Document:

Document

Exhibit 10.16

LEASE AGREEMENT

This LEASE AGREEMENT (“Lease”), dated as of October 30, 2020 (the “Effective Date”), is made and entered into by and between 1200 Research Owner, LLC, a Missouri limited liability company (“Landlord”), and Benson Hill, Inc., a Delaware corporation (“Tenant”).  Landlord and Tenant shall be individually be referred to as a “Party” and collectively as the “Parties”.  Landlord and Tenant hereby agree as follows:

ARTICLE 1 - DEFINITIONS

Unless the context otherwise specifies or requires, the following words and phrases shall have the meanings set forth below:

“Additional Rent” means any payment obligations of Tenant hereunder, except for Base Rent.

“Affiliate” means any person, controlling, controlled by, or under common control of or in partnership or in other active business with Tenant.  For purposes of this definition, “control”, “controlling” or “controlled by”, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such entity, whether through the ownership of voting securities, by agreement or otherwise.

“Alteration” means any addition, demolition, improvement, change to or renovation of the Building or the Equipment or any of their component parts made by, on behalf of or at the direction of Tenant, whether structural or non-structural, capital or non-capital other than repairs or replacements made in the ordinary course of maintaining the Building or Equipment, including, without limitation, any Tenant Improvements.

“Base Rent” means: (a) during the Initial Term, collectively, the Property Base Rent and the Equipment Base Rent; and (b) during the Extension Option Period, if exercised by Tenant, the Property Base Rent.

“Base Rent Schedule” means Exhibit F attached hereto, as the same may be amended, modified or confirmed from time to time upon written agreement by the Parties as provided herein.

“Building” means the approximately 46,722 rentable square foot building to be redeveloped by Landlord in accordance with the Plans, as the same may be expanded from time to time upon written agreement by the Parties.  
    
“Business Day” means any day other than a Saturday or Sunday or holiday on which banks in St. Louis, Missouri, are authorized or required to be closed. 

“Calendar Quarter” means any three (3) calendar month period ending on March 31, June 30, September 30 or December 31.
“Cash Equivalents” means, on any day:  (a) any evidence of debt issued by the United States government, or guaranteed as to the timely payment of principal and interest by the United States 
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government, and maturing 12 months or less after that day; (b) commercial paper issued by a corporation (other than a corporation in which Tenant or any shareholder, partner, member or non-member manager, or any direct or indirect legal or beneficial owner, of Tenant, from time to time, has a direct or indirect interest) organized under the laws of any state of the United States of America or of the District of Columbia, rated A-1 by Standard and Poor’s Ratings Service or the equivalent rating by another nationally-recognized ratings service acceptable to Landlord and having a stated maturity date 9 months or less after its issue date; (c) any certificate of deposit or banker’s acceptance issued by a commercial bank that is a member of the Federal Reserve System and has a combined unimpaired capital and surplus and unimpaired undivided profits of not less than $500,000,000, and maturing not more than 12 months after that day; (d) any cash available through an existing line of credit to Tenant; and (e) any binding commitments from investors to invest cash in Tenant in exchange for equity in Tenant; and (f) any repurchase agreement (i) entered into with any Federal Reserve System member commercial bank of the size referred to in clause (c) above, (ii) secured by any obligation of the type described in any of clauses (a)-(c) above and (iii) having a market value on its date of at least 100% of the repurchase obligation of that commercial bank.

“Change Order” is a written agreement between the Parties hereto providing for one or more of the following:  (i) a change in the Contract Sum, or (ii) a change in the Plans.

“City” means the Creve Coeur, Missouri .

“Commencement Date” means the last to occur of (a) the date on which Substantial Completion of the Project is achieved and (b) the date on which Landlord delivers possession of the Premises to Tenant, except to the extent expressly provided to the contrary in this Lease.

“Commissioning Date” means the date on which the stage of installation of the Equipment has occurred such that Tenant may commence commissioning the first growth chamber at the Premises.

“Commissioning Work” is defined in the Work Letter.

“Construction Contract” means that certain construction contract between Landlord, as owner, and Contractor, as contractor, as the same may be amended from time to time.

“Contingency Date” is defined in Article 23.

“Contract Sum” means, as of any date, the lump sum or guaranteed maximum price, as applicable, under the Construction Contract.

“Contractor” is defined in the Work Letter.

“Default Rate” means a variable rate of interest equal to five percent (5%) over the prime rate of interest as reported in The Wall Street Journal from time to time, or any successor publication designated by Landlord providing comparable information.

“Due Diligence Documents” means those materials described on Exhibit K hereto.

“Early Entry Date” is defined in the Work Letter.

“Early Entry Period” is defined in the Work Letter.
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“Early Entry Work” is defined in the Work Letter.

“Early Growth Chamber Operations” is defined in Section 4.6.

“Equipment” means the equipment set forth on Exhibit B attached hereto.

“Equipment Base Rent” means the base rent for Tenant’s lease of the Equipment to be paid during the Initial Lease Term as set forth on the Base Rent Schedule.

“Equipment Costs” means the total hard costs incurred by Landlord in connection with acquiring the Equipment for the Project, which shall include: (a) the cost of the Equipment; (b) transportation costs of the Equipment; and (c) sales tax applicable to the Equipment.

“Event of Default” is defined in Section 12.1.

“Excess Bad Weather Lost Days” means any Lost Days caused primarily by adverse weather conditions, or adverse site conditions caused by adverse weather, in excess of twenty (20) such Lost Days during the Project.

“Excusable Delay” means delay in the Project caused by any one or more of the following:  Force Majeure Causes (provided, however, that for purposes of this definition, adverse weather and adverse site conditions caused by adverse weather shall only be considered to the extent the same result in Excess Bad Weather Lost Days), Unforeseen Conditions or errors and omissions in the Plans caused by Tenant or its consultants, contractors, agents or employees.  In no event shall Excusable Delay include delays caused by Landlord’s failure to perform its obligations under the Construction Contract or the Architect’s Agreement.

“Expiration Date” shall mean 11:59 p.m. (St. Louis time) on the last day of the twentieth (20th) Lease Year, as the same may be accelerated or extended as provided in this Lease. 

“Extension Option” is defined in Section 4.2.

“Extension Option Period” is defined in Section 4.2.

“Force Majeure Causes” means circumstances beyond the reasonable control of the party claiming the occurrence of Force Majeure Causes, including, without limitation, the following: strikes, picketing, sabotage or labor disputes; labor shortages; adverse weather conditions; adverse site conditions caused by adverse weather conditions; fire or other unavoidable casualties; hurricane, tornado, windstorm, flood, earthquake or acts of God; epidemic or pandemic; unavailability of materials  or utilities not caused by the claiming party’s negligence, wrongful acts or omissions (including, without limitation, delays in the manufacturing of the Equipment and customs delays with respect to Equipment or materials being imported into the United States); war, invasion, civil commotion, embargo, terrorist attacks, riots or public insurrection; delays caused by any act or failure to act by any Governmental Authority (including, without limitation, delays in the issuance of permits, licenses and approvals required for the Project); and litigation reasonably delaying the Project not caused by the fault of the party claiming Force Majeure Causes.

“Governmental Authority” means any one of the following: the United States of America; the State; the county in which the Land is located; the City, or any agency or department thereof, or any 
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court or administrative body, having jurisdiction over the Land, the Project or the Building, or Tenant’s Permitted Use.

“Hazardous Substance” is defined in Section 19.1.1.

“Initial Term” means the period commencing on the Commencement Date and ending at 11:59 p.m. (St. Louis time) on the last day of the twentieth (20th) Lease Year, as the same may be accelerated as provided in this Lease.

“Land” means the land upon which the Building will be constructed, which address is commonly known as 1200 Research Blvd., Creve Coeur, St. Louis County, Missouri 63132 and legally described on Exhibit A attached hereto.

“Landlord Indemnified Parties” means Landlord and its members, managers, officers, directors, shareholders, parent affiliated companies, employees, agents, contractors, including, without limitation, Contractor and its subcontractors and any and all Mortgagees.

“Landlord’s Address for Notices” is as follows:

1200 Research Owner, LLC
6 Countryside Lane
St. Louis, Missouri 63131
Attention: Felix Williams
Email Address:     fwilliams@lagomaj.com

“Law(s)” means all applicable laws, ordinances, rules, regulations, codes, orders, permits, decrees or requirements of all governmental authorities having jurisdiction over the Premises or the Project.

“Lease Term” or “Term” means the period commencing on the Commencement Date and ending on the Expiration Date.

“Lease Year” means: (a) if the Commencement Date does not occur on the first day of a calendar month, each period of twelve (12) consecutive calendar months commencing on the first day of the month immediately following the month in which the Commencement Date occurs, and on each anniversary of such date, provided that the first Lease Year shall also include the period from the Commencement Date to the first day of the calendar month immediately following the Commencement Date; or (b) if the Commencement Date occurs on the first day of a calendar month, the twelve (12) month period beginning on the Commencement Date and any successive twelve (12) month periods thereafter occurring during this Lease; whichever is applicable.

“Liquidity” means, on any day, Tenant’s unrestricted cash and Cash Equivalents and Tenant has ready access to such unrestricted cash and Cash Equivalents.  Liquidity may not include any cash or Cash Equivalents that are held as restricted cash or specially designated accounts relating to cash reserve requirements of lenders or regulatory or governmental agencies.
“Loan Documents” means all documents, instruments and agreements which evidence secure and guarantee the obligations of Landlord under any Mortgage Loan.

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“Lost Day” means any day on which more than sixty percent (60%) of the Work then scheduled did not occur.

“Minor Change” means a nonmaterial change to the Plans or substitution of material or equipment of like quality approved by Landlord and which (a) does not increase the cost of the Work to Landlord, (b) does not increase the time required to complete the Project, (c) is consistent with the intent and design concept expressed in the Plans, (d) does not adversely affect the quality of the material or workmanship expressed in the Plans or the utility of the Premises, and (e) conforms to all Laws.

“Mortgage” means any deed of trust, mortgage, security agreement, assignment of rents or comparable collateral documents granted by Landlord and affecting Landlord’s interest in the Premises.

“Mortgage Lender” means, as of any date, the holder of a Mortgage on such date.

“Mortgage Loan” means any loan secured by a Mortgage.

“Net Decrease” is defined in the Work Letter.

“Net Increase” is defined in the Work Letter.

“Other Taxes” is defined in Section 6.3.

“Outside Completion Date” means October 15, 2021.  Such date shall be extended by Tenant Delay and Excusable Delay.  Without limiting the foregoing, if Landlord has not received all governmental licenses, permits and approvals required to commence all critical path construction activity with respect to the Project by January 15, 2021, then such date shall be extended by the number of days after January 15, 2021 until the date Landlord has received all such licenses, permits and approvals.

“Payment Dates” means the dates on which Tenant shall make monthly payments of Base Rent to Landlord hereunder, which are as follows:

(a)    The first Payment Date shall be the Commencement Date;

(b)    The Payment Date for each calendar month after the Commencement Date occurs until the end of the Lease Term shall be the first day of each such month; and

(c)    If any Payment Date determined as aforesaid is on a day other than a Business Day, then such Payment Date shall be extended until the next Business Day.

“Permitted Exceptions” means (a) all easements, conditions, restrictions, deed reservations, rights of way and other matters of record which (i) affect Landlord’s title to the Land on the date hereof, or (ii) are granted after the date hereof by Landlord and which are required in connection with the development of the Project and do not interfere with or restrict Tenant’s access to the Premises or the ability of Tenant to use the Premises for Tenant’s Permitted Use unless approved by Tenant in writing, and (b) all applicable zoning regulations.

“Plans” is defined in the Work Letter.
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“Preliminary Plans” is defined in the Work Letter.

“Preliminary Project Budget” means the estimate of the Project Costs as of the Effective Date, which estimate is set forth in a separate written instrument signed by the Parties. 

“Premises” means, during the Initial Term, collectively, the Property and the Equipment.  The “Premises” during the Extension Option Period means the Property.

“Proceeds” is defined in Section 14.2.

“Project” means the work (including, without limitation, all labor, material and equipment) required to construct and complete the improvements described in the Plans including, without limitation, construction of the Building and acquisition and installation of the Equipment and all related on and off site improvements, utilities, detention areas, parking facilities, driveways, sidewalks and landscaping; excluding, however, the Tenant Improvements.

“Project Allowances” is defined in the Work Letter.

“Project Budget” is defined in the Work Letter. 

“Project Costs” means the total hard and soft costs incurred by Landlord in connection with acquiring the Land, designing and constructing the Project, financing the Project and otherwise performing Landlord’s obligations under this Lease and achieving final and lien free completion of the Project, including, without limitation, the Equipment Costs. 

“Property” means the Land, the Building and all related site improvements, parking facilities, driveways, sidewalks and landscaping.

“Property Base Rent” means the base rent for Tenant’s lease of the Property to be paid during the Property Lease Term as set forth on the Base Rent Schedule.

“Property Management Services” means those property management services to be performed by Landlord as more particularly set forth on, and subject to the terms and provisions of, Exhibit G attached hereto.

“Punch List” is defined in the Work Letter.

“Real Estate Taxes” is defined in Section 6.1.

“Rent” means, collectively, Base Rent and Additional Rent.

“Rent Commencement Date” means the Commencement Date, as the same may be accelerated or extended as provided in this Lease.

“Repairs” is defined in Section 9.1.

“Restoration” is defined in Section 14.1.

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“Security Deposit” means the amount of $1,000,000.00, to be deposited with, and held by, Landlord as provided herein.

“State” means the State of Missouri.

“Substantial Completion” means that stage in the progress of the Work when the Equipment has been installed in substantial accordance with the Plans and the Building is sufficiently complete such that a temporary certificate of occupancy is issued (provided, however, that if Tenant delays in taking any actions required of Tenant to cause issuance of such permit or if such permit is not issued due to the Tenant Improvements not being completed, then Substantial Completion shall be deemed to have occurred on the date when such permit could have been issuable in the absence of such delays), subject to the completion of (a) customary punch list items which do not have a material adverse effect on the ability of Tenant to use the Premises for Tenant’s Permitted Use, (b) any work to be performed by Tenant which is not included within the scope of work described in the Plans, including any Tenant Improvements and (c) any work to be performed by Tenant’s Vendors, whether or not described in the Plans.  In the event of any dispute as to whether Substantial Completion has occurred, a certificate of substantial completion, executed by Landlord’s architect stating that the Work has been substantially completed and that the elements of Substantial Completion in accordance with the definition of this Lease have been met, and such affidavit shall be conclusive and binding evidence that Substantial Completion has occurred as of the date indicated in such certificate.  

“Target Completion Date” means September 1, 2021.  Such date shall be extended by Tenant Delay and Excusable Delay.  Without limiting the foregoing, if Landlord has not received all governmental licenses, permits and approvals required to commence all critical path construction activity with respect to the Project by January 15, 2021, then such date shall be extended by the number of days after January 15, 2021 until the date Landlord has received all such licenses, permits and approvals.

“Taxes” is defined in Section 6.3.

“Tenant Delay” means any delay in the completion of the Project caused by (1) changes requested by Tenant to the Plans or the Work, (2) any failure of Tenant to make decisions regarding material, equipment, layout, color or other comparable matters, or provide an approval or detailed disapproval with any matter pertaining to the Project, within five (5) days after Landlord’s written request therefor, unless a longer period of time for such approval or disapproval is expressly set forth herein, (3) delays caused by Tenant’s operations at the Premises or any work performed or to be performed by Tenant, its agents or employees or any of Tenant’s Vendors, including, without limitation, in connection with the Tenant Improvements, the Early Entry Work, the Commissioning Work or the Early Growth Chamber Operations, (4) any Event of Default on the part of Tenant hereunder, or (5) any other circumstances or delays caused in whole or in part by Tenant. 

“Tenant Equipment” means that equipment owned by Tenant pursuant to Section 10.6.

“Tenant Improvements” means those improvements to be constructed and paid for by Tenant, and not included within the Plans, for Tenant’s initial occupancy of the Premises, if any.

“Tenant Indemnified Parties” means Tenant and its officers, directors, shareholders, parent company, affiliated companies, employees, agents and contractors.  

“Tenant Required Insurance” is defined in Section 11.1.
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“Tenant’s Address For Notices” is as follows:

BENSON HILL, INC.
1001 N. Warson Rd. Suite 200
St. Louis, MO  63132
Attention: Legal Department
Email Address: legal@bensonhill.com

With a copy to:

KOLEY JESSEN P.C., L.L.O.
1125 S. 103rd Street, Suite 800
Omaha, Nebraska 68124
Attention: Matthew Speiker
Email: matthew.speiker@koleyjessen.com

“Tenant’s Permitted Use” shall mean the use of the Premises for light industrial use, which may include, but is not limited to, the operation of agricultural growth chambers, agricultural seed storage and handling and office uses ancillary thereto, to the extent permitted under applicable Law and the Permitted Exceptions.

“Tenant’s Vendors” means any other person or entity under contract with Tenant or under contract with any party under contract with Tenant (excluding, however, Landlord, Contractor and their respective subcontractors and suppliers); and “Tenant Vendor” means any one of the foregoing.

“Unforeseen Condition” means any condition encountered at the Premises which differs materially from those conditions indicated in the Due Diligence Documents with respect to the Land or which are unknown physical conditions of an unusual nature, which differ materially from those ordinarily found to exist.

“Warranty Schedule” means the Schedule of Warranties attached hereto as Exhibit D.

“Work” means all services, labor, material and equipment required to be provided by Landlord to complete the Project.

“Work Letter” means the Work Letter attached hereto as Exhibit C.

ARTICLE 2 - PREMISES

2.1    Lease.  Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises, on the terms and subject to the conditions in this Lease.  Tenant’s leasehold rights hereunder are subject to, and Tenant shall not cause any breach of, the terms and provisions of each of the Permitted Exceptions. 

2.2    Title Exceptions.  Landlord reserves the right, from time to time, to grant such easements, rights and dedications (and to amend, modify or terminate any easements, rights or agreements) affecting the Property as Landlord deems necessary or desirable, as long as the same do not adversely affect or restrict Tenant’s access to or Tenant’s Permitted Use of the Premises in any respect, unless approved by Tenant in writing.  At Landlord’s request, except as otherwise set forth in 
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this Lease, Tenant shall join in the execution of any of the aforementioned documents or shall subordinate Tenant's interest in the Premises to any rights created under said documents.

ARTICLE 3 - PROJECT

3.1    Construction of the Premises.  

3.1.1    Landlord shall enter into the Construction Contract with Contractor pursuant to which Contractor will agree for the benefit of Landlord and Tenant to construct the Building and the other portions of the Project in substantial compliance with the Plans.  The Equipment for the Project shall meet those specifications set forth on Exhibit B, as the same may be modified by the Plans, the process set forth in Section 3.3.1 of the Work Letter or the written agreement of the Parties.  Promptly following the completion of the final Plans pursuant to Work Letter, Landlord shall, or shall cause Contractor to, apply for and diligently pursue all governmental licenses, permits and approvals required to commence all critical path construction activity with respect to the Project.  

3.1.2    Landlord and Tenant shall endeavor to cause the Commissioning Date to occur during the period from July 1, 2021 to the Target Completion Date (as the same may be extended for Excusable Delay and Tenant Delay), provided, however, that Landlord shall have no liability hereunder for failure of the Commissioning Date to occur prior to or during such period, nor shall the same entitle Tenant to any penalties, abatement of rent or other damages hereunder.

3.1.3    Landlord shall endeavor to cause Substantial Completion to be achieved in substantial compliance with the Plans (which shall include all building systems being in good working order and repair) and endeavor to deliver the Building to Tenant on or before the Target Completion Date; provided, however, that Landlord shall have no liability hereunder for failure of Substantial Completion to occur by the Target Completion Date, nor shall the same entitle Tenant to any penalties, abatement of rent or other damages hereunder.  

3.1.4    Landlord shall cause Substantial Completion to be achieved in substantial compliance with the Plans (which shall include all building systems being in good working order and repair) and deliver the Building to Tenant on or before the Outside Completion Date.  In the event Landlord fails to achieve Substantial Completion on or before the Outside Completion Date, then, as its sole and exclusive remedy (except as otherwise expressly provided in this Section 3.1) with respect to such late delivery, Tenant shall be entitled to a credit towards the Base Rent payable hereunder in an amount equal to $5,000 per day for each day after the Outside Completion Date until Substantial Completion is achieved (the “Late Delivery Charge”); provided, however, if the Commissioning Date has occurred or the Early Growth Chamber Operations have commenced, then such Late Delivery Charge shall be reduced to $2,500 per day.  Such Late Delivery Charge shall be credited against the installments of Base Rent first becoming due hereunder.  In the event Landlord fails to achieve Substantial Completion on or before January 15, 2022, as such date shall be extended for Tenant Delay, Excused Delay and any delays in the issuance of all governmental licenses, permits and approvals required to commence all critical path construction activity with respect to the Project beyond January 15, 2021, and in addition to the accrual of the Late Delivery Charge, Tenant shall have the right to notify Landlord in writing that Tenant intends to take over the performance of the Work from Landlord and complete the same, and if Landlord fails to achieve Substantial Completion within fifteen (15) days after Tenant gives such written notice to Landlord, Tenant shall have the right to perform Landlord’s obligations hereunder with respect to the performance of the Work and complete the same in accordance with the Plans.  If Tenant elects to take over performance of the Work as aforesaid, then Landlord shall reimburse Tenant for the actual, out-of-pocket costs incurred 
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by Tenant to complete the Work, together with a five percent (5%) administrative fee on such Tenant costs; provided, however, that the aggregate amount of such reimbursement shall not exceed an amount equal to the sum of (a) the aggregate remaining Project Costs as set forth in the Project Budget as of the date Tenant takes over performance of the Work, plus (b) $2,000,000.  Landlord shall make such reimbursement to Tenant within thirty (30) days after receipt of Tenant’s written request for reimbursement, together with invoices substantiating the amount of such costs.  To the extent that Landlord fails to reimburse Tenant within said thirty (30) day period, Tenant shall have the right to set off such unreimbursed costs against the next installments of Base Rent payable hereunder.  In addition, if Tenant takes over performance of the Work as aforesaid, the Late Delivery Charge shall cease to accrue on the sooner of (i) Substantial Completion, and (ii) the date which is sixty (60) days after Tenant takes over performance of the Work.  Additional rights and obligations of the Parties with respect to the Project are set forth in the Work Letter which forms a part of this Lease.

3.2    Landlord Disclaimer.  Tenant acknowledges and agrees that, except as otherwise expressly set forth in this Lease, no representations or warranties have been made by Landlord, Contractor, or any person, firm or agent acting or purporting to act on behalf of Landlord, as to (i) the quality or accuracy of any of the Plans not prepared under the supervision of Landlord, (ii) the presence or absence on, under or affecting the Land of any particular materials or substances (including, without limitation, Hazardous Substances), (iii) the subsurface conditions of the Land or any portion thereof, (iv) the value, expense of operation or income potential of the Premises before, during or after completion of the Project, (v) the accuracy or completeness of any title, survey, structural reports, environmental audits or other information provided to Tenant relative to the Premises (regardless of whether the same were retained or paid for by Landlord, or (vi) any other fact or condition which has or might affect the Premises or the condition, repair, value, expense of operation or income potential thereof.

3.3    Final Completion Confirmation Agreement.  Upon final completion of the Project, each Party agrees to execute and deliver an amendment to this Lease confirming the Commencement Date, the Rent Commencement Date, the Expiration Date and the Base Rent; provided, however, that the failure of either Party to execute and deliver such an amendment shall not affect the rights or obligations of the Parties under this Lease.

ARTICLE 4 - TERM

4.1    Lease Term.  

4.1.1.     Property.  The term of this Lease with respect to the Property shall be for the Lease Term. 

4.1.2     Equipment.  The term of this Lease with respect to the Equipment shall be for the Initial Term, as the same may be sooner terminated as provided in this Lease.  For the avoidance of doubt, Tenant’s rights hereunder with respect to the Extension Option shall apply to the Property only, and not the Equipment. 

4.2    Option to Extend Lease Term.  Tenant shall have the option (the “Extension Option”) to extend the Lease Term with respect to the Property for one period of fifteen (15) years (such period being referred to herein as the “Extension Option Period”).  In order to exercise the Extension Option: (a) Tenant shall be required to give written notice thereof to Landlord no sooner than eighteen (18) months and no later than twelve (12) months prior to the Expiration Date; (b) Tenant shall have either (i) entered into a separate lease agreement with Landlord pursuant to which Tenant shall lease the 
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Equipment from Landlord for a term equal to and coterminous with the Extension Option Period for the fair market rental value of the Equipment during such term, or (ii) acquired the Equipment from Landlord (such acquisition to occur on the last Business Date of the Initial Term) for the fair market value thereof; and (c) no Event of Default shall have occurred and be continuing on either the date Tenant exercises the Extension Option or the first day of the Extension Option Period.  For purposes of the foregoing, the fair market value of the Equipment shall mean the appraised value thereof as determined by an appraiser mutually acceptable to Landlord and Tenant, less the aggregate amount of all out-of-pocket costs and expenses actually incurred by Tenant for the replacement of any Equipment by Tenant that is not Replacement Eligible Equipment (as defined below) during the Initial Term and for Repairs to the Equipment (including, for the avoidance of doubt, any payments by Tenant towards maintenance and service contracts for the Equipment, and excluding, for the avoidance of doubt, the costs of an new or replacement Equipment purchased by Tenant which remains the property of Tenant) during the final six (6) Lease Years of the Initial Term; provided, however, in no event shall the fair market value thereof be less than $1.00.  If Tenant exercises the Extension Option, the Base Rent payable during the Extension Option Period shall be determined pursuant to Exhibit H attached hereto.  If Tenant exercises the Extension Option as aforesaid, the Lease Term and the Expiration Date shall be extended by the Extension Option Period with respect to the Property and Tenant shall occupy the Property under all of the terms, conditions and provisions of this Lease except with respect to the following:  (i) the amount of Base Rent, which shall be determined as provided in this Section; (ii) the Lease Term and Expiration Date which shall be extended as aforesaid with respect to the Property, but not the Equipment; and (iii) Tenant shall have no further right to extend or renew this Lease beyond the Extension Option Period.

4.3    Showing of Premises.  Landlord reserves the right to display on the Premises (i) at any time, all "For Sale" signs Landlord deems necessary or desirable, and (ii) during the last twelve (12) months of the Lease Term, all "For Lease" signs relating to the Premises as Landlord deems necessary or desirable.  The placement of such signs shall not unreasonably interfere with Tenant's access to or business operations in the Premises.  Upon at least forty-eight hours prior written notice to Tenant, Landlord may show the Premises and all parts thereof to any prospective buyers, mortgagees or tenants during normal business hours, provided Landlord uses commercially reasonable efforts to minimize any interruption in Tenant’s business operations in the Premises at the time of such showings.

4.4    Condition of Premises at End of Lease Term.  At the expiration or earlier termination of the Lease Term, Tenant shall: (a) surrender possession of the Premises (excluding the Equipment if, but only if, Tenant has acquired the Equipment from Landlord) in broom-clean condition and good repair, ordinary wear and tear and damage by casualty or condemnation excepted; provided, however, that Tenant, at Tenant’s sole expense, shall be obligated to cause all building systems to be in working order; and (b) remove all of Tenant’s interior and exterior signs, trade fixtures and personal property (including the Equipment if, but only if, Tenant has acquired the Equipment from Landlord) from the Property and repair any damage caused by such removal to Landlord’s reasonable satisfaction.  If Tenant fails to leave the Premises in such condition, then Landlord shall have the right to repair and restore the same to such condition and Tenant shall immediately reimburse Landlord for the cost thereof plus an administrative fee of five percent (5%) of the costs thereof. 

4.5    Holdover.  At the termination of the Lease Term by lapse of time or otherwise, Tenant shall deliver immediate possession of the Premises (excluding the Equipment if, but only if, Tenant has acquired the Equipment from Landlord) in accordance with this Lease.  If Tenant fails to surrender possession of any portion of the Premises when required hereunder, then, in addition to any other of Landlord's rights and remedies, Tenant will be liable to Landlord for (a) monthly base rent 
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for each calendar month or portion of a calendar month during the period of holdover at a rate equal to 150% of the Base Rent in effect immediately prior to such holdover, and (b) any and all losses, damages, excluding consequential and indirect damages, and expenses that Landlord shall suffer as a result of such failure to surrender possession.  Without limiting the generality of the foregoing, Tenant shall indemnify, defend (by counsel acceptable to Landlord) and hold Landlord harmless from any losses, damages and expenses suffered by Landlord resulting from Landlord's inability to deliver possession of the Premises (or any portion thereof) to any possible succeeding tenant which inability results from Tenant's failure to surrender possession of the Premises as required herein.  Such indemnification shall be in addition to any other right or remedy available to Landlord under this Lease or applicable Law in the case of any holding over of the Premises beyond the expiration or earlier termination of the Lease Term.

4.6    Early Operations.  If Tenant desires to commence the operation of one or more growth chambers at the Premises (the “Early Growth Chamber Operations”) (as distinguished from performing the Commissioning Work, as described in the Work Letter) after the completion of the Commissioning Work, but prior to Substantial Completion, Tenant shall deliver written notice to Landlord requesting such Early Growth Chamber Operations.  Landlord shall review such request with Contractor to determine whether, in Landlord’s and Contractor’s reasonable opinion, such Early Growth Chamber Operations can be undertaken so as not to interfere with or delay the Project or any component part thereof, can be safely performed and can occur without the issuance of a certificate of occupancy.  If Landlord and Contractor make such determination, as communicated to Tenant in writing, then Tenant shall have the right to commence the Early Growth Chamber Operations with respect to those growth chambers approved by Landlord, subject to the following requirements:

(a)    Any entry onto the Premises by Tenant or its agents, employees or Tenant’s Vendors shall be at Tenant’s sole risk and expense;

(b)    All Early Growth Chamber Operations shall be coordinated in advance with Landlord and Contractor and, further, shall be performed in compliance with such reasonable rules, regulations and requirements as Landlord or Contractor, or both, may impose or as may be necessary to avoid delays in the Project and to preserve the safety of the Project.  Without limiting the foregoing, such requirements imposed by Landlord or Contractor may include phasing of, limitations on or prohibitions against performance of the Early Growth Chamber Operations, taking into consideration the state of completion of the electrical and other utility and building systems work to be performed as part of the Project and all applicable Laws;

(c)    Tenant shall not interfere with Landlord, Contractor or any of Landlord’s other contractors in performing any Early Growth Chamber Operations;

(d)    No Tenant Vendor employed by Tenant as part of the Early Growth Chamber Operations shall cause any labor difficulties with the labor employed by Landlord, Contractor or its subcontractors (of any tier) and if difficulties are encountered by Landlord, Contractor or its subcontractors, then Tenant shall cause the laborers causing such difficulties to leave and not re-enter the site;

(e)    Tenant shall comply with and be bound by all provisions of the Lease during the period commencing on the commencement of the Early Growth Chamber Operations and ending on the Commencement Date; provided, however, that the monthly Base Rent payable by Tenant during such period shall be an amount equal to (i) the 
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Equipment Base Rent payable during the first month of the Lease Term, multiplied by (ii) a fraction, the numerator of which is the rentable square footage of the growth chambers with respect to which Tenant is permitted to perform the Early Growth Chamber Operations, and the denominator of which is the total rentable square footage of all of the growth chambers at the Premises, which Base Rent shall be payable on the first day of each month in advance (and shall be prorated for any partial calendar months during such period).  For the avoidance of doubt, Tenant shall be responsible for all operating costs, including utility charges, incurred in connection with the Early Growth Chamber Operations and, if not billed directly to Tenant by the applicable third party provider, shall be reimbursed to Landlord within thirty (30) days after Landlord’s delivery of an invoice to Tenant therefor;

(f)    Prior to entry upon the Premises by Tenant, Tenant agrees to pay for and provide to Landlord certificates evidencing that Tenant has then obtained and is maintaining all Tenant Required Insurance; 

(g)    Tenant and its agents and contractors agree to comply with all Laws relating in any way to the Early Growth Chamber Operations, including, without limitation, refraining from taking any actions requiring a certificate of occupancy if such certificate of occupancy has not been issued; and 

(h)    In no event shall Tenant’s right to perform the Early Growth Chamber Operations include the right for Tenant to commence any other business operations at the Premises prior to the Commencement Date.

Except to the extent of the negligence or willful acts of Landlord, the Contractor (and the Contractor’s subcontractors and suppliers) and their respective agents and employees, Tenant hereby agrees to indemnify, defend and hold harmless the Landlord Indemnified Parties from and against any and all actions, claims, liens, liabilities, losses, damages, penalties and expenses (including, without limitation, attorneys’ fees and legal costs) suffered or incurred by any one or more of the Landlord Indemnified Parties to the extent caused by the Early Growth Chamber Operations or the entry onto the Premises by any one or more of Tenant, Tenant’s Vendors and their respective employees, agents or contractors, in advance of the Commencement Date.  Tenant does hereby agree to assume all risk of loss or damage to any of Tenant’s inventory, equipment, supplies or raw materials placed on or around the Premises by Tenant or its agents or contractors.

ARTICLE 5 - RENT

5.1    Base Rent.  On each Payment Date during the Lease Term, Tenant shall pay to Landlord, by wire transfer of good funds, the amount of the monthly installment of Base Rent required to be paid on such Payment Date as set forth on the Base Rent Schedule, without any set off or deduction whatsoever.  Tenant shall pay to Landlord in good funds each such installment of Base Rent on the Payment Dates pursuant to such wire transfer instructions as Landlord from time to time may designate.  Base Rent for any partial calendar month at the beginning of the Lease Term, if any, shall be pro-rated on a daily basis (at the rate of one thirtieth (1/30th) of the monthly installment of Base Rent) for each day from the Rent Commencement Date through the last day of the month during which the Rent Commencement Date occurs and shall be included paid along with the first monthly installment of Base Rent.  

5.2    Additional Rent. All amounts which Tenant is required to pay pursuant to this Lease (other than Base Rent), including, without limitation, any amount which Tenant becomes obligated to 
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pay pursuant to any indemnification or reimbursement obligation, together with every fine, penalty, interest and cost which may be added for non-payment or late payment thereof, shall constitute additional rent reserved herein and shall be included within the term “Additional Rent” as used in this Lease.  Tenant’s obligation to pay any and all Base Rent and Additional Rent which accrues during the Lease Term shall survive any termination or expiration of the Lease Term.  

5.3    Interest on Past Due Rent; Late Charge.  If Tenant shall fail to pay any Base Rent or Additional Rent or any other sum due hereunder when the same shall become due, Landlord shall have all rights, powers and remedies with respect thereto as are provided herein or by law in the case of non-payment of rent and shall, except as expressly provided herein, have the right to pay the same on behalf of Tenant.  Tenant shall pay to Landlord interest on all past-due Rent at a rate of interest per annum, compounded monthly, equal to the Default Rate (but in no event shall the Default Rate exceed the maximum amount permitted by law) in either case, from the due date thereof until paid by Tenant.  Tenant shall perform all its obligations under this Lease at its sole cost and expense, and shall pay all Base Rent, Additional Rent and any other sum due hereunder when due and payable, without notice or demand and without abatement, deduction or set-off.  In addition to the foregoing, Tenant shall pay to Landlord a late charge equal to five percent (5%) of the amount of any installment of Base Rent or Additional Rent if such installment is received by Landlord more than ten (10) days after the due date thereof; provided, however, with respect to the first such late payment occurring during any twelve (12) month period during the Lease Term, such late charge shall not be assessed against such payment if such payment is made to Landlord within five (5) days after Landlord gives written notice of such late payment to Tenant.

5.4    Tenant Obligations for Costs and Expenses; No Termination or Offset.  It is the intent of the Parties that Tenant shall be solely responsible for and pay all costs and expenses relating to the use, operation, enjoyment, repair, maintenance, and replacement of the Premises and each part thereof, except for Landlord’s obligations with respect to: (a) Real Estate Taxes and Personal Property Taxes as set forth in Sections 6.1 and 6.2, (b) any costs or expenses related to Landlord’s Repair obligations set forth in Section 9.3, (c) Landlord’s Required Insurance as set forth in Section 11.2, (d) those costs and expenses which are the express obligation of Landlord pursuant to the Property Management Services set forth on Exhibit G, if any, and (e) any other costs or expenses which are the express obligation of Landlord under this Lease.  Tenant shall pay all such amounts directly to the Party entitled thereto and, if Landlord shall pay any such amounts, Tenant shall reimburse Landlord for such amounts on demand as Additional Rent hereunder.  Any present or future law to the contrary notwithstanding, this Lease shall not terminate, except as otherwise expressly provided herein, nor shall Tenant be entitled to any abatement or reduction, set-off, counterclaim, defense or deduction with respect to any Base Rent, Additional Rent or other sums payable hereunder. The Parties intend that the obligations of Tenant hereunder shall be separate and independent covenants and agreements and shall continue unaffected unless such obligations shall have been modified or terminated pursuant to an express provision of this Lease.  Notwithstanding anything to the contrary in the foregoing, nothing in the foregoing shall be deemed to relieve Landlord from liability for the failure of Landlord to perform Landlord’s express obligations under this Lease.

5.5    Bankruptcy of Landlord.  Provided Tenant’s occupancy rights to the Premises are not disturbed, Tenant shall remain obligated under this Lease in accordance with its terms and shall not take any action to terminate, rescind or avoid this Lease, notwithstanding any bankruptcy, insolvency, reorganization, liquidation, dissolution or other proceeding affecting Landlord or any action with respect to this Lease which may be taken by any trustee, receiver or liquidator or by any court.

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5.6    No Implied Contract Rate.  Any statement of the number of square feet comprising the  Building or the Land is for reference purposes only.  The gross dollar amount of Base Rent to be paid by Tenant hereunder shall be as set forth herein notwithstanding any discrepancy which may be later found to exist between the number of square feet of the Building or the Land as stated in this Lease and the actual number of square feet thereof.

5.7    Accord and Satisfaction.  No payment by Tenant or receipt by Landlord of an amount less than is due hereunder shall be deemed to be other than payment towards or on account of the earliest portion of the amount then due by Tenant nor shall any endorsement or statement on any check or payment (or in any letter accompanying any check or payment) be deemed an accord and satisfaction (or payment in full), and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such amount or pursue any other remedy provided herein or otherwise available at law or in equity.

ARTICLE 6 - TAXES

6.1    Real Estate Taxes.  Landlord shall be responsible for all real estate taxes and assessments and any and all payments in lieu of such taxes (all such taxes and payments in lieu of taxes being collectively referred to herein as “Real Estate Taxes”) levied against the Property which are attributable to the period commencing on the date of this Lease and ending on the last day of the Lease Term.  To the extent that the Real Estate Taxes exceed $450,000 (the “Real Estate Tax Cap”) for any calendar year, Tenant shall pay to Landlord the amount by which such Real Estate Taxes exceed the Real Estate Tax Cap as Additional Rent hereunder within thirty (30) days after Landlord’s written request for such payment; provided, however, in no event shall Tenant be responsible for payment of fines, costs, late charges, liquidated damages, penalties, tax penalties, or related interest charges related to Landlord’s failure to timely pay the Real Estate Taxes unless resulting from Tenant’s failure to timely pay any amount it is required to pay under this Section 6.1.

6.2    Personal Property Taxes.  Landlord shall be responsible for all personal property taxes and assessments levied (all such taxes being collectively referred to herein as “Personal Property Taxes”) levied against the Equipment which is attributable to the period commencing on the date of this Lease and ending on the last day of the Initial Term.  To the extent that the Personal Property Taxes levied against the Equipment exceed $300,000 (the “Personal Property Tax Cap”) for any calendar year, Tenant shall pay to Landlord the amount by which such Personal Property Taxes levied against the Personal Property exceed the Personal Property Tax Cap as Additional Rent hereunder within thirty (30) days after Landlord’s written request for such payment; provided, however, in no event shall Tenant be responsible for payment of fines, costs, late charges, liquidated damages, penalties, tax penalties, or related interest charges related to Landlord’s failure to timely pay the Personal Property Taxes unless resulting from Tenant’s failure to timely pay any amount it is required to pay under this Section 6.2.  Tenant shall be responsible for, and pay as and when due and on or before the date on which any penalties or interest commences to accrue, all Personal Property Taxes levied against Tenant’s personal property, furniture, trade fixtures and equipment (which, for the avoidance of doubt, excludes the Equipment) attributable to the period commencing on the date of this Lease and ending on the last day of the Initial Term.

6.3    Other Taxes.  Tenant shall pay, as and when due and on or before the date on which any penalties or interest commences to accrue (and as Additional Rent due hereunder), all Other Taxes (as defined hereinafter) which are attributable to the period commencing on the Commencement Date and ending on the last day of the Lease Term.  For the purpose of this Lease, the term “Other Taxes” shall include all water and sewer rents and charges and other governmental 
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impositions of every kind and nature whatsoever, extraordinary as well as ordinary, foreseen and unforeseen, and each and every installment thereof, which shall or may, during the Lease Term, be levied, assessed, or imposed upon, against or with respect to the Premises, or any component part thereof, or which is in lieu of or in replacement of any of the foregoing types of taxes or assessments; expressly excluding the portion of the Real Estate Taxes which are the obligation of Landlord pursuant to Section 6.1 above and those Personal Property Taxes which are the obligation of Landlord pursuant to Section 6.2 above.  Notwithstanding anything to the contrary herein, Other Taxes shall exclude any taxes or governmental impositions assessed and levied prior to the Commencement Date that is related to the construction of the Premises or acquisition of the Equipment.  Except as may otherwise be expressly provided in this Lease, nothing herein shall be deemed to require Tenant to pay any estate, inheritance, succession, capital levy, corporate franchise, transfer or income tax of Landlord, nor shall any of the same be deemed Taxes as defined herein.  As used in this Lease, the term “Taxes” shall mean that portion of the Real Estate Taxes which are the obligation of Tenant under Section 6.1 above, those Personal Property Taxes which are the obligation of Tenant pursuant to Section 6.2 above, Other Taxes and all payments required to be made in lieu thereof. 

6.4    Contest.  Tenant shall have the right, but not the obligation, to contest the amount of Real Estate Taxes or Personal Property Taxes assessed against the Premises (by means of contesting the assessed value of the Premises).  Tenant shall comply with those reasonable requirements of Landlord with respect to such contests. If Tenant elects to contest taxes, Tenant shall deliver written notice to Landlord indicating Tenant will contest such taxes not less than thirty (30) days prior to the deadline to contest the same.  If Tenant elects not to contest such taxes, then Landlord shall have the right, but not the obligation, to contest such taxes.

ARTICLE 7 - USE OF THE PREMISES

7.1    Permitted Use.  Tenant shall use and occupy the Premises solely for Tenant’s Permitted Use and for no other use or purpose without the prior written consent of Landlord which shall not be unreasonably withheld, conditioned or delayed.  During the Term of the Lease, Tenant shall have the right of access to the Premises 24 hours per day, 7 days per week.

7.2    No Violations of Law.  Tenant shall not violate or permit the violation of, and at its cost shall cause the Premises, and all operations at the Premises, to be in compliance with all applicable Laws.  Tenant shall, at its cost, obtain all licenses, permits or other authorizations required in connection with the occupancy of the Premises or operation of its business at the Premises.  If any new alterations are required by any Governmental Authority for Tenant to occupy the Premises or to cause the same to be in compliance with all Laws following the completion of the Plans, then Tenant shall cause such work to be performed at Tenant's sole cost.  Tenant shall not use or permit to be used the Premises in any manner that will (i) constitute a hazard, (ii) materially damage the reputation of the Premises or any part thereof, (iii) violate any Laws, or (iv) violate, suspend, void or serve to increase the premium of any policy or policies of insurance at any time carried on the Premises or any part thereof.  Tenant shall not violate or permit the violation of any restrictive covenant, easement, lease or other condition of title affecting the Premises.

7.3    General Maintenance Obligations.  Tenant shall maintain the Premises in a clean, safe and sanitary condition, free from vermin, termites and other pests.  Tenant shall not cause or allow the Premises to be damaged or destroyed or to deteriorate, reasonable wear and tear excepted, from any act or omission of Tenant, its agents, employees or contractors.  Tenant shall not permit any objectionable or offensive noise or odors to be emitted from the Premises.  Tenant shall not permit the accumulation of waste or refuse matter, nor permit anything to be done or allow any condition to exist 
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which would invalidate or prevent the procurement of any insurance policies which may at any time be required pursuant to the provisions of this Lease.  Tenant shall not obstruct or permit the obstruction of any parking areas, streets or sidewalks located on or adjoining the Premises, and shall keep such parking areas, streets and sidewalks free of snow and ice.  Tenant shall not suffer any waste to occur to the Premises.

7.4    Dangerous Activities Prohibited.  Except to the extent of ordinary supplies and products typically used in Tenant’s business in accordance with Tenant’s Permitted Use and in compliance with all applicable Laws, Tenant represents, warrants and agrees that it will not store, use, produce or dispose of any explosives, flammable materials, hazardous substances, hazardous wastes, hazardous waste substances, radioactive materials or other pollutants or contaminants at the Premises.

7.5    Overloading Prohibited.  Tenant shall not overload the floors, roof, walls or other structural components of the Building beyond their weight-bearing capacity.  Landlord reserves the right to require the removal of any material equipment or furniture which exceeds such capacity upon ten (10) days’ prior written notice to Tenant (or sooner in the event of risk of injury or damage to persons or property) but shall not have any liability to Tenant or any third parties if Landlord fails to exercise such right, it being agreed that Tenant shall be solely responsible for any loss, damage or expense resulting from any such overloading.

7.6    Indemnity.  

7.6.1     Subject to any waivers, releases or limitations on liability expressly set forth in this Lease, Tenant shall indemnify, defend and hold harmless all of the Landlord Indemnified Parties from and against any and all third party claims, causes of action, suits, arbitration proceedings, losses, damages, judgments, settlements, penalties and expenses (including, without limitation, reasonable attorneys’ fees and expenses, court costs, expert witness fees and expenses and other dispute resolution expenses) suffered or incurred by any one or more of the Landlord Indemnified Parties resulting from any personal injury, death or damage to or loss of property to the extent caused by the breach of this Lease by Tenant, or by the negligence or willful misconduct of Tenant, or Tenant’s agents, employees, contractors, sublessees, assignees of this Lease or invitees onto the Premises, wherever the same may occur.  Notwithstanding anything to the contrary in the foregoing, such indemnification and defense obligation shall not extend to any actions, claims, demands, costs, damages, penalties or expenses to the extent resulting from any negligence or willful misconduct of any one or more of the Landlord Indemnified Parties.

7.6.2    Subject to any waivers, releases or limitations on liability expressly set forth in this Lease, Landlord shall indemnify, defend and hold harmless all of the Tenant Indemnified Parties from and against any and all third party claims, causes of action, suits, arbitration proceedings, losses, damages, judgments, settlements, penalties and expenses (including, without limitation, reasonable attorneys’ fees and expenses, court costs, expert witness fees and expenses and other dispute resolution expenses) suffered or incurred by any one or more of the Tenant Indemnified Parties resulting from any personal injury, death or damage to or loss of property to the extent caused by the breach of this Lease by Landlord, the breach of any representation or warranty expressly made by Landlord hereunder (subject, however, to the limitations in Section 22.4 hereof) or the negligence or willful misconduct of Landlord, its agents, contractors and employees or Contractor, its employees, agents or subcontractors. Notwithstanding anything to the contrary in the foregoing, such indemnification and defense obligation shall not extend to any actions, claims, demands, costs, damages, penalties or expenses to the extent resulting from any negligence or willful misconduct of any one or more of the Tenant Indemnified Parties.
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7.6.3    NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS LEASE, IN NO EVENT SHALL LANDLORD OR TENANT BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES OTHER THAN SUCH DAMAGES ALLEGED BY THIRD PARTIES WITH RESPECT TO WHICH A PARTY HAS INDEMNIFICATION OBLIGATIONS HEREUNDER, TENANT AND LANDLORD HEREBY WAIVE ALL CLAIMS FOR SUCH DAMAGES OTHER THAN AS PROVIDED IN THIS SENTENCE. If a claim is made against Landlord and Tenant by a third party and such claim is covered partially by Tenant’s indemnity under Section 7.6.1 and partially covered by Landlord’s indemnity under Section 7.6.2, then the obligations of Landlord and Tenant shall be equitably apportioned with respect to such claim.

ARTICLE 8 - UTILITIES AND SERVICES

8.1    Services.  As of the Commencement Date, the Premises shall be served by sewer, water, electricity and gas.  Tenant shall make application for and arrange for all utility service to be placed in Tenant's name effective as of the Commencement Date of the Lease.  During the Term, Tenant shall be solely responsible for and promptly pay, as and when the same become due and payable, all charges for water, sewer, electricity, gas, telephone or other communication, fire or burglar alarm systems, and any other utility or service supplied, used or consumed at or in connection with the Premises, except to the extent the same are required to be paid by Contractor under the Construction Contract.  The foregoing obligation of Tenant shall include any utility deposits required to be made for the supplying of utilities to the Premises.  Tenant shall use any utilities supplied to or serving the Premises in accordance with the regulations of the utility company or the Governmental Authority supplying the same.  Tenant shall not at any time overburden or exceed the capacity of the mains, feeders, ducts, conduits or other facilities by which such utilities are supplied to, distributed in or serve the Premises.  

8.2    Interruption of Services.  Tenant understands, acknowledges and agrees that any one or more of the utilities may be interrupted by reason of accident, emergency or other causes beyond Landlord's control, or may be discontinued or diminished temporarily until certain repairs, alterations or improvements can be made; that Landlord does not represent or warrant the uninterrupted availability of such utilities; and that any such interruption shall not be deemed an eviction or disturbance of Tenant's right to possession, occupancy and use of the Premises or any part thereof, or, except in cases where the interruption of services is caused by Landlord’s gross negligence or willful misconduct, render Landlord liable to Tenant in connection therewith.  

8.3    Telecommunications Services.  Tenant, at its cost and for its own account, shall be solely responsible for obtaining all telecommunications systems, including voice, video, data, Internet, and any other services provided over wire, fiber optic, microwave, wireless, and any other transmission systems ("Telecommunications Services"). All providers of Telecommunications Services shall be required to comply with all applicable Laws.  Tenant acknowledges that Landlord shall not be required to provide or arrange for any Telecommunications Services and that Landlord shall have no liability to Tenant in connection with the installation, operation or maintenance of Telecommunications Services or any equipment or facilities relating thereto.  Tenant shall not install any roof-top communications equipment without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed.  Landlord may condition its consent upon such matters as Landlord deems appropriate to protect its interest including, without limitation, the size and location of any such equipment, the method by which it may be attached to the roof, the number and size of any roof penetrations, the compliance of the same with all applicable Laws, the plans for screening such equipment and such other reasonable matters as Landlord may determine.  
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Notwithstanding anything to the contrary in the foregoing, Landlord shall have the right to prohibit any use of roof-top equipment if the use thereof by Tenant would breach any Permitted Exception, materially and adversely affect the value of the Building, violate any Laws, cause any warranty regarding the roof material to be voided or adversely affected or otherwise subject Landlord to any liability.

8.4    Security.  Tenant, at its sole cost and expense, shall be responsible for providing such security systems, security monitoring and security personnel with respect to the Premises and Tenant deems necessary or desirable.  Landlord shall have no liability or obligation with respect to security at the Premises.  

ARTICLE 9 - REPAIRS

9.1    Tenant’s Repair Obligations.  Except for Landlord’s express obligations under Section 9.3 below, Tenant shall be responsible for, and shall pay the entire cost of, maintaining, repairing and replacing (collectively, the “Repairs”) the Premises, and all component parts thereof, which are necessary to cause the Premises, and every component part thereof to be maintained in a state of good condition, repair and working order, casualty and condemnation excepted, including such Repairs which are interior or exterior, ordinary or extraordinary, foreseen or unforeseen, or capital or non-capital.  Without limiting the generality of the foregoing, Tenant's obligation to Repair the Premises as aforesaid includes, the obligation to Repair the following:  all plumbing fixtures and pipes; all heating, ventilation and air conditioning systems and equipment ("HVAC"); all electrical and lighting facilities and equipment; any other mechanical systems and equipment; all security systems and equipment; all fire safety systems and equipment; all landscaping, signage, sidewalks and curbs; all storm and sanitary sewer lines and pipes whether within or outside of the footprint of the Building; all interior walls and wall coverings (including painting and caulking thereof); all fixtures; all ceilings, windows, doors, plate glass and skylights; all necessary painting and caulking of the Building, all docks, bumpers and dock doors; all gutters and downspouts; and all floors and floor covering; all of which form a part of the Premises.  In addition, Tenant shall be responsible for making Repairs to the Building roof and its deck and membrane as well as the parking lot and internal drives located on the Property to the extent such Repairs are made necessary by Tenant’s acts or omissions (excluding ordinary wear and tear).  Tenant’s repair obligations as aforesaid shall include, without limitation, the obligation to make Repairs to the portions of the Premises which are the obligation of Tenant above as may be required during the Term to comply with Laws enacted after the Plans were prepared.

9.2    HVAC Maintenance Contract.  Without limiting the generality of the foregoing, Tenant shall, at Tenant's expense, prior to the Commencement Date, obtain and thereafter maintain during the Lease Term an HVAC maintenance and inspection contract in form and substance reasonably satisfactory to Landlord.  Tenant shall deliver to Landlord a copy of such contract promptly upon entering into the same and from time to time thereafter upon Landlord's request.  If Tenant fails to obtain or maintain such contract, then Landlord shall have the right, upon the giving of written notice of such failure and Tenant’s failure to obtain the foregoing contracts within thirty (30) days of the giving of such written notice, to obtain such contracts at Tenant's expense and on Tenant's behalf, and Tenant shall immediately reimburse Landlord for the cost thereof plus five percent (5%) of the annual cost thereof as an administrative fee, which amounts shall constitute Additional Rent due hereunder.  If Landlord determines that Tenant has failed or neglected to perform its obligations to repair and maintain the Premises under this Lease, then Landlord shall give Tenant notice specifying such failure.  If Tenant further fails or neglects to satisfy such obligation within thirty (30) days following the giving of such notice, then the same shall constitute an Event of Default under this 
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Lease and, in addition to any other rights or remedies available to Landlord under this Lease or any Laws as a result thereof, Landlord shall have the right, but not the obligation, to cause such Repairs to be made at Tenant's expense, and Tenant shall immediately reimburse Landlord for the cost thereof plus five percent (5%) of the total cost of such Repairs, which amounts shall constitute Additional Rent due hereunder.

9.3    Landlord’s Repair Obligations.  Notwithstanding anything to the contrary in Section 9.1 above, Landlord shall be responsible for, and shall pay the cost of, (a) any Repairs to the extent covered by the warranties listed on the Warranty Schedule until such time as the same have been assigned to Tenant, after which Tenant shall be responsible for enforcing the terms thereof; and in the event of a warranty claim by Tenant, Landlord hereby agrees to cooperate with Tenant in connection with the enforcement thereof, and (b) any Repairs to the Building roof, footings and foundation, exterior walls and structural elements, as well as the parking lot and internal drives on the Property, necessary to maintain the same in good condition, repair and working order, except to the extent such Repairs are made necessary by the acts or omissions of Tenant (excluding ordinary wear and tear).  Notwithstanding anything to the contrary in the foregoing or the other provisions of this Lease, if any Repairs are required which are the responsibility of Landlord as provided in this Lease, then Landlord’s liability shall be limited to the cost of performing such Repairs; and in no event shall Landlord be liable to Tenant or any third party (including, without limitation, the provider of any applicable insurance coverage) for any loss, damage or expense suffered or incurred by them resulting from, or attributable to, the need for and making of such Repairs, including, without limitation, damage to Tenant’s personal property, fixtures, equipment, machinery and inventory, damage caused by the elements (e.g., rain, snow, ice or wind), losses caused by any interruption of business operations within the Premises or other direct or indirect, actual or consequential, damages.

In the event that Landlord fails to perform a Repair as required by Section 9.3, and such failure continues for thirty (30) days after Tenant provides Landlord with written notice thereof, Tenant shall have the right, but not the obligation, to complete or may cause to be completed such Repair, in which event Landlord shall reimburse Tenant for the reasonable cost thereof, plus a five percent (5%) administrative fee, within thirty (30) days after written notice from Tenant to Landlord containing an invoice for the same.  To the extent that Landlord fails to reimburse Tenant within said thirty (30) day period, Tenant shall have the right to set off such unreimbursed costs against the next installments of Base Rent payable hereunder, provided that no such set off shall be applied to more than 25% of the Base Rent payable during any calendar month, with any remaining set off being applied to Base Rent in future months until paid in full.  

Notwithstanding the foregoing, Tenant shall have the right to immediately perform Repairs which are otherwise the obligation of Landlord hereunder if the same are necessary to prevent eminent harm to persons or property and there is insufficient time to notify Landlord of the same prior to performing such Repairs.  Tenant shall provide notice of such Repairs to Landlord as soon as is practical after need for the same arises. Landlord shall reimburse Tenant for the reasonable cost thereof within thirty (30) days after written notice from Tenant to Landlord containing an invoice for the same.  To the extent that Landlord fails to reimburse Tenant within said thirty (30) day period, Tenant shall have the right to set off such unreimbursed costs against the next installments of Base Rent payable hereunder, provided that no such set off shall be applied to more than 25% of the Base Rent payable during any calendar month, with any remaining set off being applied to Base Rent in future months until paid in full.  

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ARTICLE 10 - ALTERATIONS

10.1    Alterations.  Tenant shall not make any Alterations, except for Minor Alterations (which are covered under Section 10.2 below), without the prior written consent of Landlord in each instance, which consent shall not be unreasonably withheld; provided, however, Landlord’s consent may be granted or withheld in Landlord’s sole and absolute discretion if such proposed Alteration: (a) is inconsistent with Tenant’s use of the Building for Tenant’s Permitted Use, (b) may result in a diminution in value of the Premises, (c) may affect the roof membrane, foundation, structural members, exterior walls or mechanical, electrical, plumbing or life-safety systems of the Building, or (d) materially and adversely affects any of the Equipment.  Without limiting the generality of the foregoing, Landlord may condition its consent to any Alteration upon such matters as Landlord may reasonably require to protect its interest in the Premises and to compensate Landlord for its reasonable time and expenses in reviewing, approving and monitory any Alterations.  In addition, Landlord may condition its consent to the making of any Alteration upon the removal of such Alteration prior to the end of the Lease Term.  Any Alterations made by Tenant, whether Landlord’s consent is required or not, shall be made with reasonable diligence and be done in a good and workmanlike manner and in accordance with all applicable Laws.  Before any Alterations are begun, Tenant shall procure and provide copies to Landlord, at Tenant’s sole cost and expense, the following, each of which must be satisfactory to Landlord in its sole and absolute discretion:  (i) if applicable, complete plans and specifications for the Alterations to be performed, (ii) if required by applicable Law, copies of all permits from the appropriate Governmental Authority required to perform the Alterations, (iii) copies of builder’s risk insurance to the extent such work is not covered by existing insurance policies required to be maintained by Tenant herein, subject to Section 10.2 below, (iv) copies of all design and construction contracts which will be let by Tenant in connection with the Alterations, and (v) such other items as Landlord may reasonably require as a condition to its consent to any proposed Alteration.  Tenant shall promptly pay all contractors, subcontractors and their suppliers for any work done or caused to be done by Tenant in respect to the Premises and shall provide evidence thereof (including, without limitation, appropriate lien waivers) upon request by Landlord.  If any lien is filed, then Tenant shall insure over or discharge the same within twenty (20) days after demand therefor by Landlord.  Any Alterations shall be made in compliance with all Laws and shall be the property of Landlord upon the expiration of the Lease Term, except to the extent expressly provided herein to the contrary.

10.2    Minor Alterations.  Notwithstanding anything to the contrary in Section 10.1 above, Tenant shall have the right at its sole cost and expense, from time to time to make non-material, non-structural changes within the interior of the Building (any such interior and non-structural alterations to the Building being referred to as “Minor Alterations”) as Tenant shall deem reasonably necessary for Tenant’s Permitted Use without the consent of Landlord; provided, that (i) the cost for any individual Minor Alteration will not exceed $50,000,  (ii) the aggregate cost of all Minor Alterations done during any one Lease Year shall not exceed $500,000, (iii) Tenant gives Landlord prior written notice, and a general description, of any such Minor Alterations, and (iv) all other provisions of Section 10.1 governing Alterations in general shall apply with respect to any Minor Alterations.  Notwithstanding anything to the contrary herein, the Parties agree that any Alteration which requires the roof membrane, foundation, structural members or exterior walls of the Building to be penetrated, otherwise modifies any of the Building components required to be Repaired by Landlord under this Lease or otherwise materially and adversely affects the Equipment in any manner shall not be deemed to be a Minor Alteration and shall be subject to the provisions of Section 10.1 above.
 
10.3    Removal of Alterations and Tenant Improvements.  All Alterations and Tenant Improvements made by Tenant at its expense (including, but not limited to, business and trade 
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fixtures, utility installations, machinery, equipment, furniture, movable partitions and items of personal property), shall be and remain the property of Tenant and shall be removed from the Premises prior to the Expiration Date, unless and to the extent the Parties agree in writing to the contrary.  At any time during the Lease Term and upon expiration or earlier termination of this Lease, Tenant may, at its sole expense, remove any or all such items; provided, that Tenant repairs any damage to the Premises or Building caused by such removal in a good and workmanlike manner and provided that, after giving effect to such removal, the remaining Equipment remains in good operating order for its intended use (unless Tenant has acquired the Equipment from Landlord).  Unless Tenant has acquired the Equipment from Landlord, Tenant shall not remove any of the Equipment unless the same is being replaced by new equipment of equal or greater value and utility; provided Tenant may remove Tenant Equipment.  If Tenant fails to remove any and all Alterations and Tenant Improvements as required herein, then the same shall become, at the sole option of Landlord, the property of Landlord at the end of the Lease Term.  If Landlord does not elect to assume ownership of Tenant's Alterations, Tenant Improvements, trade fixtures and personal property as aforesaid, then Landlord shall have the right to have the same removed and sold, stored or otherwise disposed of and the Premises repaired and Tenant shall reimburse Landlord for the cost thereof plus an administrative fee of five percent (5%) of such costs.  The provisions of this paragraph shall survive the termination or expiration of this Lease.  Any items of Tenant’s personal property may be deemed, at the option of Landlord, to have been abandoned if left in the Premises or at the Property after the Abandonment Deadline, and in such case such items may be retained by Landlord, without accountability, in such a commercially reasonable manner as Landlord shall determine at Tenant’s expense; subject however, to the provisions and requirements of any applicable Law relating to abandoned property in a leasehold.  The “Abandonment Deadline” means the earlier of the expiration date of this Lease, or ten (10) Business Days following an earlier termination date, or three (3) Business Days following entry of an order of possession for restoration of the Premises to Landlord.

10.4    Lien.  Tenant covenants that it will not suffer or permit any liens to be filed against the Landlord’s title to the Premises or against Tenant’s leasehold interest in the Premises as a result of nonpayment for, or disputes with respect to, any work, labor, services or materials supplied to Tenant or as a result of an agreement with, or the assent of Tenant, including, without limitation, the Tenant Improvements.  If any such lien shall be filed at any time against the Premises or any part thereof, Tenant shall, within twenty (20) days after receipt of written notice of such lien (or such shorter period as may be required under any Mortgage), cause the same to be discharged of record or bonded over as may be necessary to prevent a foreclosure on the Premises or any part thereof.  No consent or approval granted by Landlord with respect to any Alterations shall be deemed to imply a consent on the part of Landlord to the filing of any lien against Landlord’s interest in the Premises. Tenant shall indemnify, defend (by counsel acceptable to Landlord) and hold harmless all of the Landlord Indemnified Parties from and against any and all claims, causes of action, suits, arbitration proceedings, losses, damages, judgments, settlements, penalties and expenses (including, without limitation, reasonable attorneys’ fees and expenses, court costs, expert witness fees and expenses and other dispute resolution expenses) suffered or incurred by any one or more of the Landlord Indemnified Parties resulting from the failure of any contractor or subcontractor at any tier to be paid any amounts claimed relative to any Tenant Improvements, Alterations or Tenant Repairs, including, without limitation, any such claims of liens which may be asserted against the Premises or any portion thereof.    

10.5    Landlord's Right to Inspect and Repair.  Landlord and its authorized officers, employees, agents and contractors shall have the right (during normal business hours, or at any time in the case of an emergency, and with as little interruption to the operations of Tenant as is reasonably 
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practicable) to enter upon the Premises for the following purposes:  (a) to inspect the Premises to determine whether Tenant has complied and is complying with the terms and conditions of this Lease; (b) to perform maintenance and make repairs and replacements required under the terms hereof to be made by Tenant which may be necessary by reason of Tenant’s failure to do such repair or maintenance after notice from Landlord; or (c) to perform maintenance and make any repairs and replacements in any case where Landlord, in its reasonable judgment, determines that it is necessary or desirable to do so in order to preserve the structural safety of the Building or to correct any condition likely to cause injuries or damages to persons or property.  In addition, Landlord may, upon at least forty-eight hours prior written notice to Tenant, enter upon the Premises to show the Premises to others for the purpose of renting the same upon the termination of the Lease Term or selling or financing the Building.

10.6    Tenant Equipment.  

10.6.1    In the event, during the Lease Term, Tenant purchases additional equipment which is not replacing existing Equipment, such additional equipment shall be Tenant’s personal property and title to such equipment shall remain with Tenant. 

10.6.2    In the event, during the Lease Term, any portion of the Equipment becomes inoperable, such inoperability is not the result of Tenant’s acts or omissions (other than ordinary wear and tear) and such Equipment cannot be repaired at a commercially reasonable cost (Equipment meeting the foregoing requirements being “Replacement Eligible Equipment”), Tenant shall have the right to  purchase replacement equipment for the Replacement Eligible Equipment provided that Tenant provides Landlord with written notice of the need for such replacement promptly upon Tenant becoming aware of the same, and such replacement Equipment shall be Tenant’s personal property and title to the such replacement Equipment shall remain with Tenant.  Notwithstanding the foregoing, in the event that the proceeds of Landlord’s property insurance policy are used to purchase such replacement equipment, then the replacement equipment shall remain Landlord’s personal property to the extent of the such proceeds are used in proportion to the aggregate cost of such replacement equipment.  Tenant shall be responsible for removing and disposing any existing Equipment which is replaced at Landlord’s sole cost and expense and Landlord shall be entitled to any proceeds from the resale, salvage or other disposition of such Equipment. 

10.6.3    In the event, during the Lease Term, Tenant replaces any Equipment which is not Replacement Eligible Equipment, such replacement shall be subject to the provisions of Section 10.3 above and such replacement equipment shall be the property of Landlord. 

ARTICLE 11 - INSURANCE

11.1    Tenant’s Required Insurance.  At all times during the Term of this Lease, Tenant shall maintain, at its sole cost and expense, the following insurance policies and comply with the following obligations (such policies and compliance, collectively, the “Tenant Required Insurance”):

11.1.1    Tenant shall maintain policies of cause of loss-special risk form (formerly “all-risk”) property insurance covering trade fixtures, equipment, merchandise inventory and all other personal property including the Tenant Improvements from time to time in, on or upon the Premises, in an amount not less than one hundred percent (100%) of their actual replacement cost from time to time existing during the Term, providing protection against any peril included within the former classification of “all risk” inclusive of sprinkler leakage, wind and terrorism with sublimits for flood and earthquake, if applicable.  Tenant shall also be required to obtain extra expenses and business 
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interruption insurance (on an “actual loss sustained” basis) for periods and with limits not less than twelve (12) months of the Base Rent payable by Tenant.

11.1.2    During any Tenant Improvements or Alterations, Tenant, or Tenant’s contractor, shall maintain builder’s risk insurance for not less than the full completed project insurable value, covering the same risks and otherwise complying with the same requirements as set forth in Section 11.1.1 above.  Tenant’s builder’s risk insurance shall also cover:  (a) loss of materials, equipment, machinery, and supplies whether on-site, in transit, or stored off-site, or of any temporary structures, hoists, sidewalks, retaining walls, and underground property; (b) soft costs, plans, specifications, blueprints and models; (c) demolition and increased cost of construction, including increased costs arising from changes in Laws and coverage for operation of building Laws, all subject to a sublimit reasonably satisfactory to Landlord; and (d) business interruption on an actual loss sustained in an amount equal to at least 12 months of the Base Rent payable by Tenant.  Notwithstanding anything to the contrary herein, Tenant shall have no obligation to maintain builder’s risk insurance as required in this Section 11.1.2 for Minor Alterations as appropriate given the nature of such Minor Alterations.

11.1.3    Tenant shall maintain the following insurance for personal injury, bodily injury, death, accident and property damage: (a)  public liability insurance, including commercial general liability insurance, in an amount of not less than $1,000,000 per occurrence with a general aggregate limit of not less than $2,000,000; (b) owned (if any), hired, and non-owned automobile liability insurance in an amount of not less than $1,000,000 per accident; and (c) umbrella liability insurance in an amount not less than $5,000,000 per occurrence.  Tenant’s liability insurance shall include coverage for liability arising from premises and operations, elevators, escalators, independent contractors, contractual liability (including indemnities), and products and completed operations.  All Tenant liability insurance shall name Landlord and its Mortgage Lender as an “additional insured” by an endorsement reasonably satisfactory to Landlord.  Liability insurance required to be carried by Tenant is to be primary and noncontributory as is insurance carried by Landlord.

11.1.4    Tenant shall maintain workers’ compensation and disability insurance as Law requires.

11.1.5    Tenant shall maintain such other types and amounts of insurance for the Premises and its operations as Landlord or its Mortgage Lender shall from time to time reasonably require, consistent with insurance commonly maintained for similarly situated properties in the St. Louis City and St. Louis County area.  

11.1.6    Tenant shall secure all Tenant Required Insurance from domestic insurer(s) authorized to do business in the State and reasonably satisfactory to Landlord with: (a) a claims paying ability of not less than “A” (or the equivalent) by S&P and one other Rating Agency satisfactory to Landlord; and (b) “A:X” or better financial strength rating by AM Best.  Tenant shall obtain Landlord’s reasonable approval of the form, substance, amounts, risk coverage, sublimits, deductibles and insureds for all Tenant Required Insurance.  Tenant Required Insurance shall contain such provisions as Landlord deems reasonably necessary or desirable to protect its interest, including endorsement stating that neither Tenant, Landlord, nor any other party shall be deemed a co-insurer.  Tenant shall pay the premiums for all Tenant Required Insurance when due and payable.  Tenant shall not finance insurance premiums under any arrangement that could (if any premium loan payment is not made) result in the premature cancellation of any Tenant Required Insurance.  Tenant shall deliver to Landlord, promptly upon issuance, copies of certificates of insurance and, if requested by Landlord in writing, the insurance policies, for all Tenant Required Insurance.  At least 30 days before any 
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policy expires, Tenant shall deliver evidence of renewal in compliance with the Loan Documents.  If Tenant fails to do so by such date, then without limiting Landlord’s Remedies, Landlord may (but shall have absolutely no obligation to) obtain any Tenant Required Insurance, in which event Tenant shall reimburse Landlord for the cost thereof, plus five percent (5%) as an administrative fee, upon demand, and such obligation shall constitute Additional Rent due hereunder.

11.1.7    In each insurance policy (or an endorsement thereto), Tenant shall use commercially reasonable efforts to cause the carrier to:  (a) agree to endeavor to provide Landlord with at least 10 days’ prior written notice of cancellation, termination, or nonrenewal of such policy; (b) waive any right to claim any premiums and commissions against Landlord, provided that the policy need not waive the requirement that the premium be paid in order for a claim to be paid to the insured; and (c) allow Landlord to pay premiums to continue such policy upon notice of cancellation for nonpayment.  If Landlord pays any such premiums, then Tenant shall reimburse Landlord for the cost thereof, plus five percent (5%) as an administrative fee, as Additional Rent.  Every property insurance policy shall provide that as to Landlord’s interest, such policy shall remain valid and shall insure Landlord regardless of any:  (i) named insured’s act, failure to act, negligence, or violation of warranties, declarations, or conditions; (ii) occupancy or use of the Premises for purposes more hazardous than those permitted; or (iii) Landlord’s exercise of any Landlord’s remedies.

11.1.8    Tenant shall not carry separate insurance, concurrent in kind or form or contributing in the event of Loss, with any Tenant Required Insurance.  Tenant may, however, carry insurance for the Premises, in addition to Tenant Required Insurance, but only if such additional insurance: (a) does not violate or entitle the carrier to assert any defense or disclaim any primary coverage under any Tenant Required Insurance; (b) mutually benefits Tenant and Landlord, as their interests may appear; and (c) otherwise complies with this Lease.

11.1.9    Notwithstanding anything to the contrary in this Lease, if at any time Landlord has not received satisfactory written evidence that Tenant maintains all Tenant Required Insurance in full force and effect in full compliance with this Lease and has paid all required premiums, then Landlord may at its option take such action as Landlord deems necessary to protect Landlord’s interests, including obtaining such insurance coverage(s) as Landlord shall deem appropriate.  Landlord’s expenses in doing so, and any other expenses or losses that Landlord suffers or incurs as a result of Tenant’s failure to perform any obligation regarding Tenant Required Insurance, shall be reimbursed by Tenant, together with payment of an administrative fee to Landlord of five percent (5%) of Landlord’s cost of performance, shall be paid upon demand and shall constitute Additional Rent due hereunder.  If at any time Landlord makes any determination or request regarding the amount, scope, or terms of any Tenant Required Insurance, any such determination or request shall impose no obligation or liability on Landlord.  Tenant shall not rely upon any such determination or request.  Tenant acknowledges that any such determination or request would be made solely for Landlord’s own benefit and not for Tenant’s benefit.  Tenant shall retains sole responsibility for the adequacy and appropriateness of its insurance program without relying on Landlord.

11.2    Landlord’s Required Insurance.  At all times during the Term of this Lease, Landlord shall maintain the following insurance policies and comply with the following obligations (such policies and compliance, collectively, the “Landlord Required Insurance”):

11.2.1    Landlord shall maintain in effect policies of cause of loss-special risk form (formerly “all-risk”) property insurance covering the Building and the Equipment from time to time in, on or upon the Premises (but expressly excluding those items required to be insured by Tenant 
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pursuant to Section 11.1.1 above), in an amount not less than one hundred percent (100%) of their actual replacement cost (excluding the Building footers and foundation at Landlord’s option) from time to time existing during the Term. 

11.2.2    Landlord shall maintain the following insurance for personal injury, bodily injury, death, accident and property damage: public liability insurance, including commercial general liability insurance, in an amount not less than $1,000,000 per occurrence with a general aggregate limit not less than $2,000,000.  

11.2.3    Landlord shall also maintain the following insurance, at  Landlord’s sole cost, for personal injury, bodily injury, death, accident and property damage: (a) owned (if any), hired, and non-owned automobile liability insurance in an amount not less than $1,000,000 per accident; (b) umbrella liability insurance in an amount not less than $5,000,000 per occurrence; and (c) worker’s compensation insurance as required by law.  Upon written request of Tenant, Landlord shall provide Tenant with evidence of coverage of the insurance required to be carried by Landlord hereunder.  

11.2.3    Landlord shall secure all Landlord Required Insurance from domestic insurer(s) authorized to do business in the State with: (a) a claims paying ability of not less than “A” (or the equivalent) by S&P and one other Rating Agency satisfactory to Landlord; and (b) “A:X” or better financial strength rating by AM Best.  

11.2.4    To the extent that the premiums for the Landlord Required Insurance exceed the total aggregate amount of $75,000 (the “Insurance Premium Cap”) for any calendar year, Tenant shall pay to Landlord the amount by which such premiums exceed the Insurance Premium Cap as Additional Rent hereunder within thirty (30) days after Landlord’s written request for such payment.  Tenant shall further reimburse Landlord for the cost of any deductibles paid by Landlord with respect to the Landlord Required Insurance from time to time within thirty (30) days after Landlord’s written demand therefor; provided that the event giving rise to an insurance claim was not caused by Landlord’s wrongful acts or omissions hereunder.  Notwithstanding the foregoing, in no event shall Tenant be responsible for payment of fines, costs, late charges, liquidated damages, penalties, or related interest charges related to the Landlord Required Insurance unless resulting from Tenant’s failure to timely pay any amount it is required to pay under this Section 11.2.4.

11.3    Waiver of Subrogation.  To the extent permitted by law, and without affecting the coverage provided by insurance required to be maintained hereunder, Landlord and Tenant each waive any right to recover against the other for damages to all or any portion of the Premises, the Building, the Equipment, the Tenant Improvements or any of Tenant’s personal property which is covered or which would be covered by the property insurance required to be maintained by the Parties as provided herein (inclusive of any and all deductibles).  This provision is intended to waive, fully and for the benefit of each Party, any rights and/or claims which might give rise to a right of subrogation by any insurance carrier insuring either Party with property insurance.  The coverage obtained by each Party pursuant to this Lease shall include, without limitation, a waiver of subrogation by the carrier which conforms to the provisions of this Section.

ARTICLE 12 - DEFAULT; REMEDIES

12.1    Tenant's Default.  The occurrence of any one or more of the following events shall constitute an “Event of Default” on the part of Tenant:

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12.1.1    The failure by Tenant to make any payment of Rent or any other payment required to be made by Tenant hereunder, as and when due, and such failure is not cured within five (5) Business Days after Landlord gives Tenant written notice thereof;

12.1.2    The failure by Tenant to observe or perform any covenant or obligation under this Lease not covered by the other provisions of this Section 12.1, as and when required, and such failure is not cured within thirty (30) days after Landlord gives Tenant written notice thereof;

12.1.3    The failure of Tenant to remedy, immediately after written notice is given by  Landlord, any hazardous condition which Tenant has created or suffered in breach of Tenant's obligations under this Lease; or

12.1.4    The breach of Article 15 hereof; or

12.1.5    Tenant shall (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of itself for all or a substantial part of its assets, (ii) be unable, or admit in writing its inability, to pay its debts as they mature, (iii) make a general assignment for the benefit of creditors, (iv) be adjudicated a bankrupt or insolvent, (v) file a voluntary petition in bankruptcy, or seek an arrangement with creditors, or take advantage of any insolvency law or file an answer admitting the material allegations of a petition filed against itself in any bankruptcy, reorganization or insolvency proceedings, (vi) take any action to effectuate any of the foregoing, or (vii) become insolvent, (viii) have filed against it a petition in bankruptcy which is not dismissed within sixty (60) days after the filing thereof; or

12.1.6    The leasehold interest of Tenant is levied upon under execution or is attached by process of law, and such levy or attachment is not fully released or otherwise satisfied within thirty (30) days after the filing thereof.

12.2    Remedies.  If an Event of Default occurs, then Landlord may exercise any one or more of the following remedies, to the extent permitted by law, or any other legal or equitable remedy permitted under applicable Laws:

12.2.1    Landlord may terminate this Lease (and accelerate the Expiration Date) upon the delivery of notice thereof to Tenant and Landlord shall have the right to immediate possession of the Premises and Tenant shall peacefully surrender possession of the Premises to Landlord.  Tenant hereby waives any and all rights it may have, at law or in equity, to the receipt of notice of default or demand for forfeiture, except as expressly provided herein.  In the event Tenant holds the Premises over beyond the termination of the Lease Term, Landlord shall have the right to recover Landlord's cost in recovering possession of the Premises (including, without limitation, reasonable attorneys' fees and litigation costs and expenses), such amounts as may be permitted under applicable Law and any other amounts due and payable to Landlord hereunder (including, without limitation, past-due Rent).  In addition to the foregoing, if the Lease is terminated as aforesaid, then Landlord shall also have the right to recover from Tenant all damages allowable to Landlord under applicable Law as a result of an Event of Default under this Lease.  Landlord shall have no obligation to mitigate such damages, notwithstanding any obligation which may be implied under applicable Laws, and the Parties agree that such agreement is a material part of the consideration for this Lease.

12.2.2    Landlord, without terminating this Lease, shall have the right to terminate Tenant's right to possess the Premises and to recover possession thereof and Tenant shall peacefully surrender the Premises to Landlord.  Landlord, at Landlord's option and without any obligation, may 
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cause the Premises to be prepared for reletting, and may relet the Premises or any part thereof as agent of Tenant, for a term to expire prior to, at the same time as, or subsequent to the expiration of the Lease Term, at Landlord's option.  In the event of such reletting, Landlord shall receive the rents therefor, applying the same first, to the repayment of reasonable expenses as Landlord may have incurred in connection with said resumption of possession, preparing for reletting and reletting (including, without limitation, remodeling costs, brokerage and attorneys' fees), and, second, to the payment of damages and amounts equal to the Base Rent and Additional Rent due hereunder and to the cost of performing the other obligations of Tenant as herein provided.  Tenant, regardless of whether Landlord has relet the Premises, shall pay to Landlord damages equal to the Base Rent and Additional Rent herein agreed to be paid by Tenant less the proceeds of the reletting, if any, and such Rent shall be due and payable by Tenant on the days on which Rent is due hereunder.  Landlord shall have no obligation to mitigate damages, notwithstanding any obligation which may be implied under applicable Laws, and the Parties agree that such agreement is a material part of the consideration for this Lease.

12.2.3    Landlord may perform for Tenant any of the obligations Tenant has agreed to perform hereunder if Tenant has defaulted in the performance of such obligations.  Upon demand, Tenant shall reimburse Landlord for Landlord's cost of performing for Tenant together with an administrative charge equal to five percent (5%) of Landlord's cost of performance as aforesaid.  Any amounts so expended by Landlord shall be immediately due and payable and the failure of Tenant to pay such amounts shall entitle Landlord to all of the rights and remedies available to it as if Tenant had defaulted in the payment of Rent.

12.2.4    Tenant shall pay to Landlord, upon demand, interest at the Default Rate, compounded monthly, on any past-due payments of Base Rent, Additional Rent or other amounts due hereunder, which interest shall commence to accrue on the first day after the due date of any such payment regardless of any cure or grace periods which may be granted hereunder or with respect thereto.

12.2.5    Landlord shall have the right to apply the Security Deposit as described in Article 18 below.

12.2.6    Landlord shall have the right at any time after an Event of Default, and without demand or notice, to bring an action for forcible entry, forcible detainer or forcible entry and forcible detainer or other legal proceedings as Landlord may elect.

12.2.7    If Landlord exercises its rights under Sections 12.2.1, 12.2.2 or 12.2.3 above and the Extension Option has not been exercised as of the date thereof, then the Extension Option shall be deemed to be null and void and of no force or effect whatsoever.

12.2.8    If such Event of Default occurs prior to final completion of the Work, then Landlord shall have the right to stop the Work and Tenant shall indemnify, defend and hold harmless Landlord from all loss, damage and expense caused thereby.

12.2.9    Landlord shall have the right to remove Tenant’s exterior Building signage from the Building and repair any damage caused thereby, all at Tenant’s sole cost and expense, which shall be reimbursed by Tenant to Landlord on demand.

12.3    Landlord’s Default.  Unless determined to the contrary by a court of competent jurisdiction as a matter of equity, the obligations of Tenant hereunder are independent and any failure 
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on the part of Landlord to perform or observe any of its obligations under this Lease shall not excuse the performance by Tenant of its obligations herein.  If Landlord breaches its obligation to perform a Repair hereunder, Tenant shall have those rights under Section 9.3 hereof with respect thereto.

12.4    Limitation of Landlord’s Liability.

12.4.1    The term “Landlord” as used herein shall mean only the current owner or owners (and their agents) of the Premises.  In the event of any actual or alleged failure, breach or default hereunder by Landlord, Tenant’s sole and exclusive remedy will be against Landlord’s interest in the Property and the rents, issues, profits and proceeds thereof.  Without limitation of the foregoing, no partners, members, managers, shareholders, directors, officers, agents or employees of Landlord will be sued, be subject to service or process, or have a judgment obtained against him in connection with any alleged breach or default, and no writ of execution will be levied against the assets of any member, manager, partner, shareholder, director, officer, agent or employee of Landlord.

12.4.2    Neither Landlord nor its property manager, nor any of their respective employees, owners, agents or contractors, shall be liable to Tenant or its employees, agents, contractors or invitees for any interruption of services to or unavailability of materials at the Premises (including, without limitation, utilities, trash removal and maintenance) or for any denial of access thereto caused by Force Majeure Causes or other circumstances not within the reasonable control of Landlord.

12.4.3    Neither Landlord nor its property manager, nor any of their respective employees, owners, agents or contractors, shall be liable to Tenant or its employees, agents, contractors or invitees for injury or damage to persons or property caused by the theft, vandalism or other criminal or tortious conduct of others (except for the tortious or willful conduct of Landlord, its agents, contractors, employees, or property manager) and Tenant hereby acknowledges that Tenant's occupancy of the Premises and use of the same is at Tenant's own risk.

12.5    Cumulative Remedies.  The specific remedies to which Landlord may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which it may be lawfully entitled in case of any breach or threatened breach by Tenant of any provisions of this Lease.  In addition to the other remedies provided in this Lease, either Party shall be entitled to seek from a court of competent jurisdiction a restraint by injunction of the violation or attempted or threatened violation of any of the covenants, conditions or provisions of this Lease or to seek from a court of competent jurisdiction a decree compelling specific performance of any such covenants, conditions or provisions.

ARTICLE 13 - CONDEMNATION

13.1    Total Taking.  If the whole of the Premises are taken under the power of eminent domain, this Lease will terminate as of the date possession is taken by the condemning authority.

13.2    Partial Taking.  If any portion of the Premises is taken under the power of eminent domain, then this Lease will terminate as to the portion so taken as of the date possession is taken by the condemning authority; provided, however, that this Lease shall remain and continue in full force and effect relative to the portion of the Premises not so taken until the expiration of the Lease Term and Tenant shall be entitled to an equitable abatement of Base Rent based upon the utility and extent of the portion of the Premises so taken.  
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13.3    Substantial Partial Taking.  Notwithstanding anything to the contrary in Section 13.2 above, if more than thirty percent (30%) of the Building is permanently taken under the power of eminent domain which renders the Premises reasonably unusable by Tenant for the Tenant’s Permitted Uses to the extent then being used, as reasonably determined, then both Landlord and Tenant shall have the option to unilaterally terminate this Lease.  Such option must be exercised, if at all, by giving written notice to the non-terminating Party within sixty (60) days after receipt of notice of such taking and such termination shall be effective on the effective date of such taking.  In the event this Lease is not terminated as a result of any such taking, any obligations of Tenant hereunder and all of the other provisions of this Lease shall remain in full force and effect; provided, however, that this Lease shall remain and continue in full force and effect relative to the portion of the Premises not so taken until the expiration of the Lease Term and Tenant shall be entitled to an equitable abatement of Base Rent based upon the utility and extent of the portion of the Premises so taken.  Notwithstanding the foregoing, the taking of any landscaped areas shall not result in the reduction of any of the Rent.  

13.4    Damages.  All damages awarded for any such taking under the power of eminent domain, whether for the whole or a part of the Premises, shall belong to and be the property of Landlord and are hereby assigned by Tenant to Landlord; provided, however, that so long as Tenant is not in default hereunder, Tenant may make a separate claim the cost of relocation provided the same does not reduce Landlord’s award.  

13.5    Rent.  If this Lease is terminated as provided herein, all Rent shall be paid to Landlord up to the date that possession is taken and Landlord shall make equitable refund of any Base Rent and Additional Rent paid by Tenant in advance and not yet earned.

13.6    Voluntary Sale.  A voluntary sale by Landlord to any person or entity having the power of eminent domain, either under the threat of condemnation or while condemnation proceedings are pending, shall be considered a taking by eminent domain for the purposes of this Section; provided that in such event Tenant shall be entitled to recover any of its costs of relocation to the extent Landlord is able to obtain reimbursement for such costs from such condemning authority and the same does not reduce the amount otherwise payable to Landlord.  

ARTICLE 14 - DAMAGE OR DESTRUCTION

14.1    Casualty.  A fire or other casualty of the type covered by the insurance required to be maintained herein shall be referred to herein as “Casualty.”  Tenant shall promptly give notice to Landlord of any damage to, or destruction of, the Premises caused for any reason including, without limitation, a Casualty.  If the Premises are damaged or destroyed as aforesaid after Substantial Completion by a Casualty, then, unless the Lease is terminated as provided in this Article 14, Landlord shall repair and restore the Premises (but not the Alterations, Tenant Improvements, trade fixtures, equipment, merchandise, inventory or personal property of Tenant) to substantially the same condition of the Premises immediately prior to such Casualty.  Such repair and restoration being collectively referred to herein as the "Restoration."  If Landlord undertakes the Restoration, then Tenant shall promptly repair, restore and replace its Alterations, Tenant Improvements, trade fixtures, equipment, merchandise, inventory and personal property as required by Tenant for Tenant’s Permitted Use.

14.2    Minor Loss.  If the Premises are damaged or destroyed after Substantial Completion by a Casualty resulting in a loss equal to or less than an aggregate loss of $250,000 (exclusive of 
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damage to Tenant's personal property), then, subject to the provisions of any Mortgage then in effect, the net insurance proceeds available from Landlord’s property insurance after any expenses incurred in obtaining payment of such proceeds (the “Proceeds”) shall be used by Landlord and applied to payment for the costs of the Restoration.   

14.3    Substantial Loss.  If the Premises are damaged or destroyed after Substantial Completion by a Casualty resulting in a loss which is greater than an aggregate loss of $250,000, then Landlord (or Tenant in the case of clauses (c), (d) and (e)) shall have the right to terminate this Lease provided (a) the Casualty is not covered by Landlord’s insurance policies, (b) if the Proceeds are insufficient to pay for all costs of the Restoration (including if due to actions of any Mortgage Lender), (c) the Restoration cannot be completed because the same would not comply with applicable Laws, (d) the Restoration cannot be completed with one (1) year after the date of the Casualty, as reasonably determined by Landlord, or (e) such Casualty occurs during the final two (2) Lease Years of the then current Term.   Landlord or Tenant, as applicable, shall exercise its right to terminate this Lease pursuant to this Section 14.3, if at all, by providing written notice thereof to the other Party within sixty (60) days after the occurrence of such Casualty.  If Landlord terminates this Lease, then Landlord shall be entitled to all Proceeds payable under Landlord’s Required Insurance with respect to such Casualty.  If Landlord does not terminate this Lease, then Landlord shall be obligated to perform the Restoration.  Tenant shall have the option to terminate this Lease if Landlord does not complete Restoration within such one (1) year of the date of the casualty giving rise to such Restoration obligations by providing written notice to Landlord.  Tenant shall have the right, but not the obligation, to pay to Landlord an amount by which the cost to complete a Restoration exceeds the amount of the insurance proceeds available with respect thereto (the “Insurance Shortfall”), in which event Landlord shall not have the right to terminate this Lease due to the insufficiency of insurance proceeds.  In the event Tenant pays the Insurance Shortfall to Landlord, the same shall be credited against the Purchase Option Price (as defined on Exhibit I) payable by Tenant to Landlord should Tenant acquire the Property pursuant to the Purchase Option (as defined on Exhibit I).

14.4    Rent Abatement.  If the Premises may not be reasonably used by Tenant for Tenant’s Permitted Use due to a Casualty, then Tenant’s obligation to pay Base Rent hereunder shall be equitably abated until such time as Tenant may again use the Premises for Tenant’s Permitted Use.

14.5    Casualty Prior to Substantial Completion.  If the Premises are damaged or destroyed by a Casualty prior to Substantial Completion, then (a) the Proceeds shall be paid to Landlord or as otherwise provided in any Mortgage then in effect, and (b) Landlord shall complete Restoration and may use the Proceeds to pay for the cost thereof.  Landlord shall be responsible for any deductible applicable to such Casualty.  In no event shall Landlord have any obligation to repair or restore any of the Tenant Improvements or any of Tenant’s other property.

ARTICLE 15 - ASSIGNMENT AND SUBLETTING

15.1    Assignment and Subleases Generally. 

15.1.1.    Subleases.  Tenant shall not sublease all or any portion of the Premises to any Person without obtaining the prior written consent of Landlord in each instance, which consent may be granted or withheld by Landlord in its sole and absolute discretion except as set forth herein.  Any sublease of the Premises or any portion thereof without the prior written consent of Landlord shall constitute an Event of Default hereunder and shall be void and of no force or effect.  A consent by Landlord to one such subletting shall not be deemed a consent to any subsequent subletting.  Tenant shall reimburse Landlord an amount not to exceed $2,500 for any expenses incurred by Landlord in 
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reviewing, and approving or denying, any request by Tenant for permission to sublease the Premises or any portion thereof.  Notwithstanding any sublease of the Premises, or any portion thereof or any consent of Landlord thereto, Tenant shall remain fully and primarily liable under this Lease.  Tenant shall be responsible for and shall pay all brokerage commissions and expenses incurred in connection with any subletting of the Premises.  If an Event of Default occurs and this Lease, or Tenant’s right to possession of the Premises under this Lease is terminated, then, at the sole option of Landlord, any such sublease then in effect shall be deemed to be terminated upon Landlord’s delivery of written notice thereof to such sublessee. Notwithstanding anything to the contrary in the foregoing, Tenant shall have the right to sublease the Premises or any portion thereof to an Affiliate of Tenant without the necessity of obtaining Landlord’s prior written consent thereto, provided that all of the following conditions are satisfied:  (a) no Event of Default has occurred and is continuing on the date of the sublease, (b) Tenant notifies Landlord of such sublease in writing prior to the execution of such Sublease, (c) Tenant is not relieved of primary liability for the performance of all obligations, covenants and responsibilities under this Lease to be performed by Tenant, and (d) there will be no change in Tenant’s Permitted Use of the Premises as a result of such subletting.  If Tenant subleases any space in the Premises to a third party who is not an Affiliate of Tenant, and Tenant receives any consideration therefor which exceeds the Base Rent (or in the case of a sublease of a portion of the Premises, the rate of such Base Rent) payable by Tenant under this Lease, then the Parties agree that Tenant shall pay the 50% of the amount such excess consideration to Landlord promptly upon receipt.

15.1.2.    Assignment.  Tenant shall not assign, convey, hypothecate, encumber, lien or otherwise transfer all or any portion of its interest under this Lease (each a “Transfer”) to any third party or grant a mortgage against Tenant’s interest herein without obtaining the prior written consent of Landlord in each instance, which consent may be granted or withheld by Landlord in its sole and absolute discretion except as set forth herein.  Any such Transfer without the prior written consent of Landlord shall constitute an Event of Default hereunder and shall be void and of no force or effect.  A consent by Landlord to one Transfer shall not be deemed a consent to any subsequent Transfer.  Tenant shall reimburse Landlord an amount not to exceed $2,500 for any expenses incurred by Landlord in reviewing, and approving or denying, any request by Tenant for permission to Transfer Tenant’s leasehold interest under this Lease.  Tenant shall be responsible for and shall pay all brokerage commissions and expenses incurred in connection with any Transfer of Tenant’s leasehold interest under this Lease.  Notwithstanding any Transfer, Tenant shall remain fully and primarily liable for the performance of Tenant’s obligations under this Lease. Notwithstanding anything to the contrary in the foregoing, Tenant shall have the right to assign this Lease to an Affiliate of Tenant without the necessity of obtaining Landlord’s prior written consent thereto, provided that all of the following conditions are satisfied:  (a) no Event of Default has occurred and is continuing on the date of the assignment, (b) Tenant notifies Landlord of such assignment in writing not less than thirty (30) days prior to such assignment, (c) the assignor is not relieved of primary liability for the performance of all obligations, covenants and responsibilities under this Lease to be performed by Tenant, and (d) there will be no change in Tenant’s Permitted Use of the Premises as a result of such assignment.  If Tenant Transfers this Lease to a third party who is not an Affiliate of Tenant, and Tenant receives any consideration therefor, then the Parties agree that Tenant shall pay 50% of the amount such consideration to Landlord promptly upon receipt.

15.1.3.    Subleases and Assignments Procedure.  If Tenant proposes to Transfer this Lease or sublet all or any portion of the Premises and requests the consent of Landlord thereto, then Tenant shall give Landlord a written request therefor which shall include the following information:

(a)    The name, contact person, address, telephone and facsimile number of the proposed sublessee, assignee, mortgagee or transferee;
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(b)    in the case of a sublease, a description of the portion of the Premises to be subleased and any Alterations to be made in connection therewith;

(c)    a description of any Alterations to be made by the assignee;

(d)    a description of the proposed activities by the proposed sublessee, assignee or transferee to be performed at the Premises and evidence that the same will comply with this Lease, all applicable zoning regulations and the Permitted Exceptions;

(e)    financial or other credit information regarding the proposed sublessee, assignee or transferee in reasonably sufficient detail and scope to evidence the satisfaction of any conditions imposed by Landlord in consenting to such sublease or Transfer;

(f)    a description of the material business terms of the sublease or Transfer agreement; 

(g)    such other information as Landlord may reasonably request with respect to any particular sublease or Transfer; and

(h)    If Landlord consents to the same, then the proposed sublessee, assignee, mortgagee or Transferee shall execute such documents as may be reasonably required by Landlord to evidence its obligations to be bound by and be subject to, the terms of this Lease or to satisfy any other conditions imposed by Landlord in granting such consent.

15.2    Right to Collect Rent.  If the Premises or any part thereof is subleased or occupied by any person or entity other than Tenant, then, after an Event of Default by Tenant hereunder, Landlord shall have the right, but not the obligation, to collect Rent from the subtenant or occupant and apply the net amount collected to the Base Rent and Additional Rent herein reserved, but no such subletting, occupancy or collection shall be deemed a waiver of the agreements of the Parties under this Article 15, or the acceptance of subtenant or occupant as tenant, or a release of Tenant from the further performance of the terms, covenants, and conditions on the part of Tenant to be observed or performed hereunder, and, subsequent to any subletting, Tenant's liability hereunder shall continue notwithstanding any subsequent modification or amendment hereof or the release of any subsequent tenant hereunder from any liability, to all of which Tenant hereby consents in advance.

15.3    Change in Control.  For purposes of this Lease, the term “Change in Control” means, with respect to Tenant, any issuance, redemption, sale, assignment or other transfer of shares of the voting stock, partnership interests, membership interests (or equivalent ownership interest if Tenant is a business organization other than a corporation, partnership or limited liability company) of Tenant such that, upon the effectiveness of such issuance, redemption, sale, assignment or transfer, (a) the identity of the person or persons beneficially owning more than fifty percent (50%) of such voting stock, partnership interests, membership interests (of equivalent ownership interests) changes from that prior to such issuance, redemption, sale, assignment or transfer, or (b) the identity of the person or persons possessing the right to control the management of Tenant changes from that prior to such issuance, redemption, sale, assignment or transfer.  Notwithstanding anything to the contrary in the foregoing, if a majority of the shares of voting stock of Tenant are or become listed, and publicly traded, on a reasonably legitimate and internationally recognized stock exchange, then so long as such shares are so listed and publicly traded, no Change in Control shall be deemed to have occurred as a 
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result of the issuance of such shares to the public or any subsequent sale, assignment or transfer of such shares on such exchange; provided, however, that if a majority of the voting shares of Tenant become beneficially owned by a relatively small number of investors as part of a so-called “going private” transaction or in a transaction reasonably likely to result in a de-listing of such shares from any such exchange, then a Change in Control will be deemed to have occurred as a result of any such transaction.  A Change in Control shall constitute a Transfer under this Lease requiring Landlord’s consent.

15.4    Merger or Consolidation.  The merger of Tenant into another entity or the consolidation of Tenant with one or more other entities shall each constitute a Transfer under this Lease requiring Landlord’s consent.  

ARTICLE 16 - QUIET ENJOYMENT

16.1    Quiet enjoyment.  If Tenant pays the Rent and observes and performs all of the obligations, covenants, conditions and provisions on Tenant's part to be performed and observed under this Lease, then Tenant shall have and Landlord covenants Tenant’s quiet use and possession of the Premises throughout the Lease Term and any extensions thereof, free of claims by or through Landlord.

16.2    Signs.  So long as no Event of Default is continuing, Tenant shall have the right to install back-lit building signage on the exterior of the Building.  Such exterior Building signage shall be subject to all applicable governmental approvals (including the City of Creve Coeur, Missouri) as well as Landlord’s approval, in its sole and absolute discretion.  Tenant further shall have the right from time to time to install interior Building signage which is not visible from the exterior of the Building.  Any and all signs installed by Tenant on the Premises shall be installed at Tenant's sole cost and expense and shall be removed by Tenant at the Expiration Date or earlier termination of Tenant's possession of the Premises at Tenant's sole cost and expense.  Tenant shall be obligated to repair any damage caused by any such removal and to reimburse Landlord for the cost of painting any areas of the Building affected by any stains or discoloration caused by the removal of any such sign or signs.  All such signs shall comply with all Laws and all title restrictions affecting the Premises.

16.3    Liens.  Landlord's title to the Premises is and always shall be paramount to the title of Tenant and nothing in this Lease shall empower Tenant to do any act which may cause a lien on or encumber the title of Landlord.  Tenant has no authority or power to cause or to permit any lien or encumbrance of any kind whatsoever, whether created by the act of Tenant, operation of law or otherwise, to attach or to be placed upon the Premises or the Building and any and all such liens and encumbrances created by Tenant shall attach only to Tenant's interest in the Premises.  

ARTICLE 17 – LANDLORD’S RIGHT TO MORTGAGE, SELL OR ASSIGN RENTS

17.1    Landlord’s Right to Mortgage.  Landlord shall have the right at any time and from time to time to place one or more Mortgages on all or any part of the Premises and to assign the Rents as further collateral for any such Mortgage Loan.  Should Landlord assign the Rents to any Mortgage Lender and such Mortgage Lender demand in writing that Tenant pay the Rents directly to such Mortgage Lender, Landlord releases Tenant from any claim or demand based upon Tenant’s compliance with such Mortgage Lender’s demand to directly receive the Rents.  

17.2    Landlord’s Right to Sell or Convey.  Nothing contained in this Lease shall be deemed in any way to limit or restrict or otherwise affect Landlord’s absolute right at any time to convey its 
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interest in the Premises following Substantial Completion. In the event of any such conveyance, (a) the transferor shall be relieved from and after the date of such conveyance of all liability relative to obligations of the Landlord to be performed under this Lease after the effectiveness of such conveyance (but nothing herein shall relieve the transferor of any liabilities hereunder arising out of acts or events occurring prior to such conveyance, unless expressly assumed by the transferee), (b) Tenant shall pay and attorn to the transferee, the Rent payable by Tenant to Landlord, and such transferee shall fully recognize Tenant’s tenancy and all of its rights under this Lease, and (c) the grantor under such conveyance shall assign or deliver to the transferee the Security Deposit to the extent the same has not been applied as provided herein.

17.3    Subordination.  This Lease, and all rights of Tenant hereunder, are and shall be subject and subordinate to all Mortgages which may now affect all or any portion of the Premises and to all renewals, modifications, replacements and extensions thereof; provided, however, that if the holder of any such Mortgage elects (in its sole discretion and in writing) to subordinate such holder's Mortgage to this Lease (which election may be made at any time), then such election shall be binding on Tenant, and, if the Premises is thereafter sold through foreclosure, then the Tenant shall attorn to the purchaser at such sale as its landlord.  Tenant shall, if requested by any Mortgage Lender or prospective Mortgage Lender, execute and deliver such commercially reasonable subordination, nondisturbance and attornment agreement as such Mortgage Lender may request which agreement shall provide, among other commercially reasonable terms as may be required by such Mortgage Lender, that this Lease will be subordinate to the lien of such Mortgage Lender’s Mortgage, that Tenant’s right to possession of the Premises will not be disturbed so long as no Event of Default has occurred and that Tenant will attorn to the purchaser of the Premises at any foreclosure sale conducted under such Mortgage.  

17.4    Estoppel.  Within thirty (30) days after a written request from Landlord, Tenant shall execute and deliver to Landlord or such person as may be designated by Landlord a properly completed Estoppel Certificate in the form attached hereto as Exhibit E.

ARTICLE 18 - SECURITY DEPOSIT

Tenant shall deposit with Landlord on the Effective Date the Security Deposit as security for Tenant’s full and faithful performance of every provision of this Lease.  Landlord shall be required to deposit the Security Deposit into a separate interest-bearing deposit account that is not commingled with other funds.  Landlord shall have no liability in connection with the rate of interest which may or may not be paid with respect to such deposit account and shall have no obligation to achieve any particular return thereon.  If an Event of Default occurs, then Landlord may use, apply or retain all or any part of the Security Deposit, together with any interest earned thereon, for the payment of any amount in default or for the payment of any other amount which Landlord may expend or become obligated to expend by reason of Tenant's default or to compensate Landlord for any loss or damage which Landlord may suffer by reason of Tenant's default.  If any portion of the Security Deposit is to be used or applied, Tenant shall, within ten (10) Business Days after written demand therefor, deposit with Landlord an amount sufficient to restore the Security Deposit to its original amount and Tenant's failure to do so shall constitute an Event of Default.  If Tenant shall fully perform all of the obligations under this Lease to be performed by Tenant, the Security Deposit and its accrued interest, or any balance thereof, shall be returned to Tenant promptly after the expiration of the Lease Term and upon Tenant's surrender of the Premises at the time and in the condition required in this Lease.

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ARTICLE 19 - ENVIRONMENTAL MATTERS

19.1    Definitions.  As used in this Article, the following definitions shall apply:

19.1.1    “Hazardous Substance” means any substances or materials which are categorized or defined as hazardous or toxic under any applicable local, state or federal law, rule or regulation pertaining to environmental regulation, contamination, cleanup or disclosure, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”, 42 U.S.C. Sect. 9601, et. seq.), as amended, the Resource Conservation and Recovery Act (42 U.S.C. Sect. 6901, et. seq.), as amended, the Clean Water Act (33 U.S.C. Sect. 1251, et. seq.), as amended, the Clean Air Act (42 U.S.C. Sect. 7401, et. seq.), as amended, Superfund Amendments and Reauthorization Act, or state super lien or environmental cleanup or disclosure statutes (all such laws and regulations being referred to herein collectively as “Environmental Laws”).

19.1.2    “Release” means any releasing, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, disposing or dumping.

19.1.3    “Notice” means any summons, citation, directive, order, claim, litigation, investigation, proceeding, judgment, letter or other written communication, actual or threatened, from any federal, state or local governmental agency or authority or any other entity or individual (including, without limitation, any owner of property adjacent to or near the Premises or any other entity or individual suffering or alleging property damage or personal injury) concerning any intentional or unintentional act or omission that has resulted in or may result in the Release of a Hazardous Substance into the “environment” as such term is defined in CERCLA, from or on the Premises or Project, or any actual or constructive knowledge, after due inquiry and investigation, of any fact that could give rise to any of the above.

19.1.4    “Environmental Condition” means any condition with respect to the air, soil, surface, surface water, groundwater, stream sediments and any similar condition that currently or in the future could require investigative or remedial action and/or may result in claims, demands or liabilities to Tenant or Landlord by third parties, including, without limitation, any federal, state or local Governmental Authority, any owner of property adjacent to or near the Premises or any other entity or individual suffering or alleging property damage or personal injury.

19.2    Landlord’s Exculpation with Respect to Hazardous Substances.  Nothing in this Lease shall obligate Landlord to expend any funds, take any action or otherwise assume any responsibility for any Hazardous Substances or Environmental Conditions at or affecting the Premises to the extent caused by third parties.

19.3    Tenant’s Obligations with Respect to Hazardous Substances.  Tenant shall not cause or permit, and shall not permit its subtenants or its or their respective agents, employees or contractors to cause or permit, any Release at or on the Premises of any Hazardous Substances in violation of, or in a manner which is reasonably likely to result in a violation of or cause any liability under any Environmental Laws.  Tenant shall not use, store or Release any Hazardous Substances, and shall not permit the use, storage or Release of Hazardous Substances on the Premises, except as expressly permitted under Section 7.4 hereof.  Tenant shall exercise, and shall cause its subtenants and its and their respective agents, employees and contractors to exercise due care in the handling, storage or transportation of any Hazardous Substances, and shall cause the same to be handled, stored and transported in compliance with all Environmental Laws.  Tenant shall not permit the Premises to be used or operated in a manner that may cause the Premises to be contaminated by any Hazardous 
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Substances or in a manner which is reasonably likely to result in a violation of or liability under, any Environmental Laws.  Tenant shall not install or permit the installation on the Premises of any above ground or underground storage tanks or asbestos containing materials.  Tenant covenants that it shall cause any maintenance, repairs or alterations of the Premises undertaken by, through or under Tenant to be done in a way so as not to violate Environmental Laws or expose persons working on or visiting the Premises to Hazardous Substances in excess of safety levels established by applicable Environmental Laws.

19.4    Landlord’s Obligations with respect to Hazardous Substances.  Landlord shall not cause or permit, and shall not permit its respective agents, employees or contractors to cause or permit, any Release at or on the Premises of any Hazardous Substances in violation of, or in a manner which is reasonably likely to result in a violation of or cause any liability under any Environmental Laws.   Landlord shall defend (by counsel reasonably acceptable to Tenant) and indemnify and hold Tenant and the Tenant Indemnified Parties harmless from and against all claims, liability and expenses of any kind (including without limitation reasonable expenses of investigation by engineers, environmental consultants and similar consultants and reasonable fees and disbursements of counsel), arising out of, in respect of or in connection with any breach of Landlord’s obligations in this Article.  

19.5    Tenant’s Indemnification.  Tenant shall be solely responsible for and shall defend (by counsel acceptable to Landlord), indemnify and hold Landlord and the Landlord Indemnified Parties harmless from and against all claims, liability and expenses of any kind (including without limitation reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and reasonable fees and disbursements of counsel), arising out of, in respect of or in connection with (a) any breach of Tenant’s obligations in this Article, (b) the occurrence of any Environmental Condition at, on or under the Premises during the Lease Term caused by Tenant or its employees, agents, contractors, sublessees or invitees, (c) the Release, threatened Release or presence of any Hazardous Substances at, on or under the Premises during the Lease Term caused by Tenant or its employees, agents, contractors, sublessees or invitees, or (d) any other matters arising under or relating to any Environmental Law and relating to Tenant’s use or operations at the Premises.

19.6    Landlord’s Indemnification.  Landlord shall be solely responsible for and shall defend (by counsel acceptable to Landlord), indemnify and hold Tenant and the Tenant Indemnified Parties harmless from and against all claims, liability and expenses of any kind (including without limitation reasonable expenses of investigation by engineers, environmental consultants and similar technical personnel and reasonable fees and disbursements of counsel), arising out of, in respect of or in connection with (a) the occurrence of any Environmental Condition at, on or under the Premises caused by Landlord, Contractor or their respective employees, agents or subcontractors, or (c) the Release, threatened Release or presence of any Hazardous Substances at, on or under the Premises caused by Landlord, Contractor or their respective employees, agents or subcontractors.

19.7    Notices of Environmental Issues.  Immediately upon obtaining knowledge thereof, Tenant shall give to Landlord notice of the occurrence of any of the following events: (a) the failure of Tenant or the Premises to comply with any Environmental Law in any manner whatsoever; (b) the issuance to Tenant or any tenant of space in the Premises or any assignee of Tenant of any Notice with regard to the Premises or the use thereof; (c) any written notice of a pending or threatened investigation as to whether the Premises or Tenant's (or its subtenants' or assignees') operations on the  Premises are in compliance with or may lead to liability to Tenant or Landlord under, any Environmental Law; or (d) the occurrence of an event or the existence of a situation which is reasonably likely to result in a violation of or liability under an Environmental Law with respect to 
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the Premises or which is likely to result in a Party being liable to the other Party by virtue of the indemnities given pursuant to this Article.

19.8    Landlord’s Right to Inspect.  If Landlord believes that Environmental Laws are being violated on the Premises, or at the request of any prospective purchaser of the Premises or any prospective lender, then Landlord and its agents shall have the right, but not the duty, to inspect the Premises and conduct tests thereon at any time to determine whether or the extent to which there is Hazardous Substances, toxic or infectious waste on the Premises, and in such case, Landlord shall have the right to immediately enter upon the Premises to remedy any contamination found thereon.  In exercising its rights herein, any interference with Tenant’s business shall not constitute an eviction of Tenant, in whole or in part, and Landlord shall not be liable for any interference, loss, or damage to Tenant’s property or business caused thereby, unless the Hazardous Substance, toxic or infectious waste is caused by the negligence or willful misconduct of Landlord, or its employees, agents, or contractors.  At Landlord’s request, Tenant shall execute affidavits, representations and estoppels from time to time, concerning Tenant ’s knowledge and belief regarding the presence of any Hazardous Substance or toxic material on the Premises.  The covenants and obligations of Tenant and Landlord hereunder shall survive the Expiration Date.

19.9    Survival.  Without limiting the generality of any other provisions of this Lease, the indemnity obligations of Tenant and Landlord and the rights and remedies of Landlord and Tenant under this Article 19 shall survive the termination of this Lease.

ARTICLE 20 - FINANCIAL COVENANTS

20.1    Tenant’s Financial Covenant.  Tenant shall maintain, at all times during the Term, Liquidity of not less than $5,000,000.00.  

20.2    Financial Statements.  Tenant hereby agrees to deliver the following Landlord:

(a)    without necessity of any request by Landlord, as soon as available and in no event later than thirty (30) days after the last day of each Calendar Quarter, (i) quarterly operating statements in a form consistent with Tenant’s past practices, and (ii) a written certification of Tenant’s Liquidity as of the last day of such Calendar Quarter, together with such backup information as Landlord may reasonably require to verify Tenant’s Liquidity; and

(b)    without necessity of any request by Landlord, as soon as available and in no event later than sixty (60) days after the end of each fiscal year of Tenant, copies of Tenant’s financial statements including a balance sheet and a statement of income and expense prepared as of the end of such fiscal year of Tenant, which financial statements shall be audited by a firm of certified public accountants or shall be certified by Tenant's chief financial officer as being prepared in accordance with generally accepted accounting principles consistently applied and fairly representing the financial condition of Tenant as the date thereof.  Such financial statements shall cover Tenant only and may not be consolidated with the financial statements of any parent or affiliate.

ARTICLE 21 - OPTION TO PURCHASE

Tenant shall have an option to purchase the Premises on the terms and conditions set forth on Exhibit I attached hereto.
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ARTICLE 22 - MISCELLANEOUS

22.1    Notices.  All notices which Landlord or Tenant may be required, or may desire, to serve on the other Party may be served, as an alternate to personal service, by mailing the same by registered or certified mail, postage prepaid, or may be sent by overnight courier, addressed to Landlord at Landlord’s Address For Notices and to Tenant at Tenant’s Address For Notices, or, by email (provided such email references this Section 22.1) to the email address shown in Article 1 herein.  Any notice shall be deemed to have been given and served on the date shown on the return receipt, in the case of mailing or courier delivery, or on the date transmittal in the case of email.  In the event notice pursuant to this Article is served by email by a Party, that Party shall promptly send a copy of such notice to the other Party’s Address for Notices set forth in Article 1 of this Lease by one of the other means sent forth herein.

22.2    Amendments.  This Lease shall not be amended, changed or modified in any way unless in writing executed by Landlord and Tenant.  If (a) there occur any amendments, modifications, or repeals of Section 1400Z, et seq. of the Internal Revenue Code or the regulations issued with respect thereto, (b) additional regulations or guidance is issued by the applicable governmental authorities with respect to the application foregoing, or (c) Landlord is advised by its tax advisor that an amendment to this Lease is necessary or desirable for tax purposes, then, at Landlord’s reasonable request, Landlord and Tenant shall amend this Lease to achieve the tax goals of Landlord with respect thereto, provided that such amendments do not increase Tenant’s financial or other obligations under this Lease.

22.3    Attorneys' Fees.  In any litigation or arbitration between the Parties to enforce or interpret any of the terms or provisions of this Lease, the prevailing Party in the litigation or arbitration shall be entitled, in addition to damages, injunctive relief or other relief, to its reasonable costs and expenses, including, without limitation, court costs and reasonable attorneys' fees and expenses, including expert witness fees and expenses.

22.4    Representations and Warranties.  The following representations and warrants are made as of the Effective Date:

22.4.1    Authority.  The undersigned representatives of Landlord and Tenant each represent and warrant, respectively, that such persons have been duly authorized and directed to execute and deliver this Lease on behalf of the Party for which such person purports to be acting and that this Lease constitutes the legal, valid and binding obligations of such Parties.

22.4.2    Title.  Landlord owns, or as of the satisfaction of the contingency set forth in Article 23 will own, fee simple title to the Property.

22.4.3    Due Diligence Documents.  Landlord has delivered to Tenant copies of the Due Diligence Documents in its possession, which Due Diligence Documents include all third party studies and reports obtained by Landlord with respect to the Property, expressly excluding any information, materials analysis prepared by Landlord’s attorneys, accountants or financial consultants.  

22.4.4    Purchase Agreement.  Landlord has delivered to Purchaser a copy of the purchase agreement (the “Purchase Agreement”) pursuant to which Landlord has contracted to acquire the Property.  
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The foregoing representations and warranties are made by 1200 Research Owner, LLC, a Missouri limited liability company, and shall not be deemed to have been made by any subsequent Landlord hereunder nor subject any subsequent Landlord hereunder to any liability with respect thereto.

22.5    Purchase Agreement.  If, after the Effective Date, Tenant determines that the seller under the Purchase Agreement has breached any representation, warranty or obligation which survives the closing on Landlord’s acquisition of the Property thereunder and the damage to Tenant as a result thereof exceeds $25,000, Tenant shall deliver written notice thereof to Landlord, together with evidence reasonably demonstrating such breach.  Upon Landlord’s receipt of such written notice, Landlord shall either (a) take commercially reasonable actions to enforce the seller’s obligations under the Purchase Agreement with respect to such breach, or (b) assign to Tenant in writing the right to enforce the seller’s obligations under the Purchase Agreement with respect to such breach, in which event Tenant shall have the right to enforce the same, at Tenant’s sole cost and expense.  This Section 22.5 shall remain in effect for until the date which is two hundred seventy (270) days after  the date on which Landlord acquires the Property, after which date this Section 22.5 shall be of no further force or effect.

22.6    Captions.  All captions, headings, titles and numerical references are for convenience only and shall have no effect on the interpretation of this Lease.

22.7    Counterparts.  This Lease may be signed in multiple counterparts which, when signed and delivered by all the Parties, shall constitute a binding agreement.  In addition, delivery by telecopy, “pdf”, “tif” or “jpg” of the image of an executed counterpart of a signature page to this Lease, or execution of this Lease utilizing DocuSign or another electronic signature service, will be valid and effective as delivery of an original manually executed counterpart of such document for all purposes.

22.8    Exhibits Incorporated by Reference.  All exhibits attached to this Lease are incorporated in this Lease by this reference and made a part hereof.

22.9    Merger of Prior Agreements.  This Lease contains the entire understanding between the Parties relating to the transaction contemplated by this Lease.  All prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged in this Lease and shall be of no further force or effect.  No rights are conferred upon either Party until this Lease has been executed by both Parties.

22.10    Memorandum of Lease.  The Parties shall execute a memorandum of lease in form attached hereto as Exhibit J.  Tenant shall pay all costs incurred in the recording of any such memorandum.  Any recording of this Lease not in conformity with the requirements of this Section 22.9 shall constitute an Event of Default hereunder.

22.11    No Waiver.  A waiver by either Party of a breach of any of the covenants, conditions or agreements under this Lease to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions of this Lease.

22.12    Relationship of Parties.  Landlord shall not, by virtue of the execution of this Lease or the leasing of the Premises to Tenant, become or be deemed a partner of Tenant in the conduct of Tenant's business on the Premises or otherwise.
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22.13    Severability.  In the event any provision of this Lease is found to be unenforceable, the remainder of the Lease shall not be affected, and any provision found to be invalid shall be enforceable to the extent permitted by law.

22.14    Successors.  Except as expressly provided herein, this Lease and the obligations of Landlord and Tenant contained herein shall bind and benefit the successors and permitted assigns of the Parties hereto.

22.15    Governing Law; Jurisdiction Waiver of Jury Trial.

22.14.1    This Lease and all matters pertinent thereto shall be construed and enforced in accordance with the laws of the State, without regard to its conflicts of law provisions. 

22.14.2    Any litigation arising under this Lease shall be subject to the jurisdiction of any state or federal court located in the State of Missouri and venue shall be in the United States District Court for the Eastern District of Missouri or the Circuit Court for the State of Missouri located in St. Louis County, Missouri.

22.14.3    TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY WAIVES ANY RIGHT IT MAY HAVE TO A JURY TRIAL IN THE EVENT OF LITIGATION BETWEEN TENANT AND LANDLORD PERTAINING TO THIS LEASE.

22.16    Time of Essence.  Time is of the essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease.

22.17    Commission.  Landlord and Tenant represent and warrant to each other that they have not had any dealings with any real estate broker, finders or agents in connection with this Lease. Landlord and Tenant shall indemnify and hold each other harmless from and against any liability and cost which Landlord or Tenant may suffer in connection with any real estate broker claiming by, through or under either Party seeking any commission, fee or payment in connection with this Lease.

22.18    Confidentiality.  Landlord and Tenant shall keep the terms of this Lease confidential except to the extent disclosure is reasonably necessary in the conduct of each Party’s business or obligations under this Lease or as otherwise required by law.  In addition, each Party shall have the right to disclose this Lease and the terms hereof to its owners, employees, agents, attorneys, accountants, consultants, contractors, prospective purchasers, and existing and prospective financing sources, provided such recipient is informed of the confidentiality obligations hereunder with respect to such information.  Each Party shall be liable for any breach of the confidentiality provisions hereof caused by parties to whom such Party provides confidential information hereunder.

ARTICLE 23 - ACQUISITION CONTINGENCY

23.1    Acquisition Contingency.  Anything herein to the contrary notwithstanding, it is agreed and acknowledged by the Parties hereto that as of the date hereof, Landlord does not own the Premises.  Anything herein to the contrary notwithstanding, the rights, duties and obligations of Landlord and Tenant hereunder are expressly subject to and contingent upon the acquisition by Landlord of fee title to the Land by no later than November 1, 2020 (as the same may be extended by agreement of the Parties, the “Contingency Date”), upon terms and conditions acceptable to Landlord, 
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in its sole and absolute discretion.  If Landlord has not acquired the Land by the Contingency Date, then Landlord shall notify Tenant thereof, and either Party may terminate this Lease at any time thereafter (but prior to the date Landlord acquires the Land) by delivering written notice of such termination to the other Party, whereupon the Parties shall be released and discharged from any and all obligations and liabilities not theretofore accrued under this Lease.  If this Lease is so terminated, then Tenant shall pay to Landlord, within ten (10) days from the date Landlord has submitted a written statement to Tenant requesting such payment, all amounts reasonably and in good faith incurred by Landlord in connection with any one or more of the following:  (a) the proposed acquisition of the Land, including, without limitation, all title and survey expenses, (b) other costs or expenses that would not have been incurred by Landlord had Landlord not been involved in endeavoring to acquire of the Land and all attorneys’ fees associated with any of the foregoing, and (c) costs incurred in connection with preparing or obtaining plans, specifications, permits, site preparation, advance orders of materials, testing, surveying, engineering, staging or other preparations for construction. Landlord agrees to use all reasonable efforts to acquire the Land on terms and conditions acceptable to Landlord, as aforesaid.  If Landlord acquires title to the Land after the Contingency Date but before either Party has terminated this Lease, then neither Party shall have any further right to terminate this Lease under this Section.

23.2    Tenant Approval Contingency.  The effectiveness of this Lease is conditioned upon the ratification and approval of this Lease by Tenant’s board of directors and required shareholders by 12:00 p.m. (St. Louis time) on November 3, 2020 (the “Approval Deadline”).  Tenant shall deliver written notice to Landlord that such ratification and approval has been received promptly upon receipt thereof.  If such written notice is received by Landlord prior to the Approval Deadline, then the contingency set forth in this Section 23.2 shall be deemed satisfied and this Lease shall continue in full force and effect.  If such written notice is not received by Landlord by the Approval Deadline, then this Lease shall be deemed void ab initio and neither party shall have any further rights or obligations hereunder.  

ARTICLE 24 - SCHEDULE OF EXHIBITS

The following exhibits are attached hereto and are made a material part of this Lease:

A    Legal Description of the Land
B    Description of the Equipment
C    Work Letter
C-1    Preliminary Plans 
D    Schedule of Warranties
E    Estoppel Certificate
F    Base Rent Schedule
G    Property Management Schedule
H    Fair Market Rent Determination
I    Option to Purchase
J    Form of Memorandum of Lease
K    List of Due Diligence Documents

[SIGNATURE PAGE FOLLOWS]

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SIGNATURE PAGE FOR
LEASE AGREEMENT

IN WITNESS WHEREOF, the Parties have executed this Lease as of the day and year first above written.

                        LANDLORD:

1200 RESEARCH OWNER, LLC,
a Missouri limited liability company

By: /s/ Felix Williams    
Printed Name: Felix Williams
Title: Manager

                        TENANT:
                        

                        BENSON HILL, INC.,
                        a Delaware corporation

By: /s/ Michael B. Wainscott    
Printed Name: Michael B. Wainscott
Title: CFO

S-1

RATIFICATION AND AMENDMENT TO LEASE AGREEMENT

This RATIFICATION AND AMENDMENT TO LEASE AGREEMENT (“Agreement”), dated as of November 4, 2020, is made and entered into by and between 1200 Research Owner, LLC, a Missouri limited liability company (“Landlord”), and Benson Hill, Inc., a Delaware corporation (“Tenant”).  Landlord and Tenant shall individually be referred to as a “Party” and collectively as the “Parties”.  The following recitals form the basis for this Agreement and are made a material part hereof:

A.    Landlord and Tenant have entered into that certain Lease Agreement dated as of October 30, 2020 (the “Lease”), pursuant to which Tenant leases from Landlord the property commonly known as 1200 Research Blvd., Creve Coeur, St. Louis County, Missouri 63132 (the “Property”);

B.    The Lease includes certain contingencies related to Landlord’s acquisition of the Property and the approval of the Lease by Tenant’s board of directors and shareholders; and

C.    The Parties hereby desire to amend the Lease to delete the aforementioned contingencies and ratify the Lease.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, Landlord and Tenant hereby agree as follows:

1.Removal of Contingencies.  The Parties hereby acknowledge that Landlord has acquired the Property and that Tenant has received its requisite board of director and shareholder approval of the Lease.  The parties hereby amend the Lease to delete Article 23 thereof in its entirety, which Article 23 is null and void.  

2.Ratification and Reaffirmation.  Each Party ratifies the Lease as amended hereby and further reaffirms all of its obligations under the Lease.  Each Party agrees that the Lease is the legal and binding of such Party and is enforceable against such Party in accordance with its terms.  For the avoidance of doubt, the Lease remains in full force and effect notwithstanding that any contingency may not have been satisfied by the deadline therefor set forth in deleted Article 23 of the Lease.  To the extent the Lease may have been deemed terminated under deleted Article 23 of the Lease, the Lease is hereby reinstated by the Parties.

3.Miscellaneous.  This Agreement shall be binding upon the Parties hereto and their respective successors and assigns.  Except as expressly modified herein, all other terms, provisions and conditions of the Lease shall remain in full force and effect.  In the event of a conflict between the terms of the Lease and the terms of this Agreement, the terms of this Agreement shall prevail and be controlling.  This Agreement may be executed in electronic format (including, without limitation, delivery by .pdf, .jpeg or .tif file or execution utilizing DocuSign, AdobeSign or a similar signature program) and in multiple counterparts, and each counterpart shall be deemed an original hereof.  Accordingly, this Agreement shall become binding, notwithstanding the execution of separate originals hereof, one by each of the Parties hereto.

[SIGNATURE PAGE FOLLOWS]

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SIGNATURE PAGE FOR
RATIFICATION AND AMENDMENT TO LEASE AGREEMENT

IN WITNESS WHEREOF, the Parties have executed this Lease as of the day and year first above written.

			
	LANDLORD:
	
	1200 RESEARCH OWNER, LLC,
	a Missouri limited liability company
	
	By: /s/ Felix Williams, Manager

	Printed Name: Felix Williams
Title:                Manager

			
	TENANT:
	
	BENSON HILL, INC.,
	a Delaware corporation
	
	
	By: /s/ Michael B. Wainscott

	Printed Name: Michael B. Wainscott
	Title:                Chief Financial Officer

S-1

SECOND AMENDMENT TO LEASE AGREEMENT

THIS SECOND AMENDMENT TO LEASE AGREEMENT (this “Amendment”), dated as of December 10, 2020, is made and entered into by and between 1200 Research Owner, LLC, a Missouri limited liability company (“Landlord”), and Benson Hill, Inc., a Delaware corporation (“Tenant”).              Landlord and Tenant shall individually be referred to as a “Party” and collectively as the “Parties”. The following recitals form the basis for this Agreement and are made a material part hereof:

A.Landlord and Tenant have entered into that certain Lease Agreement dated as of October 30, 2020 (as ratified and amended, the “Lease”), as ratified and amended by that certain Ratification and Amendment to Lease Agreement dated as of November 4, 2020, by and between Landlord and Tenant, pursuant to which Tenant leases from Landlord the property commonly known as 1200 Research Blvd., Creve Coeur, St. Louis County, Missouri 63132 (the “Property”);

B.Landlord and Tenant have agreed to amend the terms of the Lease as more particularly set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the Parties, Landlord and Tenant hereby agree as follows:

1.Capitalized Terms.    Capitalized Terms used but not defined herein shall have the            meaning ascribed to them in the Lease.

2.Sales Tax Exemption.    Section 6.1 of the Work Letter is hereby deleted in its entirety and replaced with the following new Section 6.1:

“6.1 Pursuant to Section 144.030.2(33) of the Missouri Revised Statutes, certain tangible personal property and utilities purchased for use or consumption directly or exclusively in the research and development of agricultural/biotechnology and plant genomics products and prescription pharmaceuticals consumed by humans or animals are exempted from local sales taxes laws. Tenant has requested that Landlord and Contractor acquire certain Equipment and materials for the Work without paying sale tax with respect thereto based on the foregoing sales tax exemption.  Due to the schedule for ordering the Equipment and materials for the Work, there is insufficient time to obtain a letter ruling from the applicable Missouri governmental authority confirming whether such Equipment and materials are exempt from sale tax pursuant to such exemption. Tenant shall indemnify, defend and hold harmless all of the Landlord Indemnified Parties from and against any and all claims, causes of action, suits, arbitration proceedings, taxes (including sales tax and interest and penalties thereon), losses, damages, judgments, settlements, penalties, fines and expenses (including, without limitation, reasonable attorneys' fees and expenses, court costs, expert witness fees and expenses and other dispute resolution expenses) suffered or incurred by any one or more of the Landlord Indemnified Parties resulting from the failure to pay sale taxes on any of the Equipment or the materials used in connection with the Work. Any amounts payable in connection with the foregoing shall be paid by Tenant to Landlord within ten (10) Business Days after Landlord's written request therefor. Without limiting the foregoing, if any taxing authority challenges the nonpayment of such sales tax or determines that such 

nonpayment was unlawful or impermissible and, as a condition to contesting or appealing such determination Landlord or Contractor is obligated to pay or escrow all or a portion of such disputed sale tax, Tenant, at its sole cost and expense, shall be responsible for paying or escrowing all such amounts when due. Tenant acknowledges that Landlord and Contractor are unwilling to forego payment of sale taxes on certain Equipment and materials used in connection with the Work without the agreements of Tenant in this Section 6.1. Landlord and Tenant further agree that, for purposes of determining the Project Budget pursuant to Section 3.3 of this Work Letter, Landlord shall exclude from the calculation of Project Costs any sales taxes which are not paid based on the exemption described in this Section 6.1 (unless the same has been disputed by any applicable governmental authority).”

3.Miscellaneous.    This Amendment shall be binding upon the Parties hereto and their respective successors and assigns. Except as expressly modified herein, all other terms, provisions and conditions of the Lease shall remain in full force and effect.  In the event of a conflict between the terms of the Lease and the terms of this Amendment, the terms of this Amendment shall prevail and be controlling. This Amendment may be executed in electronic format (including, without limitation, delivery by .pdf, .jpeg or .tif file or execution utilizing DocuSign, AdobeSign or a similar signature program) and in multiple counterparts, and each counterpart shall be deemed an original hereof. Accordingly, this Amendment shall become binding, notwithstanding the execution of separate originals hereof, one by each of the Parties hereto.

(SIGNATURE PAGE TO FOLLOW]

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SIGNATURE PAGE FOR
SECOND AMENDMENT TO LEASE AGREEMENT
IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and year first above written.

			
	LANDLORD:
	
	1200 RESEARCH OWNER, LLC,
	a Missouri limited liability company
	
	By: /s/ Felix Williams            

	Printed Name: Felix Williams
Title:                Manager

			
	TENANT:
	
	BENSON HILL, INC.,
	a Delaware corporation
	
	
	By: /s/ Michael B. Wainscott        

	Printed Name: Michael B. Wainscott
	Title:                Chief Financial Officer

S-1Document

Exhibit 10.17

CREDIT AGREEMENT

THIS CREDIT AGREEMENT (as the same may from time to time be amended, restated, modified or otherwise supplemented, this “Agreement”) is dated this 11th day of April, 2019 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”).

RECITALS

WHEREAS, Borrower has requested that Lender loan up to $23,500,000 to Borrower via a (a) $6,000,000 revolving credit facility, (b) a $11,375,000 term loan facility, (c) a $2,625,000 term loan facility and (d) a $3,500,000 term loan facility;

WHEREAS, the proceeds of the loans will be used by Borrower to reimburse DOB Holdings (as hereinafter defined) for a portion of the cost of the Acquisition (as hereinafter defined), used to refinance certain existing indebtedness of Borrower, used to finance working capital and other general business purposes of Borrower and used to finance the purchase of certain grinding equipment at Borrower’s facility in Lakeview, North Dakota;

WHEREAS, the loans will generally be (a) secured by the personal property of Borrower, now existing or hereafter acquired, and the real property of Borrower described on Exhibit A attached hereto and all improvements now or hereafter existing thereon and (b) guaranteed by an indirect owner of Borrower; and

WHEREAS, Lender is willing to make the loans on the terms and subject to the conditions set forth herein.

NOW, THEREFORE, for and in consideration of Lender making the loans to Borrower, the recitals set forth above, which are incorporated into the Agreement by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows:

AGREEMENT
SECTION 1.    DEFINITIONS AND INTERPRETATION
1.1.Terms Defined.    As used in this Agreement, the following terms have the following respective meanings:

“Account” means a right to payment of a monetary obligation, whether or not earned by performance, arising out of the sale of goods or production of services, in which Borrower now has or hereafter acquires any right.

“Account Debtor” means the Person who is obligated on an Account.

“Acquisition” means the acquisition by DOB Holdings of all of the issued and outstanding equity interests in Borrower from The Peninsula Fund V Limited Partnership, Unique Value International, LLC and Eric Brandenburger, all in accordance with the terms and conditions set forth in the Acquisition Agreement and Closing Documents.

“Acquisition Agreement and Closing Documents” means (a) that certain Stock Purchase Agreement dated as of December 21, 2018 by and among DDB Holdings, Borrower, the other parties thereto, and Peninsula Dakota Dry Bean Sellers Rep Account LLC, as seller representative, and (b) the agreements, instruments and other documents executed and delivered in connection with the consummation of the Acquisition.

“Advance” means any monies advanced or credit extended as a Loan to or for the benefit of Borrower by Lender.

“Affiliate” means, with respect to any specified Person, (a) any Person which, directly or indirectly, controls, is controlled by or is under common control with, the specified Person, and
(a)any director or officer (or, in the case of a Person which is not a corporation, any individual having analogous powers) of the specified Person or of a Person who is an Affiliate of the specified Person within the meaning of the preceding clause (a). For purposes of the preceding sentence, “control” of a Person shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, or direct or indirect ownership (beneficially or of record) of, or direct or indirect power to vote, five percent (5%) or more of the equity interests of such Person.

“Agreement” has the meaning set forth in the introductory paragraph of this Agreement.

“Authorized Representative” means any director or officer of Borrower or Guarantor, as applicable, authorized by specific resolutions of the Governing Body of Borrower or Guarantor, as applicable, to execute and deliver the Loan Documents and request Loans, as set forth in the incumbency certificate required by Section 3.1(i) hereof.

“Availability Reserves” means, as of any given date, such amounts as Lender may, in its commercially reasonable discretion, from time to time establish and adjust in good faith against the Borrowing Base: (a) to reflect events, conditions, contingencies or risks  which,  as determined in good faith by Lender, do or may affect either (i) the Collateral or its value, (ii) the assets, business or prospects of Borrower or (iii) the security interests and other rights of Lender in the Collateral (including the enforceability, perfection and priority thereof); (b) to  reflect Lender’s good faith belief that the Borrowing Base Report, any Collateral report or any other financial information furnished by or on behalf of Borrower to Lender is or may have been incomplete, inaccurate or misleading in any material respect; (c) to reflect Collateral located at any locations not owned or controlled by Borrower and / or commingled with property owned by any other Person; and (d) in respect of any state of facts which Lender determines in good faith constitutes an Event of Default or Unmatured Event of Default; provided, however, that any increase in the aggregate amount of such reserves as a result of any event under clause (a) above shall be effective only upon 30 days’ written notice to Borrower.

“Board” means the Board of Governors of the Federal Reserve System of the United States of America.

“Borrower” has the meaning set forth in the introductory paragraph of this Agreement.

“Borrowing Base” means an amount equal to the lesser of (a) the Revolving Credit Commitment minus the aggregate amount of the Commitment Reserves or (b) the Borrowing Base Factors minus the aggregate amount of the Availability Reserves and the Commitment Reserves.

“Borrowing Base Factors” means the sum of:

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(a)90% of the Value of Eligible Insured Accounts Receivable; plus

(b)80% of the Value of Eligible Accounts Receivable; plus

(c)70% of the Value of Eligible Grain Inventory; plus

(d)65% of the Value of Eligible Non-Grain Inventory; minus

(e)100% of accounts payable owed by Borrower to suppliers of Eligible Grain Inventory; minus

(f)100% of outstanding checks and other outstanding forms of payment by Borrower; minus

(g)100% of accrued and unpaid interest on Debt owed to Lender.

As of any date, the Borrowing Base Factors shall be determined on the basis of the information contained in the most recent Borrowing Base Report delivered to Lender pursuant to Section 5.1(d) hereof.

“Borrowing Base Report” has the meaning set forth in Section 3.1(I) hereof.

“Borrowing Notice” means a written, electronic, telex, telecopy or telephonic notice by Borrower to Lender specifying (a) the Facility from which any Advance is requested to be made, (b) the Effective Date of making such Advance and (c) the amount of such Advance.

“Business Day” means any day other than a Saturday, Sunday or any day on which banking institutions in Omaha, Nebraska are permitted or required by law, executive order or governmental decree to remain closed or a day on which Lender is closed for business.

“Capital Expenditures” means, with respect to any period, the expenditures of Borrower for such period in connection with the purchase of any fixed or capital assets required to be capitalized for financial reporting purposes in accordance with GAAP.

“Capitalized Lease” means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP.

“Change in Law” means (a) the adoption of any law, rule or regulation by any governmental authority after the First Closing Date, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any governmental  authority  after the First Closing Date or (c) any binding request, guideline or directive (whether or not having the force of law) of any governmental  authority  made or issued after the First Closing Date with which Lender is legally obligated to comply.

“Change of Control” has the meaning set forth in Section 6.6 hereof.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations and rulings issued thereunder.

“Collateral” means the Personal Property, Real Property and all other Property that now or hereafter secures the payment and performance of any of the Obligations pursuant to any of the Loan Documents or otherwise.
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“Collateral Access Agreement” means a collateral access agreement between any Person owning or controlling any location at which Collateral is located and Lender which, among other things, provides Lender with access to the Collateral and subordinates or waives any Lien in favor of such Person to the Lien in favor of Lender, and which is otherwise in form and substance acceptable to Lender in its sole discretion.  Lender may require separate forms of Collateral Access Agreements for such Persons who are Affiliates of Borrower and for such Persons who are not Affiliates of Borrower, and to the extent required by Lender, Borrower shall cause each such Person to execute and deliver the appropriate form of Collateral Access Agreement.

“Commitment Reserves” means, as of any given date, an amount equal to the credit exposure of Lender due to (a) outstanding letters of credit issued by Lender on behalf of Borrower or (b) any Swap Obligations of Borrower owed to Lender.

“Commodity Exchange Act” means the Commodity Exchange Act, as amended from  time to time, and any successor statute.

“Compliance Certificate” has the meaning set forth in Section 3.1(m) hereof.

“Credit Commitment” means the Revolving Credit Commitment, the Term Loan Commitment (Facility - A), the Term Loan Commitment (Facility - B) or the Term Loan Commitment (Facility - Equipment), as applicable.

“DDB Holdings” means DDB Holdings, Inc., a Delaware corporation.

“Debt” means, whether or not included as indebtedness or liabilities in accordance with GMP, the following: (a) the obligations of Borrower for borrowed money; (b) the obligations of Borrower evidenced by bonds, debentures, notes or other similar instruments; (c) the obligations of Borrower under conditional sale or other title retention agreements relating to property purchased to the extent of the value of such property; (d) the obligations of Borrower to pay the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business and due within three (3) months of the incurrence thereof); (e) the obligations of Borrower under Capitalized Leases; (f) the obligations of Borrower, contingent or otherwise, to purchase, redeem, retire or otherwise acquire securities or other property which arise out of or in connection with the sale of the same or substantially similar securities or property; (g) the obligations of Borrower to reimburse any other Person in respect of amounts paid under a letter of credit, bankers’ acceptance or similar instrument and, without duplication, the amount available to be drawn under a letter of credit, banker’s acceptance or similar instrument; (h) net Swap Obligations of Borrower; (i) the obligations of any other Person, to the extent such obligations are guaranteed by Borrower; (j) the obligations of any other Person, to the extent such obligations are secured by a Lien on Borrower’s Property (whether or not such obligations have been assumed by Borrower); and (k) the obligations of any other Person, to the extent Borrower is reasonably likely to be liable for such obligations.

“Default Rate” means the rate of interest otherwise applicable on any Loan plus five percent (5.00%).

“Disclosures” has the meaning set forth in Section 8.20(b) hereof.

“Distribution” means (a) dividends, distributions or other payments on, or on account of, the equity interests of Borrower, (b) the purchase, redemption, retirement or other acquisition of such equity interests or of warrants, rights or other options to purchase such equity interests, (c) loans made, 
4

directly or indirectly, to any shareholder of Borrower and (d) any other form of compensation paid, directly or indirectly, to any shareholder of Borrower which is not made in the ordinary course of business consistent with past practice.

“EBITDA” means, with respect to any date, for the most recently ended four (4) fiscal quarters of Borrower, the sum (without duplication) of Borrower’s:  (a) Net Income  for such period; plus (b) any amount which, in the determination of Net Income for such period, has been deducted for (i) Interest Expense, (ii) federal, state, local and foreign income tax expense, (iii) depreciation and amortization expense and (iv) any non-recurring non-cash charges, losses or expenses approved by Lender; minus (c) any amount which, in the determination of Net Income for such period, has been added for (i) any non-cash income or gains and (ii) any extraordinary, unusual or non-recurring income or gains; all as determined in accordance with GAAP.

“Effective Date” means any Business Day designated by Borrower in a Borrowing Notice as the date any Advance shall become effective.

“Eligible Accounts Receivable” means any Account in which Lender has a first priority perfected security interest and which complies with each of the following requirements:

(a)it arises out of a bona fide sale of goods or services sold and delivered by or on behalf of Borrower, or is in the process of being delivered by or on behalf of Borrower, to the Account Debtor on said Account;

(b)it has been identified to Lender by Borrower in a manner reasonably satisfactory to Lender;

(c)it is evidenced by an invoice delivered to the Account Debtor thereunder;

(d)it has not remained unpaid in whole or in part for a period of thirty (30) days or more from its original due date;

(e)it is not owed by an Account Debtor, regardless of whether otherwise eligible, if twenty percent (20%) or more of the amount of Accounts owed by such Account Debtor are ineligible under clause (d) above;

(f)it is not owed by an Account Debtor that is an employee or Affiliate of Borrower;

(g)it is not owed by an Account Debtor that is any unit of government,  whether foreign or domestic, unless such Account (i) is a United States government obligation and, upon the request of Lender, the pledge and assignment of such Account has been confirmed by duly acknowledged and accepted documents complying with the Assignment of Claims Act and delivered to Lender or (ii) when aggregated  with all other Accounts under this clause (g) would constitute less than ten percent (10%) of all Accounts;

(h)it is not owed by an Account Debtor located outside of the United States of America or denominated in a currency other than United States dollars;

(i)it is not owed by an Account Debtor subject to any action for bankruptcy, dissolution or liquidation or other relief under bankruptcy or insolvency laws;

(j)    it is not owed by an Account Debtor, regardless of whether otherwise eligible, to the extent that the amount of Accounts owed by such Account Debtor exceeds twenty percent (20%) of the amount of all Accounts (other than Accounts owed by the United 
5

States Department of Agriculture, 3D Corporate Solutions, LLC, US Commodities, LLC and Nestle Purina PetCare Company);

(k)the amount of such Account represented as owing is not disputed and it is net of any credit, allowance or rebate given by Borrower to such Account Debtor;

(I)it is not subject to any counterclaim or defense asserted by the Account Debtor thereunder, nor is it subject to any offset or contra account payable to the Account Debtor or to any repurchase obligations or return rights; and

(m)    it is net of all finance charges.

“Eligible Grain Inventory” means any Grain Inventory in which Lender has a first priority perfected security interest and which complies with each of the following requirements:

(a)it is owned by Borrower;

(b)it is readily usable or marketable by Borrower in the ordinary course of its business;

(c)it substantially conforms to the quality standards of Borrower;

(d)it has been identified to Lender by Borrower in a manner reasonably satisfactory to Lender;

(e)it is located at a location in the United States of America disclosed to and approved by Lender, and any Person (other than Borrower) owning or controlling such location shall have executed and delivered to Lender a Collateral Access Agreement; and

(f)it has not given rise to an Account.

“Eligible Insured Accounts Receivable” means any Account in which Lender has a first priority perfected security interest and which complies with each of the following requirements:

(a)it is insured by the Trade Credit Insurance;

(b)it arises out of a bona fide sale of goods or services sold and delivered by or on behalf of Borrower, or is in the process of being delivered by or on behalf of Borrower, to the Account Debtor on said Account;

(c)it has been identified to Lender by Borrower in a manner reasonably satisfactory to Lender;

(d)it is evidenced by an invoice delivered to the Account Debtor thereunder;

(e)it has not remained unpaid in whole or in part for a period of thirty (30) days or more from its original due date;
(f)it is not owed by an Account Debtor, regardless of whether otherwise eligible, if twenty percent (20%) or more of the amount of Accounts owed by such Account Debtor are ineligible under clause (e) above;

(g)it is not owed by an Account Debtor that is an employee or Affiliate of Borrower;

6

(h)it is not owed by an Account Debtor that is any unit of government,  whether foreign or domestic, unless such Account (i) is a United States government obligation and, upon the request of Lender, the pledge and assignment of such Account has been confirmed by duly acknowledged and accepted documents complying with the Assignment of Claims Act and delivered to Lender or (ii) when aggregated with all other Accounts under this clause (g) would constitute  less than ten percent (10%) of all Accounts;

(i)it is not owed by an Account Debtor located outside of the United States of America or denominated in a currency other than United States dollars;

(j)it is not owed by an Account Debtor subject to any action for bankruptcy, dissolution or liquidation or other relief under bankruptcy or insolvency laws;

(k)it is not owed by an Account Debtor, regardless of whether otherwise eligible, to the extent that the amount of Accounts owed by such Account Debtor exceeds twenty percent (20%) of the amount of all Accounts (other than Accounts owed by the United States Department of Agriculture, 3D Corporate Solutions, LLC, US Commodities, LLC and Nestle Purina PetCare Company);

(I)the amount of such Account represented as owing is not disputed and it is net of any credit, allowance or rebate given by Borrower to such Account Debtor;

(m)it is not subject to any counterclaim or defense asserted by the Account Debtor thereunder, nor is it subject to any offset or contra account payable to the Account Debtor or to any repurchase obligations or return rights; and

(n)it is net of all finance charges.

“Eligible Non-Grain Inventory” means any Non-Grain Inventory in which Lender has a first priority perfected security interest and which complies with each of the following requirements:

(a)it is owned by Borrower;

(b)it is readily usable or marketable by Borrower in the ordinary course of its business;

(c)it substantially conforms to the quality standards of Borrower;

(d)it has been identified to Lender by Borrower in a manner reasonably satisfactory to Lender;

(e)it is located at a location in the United States of America disclosed to and approved by Lender, and any Person (other than Borrower) owning or controlling such location shall have executed and delivered to Lender a Collateral Access Agreement; and

(f)it has not given rise to an Account.
“Environmental Indemnity Agreement” has the meaning set forth in Section 3.1(f) hereof.
“Environmental Laws” has the meaning set forth in Section 4.20 hereof.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations and rulings issued thereunder.

7

“ERISA Affiliate” means any Person that, together with Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, Section 414(m) of the Code.

“ERISA Event” means: (a) the occurrence of a “reportable event,” as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan unless the thirty (30) day notice period requirement with respect to such event has been waived or the requirements of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following thirty (30) days; (b) the failure with respect to any Plan to satisfy the minimum funding standard described in Section 412 of the Code or Section 302 of ERISA, whether or not waived; (c) the filing of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by Borrower or its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by Borrower or its ERISA Affiliates from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by Borrower or its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by Borrower or its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan from Borrower or its ERISA Affiliates of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

“Event of Default” has the meaning set forth in Section 7.1 hereof.

“Excess Cash Flow” means, with respect to any date, for the most recently ended fiscal year of Borrower, the sum (without duplication) of Borrower’s (a) EBITDA for such period; minus (b) taxes paid in cash during such period; minus (c) Unfinanced Capital Expenditures during such period; minus (d) Interest Expense paid in cash during such period; minus (e) Debt paid in cash during such period; minus (f) Distributions paid in cash during such period; minus (g) Royalty / Management Payments paid in cash during such period.

“Exchange Act” has the meaning set forth in Section 6.6 hereof.

“Excluded Swap Obligation” means, with respect to any Obligor, any Swap Obligation if, and to the extent that, all or a portion of the Guaranty Agreement or other obligation of such Obligor with respect to, or the grant by such Obligor of a security interest to secure, such Swap Obligation (or any Guaranty Agreement or other obligation with respect thereto) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Obliger’s  failure  for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the Guaranty Agreement or other obligation of such Obliger or the grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guaranty Agreement or other obligation or security interest is or becomes illegal.

“Expenses” has the meaning set forth in Section 8.5 hereof.

“Facilities” means the Revolving Credit Facility, the Term Loan Facility (Facility - A), the Term Loan Facility (Facility - B) and the Term Loan Facility (Facility - Equipment). Each of the foregoing is referred to herein as a “Facility”.

“Farm Products” has the meaning given to it in the Food Security Act.
8

“First Closing” has the meaning set forth in Section 3.5 hereof.

“First Closing Date” has the meaning set forth in Section 3.5 hereof.

“Fixed Charge Coverage Ratio” means, with respect to any date, the ratio of: (a) EBITDA as of such date minus Fixed Charge EBITDA Deductions as of such date; to (b) Fixed Charges as of such date.

“Fixed Charge EBITDA Deductions” means, with respect to any date, for the most recently ended four (4) fiscal quarters of Borrower, the sum (without duplication) of Borrower’s: (a) Unfinanced Capital Expenditures for such period; plus (b) Distributions for such period; plus (c) Royalty I Management Payments made during such period.

“Fixed Charges” means, with respect to any date, for the most recently ended four (4) fiscal quarters of Borrower, the sum (without duplication) of Borrower’s: (a) Interest Expense for such period; plus (b) current maturities of Debt for such period, but excluding any principal payments owing under the Revolving Credit Facility.

“Food Security Act” has the meaning set forth in the Security Agreement.

“Funded Debt” means, with respect to any date, the sum of Borrower’s: (a) outstanding Debt as of such date; minus (b) outstanding Debt expressly subordinated to the Obligations pursuant to a subordination agreement in form and substance reasonably satisfactory to Lender.

“Funded Debt to EBITDA Ratio” means, with respect to any date, the ratio of: (a) Funded Debt as of such date; to (b) EBITDA as of such date.

“GMP” means generally accepted accounting principles, consistently applied.

“Governing Body” means, with respect to any specified Person, (a) the board of directors when such Person is a corporation, (b) the members, managers or other governing body appointed by agreement or applicable law when such Person is a limited liability company or (c) the general partner or other governing body appointed by agreement or applicable law when such Person is a limited partnership.

“Grain Inventory” means (a) all unprocessed corn, soybeans, wheat, oats, peas, barley and other unprocessed grains and legumes held for sale or internal use by Borrower and (b) all inventories of Borrower of raw materials and work in process.

“Guarantor” means Benson Hill Biosystems, Inc., a Delaware corporation, and its successors and assigns.

“Guaranty Agreement” has the meaning set forth in Section 3.1(c) hereof.

“Hazardous Substance” means any asbestos, urea-formaldehyde, polychlorinated biphenyls, nuclear fuel or material, chemical waste, radioactive material, explosives, known carcinogens, petroleum products and by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials or substances listed or identified in, or regulated by, any Environmental Laws.
9

“Indemnified Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or withholdings imposed by any governmental authority (other than income and franchise taxes imposed on the net income of Lender).

“lndemnitee” has the meaning set forth in Section 8.3(b) hereof.

“Interest Expense” means, with respect to any period, the interest expense of Borrower for such period payable in connection with Debt (including all imputed interest on Capitalized Leases).

“Investments” means any equity interest, evidence of indebtedness or other security (including any option, warrant or other right to acquire any of the foregoing) of, any loan or advance to or any other investment or interest in, any other Person.

“IP Rights” has the meaning set forth in Section 4.19 hereof.

“Lender” has the meaning set forth in the introductory paragraph of this Agreement.

“Lien” means any mortgage, pledge, security interest, lien (statutory or otherwise), charge, encumbrance, hypothecation, assignment, deposit arrangement or other arrangement having the practical effect of the foregoing or any preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement and any Capitalized Lease having the same economic effect as any of the foregoing).

“Loan Documents” means this Agreement, the Notes, the Security Agreement, the UCC-1 Financing Statement, the Guaranty Agreement, the Mortgages, the UCC-1 Fixture Filings, the Environmental Indemnity Agreement, the Royalty / Management Subordination Agreement and any other agreements, instruments, documents and certificates executed and/or delivered in connection with this Agreement, as each may from time to time be amended, restated, modified or otherwise supplemented.

“Loans” means the Revolving Credit Loans, the Term Loan (Facility - A), the Term Loan (Facility - B) and the Term Loan (Facility - Equipment).   Each of the foregoing is referred to herein as a “Loan”.

“Material Adverse Effect” means a material adverse effect on (a) the business, assets, operations or condition, financial or otherwise, of Borrower or Guarantor, (b) the ability of Borrower or Guarantor to perform its obligations under any Loan Document or (c) the rights of or benefits available to Lender under any Loan Document.

“Minimum Notice Period” means a period commencing no later than 12:00 p.m., Omaha time, (a) on the Effective Date of any Advance under any Revolving Credit Facility and (b) three Business Days prior to the Effective Date of any Advance under any Term Loan Facility. 

“Mortgages” has the meaning set forth in Section 3.1(d) hereof.

“Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA.
“Net Income” means, with respect to any period, the net income (loss) of Borrower for such period, determined in accordance with GAAP.

10

“Net Worth” means, with respect to any date, the sum (without duplication) of: (a) the total assets of Borrower as of such date; minus (b) the total liabilities of Borrower as of such date; all as determined in accordance with GAAP.

“Non-Grain Inventory” means all finished goods and goods held for sale or lease or furnished or to be furnished under contracts of service in which Borrower now has or hereafter acquires any right, but excluding Grain Inventory.

“Non-Use Fee Change Date” means each January 1, April 1, July 1 and October 1, commencing on January 1, 2020.

“Non-Use Fee Rate” means, with respect to any date, an annual rate of interest set forth under Non-Use Fee Rate, according to the applicable level in the following grid, with such level to be determined on the basis of Reported EBITDA, and any changes to such level to take effect on the Non-Use Fee Change Date. The initial Non-Use Fee Rate shall be and remain at Level 1 until the Non-Use Fee Change Date. Notwithstanding anything herein to the contrary, if any Compliance Certificate required to report Reported EBITDA is not delivered when due, the level of the Non-Use Fee Rate shall be changed to Level 1 at the next Non-Use Fee Change Date and shall remain at Level 1 until the next succeeding Non-Use Fee Change Date.

																		
	

	

	Reported EBITDA
	

	Non-Use Fee Rate
	

	

	

	

	

	

	

	Level 1
	

	<$7,000,000
	

	0.30%
	

	

	

	

	

	

	

	Level 2
	

	≥$7,000,000 <$14,000,000
	

	0.25%
	

	

	

	

	

	

	

	Level 3
	

	≥$14,000,000
	

	0.20%
	

“Notes” means the Revolving Credit Note, the Term Loan Note (Facility - A), the Term Loan Note (Facility - B) and the Term Loan Note (Facility - Equipment). Each of the foregoing is referred to herein as a “Note”.

“Obligations” means all now existing or hereafter arising loans, advances, liabilities, debts, obligations, covenants and duties of payment or performance of every kind, matured or unmatured, direct or contingent, owing, arising, due or to become due, or payable to Lender, by or from Borrower, in each case, to the extent arising out of this Agreement, any other Loan Document, any other agreement or otherwise including, without  limitation, all obligations  to repay principal of and interest on Loans, all obligations to pay principal, interest, fees, costs, charges, expenses and any other sums chargeable to Borrower under the Loan Documents, any other agreement or otherwise, whether or not evidenced by any note or other instrument, and Swap Obligations of Borrower owed to Lender, but excluding, as to any Obligor, its Excluded Swap Obligations.

“Obliqor” means each of Borrower and Guarantor.

“Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any Loan Document.

“Participation” means one or more grants by Lender to a third party of a participating interest in notes evidencing obligations to repay secured or unsecured loans owned by Lender.

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“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions.

“Permitted Debt” means: (a) Obligations  owed to Lender; (b) Debt outstanding on the date of this Agreement and set forth on Schedule 1.1(a) hereto; (c) purchase money obligations and obligations under Capitalized Leases owed by Borrower not in excess of $250,000 in the aggregate at any one time outstanding; (d) Debt expressly subordinated to the Obligations pursuant to a subordination agreement in form and substance satisfactory to Lender; provided, that at least fifty percent (50%) of the proceeds of such subordinated Debt are used to immediately repay any Debt owing under the Term Loan Facilities; (e) obligations (contingent or otherwise) under any hedge arrangements permitted under Section 6.12 hereof; (f) Debt consisting of the financing of insurance premiums in the ordinary course of business; (g) Debt in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations (including, in each case, letters of credit issued to provide such bonds, guaranties and similar obligations), in each case provided in the ordinary course of business; (h) Debt arising from overdraft facilities and/or the honoring  by a bank  or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business not in excess of $100,000 in the aggregate at any one time outstanding;  (i) other unsecured Debt not in excess of $100,000 in the aggregate at any one time outstanding; and U) any other Debt which has been approved in writing by Lender in Lender’s sole discretion.

“Permitted Investments” means: (a) Investments outstanding on the date of this Agreement and set forth on Schedule 1.1(b) hereto; (b) loans or advances to employees or Affiliates of Borrower in the ordinary course of business not in excess of $250,000 in the aggregate at any one time outstanding; (c) extensions of trade credit or similar advances in the ordinary course of business to any Person who is not an employee or Affiliate of Borrower; (d) cash or cash equivalents; (e) Investments consisting of stock, obligations, securities or other property received in settlement of accounts receivable (created in the ordinary course of business) from bankrupt obligors; (f) to the extent constituting an Investment, any hedge arrangements permitted under Section 6.12 hereof; (g) Investments constituting deposits made in connection with the purchase of goods or services in the ordinary course of business; (h) Investments in the ordinary course of business and consistent with past practice, consisting of (i) endorsements for collection or deposit, (ii) customary trade arrangements with customers, (iii) advances of payroll payments to employees or other advances of salaries or compensation (including advances against commissions) to employees and sales  representatives not  to exceed in the aggregate at any time $100,000 and (iv) Investments maintained  in connection with any deferred compensation plan; (i) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, other Investments not exceeding in the aggregate the sum of $100,000; and (ii) any other Investments which have been approved in writing by Lender in Lender’s sole discretion.

“Permitted Liens” means: (a) Liens in favor of Lender; (b) Liens outstanding  on the date of this Agreement  and set forth on Schedule 1.1(c) hereto; (c) Liens on the Real Property that are set forth as exceptions in any title insurance policy  issued to  Lender and approved by Lender in its sole discretion; (d) covenants, restrictions, rights, easements, irregularities in title and other similar Liens which do not materially interfere with the business or operations of Borrower as presently conducted or materially impair the value of Borrower’s Property to which they attach, (e) Liens for taxes, fees, assessments and governmental charges not delinquent  or to the extent that payments therefor shall not at the time be required to be made in accordance with the provisions of Section 5.8 hereof; (f) Liens on Borrower’s Property that secure the purchase money obligations and obligations under Capitalized Leases permitted by Section 6.1 hereof; provided, that any such Lien only covers the Property then being acquired and the Debt secured by such Lien does not exceed the value of the Property so acquired; (g) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and suppliers and other Liens imposed by law or pursuant to customary reservations or retentions of title arising in the ordinary course of business, provided that such Liens secure only amounts not yet due and payable; (h) segregated cash pledges or deposits in the ordinary course of business in connection 
12

with workers’ compensation, unemployment insurance and other social security legislation; (i) segregated cash deposits to secure the performance of bids, trade contracts, licenses and leases, statutory obligations, surety bonds (other than bonds related to  judgments or litigation), performance bonds and other obligations of a like nature (other than Debt) incurred in the ordinary course of business; (j) non-exclusive licenses granted to others not interfering in any material respect with the business of Borrower; (k) any interest of title of a lessor under, and Liens arising from precautionary UCC financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) solely evidencing such lessor’s interest under, leases permitted by this Agreement; (I) normal and customary rights of setoff upon deposits of cash in favor of banks or other depository institutions holding such deposits; (m) Liens of a collection bank arising under Section 4-210 of the UCC  on items in the course of collection;  (n) Liens solely on any cash earnest money deposits in connection with any letter of intent or purchase agreement in respect of any Investment permitted hereunder; (o) all bonds,  deposits  and security instruments or other Liens required or imposed by any governmental authority or third party in the ordinary course of business; (p) Liens consisting of judgment, appeal bonds, judicial attachment liens or other similar Liens arising in connection  with court proceedings,  provided that the enforcement of such Liens is effectively stayed and all such Liens secure judgments the existence of which do not constitute an Event of Default; and (q) any other Liens  which have been approved in writing by Lender in Lender’s sole discretion.

“Person” means any individual, corporation, partnership, limited partnership, limited liability company, association, trust, unincorporated organization, joint venture, court or government or political subdivision or agency thereof, or other entity.

“Personal Property” means the personal property owned by Borrower and described in  the Security Agreement, now existing or hereafter acquired.

“Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which Borrower or its ERISA Affiliates is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

“Post-Closing Period” has the meaning set forth in Section 3.7 hereof.

“Property” means any interest of Borrower in any kind of property or asset, whether real or personal, tangible or intangible, and includes the Collateral.

“Qualified ECP” means each Obligor that has total assets exceeding $10,000,000 or that constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity Exchange Act.

“Real Property” means the real property owned by Borrower and described on Exhibit A attached hereto and in the Mortgages and all improvements now or hereafter existing thereon.

“Reported EBITDA” means (a) as of each January 1, the EBITDA as calculated and reported on the Compliance Certificate for the most recently completed calendar month of September, (b) as of each April 1, the EBITDA as calculated and reported on the Compliance Certificate for the most recently completed calendar month of December, (c) as of each July 1, the EBITDA as calculated and reported on the Compliance Certificate for the most recently completed calendar month of March and (d) as of each October 1, the EBITDA as calculated and reported on the Compliance Certificate for the most recently completed calendar month of June.
13

“Revolving Credit Commitment” means an amount equal to $6,000,000.

“Revolving Credit Facility” has the meaning set forth in Section 2.1(a) hereof.

“Revolving Credit Loans” has the meaning set forth in Section 2.1(b) hereof.

“Revolving Credit Maturity Date” has the meaning set forth in Section 2.1(d) hereof.

“Revolving Credit Note” has the meaning set forth in Section 2.1(c) hereof.

“Royalty / Management Agreement” means that certain lntercompany Services Agreement dated as of April 9, 2019, and any other similar type of agreement providing for royalty payments or management fees to Guarantor or its Affiliates.

“Royalty / Management Payments” means the “Subordinated Obligations” in the Royalty / Management Subordination Agreement, and any other similar type of payments or fees to Guarantor or its Affiliates.

“Royalty / Management Subordination Agreement” has the meaning set forth in Section 3.1(e) hereof.

“Second Closing” has the meaning set forth in Section 3.5 hereof.

“Second Closing Date” has the meaning set forth in Section 3.5 hereof.

“Security Agreement” has the meaning set forth in Section 3.1(b) hereof.

“Subsidiary” shall mean any corporation, limited liability company, limited partnership, partnership, joint venture, trust or other legal entity of which Borrower owns, directly or indirectly, fifty percent (50%) or more of the outstanding voting stock or equity interests, or of which Borrower has effective control, by contract or otherwise.

“Swap Obligation” means, with respect to any Obligor, any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act.

“Sweep Account” means any deposit account maintained with Lender and designated as such by Lender.

“Sweep Account Agreement” has the meaning set forth in Section 2.4(h) hereof.

“Term Loan (Facility - A)” has the meaning set forth in Section 2.1(b) hereof.

“Term Loan (Facility - B)” has the meaning set forth in Section 2.1(b) hereof.

“Term Loan (Facility - Equipment)” has the meaning set forth in Section 2.1(b) hereof.

14

“Term Loan Commitment (Facility - A)” means an amount equal to $11,375,000.

“Term Loan Commitment (Facility - B)” means an amount equal to $2,625,000.

“Term Loan Commitment (Facility - Equipment)” means an amount equal to $3,500,000.

“Term Loan Facilities” means the Term Loan Facility (Facility - A), the Term Loan Facility (Facility - B) and the Term Loan Facility (Facility - Equipment).  Each of the foregoing is referred to herein as a “Term Loan Facility”.

“Term Loan Facility (Facility - A)” has the meaning set forth in Section 2.1(a) hereof.

“Term Loan Facility (Facility - B)” has the meaning set forth in Section 2.1(a) hereof.

“Term Loan Facility (Facility - Equipment)” has the meaning set forth in Section 2.1(a) hereof.

“Term Loan Maturity Date (Facility - A)” has the meaning set forth in Section 2.1(d) hereof.

“Term Loan Maturity Date (Facility - B)” has the meaning set forth in Section 2.1(d) hereof.

“Term Loan Maturity Date (Facility - Equipment)” has the meaning set forth in Section 2.1(d) hereof.

“Term Loan Note (Facility - A)” has the meaning set forth in Section 2.1(c) hereof.

“Term Loan Note (Facility - B)” has the meaning set forth in Section 2.1(c) hereof.

“Term Loan Note (Facility - Equipment)” has the meaning set forth in Section 2.1(c) hereof.

“Trade Credit Insurance” means trade credit insurance in such amounts, with such deductibles and with such insurers as are customarily used by companies operating in the same industry as Borrower or which Borrower has historically used (and which is acceptable to Lender).  The Trade Credit Insurance shall, at a minimum, insure ninety percent (90%) of the face amount of each insured Account.

“Transfer” means one or more sales, transfers or assignments by Lender to a third party of notes evidencing obligations to repay secured or unsecured loans owned by Lender.

“UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction. 
“Unfinanced Capital Expenditures” means Capital Expenditures which are (a) not financed with Debt (except as contemplated by clause (b) below), the proceeds of sales of assets permitted under Section 6.5(a) hereof or the proceeds of any insurance policy or (b) financed with Revolving Credit Loans.

“Unmatured Event of Default” means an event which with the passage of time, giving of notice or both, would become an Event of Default.

“Value” means, as of any given date, an amount equal to:

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(a)for Eligible Accounts Receivable and Eligible Insured Accounts Receivable, the amount owing to Borrower; and

(b)for Eligible Grain Inventory and Eligible Non-Grain Inventory, the lesser of (i) cost determined on a FIFO inventory basis of accounting (all in accordance with GAAP) and (ii) market value for inventory of similar kind, quality, quantity and condition.

“Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.

“Working Capital” means, with respect to any date, the sum (without duplication) of: (a) the current assets of Borrower as of such date; minus (b) the current liabilities of Borrower as of such date (including current maturities of Debt); all as determined in accordance with GAAP.

1.2.Matters of Construction. The terms “herein,” “hereof’ and “hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any pronoun used shall be deemed to cover all genders. Wherever appropriate in the context, terms used herein in the singular also include the plural and vice versa. All references to statutes and related regulations shall include any amendments of same and any successor statutes and regulations. Unless otherwise provided, all references to any instruments or agreements to which Lender is a party including, without limitation, references to any of the Loan Documents, shall include any and all modifications or amendments thereto and any and all extensions or renewals thereof.

1.3.Accounting Principles. Where the character or amount of any asset or liability or item of income or expense is required to be determined or any consolidation or other accounting computation is required to be made for the purposes of this Agreement, this shall be done in accordance with GMP, to the extent applicable, except as otherwise expressly provided in this Agreement. Notwithstanding any provision contained herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made, without giving effect to any change in accounting for leases pursuant to GMP resulting from the implementation of Financial Accounting Standards Board ASU No. 2016-02, Leases (Topic 842), to the extent such adoption would require treating any lease (or similar arrangement conveying the right to use) as a capital lease where such lease (or similar arrangement) would not have been required to be so treated under GMP as in effect on December 31, 2017.

SECTION 2.    THE CREDIT FACILITIES

2.1.Description.

(a)Subject to the other terms and conditions of this Agreement, Lender hereby agrees to make available to Borrower total credit in the amount of up to $23,500,000 consisting of (i) a $6,000,000 revolving credit facility (the “Revolving Credit Facility”), (ii) a $11,375,000 term loan facility (the “Term Loan Facility (Facility - A)”), (iii) a $2,625,000 term loan facility (the “Term Loan Facility (Facility - B)”) and (iv) a $3,500,000 term loan facility (the “Term Loan Facility (Facility - Equipment)”).

(b)The Revolving Credit Facility permits Advances to be extended by Lender to or for the benefit of Borrower from time to time hereunder on or after the First Closing Date in the form of revolving credit loans (the “Revolving Credit Loans”). The aggregate outstanding principal amount of all Revolving Credit Loans, at any time, shall not exceed the Borrowing Base. Subject to such limitation, the aggregate outstanding principal amount of all Revolving Credit Loans may fluctuate from time to time, through repayments and reborrowings. The Term Loan Facility (Facility - A) permits a single Advance to be extended by Lender to or for the benefit of Borrower on or after the First Closing Date in the form of a term loan (the “Term Loan (Facility - A)”). The aggregate outstanding principal amount of 
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the Term Loan (Facility - A), at any time, shall not exceed the Term Loan Commitment (Facility - A). Any Advance under the Term Loan Facility (Facility - A) which is repaid is not available for reborrowing. The Term Loan Facility (Facility - B) permits a single Advance to be extended by Lender to or for the benefit of Borrower on or after the First Closing Date in the form of a term loan (the “Term Loan (Facility - A”). The aggregate outstanding principal amount of the Term Loan (Facility - B), at any time, shall not exceed the Term Loan Commitment (Facility - B). Any Advance under the Term Loan Facility (Facility - B) which is repaid is not available for reborrowing. The Term Loan Facility (Facility - Equipment) permits up to three (3) Advances to be extended by Lender to or for the benefit of Borrower on or after the Second Closing Date, but no later than September 30, 2019, in the form of a term loan (the “Term Loan (Facility - Equipment)”). The aggregate outstanding principal amount of the Term Loan (Facility - Equipment), at any time, shall not exceed the Term Loan Commitment (Facility - Equipment). Any Advance under the Term Loan Facility (Facility - Equipment) which is repaid is not available for reborrowing. The Obligations of Borrower under the Facilities, this Agreement and the other Loan Documents shall at all times be absolute and unconditional.

(c)At the First Closing or Second Closing, as applicable, Borrower shall duly execute and deliver to Lender (i) a promissory note made payable to the order of Lender in the principal amount of the Revolving Credit Commitment (as the same may be amended, restated, modified, supplemented, replaced or refinanced from time to time, the “Revolving Credit Note”), a promissory note made payable to the order of Lender in the principal amount of the Term Loan Commitment (Facility - A) (as the same may be amended, restated, modified, supplemented, replaced or refinanced from time to time, the “Term Loan Note (Facility - A)”), (iii) a promissory note made payable to the order of Lender in the principal amount of the Term Loan Commitment (Facility - B) (as the same may be amended, restated, modified, supplemented, replaced or refinanced from time to time, the “Term Loan Note (Facility - B)”) and (iv) a promissory note made payable to the order of Lender in the principal amount of the Term Loan Commitment (Facility - Equipment) (as the same may be amended, restated, modified, supplemented, replaced or refinanced from time to time, the “Term Loan Note (Facility - Equipment)”). Each Note shall evidence Borrower’s absolute and unconditional obligation to repay Lender for any Loan made by Lender under the Facility applicable thereto, with interest as herein and therein provided. Each and every Advance under any Facility shall be evidenced by the Note applicable thereto. The Notes shall be substantially in the form of Exhibit B, Exhibit C, Exhibit D and Exhibit E attached hereto. The Notes are incorporated herein by reference and made a part hereof.

(d)The term of the Revolving Credit Facility shall expire on April 1, 2020. All Revolving Credit Loans under the Revolving Credit Facility shall be repaid on or before the earliest of (i) April 1, 2020, (ii) termination of the Revolving Credit Facility and (iii) termination of this Agreement (the earliest of such dates, the “Revolving Credit Maturity Date”). After the Revolving Credit Maturity Date, no further Advances under the Revolving Credit Facility shall be available from Lender. The term of the Term Loan Facility (Facility - A) shall expire on April 1, 2024. The Term Loan (Facility - A) under the Term Loan Facility (Facility - A) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - A) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - A)”).  After the Term Loan Maturity Date (Facility - A), no Advance under the Term Loan Facility (Facility - A) shall be available from Lender. The term of the Term Loan Facility (Facility - B) shall expire on April 1, 2024. The Term Loan (Facility - B) under the Term Loan Facility (Facility - B) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - B) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - B)”). After the Term Loan Maturity Date (Facility - B), no Advance under the Term Loan Facility (Facility - B) shall be available from Lender. The term of the Term Loan Facility (Facility - Equipment) shall expire on the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date. The Term Loan (Facility - Equipment) under the Term Loan Facility (Facility - Equipment) shall be repaid on or before the earliest of (i) the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date, (ii) termination of the Term Loan Facility (Facility - Equipment) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - Equipment)”). After the Term Loan Maturity Date (Facility - Equipment), no Advance under the Term Loan Facility (Facility - Equipment) shall be available from Lender.
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2.2.Funding Procedures.

(a)Borrower shall deliver to Lender a Borrowing Notice for an Advance under any Facility; provided, that Borrowing Notices shall not be required in connection with Advances under the Revolving Credit Facility when the Revolving Credit Facility is linked to the Sweep Account (as contemplated by Section 2.4(h) hereof).

(b)Subject to the terms and conditions of this Agreement and so long as no Event of Default or Unmatured Event of Default has occurred and is continuing hereunder, Lender shall make Advances to Borrower under the Revolving Credit Facility and Term Loan Facility (Facility - Equipment) on the Effective Dates specified in Borrowing Notices received by Lender and a single Advance to Borrower under the Term Loan Facility (Facility - A) and Term Loan Facility (Facility - B) on the Effective Date specified in a Borrowing Notice received by Lender, in each case, if the Borrowing  Notice is delivered to Lender not less than the Minimum  Notice Period prior to any Effective Date, and any other conditions set forth in this Agreement are satisfied (or the next applicable Business Day if the Borrowing Notice is delivered to Lender less than the Minimum Notice Period prior to the Effective Date).

(c)Any such Advance may be deposited by Lender into the Sweep Account to the extent such account has been established in accordance with Section 2.4(h) hereof.

2.3.Interest.

(a)Each Loan shall bear interest on the outstanding principal amount thereof from the date made until such Loan is paid in full. Borrower agrees to pay interest on the unpaid principal amount of each Loan from time to time outstanding hereunder at the rate of interest per annum set forth in the Note applicable thereto.

(b)If any Event of Default shall occur and be continuing, the rate of interest applicable to Loans then outstanding shall be the Default Rate at the option of Lender. The Default Rate shall apply from the date declared in writing by Lender until the date such Event of Default is waived or cured, as determined by Lender in its sole discretion, and interest accruing at the Default Rate shall be payable on demand.

(c)Interest shall be computed for the actual number of days elapsed on the basis of a year consisting of three hundred sixty (360) days, including the date a Loan is made and excluding the date such Loan or any portion thereof is paid or prepaid. This calculation method results in a higher effective rate than the numeric interest rates stated in the Note applicable thereto.

(d)All contractual rates of interest chargeable on any outstanding Loan shall continue to accrue and be paid even after default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any similar event or occurrence.

(e)In no contingency or event whatsoever shall the aggregate of all amounts deemed interest hereunder and charged or collected pursuant to the terms of this Agreement exceed the highest rate of interest permissible under applicable law. In the event that any court of competent jurisdiction determines Lender has charged or received interest hereunder in excess of the highest applicable rate of interest, Lender may, in its sole discretion, apply and set off such excess interest received by Lender against other Obligations due or to become due and such rate of interest shall automatically be reduced to the maximum rate of interest permitted by such law.

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2.4.Payments.

(a)All accrued interest on the Revolving Credit Loans shall be due and payable in arrears (i) on the first (1st) day of each month, commencing on May 1, 2019, until the Revolving Credit Maturity Date, (ii) on the Revolving Credit Maturity Date and (iii) upon payment in full. All accrued interest on the Term Loan (Facility - A) shall be due and payable in arrears (i) on each January 1, April 1, July 1 and October 1, commencing on July 1, 2019, until the Term Loan Maturity Date (Facility - A), (ii) on the Term Loan Maturity Date (Facility - A) and (iii) upon payment in full. All accrued interest on the Term Loan (Facility - B) shall be due and payable in arrears (i) on each January 1, April 1, July 1 and October 1, commencing on July 1, 2019, until the Term Loan Maturity Date (Facility - B), (ii) on the Term Loan Maturity Date (Facility - B) and (iii) upon payment in full. All accrued interest on the Term Loan (Facility - Equipment) shall be due and payable in arrears (i) on each January 1, April 1, July 1 and October 1, commencing on the first of such dates occurring after the Second Closing, until the Term Loan Maturity Date (Facility - Equipment), (ii) on the Term Loan Maturity Date (Facility - Equipment) and (iii) upon payment in full. After the applicable Maturity Date, interest shall be due and payable on demand.

(b)If, at any time, the aggregate principal amount of all Revolving Credit Loans outstanding under the Revolving Credit Facility exceeds the Borrowing Base then in effect, Borrower shall immediately make such principal prepayments of the Revolving Credit Loans under the Revolving Credit Facility as is necessary to eliminate such excess.

(c)The entire outstanding principal balance of the Revolving Credit Loans, together with all unpaid accrued interest thereon, shall be due and payable on the Revolving Credit Maturity Date. Borrower shall repay the Term Loan (Facility - A) to Lender by making level installment payments of principal on each January 1, April 1, July 1 and October 1, commencing on July 1, 2019, in the amount of $284,375.  The entire outstanding principal balance of the Term Loan (Facility - A), together with all unpaid accrued interest thereon, shall be due and payable on the Term Loan Maturity Date (Facility - A). Borrower shall repay the Term Loan (Facility - B) to Lender by making level installment payments of principal on each January 1, April 1, July 1 and October 1, commencing on July 1, 2019, in the amount of $131,250.  The entire outstanding principal balance of the Term Loan (Facility - B), together with all unpaid accrued interest thereon, shall be due and payable on the Term Loan Maturity Date (Facility - B). Borrower shall repay the Term Loan (Facility - Equipment) to Lender by making level installment payments of principal on each January 1, April 1, July 1 and October 1, commencing on the first of such dates occurring after the Second Closing, in the amount of $175,000. The entire outstanding principal balance of the Term Loan (Facility - Equipment), together with all unpaid accrued interest thereon, shall be due and payable on the Term Loan Maturity Date (Facility - Equipment).

(d)In addition to the quarterly payments of principal required by Section 2.4(c) hereof, Borrower shall repay the Term Loan (Facility - A) and Term Loan (Facility - B) by making consecutive annual payments of principal equal to fifty percent (50%) of Excess Cash Flow within one hundred twenty (120) days after the end of each fiscal year of Borrower, commencing with the fiscal year of Borrower ending on December 31, 2019. Such payments shall be not be required to be made after the later of (a) the date the payment is made with respect to the fiscal year of Borrower ending on December 31, 2022 and (b) the date the Term Loan (Facility - B) is paid in full.

(e)Borrower may prepay, without premium or penalty, all or any part of the principal of the Loans at any time. Borrower further agrees that all Loan fees and other prepaid finance charges are earned fully as of the day of the Loan and will not be subject to refund upon early payment (whether voluntary or as a result of default), except as otherwise required by law.

(f)All payments and prepayments shall be applied first to any unpaid fees and expenses, then to unpaid interest and thereafter to the principal of the Loans and to other amounts due Lender. In the absence of written direction from Borrower or after the occurrence of an Event of Default, payments and prepayments applied to principal shall be applied to the Loans as determined by Lender in its sole discretion; provided, however, that payments made under Section 2.4(d) hereof shall be applied first to 
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the remaining principal installments due on the Term Loan (Facility - B) on a pro rata basis and thereafter to the remaining principal installments due on the Term Loan (Facility - A) on a pro rata basis. Except as otherwise provided herein, all payments of principal, interest, fees or other amounts payable by Borrower hereunder shall be remitted to Lender in immediately available funds and in lawful money of the United States of America not later than 2:30 p.m., Omaha time, on the day due, at Lender’s principal office in Omaha, Nebraska or at such other address as may be designated by Lender in writing. Whenever any payment is stated as due on a day which is not a Business Day, the maturity of such payment shall be extended to the next succeeding Business Day and interest shall continue to accrue during such extension.

(g)Borrower hereby authorizes Lender to automatically deduct the amount of any payment owed under this Agreement, the Notes or any other Loan Document from the Sweep Account to the extent established in accordance with clause (h) below. If the funds in the Sweep Account are insufficient to cover any payment, Lender shall not be obligated to advance funds to cover the payment.

(h)At the election of Borrower, the Revolving Credit Facility may be linked to the Sweep Account pursuant to any agreement between Borrower and Lender establishing a sweep account arrangement (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Sweep Account Agreement”). All references in the Sweep Account Agreement to a line of credit are amended to refer to the Revolving Credit Facility. For as long as the Revolving Credit Facility is linked to the Sweep Account, Lender is authorized and directed to (i) disburse Advances under the Revolving Credit Facility for deposit into the Sweep Account on each Business Day as needed to cover all checks and other charges against the Sweep Account and (ii) disburse all collected funds in the Sweep Account on each Business Day to Lender to be applied as payments on the Revolving Credit Facility. Borrowing Notices shall not be required in connection with the Advances under the Revolving Credit Facility when the Revolving Credit Facility is linked to the Sweep Account.

2.5.Use of Proceeds. The proceeds of the Revolving Credit Loans shall be used by Borrower to reimburse DOB Holdings for a portion of the cost of the Acquisition, used to refinance certain existing indebtedness of Borrower and used to finance working capital needs and other general business purposes of Borrower. The proceeds of the Term Loan (Facility - A) and the Term Loan (Facility - B) shall be used by Borrower to reimburse DOB Holdings for a portion of the cost of the Acquisition.   The proceeds of the Term Loan (Facility - Equipment) shall be used to finance the purchase of certain grinding equipment at Borrower’s facility in Lakeview, North Dakota.

2.6.Fees.

(a)Borrower shall pay to Lender a non-refundable origination fee with respect to the Term Loan (Facility - A) and the Term Loan (Facility - B) equal to $35,000. The origination fee shall be due and payable on the First Closing Date.

(b)Borrower shall pay to Lender a non-use fee on the Revolving Credit Facility, which shall accrue at the Non-Use Fee Rate on the daily unused amount of the Revolving Credit Commitment during the period from the First Closing Date until the Revolving Credit Maturity Date.  All accrued non-use fees shall be due and payable in arrears (i) on each January 1, April 1, July 1 and October 1, commencing on July 1, 2019, until the Revolving Credit Maturity Date and (ii) on the Revolving Credit Maturity Date. All non-use fees shall be computed for the actual number of days elapsed on the basis of a year consisting of three hundred sixty (360) days, including the First Closing Date and excluding the Revolving Credit Maturity Date.

(c)If any payment hereunder is ten (10) days or more late, Borrower shall owe Lender a fee equal to the greater of (i) five percent (5%) of such payment or (ii) $25.00.

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2.7.Increased Costs.

(a)If any Change in Law shall: (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, Lender; or (ii) impose on Lender or the London interbank market any other condition affecting this Agreement; and the result of any of the foregoing shall be to increase the cost to Lender of making or maintaining any Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by Lender (whether of principal, interest or otherwise), then Borrower shall pay to Lender such additional amount or amounts as will compensate Lender for such additional costs incurred or reduction suffered.

(b)If Lender determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on Lender’s capital or on the capital of Lender’s holding company, if any, as a consequence of this Agreement to a level below that which Lender or Lender’s holding company, if any, could have achieved but for such Change in Law (taking into consideration Lender’s policies and the policies of Lender’s holding company, if any, with respect to capital adequacy), then from time to time Borrower shall pay to Lender such additional amount or amounts as will compensate Lender or Lender’s holding company, if any, for any such reduction suffered.

(c)A certificate of Lender setting forth the amount or amounts necessary to compensate Lender or its holding company, if any, as specified in paragraphs (a) or (b) above shall be delivered to Borrower, demonstrating in reasonable detail the calculation of the amounts, and shall be conclusive absent manifest error. Borrower shall pay Lender the amount shown as due on any such certificate within thirty (30) days after receipt thereof.

(d)Failure or delay on the part of Lender to demand compensation pursuant to this Section 2.7 shall not constitute a waiver of Lender’s right to demand such compensation; provided that Borrower shall not be required to compensate Lender pursuant to this Section 2.7 for any increased costs or reductions incurred more than one hundred eighty (180) days prior to the date that Lender notifies Borrower of the Change in Law giving rise to such increased costs or reductions and of Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or reductions is retroactive and if Lender notifies Borrower of such Change in Law within one hundred eighty (180) days after the adoption, enactment or similar act with respect to such Change in Law, then the one hundred eighty (180) day period referred to above shall be extended to include the period from the effective date of such Change in Law to the date of such notice. Notwithstanding any contrary provision hereof, Lender shall not be entitled to any charges or compensation under this Section 2.7 if Lender is not generally imposing such charges or requesting such compensation from other similarly situated borrowers under similar circumstances.

2.8.Taxes.

(a)Any and all payments by or on account of any obligation of Borrower under this Agreement or any other Loan Document shall be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes; provided that if Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions or withholdings (including deductions applicable to additional sums payable under this Section 2.8) Lender receives an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such deductions or withholdings and (iii) Borrower shall pay the full amount deducted or withheld to the relevant governmental authority in accordance with applicable law.

(b)In addition, Borrower shall pay any Other Taxes to the relevant governmental authority in accordance with applicable law.

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(c)Borrower shall indemnify Lender, within thirty (30) days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by Lender on or with respect to any payment by or on account of any obligation of Borrower under this Agreement or any other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.8) and any penalties, interest and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant governmental authority. A certificate as to the amount of such payment or liability delivered to Borrower by Lender demonstrating in reasonable detail the calculation of the amounts, shall be conclusive absent manifest error. However, Lender shall not be entitled to receive any payment with respect to Indemnified Taxes or Other Taxes that are incurred or accrued more than one hundred eighty (180) days prior to the date Lender gives notice and demand thereof to Borrower.

(d)As soon as reasonably practicable after any payment of Indemnified Taxes or Other Taxes by Borrower to a governmental authority, Borrower shall deliver to Lender the original or a certified copy of a receipt issued by such governmental authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to Lender.

(e)Lender, if requested by Borrower, shall deliver such properly completed and executed documentation prescribed by applicable law or reasonably requested by Borrower as will enable Borrower to determine whether or not Lender is subject to backup withholding or information reporting requirements.

(f)If Lender determines, in its reasonable discretion, that it has received a refund of any taxes or Other Taxes as to which it has been indemnified by Borrower or with respect to which Borrower has paid additional amounts pursuant to this Section 2.8, it shall pay over such refund to Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by Borrower under this Section 2.8 with respect to the taxes or Other Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of Lender and without interest (other than any interest paid by the relevant governmental authority with respect to such refund); provided, that Borrower, upon the request of Lender, agree to repay the amount paid over to Borrower (plus any penalties, interest or other charges imposed by the relevant governmental authority) to Lender in the event Lender is required to repay such refund to such governmental authority. This Section 2.8 shall not be construed to require Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to Borrower or any other Person.

SECTION 3.    CLOSING AND CONDITIONS PRECEDENT TO ADVANCES

Closing under this Agreement and the making of each Advance are subject to the satisfaction or waiver of the following conditions precedent (all documents to be in form and substance satisfactory to Lender):

3.1.Conditions Precedent to First Closing. Prior to the First Closing, Borrower shall have delivered to Lender the following:

(a)A duly and fully executed Agreement, Revolving Credit Note, Term Loan Note (Facility - A) and Term Loan Note (Facility - B).

(b)A duly and fully executed security agreement by Borrower (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Security Agreement”) and UCC-1 Financing Statement.  The Security Agreement and UCC-1 Financing Statement shall secure the Obligations and create a first priority perfected security interest in the Personal Property, subject only to the Permitted Liens.

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(c)A duly and fully executed guaranty agreement by Guarantor (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Guaranty Agreement”).

(d)Duly and fully executed mortgages with respect to the Real Property (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Mortgages”) and UCC-1 Fixture Filings. The Mortgages and UCC-1 Fixture Filings shall secure the Obligations and create a first priority lien on the Real Property, subject only to the Permitted Liens.

(e)A duly and fully executed subordination agreement with respect to the Royalty/ Management Payments (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Royalty I Management Subordination Agreement”).

(f)A duly and fully executed environmental indemnity agreement with respect to the Real Property (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Environmental Indemnity Agreement”).

(g)Each instrument, document and agreement required to be executed under any provision of this Agreement or any other Loan Document.

(h)Certified copies of (i) resolutions of the Governing Body of Borrower and Guarantor, authorizing the execution, delivery and performance of this Agreement and the other Loan Documents and the transactions contemplated thereby, as applicable, and (ii) Borrower’s and Guarantor’s organizational and governing documents and agreements.

(i)Incumbency certificates identifying all Authorized Representatives and any Person executing this Agreement and the other Loan Documents, with specimen signatures.

(j)Certificates of good standing for Borrower and Guarantor issued by the appropriate governmental authority.

(k)A written loan closing opinion of Borrower’s and Guarantor’s independent counsel.

(I)A borrowing base report substantially in the form of Exhibit F attached hereto, together with supporting documentation and details satisfactory to Lender including, but not limited to, schedules providing details on receivables, inventory, and payables (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Borrowing Base Report”).

(m)A compliance certificate substantially in the form of Exhibit G attached hereto, together with supporting documentation (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Compliance Certificate”).

(n)Satisfactory evidence of “all risk” property insurance coverage on Borrower’s Property and general liability, business interruption, auto liability, worker’s compensation and other insurance of Borrower, as may be required by any of the Loan Documents or Lender.

(o)A collateral inspection report with respect to the Personal Property, prepared by a qualified and licensed inspector satisfactory to Lender, together with a letter from such inspector stating that Lender can rely upon such inspection in connection with this Agreement.

(p)Independent written appraisals of the value of the Real Property and certain of the Personal Property, prepared by a qualified and licensed appraiser satisfactory to Lender, certified to Lender or accompanied by a letter from such appraiser stating that Lender can rely upon such appraisal in connection with this Agreement. Such appraisals shall evidence the underwritten loan-to-value ratios required by Lender to adequately support the Loans.
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(q)ALTA lender’s policies of title insurance for the Real Property, with Lender as the insured, insuring the Mortgages as first priority liens on the Real Property, subject only to the Permitted Liens. All standard exceptions to such policy shall be deleted, and the policy shall contain such endorsements as Lender may reasonably request.  On the First Closing Date, Lender shall receive pro forma title insurance policies for such insurance showing that (i) all requirements for issuance of the policy have been satisfied, (ii) the Mortgages are first priority liens on the Real Property, subject only to the Permitted Liens, (iii) the standard exceptions to coverage will be deleted from the final policies and (iv) the final policies will contain the requested endorsements.

(r)ALTA-NSPS surveys of the Real Property, prepared by registered land surveyors satisfactory to Lender, certified to Lender or accompanied by a letter from such land surveyor stating that Lender and the title companies issuing the title insurance for the Real Property can rely upon such surveys in connection with this Agreement and that no material changes have occurred to the Real Property in question since the surveys were prepared.

(s)ASTM Phase 1 environmental assessments for the Real Property, prepared by environmental assessment firms satisfactory to Lender, certified to Lender or accompanied by a letter from such environmental assessment firms stating that Lender can rely upon such assessments in connection with this Agreement.

(t)Flood certificates indicating that the Real Property is not within the 100-year flood plain or identified as a special flood hazard area as defined by the Federal Emergency Management Agency or flood insurance required by Lender.

(u)A complete copy of the fully executed Acquisition Agreement and Closing Documents.  The Acquisition shall have been consummated in accordance with the Acquisition Agreement and Closing Documents, without any amendment to or waiver of any terms or conditions of the Acquisition Agreement and Closing Documents not approved by Lender (such approval not to be unreasonably withheld or delayed). Lender shall have received copies of all material due diligence relating to the Acquisition.

(v)Duly and fully executed copies of the instruments, documents and agreements evidencing the Royalty/ Management Payments, including, but not limited to, the Royalty / Management Agreement.

(w)A certification that Borrower has Net Worth equal to or more than $12,000,000 as of the First Closing Date.

(x)Projected balance sheets of Borrower for the fiscal years of Borrower ending on December 31, 2018 through December 31, 2025, together with an explanation of the assumptions used to forecast such financial projections.

(y)A payoff letter from Choice Financial Group - Grand Forks confirming the amount required to pay off all Debt owing to such lender by Borrower and confirming the discharge, release and termination of all Liens on the Property of Borrower upon receipt of such payoff amount.

(z)Evidence confirming that all Debt owing to The Peninsula Fund V Limited Partnership by Borrower has been paid in full and confirming the discharge, release and termination of all Liens on the Property of Borrower.

(aa)A payoff letter from Forward Devils Lake, Inc. confirming the amount required to pay off all Debt owing to such Person by Borrower and confirming the discharge, release and termination of all Liens on the Property of Borrower upon receipt of such payoff amount.

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(bb)    A payoff letter from DOB Holdings confirming the amount required to pay off all Debt owing to such Person by Borrower and confirming the discharge, release and termination of all Liens on the Property of Borrower upon receipt of such payoff amount.

(cc)    Payment of all Expenses incurred and invoiced prior to the First Closing Date.

(dd)    All other instruments, certificates, documents, information and reports reasonably required or requested to be executed and/or delivered by Borrower or Guarantor in the reasonable discretion of Lender. 

3.2.Conditions Precedent to Second Closing. Prior to the Second Closing, Borrower shall have delivered to Lender the following:

(a)A duly and fully executed Term Loan Note (Facility - Equipment).

(b)Invoices, purchase orders, receipts, contracts or other evidence of the equipment to be purchased with the proceeds of the Advance. The purchase price of the equipment (together with the cost of installation), as reflected by such documents, shall not be less than the amount of the requested Advance.

(c)Payment of all Expenses incurred and invoiced prior to the Second Closing Date.

(d)All other instruments, certificates, documents, information and reports reasonably required or requested to be executed and/or delivered by Borrower or Guarantor in the sole discretion of Lender.

3.3.Conditions Precedent to Advances. Lender’s obligation to make Advances shall be subject to the satisfaction of each of the following conditions:

(a)All representations and warranties of Borrower and Guarantor in this Agreement and the other Loan Documents shall be deemed reaffirmed as of the making of such Advance and shall be true, correct and complete in all material respects both before and after giving effect to such Advance (except for those representations and warranties which specifically relate to an earlier date, in which case such representations and warranties shall be true, correct and complete as of such earlier date).

(b)No Event of Default or Unmatured Event of Default shall have occurred and be continuing, Borrower and Guarantor shall be in compliance with this Agreement and the other Loan Documents and Borrower and Guarantor shall be deemed to have certified such matters to Lender.

(c)Borrower and Guarantor shall have taken such other actions, including the delivery of instruments, documents and agreements, as Lender may reasonably request.

3.4.Compliance with this Agreement. Borrower shall have performed and complied with all agreements, covenants and conditions contained herein including, without limitation, the provisions of Sections 5 and 6 hereof, which are required to be performed or complied with by Borrower before or at the First Closing Date or Second Closing Date, as applicable, and as of the date of each Advance.

3.5.Closing. Subject to the conditions of this Section 3 and the other terms and conditions of this Agreement, (a) the Revolving Credit Facility, Term Loan Facility (Facility - A) and Term Loan Facility (Facility - 8) shall be made available to Borrower on the date (the “First Closing Date”) this Agreement is duly executed and delivered to Lender and all of the conditions contained in Section 3.1 hereof are satisfied or waived (the “First Closing”) and (b) the Term Loan Facility (Facility - Equipment) shall be made available to Borrower on the date (the “Second Closing Date”) all of the conditions contained in Sections 3.1 and 3.2 hereof are satisfied or waived (the “Second Closing”).
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3.6.Non-Waiver of Rights. By completing the First Closing or Second Closing, as applicable, hereunder, or by making Advances hereunder, Lender does not thereby waive a breach of any representation, warranty or covenant made by Borrower or Guarantor hereunder or under any agreement, document or instrument delivered to Lender or otherwise referred to herein, and any claims and rights of Lender resulting from any breach or misrepresentation by Borrower or Guarantor are specifically reserved by Lender.

3.7.Post-Closing Obligations. Lender contemplates that it may waive certain conditions set forth in Sections 3.1 or 3.2 hereof and proceed to complete the First Closing or Second Closing. Borrower hereby agrees to satisfy such of those waived conditions as Lender may request within thirty (30) days after Lender provides Borrower with a written request (the “Post-Closing Period”). Failure to satisfy any such waived conditions during the Post-Closing Period shall constitute an Event of Default.

SECTION 4.    REPRESENTATIONS AND WARRANTIES

To induce Lender to complete the First Closing and Second Closing and make Advances under the Facilities, Borrower represents and warrants to Lender that:

4.1.Organization, Powers, Authorization and Enforceability.

(a)Borrower is duly organized, validly existing and in good standing under the laws of the state of its organization, has lawful power and authority to engage in the business it conducts and is qualified to do business and in good standing in each state and other jurisdiction where the nature and extent of its business requires qualification, except where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

(b)Borrower has all requisite power and authority to enter into and perform this Agreement and the other Loan Documents and to incur the Obligations herein provided for, and has taken all proper and necessary action to authorize the execution, delivery and performance of this Agreement and the other Loan Documents.

(c)This Agreement and the other Loan Documents, when executed and delivered, will be legal, valid and binding upon Borrower and Guarantor, as applicable, and enforceable against Borrower and Guarantor, as applicable, in accordance with their respective terms, except to the extent enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting creditors’ rights generally and by general principles of equity.

4.2.No Conflicts. The execution, delivery and performance of this Agreement, the other Loan Documents and all related agreements and each document required by any provision hereof by Borrower will not violate any law, government rule or regulation, violate the organizational or governing documents and agreements of Borrower or violate or result in a default of (immediately or with the passage of time) any contract, agreement or instrument to which Borrower is a party, or by which Borrower or its Property is bound. Borrower is not in violation of nor has it knowingly caused any Person to violate any term of any agreement or instrument to which it is a party or by which it or its Property may be bound, which violation could reasonably be expected to have a Material Adverse Effect. Borrower is not in violation of its organizational or governing documents and agreements.

4.3.Financial Condition / Full Disclosure. Borrower has delivered to Lender the audited balance sheets, statements of earnings, statements of shareholders’ equity (deficit) and statements of cash flows of Borrower as of and for its fiscal year ended on December 31, 2018.  Such financial statements present fairly the financial condition and results of operations and cash flows of Borrower as of such date and for such period in accordance with GAAP.  The other financial statements and 
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information relating to Borrower or Guarantor and delivered to Lender in connection with the negotiation of this Agreement present fairly the financial condition of Borrower or Guarantor as of the date thereof and the results of operations and cash flows as of the period thereof. Since December 31, 2018, there has been no Material Adverse Effect. Neither the written statements furnished by Borrower to Lender in connection with the negotiation of this Agreement nor those contained in any financial statements or documents relating to Borrower or Guarantor contain any untrue statement of a material fact or omit a material fact necessary to make the statements contained therein or herein not misleading. Any projected financial statements and information relating to Borrower and delivered to Lender in connection with the negotiation of this Agreement have been prepared in good faith on the basis of assumptions stated therein, which assumptions were believed to be reasonable at the time of preparation, it being understood that actual results may vary from such projections.

4.4.Governmental Approval. Neither the nature of Borrower or of Borrower’s business or Property, nor any relationship between Borrower and any other Person, nor any circumstance affecting Borrower in connection with the issuance or delivery of any Loan Document, is such as to require a consent, approval or authorization of, or filing, registration or qualification with, any governmental authority on the part of Borrower in connection with the execution and delivery of this Agreement or the other Loan Documents, except for filings and recordings for collateral security purposes.

4.5.Pending Litigation. There are no judgments, judicial or administrative orders, suits, actions, proceedings or investigations (civil or criminal) pending, or to the knowledge of Borrower, threatened, against Borrower or affecting any of its Property in any court or before any governmental authority, regulatory agency or arbitration board or tribunal which could reasonably be expected to have a Material Adverse Effect.  Borrower is not in default with respect to any order of any court, governmental authority, regulatory agency or arbitration board or tribunal which could reasonably be expected to have a Material Adverse Effect. To the knowledge of Borrower, no shareholder, director or officer of Borrower has been indicted or convicted in connection with or is engaging in any felonious criminal conduct, or is currently subject to any lawsuit or proceeding or under investigation in connection with any antiracketeering or other related conduct or activity which could reasonably be expected to have a Material Adverse Effect.

4.6.Taxes. All tax returns required to be filed by Borrower in any jurisdiction have in fact been filed, and all taxes, assessments, fees and other governmental charges  upon Borrower, or any of its Property, income or franchises,  which are shown to be due and payable on such returns have been paid, except for those taxes being contested in good faith with due diligence by appropriate proceedings and for which adequate reserves are maintained or where failure to pay such taxes, assessments, fees or charges could not reasonably be expected to have a Material Adverse Effect. Borrower is not aware of any proposed additional material tax assessment or material tax to be assessed against or applicable to Borrower.

4.7.Insurance. All premiums due in respect of all insurance maintained by Borrower or with respect to its Property have been paid.

4.8.Contracts, Etc.

(a)Borrower is not a party to any contract or agreement, or subject to any other restriction, which unduly and unreasonably materially and adversely affects its business, financial condition, Property or prospects.

(b)Except as otherwise specifically provided in this Agreement, Borrower has not agreed or consented to cause or permit any of its Property to be subject in the future (upon the happening of a contingency or otherwise) to any Lien, except the Permitted Liens.

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4.9.Compliance with Laws. Borrower is not in violation of, has not received written notice that it is in violation of, nor has it knowingly caused any Person to violate, any applicable statute, regulation or ordinance of the United States of America, or of any state, city, town, municipality, county or of any other jurisdiction, or of any agency, or department thereof (including without limitation, environmental laws and regulations), which violation could reasonably be expected to have a Material Adverse Effect.

4.10.Equity Interests. The authorized and outstanding equity interests of Borrower are owned as set forth on Schedule 4.10 hereto.  All of the equity interests of Borrower have been duly and validly authorized and issued and are fully paid and non-assessable and have been sold and delivered to the holder thereof in compliance with, or under valid exemption from, all federal and state laws and the rules and regulations of all regulatory bodies thereof governing the sale and delivery of securities. Except as set forth on Schedule 4.10 hereto, there are no subscriptions, warrants, options, calls, commitments, rights or agreements by which Borrower is bound relating to the issuance, transfer, voting or redemption of Borrower’s equity interests or any pre-emptive rights held by any Person with respect to the equity interests of Borrower. Except as set forth on Schedule 4.10 hereto, Borrower has not issued any securities convertible into or exchangeable for its equity interests or any options, warrants or other rights to acquire such equity interests or securities convertible into or exchangeable for such equity interests.

4.11.Investments and Subsidiaries. Borrower does not have any Investments, except Permitted Investments. Borrower does not have any Subsidiaries.

4.12.Labor Matters. There are no strikes, lockouts or slowdowns against Borrower pending or, to the knowledge of Borrower, threatened, which could reasonably be expected to have a Material Adverse Effect. The hours worked by and payments made to employees of Borrower have not been in violation of the Fair Labor Standards Act or any other applicable federal, state, local or foreign law dealing with such matters in any material respect.  All payments due from Borrower, or for which any claim may be made against Borrower, on account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of Borrower.

4.13.ERISA. Neither Borrower nor any of its ERISA Affiliates has received any notice or has any knowledge to the effect that it is not in compliance in all material respect with any of the requirements of ERISA, the Code or applicable state law with respect to any Plan.  No ERISA Event has occurred or is reasonably expected to occur. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan.

4.14.Debt. Borrower does not have existing Debt, except Permitted Debt.

4.15.Title to Property. Borrower has good and marketable title to its Property, free from all Liens, except Permitted Liens. Borrower’s Property is not subject to any right of first refusal, right of first offer, option to purchase or lease, except pursuant to the agreements set forth on Schedule 4.15 hereto.

4.16.Collateral Locations. Attached hereto as Schedule 4.16 is a complete and accurate list showing all places at which the Collateral is located on the date hereof. Such list indicates whether the premises are owned or leased by Borrower or whether the premises are the premises of a lessor, warehouseman, bailee or other third party, and if owned by a third party, the name, address and telephone number of such third party.

4.17.Location of Bank and Brokerage Accounts. Attached hereto as Schedule 4.17 is a complete and accurate list of all deposit, checking, savings, securities, investment, hedging, commodity trading and other accounts maintained with any bank, broker or dealer and all other similar accounts 
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maintained by Borrower on the date hereof, together with a description thereof. Each of the accounts set forth on Schedule 4.17 hereto is maintained with the corresponding financial institution indicated thereon.

4.18.Investment Company Act, Etc. Borrower is not (a) an “investment company,” as defined in, or subject to regulations under, the Investment Company Act of 1940, as amended, or (b) otherwise subject to any other regulatory scheme limiting its ability to incur Debt.

4.19.Intellectual Property. Borrower owns, licenses or possesses the right to use all of the trademarks, service marks, trade names, domain names, copyrights, patents, patent rights, licenses, technology, software, know-how, database rights, rights of privacy and publicity and other intellectual property rights (collectively, “IP Rights”) that are necessary for the operation of its business as currently conducted, and, without infringement of the rights of any Person in any material respect. The operation of the business of Borrower as currently conducted does not infringe upon, misuse, misappropriate or violate any IP Rights held by any Person in any manner which could reasonably be expected to have a Material Adverse Effect. No claim or litigation regarding any IP Rights is pending or, to the knowledge of Borrower, threatened against Borrower which could reasonably be expected to have a Material Adverse Effect.

4.20.Environmental Compliance. Borrower has obtained all material permits, licenses and other authorizations which are required under federal, state and local laws and regulations relating to emissions, discharges, releases of pollutants, contaminants, hazardous or toxic materials, or wastes into ambient air, surface water, ground water or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants or hazardous or toxic materials  or  wastes (“Environmental Laws”) at its facilities or in connection with the operation of  its  facilities. Borrower and all activities of Borrower, at its facilities, comply in all material respects with all Environmental Laws and with all material terms and conditions of any required permits, licenses and authorizations applicable to such Person with respect thereto. Borrower is in compliance in all material respects with all limitations, restrictions, conditions, standards, prohibitions, requirements, obligations, schedules and timetables contained in Environmental Laws or contained in any plan, order, decree, judgment or notice of which Borrower is aware.   Borrower is not aware of, nor has Borrower received notice of, any events, conditions, circumstances, activities, practices, incidents, actions or plans which may interfere with or prevent continued compliance in all material respects with, or which may give rise to any material liability under, any Environmental Laws.

4.21.Acquisition Agreement and Closing Documents. Borrower has delivered to Lender a true and correct copy of the Acquisition Agreement and Closing Documents and any amendments, waivers and other documents executed in connection therewith, and there has been no other amendment, waiver or modification of the Acquisition Agreement and Closing Documents. To the knowledge of Borrower, all representations and warranties of Borrower contained in the Acquisition Agreement and Closing Documents are true and correct in all material respects.

SECTION 5.    BORROWER’S AFFIRMATIVE COVENANTS

Borrower covenants that until all of the Obligations are paid and satisfied in full and the Facilities have been terminated:

5.1.Financial and Business Information. Borrower shall deliver to Lender the following (all to be in form and substance satisfactory to Lender):

(a)as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Borrower, (i) financial statements of Borrower for such fiscal year which present fairly Borrower’s financial condition, including balance sheets as of the end of such fiscal year and statements of earnings, statements of shareholders’ equity (deficit) and statements of cash flows 
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for such fiscal year, prepared in accordance with GMP, and audited by an independent certified public accounting firm of recognized standing selected by Borrower and reasonably satisfactory to Lender, together with an unqualified opinion on the financial statements from such accounting firm; and (ii) a calculation of Excess Cash Flow for such fiscal year of Borrower;

(b)as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Guarantor, financial statements of Guarantor for such fiscal year which present fairly Guarantor’s financial condition, including balance sheets as of the end of such fiscal year and statements of income and statements of cash flows for such fiscal year, all on a consolidated basis and accompanied  by consolidating  schedules,  prepared in accordance with GMP, and audited by an independent certified public accounting firm of recognized standing selected by Guarantor and reasonably satisfactory to Lender, together with an unqualified opinion on the financial statements from such accounting firm;

(c)as soon as available, but in any event within forty-five (45) days after the end of each month, internally-prepared financial statements of Borrower for such month, along with year to date information and comparative information from the same periods of the preceding fiscal year, which present fairly Borrower’s financial condition, including balance  sheets as of the end of such month and statements of earnings for such month, prepared in accordance with GAAP (subject to the absence of footnotes and year-end adjustments);

(d)as soon as available, but in any event within forty-five (45) days after the end of each month, a Borrowing Base Report as of the last day of such month (together with the supporting documentation required by Section 3.1(I) hereof);

(e)as soon as available, but in any event within forty-five (45) days after the end of each month, a Compliance Certificate as of the last day of such month (together with the supporting documentation required by Section 3.1(m) hereof);

(f)as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Borrower, financial projections of Borrower for the then current fiscal year, together with an explanation of the assumptions used to forecast such financial projections;

(g)upon the request of Lender, any documents required by the company issuing the Trade Credit Insurance in order to file a claim against the Trade Credit Insurance; and

(h)such other data, reports, statements and information (financial or otherwise) as Lender may reasonably request.

5.2.Tax Returns and Reports. As soon as available, but in any event within thirty (30) days after filing, Borrower shall promptly furnish Lender with copies of the annual federal and state income tax returns of Borrower and Guarantor.

5.3.Certain Notices. Borrower shall deliver written notice to Lender of the occurrence of any of the following conditions or events promptly upon Borrower or any shareholder, director, officer or Affiliate of Borrower becoming aware of any such condition or event:

(a)any condition or event which constitutes an Event of Default or Unmatured Event of Default, such notice to specify the nature and period of existence thereof and what action Borrower is taking (and proposes to take) with respect thereto;

(b)any condition or event which could reasonably be expected to have a Material Adverse Effect, such notice to specify the nature and period of existence thereof and such anticipated Material Adverse Effect;
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(c)any litigation claiming in excess of $250,000 from Borrower, or which could reasonably be expected to have a Material Adverse Effect; or

(d)any damage, loss, theft or destruction in excess of $250,000 with respect to any portion of Borrower’s Property, or which could reasonably be expected to have a Material Adverse Effect.

5.4.Places of Business: Jurisdiction of Organization: Name. Borrower shall give ten (10) days prior written notice to Lender of any changes in the location of its jurisdiction of organization or name. Borrower shall give prompt written notice to Lender after any changes in the location of its chief executive office or any other places of business, or the establishment of any new, or the discontinuance of any existing, place of business.

5.5.Business Conducted, Financial Records and Existence and Rights.

(a)Borrower shall continue in the primary business presently engaged in by it, it being agreed that Borrower may engage in businesses reasonably related to its primary business.

(b)Borrower shall keep current and accurate books of records and accounts in which full and correct entries will be made of all of its business transactions, and will reflect in its financial statements adequate accruals and appropriations to reserves, all in accordance with GAAP. Borrower shall provide written notice to Lender promptly upon any change to its fiscal year end date.

(c)Borrower shall do (or cause to be done) all things necessary to preserve and keep in full force and effect its legal existence, good standing, rights and franchises except to the extent failure to do so could not reasonably be expected to have a Material Adverse Effect.

5.6.Maintenance of Insurance.

(a)Borrower shall maintain, or cause to be maintained, “all risk” insurance on its Property at all times against fire, casualty and such other hazards in such amounts, with such deductibles and with such insurers as are customarily used by companies operating in the same industry as Borrower or which Borrower has historically used (and which is acceptable to Lender).

(b)Borrower shall maintain, or cause to be maintained, general liability, business interruption, auto liability, worker’s compensation and other insurance in such amounts, with such deductibles and with such insurers as are customarily used by companies operating in the same industry as Borrower or which Borrower has historically used (and which is acceptable to Lender).

(c)The policies of all such insurance shall contain standard lender loss payable and additional insured clauses issued in favor of Lender pursuant to which all losses thereunder shall be paid to Lender as Lender’s interests may appear. To the extent available and customarily agreed to by the insurer, such policies shall expressly provide that the requisite insurance cannot be materially altered or canceled without thirty (30) days prior written notice to Lender and shall insure Lender notwithstanding the act or neglect of the insured. Upon the request of Lender, Borrower shall furnish Lender with insurance certificates certified as true and correct and being in full force and effect or such other evidence of insurance as Lender may require. Such insurance certificates shall name Lender as loss payee and as additional insured. In the event Borrower fails to procure or cause to be procured any such insurance or to timely pay or cause to be paid the premium(s) on any such insurance, Lender may do so for Borrower, but Borrower shall continue to be liable for the same. Borrower hereby appoints Lender as its attorney-in-fact, exercisable at Lender’s option, to endorse any check which may be payable to Borrower in order to collect the proceeds of such insurance.

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5.7.Compliance with Laws. Borrower shall be in compliance with any and all laws, ordinances, governmental rules and regulations, and court or administrative orders or decrees to which it or its Property is subject, whether federal, state or local (including, without limitation, environmental or environmental-related laws, statutes, ordinances, rules, regulations  and notices) and shall obtain and maintain any and all licenses, permits, franchises, certificates or other governmental authorizations necessary to the ownership of its Property and to the conduct of its businesses except, in each case, as could not reasonably be expected to have a Material Adverse Effect.

5.8.Payment of Obligations, Taxes and Claims. Borrower shall pay, before they become delinquent, all debts, obligations, taxes, assessments, governmental charges, levies and claims imposed upon it or upon its Property, except for those being contested in good faith with due diligence by appropriate proceedings and for which adequate reserves are maintained in accordance with GAAP or where the failure to so pay could not reasonably be expected to have a Material Adverse Effect.

5.9.Financial Covenants. Borrower shall perform and comply with each of the following financial covenants as reflected and computed from the financial statements of Borrower:

(a)Borrower shall maintain Working Capital equal to or more than $1,500,000, measured as of the last day of each month.

(b)Borrower shall maintain Net Worth equal to or more than $12,000,000, measured as of the last day of each month.

(c)Borrower shall not permit the Unfinanced Capital Expenditures of Borrower to exceed $2,000,000 during any fiscal year of Borrower, measured as of the last day of each fiscal year of Borrower, commencing on December 31, 2019.

(d)Borrower shall maintain a Funded Debt to EBITDA Ratio equal to or less than (i) 4.00x from the date hereof through June 29, 2020, (ii) 3.50x from June 30, 2020 through December 30, 2020, (iii) 3.00x from December 31, 2020 through June 29, 2021, (iv) 2.50x from June 30, 2021 through December 30, 2021 and (v) 2.00x on and after December 31, 2021, measured as of the last day of each fiscal quarter of Borrower, commencing on December 31, 2019.

(e)Borrower shall maintain a Fixed Charge Coverage Ratio equal to or more than 1.25x, measured as of the last day of each fiscal quarter of Borrower, commencing on December 31, 2019.

5.10.Maintenance of Property / Inspection. Borrower shall keep and maintain its material Property in good working order and condition, ordinary wear and tear excepted and shall make all necessary repairs thereto except to the extent that such Property has become obsolete or Borrower has reasonably determined that such Property is no longer used or useful in its business. Borrower shall, during regular business hours upon reasonable advance notice, permit any of Lender’s officers or other representatives to visit and inspect Borrower’s Property, to examine and audit all of Borrower’s books of account, records, reports and other papers, to make copies and extracts therefrom and to discuss its affairs, finances and accounts with the shareholders, directors, officers, employees, Affiliates and independent certified public accountants of Borrower.

5.11.Collateral Locations. Borrower shall keep the Collateral at the locations set forth on Schedule 4.16 hereto and not move any Collateral to any location not shown on Schedule 4.16 hereto, except (a) in connection with sales of Collateral made in the ordinary course of Borrower’s business, (b) Collateral in transit to and from locations shown on Schedule 4.16 and (c) such other location as may be approved in writing by Lender.

5.12.Borrowing Base. Borrower agrees that any Property included in a Borrowing Base Report delivered to Lender pursuant to Section 5.1(d) hereof (a) shall constitute Eligible Insured Accounts Receivable, Eligible Accounts Receivable, Eligible Grain Inventory or Eligible Non-Grain 
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Inventory, as applicable and (b) shall not be included in more than one (1) category of Borrowing Base Factors on such Borrowing Base Report.

5.13.Food Security Act Compliance.

(a)As Seller. Borrower agrees to deliver to Lender upon request a list of all Persons to or through whom Borrower may sell any Farm Products produced by Borrower, such list to identify the name and address of such Person or Persons. Borrower agrees that it will, at any time, execute and assist in the preparation of any “effective financing statements” (as such term is utilized in the Food Security Act) with respect to each jurisdiction that has established a “central filing system” pursuant to the Food Security Act as Lender may reasonably request to protect its Liens under the Food Security Act as against the purchasers of Borrower’s Farm Products, as required by the Security Agreement.  Unless an Event of Default or Unmatured Event of Default shall have occurred and be continuing, Borrower is authorized to directly receive all proceeds related to Borrower’s Farm Products, if any, provided that such proceeds are transferred into a deposit account as required by this Agreement and the Security Agreement.  If Borrower shall fail to comply with the provisions of this Section 5.13 with respect to a sale of its Farm Products, Borrower agrees to deliver the proceeds of such sale to Lender not later than ten (10) days after receipt of such proceeds. Borrower agrees to notify Lender of any type of Farm Product that Borrower undertakes to produce after the date hereof that is different from the Farm Products it produces, if any, on the date hereof.

(b)As Buyer. If Borrower acquires any Collateral which may have constituted Farm Products in the possession of the seller or supplier thereof, Borrower shall, at its own expense, use commercially reasonable efforts to take such steps to insure that all Liens in such acquired Collateral are terminated or released, including, without limitation, in the case of such Farm Products produced in a state which has established a “central  filing system” pursuant  to the Food Security Act, registering with the secretary of state of such state (or such other party or office designated by such state) and otherwise take such reasonable actions necessary, as prescribed by the Food Security Act, to purchase such Farm Products free of Liens, provided, however, that Borrower may contest and need not obtain the release or termination of any Lien asserted by any creditor of any seller of such Farm Products, so long as it shall be contesting the same by proper proceedings and maintain appropriate accruals and reserves therefor in accordance with GMP. Upon Lender’s request, Borrower agrees to forward to Lender promptly after receipt copies of all notices of Liens and master lists of “effective financing statements” (as such term is utilized in the Food Security Act) delivered to Borrower pursuant to the Food Security Act, which notices and / or lists pertain to any of the Collateral. Upon Lender’s request, Borrower agrees to provide Lender with the names of Persons who supply Borrower with such Farm Products and such other information as Lender may reasonably request with respect to such Persons.

5.14.Deposit Accounts. Borrower shall maintain its primary deposit accounts with Lender.

SECTION 6.    BORROWER’S NEGATIVE COVENANTS

Borrower covenants that until all of the Obligations are paid and satisfied in full and the Facilities have been terminated:

6.1.Debt. Borrower shall not create, incur, assume or permit to exist, voluntarily or involuntarily, any Debt, except Permitted Debt.

6.2.Liens. Borrower shall not (a) execute a negative pledge agreement with any Person covering any Property, except as set forth in the Loan Documents, or (b) cause or permit, voluntarily or involuntarily, or consent to cause or permit (upon the happening of a contingency or otherwise) its Property to be subject to any Lien, except Permitted Liens.

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6.3.Investments. Borrower shall not purchase, hold, acquire, make or permit to exist, voluntarily or involuntarily, any Investment, except Permitted Investments.

6.4.Distributions. Borrower shall not declare, pay or make any form of Distribution, except (a) an annual Distribution with respect to any fiscal year of Borrower ending on or after December 31, 2022; provided, that any such Distribution is in an aggregate amount which does not exceed fifty percent (50%) of the Net Income of Borrower for such fiscal year and (b) any other Distributions which have been approved in writing by Lender in Lender’s sole discretion; provided, that, in each case, (i) no Event of Default or Unmatured Event of Default has occurred or would result therefrom and (ii) Borrower would be in compliance with the financial covenant set forth in Section 5.9(e) hereof on a proforma basis after giving effect to such Distribution. If, at the end of any fiscal quarter of Borrower, Borrower is not in compliance with the financial covenant set forth in Section 5.9(e) hereof, Borrower shall recover from its shareholders any Distribution made during the most recently ended four (4) fiscal quarters of Borrower.

6.5.Fundamental Changes.
(a)Borrower shall not sell, lease, license, transfer or otherwise dispose of its Property, agree to the same or convey any rights regarding the same, except (i) inventory and Farm Products sold in the ordinary course or ordinary operation of Borrower’s business, (ii) unused or obsolete Property, (iii) Property sold for fair market value in an aggregate amount not to exceed $100,000 per fiscal year of Borrower and (iv) pursuant to the agreements set forth on Schedule 4.15 hereto. Borrower shall not materially amend, restate, modify, supplement, extend, renew or take any similar material actions with respect to the agreements set forth on Schedule 4.15 hereto.

(b)Borrower shall not sell all or substantially all of its assets (or any assets constituting a business unit or division of Borrower).

(c)Borrower shall not merge or consolidate with, or otherwise engage in any form of business combination with, any other Person, commence a reorganization, dissolution or liquidation or create or form any Subsidiary.

(d)Borrower shall not acquire all or substantially all of the assets of (or any assets constituting a business unit or division of) any other Person.

(e)Borrower shall not cause or permit the division of itself into two or more separate limited liability companies.

6.6.Change of Control of Borrower. No Change of Control shall occur with respect to Borrower. For the purposes of this Section 6.6, a “Change of Control” shall occur if:

(a)any person, entity or “group” (within the meanings of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), acquires, directly or indirectly, “beneficial ownership” (as described in Rules 13d 3 and 13d-5 under the Exchange Act) of more than 50% of the outstanding equity interests of Guarantor entitled to vote for members of the Governing Body of Guarantor or the power to direct or cause the direction of the management or policies of Guarantor, where such person, entity or group had no beneficial ownership of Guarantor on the date of this Agreement;

(b)Guarantor ceases to be the “beneficial owner” (as described in Rules 13d-3 and 13d-5 under the Exchange Act) of 100% of the outstanding equity interests of DDB Holdings entitled to vote for members of the Governing Body of DDB Holdings or to possess the power to direct or cause the direction of the management or policies of DOB Holdings; or

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(c)DOB Holdings ceases to be the “beneficial owner” (as described in Rules 13d-3 and 13d-5 under the Exchange Act) of 100% of the outstanding equity interests of Borrower entitled to vote for members of the Governing Body of Borrower or to possess the power to direct or cause the direction of the management or policies of Borrower.

6.7.Transactions With Affiliates. Borrower shall not enter into any transaction with any Affiliate of Borrower including, without limitation, the purchase, sale, lease or exchange of Borrower’s Property, or the loaning, capitalization or giving of funds to any such Affiliate, unless (a) such Affiliate is engaged in a business substantially related to the business of Borrower, (b) the transaction is in the ordinary course of and pursuant to the reasonable requirements of Borrower’s business  and upon terms substantially  the same and no less favorable to Borrower as it would obtain in a comparable arm’s-length transaction with any Person not an Affiliate of Borrower and (c) such transaction is not otherwise prohibited hereunder.

6.8.Bank and Brokerage Accounts; Deposits. Borrower shall not establish any new deposit, checking, savings, securities, investment, hedging, commodity trading or other similar accounts, maintain any account other than those accounts specified on Schedule 4.17 hereto, deposit proceeds from the sale of Collateral in any account other than a deposit  account specified on Schedule 4.17 hereto or permit the cash balance of the accounts set forth on Schedule 4.17 hereto to exceed the corresponding balance limit indicated on Schedule 4.17 hereto for more than two (2) Business Days.  The accounts set forth on Schedule 4.17 hereto that are maintained with financial institutions other than Lender and in which Lender does not have a first priority perfected security interest shall not have an aggregate balance limit in excess of $100,000.

6.9.Sale-Leaseback Transactions. Borrower shall not enter into any arrangement, directly or indirectly, with any other Person whereby Borrower shall sell or transfer any Property, whether now owned or hereafter acquired, and then or thereafter rent or lease as lessee such Property or any part thereof or any other property which Borrower intends to use for substantially the same purpose or purposes as the Property being sold or transferred.

6.10.Margin Regulations. None of the proceeds of the Loans shall be used for “purchasing” or “carrying” any “margin stock” within the respective meanings of each of such terms under Regulation U of the Board and Borrower shall not take, or authorize any agent acting on its behalf to take, any action which could result in a violation of any regulation of the Board.

6.11.Hazardous Substances. Borrower shall not cause or permit any Hazardous Substance to be disposed of in any manner which could reasonably be expected to result in a Material Adverse Effect.

6.12.Hedging. Borrower shall give prompt written notice to Lender after establishing any hedging program or otherwise engaging in any hedging transactions. Borrower shall not engage in speculative trading and all hedging positions of Borrower must be in the same or substantially similar products as the Collateral being hedged.

6.13.Royalty I Management Agreement. Borrower shall not enter into or otherwise have any obligations under any Royalty / Management Agreement unless the obligations of Borrower thereunder are subordinated to the Obligations pursuant to a subordination agreement in form and substance satisfactory to Lender. Borrower shall not make any Royalty / Management Payment unless such payment is expressly permitted by the terms of the Royalty / Management Subordination Agreement.

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SECTION 7. DEFAULT
7.1.Events of Default. Each of the following events shall constitute an event of default (“Event of Default”) and Lender shall thereupon have the option to declare the Obligations immediately due and payable, all without demand, notice, presentment or protest or further action of any kind (it also being understood that the occurrence of any of the events or conditions set forth in subparagraphs (k), (I) or (m) shall automatically cause an acceleration of the Obligations):

(a)Payments - if Borrower fails to make any payment of principal or interest on the date when such payment is due and payable (including any principal prepayment required under Section 2.4(b) hereof); or

(b)Other Charges - if Borrower fails to pay any other charges, fees, Expenses or other monetary obligations owing to Lender, whether arising out of or incurred in connection with this Agreement, any other Loan Document or otherwise, on the date when such payment is due and payable, whether upon maturity, acceleration, demand or otherwise, and such failure continues for a period of five (5) days after the earlier of Borrower becoming aware of such failure or Borrower receiving written notice from Lender of such failure; provided however, that the five (5) day grace period shall not be applicable if such payments are due and payable due to maturity, acceleration or demand, whether following an Event of Default, or otherwise; or

(c)Particular Covenant Defaults - if Borrower fails to perform, comply with or observe any covenant or undertaking contained in Sections 5.1, 5.6, 5.9, 5.10 (second sentence), 5.12, 6.1, 6.2, 6.4, 6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11, 6.12 or 6.13 hereof; or

(d)General Covenant Defaults - if Borrower or Guarantor fails to perform, comply with or observe any covenant or undertaking contained in this Agreement or any other Loan Document not otherwise described in this Section 7.1, and such failure continues for a period of thirty (30) days after the earlier of Borrower or Guarantor becoming aware of such failure or Borrower or Guarantor receiving written notice from Lender of such failure; or

(e)Financial Information - if any statement, report, financial statement or certificate made or delivered by Borrower or any shareholder, director, officer, employee, Affiliate or agent of Borrower to Lender is not true and correct in all material respects when made; or

(f)Representations or Warranties - if any representation, warranty or other statement by or on behalf of Borrower or Guarantor contained in or pursuant to this Agreement, any of the other Loan Documents or in any document, agreement or instrument furnished in compliance with, relating to or in reference to this Agreement, is false, erroneous or misleading in any material respect when made; or

(g)Cross Default - if Borrower shall default under any agreement pursuant to which Debt may be incurred in a principal amount of $250,000 or more and (i) such default consists of the failure to pay any principal or interest with respect to such Debt or (ii) such default consists of the failure to perform any covenant or agreement with respect to such Debt, if the effect of such default is to permit such creditor to cause the obligations of Borrower which are the subject thereof to become due prior to their maturity  date or prior to their regularly scheduled  date of payment; or

(h)Other Agreements with Lender - if, after the passage of all applicable notice and cure or grace periods, Borrower or Guarantor breaches or violates the terms of, or if a default or an event of default occurs under, any other existing or future agreement or obligation between or among Borrower or Guarantor and Lender that is in any way related to this Agreement including, without limitation, the Loan Documents and Swap Obligations owed to Lender; or

(i)Uninsured Loss - if there shall occur any uninsured damage, loss, theft or destruction in excess of $1,000,000 with respect to any portion of Borrower’s Property; or
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(j)Judgments - if any final, nonappealable judgment for the payment of money in excess of $250,000 which is not covered by insurance or an appeal bond, or for which Borrower has not established a cash or cash equivalent reserve in the amount of such judgment, shall be rendered and shall remain unsatisfied and unstayed for a period of at least thirty (30) days; or

(k)Assignment for Benefit of Creditors, Etc. - if Borrower or Guarantor makes or proposes an assignment for the benefit of creditors generally, offers a composition or extension to creditors or makes or sends notice of an intended bulk sale of any business or assets now or hereafter owned or conducted by Borrower or Guarantor; or

(I)Bankruptcy, Dissolution, Etc. - upon the commencement of any action for the bankruptcy, dissolution or liquidation of Borrower or Guarantor, or the commencement of any proceeding to avoid any transaction entered into by Borrower or Guarantor, or the commencement of any case or proceeding for reorganization or liquidation of Borrower or Guarantor, or any of their debts under the Bankruptcy Code or any other state or federal law, now or hereafter enacted for the relief of debtors, whether instituted by or against Borrower or Guarantor; provided, however, that Borrower and Guarantor shall have sixty (60) days to obtain the dismissal or discharge of involuntary proceedings filed  against Borrower or Guarantor, it being understood that during such sixty (60) day period, Lender shall not be obligated to make Advances hereunder and Lender may seek adequate protection in any bankruptcy proceeding; or

(m)Receiver - upon the appointment of a receiver, liquidator, custodian, trustee or similar official or fiduciary for Borrower or Guarantor or for any portion of Borrower’s or Guarantor’s Property, the value of which exceeds $250,000 in the aggregate; or

(n)Execution Process, Seizure, Etc. - the issuance of any execution or distraint process affecting any portion of the Property of Borrower, or any portion of the Property of Borrower is seized by any governmental entity, federal, state or local, in each case, to the extent the value of such Property exceeds $250,000 in the aggregate; or

(o)Pension Benefits, Etc. - if Borrower fails to comply with ERISA, so that grounds exist to permit the appointment of a trustee under ERISA to administer Borrower’s employee plans or to allow the Pension Benefit Guaranty Corporation to institute proceedings to appoint a trustee to administer such plans, or to permit the entry of a Lien to secure any deficiency or claim.

7.2.Cure. Nothing contained in this Agreement or the Loan Documents shall be deemed to compel Lender to accept a cure of any Event of Default hereunder, except as outlined in Section 7.1 hereof.

7.3.Rights and Remedies on Default.

(a)In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents, or otherwise available at law or in equity, upon or at any time after the occurrence and during the continuance of an Event of Default or Unmatured Event of Default, Lender may, in its discretion, withhold or cease making Advances.

(b)In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents, or otherwise available at law or in equity, upon or at any time after the occurrence and during the continuance of an Event of Default, Lender may, in its discretion, terminate any Facility or this Agreement.

(c)In addition to all other rights, options and remedies granted or available to Lender under this Agreement or the Loan Documents, or otherwise available at law or in equity, upon or at any time 
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after the occurrence and during the continuance of an Event of Default, Lender may, in its discretion, exercise all rights under the Uniform Commercial Code and any other applicable law or in equity, and under all Loan Documents permitted to be exercised after the occurrence of an Event of Default, including the following rights and remedies (which list is given by way of example and is not intended to be an exhaustive list of all such rights and remedies):

(i)The right to “take possession” of the Collateral, and notify all Account Debtors of Lender’s security interest in the Accounts and require payment under the Accounts to be made directly to Lender and Lender may, in its own name or in the name of Borrower, exercise all rights of a secured party with respect to the Collateral and collect, sue for and receive payment on all Accounts, and settle, compromise and adjust the same on any terms as may be satisfactory  to Lender, in its discretion for any reason or without reason and Lender may do all of the foregoing with or without judicial process (including, without limitation, notifying the United States postal authorities to redirect mail addressed to Borrower, to an address designated by Lender); or

(ii)Require Borrower, at Borrower’s expense, to assemble all or any part of the Collateral and make it available to Lender; or

(iii)The right to reduce or modify the Credit Commitments, or to modify the terms and conditions upon which Lender may be willing to consider making Advances.

(d)Borrower hereby agrees that a notice received by it at least ten (10) days before the time of any intended public sale or of the time after which any private sale or other disposition of the Collateral is to be made, shall be deemed to be reasonable notice of such sale or other disposition. If permitted by applicable law, any Collateral which threatens to speedily decline in value or which is sold on a recognized market may be sold immediately by Lender without prior notice to Borrower. Borrower covenants and agrees not to interfere with or impose any obstacle to Lender’s exercise of its rights and remedies with respect to the Collateral.

7.4.Nature of Remedies. All rights and remedies granted Lender hereunder and under the Loan Documents, or otherwise available at law or in equity, shall be deemed concurrent and cumulative, and not alternative remedies, and Lender may proceed with any number of remedies at the same time until all Obligations are satisfied in full. The exercise of any one right or remedy shall not be deemed a waiver or release of any other right or remedy, and Lender, upon or at any time after the occurrence and during the continuance of an Event of Default, may proceed against Borrower at any time, under any agreement, with any available remedy and in any order.

7.5.Set-Off. If an Event of Default shall have occurred and be continuing, Lender and its Affiliates are hereby authorized at any time and from time to time, to the fullest extent permitted by applicable law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by Lender, or any such Affiliate, to or for the credit or the account of Borrower against any and all of the Obligations hereunder, irrespective of whether or not Lender shall have made any demand under this Agreement or any other Loan Document and although such Obligations may be contingent or unmatured or are owed to a branch or office of such Lender different from the branch or office holding such deposit or obligated on such indebtedness.  The rights of Lender and its Affiliates under this Section 7.5 are in addition to other rights and remedies (including other rights of setoff) that Lender or its Affiliates may have. Lender agrees to notify Borrower promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

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SECTION 8. MISCELLANEOUS
8.1.GOVERNING LAW. THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL RELATED AGREEMENTS AND DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEBRASKA. THE PROVISIONS OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS AND ALL OTHER AGREEMENTS AND DOCUMENTS REFERRED TO HEREIN ARE TO BE DEEMED SEVERABLE, AND THE INVALIDITY OR UNENFORCEABILITY OF ANY PROVISION SHALL NOT AFFECT OR IMPAIR THE REMAINING PROVISIONS WHICH SHALL CONTINUE IN FULL FORCE AND EFFECT.

8.2.Integrated Agreement. The Notes, the Security Agreement, the UCC-1 Financing Statement, the Guaranty Agreement, the Mortgages, the UCC-1 Fixture Filings, the Environmental Indemnity Agreement, the Royalty / Management Subordination Agreement and the other Loan Documents, all related agreements and this Agreement shall be construed as integrated and complementary of each other and as augmenting and not restricting Lender’s rights and remedies. If, after applying the foregoing, an inconsistency still exists, the provisions of this Agreement shall constitute an amendment thereto and shall control.

8.3.Waiver and Indemnity.

(a)No omission or delay by Lender in exercising any right or power under this Agreement or any related agreements and documents will impair such right or power or be construed to be a waiver of any default, or Event of Default or an acquiescence therein, and any single or partial exercise of any such right or power will not preclude other or further exercise thereof or the exercise of any other right, and as to Borrower no waiver will be valid unless in writing and signed by Lender and then only to the extent specified.

(b)Borrower shall indemnify Lender and its directors,  officers, employees, agents and Affiliates (each such Person being called an “lndemnitee”) against, and hold each lndemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including the reasonable fees, charges and disbursements of any counsel for any lndemnitee) incurred by any lndemnitee  or asserted against any lndemnitee by any third party arising out of, in connection with or as a result  of (i) the execution or delivery  of this Agreement,  any other Loan Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) the Loans or the use or proposed use of the proceeds therefrom or (iii) any actual or prospective claim, litigation, investigation or proceeding  relating to any of the foregoing, whether based on contract, tort or any other theory, and regardless of whether any lndemnitee is a party thereto; provided,  that such indemnity shall not, as to any lndemnitee, be  available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or willful misconduct of such lndemnitee.

(c)To the fullest extent permitted by applicable law, Borrower shall not assert, and hereby waives, any claim against any lndemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,  any other Loan Document  or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, the Loans or the use of the proceeds thereof. No lndemnitee referred to in paragraph (b) above shall be liable for any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby.

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(d)The agreements in this Section 8.3 shall survive the payment, satisfaction or discharge in full of all the Obligations.

8.4.Time. Except as otherwise set forth in this Agreement, whenever Borrower shall be required to make any payment, or perform any act, on a day which is not a Business Day, such payment may be made, or such act may be performed, on the next succeeding Business Day. Time is of the essence in Borrower’s performance under all provisions of this Agreement and all related agreements and documents.

8.5.Expenses of Lender. Borrower shall pay all reasonable expenses incurred by Lender on demand (including, without limitation, search costs, audit fees, inspection fees, appraisal fees and the reasonable fees and expenses of legal counsel for Lender) relating to this Agreement, all related agreements and documents (including, without limitation, expenses incurred in the analysis, negotiation, preparation, closing, administration and enforcement of this Agreement and the other Loan Documents), the Loans and the Collateral. In the event of any Event of Default or Unmatured Event of Default which requires action by Lender in accordance with the terms of the Loan Documents, Borrower shall pay all reasonable expenses incurred by Lender on demand relating to the enforcement, protection and defense of the rights of Lender in and to the Collateral or otherwise hereunder. Additionally, Borrower shall pay all reasonable expenses relating to extensions, amendments, modifications, waivers or consents pursuant to the provisions hereof, or any related agreements and documents or relating to agreements with other creditors (including in connection with a Transfer or Participation), or termination of this Agreement. The fees, expenses and other costs set forth in this Section 8.5 are collectively referred to as the “Expenses.”  Any Expenses not paid within thirty (30) days following demand by Lender shall bear interest at the Default Rate.

8.6.Confidentiality. Borrower and Lender agree to maintain the confidentiality of this Agreement, the other Loan Documents and any information exchanged in connection with this Agreement and not to disclose the contents hereof or provide a copy hereof to any third party, except (a) as required by law or regulation (including, without limitation, the regulations of the Securities and Exchange Commission) or otherwise upon the advice of counsel, (b) to accountants, lawyers, financial advisers and other consultants or advisers of the parties who are under a duty of confidentiality or loyalty to the disclosing party, (c) to any  transferee  or participant (or potential transferee or participant) of Lender’s interests herein or any rating agencies, guarantors or insurers, (d) to Affiliates of Lender, (e) in connection with any dispute or litigation relating to this Agreement, the other Loan Documents or the relationship between Borrower and Lender and (f) in connection with any recording or filing for collateral security purposes.

8.7.Notices.

(a)Any notices, consents or other communications required or permitted by this Agreement shall be in writing and shall be deemed given if delivered in person or if sent by email (with confirmation of receipt), facsimile (with confirmation of receipt) or by nationally recognized overnight courier, or via first class, certified or registered mail, postage prepaid, to the address of such party set forth below, unless such address is changed by written notice hereunder.
Address for notices to Borrower: 
Dakota Dry Bean, Inc.
3301 30th Ave. S., Suite 103
Grand Forks, North Dakota 58201 
Attn: Michael Wainscott
E-mail: mwainscott@bensonhillbio.com
 Fax: (314) 735-2551

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With a copy to:

Benson Hill Biosystems, Inc.
1100 Corporate Square Drive, Suite 150 
St. Louis, Missouri 63132
Attn: Michael Wainscott
E-mail: mwainscott@bensonhillbio.com
Fax: (314) 735-2551

With a copy to:

K&L Gates LLP
70 West Madison Street, Suite 3100
Chicago, Illinois 60602-4207
Attn: Donald Bingham
E-mail: donald.bingham@klgates.com
Fax: (312) 827-8011

Address for notices to Lender:

First National Bank of Omaha 1620 Dodge Street, Stop 1057
Omaha, Nebraska 68197 
Attn: Kenneth Feaster
E-mail: kfeaster@fnni.com
Fax: (402) 602-3518

With a copy to:

McGrath North Mullin & Kratz, PC LLO
First National Tower, Suite 3700
1601 Dodge Street
Omaha, Nebraska 68102 
Attn: Jason Benson
E-mail: jbenson@mcgrathnorth.com 
Fax: (402) 952-6864

(b)Any notice sent by Lender or Borrower by any of the above methods shall be deemed to be given when so received.

(c)Lender shall be fully entitled to rely upon any e-mail or facsimile transmission or other writing purported to be sent by any Authorized Representative (whether requesting an Advance or otherwise) as being genuine and authorized.

8.8.Headings. The headings of any paragraph or section of this Agreement are for convenience only and shall not be used to interpret any provision of this Agreement.

8.9.Survival. All representations, warranties and covenants made by Borrower herein, in any Loan Document or in any agreement referred to herein or on any certificate, document or other instrument delivered by it or on its behalf under this Agreement, shall be considered to have been relied upon by Lender, and shall survive the delivery to Lender of any Loan Document, regardless of any investigation made by Lender or on its behalf. All statements in any such certificate or other instrument prepared and/or delivered for the benefit of Lender shall constitute representations and warranties by Borrower hereunder. Except as otherwise expressly provided herein, all covenants made by Borrower 
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hereunder, in any Loan Document or under any other agreement or instrument shall be deemed continuing until all Obligations are satisfied in full.

8.10.Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of each of the parties. Except in accordance with Section 8.20 hereof, neither party may transfer, assign or delegate any of their duties, rights or obligations hereunder without the prior written consent of the other party.

8.11.Duplicate Originals and Counterparts. Two or more duplicate originals of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one and the same instrument. This Agreement may be executed in counterparts, all of which counterparts taken together shall constitute one completed fully executed document.

8.12.Amendment or Modification. No amendment or modification hereof or of any agreement referred to herein shall be binding or enforceable unless in writing and signed by Borrower and Lender.

8.13.Signatories. Each individual signatory hereto represents and warrants that such signatory is duly authorized to execute this Agreement on behalf of such signatory’s principal and that such signatory executes the Agreement in such capacity and not as a party.

8.14.Third Parties. No rights are intended to be created hereunder, or under any related agreements or documents for the benefit of any third party donee, creditor or incidental beneficiary of Borrower. Nothing contained in this Agreement shall be construed as a delegation to Lender of Borrower’s duty of performance, including, without limitation, Borrower’s duties under any account or contract with any other Person.

8.15.Waivers.

(a)Borrower hereby irrevocably, unconditionally and fully subordinates in favor of Lender and waives any and all rights it may have at any time (whether arising, directly or indirectly, by operation of law or contract) to assert or receive payment on any claim against it, on account of payments made under this Agreement, including without limitation, any and all rights of subrogation, reimbursement, exoneration, contribution or indemnity. Borrower waives any event or circumstances which might constitute a legal or equitable defense of, or discharge of, Borrower other than payment in full of the Obligations. Furthermore, Borrower agrees that if any payment on the Obligations is recovered from or repaid by Lender in whole or in part in any bankruptcy, insolvency or similar proceeding instituted by or against Borrower, Borrower shall be obligated to the same extent as if the recovered or repaid payment had never been originally made on such Obligation.

(b)Borrower hereby consents and agrees that Lender, at any time or from time to time in its discretion, may: (i) settle, compromise or grant releases for liabilities of any Person or Persons liable for any Obligations, (ii) exchange, release, surrender, sell, subordinate or compromise any Collateral to the extent allowed under federal, state or local law, including without limitation administrative pronouncements, of any party now or hereafter securing any of the Obligations and (iii) following and during the continuation of an Event of Default, apply any and all payments received at any time against the Obligations in any order as Lender may determine; all of the foregoing in such manner and upon such terms as Lender may see fit, without notice to or further consent from Borrower who hereby agrees and shall remain bound upon this Agreement notwithstanding any such action on Lender’s part.

(c)The liability of Borrower hereunder is absolute and unconditional and shall not be reduced, impaired or affected in any way by reason of (i) any failure to obtain, retain or preserve, or the lack of prior enforcement of, any rights against any Person or Persons or in any Property, (ii) the invalidity or unenforceability of any Obligations or rights in any Collateral, (iii) any delay in making demand upon any other Person or Persons or any delay in enforcing, or any failure to enforce, any 
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rights against any other Person or Persons or in any Collateral even if such rights are thereby lost, (iv) any failure, neglect or omission to obtain, perfect or retain any Lien upon, protect, exercise rights against, or realize on, any Property of Borrower, or any other party securing the Obligations, (v) the existence or non-existence of any defenses which may be available to any other Person or Persons with respect to the Obligations or (vi) the commencement of any bankruptcy, reorganization, liquidation, dissolution or receivership proceeding or case filed by or against Borrower.

8.16.CONSENT TO JURISDICTION. BORROWER AND LENDER HEREBY IRREVOCABLY CONSENT TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN DOUGLAS COUNTY, NEBRASKA IN ANY AND ALL ACTIONS AND PROCEEDINGS WHETHER ARISING HEREUNDER OR UNDER ANY OTHER AGREEMENT OR UNDERTAKING. BORROWER WAIVES ANY OBJECTION TO IMPROPER VENUE AND FORUM NON-CONVENIENS TO PROCEEDINGS IN ANY SUCH COURT AND ALL RIGHTS TO TRANSFER FOR ANY REASON. BORROWER IRREVOCABLY AGREES TO SERVICE OF PROCESS BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED TO THE ADDRESS OF THE APPROPRIATE PARTY SET FORTH HEREIN.

8.17.WAIVER OF JURY TRIAL. BORROWER AND LENDER HEREBY WAIVE ANY AND ALL RIGHTS THEY MAY HAVE TO A JURY TRIAL IN CONNECTION WITH ANY LITIGATION COMMENCED BY OR AGAINST LENDER WITH RESPECT TO RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO OR UNDER THE LOAN DOCUMENTS, WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

8.18.Discharge of Taxes, Borrower's Obligations, Etc. Lender, in its commercially reasonable discretion, shall have the right at any time, and from time to time, with prior notice to Borrower, if Borrower fails to do so fifteen (15) Business Days after being requested in writing to do so by Lender, to: (a) pay for the performance of any of Borrower’s obligations hereunder and (b) discharge taxes or Liens, at any time levied or placed on any of Borrower’s Property in violation of this Agreement unless Borrower is in good faith with due diligence by appropriate proceedings contesting such taxes or Liens. Expenses and advances shall be deemed Advances hereunder and shall bear interest at the Default Rate from Borrower’s notice thereof until reimbursed to Lender. Such payments and advances made by Lender shall not be construed as a waiver by Lender of an Event of Default under this Agreement.

8.19.Injunctive Relief. The parties acknowledge and agree that, in the event of a breach or threatened breach of any party’s obligations hereunder, they may have no adequate remedy in money damages and, accordingly, shall be entitled to an injunction (including without limitation, a temporary restraining order, preliminary injunction, writ of attachment, or order compelling an audit) against such breach or threatened breach.  However, no specification in this Agreement of a specific legal or equitable remedy shall be construed as a waiver or prohibition against any other legal or equitable remedies in the event of a breach or threatened breach of any provision of this Agreement.

8.20.Transfers and Participations.

(a)A material inducement to Lender’s willingness to complete the transactions contemplated by this Agreement and the other Loan Documents is Borrower’s agreement that Lender may, at any time, complete a Transfer or Participation with respect to the any Note or any of the other Loan Documents; provided, however, that if no Event of Default has occurred and is continuing, no Transfer shall be completed without the prior written consent of Borrower, such consent not to be unreasonably withheld.

(b)Borrower agrees to cooperate in good faith with Lender in connection with any such Transfer or Participation of any Note or any of the other Loan Documents, including, without limitation, providing such documents, financial and other data, and other information and materials which would 
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typically be required with respect to Borrower by a transferee or participant involved with respect to such Transfer or Participation (collectively, the “Disclosures”).

(c)Borrower consents to Lender providing the Disclosures, as well as any other information which Lender may now have or hereafter acquire with respect to Borrower, to each transferee or participant involved with respect to each Transfer or Participation, as applicable.

8.21.USA Patriot Act. IMPORTANT NOTICE: to help the government fight the funding of terrorism and money laundering activities, the USA Patriot Act requires all banks to obtain and verify the identity of each person or business that opens an account.  When Borrower opens an account, Lender will ask Borrower for information that will allow Lender to properly identify Borrower and Lender will verify that information.  If Lender cannot properly verify the identity of Borrower within thirty (30) calendar days, Lender reserves the right to declare the Obligations immediately due and payable.

8.22.Keepwell. Each Obliger that is a Qualified ECP when its Guaranty Agreement or other obligation with respect to, or grant of a security interest to secure, any Swap Obligation becomes effective hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide funds or other support to each Obliger with respect to such Swap Obligation as may be needed by such Obliger from time to time to honor all of its obligations under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP’s obligations and undertakings under this Section 8.22 voidable under any applicable fraudulent transfer or conveyance act). The obligations and undertakings of each Qualified ECP under this Section 8.22 shall remain in full force and effect until payment of all Obligations. Each Obliger intends this Section 8.22 to constitute, and this Section 8.22 shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support or other agreement” for the benefit of, each Obliger for all purposes of the Commodity Exchange Act.

SECTION 9. NOTICE - WRITTEN AGREEMENTS.

This notice is provided pursuant to Nebraska Revised Statutes Section 45-1,112 et. seq. This Agreement is a credit agreement.  A credit agreement must be in writing to be enforceable under Nebraska Law. To protect you and us from any misunderstandings or disappointments, any contract, promise, undertaking  or offer to forebear  repayment  of money or to make any other financial accommodation in connection with this loan of money or grant or extension of credit, or any amendment of, cancellation of, waiver of or substitution for any or all of the terms or provisions of any instrument or document executed in connection with this loan of money or grant or extension of credit, must be in writing to be effective.

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By:  /s/ Michael B. Wainscott
Name: Michael Wainscott
Title:    Chief Financial Officer

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster
Name: Kenneth Feaster
Title:     Vice President
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FIRST AMENDMENT TO CREDIT AGREEMENT

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) is dated this 1st day of April, 2020 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019 (as the same may from time to time be amended, restated, modified or otherwise supplemented, the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this First Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 2.1 of the Credit Agreement is hereby amended by deleting paragraph
(d) in its entirety and substituting the following paragraph (d) in its place:

“(d)   The term of the Revolving Credit Facility shall expire on June 1, 2020.   All Revolving Credit Loans under the Revolving Credit Facility shall be repaid on or before the earliest of (i) June 1, 2020, (ii) termination of the Revolving Credit Facility and (iii) termination of this Agreement (the earliest of such dates, the “Revolving Credit Maturity Date”). After the Revolving Credit Maturity Date, no further Advances under the Revolving Credit Facility shall be available from Lender. The term of the Term Loan Facility (Facility - A) shall expire on April 1, 2024. The Term Loan (Facility - A) under the Term Loan Facility (Facility - A) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - A) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - A)”). After the Term Loan Maturity Date (Facility - A), no Advance under the Term Loan Facility (Facility - A) shall be available from Lender. The term of the Term Loan Facility (Facility - B) shall expire on April 1, 2024. The Term Loan (Facility - B) under the Term Loan Facility (Facility - B) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - B) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - B)”). After the Term Loan Maturity Date (Facility - B), no Advance under the Term Loan Facility (Facility - B) shall be available from Lender. The term of the Term Loan Facility (Facility - Equipment) shall expire on the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date. The Term Loan (Facility - Equipment) under the Term Loan Facility (Facility - Equipment) shall be repaid on or before the earliest of (i) the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date, (ii) termination of the Term Loan Facility (Facility - Equipment) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - Equipment)”). After the Term Loan Maturity Date (Facility - Equipment), no Advance under the Term Loan Facility (Facility - Equipment) shall be available from Lender.”

2.In connection with the execution of this First Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender the following on the date hereof:

(a)A First Amendment to Revolving Credit Note dated of even date herewith between Borrower and Lender (the “First Revolving Credit Note Amendment”), amending that certain Revolving Credit Note dated April 11, 2019 from Borrower to the order of Lender (as the same may from time to time be amended, restated, modified, supplemented, replaced or refinanced, the “Original Revolving Credit Note”). The First Revolving Credit Note Amendment is incorporated herein by reference, made a part hereof and shall be substantially in the form of Exhibit A attached hereto. References to “Revolving Credit Note” in the Credit Agreement are hereby amended so that such term includes the Original Revolving Credit Note, the First Revolving Credit Note Amendment and any amendments, restatements, modifications, supplements, replacements or refinancings of the same.

(b)Such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

3.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this First Amendment.

4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this First Amendment pursuant to Section 8.5 of the Credit Agreement.

6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this First Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

7.This First Amendment shall be binding on the successors and assigns of the parties hereto.

8.This First Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Page Follows]

2

IN WITNESS WHEREOF, the parties have executed this First Amendment as of the day and year first set forth above.
BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Michael Wainscott
Name: Michael Wainscott 
Title: Chief Financial Officer

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster Name: Kenneth Feaster Title: Vice President
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SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”) is dated this 1st day of June, 2020 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019 and First Amendment to Credit Agreement dated April 1, 2020 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Second Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Debt” in its entirety and substituting the following definition in its place:

““Debt” means, whether or not included as indebtedness or liabilities in accordance with GAAP, the following: (a) the obligations of Borrower for borrowed money; (b) the obligations of Borrower evidenced by bonds, debentures, notes or other similar instruments; (c) the obligations of Borrower under conditional sale or other title retention agreements relating to property purchased to the extent of the value of such property; (d) the obligations of Borrower to pay the deferred purchase price of property or services (other than trade accounts payable arising in the ordinary course of business and due within three (3) months of the incurrence thereof); (e) the obligations of Borrower under Capitalized Leases; (f) the obligations of Borrower, contingent or otherwise, to purchase, redeem, retire or otherwise acquire securities or other property which arise out of or in connection with the sale of the same or substantially similar securities or property; (g) the obligations of Borrower to reimburse any other Person in respect of amounts paid under a letter of credit, bankers’ acceptance or similar instrument and, without duplication, the amount available to be drawn under a letter of credit, banker’s acceptance or similar instrument; (h) net Swap Obligations of Borrower; (i) the obligations of any other Person, to the extent such obligations are guaranteed by Borrower; (j) the obligations of any other Person, to the extent such obligations are secured by a Lien on Borrower’s Property (whether or not such obligations have been assumed by Borrower); and (k) the obligations of any other Person, to the extent Borrower is reasonably likely to be liable for such obligations. For the avoidance of doubt, “Debt” shall include any Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act until such time as principal and interest with respect thereto have been forgiven or paid in full.”

2.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “EBITDA” in its entirety and substituting the following definition in its place:

““EBITDA” means, with respect to any date, for the most recently ended four (4) fiscal quarters of Borrower, the sum (without duplication) of Borrower’s: (a) Net Income for such period; plus (b) any amount which, in the determination of Net Income for such period, has been deducted for (i) Interest Expense, (ii) federal, state, local and foreign income tax expense, (iii) depreciation and amortization expense and (iv) any non-recurring non-cash charges, losses or expenses approved by Lender (including any non-cash impairment charges relating to the sale of Borrower’s barley business in 2020, which shall be deemed approved by Lender); plus (c) any Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act which has been forgiven or for which capital has been received by Borrower from Guarantor to repay any such Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act; plus (d) the net proceeds of the sale of Borrower’s barley business in 2020; plus (e) capital received by Borrower from Guarantor in 2020 in the form of Subordinated Debt; minus (f) any amount which, in the determination of Net Income for such period, has been added for (i) any non-cash income or gains and (ii) any extraordinary, unusual or non-recurring income or gains (including any gains from the sale of Borrower’s barley business in 2020); all as determined in accordance with GAAP.”

3.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Funded Debt” in its entirety and substituting the following definition in its place:

““Funded Debt” means, with respect to any date, the sum of Borrower’s: (a) outstanding Debt as of such date; minus (b) Subordinated Debt as of such date.”

4.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Net Worth” in its entirety and substituting the following definition in its place:

““Net Worth” means, with respect to any date, the sum (without duplication) of: (a) the total assets of Borrower as of such date; minus (b) the total liabilities of Borrower as of such date; plus (c) Subordinated Debt as of such date; all as determined in accordance with GAAP. For the avoidance of doubt, “total liabilities” shall include any Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act until such time as principal and interest with respect thereto have been forgiven or paid in full.”

5.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Permitted Debt” in its entirety and substituting the following definition in its place:

““Permitted Debt” means: (a) Obligations owed to Lender; (b) Debt outstanding on the date of this Agreement and set forth on Schedule 1.1(a) hereto; (c) purchase money obligations and obligations under Capitalized Leases owed by Borrower not in excess of $250,000 in the aggregate at any one time outstanding; (d) Subordinated Debt; (e) obligations (contingent or otherwise) under any hedge arrangements permitted under Section 6.12 hereof; (f) Debt consisting of the financing of insurance premiums in the ordinary course of business; (g) Debt in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations (including, in each case, letters of credit issued to provide such bonds, guaranties and similar obligations), in each case provided in the ordinary course of business; (h) Debt arising from overdraft facilities and/or the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business not in excess of $100,000 in the aggregate at any one time outstanding; (i) other unsecured Debt not in excess of $100,000 in the aggregate at any one time outstanding; (j) Paycheck Protection Program loans under the Coronavirus Aid, Relief and Economic Security Act; and (k) any other Debt which has been approved in writing by Lender in Lender’s sole discretion.”

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6.Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions in alphabetical order:

““LIBOR Rate” has the meaning set forth in the Notes, as applicable.”
““LIBOR Triggering Event” has the meaning set forth in Section 2.9(a) hereof.”
““Replacement Index” has the meaning set forth in Section 2.9(a) hereof.”
““Replacement Margin” has the meaning set forth in Section 2.9(b) hereof.”
““Subordinated Debt” means (a) Debt expressly subordinated to the Obligations pursuant to a subordination agreement in form and substance satisfactory to Lender; provided, that at least fifty percent (50%) of the proceeds of such subordinated Debt are used to immediately repay any Debt owing under the Term Loan Facilities and (b) Debt owing from Borrower to Guarantor expressly subordinated to the Obligations pursuant to a subordination agreement in form and substance satisfactory to Lender.”

7.Section 2.1 of the Credit Agreement is hereby amended by deleting paragraph (d) in its entirety and substituting the following paragraph (d) in its place:

“(d) The term of the Revolving Credit Facility shall expire on July 1, 2021. All Revolving Credit Loans under the Revolving Credit Facility shall be repaid on or before the earliest of (i) July 1, 2021, (ii) termination of the Revolving Credit Facility and (iii) termination of this Agreement (the earliest of such dates, the “Revolving Credit Maturity Date”). After the Revolving Credit Maturity Date, no further Advances under the Revolving Credit Facility shall be available from Lender. The term of the Term Loan Facility (Facility - A) shall expire on April 1, 2024. The Term Loan (Facility - A) under the Term Loan Facility (Facility - A) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - A) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - A)”). After the Term Loan Maturity Date (Facility - A), no Advance under the Term Loan Facility (Facility - A) shall be available from Lender. The term of the Term Loan Facility (Facility - B) shall expire on April 1, 2024. The Term Loan (Facility - B) under the Term Loan Facility (Facility - B) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - B) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - B)”). After the Term Loan Maturity Date (Facility - B), no Advance under the Term Loan Facility (Facility - B) shall be available from Lender. The term of the Term Loan Facility (Facility - Equipment) shall expire on the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date. The Term Loan (Facility - Equipment) under the Term Loan Facility (Facility - Equipment) shall be repaid on or before the earliest of (i) the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date, (ii) termination of the Term Loan Facility (Facility - Equipment) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - Equipment)”). After the Term Loan Maturity Date (Facility - Equipment), no Advance under the Term Loan Facility (Facility - Equipment) shall be available from Lender.”

8.Section 2 of the Credit Agreement is hereby amended by adding the following Section 2.9 in numerical order:

“2.9.    LIBOR Rate Replacement.

(a)Notwithstanding anything to the contrary herein or in any other Loan Document, if Lender shall have determined in good faith, in its sole but reasonable discretion, that (i) the LIBOR Rate has or will become unavailable or unreliable during the term of this Agreement, (ii) adequate and reasonable means do not exist or will not exist for ascertaining the LIBOR Rate during the term of this Agreement, (iii) the relevant administrator of the LIBOR Rate or a governmental authority 
3

having or purporting to have jurisdiction over Lender has made a public statement announcing that the LIBOR Rate shall no longer be made available or used for determining interest rates for loans in United States dollars or (iv) comparable bank-originated commercial loans in the United States are being executed or amended, as applicable, to incorporate or adopt a new interest rate to replace the LIBOR Rate for determining interest rates for loans in United States dollars (each, a “LIBOR Triggering Event”), then Lender may amend the Loan Documents to replace the LIBOR Rate with an alternate rate of interest that gives due consideration to the then-prevailing market convention for determining a rate of interest for comparable bank- originated commercial loans in the United States at such time (the “Replacement Index”); provided that Lender agrees that the Replacement Index will be implemented in a manner consistent with similarly-situated borrowers of Lender.

(b)In connection with the implementation of the Replacement Index, Lender shall have the right, in its sole but reasonable discretion, to adjust in good faith the percentage points to be added to the Replacement Index (the “Replacement Margin”). Lender agrees to select a Replacement Margin that, when added to the Replacement Index, approximates the rate of interest otherwise applicable on such Loans prior to Lender implementing a Replacement Index.

(c)In connection with the implementation of the Replacement Index, Lender shall have the right, in its sole but reasonable discretion, to make in good faith any technical, administrative or operational changes (including changes to the timing and frequency of determining rates, making payments of interest and other administrative matters) that Lender in good faith reasonably decides may be appropriate to reflect the adoption and implementation of such Replacement Index and to permit the administration thereof by Lender in a manner Lender in good faith decides is reasonably necessary in connection with the administration of this Agreement and the Loans.

(d)Lender shall promptly notify Borrower of (i) any occurrence of a LIBOR Triggering Event, (ii) the implementation of a Replacement Index and its starting date, (iii) the implementation of a Replacement Margin and its starting date and (iv) the implementation of any changes provided for under Section 2.9(c) hereof. Any determination, decision or election that may be made by Lender pursuant to this Section 2.9 shall be conclusive and binding absent manifest error and may be made by Lender in its sole but reasonable discretion and without consent of Borrower, Guarantor or any other party.

(e)Notwithstanding anything to the contrary herein or in any other Loan Document, Lender shall have the right to amend any Loan Documents in connection with the implementation of the Replacement Index, the Replacement Margin or any changes provided for under Section 2.9(c) hereof and such amendments shall become effective without any further action or consent of Borrower, Guarantor or any other party. Lender shall promptly deliver copies of any such amendments to Borrower.

(f)At Borrower’s request, Lender will provide documentation to Borrower substantiating Lender’s basis for establishing the Replacement Index.”

9.Section 5.9 of the Credit Agreement is hereby amended by deleting paragraphs (a), (b) and (d) in their entirety and substituting the following paragraphs (a), (b) and (d) in their place:

“(a)    Borrower shall maintain Working Capital equal to or more than (i) $200,000 from June 1, 2020 through December 30, 2020, (ii) $400,000 from December 31, 2020
through September 29, 2021, (iii) $600,000 from September 30, 2021 through
December 30, 2021 and (iv) $1,100,000 on and after December 31, 2021, measured as of the last day of each month.”

“(b)    Borrower shall maintain Net Worth equal to or more than $11,000,000, measured as of the last day of each month.”

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“(d) Borrower shall maintain a Funded Debt to EBITDA Ratio equal to or less than (i) 4.00x from the date hereof through June 29, 2020, (ii) 3.50x from June 30, 2020 through December 30, 2020, (iii) 3.00x from December 31, 2020 through June 29, 2021, (iv) 2.50x from June 30, 2021 through September 29, 2021, (v) 4.00x from September 30, 2021 through December 30, 2021, (vi) 3.50x from December 31, 2021 through March 30, 2022 and (vii) 2.00x on and after March 31, 2022, measured as of the last day of each fiscal quarter of Borrower.”

10.The form of Compliance Certificate attached to the Credit Agreement as Exhibit G is hereby amended by deleting such form in its entirety and substituting the form attached hereto as Exhibit A in its place.

11.Lender hereby waives compliance by Borrower with (a) Section 5.9(a) (Working Capital) of the Credit Agreement for the months ended March 31, 2020, April 30, 2020 and May 31, 2020, (b) Section 5.9(b) (Net Worth) of the Credit Agreement for the months ended March 31, 2020, April 30, 2020 and May 31, 2020, (c) Section 5.9(d) (Funded Debt to EBITDA Ratio) of the Credit Agreement for the fiscal quarter of Borrower ended on March 31, 2020 and (d) Section 5.9(e) (Fixed Charge Coverage Ratio) of the Credit Agreement for the fiscal quarter of Borrower ended on March 31, 2020. Notwithstanding the foregoing, nothing in this paragraph shall be (a) construed as a course of dealing to imply Lender will approve a similar waiver in the future nor (b) deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement, except as specifically consented to, waived or amended in this paragraph.

12.Notwithstanding any provision of the Credit Agreement or the Guaranty Agreement to the contrary, until October 1, 2020, Lender shall not measure, and hereby waives compliance with, the financial covenants set forth in (a) Section 5.9(a) (Working Capital) of the Credit Agreement, (b) Section 5.9(b) (Net Worth) of the Credit Agreement, (c) Section 5.9(d) (Funded Debt to EBITDA Ratio) of the Credit Agreement, (d) Section 5.9(e) (Fixed Charge Coverage Ratio) of the Credit Agreement and (e) Section 4.11 of the Guaranty Agreement.

13.In connection with the execution of this Second Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender the following on the date hereof:

(a)A Second Amendment to Revolving Credit Note dated of even date herewith between Borrower and Lender (the “Second Revolving Credit Note Amendment”), amending that certain Revolving Credit Note dated April 11, 2019 from Borrower to the order of Lender and First Amendment to Revolving Credit Note dated April 1, 2020 (as the same may from time to time be amended, restated, modified, supplemented, replaced or refinanced, collectively the “Original Revolving Credit Note”). The Second Revolving Credit Note Amendment is incorporated herein by reference, made a part hereof and shall be substantially in the form of Exhibit B attached hereto. References to “Revolving Credit Note” in the Credit Agreement are hereby amended so that such term includes the Original Revolving Credit Note, the Second Revolving Credit Note Amendment and any amendments, restatements, modifications, supplements, replacements or refinancings of the same.

(b)A non-refundable amendment fee in the amount of $25,000.

(c)Such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

14.Within sixty (60) days after the date hereof, Borrower shall deliver to Lender, each in form and substance satisfactory to Lender, (a) a duly and fully executed promissory note by Borrower to Guarantor evidencing the Debt referred to in clause (b) of the definition of “Subordinated 
5

Debt” and (b) a duly and fully executed subordination agreement with respect to the Debt referred to in clause (b) of the definition of “Subordinated Debt”. Borrower’s failure to comply with this Section 14 shall constitute an Event of Default.

15.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Second Amendment.

16.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

17.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Second Amendment pursuant to Section 8.5 of the Credit Agreement.

18.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Second Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

19.This Second Amendment shall be binding on the successors and assigns of the parties hereto.

20.This Second Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Page Follows]
6

IN WITNESS WHEREOF, the parties have executed this Second Amendment as of the day and year first set forth above.
BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Michael Wainscott
Name: Michael Wainscott 
Title: Chief Financial Officer

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster Name: Kenneth Feaster Title: Vice President
7

THIRD AMENDMENT TO CREDIT AGREEMENT
THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”) is dated this 23rd day of October, 2020 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”).  Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).
RECITALS
WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020 and Second Amendment to Credit Agreement dated June 1, 2020 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and
WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.
NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Third Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1.Schedule 4.15 attached to the Credit Agreement is hereby amended by deleting such schedule in its entirety and substituting the schedule attached hereto as Schedule 4.15 in its place.
2.In connection with the execution of this Third Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender the following on the date hereof:
(a)    A duly and fully executed assignment, subordination, non-disturbance and attornment agreement with respect to that certain Lease Agreement dated October 23, 2020 by and between Borrower and Anchor Ingredients Co., LLC for the facility and other improvements located on certain real property in East Grand Forks, Minnesota, in form and substance satisfactory to Lender.
(b)    Such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.
3.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Third Amendment.
4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Third Amendment pursuant to Section 8.5 of the Credit Agreement.
6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed.  Except for any specific waiver set forth in this Third Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.
7.This Third Amendment shall be binding on the successors and assigns of the parties hereto.
8.This Third Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.
[Signature Pages Follow]
2

IN WITNESS WHEREOF, the parties have executed this Third Amendment as of the day and year first set forth above.
						
		BORROWER:
		
		DAKOTA DRY BEAN INC.
		
		
		By: /s/ Michael B. Wainscott

		Name:  Michael Wainscott

		Title:     Chief Financial Officer

		

		

		LENDER:
		
		FIRST NATIONAL BANK OF OMAHA
		
		
		By: /s/ Kenneth Feaster

		Name:  Kenneth Feaster

		Title:     Vice President

3

FOURTH AMENDMENT TO CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Fourth Amendment”) is dated this 29th day of March, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020 and Third Amendment to Credit Agreement dated October 23, 2020 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Fourth Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition
of “EBITDA” in its entirety and substituting the following definition in its place:

““EBITDA” means, with respect to any date, for the most recently ended four (4) fiscal quarters of Borrower, the sum (without duplication) of Borrower’s: (a) Net Income for such period; plus (b) any amount which, in the determination of Net Income for such period, has been deducted for (i) Interest Expense, (ii) federal, state, local and foreign income tax expense, (iii) depreciation and amortization expense and (iv) any non-recurring non-cash charges, losses or expenses approved by Lender (including any non-cash impairment charges, which shall be deemed approved by Lender); plus (c) any Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act which has been forgiven or for which capital has been received by Borrower from Guarantor to repay any such Paycheck Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act; plus (d) the net proceeds of the sale of Borrower’s barley business in 2020; plus (e) capital received by Borrower from Guarantor in the form of Subordinated Debt; minus (f) any amount which, in the determination of Net Income for such period, has been added for (i) any non-cash income or gains and (ii) any extraordinary, unusual or non-recurring income or gains (including any gains from the sale of Borrower’s barley business in 2020); all as determined in accordance with GAAP.”

2.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition
of “Net Worth” in its entirety and substituting the following definition in its place:

““Net Worth” means, with respect to any date, the sum (without duplication) of: (a) the total assets of Borrower as of such date; minus (b) the total liabilities of Borrower as of such date; plus (c) Subordinated Debt as of such date; plus (d) any non-cash impairment charges; all as determined in accordance with GAAP. For the avoidance of doubt, “total liabilities” shall include any Paycheck 

Protection Program loan under the Coronavirus Aid, Relief and Economic Relief Security Act until such time as principal and interest with respect thereto have been forgiven or paid in full.”

3.In connection with the execution of this Fourth Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender on the date hereof such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

4.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Fourth Amendment.

5.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

6.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Fourth Amendment pursuant to Section 8.5 of the Credit Agreement.

7.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Fourth Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

8.This Fourth Amendment shall be binding on the successors and assigns of the parties hereto.

9.This Fourth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Page Follows]
2

IN WITNESS WHEREOF, the parties have executed this Fourth Amendment as of the day and year first set forth above.
BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp
Name: Matthew Crisp
Title: Chief Executive Officer

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster Name: Kenneth Feaster Title: Vice President
3

FIFTH AMENDMENT TO CREDIT AGREEMENT

THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Fifth Amendment”) is dated this 29th day of April, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020, Third Amendment to Credit Agreement dated October 23, 2020 and Fourth Amendment to Credit Agreement dated March 29, 2021 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Fifth Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 5.1 of the Credit Agreement is hereby amended by deleting paragraphs (a) and (b) in their entirety and substituting the following paragraphs (a) and (b) in their place:

“(a)    as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Borrower, (i) financial statements of Borrower for such fiscal year which present fairly Borrower’s financial condition, including balance sheets as of the end of such fiscal year and statements of earnings, statements of shareholders’ equity (deficit) and statements of cash flows for such fiscal year, prepared in accordance with GAAP, and audited by an independent certified public accounting firm of recognized standing selected by Borrower and reasonably satisfactory to Lender, together with an unqualified opinion on the financial statements from such accounting firm; and (ii) a calculation of Excess Cash Flow for such fiscal year of Borrower; provided, that notwithstanding the foregoing, with respect to the fiscal year ended on December 31, 2020, the items required by this paragraph (a) shall be delivered to Lender on or before May 30, 2021;”

“(b)    as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Guarantor, financial statements of Guarantor for such fiscal year which present fairly Guarantor’s financial condition, including balance sheets as of the end of such fiscal year and statements of income and statements of cash flows for such fiscal year, all on a consolidated basis and accompanied by consolidating schedules, prepared in accordance with GAAP, and audited by an independent certified public accounting firm of recognized standing selected by Guarantor and reasonably satisfactory to Lender, together with an unqualified opinion on the financial statements from such accounting firm; provided, that notwithstanding the foregoing, with respect to the fiscal year 

ended on December 31, 2020, the items required by this paragraph (b) shall be delivered to Lender on or before May 30, 2021;”

2.In connection with the execution of this Fifth Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender on the date hereof such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

3.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Fifth Amendment.

4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Fifth Amendment pursuant to Section 8.5 of the Credit Agreement.

6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Fifth Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

7.This Fifth Amendment shall be binding on the successors and assigns of the parties hereto.

8.This Fifth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Page Follows]
2

IN WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp
Name: Matthew Crisp
Title: Chief Executive Officer 

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster Name: Kenneth Feaster Title: Vice President
3

SIXTH AMENDMENT TO CREDIT AGREEMENT

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Sixth Amendment”) is dated this 30th day of May, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020, Third Amendment to Credit Agreement dated October 23, 2020, Fourth Amendment to Credit Agreement dated March 23, 2021 and Fifth Amendment to Credit Agreement dated April 29, 2021 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Sixth Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 5.1 of the Credit Agreement is hereby amended by deleting paragraph (a) in its entirety and substituting the following paragraph (a) in its place:

“(a)    as soon as available, but in any event within one hundred twenty (120) days after the end of each fiscal year of Borrower, (i) financial statements of Borrower for such fiscal year which present fairly Borrower’s financial condition, including balance sheets as of the end of such fiscal year and statements of earnings, statements of shareholders’ equity (deficit) and statements of cash flows for such fiscal year, prepared in accordance with GAAP, and audited by an independent certified public accounting firm of recognized standing selected by Borrower and reasonably satisfactory to Lender, together with an unqualified opinion on the financial statements from such accounting firm; and (ii) a calculation of Excess Cash Flow for such fiscal year of Borrower; provided, that notwithstanding the foregoing, with respect to the fiscal year ended on December 31, 2020, the items required by this paragraph (a) shall be delivered to Lender on or before June 30, 2021;”

2.In connection with the execution of this Sixth Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender on the date hereof such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

3.Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Sixth Amendment.
4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.
5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Sixth Amendment pursuant to Section 8.5 of the Credit Agreement.
6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Sixth Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.
7.This Sixth Amendment shall be binding on the successors and assigns of the parties hereto.
8.This Sixth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.
[Signature Pages Follow]
2

IN WITNESS WHEREOF, the parties hereto have executed this Sixth Amendment as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp
Name: Matthew Crisp
Title: Chief Executive Officer LENDER:
FIRST NATIONAL BANK OF OMAHA

By: /s/ Bradley J. Brummund
Name: Bradley J. Brummund 
Title: Senior Vice President
3

SEVENTH AMENDMENT TO CREDIT AGREEMENT

THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT (this “Seventh Amendment”) is dated this 1st day of July, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020, Third Amendment to Credit Agreement dated October 23, 2020, Fourth Amendment to Credit Agreement dated March 23, 2021, Fifth Amendment to Credit Agreement dated April 29, 2021 and Sixth Amendment to Credit Agreement dated May 30, 2021 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Seventh Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 2.1 of the Credit Agreement is hereby amended by deleting paragraph
(d) in its entirety and substituting the following paragraph (d) in its place:

“(d)    The term of the Revolving Credit Facility shall expire on September 1, 2021. All Revolving Credit Loans under the Revolving Credit Facility shall be repaid on or before the earliest of (i) September 1, 2021, (ii) termination of the Revolving Credit Facility and (iii) termination of this Agreement (the earliest of such dates, the “Revolving Credit Maturity Date”). After the Revolving Credit Maturity Date, no further Advances under the Revolving Credit Facility shall be available from Lender. The term of the Term Loan Facility (Facility - A) shall expire on April 1, 2024. The Term Loan (Facility - A) under the Term Loan Facility (Facility - A) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - A) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - A)”). After the Term Loan Maturity Date (Facility - A), no Advance under the Term Loan Facility (Facility - A) shall be available from Lender. The term of the Term Loan Facility (Facility - B) shall expire on April 1, 2024. The Term Loan (Facility - B) under the Term Loan Facility (Facility - B) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - B) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - B)”).   After the Term Loan Maturity Date (Facility - B), no Advance under the Term Loan Facility (Facility - B) shall be available from Lender. The term of the Term Loan Facility (Facility - Equipment) shall expire on the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date. The Term Loan (Facility - Equipment) under the Term Loan Facility (Facility - Equipment) shall be repaid on or before the earliest of (i) the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date, (ii) termination of the Term Loan Facility (Facility - Equipment) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - Equipment)”). After the Term Loan Maturity Date (Facility - Equipment), no Advance under the Term Loan Facility (Facility - Equipment) shall be available from Lender.”

2.In connection with the execution of this Seventh Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender the following on the date hereof:

(a)A Third Amendment to Revolving Credit Note dated of even date herewith between Borrower and Lender (the “Third Revolving Credit Note Amendment”), amending that certain Revolving Credit Note dated April 11, 2019 from Borrower to the order of Lender, First Amendment to Revolving Credit Note dated April 1, 2020 and Second Amendment to Revolving Credit Note dated June 1, 2020 (as the same may from time to time be amended, restated, modified, supplemented, replaced or refinanced, collectively the “Original Revolving Credit Note”). The Third Revolving Credit Note Amendment is incorporated herein by reference, made a part hereof and shall be substantially in the form of Exhibit A attached hereto. References to “Revolving Credit Note” in the Credit Agreement are hereby amended so that such term includes the Original Revolving Credit Note, the Third Revolving Credit Note Amendment and any amendments, restatements, modifications, supplements, replacements or refinancings of the same.

3.Such resolutions, certificates, written opinions of Borrower’s independent counsel Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Seventh Amendment.

4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Seventh Amendment pursuant to Section 8.5 of the Credit Agreement.

6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Seventh Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

7.This Seventh Amendment shall be binding on the successors and assigns of the parties hereto.

8.This Seventh Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Pages Follow]
2

IN WITNESS WHEREOF, the parties hereto have executed this Seventh Amendment as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp 
Name: Matthew Crisp
Title: Chief Executive Officer LENDER:
FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster Name: Kenneth Feaster Title: Vice President
3

EIGHTH AMENDMENT TO CREDIT AGREEMENT

THIS EIGHTH AMENDMENT TO CREDIT AGREEMENT (this “Eighth Amendment”) is dated this 1st day of September, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS
WHEREAS, Borrower and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020, Third Amendment to Credit Agreement dated October 23, 2020, Fourth Amendment to Credit Agreement dated March 23, 2021, Fifth Amendment to Credit Agreement dated April 29, 2021, Sixth Amendment to Credit Agreement dated May 30, 2021 and Seventh Amendment to Credit Agreement dated July 1, 2021 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Eighth Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT
1.Section 2.1 of the Credit Agreement is hereby amended by deleting paragraph (d) in its entirety and substituting the following paragraph (d) in its place:

“(d)    The term of the Revolving Credit Facility shall expire on November 1, 2021. All Revolving Credit Loans under the Revolving Credit Facility shall be repaid on or before the earliest of (i) November 1, 2021, (ii) termination of the Revolving Credit Facility and (iii) termination of this Agreement (the earliest of such dates, the “Revolving Credit Maturity Date”). After the Revolving Credit Maturity Date, no further Advances under the Revolving Credit Facility shall be available from Lender. The term of the Term Loan Facility (Facility - A) shall expire on April 1, 2024. The Term Loan (Facility - A) under the Term Loan Facility (Facility - A) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - A) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - A)”). After the Term Loan Maturity Date (Facility - A), no Advance under the Term Loan Facility (Facility - A) shall be available from Lender. The term of the Term Loan Facility (Facility - B) shall expire on April 1, 2024. The Term Loan (Facility - B) under the Term Loan Facility (Facility - B) shall be repaid on or before the earliest of (i) April 1, 2024, (ii) termination of the Term Loan Facility (Facility - B) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - B)”). After the Term Loan Maturity Date (Facility - B), no Advance under the Term Loan Facility (Facility - B) shall be available from Lender. The term of the Term Loan Facility (Facility - Equipment) shall expire on the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date. The Term Loan (Facility - Equipment) under the Term Loan Facility (Facility - Equipment) shall be repaid on or before the earliest of (i) the January 1, April 1, July 1 or October 1 which first precedes the date that is five (5) years after the Second Closing Date, (ii) termination of the Term Loan Facility (Facility - Equipment) and (iii) termination of this Agreement (the earliest of such dates, the “Term Loan Maturity Date (Facility - Equipment)”). After the Term Loan Maturity Date 

(Facility - Equipment), no Advance under the Term Loan Facility (Facility - Equipment) shall be available from Lender.”

2.In connection with the execution of this Eighth Amendment, and as a condition precedent hereto, Borrower shall execute and / or deliver to Lender the following on the date hereof:

(a)A Fourth Amendment to Revolving Credit Note dated of even date herewith between Borrower and Lender (the “Fourth Revolving Credit Note Amendment”), amending that certain Revolving Credit Note dated April 11, 2019 from Borrower to the order of Lender, First Amendment to Revolving Credit Note dated April 1, 2020, Second Amendment to Revolving Credit Note dated June 1, 2020 and Third Amendment to Revolving Credit Note dated July 1, 2021 (as the same may from time to time be amended, restated, modified, supplemented, replaced or refinanced, collectively the “Original Revolving Credit Note”). The Fourth Revolving Credit Note Amendment is incorporated herein by reference, made a part hereof and shall be substantially in the form of Exhibit A attached hereto. References to “Revolving Credit Note” in the Credit Agreement are hereby amended so that such term includes the Original Revolving Credit Note, the Fourth Revolving Credit Note Amendment and any amendments, restatements, modifications, supplements, replacements or refinancings of the same.

(b)Such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

3.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Eighth Amendment.

4.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

5.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Eighth Amendment pursuant to Section 8.5 of the Credit Agreement.

6.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Eighth Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

7.This Eighth Amendment shall be binding on the successors and assigns of the parties hereto.

8.This Eighth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have executed this Eighth Amendment as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp
Name: Matthew Crisp
Title: Chief Executive Officer LENDER:
FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster
Name: Kenneth Feaster 
Title: Vice President
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NINTH AMENDMENT TO CREDIT AGREEMENT
THIS NINTH AMENDMENT TO CREDIT AGREEMENT (this “Ninth Amendment”) is dated this 29th day of September, 2021 by and among DAKOTA DRY BEAN INC., a North Dakota corporation (together with its successors and assigns, the “Borrower”), and FIRST NATIONAL BANK OF OMAHA, a national banking association (together with its successors and assigns, the “Lender”). Capitalized terms used herein and not otherwise defined have the meanings ascribed to them in the Credit Agreement (defined below).

RECITALS

WHEREAS, Borrower  and Lender are parties to that certain Credit Agreement dated April 11, 2019, First Amendment to Credit Agreement dated April 1, 2020, Second Amendment to Credit Agreement dated June 1, 2020, Third Amendment to Credit Agreement dated October 23, 2020, Fourth Amendment to Credit Agreement dated March 23, 2021, Fifth Amendment to Credit Agreement dated April 29, 2021, Sixth Amendment to Credit Agreement dated May 30, 2021, Seventh Amendment to Credit Agreement dated July 1, 2021 and Eighth Amendment to Credit Agreement dated September 1, 2021 (as the same may from time to time be amended, restated, modified or otherwise supplemented, collectively the “Credit Agreement”), pursuant to which Lender has agreed to make loans to Borrower; and

WHEREAS, Borrower and Lender desire to amend and modify certain terms and conditions of the Credit Agreement.

NOW, THEREFORE, for and in consideration of the Recitals set forth above, which are incorporated into this Ninth Amendment by this reference, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

1.Section 1.1 of the Credit Agreement is hereby amended by deleting the definition of “Guarantor” in its entirety and substituting the following definition in its place:
“Guarantor” means Benson Hill Holdings, Inc., a Delaware corporation f/k/a Benson Hill, Inc., and its successors and assigns.”

2.Section 1.1 of the Credit Agreement is hereby amended by adding the following definition in alphabetical order:
“Benson Hill Parent” means  Benson Hill, Inc., a Delaware corporation f/k/a Star Peak Corp 11, and its successors and assigns.”

3.Section 6.6 of the Credit Agreement is hereby amended by deleting Section 6.6 in its entirety and substituting the following Section 6.6 in its place:

“6.6    Change of Control.    No Change of Control shall occur with respect to Borrower.  For the purposes of this Section 6.6, a “Change of Control” shall occur if:

(a)any person, entity or “group” (within the meanings of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), acquires, directly or indirectly, “beneficial ownership” (as 

described in Ruge Act) of more than 50% of the outstanding equity interests of Benson Hill Parent entitled to vote for members  of the Governing Body of Benson Hill Parent or the power to direct or cause the direction of the management or policies of Benson Hill Parent;

(b)Benson Hill Parent ceases to be the "beneficial owner” (as described in Rules 13d-3 and 13d-5 under the Exchange Act) of 100% of the outstanding equity interests of Guarantor entitled to vote for members of the Governing Body of Guarantor or to possess the power to direct or cause the direction of the management or policies of Guarantor;

(c)Guarantor ceases to be the “beneficial owner” (as described in Rules 13d-3 and 13d-5 under the Exchange Act) of 100°/o of the outstanding equity interests of DOB Holdings entitled to vote for members of the Governing Body of DDB Holdings or to possess the power to direct or cause the direction of the management or policies of DOB Holdings; or

(d)DOB Holdings ceases to be the “beneficial owner” (as described in Rules 13d-3 and 13d-5 under the Exchange Act) of 100% of the outstanding equity interests of Borrower entitled to vote for members of the Governing Body of Borrower or to possess the power to direct or cause the direction of the management or policies of Borrower.”

4.In connection with the execution of this Ninth Amendment, and as a condition precedent hereto, Borrower shall execute and I or deliver to Lender the following on the date hereof such resolutions, certificates, written opinions of Borrower’s independent counsel and other instruments, documents, agreements, information and reports as may be requested by Lender, in form and substance satisfactory to Lender.

5.Borrower hereby represents and warrants that no Event of Default or Unmatured Event of Default has occurred and continues to exist under the Credit Agreement and the other Loan Documents and that all representations and warranties in the Credit Agreement and the other Loan Documents are reaffirmed to be true and correct as of the date hereof, which representations and warranties shall survive execution of this Ninth Amendment.

6.Borrower has previously delivered to Lender all of the relevant organizational and governing documents and agreements of Borrower and all such documents and agreements remain in full force and effect and have not been amended or modified since they were delivered to Lender.

7.Borrower shall be responsible for paying all Expenses incurred by Lender in connection with this Ninth Amendment pursuant to Section 8.5 of the Credit Agreement.

8.Except as specifically amended herein, the Credit Agreement shall remain in full force and effect as originally executed. Except for any specific waiver set forth in this Ninth Amendment, nothing herein shall be deemed to be a consent to a waiver or amendment of any covenant or agreement contained in the Credit Agreement or the other Loan Documents and all such other covenants and agreements contained in the Credit Agreement and the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect in accordance with their respective terms.

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9.This Ninth Amendment shall be binding on the successors and assigns of the parties hereto.

10.This Ninth Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute but one and the same agreement.

[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have executed this Ninth Amendment as of the day and year first set forth above.

BORROWER:

DAKOTA DRY BEAN INC.

By: /s/ Matthew Crisp
Name: Matthew Crisp
Title: Chief Executive Officer

LENDER:

FIRST NATIONAL BANK OF OMAHA

By: /s/ Kenneth Feaster
Name: Kenneth Feaster
Title: Vice President
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