, including, without limitation, the names, addresses and taxpayer identification numbers of the purchasers and the desired Authorized Denominations with respect thereto; and

(3) if the Bonds are no longer in the book-entry-only system, the Trustee shall authenticate new Bonds for the respective purchasers thereof which shall be available for delivery to purchasers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Remarketing Agent shall cause the proceeds of the sale of tendered Term Rate Bonds to be paid to the Trustee in immediately available funds by 10:00 A.M. on the Mandatory Tender Date. The Remarketing Agent shall cause to be paid to the Trustee on each Mandatory Tender Date for tendered Term Rate Bonds all amounts representing proceeds of the remarketing of such Bonds. If the Purchase Price exceeds par, the Borrower will provide (or cause to be provided) the difference between the remarketing proceeds and the Purchase Price, and if the Purchase Price is less than par, the remarketing proceeds in excess of the Purchase Price shall be held, invested and expended as set forth in a Favorable Opinion of Bond Counsel.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On each date on which a Term Rate Bond is to be purchased, if the Remarketing Agent shall have given notice to the Borrower that it has been unable to remarket all the Bonds, then by 1:30 P.M. the Borrower shall pay or cause to be paid, by wire transfer of immediately available funds, the amount of the Purchase Price of the unremarketed tendered Term Rate Bonds specified in the notice provided above, to the Trustee. Bonds so purchased with amounts furnished by or on behalf of the Borrower shall be "Borrower Bonds."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) By 3:00 P.M. on the date on which a Term Rate Bond is to be purchased, the Trustee shall purchase tendered Term Rate Bonds from the tendering Owners at the applicable Purchase Price by wire transfer in immediately available funds. Funds for the payment of such Purchase Price shall be derived solely from the following sources in the order of priority indicated and none of the Trustee or the Remarketing Agent shall be obligated to provide funds from any other source:

(1) immediately available funds provided to the Trustee pursuant to Section 3.7(d) hereof; and

(2) immediately available funds provided to the Trustee pursuant to Section 3.7(e) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) On each date on which a Term Rate Bond is to be purchased, such Bond sold by the Remarketing Agent the proceeds of which have been deposited as described in Section 3.7(c) shall be registered and made available to the Remarketing Agent by 1:30 P.M. on such date.

Section 3.8 <u>Selection of Bonds to be Tendered for Purchase.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If less than all of the Bonds are subject to mandatory tender for purchase, the series, subseries and maturities of the Bonds subject to mandatory tender shall be selected by the Borrower. If less than all the Bonds of a series, subseries and maturity are subject to mandatory tender for purchase, the particular Bonds of such series, subseries and maturity or portions thereof to be tendered for purchase shall be selected by the Trustee by lot or in any customary manner of selection as determined by the Trustee, provided that, so long as the Bonds are held in book-entry form, the selection for tender of such Bonds shall be made in accordance with the operational arrangements of DTC then in effect.

**ARTICLE IV.**<br> **<u>GENERAL TERMS AND PROVISIONS OF BONDS</u>**

Section 4.1 <u>Date of Bonds</u>. Each Series 2026 Bond shall be dated and bear interest from the Date of Delivery and each Additional Bond shall be dated and bear interest from the date set forth in the Supplemental Indenture authorizing the issuance of such Additional Bonds, except in the case of Bonds delivered in any exchange or transfer hereunder on or subsequent to the first Interest Payment Date of the Bond for which it is exchanged or transferred, which shall be dated and bear interest from the Interest Payment Date next preceding the date of such delivery, unless, as shown by the records of the Trustee, interest on the Bond surrendered in exchange for such Bond shall be in default, in which case such Bond shall be dated as of the date to which interest has last been paid in full on the Bond so surrendered, and such Bond shall bear interest from such date.

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Section 4.2 <u>Form and Denominations.</u> Unless otherwise provided in the Supplemental Indenture authorizing a series of Bonds, Bonds shall be issued in fully registered form, without coupons, in Authorized Denominations not exceeding the aggregate principal amount of Bonds of the same Series, maturity and interest rate as the Bond for which the denomination is to be specified. The Bonds shall be in substantially the form set forth in <u>Exhibit A</u> to this Indenture, with such variations, omissions and insertions as are permitted or required by this Indenture.

Section 4.3 <u>Medium of Payment</u>. The principal, Redemption Price or Purchase Price, if any, of and interest on the Bonds shall be payable in any coin or currency of the United States of America which, on the respective dates of payment thereof, is legal tender for the payment of public and private debts. Such payment may be made as provided in Section 2.3 hereof.

Section 4.4 <u>Legends.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Bond shall contain on the face thereof the following statement: "This Bond is a special limited obligation of the Issuer payable solely from the Trust Estate, and, except from such source, none of the Issuer, any Member, any Sponsor, any Issuer Indemnified Person, the State of Wisconsin or any political subdivision or agency thereof, or any political subdivision approving the issuance of this Bond shall be obligated to pay the principal of, premium, if any, or interest hereon or any costs incidental hereto. This Bond is not a debt of the State of Wisconsin or any Member and does not, directly, indirectly or contingently, obligate, in any manner, any Member, the State of Wisconsin or any political subdivision or agency thereof, or any political subdivision approving the issuance of this Bond, to levy any tax or to make any appropriation for payment of the principal of, premium, if any, or interest on, this Bond or any costs incidental hereto. Neither the faith and credit nor the taxing power of the State of Wisconsin or any political subdivision or agency thereof, any Member, or any political subdivision approving the issuance of this Bond nor the faith and credit of the Issuer, any Sponsor or any Issuer Indemnified Person shall be pledged to the payment of the principal of, premium, if any, or interest on this Bond or any costs incidental hereto. The Issuer has no taxing power."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Bonds may in addition contain or have endorsed thereon such provisions, specifications and descriptive words not inconsistent with the provisions of this Indenture as may be necessary or desirable to comply with custom or otherwise as may be determined by the Issuer prior to the delivery thereof.

Section 4.5 <u>Bond Details</u>. Subject to the provisions hereof, the Bonds shall be dated, shall mature in such years and such amounts, shall bear interest at such rate or rates per annum, shall be subject to redemption on such terms and conditions and shall be payable as to principal, Redemption Price or Purchase Price, if any, and interest at such place or places as shall be specified in this Indenture and, in the case of a series of Additional Bonds, in the Supplemental Indenture or the resolution of the Issuer authorizing the issuance of such Additional Bonds.

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Section 4.6 <u>Interchangeability; Transfer and Registry.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Bond shall be transferable only upon compliance with the restrictions on transfer set forth on such Bond and only upon the books of the Issuer, which shall be kept for such purpose at the designated corporate trust office of the Trustee, by the registered owner thereof in person or by his attorney duly authorized in writing, upon presentation thereof together with a written instrument of transfer satisfactory to the Trustee duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any Bond the Trustee shall prepare and, authenticate and deliver in the name of the transferee one or more new Bonds of the same aggregate principal amount, Series, and maturity as the surrendered Bond. The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Bond (including any transfers between or among Securities Depositary participants or beneficial owners of interests in any Bond) other than to require delivery of such certificates and other documentation or evidence as is expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof. Neither the Trustee nor any agent shall have any responsibility or liability for any actions taken or not taken by the Securities Depository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any Bond, upon surrender thereof at the designated corporate trust office of the Trustee in New York, New York (or some other place as may be designated by the Trustee from time to time) with a written instrument of transfer satisfactory to the Trustee, duly executed by the registered owner or his attorney duly authorized in writing, may, at the option of the owner thereof, be exchanged for an equal aggregate principal amount of Bonds of the same Series and maturity of any other authorized denominations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise specifically provided herein, the Issuer, the Borrower, the Trustee and any Paying Agent may deem and treat the person in whose name any Bond shall be registered as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal, Redemption Price or Purchase Price, if any, of and interest on such Bond and for all other purposes, and all payments made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the Issuer, the Trustee, the Borrower nor any Paying Agent shall be affected by any notice to the contrary.

Section 4.7 <u>Bonds Mutilated, Destroyed, Stolen or Lost</u>. In case any Bond shall become mutilated or be destroyed, stolen or lost, the Issuer shall execute and thereupon the Trustee shall authenticate and deliver, a new Bond of like Series, maturity and principal amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond, upon surrender and cancellation of such mutilated Bond or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing with the Trustee of evidence satisfactory to the Issuer and the Trustee that such Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Issuer and the Trustee with indemnity satisfactory to them and complying with such other reasonable requirements as the Issuer and the Trustee may prescribe and paying such expenses as the Issuer and Trustee may incur. All Bonds so surrendered to the Trustee shall be canceled by it. Any such new Bonds issued pursuant to this Section in substitution for Bonds alleged to be destroyed, stolen or lost shall constitute original additional contractual obligations on the part of the Issuer, whether or not the Bonds so alleged to be destroyed, stolen or lost be at any time enforceable by anyone, and shall be equally secured by and entitled to equal and proportionate benefits with all other Bonds issued hereunder in any moneys or securities held by the Issuer, the Trustee or any Paying Agent for the benefit of the owners of the Bonds.

Section 4.8 <u>Cancellation and Disposal of Bonds</u>. All Bonds paid or redeemed in full, either at or before maturity, shall be delivered to the Trustee when such payment or redemption is made, and such Bonds together with all Bonds purchased by the Trustee, shall thereupon be promptly canceled. Bonds so canceled shall be cremated or otherwise disposed of by the Trustee in accordance with its customary practices, which shall thereafter execute a certificate of cremation or disposal in duplicate under signature of one of its authorized officers describing the Bonds so cremated or otherwise disposed of, and one executed certificate shall be filed with the Issuer and the other executed certificate shall be retained by the Trustee.

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Section 4.9 <u>Requirements With Respect To Transfers</u>. In all cases in which the privilege of transferring Bonds is exercised, the Issuer shall execute and the Trustee shall authenticate and deliver Bonds in accordance with the provisions of this Indenture. All Bonds surrendered in any such transfer shall forthwith be canceled by the Trustee. For every such transfer of Bonds, the Issuer or the Trustee may, as a condition precedent to the privilege of making such transfer, make a charge sufficient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such transfer. The Trustee shall not be required to transfer any Bond (i) during the period from the close of business on the last Business Day on or preceding the fifteenth (15th) day of the calendar month next preceding each Interest Payment Date until the first Business Day following such interest payment date, or (ii) for which notice of redemption has been given.

Section 4.10 <u>Registrar</u>. The Trustee shall also be registrar for the Bonds, and shall maintain a register showing the names of all registered owners of Bonds, Bond numbers and amounts, and other information appropriate to the discharge of its duties hereunder.

Section 4.11 <u>Principal Balance; Annual and Monthly Reports</u>. The Trustee shall maintain a record of the principal amount of Bonds Outstanding at any time hereunder. Each year, on or before July 31, the Trustee shall deliver to the Issuer and the Borrower a written report stating the principal amount of Bonds Outstanding as of June 30 of such year. On or before the tenth (10<sup>th</sup>) day of each calendar month, the Trustee shall deliver to the Issuer and the Borrower a written report stating the balances of each of the funds and accounts established under this Indenture.

Section 4.12 <u>Transfer Restrictions</u>. Notwithstanding any other provision hereof, each initial Beneficial Owner of the Bonds shall either be (i) a "Qualified Institutional Buyer" within the meaning of Rule 144A promulgated under the Securities Act or (ii) an "Accredited Investor" within the meaning of Rule 501(a) under the Securities Act that, in either case, has provided an "Investor Letter" in the form satisfactory to the Issuer and the Trustee. Thereafter, neither the Bonds nor any beneficial ownership interest therein may be transferred by the Beneficial Owner thereof except (i) in Authorized Denominations (ii) to any Person that is either a Qualified Institutional Buyer or an Accredited Investor, in each case, who is willing and able to conduct an independent investigation of the risks involved with ownership of such Bond and agrees to be bound by the transfer restrictions applicable to such Bond (and in the case of any Accredited Investor who is not a Qualified Institutional Buyer, in a minimum principal amount of $25,000 regardless of any lower minimum denomination authorized hereby). The foregoing transfer restrictions shall not apply if the Borrower shall provide to the Issuer and the Trustee written evidence to the effect that each Rating Agency then rating the Bonds at the request of the Borrower has rated such Bonds "BBB-" or equivalent, or higher (without regard for gradation within a rating category and without regard for credit enhancement unless such credit enhancement extends through the final maturity date of the Bonds), in each case, notwithstanding whether at a future time the Bonds are no longer rated at such rating category. In such event, the Authorized Denominations of the Bonds shall be changed (if necessary) to denominations of $5,000 or any integral multiple thereof. A legend shall be printed on the face of each Bond indicating the foregoing transfer restrictions, if applicable.

Section 4.13 <u>Section 4.13. CUSIP Numbers</u>. The Issuer in issuing the Bonds may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices of redemption as a convenience to holders; provided that none of the Issuer, the Borrower or the Trustee shall have any liability for any defect in the "CUSIP" numbers as they appear on any Bond, notice or elsewhere, and, provided further that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Bonds or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Bonds, and any such redemption shall not be affected by any defect in or omission of such numbers. The Borrower will promptly notify the Trustee in writing of any change in the "CUSIP" numbers.

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**ARTICLE V.**<br> **<u>CUSTODY AND INVESTMENT OF FUNDS</u>**

Section 5.1 <u>Creation of Funds</u>.

(a) The Issuer hereby establishes and creates the following special trust Funds:

(i) Series 2026 Bond Fund

(A) Series 2026 Construction Account

(1) Bond Proceeds Subaccount

(2) Equity Subaccount

(B) Series 2026 Costs of Issuance Account

(C) Series 2026 Capitalized Interest Account

(ii) Debt Service Fund

(A) Principal and Interest Account

(B) Redemption Account

(iii) Debt Service Reserve Fund

(A) 2026 DSR Account

(iv) Rebate Fund

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All of the Funds created hereunder shall be held by the Trustee, including with one or more depositories in trust for the Trustee. All moneys and investments deposited with the Trustee or any Paying Agent shall be held in trust and applied only in accordance with this Indenture and shall be trust funds for the purposes of this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee shall establish separate accounts or subaccounts (each, a "Subaccount") within each named Fund or Account for each component or phase of a Project if requested to do so by the Borrower. The Trustee shall transfer funds between such Subaccounts within each named Fund or Account if requested to do so by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On the date of issuance of the Series 2026 Bonds, the Trustee shall make the following deposits from the net proceeds (i.e. par amount, less underwriters' discount) of the Series 2026 Bonds in the amount of $147,314,919.99 and equity funds received from or on behalf of the Borrower in the amount of $10,000,000.00:

(i) $121,579,491.24 to the Series 2026 Construction Account of the Series 2026 Bond Fund and used to make contributions to one or more affiliates of the Borrower to be applied to pay or reimburse the costs of 2026 Project pursuant to the Loan Agreement and Section 5.5 of this Indenture;

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(ii) $25,975,000.00 to the Series 2026 Capitalized Interest Account of the Series 2026 Bond Fund);

(iii) $760,428.75 to the Series 2026 Costs of Issuance Account of the Series 2026 Bond Fund and used to pay costs of issuance as directed by the Borrower; and

(iv) $9,000,000.00 to the 2026 DSR Account of the Debt Service Reserve Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) On each Transfer Date (as defined in the SKY IV Guaranty), the Trustee shall apply funds received pursuant to Section 3.2 of the SKY IV Guaranty, as follows, to the extent of available funds: (i) *first*, to the Principal and Interest Account of the Debt Service Fund in an amount sufficient to pay all interest payments due on each Interest Payment Date that is within 18 months after such Transfer Date, but only to the extent sufficient funds are not otherwise available in the Series 2026 Capitalized Interest Account or the Principal and Interest Account to make such interest payments, (ii) *second*, to the Debt Service Reserve Fund in an amount sufficient to satisfy any deficiency in the Debt Service Reserve Fund Requirement, and (iii) *third* to the Rebate Fund, any amounts required to be deposited therein pursuant hereto.

Section 5.2 <u>Debt Service Fund</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall establish separate accounts within the Debt Service Fund to be designated "Principal and Interest Account" and "Redemption Account". The Trustee shall establish separate accounts within the Debt Service Fund in connection with the issuance of Additional Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee shall promptly deposit the following receipts in the Debt Service Fund:

(i) All amounts received by the Trustee pursuant to Section 3.1 of the Loan Agreement, which shall be credited to the Principal and Interest Account in the manner set forth in this Indenture and the Loan Agreement.

(ii) All amounts received by the Trustee pursuant to Section 3.2 of the SKY IV Guaranty, for deposit to the Debt Service Fund, for the payment of the principal and interest due on the Bonds, which shall be credited to the Principal and Interest Account.

(iii) Any other amounts required to be paid or transferred to the Debt Service Fund, for payment of principal and interest due on the Bonds, which shall be credited to the Principal and Interest Account.

(iv) Prepayments under the Loan Agreement received by the Trustee pursuant to Article VI thereof, which shall be credited to the Redemption Account.

(v) All other receipts, when and if required by the Borrower Financing Documents or any subsequent agreement or by this Indenture to be paid into the Debt Service Fund, which shall be credited to the Principal and Interest Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There shall be paid from the Principal and Interest Account to the Paying Agent, on each Interest Payment Date for the Bonds, the amounts required for the payment of the principal and interest due on the Bonds on such date (to the extent not paid from moneys in the Series 2026 Capitalized Interest Account pursuant to Section 5.6, or paid from moneys in any other capitalized interest account established pursuant to a Supplemental Indenture).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee shall call for redemption, in the manner provided in Article VI hereof, Bonds for which Sinking Fund Payments are applicable in a principal amount equal to the Sinking Fund Payment then due with respect to such Bonds. Such call for redemption shall be made even though at the time of publication of the notice of such redemption sufficient moneys therefor shall not have been deposited in the Debt Service Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Amounts in the Redemption Account may be applied by the Trustee, upon specific direction of the Borrower, to the purchase of Bonds at prices not exceeding the Redemption Price thereof applicable on the next redemption date plus accrued interest and all other amounts then due under the Borrower Financing Documents in connection with such redemption, provided no Event of Default has occurred and is continuing. Such redemption date shall be the earliest date upon which Bonds are subject to redemption from such amounts. Any amount in the Redemption Account not so applied to the purchase of Bonds by forty-five (45) days prior to the next date on which the Bonds are so redeemable shall be applied to the redemption of Bonds on such redemption date; provided that if such amount aggregates less than $5,000, it need not be then applied to such redemption. The Bonds to be redeemed shall be selected by the Trustee in the manner provided in Section 6.2 hereof. Amounts in the Redemption Account to be applied to the redemption of Bonds shall be paid to the Paying Agent on or before the redemption date and applied by it on such redemption date to the payment of the Redemption Price of the Bonds being redeemed plus interest on such Bonds accrued to the redemption date and all other amounts then due under the Borrower Financing Documents in connection with such redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Provided that no Event of Default has occurred and is continuing under the Loan Agreement, the Issuer shall receive a credit in respect of the Sinking Fund Payment for any Bonds which have been delivered by the Issuer or the Borrower to the Trustee for cancellation on or before the forty-fifth (45th) day next preceding any Sinking Fund Payment due date and for any Bonds which prior to such date have been purchased or redeemed (otherwise than through the application of the Sinking Fund Payments) and canceled by the Trustee and not theretofore applied as a credit against any Sinking Fund Payment; provided that such Bonds are of the same series, class and maturity as the Bonds for which a sinking fund payment is otherwise due. Each Bond so delivered shall be credited by the Trustee at 100% of the principal amount thereof on the obligation of the Issuer on such Sinking Fund Payment date for such Bonds and any excess over such amount shall be credited on future Sinking Fund Payments in ascending chronological order, and the principal amount of Bonds to be redeemed by application of Sinking Fund Payments shall be accordingly reduced.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower shall on or before the forty-fifth (45th) day next preceding each Sinking Fund Payment date furnish the Trustee with the certificate of an Authorized Representative if and to whatever extent the provisions of this Section are to be availed of with respect to such Sinking Fund Payment, stating, in the case of the credit provided for, that such credit has not theretofore been applied against any Sinking Fund Payment and confirming that immediately available cash funds for the balance of the next succeeding prescribed Sinking Fund Payment will be paid on or prior to the next succeeding Sinking Fund Payment date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Any amounts remaining in the Debt Service Fund after payment in full of all Outstanding Bonds, the fees, charges and expenses of the Issuer and any other payment due to the Issuer or the Issuer Indemnified Persons with respect to the Unassigned Rights, the Trustee and any Paying Agent and all other amounts required to be paid hereunder or under the Borrower Financing Documents shall be paid upon the expiration or sooner termination of the Term of the Loan Agreement to or upon the direction of the Borrower.

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Section 5.3 <u>Debt Service Reserve Fund</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At the time any Series of Bonds is issued, there shall be deposited into the applicable accounts in the Debt Service Reserve Fund amounts sufficient to cause the total amount on deposit in such accounts of the Debt Service Reserve Fund to be an amount not less than the Debt Service Reserve Fund Requirement with respect to the Bonds being issued. If, on any Interest Payment Date, the amounts in the applicable accounts of the Debt Service Reserve Fund are less (based on the valuation required pursuant to Section 5.5(c) hereof) than the Debt Service Reserve Fund Requirement, the Trustee shall request the Borrower to fulfill its obligations under Section 3.1(g) of the Loan Agreement and shall deposit upon receipt any moneys delivered pursuant thereto to the Debt Service Reserve Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Moneys on deposit in the applicable account of the Debt Service Reserve Fund shall be applied as follows (unless otherwise provided herein):

(i) On the date of each required payment in respect of any Series of Bonds, moneys in the applicable account of the Debt Service Reserve Fund shall be applied to cure any deficiency in the Debt Service Fund needed to pay principal or Redemption Price of or interest on all Outstanding Bonds. The Borrower agrees that any transfer from the Debt Service Reserve Fund to the Debt Service Fund pursuant to this paragraph shall not be construed as preventing, waiving or curing any nonpayment of any payments required under Section 3.1(c) of the Loan Agreement until the amount of such deficiency has been restored.

(ii) At the time of valuation pursuant to Section 5.5(c), any amount in the Debt Service Reserve Fund in excess of the Debt Service Reserve Fund Requirement not required to be transferred to the Rebate Fund shall be transferred to the Debt Service Fund for the payment of such principal and interest.

(iii) In each month during the twelve-month period preceding the final maturity date of any Series of Bonds, so long as no Event of Default has occurred and is continuing, moneys held in the Debt Service Reserve Fund shall be credited against the payment of principal of and interest on such Series of Bonds and shall be transferred to the Debt Service Fund for the payment of such principal and interest, provided that after such transfer the amount remaining in the Debt Service Reserve Fund satisfies the Debt Service Reserve Fund Requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Debt Service Reserve Fund Requirement shall be established by the Borrower upon the issuance of any Additional Bonds hereunder, and the Borrower shall promptly deliver to the Trustee a written certificate indicating such amount.

Section 5.4 <u>Rebate Fund</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Within 45 days of the Computation Date, the Borrower shall deposit to the Rebate Fund and direct the Trustee in writing to transfer from earnings held in any Fund or Account to the Rebate Fund amounts such that the amount held in the Rebate Fund after such deposit and transfer is equal to the Rebate Amount on the Funds and Accounts established hereunder calculated as of the last day of the computation period in accordance with the Code; provided, however, if the Borrower fail to make such deposit in accordance with the provisions of this Section, the Trustee shall, with the prior written consent and at the written direction of the Required Bondholders, withdraw from the Funds and deposit to the Rebate Fund an amount such that the amount held in the Rebate Fund after such deposit is equal to the Rebate Amount calculated as of the last day of the Computation Period; provided, however, that the Trustee may not transfer moneys in accordance with the above provision from the Debt Service Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within sixty (60) days after each Computation Date, the Borrower shall direct the Trustee in writing to withdraw from the Rebate Fund and pay to the United States the Rebate Payment required in connection with such Computation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All payments to the United States pursuant to this Section shall be (A) made by the Trustee for the account and in the name of the applicable Borrower, (B) paid by draft posted by registered United States Mail (return receipt requested), addressed to the Internal Revenue Service Center, Ogden, Utah 84201 and (C) accompanied by the relevant Internal Revenue Service Form 8038-T provided by the Borrower in accordance with the Tax Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower shall preserve copies of all records of transactions in the Rebate Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Trustee may conclusively rely on the instructions of the Issuer, the Borrower or the Rebate Analyst retained by the Borrower, if any, with regard to any actions to be taken by it pursuant to this Section and shall have no liability for any consequences of any failure of the Issuer, Borrower or Rebate Analyst to supply accurate or sufficient instructions. The Trustee shall not be responsible for the calculation of any Rebate Amount with respect to the Bonds. The Trustee shall not be responsible for calculating Rebate Amounts or for the adequacy or correctness of any rebate report. The Trustee shall be deemed conclusively to have complied with the provisions of this Indenture and any other agreement relating to the Bonds regarding calculation and payment of rebate if it follows the directions of the Issuer, Borrower or Rebate Analyst, and it shall have no independent duty to review or enforce the Issuer's, Borrower's or Rebate Analyst's compliance with such rebate requirements. The Trustee may rely conclusively upon and shall be fully protected from all liability in relying upon the Issuer's, the Borrower's or Rebate Analyst's opinions, calculations, determinations, directions, and certifications required by this Section. Except to the extent expressly herein provided, the Trustee shall in no instance be responsible or liable for the tax treatment of the Bonds, the Issuer's, the Borrower's or Rebate Analyst's compliance with the Code, or any other tax consequences in connection with the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If at any time during the term of this Indenture the Trustee or the Borrower desires to take any action that would otherwise be prohibited by the terms of this Section, the Trustee or the Borrower will be permitted to take such action only if it shall first obtain and provide to the other Persons named herein a Favorable Opinion of Bond Counsel to the effect that such action will not adversely affect the exclusion of interest on the affected Bonds from gross income of the holders thereof for federal income tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Any amounts remaining in the Rebate Fund following the payment of all Rebate Amounts for all Bonds following the Final Computation Date for the Bonds, shall be released to the Borrower in accordance with the instructions of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) There shall be credited to the Rebate Fund all amounts required to be credited thereto from interest earnings or net gain on disposition of investments pursuant to this Article V.

Section 5.5 <u>Series 2026 Construction Account</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall disburse moneys in the Series 2026 Construction Account as provided in Section 3.12 of the Loan Agreement. All funds remaining in the Bond Proceeds Subaccount of the Series 2026 Construction Account after the Final Completion Certificate is filed with the Trustee by the Borrower pursuant to Section 3.11 of the Loan Agreement and payment of all other costs then due and payable shall be transferred to the Principal and Interest Account of the Debt Service Fund. All funds remaining in the Equity Subaccount of the Series 2026 Construction Account after the Final Completion Certificate is filed with the Trustee by the Borrower pursuant to Section 3.11 of the Loan Agreement and payment of all other costs then due and payable may, at the direction of the Borrower, be applied to pay debt service on or redeem the Series 2026 Bonds, and otherwise shall remain on deposit therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payments from the Series 2026 Construction Account shall be made in accordance with this Section and Section 3.12 of the Loan Agreement. Upon receipt of the required certificates, the Trustee shall pay the amount requested to or upon the order of the Borrower. For purposes of complying with the requirements of this Section, the Trustee may conclusively rely and shall be protected in acting or refraining from acting upon the requisition signed by the authorized officer of the Borrower. The Trustee shall not be bound to make an investigation into the facts or matters stated in any requisition of the Borrower. The Trustee shall not be responsible for determining whether the funds on hand in the Series 2026 Construction Account are sufficient to complete the Project. The Trustee shall not be responsible to collect lien waivers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an Event of Default occurs under this Indenture, and the principal of all Bonds and the interest accrued thereon are declared due and payable, except as otherwise provided herein, no moneys may be paid out of the Series 2026 Construction Account by the Trustee at the direction of the Borrower during the continuance of such an Event of Default; provided, however, that if such an Event of Default shall be waived and such declaration shall be rescinded pursuant to the terms of this Indenture, the full amount of any such remaining moneys in the Series 2026 Construction Account may again be requisitioned by the Borrower and disbursed by the Trustee in accordance with the provisions of the Loan Agreement and this Indenture.

Section 5.6 <u>Series 2026 Capitalized Interest Account</u>. Moneys on deposit in the Series 2026 Capitalized Interest Account shall be used by the Trustee, prior to the application of any other funds, to pay interest due on the Series 2026 Bonds on each Interest Payment Date through and including January 1, 2029 (the "**Funded Interest Period**").

Notwithstanding the foregoing, upon the redemption or mandatory tender for purchase of any portion of the Series 2026 Bonds, any funds on deposit in the Series 2026 Capitalized Interest Account in excess of the amount necessary to pay interest during the Funded Interest Period on the Series 2026 Bonds remaining Outstanding following such redemption or mandatory tender shall be released from the Series 2026 Funded Interest Account and applied by the Trustee as directed by the Borrower, which direction shall be accompanied by a Favorable Opinion of Bond Counsel. After the Funded Interest Period any amounts remaining in the Series 2026 Capitalized Interest Account shall be released and applied by the Trustee as directed by the Borrower, which direction shall be accompanied by a Favorable Opinion of Bond Counsel.

Section 5.7 <u>Investment of Funds and Accounts; Valuation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Amounts in the Funds and Accounts shall, if and to the extent then permitted by law, be invested in Investment Securities. Investments authorized under this Section shall be made by the Trustee at the written request of the Borrower (such written direction to specify the specific investment in Investment Securities to be made), and may be made by the Trustee through its own investment department or that of its affiliates or subsidiaries, and may charge its ordinary and customary fees for such trades, including investment maintenance fees. The Trustee may conclusively rely upon such instructions as to both the suitability and legality of the directed investments. In the absence of investment instructions from the Borrower, the Trustee shall hold such funds uninvested as cash. Investments in the Debt Service Reserve Fund shall mature in five years or less or shall provide for liquidation at par when needed to make payments hereunder. The Trustee shall not be responsible or liable for any losses, fees, taxes or other charges incurred on investments, reinvestments or liquidations made pursuant to this Section 5.7.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The income or interest earned and gains realized in excess of losses suffered by any Fund or Account held hereunder shall be credited to the Debt Service Fund (except income or interest earned and gains realized in excess of losses suffered by the Series 2026 Construction Account or the Rebate Fund, which shall be credited to Series 2026 Construction Account or the Rebate Fund, respectively), provided that to the extent earnings on amounts on deposit in the Series 2026 Capitalized Interest Account, together with the amounts on deposit therein exceed the amount necessary to pay interest on the Series 2026 Bonds during the Funded Interest Period, such excess earnings shall be applied by the Trustee as directed by the Borrower, which direction shall be accompanied by a Favorable Opinion of Bond Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Funds and Accounts established hereunder shall be valued as of each Interest Payment Date on the basis of market value; *provided, however,* a Fund Letter of Credit, unless disaffirmed or terminated, as applicable, shall be valued at the face amount thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee is authorized, in making or disposing of any investment permitted by this Section, to deal with itself (in its individual capacity) or with any one or more of its affiliates, whether it or such affiliate is acting as an agent of the Trustee or for any third person or dealing as principal for its own account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Although the Issuer and the Borrower recognize that the regulations of the Comptroller of the Currency grant it the right to obtain a broker confirmation or written statement containing comparable information at no additional cost, the Issuer and Borrower specifically waive such notification to the extent permitted by law and will receive periodic cash transaction statements that will detail all investment transactions. No statement need be rendered for any fund or account if no activity occurred in such fund or account during such month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All amounts in the Funds and Accounts held by the Trustee at the end of any Business Day shall, to the extent required on the next Business Day to make a payment under this Indenture, be held in cash until the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Borrower shall direct the investment of the Funds and Accounts established hereunder only in accordance with the requirements of the Code including requirements as to yield restriction and rebate, if any.

Section 5.8 <u>Non-presentment of Bonds</u>. In the event any Bond shall not be presented for payment when the remaining principal thereof becomes due, either at final maturity, or at the date fixed for redemption thereof, or otherwise, and funds sufficient to pay any such Bond shall have been made available to the Trustee for the benefit of the holder or holders thereof, all liability of the Issuer to the holder thereof for the payment of such Bond shall forthwith cease, determine and be completely discharged, and thereupon it shall be the duty of the Trustee to pay such funds to the person or persons entitled thereto in the case of a fully registered Bond or, if the person is not known to the Trustee, hold such funds, without liability for interest thereon, for the benefit of the holder of such Bond, who shall thereafter be restricted exclusively to such funds, for any claim of whatever nature on his part under this Indenture or on, or with respect to, such Bond. Subject to applicable escheat laws, funds remaining with the Trustee as described above and unclaimed for two years shall be deposited in the Redemption Account of the Debt Service Fund or, in the event there are no longer any Bonds Outstanding, shall be paid to or upon the direction of the Borrower. Upon deposit or payment of such funds, to the Borrower, the Trustee shall certify the amount thereof and the identifying numbers of the particular Bonds whose holders have a claim against such funds (which holders shall also be identified, if known) and deliver such certificate to the Borrower. Thereafter, such holders shall have an unsecured claim against the Borrower with respect to the payment of such unpresented Bonds and shall have no further claim whatever against the Issuer or the Trustee.

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**ARTICLE VI.**<br> **<u>PROCEDURES FOR REDEMPTION OF BONDS</u>**

Section 6.1 <u>Privilege of Redemption and Redemption Price</u>. Bonds or portions thereof subject to redemption prior to maturity shall be redeemable, upon mailed notice as provided in this Article, at the times, at the Redemption Prices and upon such terms, in addition to and consistent with the terms contained in this Article, as shall be specified in Article III hereof or in any Supplemental Indenture authorizing the issuance of such Bonds, or in such Bonds.

Section 6.2 <u>Selection of Bonds to be Redeemed</u>. In connection with any partial redemption other than a sinking fund redemption, the Borrower shall specify the Series to be redeemed and the maturities to be redeemed, which selection shall be made in accordance with applicable federal tax requirements, and if no maturities are so specified, the Trustee shall make a pro rata redemption among the Series and within each Series, among the maturities of each Series (and the mandatory sinking fund amounts thereof shall also be reduced on a pro rata basis). So long as the Bonds are in book-entry form, when Bonds are called, allocation within each maturity shall be made by DTC or any successor securities depository and not by the Issuer or the Trustee. In the event the Bonds are not in book-entry form and there is a redemption of less than all the Outstanding Bonds of like Series, and maturity, the Trustee shall select by lot, using such method of selection as it shall deem proper in its discretion, the Bonds to be redeemed in Authorized Denominations, provided that the unredeemed portion of the Bonds remaining Outstanding shall be in Authorized Denomination. For purposes of this Section, Bonds or portions of Bonds which have theretofore been selected by lot for redemption shall not be deemed Outstanding.

Section 6.3 <u>Notice of Redemption</u>. When redemption is required or permitted by this Indenture, upon notification of the Trustee by the Borrower of such redemption not less than five (5) days (or such lesser period which is acceptable to the Trustee) prior to the date on which the Trustee must give notice to holders as provided in this Section or the Letter of Representation between the Issuer and DTC (if the book entry system is still in effect), the Trustee shall give notice, which notice may state that it is subject to the receipt of the redemption moneys by the Trustee on or before the date fixed for redemption and which notice shall be of no effect unless such moneys are so received on or before such date of such redemption in the name of the Issuer, specifying the subsection of Article III hereof and, if applicable, the Section of the Supplemental Indenture, under which the redemption is to be made, the Series, maturities, numbers, CUSIP numbers and amounts of the Bonds or portions thereof to be redeemed, the redemption date and the place or places where amounts due upon such redemption will be payable and the conditions, if any, that must be met as a prerequisite to such redemption. Such notice shall further state that on such date there shall become due and payable upon each Bond or portion thereof to be redeemed the Redemption Price thereof together with interest accrued to the redemption date and all other amounts then due under the Loan Agreement, and that from and after such date interest thereon shall cease to accrue and be payable. Notice of redemption shall be given by the Trustee in the name and on behalf of the Issuer by mailing a copy of each such notice to the registered owner of the Bond by first-class mail, postage prepaid, addressed to such registered owner at such registered owner's last known address as it appears upon the bond register, at least ten (10) but not more than sixty (60) days prior to the date fixed for redemption. Such notice shall be effective when mailed and any failure to receive such notice shall not affect the validity of the proceedings for redemption. In the event of a postal interruption, the Trustee shall give notice by other appropriate means selected by the Trustee in its discretion.

In the case of an optional redemption pursuant to Article III hereof, unless moneys sufficient to pay the Redemption Price of the Bonds called for redemption is received by the Trustee prior to the giving of such notice of redemption, such notice may state that said redemption shall be conditioned upon the receipt of such moneys by the Trustee on or prior to the date fixed for redemption. If such moneys are not received or if such condition is not satisfied, such notice shall be of no force and effect, the Issuer shall not redeem such Bonds, the Redemption Price shall not be due and payable and the Trustee shall give notice, in the same manner in which the notice of redemption was given, that such moneys were not so received and that such Bonds will not be redeemed.

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Section 6.4 <u>Payment of Redeemed Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notice having been given in the manner provided in Section 6.3 hereof, and the conditions stated in such notice as prerequisite for redemption having been met, the Bonds or portions thereof so called for redemption shall become due and payable on the redemption dates so designated at the Redemption Price, plus interest accrued to the redemption date and all other amounts then due under the Loan Agreement. If, on the redemption date, moneys for the redemption of all the Bonds or portions thereof to be redeemed, together with interest to the redemption date, and all other amounts then due under the Loan Agreement, shall be held by the Paying Agent so as to be available therefor on such date and if notice of redemption shall have been given as aforesaid, then, from and after the redemption date, interest on the Bonds or portions thereof so called for redemption shall cease to accrue and become payable. If such moneys shall not be so available on the redemption date, such Bonds or portions thereof shall continue to bear interest until paid at the same rate as they would have borne had they not been called for redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Payment of the Redemption Price together with interest shall be made to or upon the order of the registered owner, only upon presentation of the Bond for cancellation or notation as provided in Section 6.5 hereof.

Section 6.5 <u>Cancellation of Redeemed Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All Bonds redeemed in full under the provisions of this Article shall forthwith be canceled and disposed of by the Trustee in accordance with its then-customary practices and a certificate of disposal furnished to the Issuer upon its written request, and no Bonds shall be executed, authenticated, issued or delivered in exchange or substitution therefor or for or in respect of any paid portion of a fully registered Bond. In the event that a portion only of a Bond shall be so called for redemption, then, at the option of the registered owner hereof if such owner is a Securities Depository, such Bond may be either submitted to the Trustee for notation thereon of the payment of the portion of the principal hereof called for redemption or surrendered for redemption. If so surrendered, one or more new Bonds shall be issued for the unredeemed portion hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If there shall be called for redemption less than all of a Bond, the Issuer shall execute and the Trustee shall authenticate and deliver, upon the surrender of such Bond, without charge to the owner thereof, for the unredeemed balance of the principal amount of the Bond so surrendered, Bonds of like Series and maturity in any of the authorized denominations.

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Section 6.6 <u>Purchase In Lieu of Redemption</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Bonds called for redemption pursuant to this Article VI, or any provision of any Supplemental Indenture, may be purchased by the Borrower, or by any party designated in writing by the Borrower, on the date upon which such Bonds were to have been redeemed (the "Purchase in Lieu of Redemption Date"), at the Redemption Price thereof. The Borrower shall deliver a written direction to the Trustee of the party to purchase the Bonds pursuant to this Section, not later than the Business Day immediately preceding the Purchase in Lieu of Redemption Date. Bonds to be purchased pursuant to this Section which are not delivered to the Trustee on the Purchase in Lieu of Redemption Date shall be deemed to have been so purchased, and the purchaser of such Bonds shall be the Owner of the Bonds for all purposes under this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The purchase of Bonds pursuant to this Section shall not be deemed to constitute a redemption of such Bonds or an extinguishment of the debt evidenced thereby.

**ARTICLE VII.**<br> **<u>PARTICULAR COVENANTS</u>**

Section 7.1 <u>No Pecuniary Liability on Issuer or Officers</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No provision, covenant or agreement contained in this Indenture or in the Bonds or any obligations herein or therein imposed upon the Issuer or the breach thereof, shall constitute or give rise to a charge upon its general credit, or impose upon the Issuer a pecuniary liability except as set forth herein, which is only to the extent of the Trust Estate (as described in the granting clauses set forth at the beginning of this Indenture), and no bondholder or any other person shall have any right to make any claim against the Issuer under this Indenture or under any Bond beyond such limitation. In making the agreements, provisions and covenants set forth in this Indenture, the Issuer has not obligated itself except with respect to the Project and the application of the revenues derived in connection therewith as hereinabove provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All covenants, stipulations, promises, agreements and obligations of the Issuer contained herein shall be deemed to be covenants, stipulations, promises, agreements and obligations of the Issuer and not of Issuer Indemnified Person in such Person's individual capacity. No recourse shall be had for the payment of the principal or Redemption Price, if any, of or interest on the Bonds, for the performance of any obligation hereunder, or for any claim based thereon or hereunder against any such member, officer, agent or employee or against any natural person executing the Bonds. No such member, officer, agent, employee or natural person is or shall become personally liable for any such payment, performance or other claim, and in no event shall any monetary or deficiency judgment be sought or secured against any such member, officer, agent, employee or other natural person.

Section 7.2 <u>Payment of Principal; Redemption Price, or Purchase Price, if any, and Interest</u>. The Issuer covenants that it will promptly pay, but solely from the Trust Estate, the principal, Redemption Price or Purchase Price, if any, of and interest on every Bond issued under this Indenture, together with all other amounts due under the Loan Agreement, at the place, on the dates and in the manner provided herein and in the Bonds according to the true intent and meaning thereof.

Section 7.3 <u>Further Assurances</u>. The Issuer (subject to Section 13.7 hereof) and the Trustee each covenants that it will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, such indentures supplemental hereto and such further acts, instruments and transfers as the other may reasonably request for the better assuring, transferring, conveying, pledging, assigning and confirming unto the Trustee all and singular the property and rights assigned hereby and the amounts pledged hereby to the payment of the principal, Redemption Price or Purchase Price, if any, of and interest on the Bonds and all other amounts due under the Loan Agreement.

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Section 7.4 <u>Inspection of Project Books</u>. The Issuer covenants and agrees that all books and documents in its possession relating to the Project and the revenues derived from the Loan Agreement shall at all times be open to inspection by such accountants or other agencies as the Trustee may from time to time designate. The Issuer does not represent or covenant that it will maintain current or complete books or records with respect to the Project in its possession.

Section 7.5 <u>Rights under Financing Documents</u>. The General Financing Documents, originals or duly executed counterparts of which have been filed with the Trustee, set forth the covenants and obligations of the Issuer and the Borrower, including provisions that subsequent to the issuance of Bonds and prior to their payment in full or provision for payment thereof in accordance with the provisions hereof, the General Financing Documents may not be effectively amended, changed, modified, altered or terminated without the written consents provided for therein, and reference is hereby made to the same for a detailed statement of the covenants and obligations of the Borrower thereunder. It is agreed that the Trustee may and is hereby granted the right to enforce all rights of the Issuer other than the Unassigned Rights and all obligations of the Borrower under and pursuant to the General Financing Documents, and the security interests created thereby or securing the same. Nothing in this Section shall permit any reduction in the payments required to be made by the Borrower under or pursuant to the Loan Agreement or any alteration in the terms of payment thereof. All covenants and agreements on the part of the Issuer shall, except as otherwise specifically provided herein, be for the benefit of the holders from time to time of the Bonds and may be enforced in the manner provided by Article VIII hereof on behalf of such holders by the Trustee.

Section 7.7 <u>Recording and Filing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer (subject to Section 13.7 hereof) covenants that it will cooperate with the Borrower and the Trustee to the extent necessary to allow the Borrower to cause the General Financing Documents, this Indenture and all supplements thereto and hereto, as well as such other security agreements, financing statements, and other instruments as may be required from time to time to be kept, and to be recorded and filed in such manner and in such places as may be required by law in order to fully preserve and protect the security of the holders and owners of the Bonds and the rights of the Trustee hereunder. The Issuer is under no obligation to record or file any such documents itself. Notwithstanding anything to the contrary contained herein, the Trustee shall not be responsible for any initial filings of any financing statements or the information contained therein (including the exhibits thereto), the perfection of any such security interests, or the accuracy or sufficiency of any description of collateral in such initial filings or for filing any modifications or amendments to the initial filings required by any amendments to Article 9 of the Uniform Commercial Code. The Trustee shall cause to be filed a continuation statement with respect to each Uniform Commercial Code financing statement relating to the Bonds which was filed at the time of the issuance thereof, in such manner and in such places as the initial filings were made, provided that a copy of the filed original financing statement is timely delivered to the Trustee. Unless the Trustee shall have been notified in writing by the Issuer or the Borrower that the initial filing or description of collateral was or has become defective, the Trustee shall be fully protected in (i) relying on such initial filing and descriptions in filing any financing or continuation statements or modifications thereto pursuant to this Section 7.7 and (ii) filing any continuation statements in the same filing offices as the initial filings were made. The Borrower shall be responsible for the reasonable costs, fees and expenses incurred by the Trustee in the preparation and filing of all continuation statements hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pursuant to the Act, a pledge made by the Issuer in respect to Bonds is valid and binding from the time it is made, the money or property so pledged and thereafter received by the Issuer shall immediately be subject to the lien of the pledge without physical delivery or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Issuer irrespective of whether the parties have notice. This Indenture is not required to be recorded or filed under the provisions of the Uniform Commercial Code to be valid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Issuer hereby irrevocably authorizes the Borrower at any time and from time to time to file in any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the collateral (i) as all assets of the Issuer pledged under this Indenture or words of similar effect, regardless of whether any particular asset comprised in the collateral falls within the scope of Article 9 of the Uniform Commercial Code of the State of Wisconsin, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by Article 9 of the Uniform Commercial Code of the state of the Issuer's location for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether the Issuer is an organization, the type of organization and any organization identification number issued to the Issuer, and (ii) in the case of a financing statement filed as a fixture filing or indicating collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the collateral relates. The Issuer agrees to furnish any such information to the Borrower promptly upon request. The Issuer (subject to Section 13.7 hereof) also ratifies its authorization for the Trustee to have filed in any Uniform Commercial Code jurisdiction any continuation statements or financing statement amendments thereto if filed prior to the date hereof.

**ARTICLE VIII.**<br> **<u>EVENTS OF DEFAULT; REMEDIES OF BONDHOLDERS</u>**

Section 8.1 <u>Events of Default; Acceleration of Due Dates</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the following events is hereby defined as and shall constitute an "Event of Default":

(i) payment of any installment of principal, Redemption Price or Purchase Price, or interest on, any Bond is not made when due; or

(ii) if the Borrower or the Issuer shall fail to observe or perform any covenant or agreement contained in this Indenture, which failure would have a Material Adverse Effect, and such failure continues for a period of thirty (30) days after written notice of such failure, requiring the same to be remedied, has been given by the Trustee to the Borrower and the Issuer, the giving of which notice shall be at the discretion of the Trustee unless the Trustee is requested in writing to do so by the holders of at least 25% in aggregate principal amount of all Bonds, in which event such notice shall be given; provided, however, that if such observance or performance requires work to be done, actions to be taken, or conditions to be remedied, which by their nature cannot reasonably be done, taken or remedied within such 30-day period but can be done, taken or remedied within a reasonable period of time, no Event of Default shall be deemed to have occurred or to exist if, and so long as, the Borrower or the Issuer, as the case may be, shall commence such work, action or other remedy within such 30-day period and shall diligently and continuously prosecute the same to completion; or

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(iii) any Event of Default as specified in the Loan Agreement shall occur and is continuing and has not been waived; or

(iv) the occurrence of an Act of Bankruptcy with respect to the Issuer; or

(v) a Change in Control shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to the provisions of Section (c) below, upon the occurrence of an Event of Default then and in every such case, the Trustee shall (A) at the written request of the holders of 25% in aggregate principal amount Outstanding of the Bonds or (B) in the case of an Event of Default under subsection (a)(i) above, without any such request, declare the principal of all the Bonds and the interest accrued thereon to be immediately due and payable and provide notice of the same to the Borrower and the Issuer and upon any such declaration, all principal of and interest on the Bonds become immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any declaration pursuant to subsection (b) above shall be subject to the condition that if, at any time after the principal of all Bonds shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided: (i) the Borrower shall deposit or cause to be deposited with the Trustee a sum sufficient to pay (A) all matured installments of interest upon all Bonds and the principal and premium, if any, of all such Bonds that shall have become due otherwise than by acceleration (with interest on overdue installments of interest, to the extent permitted by law and on such principal and premium, if any, at the respective rates borne by such Bonds to the date of such deposit) and any other amounts required to be paid pursuant to such Bonds, and (B) the costs, expenses and fees of the Trustee (including those of its counsel); and (ii) any and all Events of Default under this Indenture, other than the nonpayment of principal of and accrued interest on Outstanding Bonds that shall have become due by acceleration shall have been remedied, then and in every such case, the Trustee shall, if requested by the Required Bondholders, waive all Events of Default and rescind and annul such declaration and its consequences, but no such waiver or rescission and annulment shall extend to or affect any subsequent Event of Default.

Section 8.2 <u>Enforcement of Remedies</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon the happening and continuance of any Event of Default, then and in every case, but subject to the provisions of Section 9.2 hereof, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to, and shall, upon written direction of the Required Bondholders, proceed to protect and enforce its rights and the rights of the Bondholders under the Bonds, the General Financing Documents, including, without limitation, this Indenture, and under any agreement executed in connection with the foregoing, forthwith by such suits, actions or special proceedings in equity or at law, or by proceedings in the office of any board or officer having jurisdiction, whether for the specific performance of any covenant or agreement contained in this Indenture or the General Financing Documents or in aid of the execution of any power granted therein or for the enforcement of any legal or equitable rights or remedies as the written directions of the Required Bondholders shall require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) When the Trustee incurs costs, fees or expenses or renders services after the occurrence of an Act of Bankruptcy with respect to the Issuer or the Borrower, the costs, fees and expenses and the compensation for the services are intended to constitute expenses of administration under any federal or state bankruptcy, insolvency, arrangement, moratorium, reorganization or other debtor relief law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the enforcement of any right or remedy under this Indenture, the Trustee shall be entitled to sue for, enforce payment on and receive any or all amounts then or during any default becoming, and any time remaining, due hereunder for principal, Redemption Price, interest or otherwise under any of the provisions of the General Financing Documents, this Indenture or of the Bonds, and unpaid, with interest on overdue payments at the applicable rate or rates of interest specified in the Bonds or any Supplemental Indentures, together with any and all costs, fees and expenses of collection and of all proceedings under the General Financing Documents, this Indenture, and the Bonds, without prejudice to any other right or remedy of the Trustee or of the Bondholders, and to recover and enforce judgment or decree against the appropriate party or parties, but solely as provided in the General Financing Documents, this Indenture, and the Bonds, for any portion of such amounts remaining unpaid, with interest, costs, fees and expenses, and to collect in any manner provided by law, the moneys adjudged or decreed to be payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Regardless of the happening of an Event of Default, the Trustee, if requested in writing by the Required Bondholders and furnished with reasonable security and indemnity satisfactory to it, shall institute and maintain such suits and proceedings as it may be advised shall be necessary or expedient to prevent any impairment of the security under this Indenture by any acts which may be unlawful or in violation of the Indenture or of any resolution authorizing the Bonds, and such suits and proceedings as the Trustee may be advised shall be necessary or expedient to preserve or protect its interests and the interests of the Bondholders; but no such request shall be otherwise than in accordance with the provisions of law and of the Indenture.

Section 8.3 <u>Application of Revenues and Other Moneys After Default</u>. All moneys received by the Trustee pursuant to any right given or action taken under the provisions of this Article, together with all moneys held by the Trustee (other than in the Rebate Fund) after payment in the following order of priority of (i) the cost, fees and expenses of the proceedings resulting in the collection of such moneys and of the fees, expenses, liabilities and advances incurred or made by the Trustee and any Paying Agent, including reasonable attorneys' fees and expenses and (ii) the fees, costs and expenses of the Issuer and the Issuer Indemnified Persons and any other payments due them in respect of the Unassigned Rights (including, without limitation, indemnification payments); provided, that payment of amounts due to the Issuer or the Issuer Indemnified Persons under this Section shall not absolve the Borrower from liability therefor except to the extent of the amounts received from the Trustee, shall be deposited in the Principal and Interest Account of the Debt Service Fund and all moneys so deposited in such Fund and available for payment of the Bonds shall be applied as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the payment of costs, fees and expenses of collection, including reasonable fees and expenses of counsel and reasonable compensation to the Trustee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) whether or not the principal of all Outstanding Bonds shall have become or have been declared due and payable:

FIRST: To the payment to the Holders entitled thereto of all installments of interest then due on any Bonds in the order of the maturity of such installments and, if the amount available shall not be sufficient to pay in full any installment or installments maturing on the same date, then to the payment thereof ratably, according to such amounts due on such date, without any discrimination or preference;

SECOND: To the payment to the Holders entitled thereto of the unpaid principal installments which shall have become due, whether at maturity or by call for redemption, on any Bonds in order of their due dates and, if the amounts available shall not be sufficient to pay in full all principal installments due on the same date, then to the payment thereof ratably, according to the amounts of such principal installments due on such date, without any discrimination or preference; and

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THIRD: To the payment to the Holders entitled thereto of any additional amounts due and unpaid in respect of Bonds, in the order of the due dates of such amounts, and if the moneys available therefor shall not be sufficient to pay in full any such additional amounts due on the same date, then to the payment thereof ratably, according to the amounts due thereon, without any discrimination or preference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Whenever moneys are to be applied pursuant to the provisions of this Section, such moneys shall be applied at such times, and from time to time, as the Trustee shall determine, having due regard to the amount of such moneys available for application and the likelihood of additional moneys becoming available for such application in the future. Whenever the Trustee shall apply such funds, it shall fix the date upon which such application shall be made. The Trustee shall give such notice as it may deem appropriate of the deposit with it of any such moneys and of the fixing of any such date, and shall not be required to make payment to the owner of any Bonds until such Bonds shall be presented to the Trustee for appropriate endorsement or for cancellation if fully paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Whenever all Bonds and interest thereon and all other amounts due under the Loan Agreement, and Tax Certificate have been paid under the provisions of this Section and all fees, expenses and charges of the Trustee and Paying Agent and their respective counsel have been paid, any balance remaining in the Debt Service Fund shall be paid to or upon the direction of the Borrower.

Section 8.4 <u>Actions by Trustee</u>. All rights of action under this Indenture or under any of the Bonds may be enforced by the Trustee without the possession of any of the Bonds or the production thereof in any trial or other proceedings relating thereto and any such suit or proceedings instituted by the Trustee shall be brought in its name as Trustee without the necessity of joining as plaintiffs or defendants any holders of the Bonds, and any recovery of judgment, subject to the provisions of Section 8.3 hereof, shall be for the benefit of the holders of the Outstanding Bonds subject to the priorities and preferences provided for herein.

Section 8.5 <u>Required Bondholders Control Proceedings</u>. The Required Bondholders shall have the right, at any time, by an instrument or instruments in writing executed and delivered to the Trustee, to direct the method and place of conducting all proceedings to be taken in connection with the enforcement of the terms and conditions of the Indenture, or for any other proceedings hereunder; but such direction shall not be otherwise than in accordance with the provisions of law and of the Indenture.

Section 8.6 <u>Individual Bondholder Action Restricted</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nothing herein or in the Bonds contained shall affect or impair the right of any Owner of the Bonds to enforce payment of the principal, Redemption Price or Purchase Price, if any, of and interest on any Bond or other amounts due under the Loan Agreement at and after the maturity thereof, or the obligation of the Borrower to pay the principal, Redemption Price or Purchase Price, if applicable, of and interest on each of the Bonds or other amounts due under the Loan Agreement to the respective owners thereof at the time, place, from the source and in the manner herein and in such Bonds expressed.

Section 8.7 <u>Effect of Discontinuance of Proceedings</u>. In case any proceeding taken by the Trustee on account of any event of default shall have been dismissed, discontinued or abandoned for any reason, or shall have been determined adversely, then and in every such case the Issuer, the Trustee, and the owners of the Bonds shall be restored, respectively, to their former positions and rights hereunder, and all rights, remedies, powers and duties of the Trustee shall continue as though no such proceedings had been taken.

Section 8.8 <u>Remedies Not Exclusive</u>. No remedy by the terms of this Indenture enforced upon or reserved to the Trustee or to the owners of the Bonds is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity or by statute.

Section 8.9 <u>Delay or Omission Upon Default</u>. No delay or omission of the Trustee or of the owners of any Bond to exercise any right or power arising upon any event of default shall impair any right or power or shall be construed to be a waiver of any such default or any acquiescence therein; and every power and remedy given by this Article to the Trustee and the Owner of any Bond, respectively, may be exercised from time to time and as often as may be deemed expedient by the Trustee or by the owner of the Bonds.

Section 8.10 <u>Notice of Default</u>. The Trustee shall promptly mail to the Borrower, the Issuer and each owner of the Bonds written notice of the occurrence of any Event of Default of which it is required to take notice pursuant to Section 9.3(h) and of which it has actual knowledge hereof, including without limitation notice of failure to pay the principal or interest on the Bonds. Actual knowledge means the actual knowledge of a Responsible Officer in the Trustee's corporate trust administration department. The Trustee shall not, however, be subject to any liability to any owner of the Bonds by reason of its failure to mail any notice required by this Section.

**ARTICLE IX.**<br> **<u>TRUSTEE AND PAYING AGENT</u>**

Section 9.1 <u>Appointment and Acceptance of Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) UMB Bank, N.A. is hereby appointed as Trustee. The Trustee shall signify its acceptances of the duties and obligations of the Trustee by executing this Indenture. All provisions of this Article shall be construed as extending to and including all the rights, duties, powers, privileges, protections, benefits, immunities, standard of care and obligations imposed upon the Trustee under the Loan Agreement and the other General Financing Documents as fully for all intents and purposes as if this Article were contained in the Loan Agreement and the other General Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee is hereby appointed as Paying Agent for the Bonds. The Issuer may also from time to time appoint one or more other Paying Agents in the manner and subject to the conditions set forth in Section 9.10 hereof for the appointment of a successor Paying Agent. Each Paying Agent shall signify its acceptance of the duties and obligations imposed upon it by this Indenture by executing and delivering to the Issuer and to the Trustee a written acceptance thereof. The corporate trust operations offices of the Paying Agent are designated as the respective offices or agencies of the Issuer for the payment of the principal or Redemption Price of and the interest on the Bonds.

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Section 9.2 <u>Indemnity</u>. Except with respect to the Trustee's mandatory duties with respect to acceleration of the Bonds pursuant to Section 8.1 hereof and paying or causing to be paid in accordance with this Indenture, the principal, Redemption Price, if any, and interest, on the Bonds from moneys delivered to the Trustee for payment thereof, the Trustee shall be under no obligation to take any action, institute any suit, or to take any remedial proceeding under this Indenture, or to enter any appearance in or in any way defend any suit in which it may be made defendant, or to take any steps in the execution of the trusts hereby created or in the enforcement of any rights and powers hereunder, until it shall be indemnified and provided with adequate security to its satisfaction against any and all reasonable costs and expenses, outlays, and counsel fees and expenses and other disbursements, and against all liability not due to its willful misconduct or gross negligence. Such indemnification shall not be provided by the Issuer.

The Trustee shall be indemnified for and held harmless by the Borrower as provided in Section 7.11 of the Loan Agreement. No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers.

Section 9.3 <u>Rights and Responsibilities of Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall have no responsibility in respect of the validity or sufficiency of this Indenture or the security provided hereunder or the due execution hereof by the Issuer, or in respect of the title or the value of the Project, or in respect of the validity of any Bonds authenticated and delivered by the Trustee in accordance with this Indenture or to see to the recording or filing of the Indenture or any financing statement (except the filing of continuation statements as provided in Section 7.8 hereof) or any other document or instrument whatsoever. The recitals, statements and representations contained herein and in the Bonds shall be taken and construed as made by and on the part of the Issuer and not by the Trustee; provided that to the extent such recitals, statements and representations pertain to the 2026 Project or the Borrower, the Issuer is relying, without independent investigation or inquiry on information provided by, and representations of, the Borrower, and it does not assume any responsibility for the correctness of the same; except that the Trustee shall be responsible for its representation contained in its certificate on the Bonds. The obligation hereunder to pay or reimburse the Trustee for costs, fees, expenses, advances, reimbursements and to indemnify and hold harmless the Trustee pursuant to Section 9.2 shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of all obligations under this Indenture and the resignation or removal of the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee shall not be liable or responsible because of the failure of the Issuer or Borrower to perform any act required of it by the Indenture or any other General Financing Document or because of the loss of any moneys arising through the insolvency or the act or default or omission of any depository other than itself in which such moneys shall have been deposited. The Trustee shall not be responsible for the application of any of the proceeds of the Bonds or any other moneys deposited with it and paid out, invested, withdrawn or transferred in accordance herewith or for any loss, fee, tax or other charge resulting from any such investment, reinvestment or liquidation. The Trustee shall not be liable in connection with the performance of its duties hereunder except for its own willful misconduct or gross negligence. The rights, powers, privileges, protections, benefits, indemnities, immunities and exemptions from liability of the Trustee shall extend to and be enforceable by its directors, officers, employees, attorneys, custodians, persons employed hereunder and agents in each of the Trustee's capacities hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee, prior to the occurrence of an Event of Default (as defined in Section 8.1 hereof) of which the Trustee has actual knowledge (as defined in Section 8.10 hereof), and subsequent to an Event of Default that has been cured, undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied duties, covenants or obligations shall be read into this Indenture against the Trustee. In case an Event of Default has occurred of which the Trustee has actual knowledge (as defined in Section 8.10 hereof) and which has not been cured, the Trustee, subject to Section 9.2 hereof, shall exercise such of the rights and powers vested in it hereby and use the same degree of care and skill in their exercise as a prudent person would exercise under the circumstances in the conduct of his own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee shall have the right to consult with counsel of its selection and may act upon the opinion or advice of such counsel and the advice of such counsel or any opinion of counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. The Trustee shall in all instances shall act in good faith in incurring costs, expenses and legal fees in connection with the transactions contemplated by this Indenture and the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Trustee shall not be liable or responsible for the failure of the Borrower to effect or maintain insurance on the Project as provided in the Borrower Financing Documents nor shall it be responsible for any loss by reason of want or insufficiency in insurance or by reason of the failure of any insurer in which the insurance is carried to pay the full amount of any loss against which it may have insured the Issuer, the Borrower, the Trustee or any other person. The Trustee shall not be liable or responsible for the failure of the Borrower to comply with any provision of the Loan Agreement or any other General Financing Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Trustee may execute any of the trusts or powers hereof and perform any of its duties by or through attorneys, agents, receivers, or employees and shall not be answerable for the acts, omissions, misconduct or negligence of the same if appointed with due care hereunder, and shall be entitled to advice of counsel concerning all matters of trusts hereof and duties hereunder, and may in all cases pay such reasonable compensation to any attorney, agent, receiver or employee retained or employed by it in connection herewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty and the Trustee shall not be answerable for other than its gross negligence or willful misconduct. The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Trustee shall not be required to take notice or be deemed to have notice of any default hereunder (provided that the Trustee shall be deemed to have knowledge of any default in payments due on the Bonds) unless a Responsible Officer of the Trustee shall be specifically notified in writing of such default by the Issuer, the Borrower or by the owners of at least 25% in aggregate principal amount of all Bonds then outstanding, and all notices or other instruments required by this Indenture to be delivered to the Trustee must, in order to be effective, be delivered at the designated corporate trust office of the Trustee, and in the absence of such notice so delivered the Trustee may conclusively assume there is no default except as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuer or Borrower, personally or by agent or attorney at the sole cost of the Borrower and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Trustee shall not be responsible or liable for any failure or delay in the performance of its obligations under this Indenture arising out of. or caused, directly or indirectly, by forces beyond its control, including without limitation acts of God, earthquakes, fire, flood, hurricanes or other storms, wars, terrorism or similar military or quasi-military disturbances, sabotage, epidemic, pandemic, strikes, work stoppages, recognized public emergencies, quarantine restrictions, strikes, work stoppages, nuclear or natural catastrophes, riots, interruptions, loss or malfunction of utilities or communications or computer (hardware and software) services, accidents, labor disputes, or acts of civil disobedience, acts of civil or military authority or governmental action, and hacking, cyber-attacks, or other use or infiltration of the Trustee's technological infrastructure exceeding authorized access it being understood that the Trustee shall use commercially reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as reasonably practicable under any such circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of gross negligence or willful misconduct on its part, as determined by a court of competent jurisdiction in a final non-appealable order, conclusively rely upon an officer's certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the holders pursuant to this Indenture, unless such holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) In no event shall the Trustee be responsible or liable for special, indirect, punitive, incidental or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Trustee shall have no obligation to act, suffer, or refrain from acting in accordance with the direction of any person or pursuant to this Indenture or the other General Financing Documents if it believes that such compliance would involve it in violation of any federal or state law, rule, regulation, order or other directive or any policy, including the implementation, interpretation or enforcement thereof, of any federal or state governmental entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Delivery of any reports, information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer's or Borrower's compliance with any of its covenants hereunder. The Trustee shall have no duty to review or make independent investigation with respect to any of the foregoing received by the Trustee, and shall hold the same solely as repository.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed in writing with the Issuer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform, on their face, to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it in good faith in accordance with the direction of the holders of a majority in principal amount of the Outstanding Bonds relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture.

Section 9.4 <u>Compensation</u>. The Trustee and Paying Agent shall be entitled to receive and collect from the Borrower as provided in the General Financing Documents payment for compensation agreed to in writing from time to time for services rendered hereunder and all advances, counsel fees and expenses and other costs, fees and expenses reasonably made or incurred by the Trustee or Paying Agent in connection therewith. The Trustee and the Paying Agent shall have a first lien upon any funds or other property held hereunder by the Trustee. The Trustee shall transfer all Additional Payments owed to or for the benefit of the Issuer that may come into the Trustee's possession promptly upon receipt thereof from the Borrower at the address specified herein for notice to the Issuer or as otherwise directed by the Issuer; except that payments constituting the Issuer's Annual Fee shall be remitted directly to the Issuer in accordance with Section 3.3 of the Loan Agreement. To secure the payment or reimbursement to the Trustee provided for in this Section, the Trustee shall have a first lien, to which the Bonds are made subordinate, on all money or property held or collected by the Trustee, except that held in the Rebate Fund or otherwise held in trust to pay principal of and interest on particular Bonds.

Section 9.5 <u>Evidence on Which Trustee May Act</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case at any time it shall be necessary or desirable for the Trustee to make any investigation concerning any fact preparatory to taking or not taking any action, or doing or not doing anything, as such Trustee, and in any case in which this Indenture, the General Financing Documents provides for permitting or taking any action, it may rely conclusively, without independent investigation upon any certificate required or permitted to be filed with it under the provisions hereof, of the General Financing Documents, and any such certificate shall be evidence of such fact and protect it in any action that it may or may not take, or in respect of anything it may or may not do, in good faith, by reason of the supposed existence of such fact.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may conclusively rely and shall be protected and shall incur no liability in acting or proceeding, or in not acting or not proceeding, reasonably and in accordance with the terms of this Indenture, the General Financing Documents, upon any resolution, order, notice, request, consent, waiver, certificate, statement, affidavit, requisition, Bond or other paper or document which it shall in good faith reasonably believe to be genuine and to have been adopted or signed by the proper board or person, or to have been prepared and furnished pursuant to any of the provisions of this Indenture, the General Financing Documents, or upon the written opinion of any attorney of its selection (who may be an attorney for the Issuer or the Borrower), engineer, appraiser, or accountant reasonably believed by the Trustee to be qualified in relation to the subject matter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee shall have the right to accept and act upon instructions, including directions or funds transfer instructions ("Instructions") given pursuant to this Indenture and delivered using Electronic Means; provided, however, that the Issuer and Borrower shall provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions ("Authorized Officers"), which incumbency certificate shall be amended by the Issuer or Borrower whenever a person is to be added or deleted from the listing. If the Issuer or Borrower elects to give the Trustee Instructions using Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee's understanding of such Instructions shall be deemed controlling. The Issuer and Borrower each understands and agrees that the Trustee cannot determine the identity of the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The Issuer and Borrower shall each be responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that the Issuer and Borrower and their respective Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable user and authorization codes, passwords and/or authentication keys upon receipt by the Issuer. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee's reliance upon and compliance with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The Issuer and Borrower each agrees: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties; (ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee and that there may be more secure methods of transmitting Instructions than the method(s) selected by the Issuer; (iii) that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning of any compromise or unauthorized use of the security procedures.

Section 9.6 <u>Evidence of Signatures of Owners of the Bonds and Ownership of Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any request, consent, revocation of consent or other instrument which this Indenture may require or permit to be signed and executed by the owners of the Bonds may be in one or more instruments of similar tenor, and shall be signed or executed by such owners of the Bonds in person or by their attorneys appointed in writing. Proof of (i) the execution of any such instrument, or of any instrument appointing any such attorney, or (ii) the holding by any person of the Bonds shall be sufficient for any purpose of this Indenture (except as otherwise herein expressly provided) if made in the following manner:

(i) The fact and date of the execution by any owner of the Bonds or his attorney of such instruments may be proved by a guarantee of the signature thereon by an officer of a bank or trust company or other member of a medallion signature guarantee program or by the certificate of any notary public or other officer authorized to take acknowledgments of deeds, that the person signing such request or other instrument acknowledged to him the execution thereof or by an affidavit of a witness of such execution, duly sworn to before such notary public or other officer. Where such execution is by an officer of a corporation or a member of an association, a limited liability company or a partnership, on behalf of such corporation, association, limited liability company or partnership, such signature guarantee, certificate or affidavit shall be accompanied by sufficient proof of his authority.

(ii) The ownership of registered Bonds and the amount, numbers and other identification, and date of owning the same shall be proved by the registry books.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Except as otherwise provided in Section 10.3 hereof with respect to revocation of a consent, any request or consent by the owner of any Bond shall bind all future owners of such Bond and the holder of every Bond issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Issuer or the Trustee or any Paying Agent in accordance therewith.

Section 9.7 <u>Trustee and Paying Agent Deal in Bonds and With Obligated Group</u>. Any national banking association, bank or trust company acting as a Trustee or Paying Agent, in its individual or any other capacity, and its directors, officers, employees or agents, may in good faith buy, sell, own, hold and deal in any of the Bonds and may join in any action which any owner of the Bonds may be entitled to take and may otherwise deal with the Borrower or Issuer with like effect as if such association, bank or trust company were not such Trustee or Paying Agent. The Trustee or any Paying Agent, in its individual capacity, either as principal or agent, may also engage in or be interested in any financial or other transaction with the Issuer or the Borrower, and may act as depository, trustee or agent for any committee or body of Bondholder secured hereby or other obligations of the Issuer as freely as if it did not act in any capacity hereunder.

Section 9.8 <u>Resignation or Removal of Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee may resign and thereby become discharged from the trusts created under this Indenture by notice in writing to be given to the Issuer and the Borrower and by notice mailed, postage prepaid to the owners of the Bonds not less than sixty (60) days before such resignation is to take effect, but such resignation shall not take effect until the appointment of a successor Trustee pursuant to Section 9.9 hereof and such successor Trustee shall accept such trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may be removed at any time thirty (30) days after an instrument or concurrent instruments in writing requesting such removal is filed with the Trustee by the Required Bondholders or their attorneys-in-fact duly authorized, but such removal shall not take effect until the appointment of a successor Trustee pursuant to Section 9.9 hereof and such successor Trustee shall accept such trust. The Trustee shall promptly give notice of such filing to the Issuer.

Section 9.9 <u>Successor Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time the Trustee shall resign, or shall be removed, be dissolved or otherwise become incapable of acting or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator thereof, or of its property, shall be appointed, or if any public officer shall take charge or control of the Trustee or of its property or affairs, the position of Trustee shall thereupon become vacant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within sixty (60) days after such vacancy shall have occurred, the Required Bondholders, by an instrument or concurrent instruments in writing, signed by such owners of the Bonds or their attorneys-in-fact thereunto duly authorized and filed with the Issuer, shall appoint a successor Trustee, which shall immediately and without further act, supersede any Trustee theretofore appointed. If no appointment of a successor Trustee shall be made pursuant to the foregoing provisions of this Section, the owner of any Bond then Outstanding or any retiring Trustee (at the expense of the Borrower) may apply to any court of competent jurisdiction to appoint a successor Trustee. Such court may thereupon, after such notice, if any, as such court may deem proper and prescribe, appoint a successor Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Trustee appointed under this Section shall be a national banking association or a bank or trust company duly organized under the laws of the State of New York or under the laws of any state of the United States, or under the laws of the United States, and authorized to exercise corporate trust powers in the State of Wisconsin. At the time of its appointment, any successor Trustee shall have a capital stock and surplus aggregating not less than $50,000,000.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Every successor Trustee shall execute, acknowledge and deliver to its predecessor, and also to the Issuer and the Borrower, an instrument in writing accepting such appointment, and thereupon such successor Trustee, without any further act, deed, or conveyance, shall become fully vested with all moneys, estates, properties, rights, immunities, powers and trusts, and subject to all the duties and obligations of its predecessor, with like effect as if originally named as such Trustee; but such predecessor shall, nevertheless, on the written request of its successor or of the Issuer, and upon payment of the compensation, expenses, charges and other disbursements of such predecessor which are due and payable pursuant to Section 9.4 hereof, execute and deliver an instrument transferring to such successor Trustee all the estate, properties, rights, immunities, powers and trusts of such predecessor, except any indemnification rights. Every predecessor Trustee shall also deliver all property and moneys held by it under the Indenture to its successor. Should any instrument in writing from the Issuer be required by any successor Trustee for more fully and certainly vesting in such Trustee, the estate, properties, rights, immunities, powers and trusts vested or intended to be vested in the predecessor Trustee any such instrument in writing shall, on request, be executed, acknowledged and delivered by the Issuer (subject to Section 13.7 hereof). Any successor Trustee shall promptly notify the Paying Agent of its appointment as Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Person into which the Trustee may be merged or converted or with which it may be consolidated or any Person resulting from any merger, conversion or consolidation to which it shall be a party or any Person to which the Trustee may sell or transfer all or substantially all of its corporate trust business and assets as a whole or substantially as a whole, provided such company shall be a national banking association or a bank or trust company duly organized under the laws of any state of the United States, shall have a capital stock and surplus aggregating not less than $50,000,000 and shall be authorized by law to perform all the duties imposed upon it by the Indenture, shall be and become the successor to such Trustee, both in its capacity as Trustee and its capacity as Paying Agent if the Trustee is serving as Paying Agent, and succeed to the rights, powers, duties, immunities and privileges as its predecessor without the execution or filing of any paper or the performance of any further act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any Trustee which becomes incapable of acting as Trustee shall pay over, assign and deliver to its successor any moneys, funds or investments held by it in the manner provided in Section 9.9(d) and shall render an accounting to the Issuer.

Section 9.10 <u>Resignation or Removal of Paying Agent; Successors</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event of the resignation or removal of any Paying Agent, such Paying Agent shall pay over, assign, transfer and deliver any moneys held by it as Paying Agent to its successor, or if there be no successor, to the Trustee. In the event that for any reason there shall be a vacancy in the office of any Paying Agent, the Trustee shall act as such Paying Agent.

Section 9.11 <u>Moneys Held for Particular Bonds</u>. The amounts held by the Trustee or Paying Agent for the payment of the interest, principal or Redemption Price due on any date with respect to particular Bonds, on and after such date and pending such payment, shall be set aside on its books and held in trust by it for the owners of the Bonds entitled thereto. Such funds shall be invested in Investment Securities pursuant to Section 5.7 at the direction of the Borrower for the account of the Borrower or shall otherwise remain uninvested.

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Section 9.12 (a) <u>Continuation Statements</u>. The Trustee shall cause continuation statements for the financing statements filed at the time of issuance of the Bonds (a copy of which is provided to the Trustee) to be filed in the applicable state offices so as to continue the perfected status thereof pursuant to the Uniform Commercial Code of the applicable states. In addition, unless the Trustee shall have been notified in writing that any such initial filing or description of collateral was or has become defective, the Trustee shall be fully protected in (i) relying on such initial filing and description in filing any financing or continuation statements or modifications thereto pursuant to this Section and (ii) filing any continuation statements in the same filing offices as the initial filings were made. The Borrower shall be responsible for the costs, fees and expenses charged by the Trustee for the preparation and filing of continuation statements and for the reasonable costs, fees and expenses incurred by the Trustee in the preparation and filing of all continuation statements hereunder.

Section 9.13 <u>[Reserved]</u>.

Section 9.14 <u>Payments Due on non-Business Day</u>. In any case where the date of payment maturity of interest on or principal of the Bonds or the date fixed for redemption of any Bonds shall be a day other than a Business Day, then payment of such amount shall be made on the next succeeding Business Day with the same force and effect as if made on the date of maturity or the date fixed for redemption, and no interest shall accrue for the period after such date.

Section 9.15 <u>Appointment of Co-Trustee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee represents that it has the power and authority to perform all functions required of the Trustee under the General Financing Documents. Without limiting the foregoing, it is the purpose of this Indenture that there shall be no violation of any law of any jurisdiction denying or restricting the right of banking corporations or associations to transact business as trustee in such jurisdiction. It is recognized that in case of litigation under this Indenture or the Loan Agreement, and in particular in case of the enforcement of either the Loan Agreement or the Indenture on default, or in case the Trustee deems that by reason of any present or future law of any jurisdiction it may not exercise any of the powers, rights or remedies herein granted to the Trustee or hold title to the properties, in trust, as herein granted, or take any other action which may be desirable or necessary in connection therewith, it may be necessary that the Trustee appoint an additional individual or institution as a separate trustee or co-trustee. The following provisions of this Section are adapted to these ends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Trustee appoints an additional individual or institution as a separate trustee or co-trustee, each and every remedy, power, right, claim, demand, cause of action, immunity, estate, title, interest and lien expressed or intended by this Indenture to be exercised by or vested in or conveyed to the Trustee with respect thereto shall be exercisable by and vest in such separate trustee or co-trustee but only to the extent necessary to enable such separate trustee or co-trustee to exercise such powers, rights and remedies, and every covenant and obligation necessary to the exercise thereof by such separate trustee or co-trustee shall run to and be enforceable by either of them. No trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Should any instrument in writing from the Issuer be required by the separate trustee or co-trustee so appointed by the Trustee for more fully and certainly vesting in and confirming to him or it such properties, rights, powers, trusts, duties and obligations, any and all such instruments in writing shall (subject to Section 13.7 hereof), on request, be executed, acknowledged and delivered by the Issuer. In case any separate trustee or co-trustee, or a successor to either, shall die, become incapable of acting, resign or be removed, all the estates, properties, rights, powers, trusts, duties and obligations of such separate trustee or co-trustee, so far as permitted by law, shall vest in and be exercised by the Trustee until the appointment of a new trustee or successor to such separate trustee or co-trustee.

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**ARTICLE X.**<br> **<u>AMENDMENTS OF INDENTURE</u>**

Section 10.1 <u>Limitation on Modifications</u>. This Indenture shall not be modified or amended in any respect except as provided in and in accordance with and subject to the provisions of this Article.

Section 10.2 <u>Supplemental Indentures Without Consent of Owners of the Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions contained in this Article and Article XI, the Issuer may, from time to time and at any time, adopt Supplemental Indentures with the prior written consent of the Borrower, and without prior notice to, and without the consent of, the owners of the Bonds for any of the following purposes:

(i) To cure any ambiguity or to correct or supplement any provision contained herein or in any supplemental indenture which may be defective or inconsistent with any other provision contained herein or in any supplemental indenture, or to make such other provisions in regard to matters or questions arising under this Indenture or any supplemental indenture as shall not be inconsistent with this Indenture or adversely affect the interests of the Holders of any particular Bonds or series of Bonds.

(ii) To grant to or confer upon the Trustee for the benefit of the owners of the Bonds any additional rights, remedies, powers, authority or security which may lawfully be granted or conferred and which are not contrary to or inconsistent with this Indenture as theretofore in effect.

(iii) To add to the covenants and agreements of the Issuer in this Indenture other covenants and agreements to be observed by the Issuer which are not contrary to or inconsistent with this Indenture as theretofore in effect.

(iv) To add to the limitations and restrictions in this Indenture other limitations and restrictions to be observed by the Issuer which are not contrary to or inconsistent with this Indenture as theretofore in effect.

(vi) To qualify this Trust Indenture under the Trust Indenture Act of 1939, as amended, or corresponding provisions of federal laws from time to time in effect.

(vii) To authorize the issuance of certain Additional Bonds, in accordance herewith, and prescribe the terms, forms and details thereof not inconsistent with this Indenture.

(viii) To amend any provision pertaining to matters under Federal income tax laws, including Section 148(f) of the Code;

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(ix) To authorize different authorized denominations of the Bonds and to make correlative amendments and modifications to this Indenture regarding exchangeability of Bonds of different authorized denominations, redemptions of portions of Bonds of particular authorized denominations and similar amendments and modifications of a technical nature;

(x) To provide for any uncertificated system of registering the Bonds or to provide for the change to or from a Book-Entry System for the Bonds;

(xi) To evidence the succession of a new Trustee or the appointment by the Trustee or the Issuer of a co-trustee;

(xii) To make any change related to the Bonds that does not materially adversely affect the interests of any Bondholder; or

(xiii) To make any other change to this Indenture that will take effect during any period when the Borrower is permitted to optionally redeem Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Provisions of this Indenture may also be amended without Owner consent, with the written consent of the Borrower, on the date of any mandatory tender of Term Rate Bonds, but only with respect to the applicable portion of the Term Rate Bonds so tendered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Before the Issuer shall adopt any Supplemental Indenture pursuant to this Section, there shall have been filed with the Trustee a Favorable Opinion of Bond Counsel.

Section 10.3 <u>Supplemental Indentures With Consent of Owners of the Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each valid consent shall be effective only if accompanied by proof of the owning, at the date of such consent, of the Bonds with respect to which such consent is given. A certificate or certificates by the Trustee that it has examined such proof and that such proof is sufficient in accordance with this Indenture shall be conclusive that the consents have been given by the owners of the Bonds described in such certificate or certificates. Any such consent shall be binding upon the owner of the Bonds giving such consent and upon any subsequent owner of such Bonds and of any Bonds issued in exchange therefor (whether or not such subsequent owner thereof has notice thereof), unless such consent is revoked in writing by the owner of such Bonds giving such consent or a subsequent owner thereof by filing such revocation with the Trustee prior to the adoption of such Supplemental Indenture.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the owners of not less than the percentage of Bonds required by this Indenture shall have consented to and approved the execution thereof as herein provided, no owner of any Bond shall have any right to object to the enactment of such Supplemental Indenture, or to object to any of the terms and provisions contained therein or the operation thereof, or in any manner to question the propriety of the adoption thereof, or to enjoin or restrain the Issuer from adopting the same or from taking any action pursuant to the provisions thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon the adoption of any Supplemental Indenture pursuant to the provisions of this Section, this Indenture shall be deemed to be modified and amended in accordance therewith, and the respective rights, duties and obligations under this Indenture of the Issuer, the Trustee and all owners of Bonds then Outstanding shall thereafter be determined, exercised and enforced under this Indenture, subject in all respects to such modifications and amendments.

**ARTICLE XI.**<br> **<u>AMENDMENTS OF FINANCING DOCUMENTS</u>**

Section 11.1 <u>Rights of Borrower</u>. Anything herein to the contrary notwithstanding, any supplement or amendment of any Borrower Financing Document will not be effective until consented to in writing by the Borrower.

Section 11.2 <u>Amendments of Financing Documents Not Requiring Consent of Owners of the Bonds</u>. The Issuer and the Trustee may, without the consent of and without prior notice to the owners of the Bonds, consent to any amendment, change or modification of the General Financing Documents for the purpose of carrying out any of the purposes set forth in Section 10.2, curing any ambiguity or formal defect therein, to provide for the issuance of Additional Bonds or to otherwise modify the same in a manner which is not adverse to the interests of the owners of the Bonds, as evidenced to the Trustee by an opinion of counsel. The Trustee shall have no liability to any owner of the Bonds or any other person for any action taken by it in good faith pursuant to this Section.

Provisions of the General Financing Documents may also be amended without Owner consent, with the written consent of the Borrower, on the date of any mandatory tender of Term Rate Bonds, but only with respect to the applicable portion of the Term Rate Bonds so tendered.

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Section 11.3 <u>Amendments of Financing Documents Requiring Consent of Owners of the Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as provided in Section 11.2 hereof and in 11.3(b) and (c) below, the Issuer and the Trustee shall not consent to any amendment, change or modification of the General Financing Documents, without the written approval or consent of the Required Bondholders, provided that the written approval or consent of the owners of 100% in aggregate principal amount of the affected Bonds at the time Outstanding and so affected, given and procured as in Section 10.3 hereof provided, shall be required for any amendment that causes any of the following effects (1) a reduction in the aggregate principal amount of the Bonds required for consent to remedies or waivers of remedies in connection with the occurrence of an Event of Default thereunder, (2) an extension of the dates on which the Borrower's payments with respect to the Bonds are due, (3) a reduction in the principal amount or interest rate payable by the Borrower under the Loan Agreement, (4) the creation of any lien other than a lien securing all Bondholders or (5) the elimination or diminution of the liens securing the Bonds except to the extent necessary and appropriate in connection with a reduction in any such lien permitted by the General Financing Documents.

**ARTICLE XII.**<br> **<u>DEFEASANCE; DISCHARGE OF INDENTURE</u>**

Section 12.1 <u>Defeasance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Issuer, Borrower, or Trustee shall pay or cause to be paid to the holders of all Outstanding Bonds, the principal and interest and Redemption Price, if any, to become due thereon, at the times and in the manner stipulated therein and in this Indenture and any Supplemental Indenture authorizing the issuance of such Bonds, then the pledge of any revenues and other moneys, securities, funds and property hereby pledged and all other rights granted hereby with respect to such Bonds shall be discharged and satisfied. In such event, the Trustee shall, upon the request of the Borrower, execute and deliver to the Issuer or the Borrower all such instruments as may be desirable to evidence such discharge and satisfaction and after payment of all fees and expenses of the Issuer and the Issuer Indemnified Persons (including without limitation, amounts due the Issuer or the Issuer Indemnified Persons in respect of the Unassigned Rights) and all amounts owed to the Trustee (including amounts owed to its counsel) have been paid, the Trustee shall pay over or deliver to or upon the direction of the Borrower, all moneys or securities held by it pursuant to this Indenture which are not required for the payment or redemption of such Bonds not theretofore surrendered for such payment or redemption. If the Issuer, the Borrower, or the Trustee shall pay or cause to be paid, or there shall otherwise be paid, to the holders of all Outstanding Bonds of a particular Series the principal or Redemption Price, if applicable, and interest due or to become due thereon, at the times and in the manner stipulated therein in this Indenture and in the Supplemental Indenture authorizing a Series, such Bonds or Series of Bonds shall cease to be entitled to any lien, benefit or security hereunder and all covenants, agreements and obligations of the Issuer to the holders of such Bonds or Series of Bonds shall thereupon cease, terminate and become void and be discharged and satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) Bonds shall, prior to the maturity or redemption date thereof, be deemed to have been paid with the effect expressed in subsection (a) of this Section if (A) in case any of said Bonds are to be redeemed on any date prior to their maturity, the Borrower shall have given to the Trustee in form satisfactory to it irrevocable instructions to mail as provided in Article VI notice of redemption on said date of such Bonds, (B) there shall have been deposited with the Trustee either cash in an amount which shall be sufficient, or Defeasance Collateral the principal of and the interest on which when due (without further reinvestment) will provide moneys which, together with the cash, if any, deposited with the Trustee at the same time, shall be sufficient, in the opinion of a nationally recognized certified public accountant, to pay when due the principal or Redemption Price, if any, of and interest due and to become due on said Bonds on and prior to the redemption date or maturity date thereof as the case may be, and (C) in the event said Bonds do not mature and are not by their terms subject to redemption within the next succeeding sixty (60) days, the Borrower shall have given the Trustee in form satisfactory to it irrevocable instructions to mail, as soon as practicable, a notice to the holders of such Bonds that the deposit required by (B) above has been made with the Trustee and that said Bonds are deemed to have been paid in accordance with this Section and stating such maturity or redemption date upon which moneys are to be available for the payment of the principal or Redemption Price, if any, on said Bonds. Neither Defeasance Collateral nor moneys deposited with the Trustee pursuant to this Section nor principal or interest payments on any such Defeasance Collateral shall be withdrawn or used for any purpose other than, and shall be held in trust for, the payment of the principal or Redemption Price, if any, of and interest on said Bonds; but if any cash received from such principal or interest payments on such Defeasance Collateral deposited with the Trustee, is not then needed for such purpose, the Trustee shall notify the Issuer and the Borrower of such receipt, and upon written direction from the Borrower shall to the extent practicable, reinvest such amounts in Defeasance Collateral maturing at times and in amounts sufficient to pay when due the principal or Redemption Price, if any, and interest to become due on said Bonds on and prior to such redemption date or maturity date thereof, as the case maybe, and interest earned from such reinvestments shall be paid to or upon the direction of the Borrower, as received by the Trustee, free and clear of any trust, lien or pledge hereunder. There shall also be delivered to the Trustee in connection with the deposit of moneys or Defeasance Collateral an Opinion of Counsel that, with respect to Bonds the interest on which was intended at the time of their initial issuance to be excluded from gross income for federal income tax purposes, the deposit of moneys does not adversely affect the exclusion of interest on the Bonds from gross income for federal income tax purposes and such deposit has been made in compliance with the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, through the deposit of moneys by the Issuer, the Borrower, or otherwise, the Trustee shall hold pursuant to this Indenture, moneys sufficient to pay the principal and interest to maturity on all Outstanding Bonds, or in the case of Bonds in respect of which the Issuer and the Borrower shall have taken all action necessary to redeem prior to maturity, sufficient to pay the Redemption Price and interest to such redemption date, then at the request of the Borrower all moneys held by the Trustee hereunder shall be held by the Trustee for the payment or the redemption of Outstanding Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Anything in this Indenture to the contrary notwithstanding, any moneys held by the Trustee in trust for the payment and discharge of any of the Bonds which remain unclaimed for two years after the date when all of the Bonds have become due and payable, either at their stated maturity dates or by call for earlier redemption, if such moneys were held by the Trustee at such date, or for two years after the date of deposit of such moneys if deposited with the Trustee after the said date when all of the Bonds became due and payable, shall be paid to or upon the direction of the Borrower, free and clear of any trust, lien or pledge hereunder, and the Trustee shall thereupon be released and discharged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) A Supplemental Indenture may provide that any or all of the provisions of this Section 12.1 are applicable or not applicable, and that other provisions of like or different effect are applicable, to the Series of Bonds authorized by such Supplemental Indenture.

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**ARTICLE XIII.**<br> **<u>GENERAL PROVISIONS</u>**

Section 13.1 <u>Notices</u>. Any notice, request, demand communication or other paper shall be sufficiently given and shall be deemed given when delivered or, if to Bondholders, mailed by first class mail, and otherwise on the third Business Day after sent by certified mail, return receipt requested, postage prepaid or by trackable overnight delivery (or, if earlier, when received or refused), addressed as follows:

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| | |
|:---|:---|
| Issuer: | PUBLIC FINANCE AUTHORITY<br> 22 East Mifflin Street, Suite 900<br> Madison, WI 53703<br> Attention: Scott Carper and Michael LaPierre |
| If to the Borrower: | SKY HARBOUR CAPITAL III LLC<br> Hangar M, 136 Tower Road<br> Westchester County Airport<br> White Plains, NY 10604<br> Attention: Tim Herr |
| If to Trustee: | UMB BANK, N.A.<br> 1412 Broadway, Suite 1606<br> New York, NY 10018<br> Attention: Michelle Mena-Rosado |

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A duplicate copy of each notice required to be given hereunder by the Trustee to either the Issuer or the Borrower shall also be given to the other. Any notice party may designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent.

Section 13.2 <u>Bondholder Directions and Consents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding anything herein to the contrary, during any period when the Book-Entry System is in effect, when any consent or direction is permitted to or required of any Bondholder or group of Bondholders or when any notice is required to be given to any Bondholder hereunder or under the General Financing Documents, the Trustee shall comply with terms of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any consent or direction permitted or required of any Bondholder or group of Bondholders may be obtained from the Beneficial Owners directly. To the extent any Beneficial Owner delivers a consent or direction to the Trustee such direction or consent shall be counted towards the total for determining whether the requisite portion of the Bondholders have consented to or directed any action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any consent, approval or agreement is requested or required of the Trustee in its capacity as assignee of the rights of the Issuer under the Loan Agreement, the Trustee, absent specific direction of the Required Bondholders, which, it may request in its discretion, the Trustee may take such action as it deems appropriate without giving notice to or obtaining the consent of any Bondholders if, in the Trustee's reasonable judgment (with the advice of counsel), such action is not contrary to the provisions hereof and will not materially adversely affect the Bondholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Except as otherwise specifically provided herein, nothing in this Indenture expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the Issuer, the Issuer Indemnified Persons, the Trustee, the Borrower, the Paying Agent, if any, and the registered owners of the Bonds, any right, remedy or claim under or by reason of this Indenture or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Indenture contained by and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer, the Issuer Indemnified Persons, the Trustee, the Borrower, the Paying Agent, if any, and the registered owners of the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding any provision hereof to the contrary, whenever any certificate or opinion is required by the terms of this Indenture to be given by the Issuer on its own behalf, any such certificate or opinion may be made or given by an Authorized Signatory (and in no event individually) and may be based (i) insofar as it relates to factual matters, upon a certificate of or representation by the Trustee or the Borrower; and (ii) insofar as it relates to legal or accounting matters, upon a certificate or opinion of or representation by counsel or an accountant, in each case under clause (i) or (ii) without further investigation or inquiry by such Authorized Signatory or otherwise on behalf of the Issuer.

Section 13.3 <u>Waiver of Personal Liability</u>. No Issuer Indemnified Person shall be individually or personally liable for the payment of any principal of, premium, if any, or interest on the Bonds or any costs incidental thereto or any sum hereunder or under the Loan Agreement or any claim based hereon or thereon, or be subject to any personal liability or accountability by reason of the execution and delivery of this Indenture or the Loan Agreement.

Section 13.4 <u>No Obligation to Enforce Assigned Rights</u>. Notwithstanding anything to the contrary in this Indenture or the Loan Agreement, the Issuer shall have no obligation to and instead the Trustee and/or the Bondholders, as the case may be, in accordance with this Indenture or the Loan Agreement, shall have the exclusive right, without any notice to, direction from, or action by the Issuer, to take any and all steps, actions and proceedings, to enforce any or all rights of the Issuer (other than the Unassigned Rights) under this Indenture or the Loan Agreement, including, without limitation, the rights to enforce the remedies upon the occurrence and continuation of an Event of Default and the obligations of the Borrower under the Loan Agreement.

Section 13.5 <u>Third-Party Beneficiaries</u>. Notwithstanding any provision hereof to the contrary, it is specifically acknowledged and agreed that, to the extent of their rights hereunder (including, without limitation, their rights to immunity and exculpation from pecuniary liability) each Issuer Indemnified Person is a third-party beneficiary of this Indenture entitled to enforce such rights in his, her, its or their own name.

Section 13.6 <u>No Impairment of Rights</u>. Nothing herein shall be deemed or construed to limit, impair or affect in any way the Issuer's (or any Issuer Indemnified Person's) right to enforce the Unassigned Rights, regardless of whether there is then existing an Event of Default (including, without limitation, a payment default), or any action based thereon or occasioned by an Event of Default or alleged Event of Default, and regardless of any waiver or forbearance granted by the Trustee or any Bondholder in respect thereof. Any default or Event of Default in respect of the Unassigned Rights may only be waived with the Issuer's written consent.

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Section 13.7 <u>Issuer</u><u>'</u><u>s Performance</u>. None of the provisions of this Indenture or the Loan Agreement shall require the Issuer to expend or risk its own funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder or thereunder, unless payable from the Trust Estate, or unless the Issuer shall first have been adequately indemnified by the Borrower to its satisfaction against the cost, expense, and liability which may be incurred thereby. The Issuer shall not be under any obligation hereunder or under the Loan Agreement to perform any administrative service with respect to the Bonds or the Project (including, without limitation, record keeping and legal services), it being understood that such services shall be performed or provided by the Trustee or the Borrower. The Issuer covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions expressly contained in this Indenture, the Loan Agreement, and any and every Bond executed, authenticated and delivered under this Indenture; provided, however, that the Issuer shall not be obligated to take any action or execute any instrument pursuant to any provision hereof unless and until it shall have (i) been directed to do so in writing by the Borrower, the Trustee, or the Bondholder having the authority to so direct; (ii) received from the Borrower, the Trustee, or the Bondholder requesting such action or execution assurance satisfactory to the Issuer that the Issuer's expenses incurred or to be incurred in connection with taking such action or executing such instrument have been or will be paid or reimbursed to the Issuer; and (iii) if applicable, received in a timely manner the instrument or document to be executed, in form and substance satisfactory to the Issuer.

In complying with any provision herein or in the Loan Agreement, including but not limited to any provision requiring the Issuer to "cause" another Person to take or omit any action, the Issuer shall be entitled to rely conclusively (and without independent investigation or verification) (i) on the faithful performance by the Trustee or the Borrower, as the case may be, of their respective obligations hereunder and under the Loan Agreement and (ii) upon any written certification or opinion furnished to the Issuer by the Trustee or the Borrower, as the case may be. In acting, or in refraining from acting, under this Indenture or the Loan Agreement, the Issuer may conclusively rely on the advice of its counsel. The Issuer shall not be required to take any action hereunder or under the Loan Agreement that it reasonably believes to be unlawful or in contravention hereof or thereof.

Section 13.8 <u>Parties Interested Herein</u>. Except as otherwise specifically provided herein and subject to Section 13.2 hereof, nothing in this Indenture expressed or implied is intended or shall be construed to confer upon, or to give to, any person or entity, other than the Issuer, the Trustee, the Borrower, the Paying Agent, if any, and the registered owners of the Bonds, any right, remedy or claim under or by reason of this Indenture or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in this Indenture contained by and on behalf of the Issuer shall be for the sole and exclusive benefit of the Issuer, the Trustee, the Borrower, the Paying Agent, if any, and the registered owners of the Bonds.

Section 13.9 <u>Effective Date; Counterparts</u>. This Indenture shall become effective on delivery. It may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture and signature pages for all purposes.

Section 13.10 <u>Continuing Disclosure</u>. The Borrower has undertaken all responsibility for compliance with applicable continuing disclosure requirements under Rule 15c2-12 of the Securities and Exchange Commission and the Issuer shall have no liability to the Bondholders, the Borrower or any other person with respect to such rule.

Section 13.11 <u>Date for Identification Purposes Only</u>. The date of this Indenture shall be for identification purposes only and shall not be construed to imply that this Indenture was executed on such date.

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Section 13.12 <u>Governing Law</u>. THE EFFECT AND MEANING OF THIS INDENTURE AND THE RIGHTS OF ALL PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF WISCONSIN. All claims of whatever character arising out of this Indenture, or under any statute or common law relating in any way, directly or indirectly, to the subject matter hereof or to the dealings between the Issuer and any other party hereto, if and to the extent that such claim potentially could or actually does involve the Issuer or any Issuer Indemnified Person, shall be brought in any state or federal court of competent jurisdiction located in Dane County, Wisconsin. By executing and delivering this Indenture, each party hereto irrevocably: (i) accepts generally and unconditionally the exclusive jurisdiction and venue of such courts; (ii) waives any defense of *forum non conveniens*; and (iii) agrees not to seek removal of such proceedings to any court or forum other than as specified above. The foregoing shall not be deemed or construed to constitute a waiver by the Issuer of any prior notice or procedural requirements applicable to actions or claims against or involving joint powers commissions or governmental units of the State of Wisconsin that may exist at the time of and in connection with such matter.

Section 13.13 <u>Non-Liability of Issuer</u>. The Issuer shall not be obligated to pay the principal of, premium, if any, or interest on the Bonds or any costs incidental thereto, except from the Trust Estate. Neither the faith and credit nor the taxing power of any Sponsor, any Member, the State of Wisconsin or any other political subdivision or agency thereof or any political subdivision approving the issuance of the Bonds, nor the faith and credit of the Issuer, is pledged to the payment of the principal of, premium, if any, or interest on the Bonds or any costs incidental thereto. The Issuer has no taxing power. The Issuer shall not be directly, indirectly, contingently or otherwise liable for any costs, expenses, losses, damages, claims or actions, of any conceivable kind on any conceivable theory, under or by reason of or in connection with this Indenture, the Bonds or the Loan Agreement, except only to the extent amounts are received for the payment thereof from the Borrower under the Loan Agreement.

The Trustee hereby acknowledges that the Issuer's sole source of moneys to repay the Bonds will be provided by the Trust Estate, and hereby agrees that if such amounts in the Trust Estate shall ever prove insufficient to pay all principal of, premium, if any, and interest on the Bonds as the same shall become due (whether by maturity, redemption, acceleration or otherwise) or any costs incidental thereto, then upon notice or demand from the Trustee, the Borrower in accordance with Section 7.5 (second paragraph) of the Loan Agreement shall pay such amounts as are required from time to time to prevent any deficiency or default in the payment of such principal, premium, if any, or interest, or costs incidental thereto including, but not limited to, any deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Trustee, the Issuer, the Borrower or any third party, subject to any right of reimbursement from the Trustee, the Issuer or any such third party, as the case may be, therefor.

Section 13.14 <u>Limited Liability.</u> The Bonds are special limited obligations of the Issuer payable solely from the Trust Estate and, except from such source, none of the Issuer, any Member, any Sponsor or any Issuer Indemnified Person, the State of Wisconsin or any political subdivision or agency thereof or any political subdivision approving the issuance of the Bonds shall be obligated to pay the principal of, premium, if any, or interest thereon or any costs incidental thereto. The Bonds are not a debt of the State of Wisconsin or the Members and do not, directly, indirectly or contingently, obligate in any manner any Member, the State of Wisconsin or any political subdivision or agency thereof or any political subdivision approving the issuance of the Bonds to levy any tax or to make any appropriation for payment of the principal of, premium, if any, or interest on, the Bonds or any costs incidental thereto. Neither the faith and credit nor the taxing power of any Member, the State of Wisconsin or any political subdivision or agency thereof or any political subdivision approving the issuance of the Bonds, nor the faith and credit of the Issuer, any Sponsor or any Issuer Indemnified Person, shall be pledged to the payment of the principal of, premium, if any, or interest on, the Bonds or any costs incidental thereto. The Issuer has no taxing power.

Section 13.15 <u>Patriot and U.S.A. Freedom Act Requirements of the Trustee</u>. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. Accordingly, the Trustee will require documentation from each non-individual person such as a business entity, a charity, a trust, or other legal entity, verifying its formation as a legal entity. The Trustee may also request financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. The Issuer and Borrower agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the U.S.A. Patriot Act.

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Section 13.16 <u>Waiver of Jury Trial</u>. EACH OF THE ISSUER, THE BORROWER, THE HOLDERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE BONDS OR THE TRANSACTIONS CONTEMPLATED HEREBY.

[The remainder of this page is left blank intentionally.]

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IN WITNESS WHEREOF, the Issuer has caused these presents to be signed in its name and behalf by its Authorized Signatory, and to evidence its acceptance of the trusts hereby created the Trustee has caused these presents to be signed in its name and behalf by its duly authorized officer, as of the date first above written.

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| | |
|:---|:---|
| PUBLIC FINANCE AUTHORITY | PUBLIC FINANCE AUTHORITY |
| By: | /s/ Amity A. Dias |
| Name: Amity A. Dias | Name: Amity A. Dias |
| Title: Assistant Secretary | Title: Assistant Secretary |

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| | |
|:---|:---|
| UMB BANK, N.A., as Trustee | UMB BANK, N.A., as Trustee |
| By: | /s/ Michelle Mena-Rosado |
| Name: Michelle Mena-Rosado | Name: Michelle Mena-Rosado |
| Title: Vice President | Title: Vice President |

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(Signature Page for Trust Indenture)

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**EXHIBIT A**

FORM OF BOND

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| | |
|:---|:---|
| Sen No.: R-__ | Principal Amount: $ |

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**PUBLIC FINANCE AUTHORITY**

**Revenue Bonds**

**(Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026**

THIS BOND IS A SPECIAL LIMITED OBLIGATION OF THE ISSUER PAYABLE SOLELY FROM THE TRUST ESTATE (AS DEFINED IN THE HEREINAFTER DEFINED INDENTURE), AND EXCEPT FROM SUCH SOURCE, NONE OF THE ISSUER, ANY SPONSOR (AS DEFINED IN THE LOAN AGREEMENT), ANY MEMBER (AS DEFINED IN THE LOAN AGREEMENT), ANY ISSUER INDEMNIFIED PERSON (AS DEFINED IN THE LOAN AGREEMENT), THE STATE OF WISCONSIN, OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF OR ANY POLITICAL SUBDIVISION APPROVING THE ISSUANCE OF THIS BOND SHALL BE OBLIGATED TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST HEREON OR ANY COSTS INCIDENTAL HERETO. THIS BOND IS NOT A DEBT OF THE STATE OF WISCONSIN OR ANY MEMBER AND DOES NOT DIRECTLY, INDIRECTLY OR CONTINGENTLY OBLIGATE, IN ANY MANNER, ANY MEMBER, THE STATE OF WISCONSIN OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF OR ANY POLITICAL SUBDIVISION APPROVING THE ISSUANCE OF THIS BOND TO LEVY ANY TAX OR TO MAKE ANY APPROPRIATION FOR PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON, THIS BOND OR ANY COSTS INCIDENTAL HERETO. NEITHER THE FAITH AND CREDIT NOR THE TAXING POWER OF ANY MEMBER, THE STATE OF WISCONSIN OR ANY POLITICAL SUBDIVISION OR AGENCY THEREOF OR ANY POLITICAL SUBDIVISION APPROVING THE ISSUANCE OF THIS BOND, NOR THE FAITH AND CREDIT OF THE ISSUER, ANY SPONSOR OR ANY ISSUER INDEMNIFIED PERSON, SHALL BE PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON, THIS BOND OR ANY COSTS INCIDENTAL HERETO. THE ISSUER HAS NO TAXING POWER.

EACH INITIAL BENEFICIAL OWNER (AS DEFINED IN THE INDENTURE) OF THIS BOND SHALL EITHER BE A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN THE INDENTURE) OR AN ACCREDITED INVESTOR (AS DEFINED IN THE INDENTURE). THIS BOND IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT TO A PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER OR AN ACCREDITED INVESTOR, AND, IN THE CASE OF ANY ACCREDITED INVESTOR WHO IS NOT A QUALIFIED INSTITUTIONAL BUYER, IN A MINIMUM PRINCIPAL AMOUNT OF $25,000 REGARDLESS OF ANY LOWER MINIMUM DENOMINATION AUTHORIZED BY THE INDENTURE. THE PURCHASER HEREOF AGREES TO PROVIDE NOTICE TO ANY PROPOSED TRANSFEREE OF A BENEFICIAL OWNERSHIP INTEREST IN THIS BOND OF SUCH RESTRICTIONS ON TRANSFERS.

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EACH TRANSFEREE OF THIS BOND, BY ITS PURCHASE HEREOF, IS DEEMED TO HAVE REPRESENTED THAT SUCH TRANSFEREE IS A QUALIFIED INSTITUTIONAL BUYER OR AN ACCREDITED INVESTOR AND WILL ONLY TRANSFER, RESELL, REOFFER, PLEDGE OR OTHERWISE TRANSFER THIS BOND TO A SUBSEQUENT TRANSFEREE WHO IS A QUALIFIED INSTITUTIONAL BUYER OR AN ACCREDITED INVESTOR WHO IS WILLING AND ABLE TO CONDUCT AN INDEPENDENT INVESTIGATION OF THE RISKS INVOLVED WITH OWNERSHIP OF THE BONDS, AND AGREES TO BE BOUND BY THE TRANSFER RESTRICTIONS SET FORTH IN SECTION 4.12 OF THE INDENTURE.

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| | | | | |
|:---|:---|:---|:---|:---|
| **<u>Dated Date</u>** | **<u>Maturity Date</u>** | **<u>Mode</u>** | **<u>Interest Rate</u>** | **<u>CUSIP Number</u>** |
|  | July 1, 20__ |  | ____% | ____ |

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REGISTERED OWNER: CEDE & CO.

PRINCIPAL AMOUNT: __________ ($________)

THIS BOND HAS BEEN AUTHORIZED AND ISSUED PURSUANT TO THE LAWS OF THE STATE OF WISCONSIN, INCLUDING PARTICULARLY, SECTION 66.0304 OF THE WISCONSIN STATUTES, AS AMENDED. BONDS ISSUED UNDER SECTION 66.0304 SHALL NOT BE INVALID FOR ANY IRREGULARITY OR DEFECT IN THE PROCEEDINGS FOR THEIR SALE OR ISSUANCE.

PUBLIC FINANCE AUTHORITY, a joint powers commission under the Act (as hereinafter defined), the "commission" under Section 66.0304 of the Wisconsin Statutes, and a unit of government and body corporate and politic organized and existing under the laws of the State of Wisconsin (together with its successors and assigns, the "Issuer"), for value received, promises to pay, from the sources described herein, to the Registered Owner specified above, or registered assigns, the Principal Amount specified above, on the Maturity Date specified above (unless this Bond shall have been called for prior redemption) and to pay, from such sources, interest on said sum on July 1, 2026 and on each January 1 and July 1 thereafter (each an "Interest Payment Date") at the Interest Rate specified above, until payment of the principal hereof has been made or provided for. This Bond will bear interest from the most recent interest payment date to which interest has been paid or provided for, or, if no interest has been paid, from the Dated Date set forth above. Notwithstanding the foregoing, following an Event of Default, the interest rate in effect on this Series 2026 Bond shall be the Default Rate.

This Bond and the series of Bonds of which it is a part have been authorized and issued pursuant to the laws of the State of Wisconsin, including particularly Section 66.0304 of the Wisconsin Statutes, as amended. This Bond is a limited obligation of the Issuer payable solely from the Trust Estate (as defined in the Indenture) and not from any other revenues, funds or assets of the Issuer.

Interest shall be payable by mailing by first class mail on the Interest Payment Date a check for such interest payable to the person entitled thereto (such person being the registered owner of record on the books of the Issuer applicable to such Interest Payment Date) at his or her address as it appears on the bond register of the Issuer as maintained by the Trustee as of the fifteenth (15<sup>th</sup>) day of the month immediately preceding the Interest Payment Date, except that a registered owner of at least $1,000,000 in principal amount of the Bonds shall be paid interest by wire transfer or other reasonable method in immediately available funds to an account in the United States or place within the United State designated by such holder if such registered owner makes a written request to the Trustee on or prior to the Interest Payment Date specifying such account information as the Trustee may require, such wire transfer or other special payment to be at the expense of the holder; provided, however, that while this Bond is held in the Book-Entry System (as defined in the Indenture), principal of and interest on this Bond shall be paid as provided in the Indenture. Payment shall be made in any coin or currency which is than legal tender of the United States of America. The amount of interest to be paid is to be computed on the basis of a 360-day year consisting of twelve 30-day months. Notwithstanding anything herein to the contrary, at no time, whether as a result of an Event of Default (as defined in the Indenture) or otherwise, shall this Bond bear interest at an interest rate higher than the Maximum Rate (as defined in the Indenture).

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This bond is one of a series of Bonds of the Issuer representing a borrowing in the aggregate principal amount of $150,000,000 (comprising the Issuer's Public Finance Authority Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026 (herein called the "Bonds") authorized to be issued and so issued in fully registered form under and pursuant to a Trust Indenture, dated as of January 1, 2026 (the "Indenture"), by and between the Issuer and the Trustee. Capitalized terms used herein and not defined herein shall have the meaning assigned to such terms in the Indenture.

The Bonds are issuable in Authorized Denominations. The Indenture provides for the issuance, from time to time, under the conditions, limitations, and restrictions set forth therein, of additional Bonds, issued or to be issued under the Indenture and any supplement thereto.

Reference is hereby made to the Indenture and the Loan Agreement, and all supplements and amendments thereto, for a description of the rights thereunder of the registered Owners of the Bonds, of the payments and funds pledged and assigned as security for payment of the Bonds and the nature and extent thereof, of the terms on which the Bonds are issued and the terms and conditions on which the Bonds will be deemed to be paid at or prior to maturity or redemption upon provision for payment thereof in the manner set forth in the Indenture, of the rights, duties and immunities of the Trustee and of the rights and obligations of the Issuer thereunder, to all of the provisions of which Indenture the registered Owner of this Bond, by acceptance hereof, assents and agrees.

A copy of the Indenture is on file at the designated corporate trust office of the Trustee in New York, New York, and reference to the Indenture and any and all supplements thereto and modifications and amendments thereof is made for a description of the pledges and covenants securing the Bonds, the nature, extent, and manner of enforcement of such pledges, the rights and remedies of the registered owners of the Bonds with respect thereto, and the terms and conditions upon which the Bonds have been issued and may be issued thereunder. To the extent and in the manner permitted by the terms of the Indenture, the provisions of the Indenture or any indenture amendatory thereof or supplemental thereto may be modified or amended by the Issuer, as provided therein, including in certain cases, without the consent of the holders of the Bonds. The holder of this Bond shall have no right to enforce the provisions of the Indenture, to institute action to enforce the provisions of the Indenture or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture. In certain events, on the conditions, in the manner and with the effect set forth in the Indenture, the principal of all the Bonds issued thereunder and then outstanding, together with accrued interest thereon, may become or may be declared due and payable before the maturity thereof.

The Bonds are subject to redemption in whole or in part prior to maturity at such times, under such circumstances, and at such redemption prices as are provided in the Indenture.

<u>Mandatory Tender</u>. The Series 2026 Bonds in the Term Rate Mode shall be subject to mandatory tender for purchase on each Mandatory Tender Date. EACH OWNER AND EACH BENEFICIAL OWNER OF THE SERIES 2026 BONDS, BY ITS ACCEPTANCE OF THE SERIES 2026 BONDS, AGREES TO TENDER ITS SERIES 2026 BONDS TO THE TRUSTEE FOR PURCHASE ON EACH MANDATORY TENDER DATE. The Trustee shall give notice of such mandatory purchase to the Owners of the Series 2026 Bonds subject to mandatory tender for purchase no less than ten (10) days prior to the Mandatory Tender Date. Any notice shall state the Mandatory Tender Date, the Purchase Price, the numbers of the Series 2026 Bonds to be purchased if less than all of the Series 2026 Bonds owned by such Owner are to be purchased, the CUSIP numbers of the Bonds to be purchased and that interest on Series 2026 Bonds subject to mandatory purchase shall cease to accrue from and after the Mandatory Tender Date. The failure to send such notice with respect to any Series 2026 Bond shall not affect the validity of the mandatory purchase of any other Series 2026 Bond with respect to which notice was so sent or the mandatory purchase on a Scheduled Mandatory Tender Date. Any notice sent will be conclusively presumed to have been given, whether or not actually received by any Owner or beneficial owner. The Series 2026 Bonds in the Fixed Rate Mode shall not be subject to mandatory tender for purchase.

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<u>Conversion</u>. While the Series 2026 Bonds are in a Term Rate Mode, on each Mandatory Tender Date, the Borrower may effect a change in the interest rate with respect to all or a portion of the Series 2026 Bonds to a new Term Rate for a new Term Rate Period or convert all or a portion of the Series 2026 Bonds to bear interest at a Fixed Rate. When a portion of the Series 2026 Bonds is subject to conversion, the Borrower may change the series designation for such portion with notice to the Trustee and the Issuer. On any Business Day which is at least 12 days before the proposed Conversion Date, the Borrower shall give written notice to the Notice Parties stating that the Series 2026 Bonds will be converted to a new Term Rate for a new Term Rate Period or to the Fixed Rate, as applicable, and setting forth the proposed Conversion Date. Not later than the 10th day next preceding the Conversion Date, the Trustee shall send, in the name of the Issuer, a notice of such proposed conversion to the Owners of the Series 2026 Bonds stating that the Series 2026 Bonds will be converted to a new Term Rate for a new Term Rate Period or to a Fixed Rate, as applicable, stating the proposed Conversion Date and stating that such Owner is required to tender such Owner's Series 2026 Bonds for purchase on such proposed Conversion Date. Following conversion to the Fixed Rate Mode, the Series 2026 Bonds shall not be subject to mandatory tender for purchase.

Neither the Issuer Indemnified Persons nor any person executing this Bond shall be liable personally hereon or shall be subject to any personal liability or accountability by reason of its execution.

This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Indenture until the Certificate of Authentication hereon shall have been signed by the Trustee or its Agent.

It Is Hereby Certified, Recited, and Declared that all acts, conditions, and things required by the Act and statutes of the State of Wisconsin and the Indenture to exist, to have happened, and to have been performed precedent to and in connection with the issuance of this Bond, exist, have happened, and have been performed in due time, form, and manner as required by law and that the issue of the Bonds, together with all other indebtedness of the Issuer, is within every debt and other limit prescribed by law.

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IN WITNESS WHEREOF, the Issuer has caused this Bond to be to be executed, under seal, by its Authorized Signatory by manual or facsimile signature.

DATED: ___________, 2026

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| |
|:---|
| PUBLIC FINANCE AUTHORITY |
| By: |
| Name: |
| Title: Assistant Secretary |

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**CERTIFICATE OF AUTHENTICATION**

This Bond is one of the Bonds issued under the provisions of and described in the within-mentioned Indenture.

Date of Authentication: ____________, 2026

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| |
|:---|
| UMB BANK, N.A., as Trustee |
| By:  |
| Authorized Signer |

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**ASSIGNMENT**

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

(Please insert Social Security Number or other identifying number of assignee)

(Please print or Typewrite Name and Address of Assignee)

the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints_____________________ attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises.

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| | |
|:---|:---|
| Dated: ________________. |  |
| Signature Guaranteed |  |
| NOTICE: Signature(s) must be guaranteed by an eligible guaranty institution. |  |
|  | Signature |
|  | NOTICE: The Signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. |

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EXHIBIT B

<u>2026 PROJECT</u>

(A) The 2026 Project comprises the following components at each of the following locations:

***Addison Phase 2 Project***

<u>Description of Project</u>: This project includes the development of the second phase of a general aviation and aircraft storage facility, comprising four hangars aggregating approximately 110,000 square feet.

<u>Project Location</u>: Addison Airport, Claire Chennault Street, Addison, TX 75001.

***BDL Project***

<u>Description of Project</u>: This project includes the development of a general aviation and aircraft storage facility, comprising three hangars aggregating approximately 110,000 square feet.

<u>Project Location</u>: Bradley International Airport, Perimeter Road, Windsor Locks, Hartford, Connecticut.

***SLC Project***

<u>Description of Project</u>: This project includes the development of an aircraft storage facility, comprising four hangars aggregating approximately 170,000 square feet.

<u>Project Location</u>: Salt Lake City International Airport, 1181 N 2330 W, Salt Lake City, UT 84116.

***POU Phase 1 Project***

<u>Description of Project</u>: This project includes the development of a general aviation and aircraft storage facility, comprising three hangars aggregating approximately 90,000 square feet.

<u>Project Location</u>: Hudson Valley Regional Airport, Citation Drive, Wappinger Falls, New York.

***ORL Phase 1***

<u>Description of Project</u>: This project includes the development of a general aviation and aircraft storage facility, comprising three hangars and a fixed base operations terminal aggregating approximately 130,000 square feet. Construction is expected to begin in March 2026.

<u>Project Location</u>: Orlando Executive Airport, Rickenbacker Drive, Orlando, Florida.

(B) The scope of the 2026 Project may be modified by the Borrower from time to time to include any of the Additional Projects listed below and/or remove 2026 Projects listed above that are not yet constructed, upon delivery by the Borrower to the Trustee of the items listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate of the Borrower (a) describing the modification of the 2026 Project, and (b) confirming as of the date of the certificate that no default or Event of Default exists under this Indenture or the Loan Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certified copy of the resolution of the Issuer approving the Additional Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) evidence of receipt of such other approvals, and compliance with such other requirements or conditions then in effect, necessary for Bond Counsel to issue the opinion set forth in clause (iv) below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Favorable Opinion of Bond Counsel with respect to the modification of the 2026 Project.

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"Additional Projects" means any of the following:

***TTN***

<u>Description of Project</u>: This project includes the development of a general aviation and aircraft storage facility, comprising three hangars aggregating approximately 130,000 square feet. Construction is expected to begin in June 2026.

<u>Project Location</u>: Trenton-Mercer Airport, East Piper Avenue, Trenton, New Jersey.

(C) The scope of the 2026 Project may be further modified by the Borrower from time to time to include additional projects located at one or more new or existing sites and/or remove 2026 Projects listed above that are not yet constructed, upon delivery by the Borrower to the Trustee of the items listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate of the Borrower (a) describing the modification of the 2026 Project, estimating the resulting increase or decrease in the cost of the 2026 Project and confirming that the Borrower and/or its affiliates have sufficient funds available (including pursuant to available lending commitments) to complete the 2026 Project as modified, (b) confirming as of the date of the certificate that no default or Event of Default exists under this Indenture or the Loan Agreement, and (c) confirming that the additional project satisfies the criteria for being an Approved Eligible Project (as defined in the Drawdown Note Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a certified copy of the resolution of the Issuer approving the modification of the 2026 Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) evidence of receipt of such other approvals, and compliance with such other requirements or conditions then in effect, necessary for Bond Counsel to issue the opinion set forth in clause (iv) below; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a Favorable Opinion of Bond Counsel with respect to the modification of the 2026 Project.

## Exhibit 10.2

**Exhibit 10.2**

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**LOAN AGREEMENT**

By and between

**PUBLIC FINANCE AUTHORITY**

and

**SKY HARBOUR CAPITAL III, LLC**

Dated as of January 1, 2026

Relating to

**$150,000,000**<br> **Public Finance Authority**

**Revenue Bonds**

**(Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026**

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**<u>**TABLE OF CONTENTS**</u>**

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| | | |
|:---|:---|:---|
|  |  | **<u>Page</u>** |
| Article I DEFINITIONS AND INTERPRETATION | Article I DEFINITIONS AND INTERPRETATION | 2 |
| Section 1.1. | Definitions | 2 |
| Section 1.2. | Interpretation | 4 |
| Article II REPRESENTATIONS AND WARRANTIES | Article II REPRESENTATIONS AND WARRANTIES | 5 |
| Section 2.1. | Representations by the Issuer | 5 |
| Section 2.2. | Representations by the Borrower | 6 |
| Article III THE LOAN | Article III THE LOAN | 8 |
| Section 3.1. | Loan Clauses | 8 |
| Section 3.2. | Other Amounts Payable and Other Obligations | 10 |
| Section 3.3. | Additional Payments | 10 |
| Section 3.4. | Manner of Payment | 11 |
| Section 3.5. | Obligation Unconditional | 11 |
| Section 3.6. | Usury | 12 |
| Section 3.7. | Issuance of Additional Bonds | 12 |
| Section 3.8. | Effective Date and Term | 13 |
| Section 3.9. | Security for Borrower's Performance | 13 |
| Section 3.10. | Special Services Covenant | 13 |
| Section 3.11. | Agreement to Construct 2026 Project; Completion Certificate | 13 |
| Section 3.12. | Requisition | 14 |
| Section 3.13. | Borrower Required to Pay Costs of the 2026 Project if Construction Accounts Insufficient | 15 |
| Article IV COVENANTS OF THE BORROWER | Article IV COVENANTS OF THE BORROWER | 15 |
| Section 4.1. | Compliance with Bond Indenture | 15 |
| Section 4.2. | Continuing Disclosure | 15 |
| Section 4.3. | Tax-Exempt Bonds Not to Become Taxable | 15 |
| Section 4.4. | Permitted Indebtedness | 16 |
| Section 4.5. | Further Assurances and Corrective Instruments | 16 |
| Section 4.6. | Covenant by Borrower as to Compliance with Trust Indenture | 16 |
| Section 4.7. | Assignment of Agreement | 17 |
| Article V EVENTS OF DEFAULT AND REMEDIES | Article V EVENTS OF DEFAULT AND REMEDIES | 17 |
| Section 5.1. | Events of Default | 17 |
| Section 5.2. | Remedies on Default | 18 |
| Section 5.3. | No Duty to Mitigate Damages | 19 |
| Section 5.4. | Remedies Cumulative | 19 |
| Section 5.5. | Notice of Default by Bond Trustee | 19 |

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i

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| | | |
|:---|:---|:---|
| Article VI PREPAYMENT PROVISIONS | Article VI PREPAYMENT PROVISIONS | 19 |
| Section 6.1. | Optional and Extraordinary Prepayment | 19 |
| Section 6.2. | Notice of Prepayment | 20 |
| Article VII GENERAL | Article VII GENERAL | 20 |
| Section 7.1. | Trust Indenture | 20 |
| Section 7.2. | Benefit of and Enforcement by Bondholders | 21 |
| Section 7.3. | Amendments | 21 |
| Section 7.4. | Notices | 21 |
| Section 7.5. | Non-Liability of Issuer | 21 |
| Section 7.6. | Waiver of Personal Liability | 22 |
| Section 7.7. | Filing | 22 |
| Section 7.8. | Prior Agreements Superseded | 23 |
| Section 7.9. | Execution of Counterparts | 23 |
| Section 7.10. | Expenses | 23 |
| Section 7.11. | Indemnification | 23 |
| Section 7.12. | No Obligation to Enforce Assigned Rights | 26 |
| Section 7.13. | Issuer's Performance | 26 |
| Section 7.14. | No Impairment of Rights | 27 |
| Section 7.15. | Closing Expenses | 27 |
| Section 7.16. | Survival of Provisions | 27 |
| Section 7.17. | Third Party Beneficiaries | 27 |
| Section 7.18. | Governing Law | 28 |
| Section 7.19. | Waiver of Jury Trial | 28 |
| Section 7.20. | Patriot and U.S.A. Freedom Act Requirements of the Bond Trustee | 28 |
| Exhibit A – Form of Requisition from Series 2026 Construction Account | Exhibit A – Form of Requisition from Series 2026 Construction Account |  |

---

ii

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**LOAN AGREEMENT**

THIS LOAN AGREEMENT (as amended and supplemented from time to time, the "**Loan Agreement**"), made and dated as of January 1, 2026, by and between PUBLIC FINANCE AUTHORITY (together with its successors and assigns, the "**Issuer**"), a joint powers commission created under Section 66.0304 of the Wisconsin Statutes, a unit of government and a body corporate and politic organized and existing under the laws of the State of Wisconsin with the powers, among others, set forth in Sections 66.0301, 66.0303 and 66.0304, as amended, of the Wisconsin Statutes (the "**Act**"), and SKY HARBOUR CAPITAL III, LLC (together with its successors and assigns, the "**Borrower**").

**W I T N E S S E T H T H A T :**

WHEREAS, the Issuer is authorized and empowered under the Act and by the Joint Exercise Agreement (as defined in the hereinafter defined Indenture) to, among other things, issue bonds, notes or other evidences of indebtedness in connection with, and to make loans to assist in the financing and refinancing of, "projects" (as defined in the Act) located inside and outside of the State of Wisconsin;

WHEREAS, the Borrower has applied for the financial assistance of the Issuer in the financing or refinancing of the 2026 Project (as hereinafter defined);

WHEREAS, the Issuer has authorized the issuance of its airport facilities revenue bonds in the principal amount of $150,000,000 designated "Public Finance Authority Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026" (the "**Series 2026 Bonds**"), the proceeds of which will be used to: (i) finance or refinance, directly or indirectly, all or a portion of the projects described in Exhibit C to the Trust Indenture (collectively, the "**2026 Project**"), (ii) fund the deposit to the Debt Service Reserve Fund for the Series 2026 Bonds, (iii) pay capitalized interest on the Series 2026 Bonds, and (iv) pay the costs of issuance of the Series 2026 Bonds;

WHEREAS, the facilities comprising the 2026 Project are located within the territorial limits of the political subdivisions listed on Schedule I hereto (the "**Project Jurisdictions**"), which political subdivisions have approved the financing of the respective facilities located therein by the issuance of the Series 2026 Bonds;

WHEREAS, based on representations of the Borrower but without independent investigation, the Issuer has found and determined that the financing and refinancing of the 2026 Project will promote significant economic, cultural and community development opportunities, including the creation or retention of employment, the stimulation of economic activity and the promotion of improvements in the health, safety and welfare of persons living and working in the Project Jurisdictions and nearby communities;

WHEREAS, the Issuer has issued the Series 2026 Bonds pursuant to a Trust Indenture dated as of January 1, 2026 (the "**Trust Indenture**"), between the Issuer and UMB Bank, N.A., as bond trustee (the "**Bond Trustee**");

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WHEREAS, the Issuer is authorized, by a Bond Resolution adopted by its Board of Directors (as amended, the "**Series 2026 Bond Resolution**") to issue the Series 2026 Bonds and loan the proceeds of the Series 2026 Bonds to the Borrower pursuant to this Loan Agreement, which specifies the terms and conditions of a loan by the Issuer to the Borrower of the proceeds of the Series 2026 Bonds to provide for financing of the 2026 Project and of the payment by the Borrower to the Issuer of amounts sufficient for the payment of the principal of, premium, if any, or interest on the Bonds and costs incidental thereto;

WHEREAS, the Issuer and the Borrower have each duly authorized the execution, delivery and performance of this Loan Agreement;

NOW, THEREFORE, in consideration of the premises and of the mutual representations, covenants and agreements herein set forth, the Issuer and the Borrower, each binding itself and its successors and assigns, do mutually promise, covenant and agree as follows (provided that in the performance of the agreement of the Issuer herein contained, any obligation it may incur for the payment of money shall not constitute an indebtedness or other liability of the State of Wisconsin or of a political subdivision of the State of Wisconsin, except the Issuer, but any such obligation shall be a special limited obligation payable solely out of Trust Estate):

**ARTICLE I**<br> **<u>DEFINITIONS AND INTERPRETATION</u>**

Section 1.1. <u>Definitions</u>. For the purposes of this Loan Agreement, the following words and terms shall have the respective meanings set forth as follows, and any capitalized word or term used but not defined herein is used as defined in the Trust Indenture:

"**Authorized Representative**" means, in the case of the Borrower, any manager, the chief executive officer, the president, the chief financial officer, treasurer, the chief legal officer, the secretary, vice president or any other authorized designee of the managers of the Borrower, and when used with reference to any act or document of the Borrower, also means any other person authorized to perform the act or execute the document on behalf of the Borrower.

"**Bond**" or "**Bonds**" means the Series 2026 Bonds and any Additional Bonds.

"**Closing Date**" means the date of issuance of the Series 2026 Bonds.

"**Custodian**" means UMB Bank, N.A., and is successors and assigns, as custodian of the 2026 Bond Surplus Cash Flow Account established pursuant to the SKY IV Guaranty and that certain Account Control Agreement, of even date herewith, by and among SKY IV, the Custodian and the Trustee.

"**Drawdown Note Agreement**" means Draw Down Note Purchase and Continuing Covenant Agreement, dated as of September 4, 2025, as amended from time to time, by and among Sky Harbour Capital II LLC and the other borrowers party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, sole bookrunner and sole lead arranger.

"**Event of Default**" means an Event of Default as defined in Section 5.1 hereof.

------

"**Extraordinary Services**" and "**Extraordinary Expenses**" means all services rendered or all fees and expenses incurred, as applicable, by the Bond Trustee under the Trust Indenture other than Ordinary Services or Ordinary Expenses, as applicable.

"**Guarantors**" means, collectively, the Parent Guarantor and SKY IV.

"**Indemnified Parties**" shall have the meaning set forth in Section 7.11 hereof.

"**Investment Proceeds**" shall have the meaning ascribed thereto in the applicable Treasury regulations.

"**Issuance Costs**" means costs incurred by or on behalf of the Borrower in connection with the issuance of the Bonds by the Issuer.

"**Issuer Indemnified Person**" means, collectively, (i) the Sponsors, (ii) the Members and (iii) each and all of the Issuer's, Sponsors' and the Members' respective past, present and future directors, board members, governing members, trustees, commissioners, elected or appointed officials, officers, employees, Authorized Signatories, attorneys, contractors, subcontractors, agents and advisers (including, without limitation, counsel and financial advisers) and each of their respective heirs, successors and assigns.

"**Issuer**'**s Annual Fee**" means the Issuer's annual administration fee determined and payable in the amounts and at the times specified in Section 3.3 hereof.

"**Material Adverse Effect**" shall mean (a) a material adverse change in the financial condition of the Borrower; or (b) any event or occurrence of whatever nature which would materially and adversely change (i) the Borrower's ability to perform its obligations under any Borrower Financing Document; or (ii) the Bond Trustee's security interests in the security pledged thereunder.

"**Member**" means the parties to the Joint Exercise Agreement and any political subdivision that becomes a member of the Issuer pursuant to the Joint Exercise Agreement.

"**Net Bond Proceeds**" shall have the meaning ascribed to such term in the Code.

"**Nonpurpose Investment**" shall have the meaning ascribed to such term in the Code.

"**Ordinary Services**" and "**Ordinary Expenses**" means those services normally rendered or those fees and expenses normally incurred, as applicable, by a trustee under instruments similar to the Trust Indenture prior to the occurrence of an event of default, including without limitation, fees and expenses of the Bond Trustee as Paying Agent and bond registrar, and as custodian of the Funds under the Trust Indenture.

"**Parent Guaranty**" means the Guaranty, dated as of the Closing Date, by Sky Harbour LLC (the "**Parent Guarantor**") in favor of the Bond Trustee, as supplemented and amended from time to time.

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"**Person**" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof.

"**Pledge and Security Agreement**" means the Pledge and Security Agreement, dated as of the Closing Date, by Sky Harbour Holdings IV LLC in favor of the Bond Trustee, as supplemented and amended from time to time.

"**Proceeds**" means the Sale Proceeds and Investment Proceeds of the Series 2026 Bonds.

"**Project Costs**" means the cost of acquisition, construction, reconstruction, renovation, rehabilitation, improvement and expansion of a Project, including the cost of the acquisition of all land, rights-of-way, property rights, leasehold interests, easements and interests, the cost of all machinery and equipment, financing charges, interest prior to and during construction and for one year after completion of construction whether or not capitalized, necessary reserve funds, cost of estimates and of engineering and legal services, plans, specifications, surveys, estimates of cost and of revenue, other expenses necessary or incident to determining the feasibility and practicability of acquiring, constructing, reconstructing, improving and expanding the facilities of a Project, administrative expense and such other expense as may be necessary or incident to the acquisition, construction, reconstruction, improvement and expansion thereof, the placing of the same in operation and the financing or refinancing of a Project, including the refunding of any outstanding obligations, mortgages or advances issued, made or given by any Person for any of the aforementioned costs, and any other cost permitted to be paid out of proceeds of the Bonds by the Act; provided, however, that Issuance Costs are not Project Costs.

"**Sale Proceeds**" means all amounts already or constructively received from the sale of the Series 2026 Bonds, including amounts used to pay underwriter's discount or compensation.

"**Security Documents**" means, collectively, the SKY IV Guaranty, the Parent Guaranty, and the Pledge and Security Agreement.

"**SKY IV Guaranty**" means the Guaranty, dated as of the Closing Date, by Sky Harbour Holdings IV LLC ("**SKY IV**") in favor of the Bond Trustee, as supplemented and amended from time to time.

"**Sponsor**" means the National League of Cities, the National Association of Counties, the Wisconsin Counties Association, the League of Wisconsin Municipalities, and any other Person that is identified by the Issuer as an organization sponsoring the Issuer.

Section 1.2. <u>Interpretation</u>. In this Loan Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The terms "**hereby**", "**hereof**', "**hereto**", "**herein**", "**hereunder**" and any similar terms, as used in this Loan Agreement, refer to this Loan Agreement, and the term "**hereafter**" means after, and the term "**heretofore**" means before, the date of this Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Words of the masculine gender mean and include correlative words of the feminine and neuter genders and words importing the singular number mean and include the plural number and vice versa.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Words importing persons include firms, associations, partnerships (including limited partnerships), trusts, corporations and other legal entities, including public bodies, as well as natural persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any headings preceding the texts of the several Articles and Sections of this Loan Agreement, and any table of contents appended to copies hereof, shall be solely for convenience of reference and shall not constitute a part of this Loan Agreement, nor shall they affect its meaning, construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Nothing contained in this Loan Agreement shall be construed to cause the Borrower to become the agent for the Issuer or the Bond Trustee for any purpose whatsoever, nor shall the Issuer or the Bond Trustee be responsible for any shortage, discrepancy, damage, loss or destruction of any part of a Project wherever located or for whatever cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All approvals, consents and acceptances required to be given or made by any person or party hereunder shall be at the reasonable discretion of the party whose approval, consent or acceptance is required, except to the extent otherwise specified herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All notices to be given hereunder shall be given in writing within a reasonable time unless otherwise specifically provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This Loan Agreement shall be governed by and construed in accordance with the applicable laws of the State of Wisconsin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If any provision of this Loan Agreement shall be ruled invalid by any court of competent jurisdiction, the invalidity of such provision shall not affect any of the remaining provisions hereof.

**ARTICLE II**<br> **<u>REPRESENTATIONS AND WARRANTIES</u>**

Section 2.1. <u>Representations by the Issuer</u>. The Issuer represents that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Issuer is a joint powers commission under the Act, the "commission" under Section 66.0304 of the Wisconsin Statutes, and a unit of government and body corporate and politic created and validly existing under the laws of the State of Wisconsin; and has full power and authority under the Act to adopt the Series 2026 Bond Resolution approving the Series 2026 Bonds and the Issuer Financing Documents; to enter into, perform its obligations under, and exercise its rights under the Issuer Financing Documents; and when executed and delivered by the respective parties thereto, the Issuer Financing Documents will constitute the legal, valid and binding obligations of the Issuer enforceable in accordance with their respective terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, arrangement, fraudulent conveyance, moratorium and other laws relating to or affecting creditors' rights, by the application of equitable principles, by the exercise of judicial discretion in appropriate cases and by the limitation on legal remedies against joint powers commissions or governmental units of the State of Wisconsin.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By official action of the Issuer prior to or concurrently herewith, the Issuer has authorized and approved the execution and delivery of the Issuer Financing Documents and the consummation by the Issuer of the transactions contemplated thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the knowledge of the Issuer, there are no actions, suits, proceedings, inquiries, or investigations, at law or in equity, before or by any court, governmental agency, public board or body, pending against the Issuer seeking to restrain or enjoin the sale or issuance of the Series 2026 Bonds, or in any way contesting or affecting any proceedings of the Issuer taken concerning the sale thereof, the pledge or application of any moneys or security provided for the payment of the Bonds, in any way contesting the validity or enforceability of the Issuer Financing Documents or contesting in any way the existence or powers of the Issuer relating to the authorization, issuance and sale of the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution and delivery by the Issuer of the Issuer Financing Documents and compliance with the provisions on the Issuer's part contained therein will neither (i) materially conflict with nor constitute a material breach of or default under any applicable State of Wisconsin or federal law, administrative regulation, judgment, or decree, nor (ii) result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Issuer under the terms of any such applicable State of Wisconsin or federal law, administrative regulation, judgment, or decree, except as provided by the Issuer Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery by the Issuer of the Issuer Financing Documents and compliance with the provisions on the Issuer's part contained therein will neither (i) materially conflict with nor constitute a material breach of or default under any loan agreement, indenture, bond, note, resolution, agreement, or other instrument to which the Issuer is a party or is otherwise subject, nor (ii) result in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Issuer under the terms of any such loan agreement, indenture, bond, note, resolution, agreement, or other instrument to which the Issuer is a party or is otherwise subject, except as provided by the Issuer Financing Documents.

No Issuer Indemnified Person (including any Issuer Indemnified Person who executes any certificate in connection with the Series 2026 Bonds that restates or certifies as to the truth and accuracy thereof) shall be individually liable for the breach by the Issuer of any representation or covenant contained in this Loan Agreement or the Trust Indenture.

Section 2.2. <u>Representations by the Borrower</u>. The Borrower represents and warrants to the Issuer that, as of the date of execution of this Loan Agreement and as of the date of delivery of the Series 2026 Bonds to the initial purchasers thereof (such representations and warranties to survive the issuance of the Series 2026 Bonds and remain operative and in full force and effect regardless of the issuance of the Series 2026 Bonds or any investigations by or on behalf of the Issuer or the results thereof):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower has been duly organized, validly exists and is in good standing under the laws of its state of organization, has full legal right, power and authority to enter into this Loan Agreement and the other Borrower Financing Documents, and to carry out and consummate all transactions contemplated hereby and by the Borrower Financing Documents, and by proper organizational action has duly authorized the execution, delivery and performance of this Loan Agreement and the Borrower Financing Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The officers of the Borrower executing this Loan Agreement and the Borrower Financing Documents are duly and properly in office and fully authorized to execute the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Loan Agreement and the Borrower Financing Documents have been duly authorized, executed and delivered by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (i) The rights of the Issuer under this Loan Agreement and the Borrower Financing Documents, when assigned to the Bond Trustee pursuant to the Trust Indenture, will constitute the legal, valid and binding agreements of the Borrower enforceable against the Borrower by the Bond Trustee in accordance with their terms, including, without limitation, by the Bond Trustee for the benefit of the Owners of the Bonds, and (ii) the agreements, obligations, and undertakings of the Borrower in respect of the Unassigned Rights constitute the legal, valid, and binding agreements of the Borrower enforceable against the Borrower (A) by the Issuer in its own right, or (B) in the case of the rights of any Issuer Indemnified Person (including, without limitation, the right of any Issuer Indemnified Person to indemnification and immunity from liability), by such Issuer Indemnified Person in his, her or its own right in accordance with their respective terms; except in each case as enforcement may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally, by the application of equitable principles regardless of whether enforcement is sought in a proceeding at law or in equity and by public policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The execution and delivery of this Loan Agreement and the Borrower Financing Documents, the consummation of the transactions herein and therein contemplated and the fulfillment of or compliance with the terms and conditions hereof and thereof, will not conflict with or constitute a violation or breach of or default (with due notice or the passage of time or both) under the organizational documents of the Borrower, any applicable law or administrative rule or regulation, or any applicable court or administrative decree or order, or any trust indenture, mortgage, deed of trust, loan agreement, lease, contract or other agreement or instrument to which the Borrower is a party or by which it or its properties are otherwise subject or bound, or result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Borrower, which conflict, violation, breach, default, lien, charge or encumbrance might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Loan Agreement or the Borrower Financing Documents, or the financial condition, assets, properties or operations of the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No consent or approval of any bond trustee or holder of any indebtedness of the Borrower or any guarantor of indebtedness of or other provider of credit or liquidity of or to the Borrower, and no consent, permission, authorization, order or license of, or filing or registration with, any governmental authority (except with respect to any state securities or "blue sky" laws) is necessary in connection with the execution and delivery of this Loan Agreement or the Borrower Financing Documents, or the consummation of any transaction herein or therein contemplated, or the fulfillment of or compliance with the terms and conditions hereof or thereof, except as have been obtained or made and as are in full force and effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) There is no action, suit, proceeding, inquiry or investigation, before or by any court or federal, state, municipal or other governmental authority, pending, or to the knowledge of the Borrower, after reasonable investigation, threatened, against or affecting the Borrower or the assets, properties or operations of the Borrower which, if determined adversely to the Borrower or its interests, would have a material adverse effect upon the consummation of the transactions contemplated by, or the validity of, this Loan Agreement or the Borrower Financing Documents, or upon the financial condition, assets, properties or operations of the Borrower, and the Borrower is not in default (and no event has occurred and is continuing which with the giving of notice or the passage of time or both could constitute a default) with respect to any order or decree of any court or any order, regulation or demand of any federal, state, municipal or other governmental authority, which default might have consequences that would materially and adversely affect the consummation of the transactions contemplated by this Loan Agreement or the Borrower Financing Documents, or the financial condition, assets, properties or operations of the Borrower. All tax returns (federal, state and local) required to be filed by or on behalf of the Borrower have been filed, and all taxes shown thereon to be due, including interest and penalties, except such, if any, as are being actively contested by the Borrower in good faith, have been paid or adequate reserves have been made for the payment thereof which reserves, if any, are reflected in the audited financial statements described therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No written information, exhibit or report furnished to the Issuer by the Borrower in connection with the Borrower's application for financing or by the Borrower or its representatives in connection with the negotiation of this Loan Agreement or the Borrower Financing Documents, regardless of whether the Issuer is a party thereto (including, without limitation, any financial statements, if any, whether audited or unaudited, and any other financial information provided in connection therewith) contains any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the representation and warranty in this Section 2.2(h) is made only to the Issuer and may not be relied upon by any other Person.

**ARTICLE III**<br> **<u>THE LOAN</u>**

Section 3.1. <u>Loan Clauses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the conditions and in accordance with the terms of this Loan Agreement, the Issuer agrees (i) to issue the Series 2026 Bonds and cause the Bond Trustee to deposit such amounts in accordance with the terms of the Trust Indenture and (ii) to loan the proceeds of the Series 2026 Bonds to the Borrower in exchange for loan payments equal to the principal and interest due on the Bonds on each Interest Payment Date and Principal Payment Date. Concurrently, with the sale of the Series 2026 Bonds and to further evidence and secure the Borrower's obligation to make loan payments under this Loan Agreement, the Borrower has executed and delivered the Borrower Financing Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The loan of the proceeds of the Series 2026 Bonds (the "Loan") shall be made available at the time of delivery of the Series 2026 Bonds and receipt of payment therefor by the Issuer against receipt by the Bond Trustee of this Loan Agreement duly executed and delivered to evidence the pecuniary indebtedness of the Borrower hereunder and the security interest of the Bond Trustee in the Trust Estate pledged under the Trust Indenture. As and for the Loan, the Issuer shall apply the proceeds of the Series 2026 Bonds as provided in the Trust Indenture on the terms and conditions therein prescribed. The Borrower agrees the proceeds of the Series 2026 Bonds will be applied, directly or indirectly, to a portion of the costs of the 2026 Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower hereby agrees to pay or cause to be paid to the Debt Service Fund, or before each payment date, a sum equal to the payments due on the Bonds on such payment date, less amounts already on deposit in the Debt Service Fund, if any, and available for that purpose. On the Business Day immediately prior to any date on which principal, Purchase Price or Redemption Price of, or interest on, the Bonds is due, if insufficient moneys are then on deposit in the Debt Service Fund and available therefor, the Borrower shall, prior to 10:00 a.m. New York City time on such date, pay to the Bond Trustee for deposit in the Debt Service Fund the amount necessary (in immediately available funds, as necessary) for the payment of such principal, interest, and premium, if any, due on such date. In addition, the Borrower shall pay to the Bond Trustee, as and when the same shall become due, all other amounts due under the General Financing Documents, together with interest thereon at the then applicable rate as set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower shall have the option to prepay its payment obligations hereunder in whole or in part at the times and in the manner provided in Article VI hereof and in accordance with the Trust Indenture. The Borrower hereby agrees to prepay their payment obligations hereunder in the amount required to effect a redemption (at the applicable Redemption Price) of the Bonds in whole or in part at the times and in the manner provided in Article VI hereof and in accordance with the Trust Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At its option, to be exercised on or before the forty-fifth (45th) day next preceding the date any Bonds are to be redeemed from mandatory Sinking Fund Payments, provided no Event of Default has occurred and is continuing, the Borrower may deliver to the Bond Trustee Bonds which are subject to mandatory Sinking Fund Payment redemption in an aggregate principal amount not in excess of the principal amount of Bonds to be so redeemed on such date. Each Bond so delivered shall be credited by the Bond Trustee at 100% of the principal amount thereof against the obligation of the Borrower to make the next payment with respect to principal on the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If the Bond Trustee has not received payment by 12:00 p.m., New York City time, on the Business Day prior to the date on which principal, Purchase Price or Redemption Price of or interest on the Bonds is due, the Bond Trustee shall immediately make oral and facsimile demand to the Borrower for such amount with overnight confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) If the amounts in the applicable account of the Debt Service Reserve Fund are not at the level of the applicable Debt Service Reserve Fund Requirement, the Borrower shall on or before the fifteenth (15<sup>th</sup>) day of the month next following the date the Borrower is notified of such deficiency, deposit with the Bond Trustee sufficient moneys to meet the applicable Debt Service Reserve Fund Requirement under the Trust Indenture. No withdrawal from the Debt Service Reserve Fund to make up for a deficiency in the Debt Service Fund shall be deemed to cure any failure by the Borrower to pay or cause to be paid the amounts required by Section 3.1(c hereof when due.

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Section 3.2. <u>Other Amounts Payable and Other Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower hereby further expressly agrees to pay an amount equal to (i) the initial and annual fees of the Bond Trustee for the Ordinary Services of the Bond Trustee rendered and its Ordinary Expenses incurred under the Trust Indenture, including its reasonable fees and expenses as registrar and in connection with preparation of new Bonds upon exchanges or transfers, and the reasonable fees and expenses of Bond Trustee's counsel, (ii) the reasonable fees and expenses of the Bond Trustee, and any Paying Agents on the Bonds for acting as such as provided in the Trust Indenture, including the reasonable fees and expenses of its and their counsel, (iii) the reasonable fees and expenses of the Bond Trustee for Extraordinary Services rendered by it and Extraordinary Expenses incurred by it under the Trust Indenture, including reasonable counsel fees and expenses, (iv) the fees and expenses of the Issuer, including the fees and expenses of its counsel, incurred by the Issuer as a result of an Event of Default or otherwise enforcing this Loan Agreement, and (v) any other sums required to be paid by the Borrower under the terms of the Trust Indenture. Scheduled fees and expenses shall be paid on or before the scheduled due date. Unscheduled fees and expenses will be paid on the specified due date, or if the due date is fewer than 30 days from receipt, within 30 days of receipt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower agrees to pay or cause to be paid all amounts payable by it in connection with compliance with Section 148 of the Code, including any expenses of the Issuer incurred in connection with rebate compliance pursuant to the Trust Indenture at the time and in the manner therein provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower agrees to fund, replenish and maintain all amounts required to be funded, replenished and maintained in the Funds and Accounts established in and as required by Article V of the Trust Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower agrees to perform all obligations required to be performed by them under the Trust Indenture in accordance with its terms.

Section 3.3. <u>Additional Payments</u>. In addition to the payments set forth in Section 3.1 and 3.2 hereof, the Borrower shall also pay to the Issuer or to the Bond Trustee, as the case may be, "**Additional Payments**," as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All taxes and assessments of any type or character charged to the Issuer or to the Bond Trustee affecting the amount available to the Issuer or the Bond Trustee from payments to be received hereunder or in any way arising due to the transactions contemplated hereby (including taxes and assessments assessed or levied by any public agency or governmental authority of whatsoever character having power to levy taxes or assessments) but excluding franchise taxes based upon the capital and/or income of the Bond Trustee and taxes based upon or measured by the net income of the Bond Trustee; provided, however, that the Borrower shall have the right to protest any such taxes or assessments and to require the Issuer or the Bond Trustee, at the Borrower's expense, to protest and contest any such taxes or assessments levied upon them and that the Borrower shall have the right to withhold payment of any such taxes or assessments pending disposition of any such protest or contest unless such withholding, protest or contest would adversely affect the rights or interests of the Issuer or the Bond Trustee;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The fees and expenses of such accountants, consultants, attorneys and other experts as may be engaged by the Issuer or the Bond Trustee in connection with the performance of its duties hereunder or in the Trust Indenture and to prepare audits, financial statements, reports, opinions or provide such other services required under this Loan Agreement, the Borrower Financing Documents or the Trust Indenture, including, but not limited to, any audit or inquiry by the Internal Revenue Service or any other governmental body; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The fees and expenses of the Issuer, including the Issuer's Annual Fee, or any agent or attorney selected by the Issuer to act on its behalf in connection with this Loan Agreement, the Borrower Financing Documents, the Bonds or the Trust Indenture, including, without limitation, any and all expenses incurred in connection with the authorization, issuance, sale and delivery of any such Bonds or in connection with any litigation, investigation, inquiry or other proceeding which may at any time be instituted involving this Loan Agreement, the Borrower Financing Documents, the Bonds or the Trust Indenture or any of the other documents contemplated thereby, or in connection with the reasonable supervision or inspection of the Borrower, its properties, assets or operations or otherwise in connection with the administration of this Loan Agreement and the Borrower Financing Documents.

Such Additional Payments shall be billed to the Borrower by the Issuer or the Bond Trustee from time to time, together with a statement certifying that the amount billed has been incurred or paid by the Issuer or the Bond Trustee for one or more of the above items. After such a demand, amounts so billed shall be paid by the Borrower within thirty (30) days after receipt of the bill by the Borrower. Notwithstanding the foregoing, the Issuer may, but shall not be required to, submit a bill to the Borrower for payment of the Issuer's Annual Fee. The Issuer's Annual Fee shall be paid in semiannual installments on the six (6) month anniversary of the Closing Date and subsequently on the same day every sixth (6th) month thereafter (or such other semiannual dates as are specified by the Issuer). The amount of each semiannual payment shall be determined by multiplying (i) the principal amount of the Series 2026 Bonds Outstanding as of the last day of the calendar month preceding the installment payment due date by (ii) 0.02 percent (2 basis points) by (iii) one half (1/2). If applicable, the amount of the Issuer's Annual Fee for the first and last periods shall be prorated. Any invoice furnished to the Borrower by the Issuer or the Bond Trustee pursuant to this Section 3.3 shall be deemed to constitute a written notice under Section 5.1(b) sufficient to cause the 30-day period specified in said Section 5.1(b) to commence.

Section 3.4. <u>Manner of Payment</u>. The payments provided for in Section 3.1 hereof shall be made by any reasonable method providing immediately available funds at the time and place of payment directly to the Bond Trustee for the account of the Issuer and shall be deposited in the Debt Service Fund or the Debt Service Reserve Fund, as appropriate. The Additional Payments provided for in Sections 3.2 and 3.3 shall be made in the same manner directly to the entitled party or to the Bond Trustee for its own use or disbursement to the Paying Agents.

Section 3.5. <u>Obligation Unconditional</u>. The obligations of the Borrower under this Loan Agreement and the other Borrower Financing Documents shall be absolute and unconditional, irrespective of any defense or any rights of setoff, recoupment or counterclaim it might otherwise have against the Issuer or the Bond Trustee. The Borrower will not suspend or discontinue any such payment or terminate this Loan Agreement (other than in the manner provided for hereunder) for any cause, including, without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, failure of title, or commercial frustration of purpose, or any damage to or destruction of the Project, or the taking by eminent domain of title to or the right of temporary use of all or any part of the Project, or any change in the tax or other laws of the United States, the State of Wisconsin or any political subdivision of either thereof; or any failure of the Issuer or the Bond Trustee to perform and observe any agreement or covenant, whether expressed or implied, or any duty, liability or obligation arising out of or connected with the Borrower Financing Documents.

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Section 3.6. <u>Usury</u>. Notwithstanding any provision of the General Financing Documents to the contrary, it is hereby agreed by and between the Issuer and the Borrower that in no event (including without limitation the acceleration of maturity of the Bonds or the redemption of the Bonds pursuant to the General Financing Documents) shall the amount of loan payments contracted for, charged, received, reserved or taken in connection with the loan arrangements made hereunder, if and to the extent such loan payments (or a portion thereof) are treated as interest for purposes of state law ("**Interest**"), exceed the amount of interest which could have been contracted for, charged, reserved, received or taken at the Maximum Rate. For purposes of this Section, to the maximum extent permitted by law, the rate of interest attributable to loan payments shall be determined by: (i) spreading payments over the term of this loan payments; (ii) if appropriate, characterizing payments as a premium for the privilege of making an optional prepayment of an obligation; and (iii) giving effect to the provisions of any other General Financing Document which require the cancellation or refunding of Interest. Excess interest, if any after the application of the foregoing provisions, provided for in the General Financing Documents shall be cancelled automatically as of the date of such acceleration, redemption or purchase or, if theretofore paid, shall be credited to future loan payments or if all loan payments have been, or would thereby be, paid in full, refunded to the Borrower. However, in lieu of such cancellation or refund, the Bond Trustee shall (if requested by the holders of all of the Outstanding Bonds affected), to the extent permitted by applicable law, delay the date on which any payment is due hereunder or under any of the General Financing Documents until the earliest Business Day that will result in the payment of Interest at a rate not in excess of the Maximum Rate.

Section 3.7. <u>Issuance of Additional Bonds</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Borrower is not in default hereunder or under the Borrower Financing Documents, the Issuer may, in its absolute discretion, on written request of an Authorized Representative of the Borrower, from time to time, issue additional Bonds, in aggregate amounts as requested by the Borrower, but only for the purposes and upon the terms and conditions stated herein, in the Trust Indenture and in the Act. Additional Bonds shall be issued only for the purposes permitted in Article II of the Trust Indenture. In each case, the costs of the issuance and sale of the Additional Bonds and capitalized interest for any construction period and other costs reasonably related to the financing as shall be agreed upon by the Borrower and the Issuer shall be included in the cost thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Additional Bonds shall be issued unless (1) the terms of such Additional Bonds, the purchase price to be paid therefor and the manner in which the proceeds therefrom are to be disbursed shall have been approved in writing by the Borrower and the Issuer, (2) the Borrower and the Issuer, as applicable, shall have entered into supplements to the General Financing Documents reaffirming the representations and covenants of the Issuer and the Borrower therein contained, describing the completion, restoration, additions, extensions, improvements or facilities, if any, to be acquired and constructed or performed and making provisions for the conveyance, transfer and securing of such real property or interests therein as may be necessary or required therefor, and adjusting the aggregate amount payable hereunder to an amount sufficient to pay, as and when the same matures and becomes due, the principal or Redemption Price, if any, of and interest on such Additional Bonds and other amounts due under the General Financing Documents, and (3) the Issuer and the Bond Trustee shall have entered into a Supplemental Indenture authorizing the issuance of such Additional Bonds and setting forth the terms thereof and describing or otherwise identifying any real or personal property to be secured by the Trust Indenture in connection with the issuance of such Additional Bonds, and the Issuer shall have otherwise complied with the provisions of the Trust Indenture and the Act with respect to the issuance of such Additional Bonds.

Section 3.8. <u>Effective Date and Term</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Loan Agreement shall become effective upon its execution and delivery by the parties hereto, shall remain in full force from such date and, subject to the provisions hereof (including particularly Articles V and VI), and shall expire on such date as the Trust Indenture shall be discharged and satisfied in accordance with the provisions of Article 12 thereof. The Borrower's obligations under Sections 3.13, 5.3, 7.10 and 7.11 hereof, however, shall survive the expiration of this Loan Agreement in accordance with the provisions of said Sections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Within sixty (60) days of such expiration, the Issuer (subject to Section 7.13 hereof) shall deliver to the Borrower any documents and take or cause the Bond Trustee, at the Borrower's expense, to take any such reasonable actions as may be necessary to effect the cancellation, release and satisfaction of the Trust Indenture and the General Financing Documents.

Section 3.9. <u>Security for Borrower</u><u>'</u><u>s Performance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Loan Agreement represents the obligation of the Borrower. The full faith and credit of the Borrower is pledged to pay all sums due or to become due hereunder. The obligations hereunder are secured by the terms and provisions of the Security Documents.

Section 3.10. <u>Special Services Covenant</u>. The Borrower shall cause the 2026 Project to continue to be operated for its original intended purpose as long as any Series 2026 Bonds remain Outstanding; provided, however, the Issuer, upon review of such facts as it deems relevant, may, from time to time, allow the Borrower to provide alternative services which provide public benefit to the applicable Project Jurisdiction and its residents, or deem this special services covenant to be satisfied in whole or in part.

Section 3.11. <u>Agreement to Construct 2026 Project; Completion Certificate</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall cause the 2026 Project to be acquired, constructed and improved with due diligence and pursuant to the requirements of the applicable laws of the State of Wisconsin in all material respects.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall deliver to the Bond Trustee within 90 days after the final completion of each component of the 2026 Project a certificate (the "**Completion Certificate**") of the Borrower to the effect that:

(i) Such component of the 2026 Project has been completed substantially in accordance with the plans and specifications for such component of the 2026 Project prepared by an architect, as then amended, and the date of completion;

(ii) The cost of such component of the 2026 Project has been fully paid for and no claim or claims exist against the Borrower or against the 2026 Project out of which a lien based on furnishing labor or material exists or might ripen; provided, however, there may be excepted from the foregoing statement any claim or claims out of which a lien exists or might ripen in the event that the Borrower intends to contest such claim or claims in accordance with this Loan Agreement, in which event such claim or claims shall be described; provided, further, that it shall be stated that moneys are on deposit in the Series 2026 Construction Account sufficient to make payment of the full amount that might in any event be payable in order to satisfy such claim or claims; provided, further, that there may also be excepted from the foregoing statement any claim that has been insured over pursuant to an endorsement to any title insurance;

(iii) All permits, certificates and licenses necessary for the occupancy and use of such component of the 2026 Project have been obtained and are in full force and effect; and

(iv) Indicating if such Completion Certificate is for the final component of the 2026 Project (the "**Final Completion Certificate**").

Section 3.12. <u>Requisition</u>. The Borrower shall be entitled to disbursements of moneys in the Series 2026 Construction Account to pay, directly or indirectly, all or a portion of the costs related to the 2026 Project, including through contributions to one or more of its affiliates to pay such costs. Disbursements from the Series 2026 Construction Account shall be made (A) with respect to the Addison Phase II Project (as described in Exhibit B to the Bond Indenture), (i) upon the Bond Trustee's receipt of a requisition in the form attached hereto as <u>Exhibit A</u>, and (ii) so long as an Event of Default under this Loan Agreement or any of the other General Financing Documents shall not have occurred and be continuing unless such Event of Default shall have been waived pursuant to the terms hereof, and (B) (i) with respect to any other component of the 2026 Project, only upon such component becoming a Borrowing Base Project (as defined in the Drawdown Note Agreement) as certified by the Borrower to the Bond Trustee, (ii) in the amount up to the total amount reasonably expected by the Borrower to be necessary to complete such component of the 2026 Project, taking into account the other available sources of funding therefor, as certified by the Borrower to the Bond Trustee, (iii) upon the Bond Trustee's receipt of a requisition in the form attached hereto as <u>Exhibit A</u>, and (iv) so long as an Event of Default under this Loan Agreement or any of the other General Financing Documents shall not have occurred and be continuing unless such Event of Default shall have been waived pursuant to the terms hereof. The Bond Trustee shall keep a record of all requisitions submitted by the Borrower.

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Section 3.13. <u>Borrower Required to Pay Costs of the 2026 Project if Construction Accounts Insufficient</u>. If the moneys in the Series 2026 Construction Account and the proceeds of the Series 2026 Bonds available for payment of the costs of the 2026 Project (collectively, the "**Available Series 2026 Construction Proceeds**") are not sufficient to pay the costs thereof in full, the Borrower agrees to cause one or more of its affiliates to complete the acquisition, construction, renovation, equipping and installation of the 2026 Project and to pay all that portion of costs of the 2026 Project as may be in excess of the Available Series 2026 Construction Proceeds. The Issuer does not make any warranty, either express or implied, that the Available Series 2026 Construction Proceeds will be sufficient to pay all the costs which will be incurred in that connection. The Borrower agrees that if, after exhaustion of the Available Series 2026 Construction Proceeds, the Borrower pays or causes to be paid any portion of the costs of the 2026 Project pursuant to the provisions of this Section, it will not be entitled to any reimbursement therefor from the Issuer or from the Bond Trustee or from the owners of any of the Series 2026 Bonds, nor will it be entitled to any diminution of the loan payments payable hereunder. The obligation of the Borrower to complete the construction of the 2026 Project will survive any termination of this Loan Agreement.

**ARTICLE IV**<br> **<u>COVENANTS OF THE BORROWER</u>**

Section 4.1. <u>Compliance with Bond Indenture</u>. The Borrower covenants and agrees that, during the term of this Loan Agreement, it will at all times comply in all material respects with the requirements of the Bond Indenture.

Section 4.2. <u>Continuing Disclosure</u>. The Borrower hereby covenants and agrees that it will comply with and carry out all of the provisions of the Continuing Disclosure Agreement, if and to the extent applicable and required. Notwithstanding any other provision of this Loan Agreement to the contrary, failure of the Borrower to comply with the Continuing Disclosure Agreement shall not be considered an Event of Default; however, the Bond Trustee may (and, at the request of the holders of at least 25% aggregate principal amount in Outstanding Bonds shall, but only to the extent the Bond Trustee has been tendered funds in an amount satisfactory to it or it has been otherwise indemnified from and against any loss, liability, cost or expense, including without limitation, fees and expense of its counsel and agents and additional fees and charges of the Bond Trustee) or any Bondholder may, take such actions as may be necessary and appropriate, including seeking specific performance by court order, to cause the Borrower to comply with their obligations under this Section.

Section 4.3. <u>Tax-Exempt Bonds Not to Become Taxable</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower covenants and agrees that its use of the Proceeds of the Series 2026 Bonds will at all times satisfy the requirements of the Tax Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will cause such use of the proceeds of the Series 2026 Bonds and all other funds held by the Bond Trustee under the Trust Indenture or otherwise allocable to the Series 2026 Bonds, restrict the investment of such proceeds and other funds, and take such other and further action as may be required so that the Series 2026 Bonds will not constitute "arbitrage bonds" under Section 148(a) of the Code and the Regulations. In particular, but without limitation, the Borrower agrees to instruct the Bond Trustee with respect to investments in accordance with Section 5.4 of the Trust Indenture. The Borrower agrees to pay all of the fees and expenses of a nationally recognized bond counsel, a certified public accountant and any other necessary consultant employed by such Borrower in connection with any of the requirements imposed by Section 5.4 of the Trust Indenture.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower shall comply and shall cause its affiliates to comply with the requirements of Section 148 of the Code as they relate to the Series 2026 Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Borrower agrees to provide to the Rebate Analyst, at such time as required by the Bond Trustee, all information reasonably required by the Rebate Analyst with respect to Nonpurpose Investments held under the Trust Indenture or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Borrower covenants and agrees that the average maturity of the Series 2026 Bonds, taking into account the issue price of the various maturities of the Series 2026 Bonds, will not exceed 120 percent of the reasonably expected economic life of the 2026 Project, taking into account the respective cost of each item composing the 2026 Project. For purposes of the preceding sentence, the reasonably expected economic life of the 2026 Project shall be determined as of the later of (i) the date on which the Series 2026 Bonds are issued or (ii) the date on which the 2026 Project is placed in service (or expected to be placed in service). In addition, land shall not be taken into account in determining the reasonably expected economic life of the 2026 Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Borrower covenants and agrees not to take any action, or knowingly omit to take any action within its control, that, if taken or omitted, respectively, would cause the Series 2026 Bonds to be "federally guaranteed" within the meaning of section 149(b) of the Code and applicable regulations thereunder, except as permitted by section 149(b)(3) of the Code and such regulations.

Section 4.4. <u>Permitted Indebtedness</u>. The Borrower shall not incur any additional Indebtedness so long as the Series 2026 Bonds are outstanding, other than Indebtedness incurred for the purpose of (i) refinancing, repurchasing or refunding the Series 2026 Bonds, (ii) paying costs of issuance in connection therewith, and (iii) funding any reserves or capitalized interest accounts in connection therewith.

Section 4.5. <u>Further Assurances and Corrective Instruments</u>. The Issuer (subject to Section 7.13 hereof) and the Borrower agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Project or for carrying out the intention of or facilitating the performance of this Loan Agreement.

Section 4.6. <u>Covenant by Borrower as to Compliance with Trust Indenture</u>. The Borrower covenants and agrees that it will comply with the provisions of the Trust Indenture with respect to the Borrower and that the Bond Trustee and the Bondholders shall have the power and authority provided in the Trust Indenture. The Borrower further agrees to aid in the furnishing to the Issuer or the Bond Trustee of opinions that may be required under the Trust Indenture. The Borrower covenants and agrees that the Bond Trustee shall be entitled to and shall have all the rights, including the right to enforce against such Borrower the provisions of the Borrower Financing Documents, pertaining to the Bond Trustee notwithstanding the fact that the Bond Trustee is not a party to the Borrower Financing Documents.

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Section 4.7. <u>Assignment of Agreement</u>. The Borrower may not assign its rights, interests or obligations hereunder or under the Borrower Financing Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Issuer agrees that it will not knowingly assign or transfer any of the Borrower Financing Documents or the revenues and other receipts, funds and moneys to be received thereunder during the Term except to the Bond Trustee as provided in this Loan Agreement and the Trust Indenture.

**ARTICLE V**<br> **<u>EVENTS OF DEFAULT AND REMEDIES</u>**

Section 5.1. <u>Events of Default</u>.

"**Event of Default**", as used herein, shall mean any of the following events of which a Responsible Officer of the Bond Trustee has received actual written notice (provided that the Bond Trustee shall be deemed to have received written notice with respect to any event specified in subsection (a)), unless in each case cured by the Borrower, whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or come about or be effected by operation of law or pursuant to or in compliance with any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the Borrower shall fail

(i) to make or cause to be made any payment of principal, Redemption Price, Purchase Price or interest when due hereunder; or

(ii) to make any deposit or other payment required to be made to the Bond Trustee hereunder prior to the earlier of (1) the 15th day following the due date of such deposit or payment in accordance with the terms hereof, or (2) the date on which any payment is required to be made by the Bond Trustee on the Bonds from any such amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Parent Guarantor shall fail to comply with Section 3.1(h), (i), (j), (k), (l), (n) or (o) of the Parent Guaranty, or SKY IV shall fail to comply with Section 3.2(a) or (b) or Section 3.3 of the SKY IV Guaranty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the Borrower or any Guarantor shall fail to observe or perform any covenant or agreement made by such party in this Loan Agreement or any Borrower Financing Document and such failure continues for a period of 30 days after written notice of such failure, requiring the same to be remedied, shall have been given by the Bond Trustee or the Issuer (with regards to the Unassigned Rights) to the Borrower or any Guarantor, the giving of which notice shall be at the discretion of the Issuer or the Bond Trustee unless the Bond Trustee is requested in writing to do so by the holders of at least 25% in aggregate principal amount of the Outstanding Bonds; provided, however, that if such observance or performance requires work to be done, actions to be taken, or conditions to be remedied, which by their nature cannot reasonably be done, taken or remedied within such 30-day period but can be done, taken or remedied within a reasonable period of time, no Event of Default shall be deemed to have occurred or to exist if, and so long as, the Borrower or such Guarantor, as applicable, shall commence such work, action or other remedy within such 30-day period and shall diligently and continuously prosecute the same to completion; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an "Event of Default" shall occur under the Drawdown Note Agreement or the Master Trust Indenture (as defined in the Parent Guaranty) and a holder or holders of any obligation issued pursuant thereto or a trustee or trustees under any such agreement or instrument accelerates such obligation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if any warranty, representation, certification, financial statement or other information made or furnished to induce the Issuer to enter into this Loan Agreement or allow any Bonds to be issued, or made or furnished, at any time, in or pursuant to the terms of any Borrower Financing Document or the Borrower shall prove to have been false or misleading in any material respect when made or furnished and shall result in a Material Adverse Effect and, if capable of being cured, such misrepresentation shall continue uncured for thirty (30) or more days from the discovery thereof; provided that if the Borrower commences efforts to cure such misrepresentation within such thirty (30) day period the Borrower may continue to effect such cure of the misrepresentation and such misrepresentation shall not be deemed an Event of Default if the Borrower are diligently pursuing the cure.

Section 5.2. <u>Remedies on Default</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever any Event of Default shall have occurred, the Bond Trustee, or the Issuer where so provided herein, may take any one or more of the following actions:

(i) The obligations of the Borrower hereunder may be accelerated or shall be accelerated in the same manner and subject to the same conditions as specified in Sections 8.1(b) and 8.1(c) of the Trust Indenture and, to the extent any Bond is accelerated.

(ii) The Issuer, without the consent of the Bond Trustee or any Bondholder, may proceed to enforce the obligations of the Borrower to the Issuer in respect of the Unassigned Rights.

(iii) The Bond Trustee may take whatever action at law or in equity it may have to collect the amounts then due and thereafter to become due, or to enforce the performance or observance of the obligations, agreements, and covenants of the Borrower under the Borrower Financing Documents, including, to the extent permitted by applicable law, by mandamus or by the appointment of a receiver in equity with power to charge and collect rents, purchase price payments, and loan payments and to apply the revenues from the Project in accordance with such Borrower Financing Document.

(iv) The Bond Trustee may exercise any and all rights it may have under the General Financing Documents, including, without limitation, the requirement that the Borrower obtain the prior written consent of the Bond Trustee to the taking of any action otherwise permitted by the General Financing Documents.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that any Event of Default or any proceeding taken by the Issuer or by the Bond Trustee thereon shall be waived or determined adversely to the Issuer or the Bond Trustee, then the Event of Default shall be annulled and the Issuer, the Bond Trustee and the Borrower shall be restored to their former rights hereunder, but no such waiver or determination shall extend to any subsequent or other default or impair any right consequent thereon.

Section 5.3. <u>No Duty to Mitigate Damages</u>. Unless otherwise required by law, neither the Issuer, the Bond Trustee nor any Bondholder shall be obligated to do any act whatsoever or exercise any diligence whatsoever to mitigate the damages to the Borrower if an Event of Default shall occur.

Section 5.4. <u>Remedies Cumulative</u>. No remedy herein conferred upon or reserved to the Issuer or the Bond Trustee is intended to be exclusive of any other available remedy or remedies but each and every such remedy shall be cumulative and shall be in addition to every remedy given under this Loan Agreement or now or hereafter existing at law or in equity or by statute. Delay or omission to exercise any right or power accruing upon any default or failure by the Issuer or the Bond Trustee to insist upon the strict performance of any of the covenants and agreements herein set forth or to exercise any rights or remedies upon default by the Borrower hereunder shall not impair any such right or power or be considered or taken as a waiver or relinquishment for the future of the right to insist upon and to enforce, by injunction or other appropriate legal or equitable remedy, strict compliance by the Borrower with all of the covenants and conditions hereof; or of the right to exercise any such rights or remedies, if such default by the Borrower be continued or repeated.

Section 5.5. <u>Notice of Default by Bond Trustee</u>. Upon the Bond Trustee receiving notice or being deemed to have received notice of an Event of Default hereunder in accordance with Section 1.2 and 9.3(h) of the Trust Indenture, the Bond Trustee shall, in accordance with Section 8.10 of Indenture, promptly deliver written notice of the same to the holders and, except to the extent notice of the same has been delivered thereto by another Person (or was sent by such Person) to the Issuer and the Borrower.

**ARTICLE VI**<br> **<u>PREPAYMENT PROVISIONS; CONVERSION</u>**

Section 6.1. <u>Optional and Extraordinary Prepayment</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall have, and is hereby granted, the option to prepay its obligations hereunder as a whole, or in part, at any time by delivering a written notice to the Bond Trustee in accordance with the Trust Indenture, with a copy to the Issuer, setting forth the amount to be prepaid, the amount of Bonds requested to be redeemed with the proceeds of such payment (to the extent authorized by and in the manner required by the Trust Indenture or any Supplemental Indenture authorizing the issuance of such Bonds), and the date on which such Bonds are to be redeemed. Such prepayment must be sufficient to provide moneys for the payment of interest and Redemption Price in accordance with the terms of the Bonds requested to be redeemed with such prepayment and all other amounts then due under the Borrower Financing Documents. In the event of any complete prepayment of the Borrower's obligations hereunder, the Borrower shall, at the time of such prepayment, also pay or provide for the payment of all fees and expenses of the Issuer, the Issuer Indemnified Persons, the Bond Trustee and Paying Agent (including without limitation attorneys' fees and expenses) accrued and to accrue through the final payment of all the Bonds. Any such prepayments shall be applied to the redemption of Bonds in the manner provided in Article VI of the Trust Indenture, and credited against payments due hereunder in the same manner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall be required to prepay their loan payments in whole or in part to the extent and at the times necessary to effect, a mandatory redemption in the manner and at the times required by Article III of the Trust Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower may prepay their loan payments in whole or in part to effect an extraordinary optional redemption to the extent, in the manner and at the times permitted pursuant to the Trust Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In any such case, the loan payment shall be a sum sufficient, together with other funds deposited with the Bond Trustee and available for such purpose, to redeem the Bonds called for the redemption under the Trust Indenture at the applicable Redemption Price, and with respect to any final payment of the Bonds all other amounts due under this Loan Agreement.

Section 6.2. <u>Notice of Prepayment</u>. To exercise any options granted in this Article, or to consummate the acceleration of the loan payments as set forth in this Article, the written notice to the Bond Trustee and the Issuer shall be signed by an Authorized Representative of the Borrower and shall specify therein the date of prepayment, which date shall be not less than ten (10) days nor more than ninety (90) days from the date the notice is received by the Bond Trustee. A duplicate copy of any written notice hereunder shall also be filed with the Issuer by the Borrower.

Section 6.3. <u>Conversion</u>. On any Mandatory Tender Date, the Borrower may elect to convert all or a portion of such Bonds to bear interest at a new Term Rate for a new Term Rate Period or convert all or a portion of such Bonds to bear interest at a Fixed Rate, as set forth in the Bond Indenture.

**ARTICLE VII**<br> **<u>GENERAL</u>**

Section 7.1. <u>Trust Indenture</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Moneys received from the sale of the Bonds and all loan payments made by the Borrower and all other moneys received by the Issuer or the Bond Trustee under the General Financing Documents shall be applied solely and exclusively in the manner and for the purposes expressed and specified in the Trust Indenture and in the Bonds and as provided in this Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower shall have and may exercise all the rights, powers and authority given the Borrower in the Trust Indenture and in the Bonds, and the Trust Indenture and the Bonds shall not be modified, altered or amended in any manner which adversely affects such rights, powers and authority or otherwise adversely affects the Borrower without the prior written consent of the Borrower.

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Section 7.2. <u>Benefit of and Enforcement by Bondholders</u>. The Issuer and the Borrower agree that this Loan Agreement is executed in part to induce the purchase by others of the Bonds and for the further securing of the Bonds, and accordingly that all covenants and agreements on the part of the Issuer and the Borrower as to the amounts payable with respect to the Bonds hereunder are hereby declared to be for the benefit of the holders from time to time of the Bonds and may be enforced as provided in the Trust Indenture on behalf of the Bondholders by the Bond Trustee.

Section 7.3. <u>Amendments</u>. This Loan Agreement may be amended only in accordance with the requirements of the Trust Indenture.

Section 7.4. <u>Notices</u>. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or on the third Business Day after mailed by certified mail, postage prepaid, or trackable overnight delivery, (or if earlier, when received or refused) addressed as follows:

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| | |
|:---|:---|
| Issuer: | PUBLIC FINANCE AUTHORITY |
|  | 22 East Mifflin Street, Suite 900 |
|  | Madison, WI 53703 |
|  | Attention: Scott Carper and Michael LaPierre |
| If to the Borrower: | SKY HARBOUR CAPITAL III LLC |
|  | Hangar M, 136 Tower Road |
|  | Westchester County Airport |
|  | White Plains, NY 10604 |
|  | Attention: Tim Herr |
| If to Bond Trustee: | UMB BANK, N.A. |
|  | 1412 Broadway, Suite 1606 |
|  | New York, NY 10018 |
|  | Attention: ____________________ |

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A duplicate copy of each notice, certificate or other communication given hereunder by either the Issuer or the Borrower to the other shall also be given to the Bond Trustee. The Issuer, the Borrower and the Bond Trustee may, by written notice given hereunder, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent.

Section 7.5. <u>Non-Liability of Issuer</u>. The Issuer shall not be obligated to pay the principal of, premium, if any, or interest on the Bonds or any costs incidental thereto, except from the Trust Estate. Neither the faith and credit nor the taxing power of any Sponsor, any Member, the State of Wisconsin or any other political subdivision or agency thereof or any political subdivision approving the issuance of the Bonds, nor the faith and credit of the Issuer, is pledged to the payment of the principal of, premium, if any, or interest on the Bonds or any costs incidental thereto. The Issuer has no taxing power. The Issuer shall not be directly, indirectly, contingently or otherwise liable for any costs, expenses, losses, damages, claims or actions, of any conceivable kind on any conceivable theory, under or by reason of or in connection with this Loan Agreement, the Bonds or the Bond Indenture, except only to the extent amounts are received for the payment thereof from the Borrower under this Loan Agreement, and except as may result solely from the Issuer's own willful misconduct.

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The Borrower hereby acknowledges that the Issuer's sole source of moneys to repay the Bonds is the Trust Estate, and hereby agrees that if the payments to be made under this Loan Agreement shall ever prove insufficient to pay all principal of, premium, if any, and interest on the Bonds as the same shall become due (whether by maturity, redemption, acceleration or otherwise) or any costs incidental thereto, then upon notice or demand from the Bond Trustee, the Borrower shall pay such amounts as are required from time to time to prevent any deficiency or default in the payment of such principal, premium, if any, or interest, or costs incidental thereto when due including, but not limited to, any deficiency caused by acts, omissions, nonfeasance or malfeasance on the part of the Bond Trustee, the Issuer, the Borrower or any third party, subject to any right of reimbursement from the Bond Trustee, the Issuer or any such third party, as the case may be, therefor.

Section 7.6. <u>Waiver of Personal Liability</u>. No Issuer Indemnified Person or any member, director, officer, agent or employee of the Borrower shall be individually or personally liable for the payment of any principal (or Redemption Price) or interest on the Bonds or costs incidental thereto or any sum hereunder or under the Trust Indenture or be subject to any personal liability or accountability by reason of the execution and delivery of this Loan Agreement, the Trust Indenture, or any other General Financing Document; but nothing herein contained shall relieve any such member, director, officer, agent or employee of the Borrower from the performance of any official duty provided by law or by this Loan Agreement.

Section 7.7. <u>Filing</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Financing statements reflecting the security interest of the Bond Trustee under Section 3.9 hereof and the assignment of such security interests to the Bond Trustee shall be filed by the Borrower in a form which fully complies with the Uniform Commercial Code filing and in such office as may be at the time provided by law as the proper place for the filing of any of the foregoing by the Borrower. Subject to Section 7.7 of the Trust Indenture, continuation statements for the financing statements filed at the time of issuance of the Bonds shall be filed by the Bond Trustee within the time prescribed by the Uniform Commercial Code in order to continue the perfection of such security interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower hereby irrevocably authorize the Bond Trustee at any time and from time to time to file in any Uniform Commercial Code jurisdiction any continuation statements and amendments thereto that (a) indicate the collateral (i) as all assets of the Borrower pledged under this Loan Agreement or words of similar effect, regardless of whether any particular asset comprised in the collateral falls within the scope of Article 9 of the Uniform Commercial Code of the state of organization of the Borrower, or (ii) as being of an equal or lesser scope or with greater detail, and (b) contain any other information required by part 5 of Article 9 of the Uniform Commercial Code of the state of the Borrower's location for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether the Borrower is an organization, the type of organization and any organization identification number issued to the Borrower, and, (ii) in the case of a financing statement filed as a fixture filing or indicating collateral as as-extracted collateral or timber to be cut, a sufficient description of real property to which the collateral relates. The Borrower agrees to furnish any such information to the Bond Trustee promptly upon request. The Borrower also ratifies its authorization for the Bond Trustee to have filed in any Uniform Commercial Code jurisdiction any like initial financing statements or amendments thereto if filed prior to the date hereof

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Section 7.8. <u>Prior Agreements Superseded</u>. This Loan Agreement, together with all agreements executed by the parties concurrently herewith or in conjunction with the sale of the Series 2026 Bonds or any other Bonds, shall completely and fully supersede all other prior understandings or agreements, both written and oral, between the Issuer and the Borrower relating to the leasing of property and financing of the Project, including those contained in any commitment letter executed in anticipation of the issuance of the Series 2026 Bonds or any other Bonds.

Section 7.9. <u>Execution of Counterparts</u>. This Loan Agreement may be executed simultaneously in several counterparts each of which shall be an original and all of which shall constitute but one and the same instrument.

Section 7.10. <u>Expenses</u>. The Borrower shall pay and indemnify the Issuer and the Issuer Indemnified Persons all fees, costs, expenses and charges, including fees and expenses of attorneys, accountants, consultants and other experts, incurred in good faith and arising out of or in connection with this Loan Agreement, Borrower Financing Documents, the Bonds or the Trust Indenture. The Borrower shall pay the compensation of the Bond Trustee in accordance with Section 9.4 of the Trust Indenture and indemnify the Bond Trustee against all reasonable fees, costs and charges, including reasonable fees and expenses of attorneys, accountants, consultants and other experts, incurred in good faith (and with respect to the Bond Trustee, without gross negligence) and arising out of or in connection with this Loan Agreement, the General Financing Documents, the Bonds or the Trust Indenture. These obligations and those in Section 7.11 shall remain valid and in effect notwithstanding repayment of the loan hereunder or the Bonds or termination of this Loan Agreement or the Trust Indenture.

Section 7.11. <u>Indemnification</u>. The Borrower hereby fully and forever and irrevocably release and, to the fullest extent permitted by law, the Borrower jointly and severally agrees to indemnify, hold harmless and defend the Issuer, every Issuer Indemnified Person, the Bond Trustee and any of its respective officers, members, directors, officials, employees, attorneys and agents (collectively, the "**Trustee Indemnified Persons**" and together with the Issuer and the Issuer Indemnified Persons, the "**Indemnified Parties**"), against any and all fees, losses, damages, claims, actions, liabilities, costs and charges, and expenses of any conceivable nature, kind or character (including, without limitation, fees and expenses of attorneys, accountants, consultants and other experts, litigation and court costs, amounts paid in settlement and amounts paid to discharge judgments) to which the Indemnified Parties, or any of them, may become subject under any statutory law or regulation (including, without limitation, federal or state securities laws and regulations or federal tax laws and regulations) or at common law or otherwise (collectively, "**Liabilities**"), arising out of or based upon or in any way relating to:

(i) the Bonds, the Trust Indenture, this Loan Agreement, the General Financing Documents or the Tax Agreement or the execution or amendment hereof or thereof or in connection with transactions contemplated hereby or thereby, including the issuance, sale or resale of the Bonds;

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(ii) the performance or observance by or on behalf of the Issuer of those things on the part of the Issuer agreed to be performed or observed hereunder or under the Trust Indenture or the other documents identified in Subsection (i) above;

(iii) any act or omission of the Borrower or any of its affiliates or affiliated persons, agents, contractors, servants, employees, tenants or licensees in connection with the Project, the operation of the Project, or the condition, environmental or otherwise, occupancy, use, possession, conduct or management of work done in or about, or from the planning, design, acquisition, installation or construction of, the Project or any part thereof;

(iv) any lien or charge upon payments by the Borrower to the Issuer or the Bond Trustee hereunder, or any taxes (including, without limitation, all ad valorem taxes and sales taxes), assessments, impositions and other charges imposed on the Issuer or the Bond Trustee in respect of any portion of the Project;

(v) any violation of any Environmental Regulations with respect to, or the release of any Hazardous Substances from, the Project or any part thereof;

(vi) the defeasance and/or redemption, in whole or in part, of the Bonds;

(vii) any untrue statement or misleading statement or alleged untrue statement or alleged misleading statement of a material fact contained in any offering or disclosure document or disclosure or continuing disclosure document for the Bonds or any of the documents relating to the Bonds, or any omission or alleged omission from any offering or disclosure document or disclosure or continuing disclosure document for the Bonds of any material fact necessary to be stated therein in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading;

(viii) any declaration of taxability of interest on the Bonds, or allegations that interest on the Bonds is taxable or any regulatory audit or inquiry regarding whether interest in the Bonds is taxable;

(ix) any investigation or formal or informal inquiry by any federal, state, or local governmental or regulatory agency (including, but not limited to, the U.S. Securities & Exchange Commission) with respect to the Bonds or the transactions contemplated by the Issuer Financing Documents or in connection therewith;

(x) any third-party request to the Issuer for documents or information regarding the Bonds or related documents or transactions pursuant to the Federal Freedom of Information Act ("**FOIA**") or Wisconsin Public Records Law (Wis. Stat. §§ 19.21, et. seq.); to the extent not paid by the requesting party;

(xi) the Bond Trustee's acceptance or administration of the trust of the Trust Indenture, or trust hereunder, including the costs and expenses of enforcing the provisions of this Loan Agreement (including this Section) and the Trust Indenture against the Issuer or the Borrower and defending itself against any claim (whether asserted by the Issuer, the Borrower, or any holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties thereunder or under any of the documents relating to the Bonds to which it is a party; or

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(xii) any injury to, or death of, any Person or damage to property in or upon any Project or growing out of, or connected with, the use, nonuse, condition or occupancy of the Project;

except (A) in the case of the foregoing indemnification of the Trustee Indemnified Persons, to the extent such Liabilities are caused by the gross negligence or willful misconduct of such Trustee Indemnified Person; or (B) in the case of the foregoing indemnification of the Issuer and any Issuer Indemnified Person, to the extent such Liabilities are caused by the willful misconduct of the Person seeking indemnification.

**THE BORROWER EXPRESSLY ACKNOWLEDGES AND AGREES THAT THE ISSUER AND THE ISSUER INDEMNIFIED PERSONS SHALL BE RELEASED FROM, AND INDEMNIFIED HEREUNDER AGAINST, LIABILITIES ARISING FROM THE ISSUER**'**S OR ANY ISSUER INDEMNIFIED PERSON**'**S OWN NEGLIGENCE OF ANY KIND, DESCRIPTION OR DEGREE (EXPRESSLY WAIVING THE COMPARATIVE NEGLIGENCE PROVISIONS OF SECTION 895.045 OF THE WISCONSIN STATUTES AND THE STATUTORY AND COMMON-LAW CONTRIBUTORY OR COMPARATIVE NEGLIGENCE LAWS OF ANY OTHER STATE OR JURISDICTION), OR BREACH OF CONTRACTUAL DUTY, WITHOUT REGARD TO OR THE NECESSITY OF ANY BREACH OR FAULT ON THE PART OF THE BORROWER OR ANY OTHER PERSON, EXCEPT INSOFAR AS AND TO THE EXTENT THAT ANY SUCH LIABILITIES ARISE FROM THE WILLFUL MISCONDUCT OF THE PERSON SEEKING INDEMNIFICATION.**

In the event that any action or proceeding is brought against any Indemnified Party with respect to which indemnity may be sought hereunder, the Borrower, upon written notice from the Indemnified Party, shall assume the investigation and defense thereof, including the employment of counsel selected by the Indemnified Party, and shall assume the payment of all fees and expenses related thereto, with full power to litigate, compromise or settle the same in its sole discretion; provided that the Indemnified Party shall have the right to review and approve or disapprove any such compromise or settlement. Each Indemnified Party shall have the right to employ separate counsel in any such action or proceeding and participate in the investigation and defense thereof, and the Borrower shall pay the fees and expenses of such separate counsel; provided, however, that such Indemnified Party may only employ separate counsel at the expense of the Borrower if in the judgment of such Indemnified Party a conflict of interest exists by reason of common representation or if all parties commonly represented do not agree as to the action (or inaction) of counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The rights of any Persons to indemnity hereunder and rights to payment of fees and expenses and reimbursement of fees and expenses shall survive the final payment or defeasance of the Bonds and in the case of the Bond Trustee any resignation or removal. The provisions of this Section shall remain valid and in effect notwithstanding repayment of the loan hereunder or payment, redemption or defeasance of the Bonds or the termination of this Loan Agreement or the Trust Indenture.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Insofar as any document or instrument issued or delivered in connection with the Bonds (including without limitation, the documents referred to in subsection (i) above) purports to constitute an undertaking by or impose an obligation upon the Borrower to provide indemnification to the Issuer or the Issuer Indemnified Persons, the indemnification provision or provisions of such document shall not be deemed, interpreted or construed in any way as a modification of or limitation upon the Borrower's obligations or the rights of the Issuer or any Issuer Indemnified Person under this Section 7.11, and the provisions of this Section 7.11 shall in every respect supersede the indemnification provisions of any such other document and shall apply thereto as if fully set forth therein.

Section 7.12. <u>No Obligation to Enforce Assigned Rights</u>. Notwithstanding anything to the contrary in this Loan Agreement or the Trust Indenture, the Issuer shall have no obligation to and instead the Bond Trustee and/or the Bondholders, as the case may be, in accordance with this Loan Agreement or the Trust Indenture, shall have the exclusive right, without any notice to, direction from, or action by the Issuer, to take any and all steps, actions and proceedings, to enforce any or all rights of the Issuer (other than the Unassigned Rights) under this Loan Agreement or the Trust Indenture, including, without limitation, the rights to enforce the remedies upon the occurrence and continuation of an Event of Default and the obligations of the Borrower under this Loan Agreement.

Section 7.13. <u>Issuer</u><u>'</u><u>s Performance</u>. None of the provisions of this Loan Agreement or the Trust Indenture shall require the Issuer to expend or risk its own funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder or thereunder, unless payable from the Trust Estate, or unless the Issuer shall first have been adequately indemnified to its satisfaction against the cost, expense, and liability which may be incurred thereby. The Issuer shall not be under any obligation hereunder or under the Bond Indenture to perform any administrative service with respect to the Bonds or the Project (including, without limitation, record keeping and legal services), it being understood that such services shall be performed or provided by the Bond Trustee or the Borrower. The Issuer covenants that it will faithfully perform at all times any and all covenants, undertakings, stipulations, and provisions expressly contained in this Loan Agreement, the Trust Indenture, and any and every Bond executed, authenticated and delivered under the Trust Indenture; provided, however, that the Issuer shall not be obligated to take any action or execute any instrument pursuant to any provision hereof unless and until it shall have (i) been directed to do so in writing by the Borrower, the Bond Trustee, or the Bondholder having the authority to so direct; (ii) received from the Borrower, the Bond Trustee, or the Bondholder requesting such action or execution assurance satisfactory to the Issuer that the Issuer's expenses incurred or to be incurred in connection with taking such action or executing such instrument have been or will be paid or reimbursed to the Issuer; and (iii) if applicable, received in a timely manner the instrument or document to be executed, in form and substance satisfactory to the Issuer.

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In complying with any provision herein or in the Trust Indenture, including, but not limited to, any provision requiring the Issuer to "cause" another Person to take or omit any action, the Issuer shall be entitled to rely conclusively (and without independent investigation or verification) (i) on the faithful performance by the Bond Trustee or the Borrower, as the case may be, of their respective obligations hereunder and under the Trust Indenture and (ii) upon any written certification or opinion furnished to the Issuer by the Bond Trustee or the Borrower, as the case may be. In acting, or in refraining from acting, under this Loan Agreement or the Trust Indenture, the Issuer may conclusively rely on the advice of its counsel. The Issuer shall not be required to take any action hereunder or under the Trust Indenture that it reasonably believes to be unlawful or in contravention hereof or thereof.

Section 7.14. <u>No Impairment of Rights</u>. Nothing herein shall be deemed or construed to limit, impair or affect in any way the Issuer's (or any Issuer Indemnified Person's) right to enforce the Unassigned Rights, regardless of whether there is then existing an Event of Default (including, without limitation, a payment default), or any action based thereon or occasioned by an Event of Default or alleged Event of Default, and regardless of any waiver or forbearance granted by the Bond Trustee or any Bondholder in respect thereof. Any default or Event of Default in respect of the Unassigned Rights may only be waived with the Issuer's written consent.

Section 7.15. <u>Closing Expenses</u>. In addition to and without in any way limiting the Borrower's obligations to pay and indemnify the Issuer and the Issuer Indemnified Persons against fees, costs and charges arising out of or in connection with this Loan Agreement, the Borrower Financing Documents, the Bonds or the Trust Indenture, the Borrower shall pay, upon the closing of the issuance of the Bonds and as a condition thereto: (i) to the Issuer, the Issuer's issuance fee equal to the sum of (A) $30,000 and (B) 0.025% (2.5 basis points) times the par amount of the Series 2026 Bonds in excess of $20,000,000 (less, if applicable, any application fee heretofore paid by the Borrower to the Issuer); and (ii) attorney's fees of incurred by the Issuer in connection with the issuance of the Bonds.

Section 7.16. <u>Survival of Provisions</u>. The provisions of this Loan Agreement and the Trust Indenture and any other document in connection with the issuance of the Bonds to which the Issuer is a party concerning (a) the tax-exempt status of the Series 2026 Bonds (including, but not limited to, provisions concerning rebate); (b) the interpretation of this Loan Agreement; (c) the governing law, jurisdiction and venue; (d) the Issuer's right to rely on written representations of others contained herein or in any other document or instrument issued or entered into in respect of the Bonds, regardless of whether the Issuer is a party thereto; (e) the compensation and indemnification rights and exculpation from liability of the Issuer and the Issuer Indemnified Persons and the Trustee Indemnified Persons; and (f) any other provision of this Loan Agreement not described or enumerated above that expressly provides for its survival, shall survive and remain in full force and effect notwithstanding the payment or redemption in full, or defeasance of the Bonds, the discharge of the Trust Indenture, and the termination or expiration of this Loan Agreement.

Section 7.17. <u>Third Party Beneficiaries</u>. Notwithstanding any provision hereof to the contrary, it is specifically acknowledged and agreed that, to the extent of their rights hereunder (including, without limitation, their rights to immunity and exculpation from pecuniary liability) each Issuer Indemnified Person is a third-party beneficiary of this Loan Agreement entitled to enforce such rights in his, her, its, or their own name.

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Section 7.18. <u>Governing Law</u>. This Loan Agreement shall be governed by the laws of the State of Wisconsin, without regard to its conflicts of laws provisions. All claims of whatever character arising out of this Loan Agreement or under any statute or common law relating in any way, directly or indirectly, to the subject matter hereof or to the dealings between the Issuer and any other party hereto, if and to the extent that such claim potentially could or actually does involve the Issuer or any Issuer Indemnified Person, shall be brought in any state or federal court of competent jurisdiction located in Dane County, Wisconsin. By executing and delivering this Loan Agreement, each party hereto irrevocably: (i) accepts generally and unconditionally the exclusive jurisdiction and venue of such courts; (ii) waives any defense of *forum non conveniens*; and (iii) agrees not to seek removal of such proceedings to any court or forum other than as specified above. The foregoing shall not be deemed or construed to constitute a waiver by the Issuer of any prior notice or procedural requirements applicable to actions or claims against or involving joint powers commissions or governmental units of the State of Wisconsin that may exist at the time of and in connection with such matter.

Section 7.19. <u>Waiver of Jury Trial</u>. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS LOAN AGREEMENT OR ANY RELATED DOCUMENT.

Section 7.20. <u>Patriot and U.S.A. Freedom Act Requirements of the Bond Trustee</u>. To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. Accordingly, the Bond Trustee will require documentation from each non-individual person such as a business entity, a charity, a trust, or other legal entity, verifying its formation as a legal entity. The Bond Trustee may also request financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. The Issuer and Borrower agree that they will provide the Bond Trustee with such information as it may request in order for the Bond Trustee to satisfy the requirements of the U.S.A. Patriot Act.

Section 7.21. <u>Rights of Trustee</u>. The Bond Trustee shall possess the rights, powers, privileges, protections, benefits, indemnities and immunities that it possesses as trustee under the Trust Indenture and other General Financing Documents. Notwithstanding anything else to the contrary set forth herein, whenever reference is made herein to any discretionary action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other direction given or action to be undertaken (or not to be), suffered or omitted by the Bond Trustee or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Bond Trustee, (i) such provision shall refer to the Bond Trustee exercising each of the foregoing at the instruction of the Required Bondholders and (ii) it is understood that in all cases, the Bond Trustee shall be fully justified in failing or refusing to take any such action if it shall not have received written instruction, advice or concurrence from the Required Bondholders in respect of such action.

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IN WITNESS WHEREOF, the parties to this Loan Agreement have caused this Loan Agreement to be executed all as of the date first above written.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;PUBLIC FINANCE AUTHORITY | &nbsp;&nbsp;&nbsp;&nbsp;PUBLIC FINANCE AUTHORITY | | |
| &nbsp;&nbsp;&nbsp;&nbsp;By | /s/ Amity A. Dias | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Name: Amity A. Dias | &nbsp;&nbsp;&nbsp;&nbsp;Name: Amity A. Dias | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Title: Assistant Secretary | &nbsp;&nbsp;&nbsp;&nbsp;Title: Assistant Secretary | | |
| | | SKY HARBOUR CAPITAL III, LLC | SKY HARBOUR CAPITAL III, LLC |
| | | By | /s/ Tal Keinan |
| | | Name: Tal Keinan | Name: Tal Keinan |
| | | Title: Authorized Officer | Title: Authorized Officer |

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Signature Page to Loan Agreement

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**Schedule I**

**Project Jurisdictions**

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**Exhibit A**

**Form of Requisition From Series 2026 Construction Account**

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| | | |
|:---|:---|:---|
| TO: | UMB Bank, N.A., | Requisition No. _______ |
|  | as Trustee | Date: _______ _____, 20___ |
|  | ______________ |  |
|  | ______________ |  |
|  | Attention: ____________________ |  |

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Payee:

Payee's Address:

Amount:

Purpose of Requisition:

Subaccount: [Bond Proceeds/Equity]

We hereby certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the component of the 2026 Project being funded with this requisition is a Borrowing Base Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the amount being requisitioned pursuant hereto is not more than the total amount reasonably expected by the Borrower to be necessary to complete such component of the 2026 Project, taking into account the other available sources of funding therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) none of the items for which funds are being requisitioned has formed the basis for any disbursement heretofore made from the any fund or account created under the Indenture; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each item for which funds are being requisitioned from the Series 2026 Construction Account is a proper item to be paid and are being used, directly or indirectly, for the payment of costs of the 2026 Project.

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We further hereby certify that no Event of Default (as defined in the Loan Agreement or the Indenture) has occurred and is continuing as of the date hereof.

With respect to this requested disbursement, the Borrower (i) certifies that it has reviewed any wire instructions set forth in such written disbursement direction to confirm such wire instructions are accurate, (ii) agrees to indemnify and hold harmless the Bond Trustee from and against any and all claim, demand, loss, liability, tax or expense sustained, including but not limited to attorneys' fees and expenses and fees and expenses resulting directly or indirectly as a result of making the disbursement requested, and (iii) agrees that it will not seek recourse from the Bond Trustee as a result of losses incurred by Borrower for making the disbursement in accordance with the disbursement direction.

IN WITNESS WHEREOF, the Borrower has caused this Requisition to be executed in its name by its authorized officer as of this _____ day of __________, 20__.

SKY HARBOUR CAPITAL III LLC

By________________________

Authorized Officer

## Exhibit 10.3

**Exhibit 10.3**

**PARENT GUARANTY** 

This PARENT GUARANTY (this "<u>Guaranty</u>"), dated as of February 12, 2026 is entered into by SKY HARBOUR LLC, a Delaware limited liability company (the "<u>Guarantor</u>"), in favor of UMB BANK, N.A., as Trustee (in such capacity, the "<u>Trustee</u>"), pursuant to the hereinafter defined Indenture.

<u>STATEMENT OF PURPOSE</u>

On the date hereof, the Trustee and Public Finance Authority (the "Issuer") entered into that certain Trust Indenture, dated as of January 1, 2026 (the "Indenture"), pursuant to which the Issuer is issuing its Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026 (the "Bonds"), the proceeds of which are being loaned to Sky Harbour Capital III LLC, a Delaware limited liability company (the "<u>Borrower</u>"), pursuant to that certain Loan Agreement, dated as of January 1, 2026 (the "Loan Agreement"), between the Borrower and the Issuer, to finance and refinance, directly or indirectly, certain projects described in the Loan Agreement.

It is a condition precedent to the issuance of the Bonds and the loan of the proceeds thereof to the Borrower that the Guarantor guarantee the indebtedness and other obligations of the Borrower under or in connection with the Loan Agreement as set forth herein. The Guarantor will derive substantial direct and indirect benefits from the making of the loan of Bond proceeds to the Borrower pursuant to the Loan Agreement (which benefits are hereby acknowledged by the Guarantor).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, and to induce the Trustee to enter into the Indenture and to induce the Issuer to enter into the Loan Agreement, the Guarantor hereby agrees with the Trustee, for the benefit of the Bondholders, as follows:

ARTICLE 1<br><u>DEFINED TERMS</u>

SECTION 1.1 <u>Definitions</u>. The following terms when used in this Guaranty shall have the meanings assigned to them below:

"<u>2021 Obligated Group</u>" means the "Obligated Group" as defined in the Master Trust Indenture.

"<u>2026 Bonds Guaranty</u>" means the Guaranty, of even date herewith, by Sky Harbour Holdings IV LLC in favor of the Trustee, as supplemented and amended from time to time.

"<u>Applicable Law</u>" means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of governmental authorities and all orders and decrees of all courts and arbitrators.

"<u>Debtor Relief Laws</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

"<u>Drawdown Note Agreement</u>" means the Draw Down Note Purchase and Continuing Covenant Agreement, dated as of September 4, 2025, as amended by the First Amendment to Draw Down Note Purchase and Continuing Covenant Agreement, dated as of January 8, 2026, each by and among Sky Harbour Capital II LLC, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders party thereto, as further supplemented or amended from time to time.

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"<u>Drawdown Note Borrower</u>" means a "Borrower" as such term is defined in the Drawdown Note Agreement.

"<u>Drawdown Note Guaranty</u>" means the Guaranty, dated as of September 4, 2025, as amended by the First Amendment to Guaranty, dated as of January 8, 2026, each by Sky Harbour Holdings III LLC in favor of JPMorgan Chase Bank, N.A., as Administrative Agent (the "<u>Administrative Agent</u>"), as further supplemented or amended from time to time.

"<u>Drawdown Note Facility Surplus Cash Flow Account</u>" means the "Facility Cash Flow Account" established under the Drawdown Note Guaranty.

"<u>Guaranteed Obligations</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

"<u>Insolvency Proceeding</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

"<u>Master Trust Indenture</u>" means the Master Trust Indenture, dated as of September 1, 2021, by and among Sky Harbour Capital LLC, the other Members party thereto from time to time and The Bank of New York Mellon, as Master Trustee, as supplemented or amended from time to time.

"<u>OG Facility Surplus Cash Flow Account</u>" means the "Facility Surplus Fund" established under the Master Trust Indenture.

"<u>OG Surplus Cash Flow</u>" has the meaning assigned thereto in <u>Section 3.1(k)</u>.

"<u>Portfolio 2 Surplus Cash Flow</u>" has the meaning assigned thereto in <u>Section 3.1(l)</u>.

"<u>Refinancing Indebtedness</u>" has the meaning assigned thereto in <u>Section 3.1(i)</u>.

"<u>Subordinated Debt</u>" has the meaning assigned thereto in <u>Section 2.4(a)</u>.

"<u>Subordinated Debt Payments</u>" has the meaning assigned thereto in <u>Section 2.4(b)</u>.

SECTION 1.2 <u>Other Definitional Provisions</u>. Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned thereto in the Indenture, and if not otherwise defined in the Indenture shall have the meaning assigned thereto in the Loan Agreement, and if not otherwise defined in the Loan Agreement shall have the meaning assigned thereto in the Limited Offering Memorandum.

SECTION 1.3 <u>Interpretation</u>. The rules of interpretation set forth in <u>Section 1.2</u> of the Indenture shall be applicable to this Guaranty and are incorporated herein by this reference.

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ARTICLE 2<br><u>GUARANTY</u>

SECTION 2.1 <u>Guaranty</u>. The Guarantor hereby unconditionally and irrevocably guarantees to the Trustee, for the benefit of the Bondholders, the full and prompt payment when due (whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) and performance of the indebtedness, liabilities and other obligations of the Borrower under or in connection with the Loan Agreement and the other Borrower Financing Documents, including all unpaid principal of the Bonds, all interest accrued thereon, all fees, costs and expenses due under the Loan Agreement and all other amounts payable by the Borrower to the Trustee thereunder or in connection therewith. The terms "indebtedness," "liabilities" and "obligations" are used herein in their most comprehensive sense and include any and all advances, debts, obligations and liabilities, now existing or hereafter arising, whether voluntary or involuntary and whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether recovery upon such indebtedness, liabilities and obligations may be or hereafter become unenforceable or shall be an allowed or disallowed claim under the Bankruptcy Code (Title 11, United States Code), any successor statute or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (collectively, "<u>Debtor Relief Laws</u>") or any proceeding thereunder (an "<u>Insolvency Proceeding</u>"), whether created directly with the Trustee or acquired by the Trustee through assignment or endorsement or otherwise, whether matured or unmatured, whether joint or several, as and when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments evidencing any such obligations, including all renewals, extensions or modifications thereof, and including any interest that accrues after the commencement by or against the Borrower of any Insolvency Proceeding naming the Borrower as the debtor in such proceeding. The foregoing indebtedness, liabilities and other obligations of the Borrower, and all other indebtedness, liabilities and obligations to be paid or performed by the Guarantor in connection with this Guaranty (including any and all amounts due under <u>Section 4.3</u>), shall hereinafter be collectively referred to as the "<u>Guaranteed Obligations.</u>"

SECTION 2.2 <u>Bankruptcy Limitations on Guarantor</u>. Notwithstanding anything to the contrary contained in <u>Section 2.1</u>, it is the intention of the Guarantor and the Trustee that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with respect to the Guarantor or its assets, the amount of the Guarantor's obligations with respect to the Guaranteed Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Debtor Relief Laws after giving effect to <u>Section 2.3</u>. To that end, but only in the event and to the extent that after giving effect to <u>Section 2.3</u>, the Guarantor's obligations with respect to the Guaranteed Obligations or any payment made pursuant to such Guaranteed Obligations would, but for the operation of the first sentence of this <u>Section 2.2</u>, be subject to avoidance or recovery in any such proceeding under Debtor Relief Laws after giving effect to <u>Section 2.3</u>, the amount of the Guarantor's obligations with respect to the Guaranteed Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Debtor Relief Laws, render the Guarantor's obligations with respect to the Guaranteed Obligations unenforceable or avoidable or otherwise subject to recovery under Debtor Relief Laws. To the extent any payment actually made pursuant to the Guaranteed Obligations exceeds the limitation of the first sentence of this <u>Section 2.2</u> and is otherwise subject to avoidance and recovery in any such proceeding under Debtor Relief Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds such limitation and the Guaranteed Obligations as limited by the first sentence of this <u>Section 2.2</u> shall in all events remain in full force and effect and be fully enforceable against the Guarantor. The first sentence of this <u>Section 2.2</u> is intended solely to preserve the rights of the Trustee hereunder against the Guarantor in such proceeding to the maximum extent permitted by Debtor Relief Laws and none of the Guarantor, the Borrower, or any other Person shall have any right or claim under such sentence that would not otherwise be available under Debtor Relief Laws in such proceeding.

SECTION 2.3 <u>Subrogation</u>. Until the Guaranteed Obligations are no longer Outstanding, the Guarantor shall not have, and the Guarantor shall not directly or indirectly exercise, (i) any rights that it may acquire by way of subrogation under this Guaranty, by any payment hereunder or otherwise, or (ii) any rights of contribution, indemnification, reimbursement or similar suretyship claims arising out of this Guaranty or (iii) any other right which it might otherwise have or acquire (in any way whatsoever) which could entitle it at any time to share or participate in any right, remedy or security of the Trustee as against the Borrower, whether in connection with this Guaranty, any of the other Borrower Financing Documents or otherwise. If any amount shall be paid to the Guarantor on account of the foregoing rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held in trust for the benefit of the Trustee and shall forthwith be paid to the Trustee to be credited and applied to the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms of the Borrower Financing Documents.

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SECTION 2.4 <u>Subordination Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Subordination to Payment of Guaranteed Obligations</u>. All payments on account of all Indebtedness of the Borrower to the Guarantor, including all principal on any such credit extensions, all interest accrued thereon, all fees and all other amounts payable by the Borrower to the Guarantor in connection therewith, whether now existing or hereafter arising, and whether due or to become due (the "<u>Subordinated Debt</u>"), shall be subject, subordinate and junior in right of payment and exercise of remedies, to the extent and in the manner set forth herein, to the prior payment in full in cash or cash equivalents of the Guaranteed Obligations (other than contingent indemnification obligations under which no claim has been made).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Payments</u>. As long as any of the Guaranteed Obligations shall remain outstanding and unpaid, the Guarantor shall not accept or receive any payment or distribution by or on behalf of the Borrower, directly or indirectly, of assets of the Borrower of any kind or character, whether in cash, property or securities, including on account of the purchase, redemption or other acquisition of Subordinated Debt, as a result of any collection, sale or other disposition of collateral, or by setoff, exchange or in any other manner, for or on account of the Subordinated Debt ("<u>Subordinated Debt Payments</u>"), except that if no Event of Default exists, the Guarantor shall be entitled to accept and receive regularly scheduled payments and other payments in the ordinary course on the Subordinated Debt, in accordance with the terms of the documents and instruments governing the Subordinated Debt and other Subordinated Debt Payments in respect of Subordinated Debt not evidenced by documents or instruments. During the existence of an Event of Default (or if any Event of Default would exist immediately after the making of a Subordinated Debt Payment), and until such Event of Default is cured or waived, the Guarantor shall not make, accept or receive any Subordinated Debt Payment. In the event that, notwithstanding the provisions of this <u>Section 2.4</u>, any Subordinated Debt Payments shall be received in contravention of this <u>Section 2.4</u> by the Guarantor before all Guaranteed Obligations are paid in full in cash or cash equivalents (other than contingent indemnification obligations under which no claim has been made), such Subordinated Debt Payments shall be held in trust for the benefit of the Trustee and shall be paid over or delivered to the Trustee for application to the payment in full in cash or cash equivalents of all Guaranteed Obligations remaining unpaid to the extent necessary to give effect to this <u>Section 2.4</u>, after giving effect to any concurrent payments or distributions to the Trustee in respect of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subordination of Remedies</u>. As long as any Guaranteed Obligations (other than contingent indemnification obligations under which no claim has been made) shall remain outstanding and unpaid, the Guarantor shall not, without the prior written consent of the Trustee:

(i) accelerate, make demand or otherwise make due and payable prior to the original stated maturity thereof any Subordinated Debt or bring suit or institute any other actions or proceedings to enforce its rights or interests under or in respect of the Subordinated Debt;

(ii) exercise any rights under or with respect to (A) any guaranties of the Subordinated Debt, or (B) any collateral held by it, including causing or compelling the pledge or delivery of any collateral, any attachment of, levy upon, execution against, foreclosure upon or the taking of other action against or institution of other proceedings with respect to any collateral held by it, notifying any account debtors of the Borrower or asserting any claim or interest in any insurance with respect to any collateral, or attempt to do any of the foregoing;

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(iii) exercise any rights to set-offs and counterclaims in respect of any indebtedness, liabilities or obligations of the Guarantor to the Borrower against any of the Subordinated Debt; or

(iv) commence, or cause to be commenced, or join with any creditor other than the Trustee in commencing, any Insolvency Proceeding against the Borrower relating to the Subordinated Debt.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Subordination of Payments and Distributions</u>. In the event of any payment or distribution of assets of the Borrower of any kind or character, whether in cash, property or securities, upon any Insolvency Proceeding with respect to or involving the Borrower, (i) all amounts owing on account of the Guaranteed Obligations, including all interest accrued thereon at the contract rate both before and after the initiation of any such proceeding, whether or not an allowed claim in any such proceeding, shall first be paid in full in cash, or payment provided for in cash or in cash equivalents, before any Subordinated Debt Payment is made; and (ii) to the extent permitted by applicable law, any Subordinated Debt Payment to which the Guarantor would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors or other liquidating agent making such payment or distribution directly to the Trustee for application to the payment of the Guaranteed Obligations in accordance with <u>clause (i)</u>, after giving effect to any concurrent payment or distribution or provision therefor to the Trustee in respect of such Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Authorization to Trustee</u>. If, while any Subordinated Debt is outstanding, any Insolvency Proceeding is commenced by or against the Borrower or its property:

(i) The Guarantor shall promptly take such action as is necessary from time to time or as the Trustee may reasonably request to file appropriate claims or proofs of claim in respect of the Subordinated Debt, and if no such proof of claim has been filed by 15 days prior to any bar date, the Trustee may file such proof of claim; and

(ii) the Trustee is hereby irrevocably authorized and empowered (in the name of the Guarantor or otherwise), but shall have no obligation, to vote the Subordinated Debt as it may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of the Trustee.

SECTION 2.5 <u>Nature of Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of payment and performance and not of collection, and that its obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by, and the Guarantor hereby irrevocably waives, to the extent not prohibited by applicable law, any defenses (other than the defense that the Guaranteed Obligations have been fully and finally performed and indefeasibly paid in full in cash) to enforcement it may have (now or in the future) by reason of:

(i) the genuineness, legality, validity, regularity, enforceability or any future amendment of, or change in, or supplement to, the Indenture, the Loan Agreement, any other Borrower Financing Document or any other agreement, document or instrument to which the Borrower or the Guarantor is or may become a party (including any increase in the Guaranteed Obligations resulting from any extension of additional credit or otherwise);

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(ii) any action under or in respect of the Loan Agreement or any other Borrower Financing Document in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges (including any change in the time, place or manner of payment of, or in any other term of, the Guaranteed Obligations, or any rescission, waiver, amendment or other modification of any Borrower Financing Document or any other agreement, including any increase in the Guaranteed Obligations resulting from any extension of additional credit or otherwise);

(iii) the absence of any action to enforce this Guaranty, the Loan Agreement or any other Borrower Financing Document, or the waiver or consent by the Trustee (in each case, in accordance with the Borrower Financing Documents) with respect to any of the provisions of this Guaranty, the Loan Agreement or any other Borrower Financing Document;

(iv) the existence, value or condition of, or failure to perfect its lien (if any) against, any security for or other guaranty of the Guaranteed Obligations or any action, or the absence of any action, by the Trustee in respect of such security or guaranty (including, without limitation, the release of any such security or guaranty);

(v) any structural change in, restructuring of or other similar organizational change of the Borrower or the Guarantor;

(vi) any other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor; or

(vii) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Trustee that might vary the risk of the Guarantor or otherwise operate as a defense available to, or a legal or equitable discharge of, the Trustee or any other guarantor or surety;

it being agreed by the Guarantor that, subject to the first sentence of <u>Section 2.2</u>, its obligations under this Guaranty shall not be discharged until the Guaranteed Obligations are no longer Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor represents, warrants and agrees that, to the extent permitted by applicable law, the Guaranteed Obligations and its obligations under this Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind (other than the defense of payment) against the Trustee, the Guarantor or the Borrower whether now existing or which may arise in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guaranty, and all dealings among the Borrower and the Guarantor, on the one hand, and the Trustee, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty.

SECTION 2.6 <u>Waivers</u>. To the extent permitted by Applicable Law, the Guarantor expressly, unconditionally and irrevocably waives all of the following rights and defenses (and agrees not to take advantage of or assert any such right or defense):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any rights it may now or in the future have under any statute, or at law or in equity, or otherwise, to compel the Trustee to proceed in respect of the Guaranteed Obligations against the Borrower, the Guarantor, any other guarantor or any other Person or against any security for or other guaranty of the payment and performance of the Guaranteed Obligations before proceeding against, or as a condition to proceeding against, the Guarantor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any defense based upon the failure of the Trustee to commence an action in respect of the Guaranteed Obligations against the Borrower, the Guarantor, any other guarantor or any other Person or any security for the payment and performance of the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any right to insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by the Guarantor of its obligations under, or the enforcement by the Trustee of this Guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any right of diligence, presentment, demand, protest and notice of whatever kind or nature (except as specifically required herein or in the other Borrower Financing Documents) with respect to any of the Guaranteed Obligations or any requirement that the Trustee protect, secure, perfect or insure any lien or any property subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all rights to notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of acceptance of, or proof of reliance upon, this Guaranty by the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any defense or right of setoff or recoupment or counterclaim (other than a defense of payment) against or in respect of the Guaranteed Obligations;

The Guarantor agrees that any notice or directive given at any time to the Trustee which is inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the Trustee, and, in addition, may not be pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this Guaranty, unless the Trustee has specifically agreed otherwise in writing. The foregoing waivers are of the essence of the transaction contemplated by the Loan Agreement and the other Borrower Financing Documents.

SECTION 2.7 <u>Modification of Bond Documents, etc</u>. The Trustee shall not incur any liability to the Guarantor as a result of any of the following, and none of the following shall impair or release this Guaranty or any of the obligations of the Guarantor under this Guaranty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any change or extension of the manner, place or terms of payment of, or renewal or alteration of all or any portion of, the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any action under or in respect of the Loan Agreement or any other Borrower Financing Document in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any amendment to, or modification of, in any manner whatsoever, any Borrower Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any extension or waiver of the time for performance by the Guarantor, any other guarantor, the Borrower or any other Person of, or compliance with, any term, covenant or agreement on its part to be performed or observed under a Borrower Financing Document, or waiver of such performance or compliance or consent to a failure of, or departure from, such performance or compliance;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the taking and holding of security or collateral for the payment of the Guaranteed Obligations or the sale, exchange, release, disposal of, or other dealing with, any property pledged, mortgaged or conveyed, or in which the Trustee have been granted a lien, to secure any Indebtedness of the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the release of anyone who may be liable in any manner for the payment of any amounts owed by the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any modification or termination of the terms of any intercreditor or subordination agreement pursuant to which claims of other creditors of the Guarantor, any other guarantor, the Borrower or any other Person are subordinated to the claims of the Trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any application of any sums by whomever paid or however realized to any Guaranteed Obligations owing by the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents as the Trustee shall determine in its reasonable discretion.

SECTION 2.8 <u>Payment of Guaranteed Obligations</u>. The Guarantor hereby agrees, in furtherance of the foregoing provisions of this Guaranty and not in limitation of any other right which the Trustee or any other Person may have against the Guarantor by virtue hereof, upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under §362(a) of the Bankruptcy Code) (after expiration of any grace or cure period), the Guarantor shall forthwith pay, or cause to be paid, in cash, to the Trustee an amount equal to the amount of the Guaranteed Obligations then due as aforesaid (including interest which, but for the filing of a petition in any Insolvency Proceeding with respect to the Borrower, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Borrower for such interest in any such Insolvency Proceeding). The Guarantor shall make each payment hereunder, unconditionally in full without set-off, counterclaim or other defense, on the day when due in Dollars in immediately available funds to the Trustee at such designated corporate trust office of the Trustee and to such account as are specified in the Loan Agreement. Any and all payments by or on account of any Guaranteed Obligation hereunder shall to the extent permitted by applicable laws be made free and clear of and without reduction or withholding for any taxes.

SECTION 2.9 <u>Benefits of Guaranty</u>. The provisions of this Guaranty are for the benefit of the Trustee and its permitted successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Borrower and the Trustee, the obligations of the Borrower under the Borrower Financing Documents.

SECTION 2.10 <u>[Reserved</u>]

SECTION 2.11 <u>Termination; Reinstatement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to clause (c) below, this Guaranty shall remain in full force and effect until the Guaranteed Obligations are no longer Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No payment made by the Borrower, the Guarantor, any other guarantor or any other Person received or collected by the Trustee from the Borrower, the Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any setoff or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by the Guarantor in respect of the obligations of the Guarantor or any payment received or collected from the Guarantor in respect of the obligations of the Guarantor), remain liable for the obligations of the Guarantor up to the maximum liability of the Guarantor hereunder until the Guaranteed Obligations are no longer Outstanding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Guarantor agrees that, if any payment made by the Borrower or any other Person applied to the Guaranteed Obligations is at any time avoided, annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or is repaid in whole or in part pursuant to a good faith settlement of a pending or threatened avoidance claim, or the proceeds of any collateral, if any, are required to be refunded by the Trustee, to the Borrower, its estate, trustee, receiver or any other Person, including, without limitation, the Guarantor, under any applicable law or equitable cause, then, to the extent of such payment or repayment, the Guarantor's liability hereunder (and any lien or collateral, if any, securing such liability) shall be and remain in full force and effect, as fully as if such payment had never been made, and, if prior thereto, this Guaranty shall have been canceled or surrendered (and if any lien or collateral, if any, securing the Guarantor's liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), this Guaranty (and such lien or collateral, if any,) shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of the Guarantor in respect of the amount of such payment (or any lien or collateral, if any, securing such obligation).

ARTICLE 3<br><u>REPRESENTATIONS, WARRANTIES AND COVENANTS</u>

SECTION 3.1 <u>Representations, Warranties and Covenants</u>. The Guarantor makes the following representations, warranties and covenants to the Trustee as set forth in this Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor is duly organized and existing and in good standing under the laws of the State of Delaware. The Guarantor is currently qualified or licensed (as applicable) and shall remain qualified or licensed to do business in each jurisdiction in which the nature of its business requires it to be so qualified or licensed, except where the failure to preserve and maintain such qualification or license to do business could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery, and performance by the Guarantor of this Guaranty has been duly authorized and this Guaranty creates legal, valid, and binding obligations of the Guarantor enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery, and performance by the Guarantor of this Guaranty does not and will not contravene or conflict with (i) any material law, order, rule, regulation, writ, injunction or decree now in effect of any government authority, or court having jurisdiction over the Guarantor, (ii) any contractual restriction binding on or affecting the Guarantor or the Guarantor's property or assets which may adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty, (iii) the instruments creating any trust holding title to any assets included in the Guarantor's financial statements, or (iv) the organizational or other documents of the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There is no action, proceeding, or investigation pending or, to the Guarantor's knowledge, threatened or affecting the Guarantor, which could reasonably be expected to materially and adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty. There are no judgments or orders for the payment of money rendered against the Guarantor for an amount in excess of $500,000 that have been undischarged for a period of ten (10) or more consecutive days and the enforcement of which is not stayed by reason of a pending appeal or otherwise. The Guarantor is not in default under any agreements that could reasonably be expected to materially and adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As of the date hereof and throughout the term of the Loan Agreement (a) the Guarantor is not and will not be an "employee benefit plan," as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended *(*"<u>ERISA</u>"), whether or not subject to Title I of ERISA, or a "plan" as defined in Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code; (b) none of the assets of the Guarantor constitutes or will constitute "plan assets" of one or more plans described in the foregoing clause (a) within the meaning of U.S. Department of Labor Regulation 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA; and (c) transactions by or with the Guarantor are not and will not be subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans, as defined in Section 3(32) of ERISA. The Guarantor shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder or under any other Borrower Financing Document (or the exercise by the Trustee of any of its rights under this Guaranty or the other Borrower Financing Documents) to be a non-exempt prohibited transaction under ERISA or Section 4975 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the date hereof, and after giving effect to this Guaranty and the contingent obligations evidenced hereby, the Guarantor is and expects to be solvent at all times, and has and expects to have assets at all times which, fairly valued, exceed its obligations, liabilities and debts, and has and expects to have property and assets at all times sufficient to satisfy and repay its obligations and liabilities. The Guarantor shall promptly (and in any case within three (3) Business Days thereof) provide written notice to the Trustee if at any time the Guarantor does not have sufficient assets to fully cover the obligations and performance by the Guarantor pursuant to the terms and conditions of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All statements set forth in the Recitals are true and correct in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The Guarantor shall not permit Sky Harbour Capital II LLC or any other Drawdown Note Borrower to incur any additional Indebtedness after the date hereof, other than (a) the Series 2025 Notes and Additional Notes (each as defined in the Drawdown Note Agreement) and other Indebtedness on a parity with the Series 2025 Notes, in the aggregate principal amount of not more than $400 million outstanding from time to time; provided, however, that the Drawdown Note Borrowers will not be permitted to draw amounts in excess of $200 million, unless contemporaneously therewith $8 of cash equity is contributed to the Series 2026 Construction Account for each $10 drawn in excess of $200 million (collectively, "<u>Portfolio II Debt</u>"), and (b) Indebtedness incurred for the purpose of (i) refinancing, repurchasing or refunding any Portfolio II Debt, (ii) paying costs of issuance in connection therewith, and (iii) funding any reserves or capitalized interest accounts in connection therewith, provided that the final repayment date of the Indebtedness incurred pursuant to this clause (b) shall not be later than the final repayment date of the Indebtedness being refinanced, repurchased or refunded thereby. The Guarantor shall not permit Sky Harbour Capital LLC or any other member of the 2021 Obligated Group to dispose of any of their assets except in compliance with the Master Trust Indenture as in effect on the date hereof. The Guarantor shall not permit Sky Harbour Capital II LLC or any other Drawdown Note Borrower to dispose of any of their assets except in compliance with the Drawdown Note Agreement as in effect on the date hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Guarantor shall not permit Sky Harbour Capital LLC or any other member of the 2021 Obligated Group to incur any additional Indebtedness after the date hereof, other than Refinancing Indebtedness; provided, however, that no such Refinancing Indebtedness shall be incurred to refinance, repurchase or refund the Indebtedness of any Drawdown Note Borrower unless the Series 2026 Bonds are refinanced, repurchased or refunded in full prior to or contemporaneously therewith. As used herein, "<u>Refinancing Indebtedness</u>" means Indebtedness of Sky Harbour Capital LLC or any other member of the 2021 Obligated Group incurred for the purpose of (A) refinancing, repurchasing or refunding other Indebtedness of any member of the 2021 Obligated Group or any Drawdown Note Borrower, (B) paying costs of issuance in connection therewith, and (C) funding any reserves or capitalized interest accounts in connection therewith. The Guarantor shall not permit Sky Harbour Capital LLC or any other member of the 2021 Obligated Group to dispose of any of their assets except in compliance with the Master Trust Indenture as in effect on the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Guarantor shall or shall cause its applicable subsidiaries to direct the transfer of funds from the OG Facility Surplus Fund established under the Master Trust Indenture, at the times and to the extent permitted by the provisions of the Master Trust Indenture, to the Administrative Agent for deposit to the Drawdown Note Facility Surplus Cash Flow Account established under the Drawdown Note Guaranty. The Guarantor shall not permit Sky Harbour Capital LLC or any other member of the 2021 Obligated Group to amend the Master Trust Indenture in a manner that would have a material adverse effect on the availability of funds to be transferred from the OG Facility Surplus Fund to the Drawdown Note Facility Surplus Cash Flow Account, including, without limitation, amending the Senior Debt Service Coverage Ratio or Projected Senior Debt Service Coverage Ratio requirements of the Obligated Group Master Trust Indenture Release Conditions to be more restrictive so long as the Series 2026 Bonds are Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Guarantor shall or shall cause its applicable subsidiaries to direct the transfer of funds from the Drawdown Note Facility Surplus Cash Flow Account established under the Drawdown Note Guaranty, at the times and to the extent permitted by the provisions of the Drawdown Note Guaranty, to the Custodian for deposit to the 2026 Bond Surplus Cash Flow Account established under the 2026 Bonds Guaranty (such amounts, the "<u>OG Surplus Cash Flow</u>"). The Guarantor shall not permit Sky Harbour Capital II LLC or any other Drawdown Note Borrower to amend the Drawdown Note Agreement or the Drawdown Note Guaranty in a manner that would have a material adverse effect on the availability of OG Surplus Cash Flow to be transferred from the Drawdown Note Facility Surplus Cash Flow Account to the 2026 Surplus Cash Flow Account, including, without limitation, amending the Historical DSCR or Projected DSCR requirements of the Revenue Account Release Conditions to be more restrictive so long as the Series 2026 Bonds are Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Guarantor shall or shall cause its applicable subsidiaries to direct the transfer of funds from the Revenue Account established under the Drawdown Note Agreement, at the times and to the extent permitted by the provisions of the Drawdown Note Agreement, to the Custodian for deposit to the 2026 Bond Surplus Cash Flow Account established under the 2026 Bonds Guaranty (such amounts, the "<u>Portfolio 2 Surplus Cash Flow</u>"). The Guarantor shall not permit Sky Harbour Capital II LLC or any other Drawdown Note Borrower to amend the Drawdown Note Agreement or the Drawdown Note Guaranty in a manner that would have a material adverse effect on the availability of Portfolio 2 Surplus Cash Flow to be transferred from the Revenue Account to the 2026 Surplus Cash Flow Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Guarantor shall use commercially reasonable efforts to pursue or cause the Borrower to pursue a refinancing of the Series 2026 Bonds not later than six months prior to the Scheduled Mandatory Tender Date. The Guarantor agrees to use commercially reasonable efforts pursue or cause the Borrower to pursue such refinancing of the Series 2026 Bonds through either (1) an issuance of Additional Obligations (as defined in the Master Trust Indenture) of the Obligated Group (as defined in the Master Trust Indenture), or (2) any other reasonable financing structure. The Guarantor reserves the right to pursue or cause the Borrower to pursue the remarketing of the Series 2026 Bonds if the Guarantor deems such approach more advantageous. As of the date hereof, the Guarantor's plan of finance assumes the refinancing of the Series 2026 Bonds prior to the Scheduled Mandatory Tender Date through an issuance of Additional Obligations of the Obligated Group. Notwithstanding the foregoing, the failure of the Guarantor to effectuate a refinancing or remarketing of the Series 2026 Bonds prior to the Scheduled Mandatory Tender Date shall not constitute a default or event of default hereunder or under the Loan Agreement or any other Borrower Financing Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) The Guarantor shall not permit Sky Harbour Capital II LLC or any other Drawdown Note Borrower to amend the provisions of Section 5.11 of the Drawdown Note Agreement in any material respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The Guarantor hereby agrees that (1) to the extent the Borrower or any affiliate thereof has applied proceeds of the Series 2026 Bonds to any particular 2026 Project, the Guarantor will cause its applicable subsidiaries to use commercially reasonable best efforts to complete such 2026 Project, (2) the Guarantor (i) will not permit any of its direct or indirect subsidiaries to grant a leasehold mortgage or leasehold deed of trust on any aircraft hangar project facilities (owned or leased by any direct or indirect subsidiary of the Guarantor as of the date hereof) that do not constitute Obligated Group Projects or Portfolio II Projects (collectively, "Other Projects") and (ii) will not permit any of its direct or indirect subsidiaries that own or maintain a leasehold interest in Other Projects (which are owned or leased by any direct or indirect subsidiary of the Guarantor as of the closing date) to pledge the equity interests of such subsidiary in connection with financing of Other Projects, unless, in the case of each of (i) and (ii) above, the Series 2026 Bond Collateral Account Release Conditions have been satisfied for the past 24 consecutive month period and the Series 2026 Bond Collateral Account Release Conditions are projected to be satisfied for the next 12 consecutive month period, in each case, as certified by the chief financial officer of the Guarantor, (3) the Guarantor will use commercially reasonable efforts to obtain, no later than December 31, 2027, a rating of the Series 2021 Bonds from a nationally recognized rating agency, provided that if the Guarantor receives a preliminary indication from such nationally recognized rating agency that the Series 2021 Bonds will not be assigned an investment grade rating, the Guarantor may withdraw such request and defer seeking a rating for a one-year period and such additional one-year periods until the Series 2021 Bonds are assigned an investment grade rating (or such lower rating as the Guarantor may determine in its sole discretion) from a nationally recognized rating agency, and (4) the Guarantor will not permit Sky Harbour Capital LLC or Sky Harbour Capital II LLC to amend any management agreement with any manager of any Obligated Group Project or Portfolio II Project that is an affiliate of the Borrower to increase the percentage used in calculating the property management fees, asset management fees or development fees due thereunder, so long as the Series 2026 Bonds are Outstanding.

ARTICLE 4<br><u>MISCELLANEOUS</u>

SECTION 4.1 <u>Notices</u>. All notices and communications hereunder shall be given to the addresses and otherwise made in accordance with <u>Section 7.4</u> of the Loan Agreement; <u>provided</u> <u>that</u> notices and communications to the Guarantor shall be directed to the Guarantor, at the address of the Borrower set forth in <u>Section 7.4</u> of the Loan Agreement.

SECTION 4.2 <u>Amendments and Waivers</u>. This Guaranty shall not be amended except by written agreement of the Guarantor and the Trustee. No waiver of any rights of the Trustee under any provision of this Guaranty or consent to any departure by the Guarantor therefrom shall be effective unless in writing and signed by the Trustee. Any such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

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SECTION 4.3 <u>Expenses; Indemnification; Waiver of Consequential Damages; Incorporation of Other Terms; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor shall pay all costs, fees and expenses (including, without limitation, attorney's fees and expenses) incurred by the Trustee to the extent the Borrower would be required to do so pursuant to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor shall pay and indemnify each Indemnified Party to the extent the Borrower would be required to do so pursuant to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All amounts due under this <u>Section 4.3</u> shall be payable promptly after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party's obligations under this <u>Section</u><u> </u><u>4.3</u> shall survive the termination of the Borrower Financing Documents and the payment of the Guaranteed Obligations.

SECTION 4.4 <u>[Reserved]</u>.

SECTION 4.5 <u>Governing Law; Jurisdiction; Venue; Service of Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Guaranty and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Guaranty and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appointment of the Borrower as Agent for the Guarantor</u>. The Guarantor hereby irrevocably appoints and authorizes the Borrower to act as its agent for service of process and notices required to be delivered under this Guaranty or under the other Borrower Financing Documents, it being understood and agreed that receipt by the Borrower of any summons, notice or other similar item shall be deemed effective receipt by the Guarantor.

SECTION 4.6 <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 4.7 <u>Injunctive Relief</u>. The Guarantor recognizes that, in the event the Guarantor fails to perform, observe or discharge any of its obligations or liabilities under this Guaranty, any remedy of law may prove to be inadequate relief to the Trustee. Therefore, the Guarantor agrees that the Trustee, at the option of the Trustee, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

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SECTION 4.8 <u>No Waiver by Course of Conduct, Cumulative Remedies</u>. No course of dealing between the Guarantor and the Trustee or their respective agents or employees shall be effective to change, modify or discharge any provision of this Guaranty or to constitute a waiver of any Event of Default. The enumeration of the rights and remedies of the Trustee set forth in this Guaranty is not intended to be exhaustive and the exercise by the Trustee of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Borrower Financing Documents or that may now or hereafter exist at law or in equity or by suit or otherwise. The Trustee shall not by any act (except by a written instrument pursuant to <u>Section 4.2</u>), delay, indulge, omit or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No delay or failure to take action on the part of the Trustee in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default. A waiver by the Trustee of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Trustee would otherwise have on any future occasion.

SECTION 4.9 <u>Successors and Assigns</u>. The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; except that the Guarantor may not assign or otherwise transfer any of its rights or obligations under this Guaranty without the prior written consent of the Trustee.

SECTION 4.10 <u>All Powers Coupled With Interest</u>. All powers of attorney and other authorizations granted to the Trustee and any Persons designated by the Trustee pursuant to any provisions of this Guaranty shall be deemed coupled with an interest and shall be irrevocable until the the Guaranteed Obligations are no longer Outstanding; <u>provided</u> that the foregoing powers or authorizations under this <u>Section 4.10</u> may be exercised by the Trustee or any of its designees, in each case, solely so long as an Event of Default has occurred and is continuing.

SECTION 4.11 <u>Survival of Indemnities</u>. Notwithstanding any termination of this Guaranty, the indemnities to which the Trustee are entitled under the provisions of <u>Section 4.3</u> and any other provision of this Guaranty shall continue in full force and effect and shall protect the Trustee against events arising after such termination as well as before.

SECTION 4.12 <u>Severability of Provisions</u>. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.

SECTION 4.13 <u>Counterparts</u>. This Guaranty may be executed in any number of counterparts (and by different parties hereto in separate counterparts), each of which shall constitute an original, but all of which taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Guaranty or any document or instrument delivered in connection herewith by facsimile or in electronic (*i.e.*, "pdf" or "tif") form shall be effective as delivery of a manually executed counterpart of this Guaranty or such other document or instrument, as applicable. The exchange of copies of this Guaranty and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Guaranty as to the parties hereto and may be used in lieu of the original Guaranty and signature pages for all purposes.

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SECTION 4.14 <u>Integration</u>. This Guaranty and the other Borrower Financing Documents, and any separate letter agreements with respect to fees constitute the entire contract of the parties relating to the subject matter hereof and supersede all previous agreements and understandings, written or oral, relating to the subject matter hereof. In the event of any conflict between the provisions of this Guaranty and those of (a) the Loan Agreement, the provisions of the Loan Agreement shall control, and (b) any other Borrower Financing Document not referenced in clause (a) above, the provisions of this Guaranty shall control; <u>provided</u> that the inclusion of supplemental rights or remedies in favor of the Trustee in any other Borrower Financing Document shall not be deemed a conflict with this Guaranty.

SECTION 4.15 <u>Advice of Counsel, No Strict Construction</u>. Each of the parties represents to each other party hereto that it has discussed this Guaranty with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Guaranty. In the event an ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Guaranty.

SECTION 4.16 <u>Acknowledgements</u>. The Guarantor hereby acknowledges that it has received a copy of the Loan Agreement and has reviewed and understands the same.

SECTION 4.17 <u>Release</u>. Subject to <u>Section 2.10</u> of this Guaranty, once the Guaranteed Obligations are no longer Outstanding, this Guaranty and all obligations (other than those expressly stated to survive such termination or as may be reinstated after such termination) of the Trustee and the Guarantor hereunder shall automatically terminate, all without delivery of any instrument or performance of any act by any party.

SECTION 4.18 <u>Rights of Trustee</u>. Guarantor acknowledges and agrees that this Guaranty is provided to the Trustee in its capacity as such under the Indenture, and in taking any action hereunder, that Trustee shall enjoy all the rights, protections, benefits, immunities, powers, privileges and indemnities afforded to it under the Indenture and the other General Financing Documents. Notwithstanding anything else to the contrary set forth herein, whenever reference is made herein to any discretionary action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other direction given or action to be undertaken (or not to be), suffered or omitted by the Trustee or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Trustee, (i) such provision shall refer to the Trustee exercising each of the foregoing at the instruction of the holders of a majority in aggregate principal amount of the Bonds and (ii) it is understood that in all cases, the Trustee shall be fully justified in failing or refusing to take any such action if it shall not have received written instruction, advice or concurrence from the holders of a majority in aggregate principal amount of the Bonds in respect of such action. All rights of the Trustee to compensation and indemnification hereunder shall survive the termination of this Guaranty.

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IN WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty under seal by their duly authorized officers, all as of the day and year first above written.

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| | |
|:---|:---|
| SKY HARBOUR LLC, as Guarantor | SKY HARBOUR LLC, as Guarantor |
| By: | /s/ Tal Keinan |
| Name: | Tal Keinan |
| Title:  | Chief Executive Officer |

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[Signature Page to Parent Guaranty]

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| | |
|:---|:---|
| Acknowledged by the Trustee as of the day and year first written above: | Acknowledged by the Trustee as of the day and year first written above: |
| UMB BANK, N.A., as Trustee | UMB BANK, N.A., as Trustee |
| By: | /s/ Michelle Mena-Rosado |
| Name: | Michelle Mena-Rosado |
| Title:  | Vice President |

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[Signature Page to Parent Guaranty]

## Exhibit 10.4

**Exhibit 10.4**

**GUARANTY** 

This GUARANTY (this "<u>Guaranty</u>"), dated as of February 12, 2026 is entered into by SKY HARBOUR HOLDINGS IV LLC, a Delaware limited liability company (the "<u>Guarantor</u>"), in favor of UMB BANK, N.A., as Trustee (in such capacity, the "<u>Trustee</u>") pursuant to the hereinafter defined Indenture.

<u>STATEMENT OF PURPOSE</u>

On the date hereof, the Trustee and Public Finance Authority (the "<u>Issuer</u>") entered into that certain Trust Indenture, dated as of January 1, 2026 (the "<u>Indenture</u>"), pursuant to which the Issuer is issuing its Revenue Bonds (Sky Harbour Capital III LLC Aviation Facilities Project), Series 2026 (the "<u>Bonds</u>"), the proceeds of which are being loaned to Sky Harbour Capital III LLC, a Delaware limited liability company (the "<u>Borrower</u>"), pursuant to that certain Loan Agreement, dated as of January 1, 2026 (the "<u>Loan Agreement</u>"), between the Borrower and the Issuer, to finance and refinance, directly or indirectly, certain projects described in the Loan Agreement.

It is a condition precedent to the issuance of the Bonds and the loan of the proceeds thereof to the Borrower that the Guarantor guarantee the indebtedness and other obligations of the Borrower under or in connection with the Loan Agreement as set forth herein. The Guarantor will derive substantial direct and indirect benefits from the making of the loan of Bond proceeds to the Borrower pursuant to the Loan Agreement (which benefits are hereby acknowledged by the Guarantor).

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, and to induce the Trustee to enter into the Indenture and to induce the Issuer to enter into the Loan Agreement, the Guarantor hereby agrees with the Trustee, for the benefit of the Bondholders, as follows:

ARTICLE 1<br><u>DEFINED TERMS</u>

SECTION 1.1 <u>Definitions</u>. The following terms when used in this Guaranty shall have the meanings assigned to them below:

"<u>2026 Bond Surplus Cash Flow Account</u>" has the meaning assigned to it in Section 3.2(a).

"<u>Applicable Law</u>" means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of governmental authorities and all orders and decrees of all courts and arbitrators.

"<u>Debtor Relief Laws</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

"<u>Drawdown Note Borrower</u>" means a "Borrower" as such term is defined in the Draw Down Note Purchase and Continuing Covenant Agreement, dated as of September 4, 2025, as amended by the First Amendment to Draw Down Note Purchase and Continuing Covenant Agreement, dated as of January 8, 2026, each by and among Sky Harbour Capital II LLC, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders party thereto, as further supplemented or amended from time to time.

"<u>Guaranteed Obligations</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

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"<u>Insolvency Proceeding</u>" has the meaning assigned thereto in <u>Section 2.1</u>.

"<u>OG Surplus Cash Flow</u>" has the meaning assigned in the Parent Guaranty.

"<u>Portfolio 2 Surplus Cash Flow</u>" has the meaning assigned in the Parent Guaranty.

"<u>Release Conditions</u>" means each of the following conditions is satisfied as of the relevant testing date: (a) sufficient funds are then on deposit in the Principal and Interest Account of the Debt Service Fund to pay interest on the Bonds on each Interest Payment Date occurring within 18 months after such date, (b) sufficient funds are then on deposit in the Debt Service Reserve Fund to satisfy the Debt Service Reserve Fund Requirement, and (c) no Default has occurred and is continuing.

"<u>Released 2026 Bond Surplus Cash Flow</u>" has the meaning assigned to it in Section 3.2(b).

"<u>Subordinated Debt</u>" has the meaning assigned thereto in <u>Section 2.4(a)</u>.

"<u>Subordinated Debt Payments</u>" has the meaning assigned thereto in <u>Section 2.4(b)</u>.

SECTION 1.2 <u>Other Definitional Provisions</u>. Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned thereto in the Indenture, and if not otherwise defined in the Indenture shall have the meaning assigned thereto in the Loan Agreement.

SECTION 1.3 <u>Interpretation</u>. The rules of interpretation set forth in <u>Section 1.2</u> of the Indenture shall be applicable to this Guaranty and are incorporated herein by this reference.

ARTICLE 2<br><u>GUARANTY</u>

SECTION 2.1 <u>Guaranty</u>. The Guarantor hereby unconditionally and irrevocably guarantees to the Trustee, for the benefit of the Bondholders, the full and prompt payment when due (whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise) and performance of the indebtedness, liabilities and other obligations of the Borrower under or in connection with the Loan Agreement and the other Borrower Financing Documents, including all unpaid principal of the Bonds, all interest accrued thereon, all fees, costs and expenses due under the Loan Agreement and all other amounts payable by the Borrower to the Trustee thereunder or in connection therewith. The terms "indebtedness," "liabilities" and "obligations" are used herein in their most comprehensive sense and include any and all advances, debts, obligations and liabilities, now existing or hereafter arising, whether voluntary or involuntary and whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, and whether recovery upon such indebtedness, liabilities and obligations may be or hereafter become unenforceable or shall be an allowed or disallowed claim under the Bankruptcy Code (Title 11, United States Code), any successor statute or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (collectively, "<u>Debtor Relief Laws</u>") or any proceeding thereunder (an "<u>Insolvency Proceeding</u>"), whether created directly with the Trustee or acquired by the Trustee through assignment or endorsement or otherwise, whether matured or unmatured, whether joint or several, as and when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments evidencing any such obligations, including all renewals, extensions or modifications thereof, and including any interest that accrues after the commencement by or against the Borrower of any Insolvency Proceeding naming the Borrower as the debtor in such proceeding. The foregoing indebtedness, liabilities and other obligations of the Borrower, and all other indebtedness, liabilities and obligations to be paid or performed by the Guarantor in connection with this Guaranty (including any and all amounts due under <u>Section 4.3</u>), shall hereinafter be collectively referred to as the "<u>Guaranteed Obligations.</u>"

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SECTION 2.2 <u>Bankruptcy Limitations on Guarantor</u>. Notwithstanding anything to the contrary contained in <u>Section 2.1</u>, it is the intention of the Guarantor and the Trustee that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or any similar proceeding with respect to the Guarantor or its assets, the amount of the Guarantor's obligations with respect to the Guaranteed Obligations shall be equal to, but not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Debtor Relief Laws after giving effect to <u>Section 2.3</u>. To that end, but only in the event and to the extent that after giving effect to <u>Section 2.3</u>, the Guarantor's obligations with respect to the Guaranteed Obligations or any payment made pursuant to such Guaranteed Obligations would, but for the operation of the first sentence of this <u>Section 2.2</u>, be subject to avoidance or recovery in any such proceeding under Debtor Relief Laws after giving effect to <u>Section 2.3</u>, the amount of the Guarantor's obligations with respect to the Guaranteed Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Debtor Relief Laws, render the Guarantor's obligations with respect to the Guaranteed Obligations unenforceable or avoidable or otherwise subject to recovery under Debtor Relief Laws. To the extent any payment actually made pursuant to the Guaranteed Obligations exceeds the limitation of the first sentence of this <u>Section 2.2</u> and is otherwise subject to avoidance and recovery in any such proceeding under Debtor Relief Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds such limitation and the Guaranteed Obligations as limited by the first sentence of this <u>Section 2.2</u> shall in all events remain in full force and effect and be fully enforceable against the Guarantor. The first sentence of this <u>Section 2.2</u> is intended solely to preserve the rights of the Trustee hereunder against the Guarantor in such proceeding to the maximum extent permitted by Debtor Relief Laws and none of the Guarantor, the Borrower, or any other Person shall have any right or claim under such sentence that would not otherwise be available under Debtor Relief Laws in such proceeding.

SECTION 2.3 <u>Subrogation</u>. Until the Guaranteed Obligations are no longer Outstanding, the Guarantor shall not have, and the Guarantor shall not directly or indirectly exercise, (i) any rights that it may acquire by way of subrogation under this Guaranty, by any payment hereunder or otherwise, or (ii) any rights of contribution, indemnification, reimbursement or similar suretyship claims arising out of this Guaranty or (iii) any other right which it might otherwise have or acquire (in any way whatsoever) which could entitle it at any time to share or participate in any right, remedy or security of the Trustee as against the Borrower, whether in connection with this Guaranty, any of the other Borrower Financing Documents or otherwise. If any amount shall be paid to the Guarantor on account of the foregoing rights at any time when all the Guaranteed Obligations shall not have been paid in full, such amount shall be held in trust for the benefit of the Trustee and shall forthwith be paid to the Trustee to be credited and applied to the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms of the Borrower Financing Documents.

SECTION 2.4 <u>Subordination Terms.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Subordination to Payment of Guaranteed Obligations</u>. All payments on account of all Indebtedness of the Borrower to the Guarantor, including all principal on any such credit extensions, all interest accrued thereon, all fees and all other amounts payable by the Borrower to the Guarantor in connection therewith, whether now existing or hereafter arising, and whether due or to become due (the "<u>Subordinated Debt</u>"), shall be subject, subordinate and junior in right of payment and exercise of remedies, to the extent and in the manner set forth herein, to the prior payment in full in cash or cash equivalents of the Guaranteed Obligations (other than contingent indemnification obligations under which no claim has been made).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>No Payments</u>. As long as any of the Guaranteed Obligations shall remain outstanding and unpaid, the Guarantor shall not accept or receive any payment or distribution by or on behalf of the Borrower, directly or indirectly, of assets of the Borrower of any kind or character, whether in cash, property or securities, including on account of the purchase, redemption or other acquisition of Subordinated Debt, as a result of any collection, sale or other disposition of collateral, or by setoff, exchange or in any other manner, for or on account of the Subordinated Debt ("<u>Subordinated Debt Payments</u>"), except that if no Event of Default exists, the Guarantor shall be entitled to accept and receive regularly scheduled payments and other payments in the ordinary course on the Subordinated Debt, in accordance with the terms of the documents and instruments governing the Subordinated Debt and other Subordinated Debt Payments in respect of Subordinated Debt not evidenced by documents or instruments. During the existence of an Event of Default (or if any Event of Default would exist immediately after the making of a Subordinated Debt Payment), and until such Event of Default is cured or waived, the Guarantor shall not make, accept or receive any Subordinated Debt Payment. In the event that, notwithstanding the provisions of this <u>Section 2.4</u>, any Subordinated Debt Payments shall be received in contravention of this <u>Section 2.4</u> by the Guarantor before all Guaranteed Obligations are paid in full in cash or cash equivalents (other than contingent indemnification obligations under which no claim has been made), such Subordinated Debt Payments shall be held in trust for the benefit of the Trustee and shall be paid over or delivered to the Trustee for application to the payment in full in cash or cash equivalents of all Guaranteed Obligations remaining unpaid to the extent necessary to give effect to this <u>Section 2.4</u>, after giving effect to any concurrent payments or distributions to the Trustee in respect of the Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Subordination of Remedies</u>. As long as any Guaranteed Obligations (other than contingent indemnification obligations under which no claim has been made) shall remain outstanding and unpaid, the Guarantor shall not, without the prior written consent of the Trustee:

(i) accelerate, make demand or otherwise make due and payable prior to the original stated maturity thereof any Subordinated Debt or bring suit or institute any other actions or proceedings to enforce its rights or interests under or in respect of the Subordinated Debt;

(ii) exercise any rights under or with respect to (A) any guaranties of the Subordinated Debt, or (B) any collateral held by it, including causing or compelling the pledge or delivery of any collateral, any attachment of, levy upon, execution against, foreclosure upon or the taking of other action against or institution of other proceedings with respect to any collateral held by it, notifying any account debtors of the Borrower or asserting any claim or interest in any insurance with respect to any collateral, or attempt to do any of the foregoing;

(iii) exercise any rights to set-offs and counterclaims in respect of any indebtedness, liabilities or obligations of the Guarantor to the Borrower against any of the Subordinated Debt; or

(iv) commence, or cause to be commenced, or join with any creditor other than the Trustee in commencing, any Insolvency Proceeding against the Borrower relating to the Subordinated Debt.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Subordination of Payments and Distributions</u>. In the event of any payment or distribution of assets of the Borrower of any kind or character, whether in cash, property or securities, upon any Insolvency Proceeding with respect to or involving the Borrower, (i) all amounts owing on account of the Guaranteed Obligations, including all interest accrued thereon at the contract rate both before and after the initiation of any such proceeding, whether or not an allowed claim in any such proceeding, shall first be paid in full in cash, or payment provided for in cash or in cash equivalents, before any Subordinated Debt Payment is made; and (ii) to the extent permitted by applicable law, any Subordinated Debt Payment to which the Guarantor would be entitled except for the provisions hereof, shall be paid or delivered by the trustee in bankruptcy, receiver, assignee for the benefit of creditors or other liquidating agent making such payment or distribution directly to the Trustee for application to the payment of the Guaranteed Obligations in accordance with <u>clause (i)</u>, after giving effect to any concurrent payment or distribution or provision therefor to the Trustee in respect of such Guaranteed Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Authorization to Trustee</u>. If, while any Subordinated Debt is outstanding, any Insolvency Proceeding is commenced by or against the Borrower or its property:

(i) The Guarantor shall promptly take such action as is necessary from time to time or as the Trustee may reasonably request to file appropriate claims or proofs of claim in respect of the Subordinated Debt, and if no such proof of claim has been filed by 15 days prior to any bar date, the Trustee may file such proof of claim; and

(ii) the Trustee is hereby irrevocably authorized and empowered (in the name of the Guarantor or otherwise), but shall have no obligation, to vote the Subordinated Debt as it may deem necessary or advisable for the exercise or enforcement of any of the rights or interests of the Trustee.

SECTION 2.5 <u>Nature of Guaranty</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of payment and performance and not of collection, and that its obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by, and the Guarantor hereby irrevocably waives, to the extent not prohibited by applicable law, any defenses (other than the defense that the Guaranteed Obligations have been fully and finally performed and indefeasibly paid in full in cash) to enforcement it may have (now or in the future) by reason of:

(i) the genuineness, legality, validity, regularity, enforceability or any future amendment of, or change in, or supplement to, the Indenture, the Loan Agreement, any other Borrower Financing Document or any other agreement, document or instrument to which the Borrower or the Guarantor is or may become a party (including any increase in the Guaranteed Obligations resulting from any extension of additional credit or otherwise);

(ii) any action under or in respect of the Loan Agreement or any other Borrower Financing Document in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges (including any change in the time, place or manner of payment of, or in any other term of, the Guaranteed Obligations, or any rescission, waiver, amendment or other modification of any Borrower Financing Document or any other agreement, including any increase in the Guaranteed Obligations resulting from any extension of additional credit or otherwise);

(iii) the absence of any action to enforce this Guaranty, the Loan Agreement or any other Borrower Financing Document, or the waiver or consent by the Trustee (in each case, in accordance with the Borrower Financing Documents) with respect to any of the provisions of this Guaranty, the Loan Agreement or any other Borrower Financing Document;

(iv) the existence, value or condition of, or failure to perfect its lien (if any) against, any security for or other guaranty of the Guaranteed Obligations or any action, or the absence of any action, by the Trustee in respect of such security or guaranty (including, without limitation, the release of any such security or guaranty);

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(v) any structural change in, restructuring of or other similar organizational change of the Borrower or the Guarantor;

(vi) any other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor; or

(vii) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by the Trustee that might vary the risk of the Guarantor or otherwise operate as a defense available to, or a legal or equitable discharge of, the Trustee or any other guarantor or surety;

it being agreed by the Guarantor that, subject to the first sentence of <u>Section 2.2</u>, its obligations under this Guaranty shall not be discharged until the Guaranteed Obligations are no longer Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor represents, warrants and agrees that, to the extent permitted by applicable law, the Guaranteed Obligations and its obligations under this Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind (other than the defense of payment) against the Trustee, the Guarantor or the Borrower whether now existing or which may arise in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guaranty, and all dealings among the Borrower and the Guarantor, on the one hand, and the Trustee, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty.

SECTION 2.6 <u>Waivers</u>. To the extent permitted by Applicable Law, the Guarantor expressly, unconditionally and irrevocably waives all of the following rights and defenses (and agrees not to take advantage of or assert any such right or defense):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any rights it may now or in the future have under any statute, or at law or in equity, or otherwise, to compel the Trustee to proceed in respect of the Guaranteed Obligations against the Borrower, the Guarantor, any other guarantor or any other Person or against any security for or other guaranty of the payment and performance of the Guaranteed Obligations before proceeding against, or as a condition to proceeding against, the Guarantor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any defense based upon the failure of the Trustee to commence an action in respect of the Guaranteed Obligations against the Borrower, the Guarantor, any other guarantor or any other Person or any security for the payment and performance of the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any right to insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by the Guarantor of its obligations under, or the enforcement by the Trustee of this Guaranty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any right of diligence, presentment, demand, protest and notice of whatever kind or nature (except as specifically required herein or in the other Borrower Financing Documents) with respect to any of the Guaranteed Obligations or any requirement that the Trustee protect, secure, perfect or insure any lien or any property subject thereto;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any and all rights to notice of the creation, renewal, extension or accrual of any of the Guaranteed Obligations and notice of acceptance of, or proof of reliance upon, this Guaranty by the Trustee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any defense or right of setoff or recoupment or counterclaim (other than a defense of payment) against or in respect of the Guaranteed Obligations;

The Guarantor agrees that any notice or directive given at any time to the Trustee which is inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the Trustee, and, in addition, may not be pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this Guaranty, unless the Trustee has specifically agreed otherwise in writing. The foregoing waivers are of the essence of the transaction contemplated by the Loan Agreement and the other Borrower Financing Documents.

SECTION 2.7 <u>Modification of Bond Documents, etc</u>. The Trustee shall not incur any liability to the Guarantor as a result of any of the following, and none of the following shall impair or release this Guaranty or any of the obligations of the Guarantor under this Guaranty:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any change or extension of the manner, place or terms of payment of, or renewal or alteration of all or any portion of, the Guaranteed Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any action under or in respect of the Loan Agreement or any other Borrower Financing Document in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such remedies, powers or privileges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any amendment to, or modification of, in any manner whatsoever, any Borrower Financing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any extension or waiver of the time for performance by the Guarantor, any other guarantor, the Borrower or any other Person of, or compliance with, any term, covenant or agreement on its part to be performed or observed under a Borrower Financing Document, or waiver of such performance or compliance or consent to a failure of, or departure from, such performance or compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the taking and holding of security or collateral for the payment of the Guaranteed Obligations or the sale, exchange, release, disposal of, or other dealing with, any property pledged, mortgaged or conveyed, or in which the Trustee have been granted a lien, to secure any Indebtedness of the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the release of anyone who may be liable in any manner for the payment of any amounts owed by the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any modification or termination of the terms of any intercreditor or subordination agreement pursuant to which claims of other creditors of the Guarantor, any other guarantor, the Borrower or any other Person are subordinated to the claims of the Trustee; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any application of any sums by whomever paid or however realized to any Guaranteed Obligations owing by the Guarantor, any other guarantor, the Borrower or any other Person pursuant to the Borrower Financing Documents as the Trustee shall determine in its reasonable discretion.

SECTION 2.8 <u>Payment of Guaranteed Obligations</u>. The Guarantor hereby agrees, in furtherance of the foregoing provisions of this Guaranty and not in limitation of any other right which the Trustee or any other Person may have against the Guarantor by virtue hereof, upon the failure of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under §362(a) of the Bankruptcy Code) (after expiration of any grace or cure period), the Guarantor shall forthwith pay, or cause to be paid, in cash, to the Trustee an amount equal to the amount of the Guaranteed Obligations then due as aforesaid (including interest which, but for the filing of a petition in any Insolvency Proceeding with respect to the Borrower, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed against the Borrower for such interest in any such Insolvency Proceeding). The Guarantor shall make each payment hereunder, unconditionally in full without set-off, counterclaim or other defense, on the day when due in Dollars in immediately available funds to the Trustee at such designated corporate trust office of the Trustee and to such account as are specified in the Loan Agreement. Any and all payments by or on account of any Guaranteed Obligation hereunder shall to the extent permitted by applicable laws be made free and clear of and without reduction or withholding for any taxes.

SECTION 2.9 <u>Benefits of Guaranty</u>. The provisions of this Guaranty are for the benefit of the Trustee and its permitted successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Borrower and the Trustee, the obligations of the Borrower under the Borrower Financing Documents.

SECTION 2.10 <u>[Reserved</u>]

SECTION 2.11 <u>Termination; Reinstatement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to clause (c) below, this Guaranty shall remain in full force and effect until the Guaranteed Obligations are no longer Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No payment made by the Borrower, the Guarantor, any other guarantor or any other Person received or collected by the Trustee from the Borrower, the Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any setoff or appropriation or application at any time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of the Guarantor hereunder which shall, notwithstanding any such payment (other than any payment made by the Guarantor in respect of the obligations of the Guarantor or any payment received or collected from the Guarantor in respect of the obligations of the Guarantor), remain liable for the obligations of the Guarantor up to the maximum liability of the Guarantor hereunder until the Guaranteed Obligations are no longer Outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Guarantor agrees that, if any payment made by the Borrower or any other Person applied to the Guaranteed Obligations is at any time avoided, annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or is repaid in whole or in part pursuant to a good faith settlement of a pending or threatened avoidance claim, or the proceeds of any collateral, if any, are required to be refunded by the Trustee, to the Borrower, its estate, trustee, receiver or any other Person, including, without limitation, the Guarantor, under any applicable law or equitable cause, then, to the extent of such payment or repayment, the Guarantor's liability hereunder (and any lien or collateral, if any, securing such liability) shall be and remain in full force and effect, as fully as if such payment had never been made, and, if prior thereto, this Guaranty shall have been canceled or surrendered (and if any lien or collateral, if any, securing the Guarantor's liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), this Guaranty (and such lien or collateral, if any,) shall be reinstated in full force and effect, and such prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of the Guarantor in respect of the amount of such payment (or any lien or collateral, if any, securing such obligation).

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ARTICLE 3<br><u>REPRESENTATIONS, WARRANTIES AND COVENANTS</u>

SECTION 3.1 <u>Representations, Warranties and Covenants</u>. The Guarantor makes the following representations, warranties and covenants to the Trustee as set forth in this Section 3.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor is duly organized and existing and in good standing under the laws of the State of Delaware. The Guarantor is currently qualified or licensed (as applicable) and shall remain qualified or licensed to do business in each jurisdiction in which the nature of its business requires it to be so qualified or licensed, except where the failure to preserve and maintain such qualification or license to do business could not reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery, and performance by the Guarantor of this Guaranty has been duly authorized and this Guaranty creates legal, valid, and binding obligations of the Guarantor enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The execution, delivery, and performance by the Guarantor of this Guaranty does not and will not contravene or conflict with (i) any material law, order, rule, regulation, writ, injunction or decree now in effect of any government authority, or court having jurisdiction over the Guarantor, (ii) any contractual restriction binding on or affecting the Guarantor or the Guarantor's property or assets which may adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty, (iii) the instruments creating any trust holding title to any assets included in the Guarantor's financial statements, or (iv) the organizational or other documents of the Guarantor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) There is no action, proceeding, or investigation pending or, to the Guarantor's knowledge, threatened or affecting the Guarantor, which could reasonably be expected to materially and adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty. There are no judgments or orders for the payment of money rendered against the Guarantor for an amount in excess of $500,000 that have been undischarged for a period of ten (10) or more consecutive days and the enforcement of which is not stayed by reason of a pending appeal or otherwise. The Guarantor is not in default under any agreements that could reasonably be expected to materially and adversely affect the Guarantor's ability to fulfill its obligations under this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As of the date hereof and throughout the term of the Loan Agreement (a) the Guarantor is not and will not be an "employee benefit plan," as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended *(*"<u>ERISA</u>"), whether or not subject to Title I of ERISA, or a "plan" as defined in Section 4975(e)(1) of the Code, whether or not subject to Section 4975 of the Code; (b) none of the assets of the Guarantor constitutes or will constitute "plan assets" of one or more plans described in the foregoing clause (a) within the meaning of U.S. Department of Labor Regulation 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA; and (c) transactions by or with the Guarantor are not and will not be subject to any state statute regulating investments of, or fiduciary obligations with respect to, governmental plans, as defined in Section 3(32) of ERISA. The Guarantor shall not engage in any transaction which would cause any obligation, or action taken or to be taken, hereunder or under any other Borrower Financing Document (or the exercise by the Trustee of any of its rights under this Guaranty or the other Borrower Financing Documents) to be a non-exempt prohibited transaction under ERISA or Section 4975 of the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As of the date hereof, and after giving effect to this Guaranty and the contingent obligations evidenced hereby, the Guarantor is and expects to be solvent at all times, and has and expects to have assets at all times which, fairly valued, exceed its obligations, liabilities and debts, and has and expects to have property and assets at all times sufficient to satisfy and repay its obligations and liabilities. The Guarantor shall promptly (and in any case within three (3) Business Days thereof) provide written notice to the Trustee if at any time the Guarantor does not have sufficient assets to fully cover the obligations and performance by the Guarantor pursuant to the terms and conditions of this Guaranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) All statements set forth in the Recitals are true and correct in all material respects.

SECTION 3.2 <u>Surplus Facility Cash Flow Account</u>. (a) No later than the date hereof, and at all times thereafter until the Guaranteed Obligations are no longer Outstanding, the Guarantor shall establish and maintain a deposit account with UMB Bank, N.A., as custodian (the "<u>Custodian</u>") designated as the "2026 Bond Surplus Cash Flow Account" (the "<u>2026 Bond Surplus Cash Flow Account</u>"), and shall cause all OG Surplus Cash Flows and all Portfolio 2 Surplus Cash Flows received from or at the direction of the Parent Guarantor to be deposited therein immediately upon receipt. Contemporaneously herewith, the Guarantor has executed and delivered an Account Control Agreement with the Trustee and the Custodian, in the form attached hereto as **Exhibit B**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the first day of each month (each, a "<u>Transfer Date</u>"), the Guarantor shall direct the Custodian to make the following transfers to the Trustee from amounts on deposit in the 2026 Bond Surplus Cash Flow Account, to the extent of available funds: (i) *first*, to the Principal and Interest Account of the Debt Service Fund in an amount sufficient to pay all interest payments due on each Interest Payment Date that is within 18 months after such Transfer Date, but only to the extent sufficient funds are not otherwise available in the Series 2026 Capitalized Interest Account or the Principal and Interest Account to make such interest payments, (ii) *second*, to the Debt Service Reserve Fund in an amount sufficient to satisfy any deficiency in the Debt Service Reserve Fund Requirement, and (iii) *third* to the Rebate Fund, any amounts required to be deposited therein pursuant to the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon the written request of the Guarantor, the Custodian shall transfer amounts on deposit in the 2026 Bond Surplus Cash Flow Account to the Guarantor or a deposit account designated by the Guarantor (funds released pursuant to this <u>Section 3.2(c)</u> are referred to herein as "<u>Released 2026 Bond Surplus Cash Flow</u>"); *provided that*, to request any transfer pursuant to this <u>Section 3.2(c)</u>, the Guarantor shall deliver an executed certificate to the Trustee in substantially the form of **Exhibit A**, certifying that the Release Conditions have been satisfied.

SECTION 3.3 <u>Released Surplus Cash Flow</u>. The Guarantor will not use Released 2026 Bond Surplus Cash Flow, other than Upfront Lease Payments (as defined in the Note Purchase Agreement) for any purpose other than (a) the distribution or transfer to the Parent Guarantor for the payment of general and administrative expenses of the Parent Guarantor, (b) the payment of current interest or principal (or related redemption premium) on the Bonds or any other Indebtedness of the Parent Guarantor or guaranteed by the Parent Guarantor, (c) the application of funds in accordance with <u>Section 3.2(b)</u> or otherwise for deposit or transfer to an account of an Affiliate of the Parent Guarantor as security for payment of the principal of or interest on the Bonds or any other Indebtedness of the Parent Guarantor or guaranteed by the Parent Guarantor, or (d) to transfer such funds, directly or indirectly, as an equity contribution to a Drawdown Note Borrower for use as a capital contribution of such Drawdown Note Borrower for an Approved Eligible Project (as defined in the Drawdown Note Agreement).

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ARTICLE 4<br><u>MISCELLANEOUS</u>

SECTION 4.1 <u>Notices</u>. All notices and communications hereunder shall be given to the addresses and otherwise made in accordance with <u>Section 7.4</u> of the Loan Agreement; <u>provided</u> <u>that</u> notices and communications to the Guarantor shall be directed to the Guarantor, at the address of the Borrower set forth in <u>Section 7.4</u> of the Loan Agreement.

SECTION 4.2 <u>Amendments and Waivers</u>. This Guaranty shall not be amended except by written agreement of the Guarantor and the Trustee. No waiver of any rights of the Trustee under any provision of this Guaranty or consent to any departure by the Guarantor therefrom shall be effective unless in writing and signed by the Trustee. Any such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

SECTION 4.3 <u>Expenses; Indemnification; Waiver of Consequential Damages; Incorporation of Other Terms; Etc</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Guarantor shall pay all fees, costs and expenses (including, without limitation, attorney's fees and expenses) incurred by the Trustee to the extent the Borrower would be required to do so pursuant to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Guarantor shall pay and indemnify each Indemnified Party to the extent the Borrower would be required to do so pursuant to the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All amounts due under this <u>Section 4.3</u> shall be payable promptly after demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party's obligations under this <u>Section</u><u> </u><u>4.3</u> shall survive the termination of the Borrower Financing Documents and the payment of the Guaranteed Obligations.

SECTION 4.4 <u>[Reserved]</u>.

SECTION 4.5 <u>Governing Law; Jurisdiction; Venue; Service of Process</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Governing Law</u>. This Guaranty and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Guaranty and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Appointment of the Borrower as Agent for the Guarantor</u>. The Guarantor hereby irrevocably appoints and authorizes the Borrower to act as its agent for service of process and notices required to be delivered under this Guaranty or under the other Borrower Financing Documents, it being understood and agreed that receipt by the Borrower of any summons, notice or other similar item shall be deemed effective receipt by the Guarantor.

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SECTION 4.6 <u>Waiver of Jury Trial</u>. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

SECTION 4.7 <u>Injunctive Relief</u>. The Guarantor recognizes that, in the event the Guarantor fails to perform, observe or discharge any of its obligations or liabilities under this Guaranty, any remedy of law may prove to be inadequate relief to the Trustee. Therefore, the Guarantor agrees that the Trustee, at the option of the Trustee, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages.

SECTION 4.8 <u>No Waiver by Course of Conduct, Cumulative Remedies</u>. No course of dealing between the Guarantor and the Trustee or their respective agents or employees shall be effective to change, modify or discharge any provision of this Guaranty or to constitute a waiver of any Event of Default. The enumeration of the rights and remedies of the Trustee set forth in this Guaranty is not intended to be exhaustive and the exercise by the Trustee of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the Indenture or any Borrower Financing Documents or that may now or hereafter exist at law or in equity or by suit or otherwise. The Trustee shall not by any act (except by a written instrument pursuant to <u>Section 4.2</u>), delay, indulge, omit or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No delay or failure to take action on the part of the Trustee in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege or shall be construed to be a waiver of any Event of Default. A waiver by the Trustee of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right or remedy which the Trustee would otherwise have on any future occasion.

SECTION 4.9 <u>Successors and Assigns</u>. The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; except that the Guarantor may not assign or otherwise transfer any of its rights or obligations under this Guaranty without the prior written consent of the Trustee.

SECTION 4.10 <u>All Powers Coupled With Interest</u>. All powers of attorney and other authorizations granted to the Trustee and any Persons designated by the Trustee pursuant to any provisions of this Guaranty shall be deemed coupled with an interest and shall be irrevocable until the the Guaranteed Obligations are no longer Outstanding; <u>provided</u> that the foregoing powers or authorizations under this <u>Section 4.10</u> may be exercised by the Trustee or any of its designees, in each case, solely so long as an Event of Default has occurred and is continuing.

SECTION 4.11 <u>Survival of Indemnities</u>. Notwithstanding any termination of this Guaranty, the indemnities to which the Trustee are entitled under the provisions of <u>Section 4.3</u> and any other provision of this Guaranty shall continue in full force and effect and shall protect the Trustee against events arising after such termination as well as before.

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SECTION 4.12 <u>Severability of Provisions</u>. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.

SECTION 4.13 <u>Counterparts</u>. This Guaranty may be executed in any number of counterparts (and by different parties hereto in separate counterparts), each of which shall constitute an original, but all of which taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Guaranty or any document or instrument delivered in connection herewith by facsimile or in electronic (*i.e.*, "pdf" or "tif") form shall be effective as delivery of a manually executed counterpart of this Guaranty or such other document or instrument, as applicable. The exchange of copies of this Guaranty and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Guaranty as to the parties hereto and may be used in lieu of the original Guaranty and signature pages for all purposes.

SECTION 4.14 <u>Integration</u>. This Guaranty and the other Borrower Financing Documents, and any separate letter agreements with respect to fees constitute the entire contract of the parties relating to the subject matter hereof and supersede all previous agreements and understandings, written or oral, relating to the subject matter hereof. In the event of any conflict between the provisions of this Guaranty and those of (a) the Loan Agreement, the provisions of the Loan Agreement shall control, and (b) any other Borrower Financing Document not referenced in clause (a) above, the provisions of this Guaranty shall control; <u>provided</u> that the inclusion of supplemental rights or remedies in favor of the Trustee in any other Borrower Financing Document shall not be deemed a conflict with this Guaranty.

SECTION 4.15 <u>Advice of Counsel, No Strict Construction</u>. Each of the parties represents to each other party hereto that it has discussed this Guaranty with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Guaranty. In the event an ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Guaranty.

SECTION 4.16 <u>Acknowledgements</u>. The Guarantor hereby acknowledges that it has received a copy of the Loan Agreement and has reviewed and understands the same.

SECTION 4.17 <u>Release</u>. Subject to <u>Section 2.10</u> of this Guaranty, once the Guaranteed Obligations are no longer Outstanding, this Guaranty and all obligations (other than those expressly stated to survive such termination or as may be reinstated after such termination) of the Trustee and the Guarantor hereunder shall automatically terminate, all without delivery of any instrument or performance of any act by any party.

SECTION 4.18 <u>RIGHTS OF TRUSTEE</u>. Guarantor acknowledges and agrees that this Guaranty is provided to the Trustee in its capacity as such under the Indenture, and in taking any action hereunder, that Trustee shall enjoy all the rights, protections, benefits, immunities, powers, privileges and indemnities afforded to it under the Indenture and the other General Financing Documents. Notwithstanding anything else to the contrary set forth herein, whenever reference is made herein to any discretionary action by, consent, designation, specification, requirement or approval of, notice, request or other communication from, or other direction given or action to be undertaken (or not to be), suffered or omitted by the Trustee or to any election, decision, opinion, acceptance, use of judgment, expression of satisfaction or other exercise of discretion, rights or remedies to be made (or not to be made) by the Trustee, (i) such provision shall refer to the Trustee exercising each of the foregoing at the instruction of the holders of a majority in aggregate principal amount of the Bonds and (ii) it is understood that in all cases, the Trustee shall be fully justified in failing or refusing to take any such action if it shall not have received written instruction, advice or concurrence from the holders of a majority in aggregate principal amount of the Bonds in respect of such action. All rights of the Trustee to compensation and indemnification hereunder shall survive the termination of this Guaranty.

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IN WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty under seal by their duly authorized officers, all as of the day and year first above written.

SKY HARBOUR HOLDINGS IV LLC, as Guarantor<br>By: <u>/s/ Tal Keinan</u> <br> Name: <u>Tal Keinan</u> <br> Title: <u>Chief Executive Officer</u> <br>

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Acknowledged by the Trustee as of the day and year first<br> written above:<br>UMB BANK, N.A., as Trustee<br>By: <u>/s/ Michelle Mena-Rosado</u> <br> Name: <u>Michelle Mena-Rosado</u> <br> Title: <u>Vice President</u> <br>

[Signature Page to Guaranty]

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**<u>EXHIBIT A</u>**

**FORM OF SURPLUS CASH FLOW RELEASE CERTIFICATE** 

<u> </u>, 20___

Reference is hereby made to the Guaranty dated as of February __, 2026 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the "***Guaranty***") from SKY HARBOUR HOLDINGS IV LLC, a Delaware limited liability company (the "***Guarantor***"), in favor of UMB Bank, N.A., as trustee (in such capacity, the "***Trustee***"). Each initially capitalized term used herein, and not otherwise defined herein, has meaning given it in the Guaranty.

Pursuant to Section 3.2(c) of the Guaranty, the undersigned hereby certifies to the Trustee that as of the date of this Certificate, the Release Conditions have been satisfied.

Pursuant to Section 3.2(c) of the Guaranty, the undersigned hereby directs the Trustee to transfer funds on deposit in the 2026 Bond Surplus Cash Flow Account in the amount of $_________, as follows: ____________________.

[signatures on the following page]

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IN WITNESS WHEREOF, the undersigned has executed this certificate as of the date first above written.

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| |
|:---|
| SKY HARBOUR HOLDINGS IV LLC,<br> as Guarantor |
| By: |
| Name: |
| Title:  |
| ACKNOWLEDGED:<br>SKY HARBOUR CAPITAL III LLC, as<br> Borrower |
| By: |
| Name: |
| Title: |

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