Document:

Lease between Continental Hastings LLC and PW Poly Corp

 EXHIBIT 10.8 
  
 LEASE 
  
 between 
  
 CONTINENTAL HASTINGS LLC, 
 a Minnesota limited liability company

  
 as LANDLORD 
  
 and 
  
 PW POLY CORP. 
 a Minnesota corporation 
  
 as TENANT

  

											
	 	  	 	  	Premises:    	  	 	  	 	  	 
	 	  	 	  	 	  	Hastings, Nebraska	  	 	  	 

  

 LEASE 
  
 THIS LEASE is made and entered into this 1st day of April, 2004, between Continental Hastings LLC, a Minnesota limited liability company (“Landlord”), and PW
POLY CORP., a Minnesota corporation (“Tenant”). 
  
 WITNESSETH: 
  
 In consideration of the rents reserved and the
covenants and conditions set forth herein, Landlord and Tenant agree as follows: 
  
 I. SUMMARY OF FUNDAMENTAL LEASE TERMS. 
  

	A.	Parties. 

  

			
	 Landlord:
	  	Continental Hastings LLC
	 Tenant:
	  	PW Poly Corp.

  

	B.	Premises (Paragraph 1). 

  
 Land, improvements and office, warehouse and manufacturing facilities located in Hastings, NE, on the real property described in Exhibit A
attached. 
  

	C.	Term (Paragraph 4). 

  
 Twenty (20) Lease Years. 
  

	D.	Rent (Paragraph 5). 

  
 Basic Rent. $156,000 for the first Lease Year, subject to increases every second year based upon increases in the consumer price index. 
  

	E.	Addresses. 

  

	 	(i)	If to Tenant: 

  
 c/o PW Eagle, Inc. 
 222 South 9th Street

 Suite 2886 
 Minneapolis, MN
55402 
 Attention: Dobson West 
 Federal Tax Identification Number: 41-1642846 
  
 with a
copy to: 
  
 Fredrikson &Byron PA 
 4000 Pillsbury Center 
 200 South Sixth Street

 Minneapolis, MN 55402 
 Attn.:
Mary Ranum, Esq. 
  

	 	(ii)	If to Landlord: 

  
 Continental Hastings LLC 
 c/o Bradley Hoyt

 253 East Lake Street 
 Wayzata,
MN 55391 
 Federal Tax Identification Number: Pending  
  
 with a copy to: 
  
 Robins, Kaplan, Miller & Ciresi L.L.P. 
 2800 LaSalle Plaza 
 800 LaSalle Avenue 
 Minneapolis, MN 55402-2015 
 Attention: Steven A. Schumeister, Esq. 
  

	F	Definitions. 

  
 See Exhibit E attached. 
  

	5.	PREMISES. 

  
 Landlord hereby leases, lets and demises to Tenant, and Tenant hereby takes and leases from Landlord, for the term and upon the provisions hereinafter specified, the land located in Hastings, NE (hereinafter referred
to collectively as the “Premises,” as more particularly described in the description attached hereto as Exhibit “A,” (the “Land”), together with (a) all hereditaments, easements, rights-of-way,
rights, privileges in and to the Land, including beneficial easements over other lands (the “Appurtenances”); (b) the buildings, structures and other improvements now or hereafter constructed on the Land (collectively, the
“Improvements”); and (c) the fixtures, machinery, equipment and other property described in Exhibit “B” hereto (collectively, the “Equipment”). Tenant hereby waives and releases any right it may
have to terminate this Lease or its obligations hereunder, except in strict accordance with this Lease. 
  

	6.	TITLE TO PREMISES AND “AS-IS” CONDITION. 

  
 (a) Tenant agrees and acknowledges that the Premises are leased in an “as is” condition as to title and subject to (i) Permitted
Encumbrances, (ii) any state of facts which an accurate survey or physical inspection of the Premises might show, and all Legal Requirements, including any existing violation of any thereof without representation or warranty by Landlord. Tenant
represents, warrants, covenants and agrees that it is the former owner and current occupant of the Premises, with full and complete knowledge as to the condition thereof, and that Premises are in good and acceptable condition and repair and TENANT
TAKES AND LEASES THE PREMISES “AS IS,” WHERE IS, AND WITH ALL FAULTS. TENANT AGREES AND ACKNOWLEDGES THAT NEITHER LANDLORD NOR ANY OTHER PERSON ON ITS BEHALF HAS MADE, NOR SHALL BE DEEMED TO HAVE MADE, ANY WARRANTY OR
REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE PREMISES. THERE ARE, AND WERE, NO VERBAL REPRESENTATIONS, WARRANTIES, UNDERSTANDINGS, STIPULATIONS, AGREEMENTS OR PROMISES PERTAINING TO THIS LEASE OR TO THE EXPRESSLY MENTIONED WRITTEN
EXTRINSIC DOCUMENTS NOT 

  

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INCORPORATED IN WRITING IN THIS LEASE. LANDLORD AND TENANT EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OR MERCHANTABILITY,
HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OF ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE, IF ANY, EXPRESSLY SET FORTH IN THIS LEASE. 
  
 (b) To induce Landlord to enter into this Lease, Tenant
represents to Landlord that Tenant has examined the title to the Premises prior to the execution and delivery of this Lease and has found the same to be satisfactory. Tenant represents and warrants to Landlord that (i) Tenant has conveyed to
Landlord fee simple title (both legal and equitable) to the Premises and that Tenant has only the leasehold right of possession and use of the Premises as provided in this Lease, (ii) the Improvements conform to all material Legal Requirements and
all Insurance Requirements, (iii) all easements necessary or appropriate for the use or operation of the Premises have been obtained, (iv) all contractors and subcontractors who have performed work on or supplied materials to the Premises have been
fully paid or are being paid on a current basis as such work progresses, and all materials and supplies have been fully paid for or are being paid on a current basis as such work progresses, (v) the Improvements have been fully completed in all
material respects in a quality, workmanlike manner, and (vi) all Equipment necessary or appropriate for the use or operation of the Premises has been installed and is presently operative in all material respects. 
  
 (c) To facilitate Tenant’s performance of its
obligations hereunder, Landlord hereby assigns to Tenant, on a non-exclusive, revocable basis and without recourse or warranty whatsoever, all assignable warranties, guaranties, indemnities and similar rights (collectively
“Warranties”) which Landlord may have against any manufacturer, seller, engineer, contractor or builder in respect of any of the Premises. Such assignment shall remain in effect until the expiration or earlier termination of this
Lease, whereupon such assignment shall cease and all of said Warranties, guaranties, indemnities and other rights shall automatically revert to Landlord. In confirmation of such reversion Tenant shall execute and deliver promptly any certificate of
other document reasonably required by Landlord. Landlord shall also retain the right to enforce any guaranties upon the occurrence of and during the continuance of an Event of Default. Tenant shall enforce all Warranties in accordance with their
respective terms. 
  

	7.	USE; QUIET ENJOYMENT. 

  
 (a) Tenant may occupy and use the Premises for office/warehouse/manufacturing and such other purposes as are permitted by applicable laws,
codes and regulations. Tenant shall not use or occupy or permit any of the Premises to be used or occupied, nor do or permit anything to be done in or on any of the Premises, in a manner which would or might (i) violate any Law or Legal Requirement,
(ii) make void or voidable or cause any insurer to cancel any insurance required by this Lease, or make it difficult or impossible to obtain any such insurance at then current commercially reasonable rates for the permitted uses, (iii) make void or
voidable, cancel or cause to be cancelled or release any of the Warranties, (iv) cause injury to any of the Improvements or (v) constitute a public or private nuisance or waste. 
  

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 (b) Subject to the provisions hereof, so long as no Event of Default has occurred and is
continuing, Tenant shall quietly hold, occupy and enjoy the Premises throughout the Term, without any hindrance, ejection or molestation by Landlord with respect to matters that arise after the date hereof, provided that Landlord or its agents may
enter upon and examine any of the Premises at such reasonable times as Landlord may select and upon forty-eight hours prior notice to Tenant (except in the case of any emergency, in which event no notice shall be required) for the purpose of
inspecting the Premises, verifying compliance or non-compliance by Tenant with its obligations hereunder and the existence or non-existence of an Event of Default or event which with the passage of time and/or notice would constitute an Event of
Default, showing the Premises to prospective Lenders and purchasers and taking such other action with respect to the Premises as is permitted by any provision hereof. 
  

	8.	TERM 

  
 Subject to the provisions hereof, Tenant shall have and hold the Premises for a term commencing on the date hereof and ending on the last
day of the two hundred fortieth (240th) full calendar month next following the date hereof (the “Expiration
Date”). 
  

	9.	RENT. 

  
 (a) Tenant shall pay to Landlord, as annual rent for the Premises during the Term, the amounts determined in accordance with Exhibit
“D” hereto (“Basic Rent”), commencing on the date hereof for the initial month and thereafter, in advance on the date hereof, and continuing on the first day of each month during the Term (each such day being a
“Basic Rent Payment Date”). Each such rental payment shall be made, at Landlord’s sole discretion, (i) by a check actually received by Landlord before the applicable Basic Rent Payment Date, or (ii) by wire transfer in Federal
Funds on the applicable Basic Rent Payment Date. Pro rata Basic Rent for the initial month shall be paid on the date hereof 
  
 (b) Tenant shall pay and discharge, as additional rent (collectively, “Additional Rent”): 
  

	 	(i)	 except as otherwise specifically provided herein, all costs and expenses of Tenant, Landlord and any other Persons specifically referenced herein which are incurred
in connection or associated with (A) the ownership, use, non-use, occupancy, monitoring, possession, operation, condition, design, construction, maintenance, alteration, repair or restoration of the Premises, (B) the performance of any of
Tenant’s obligations under this Lease, (C) any sale or other transfer of the Premises to Tenant under this Lease, including costs and expenses incurred in connection with the payment of a Prepayment Premium, (D) any Condemnation proceedings,
(E) the adjustment, settlement or compromise of any insurance claims involving or arising from any of the Premises, (F) the prosecution, defense or settlement of any litigation involving or arising from any of the Premises, this Lease, or, in

  

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accordance with the Agreement of Purchase and Sale between the parties, the sale of the Premises to Landlord, (G) the exercise or enforcement by Landlord,
its successors and assigns, of any of its rights under this Lease, (H) any amendment to or modification or termination of this Lease made at the request of Tenant, (I) subject to, and included within the limitation set forth in Paragraph 25(a) the
Costs of Landlord’s counsel incurred in connection with the preparation, negotiation and execution of this Lease, and the Costs incurred in connection with any act undertaken by Landlord (or its counsel) at the request of Tenant, or incurred in
connection with any act of Landlord performed on behalf of Tenant, and (J) any other items specifically required to be paid by Tenant under this Lease; 

  

	 	(ii)	after the date all or any portion of any installment of Rent is due and not paid by the applicable Basic Rent Payment Date, or date the same is due, an amount (the “Late
Charge”) equal to five percent (5%) of the amount of such unpaid installment; except that the first Late Charge in any twelve (12) month period shall not be due and payable unless the amount due has not been received, in immediately
available U.S. funds, within five (5) days following the Base Rent Payment Date; 

  

	 	(iii)	a sum equal to any additional sums (including any late charge, default penalties, interest and fees of Lender’s counsel) which are payable by Landlord to any Lender under any
Note by reason of Tenant’s late payment or non-payment of Basic Rent or by reason of an Event of Default; and 

  

	 	(iv)	interest at the rate (the “Default Rate”) of five percent (5%) over the Prime Rate per annum on the following sums until paid in full: (A) all overdue installments
of Basic Rent from the respective due dates thereof, (B) all overdue amounts of Additional Rent relating to obligations which Landlord shall have paid on behalf of Tenant, from the date of payment thereof by Landlord, and (C) all other overdue
amounts of Additional Rent, from the date when any such amount becomes overdue, except that the first interest charge in any twelve (12) month period shall not be due and payable unless the amount due hasn’t been paid within five (5) days after
the date due. 

  
 (c) Tenant shall
pay and discharge (i) any Additional Rent referred to in Paragraph 6(b) when the same shall become due, provided that amounts which are billed to Landlord or any third party, but not to Tenant, shall be paid within ten (10) days after
Landlord’s demand for payment thereof, and (ii) any other Additional Rent, within ten (10) days after Landlord’s demand for payment thereof. 
  
 (d) In no event shall amounts payable under this Lease exceed the maximum amount permitted by applicable Law. 
  

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	10.	NET LEASE: NON-TERMINABILITY. 

  
 (a) It is expressly agreed and understood by the parties that this Lease is a net lease and all Rent and other sums due hereunder shall be
paid without notice or demand and without set-off, counterclaim, recoupment, abatement, suspension, deferment, diminution, deduction, reduction or defense, and Tenant hereby waives and releases forever any right to the same. 
  
 (b) This Lease and the rights of Landlord and the
obligations of Tenant hereunder shall not be affected by any event or for any reason or cause whatsoever foreseen or unforeseen. 
  
 (c) The obligations of Tenant hereunder shall be separate and independent covenants and agreements, all obligations and payments required
hereunder shall continue to be payable in all events (or, in lieu thereof, Tenant shall pay amounts equal thereto), and the obligations of Tenant hereunder shall continue unaffected unless the requirement to pay or perform the same shall have been
terminated pursuant to an express provision of this Lease. The obligation to pay Rent or amounts equal thereto shall not be affected by any collection of rents by any governmental body pursuant to a tax lien or otherwise that arises through no fault
of Landlord, even though such obligation results in a double payment of Rent. All Rent payable by Tenant hereunder shall constitute “rent” for all purposes (including Section 502(b)(6) of the Federal Bankruptcy Code). 
  

	11.	PAYMENT OF IMPOSITIONS. 

  
 (a) Tenant shall, before interest or penalties are due thereon, pay and discharge all taxes (including real and personal property,
franchise, sales, use, gross receipts and rent taxes), all charges for any easement or agreement maintained for the benefit of any of the Premises, all assessments and levies, all permit, inspection and license fees, all rents and charges for water,
sewer, utility and communication services relating to any of the Premises, all ground rents and all other public charges whether of a like or different nature, even if unforeseen or extraordinary, imposed upon or assessed against (i) Tenant, (ii)
Tenant’s possessory interest in the Premises, (iii) the Premises, (iv) Landlord as a result of or arising in respect of the acquisition, ownership, occupancy, leasing, use, possession or sale of the Premises to Tenant, any activity conducted on
the Premises, or the Rent, or (v) any Lender by reason of any Note, Mortgage, Assignment or other document evidencing or securing a Loan and which (as to this clause (v)) Landlord has agreed to pay (collectively, the “Impositions”);
provided, that nothing herein shall obligate Tenant to pay (A) income, excess profits or other taxes of Landlord (or Lender) which are determined on the basis of Landlord’s (or Lender’s) net income or net worth (unless such taxes are in
lieu of or a substitute for any other tax, assessment or other charge upon or with respect to the Leased which, if it were in effect, would be payable by Tenant under the provisions hereof or by the terms of such tax, assessment or other charge),
(B) any estate, inheritance, succession, gift or similar tax imposed on Landlord or (C) any capital gains tax imposed on Landlord in connection with the sale of the Premises to any Person. If any Imposition may be paid in installments without
penalty, Tenant shall have the option to pay such Imposition in installments; in such event, Tenant shall be liable only for those installments which accrue or become due and payable during the Term. Tenant shall prepare and file all tax reports
required by governmental 

  

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authorities which relate to the Impositions. Upon request of Landlord, Tenant shall deliver to Landlord (1) copies of all settlements and notices pertaining
to the Impositions which may be issued by any governmental authority within ten (10) days after Tenant’s receipt thereof, (2) receipts for payment of all taxes required to be paid by Tenant hereunder within thirty (30) days after the due date
thereof and (3) receipts for payment of all other Impositions within ten (10) days after Landlord’s request therefor. 
  
 (b) Tenant shall have the right to contest as set forth in Paragraph 12 below. 
  

	12.	COMPLIANCE WITH LAWS, AGREEMENTS; ENVIRONMENTAL MATTERS. 

  
 (a) Tenant shall, at its expense, comply with and conform to, and cause the Premises and any other Person occupying any part of the
Premises to comply with and conform to, all Insurance Requirements and Legal Requirements (including all applicable Environmental Laws). Tenant shall not at any time (i) cause, permit or suffer to occur any Environmental Violation or (ii) permit any
sublessee, assignee or other Person occupying the Premises under or through Tenant to cause, permit or suffer to occur any Environmental Violation and, at the request of Landlord or Lender, Tenant shall promptly remediate or undertake any other
appropriate response action to correct any existing Environmental Violation or take reasonable steps to obtain a determination by the governmental agency having jurisdiction that no remediation is required. Any and all reports prepared for or by
Landlord with respect to the Premises shall be for the sole benefit of Landlord and Lender and no other Person shall have the right to rely on any such reports, except if Tenant pays for such reports, Tenant shall be entitled to rely on them and
will be provided copies. 
  
 (b) Tenant, at its
sole cost and expense, will at all times promptly and faithfully abide by, discharge and perform all of the covenants, conditions and agreements contained in any agreement on the part of Landlord or the occupier to be kept and performed thereunder.
Tenant will not alter, modify, amend or terminate any Easement Agreement, give any consent or approval thereunder, or enter into any new easement, covenant or restriction without, in each case, prior written consent of Landlord, which consent will
not be unreasonably withheld. 
  
 (c) Upon prior
written notice from Landlord, Tenant shall permit such persons as Landlord may designate Landlord’s Agents to visit the Premises and perform, as agents of Tenant, environmental site investigations and assessments
(“Investigations”) on the Premises (i) in connection with any sale (provided, Tenant shall not be required to incur any costs with respect to a sale after the third (3rd) sale of the Premises), financing or refinancing (provided Tenant shall not be required to incur any costs with respect to any financing or refinancing after
Landlord’s initial financing and four (4)) subsequent refinancings of the Premises, (ii) within the six month period prior to the expiration of the Term, (iii) if required by Lender or the terms of any credit facility to which Landlord is
bound, (iv) if an Event of Default exists, or (v) at any other time that, in the opinion of Landlord or Lender (provided this provision shall apply only with respect to Landlord’s initial financing and four (4) subsequent refinancings), a
reasonable basis exists to believe that an Environmental Violation or any condition that could reasonably be expected to result in any Environmental Violation exists. Such Investigations may include both above and below the ground testing for
Environmental Violations and such 

  

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other tests as may be necessary, in the opinion of the Landlord or its agents, to conduct the Investigations. Tenant shall supply such historical and
operational information regarding the Premises as may be reasonably requested by Landlord or its agents to facilitate the Investigations, and shall make available for meetings with the Landlord or its agents appropriate personnel having knowledge of
such matters. The cost of performing and reporting Investigations shall be paid by Tenant. 
  
 (d) If an Environmental Violation occurs or is found to exist and, in Landlord’s reasonable judgment, the cost of remediation of, or
other response action with respect to, the same is likely to exceed $50,000.00, Tenant shall provide to Landlord, within ten (10) days after Landlord’s request therefor, adequate assurances that Tenant will effect such remediation in accordance
with applicable Environmental Laws. 
  
 (e)
Notwithstanding any other provision of this Lease, if an Environmental Violation occurs or is found to exist and the governmental agency having jurisdiction requires remediation and the Term would otherwise terminate or expire, then, at the option
of Landlord, the Term shall be automatically extended beyond the date of termination or expiration and this Lease shall remain in full force and effect beyond such date until the earlier to occur of (i) the completion of all remedial action in
accordance with applicable Environmental Laws or (ii) the date specified in a written notice from Landlord to Tenant terminating this Lease. 
  
 (f) If Tenant fails to comply with any requirement of any Environmental Law in connection with any Environmental Violation which occurs or
is found to exist and the governmental agency having jurisdiction requires remediation, Landlord shall have the right (but no obligation) upon thirty (30) days prior written notice to take any and all actions as Landlord shall deem necessary or
advisable in order to cure such Environmental Violation. 
  
 (g) Tenant shall notify Landlord immediately after becoming aware of any Environmental Violation (or alleged Environmental Violation) or noncompliance with any of the covenants contained in this Paragraph 8 and shall
forward to Landlord immediately upon receipt thereof copies of all orders, reports, notices, permits, applications or other communications relating to any such violation or noncompliance. 
  

	13.	NO LIENS. 

  
 (a) Tenant shall not, directly or indirectly, create or permit to be created or to remain and shall promptly discharge or remove any lien,
levy or encumbrance on any of the Premises or on any Rent or any other sums payable by Tenant under this Lease, other than any mortgage, lien, encumbrance or other charge created by or resulting solely from any act or omission of Landlord. NOTICE IS
HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR TO ANYONE HOLDING OR OCCUPYING ANY OF THE PREMISES THROUGH OR UNDER TENANT, AND THAT NO MECHANICS’ OR OTHER LIENS FOR
ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN AND TO ANY OF THE PREMISES. LANDLORD MAY AT 

  

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ANY TIME POST NOTICES ON THE PREMISES REGARDING SUCH NON-LIABILITY OF LANDLORD. 
  
 (b) Tenant shall execute, deliver and record, file or register (collectively, “record”) all
such instruments as may be required or permitted by any present or future Law in order to evidence the respective interests of Landlord and Tenant in the Premises, and shall cause a memorandum of this Lease (or, if such a memorandum cannot be
recorded, this Lease), and any supplement hereto or thereto, to be recorded in such manner and in such places as may be required or permitted by any present or future Law in order to protect the validity and priority of this Lease. 
  

	14.	MAINTENANCE AND REPAIR. 

  
 Landlord shall not be required to make any improvements, replacements or repairs of any kind or character to the Premises during the terms
of this Lease. Tenant shall, at all times throughout the term of this Lease, including renewals and extensions, and at its sole expense, keep, maintain, repair and replace the Premises in a clean, safe, sanitary condition, substantially similar to
that as of the date hereof, and in compliance with all applicable laws, codes, ordinances, rules and regulations. Tenant’s obligations hereunder shall include, but not be limited to, the maintenance, repair, and replacement, if necessary, of
the roof, foundation, parking and access areas, structures, and all heating, ventilation, air conditioning, lighting and plumbing fixtures and equipment, fixtures, motors and machinery, all walls, partitions, doors and windows, including the regular
painting thereof, all entrances, windows, doors and docks and the replacement of all broken glass. When used in this provision, the term “repairs” shall include replacements or renewals when necessary, and all such repairs made by the
Tenant shall be equal in quality and class to the original work. The Tenant shall keep and maintain all portions of the Premises and the sidewalk and areas adjoining the same in a clean and orderly condition, free of accumulation of dirt, rubbish,
snow and ice. If Tenant fails, refuses or neglects to maintain or repair the Premises as required in this Lease after notice of default and expiration of grace period, if any, shall have been given Tenant, in accordance with this Lease, Landlord may
make such repairs without liability to Tenant for any loss or damage that may accrue to Tenant’s merchandise, fixtures or other property or to Tenant’s business by reason thereof, and upon completion thereof. Tenant shall pay to Landlord
all costs plus eight percent (8%) for overhead incurred by Landlord in making such repairs upon presentation to Tenant of bill therefor. 
  

	15.	ALTERATIONS. 

  
 (a) Tenant shall have the right, without having obtained the prior written consent of Landlord and Lender and provided that no Event of
Default then exists, (i) to make non-structural Alterations or a series of related non-structural Alterations that, as to any such Alterations or series of related Alterations, do not cost in excess of $50,000.00 with respect to the Premises and
(ii) to install Equipment in the Improvements or accessions to the Equipment that, as to such Equipment or accessions, do not cost in excess of $50,000.00, so long as at the time of construction or installation of any such Equipment or Alterations
no Event of Default exists and the value and utility of the 

  

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Premises is not diminished thereby. If the cost of any non-structural Alterations, series of related non-structural Alterations, Equipment or accessions
thereto is in excess of $50,000.00 or if Tenant desires to make structural Alterations to the Premises, the prior written approval of Landlord and Lender shall be required. Tenant shall not construct upon the Land any additional buildings without
having first obtained the prior written consent of Landlord and Lender, such approval not to be unreasonably withheld. 
  
 (b) If Tenant makes any Alterations pursuant to this Paragraph 11 or as required by Paragraphs 10 or 15 (such Alterations and actions
being hereinafter collectively referred to as “Work”), then (i) the market value of the Premises shall not be lessened by any such Work or its usefulness impaired, (ii) all such Work shall be performed by Tenant in a good and
workmanlike manner, (iii) all such Work shall be expeditiously completed in compliance with all Legal Requirements, (iv) all such Work shall comply with the requirements of all insurance policies required to be maintained by Tenant hereunder, (v) if
any such Work involves the replacement of Equipment or parts thereto, all replacement Equipment or parts shall have a value and useful life equal to the greater of (A) the value and useful life on the date hereof of the Equipment being replaced or
(B) the value and useful life of the Equipment being replaced immediately prior to the occurrence of the event which required its replacement (assuming such replaced Equipment was then in the condition required by this Lease), (vi) Tenant shall
promptly discharge or remove all liens filed against any of the Premises arising out of such Work, (vii) Tenant shall procure and pay for all permits and licenses required in connection with any such Work, (viii) all such Work shall be the property
of Landlord and shall be subject to this Lease, and Tenant shall execute and deliver to Landlord any document requested by Landlord evidencing the assignment to Landlord of all estate, right, title and interest (other than the leasehold estate
created hereby) of Tenant or any other Person thereto or therein, and (ix) Tenant shall comply, to the extent requested by Landlord or required by this Lease, with the provisions of Paragraphs 11 and 16(a), whether or not such Work involves
restoration of the Premises. 
  

	16.	PERMITTED CONTESTS. 

  
 Notwithstanding any other provision of this Lease, Tenant shall not be required to (a) pay any Imposition, or (b) discharge or remove any
lien referred to in Paragraph 9 or 11 collectively the “Permitted Violations”), so long as at the time of such non-compliance no Event of Default exists and so long as Tenant shall contest, in good faith, the existence, amount or
validity thereof, the amount of the damages caused thereby, or the extent of its or Landlord’s liability therefor by appropriate proceedings which shall operate during the pendency thereof to prevent or stay (i) the collection of, or other
realization upon, the Permitted Violation so contested, (ii) the sale, forfeiture or loss of any of the Premises or any Rent to satisfy or to pay any damages caused by any Permitted Violation, (iii) any interference with the use or occupancy of any
of the Premises, (iv) any interference with the payment of any Rent, or (v) the cancellation or increase in the rate of any insurance policy or a statement by the carrier that coverage will be denied. Tenant shall provide Landlord reasonable
assurance of ability to pay or correct the Permitted Violation which is satisfactory, in Landlord’s reasonable judgment, to assure that such Permitted Violation is corrected, including all Costs, interest and penalties that may be incurred or
become due in connection therewith. While any proceedings which comply with the requirements of this Paragraph 12, Landlord shall not have the right to correct any 

  

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Permitted Violation thereby being contested unless Landlord is required by Law to correct such Permitted Violation and Tenant’s contest does not prevent
or stay such requirement as to Landlord. Each such contest shall be promptly and diligently prosecuted by Tenant to a final conclusion, except that Tenant, so long as the conditions of this Paragraph 12 are at all times complied with, has the right
to attempt to settle or compromise such contest through negotiations. Tenant shall pay any and all losses, judgments, decrees and Costs in connection with any such contest and shall, promptly after the final determination of such contest, fully pay
and discharge the amounts which shall be levied, assessed, charged or imposed or be determined to be payable therein or in connection therewith, together with all penalties, fines, interest and Costs thereof or in connection therewith, and perform
all acts the performance of which shall be ordered or decreed as a result thereof. No such contest shall subject Landlord to the risk of any civil or criminal liability. 
  

	17.	INDEMNIFICATION. 

  
 (a) Except to the extent arising out of the gross negligence or willful misconduct of any Indemnitee, Tenant shall pay, protect,
indemnify, defend, save and hold harmless Landlord, its members, agents and employees, and Lender (each an “Indemnitee”) from and against any and all liabilities, losses, damages (including punitive damages), penalties, Costs
(including reasonable attorneys’ fees and costs), causes of action, suits, claims, demands or judgments of any nature whatsoever, howsoever caused, without regard to the form of action and whether based on strict liability, gross negligence,
negligence or any other theory of recovery at law or in equity, arising from (i) any matter pertaining to the acquisition (or the negotiations leading thereto), ownership, leasing, use, non-use, occupancy, operation, management, condition, design,
construction, maintenance, repair or restoration of the Premises, (ii) any casualty in any manner arising from the Premises, whether or not Indemnitee has or should have knowledge or notice of any defect or condition causing or contributing to said
casualty, (iii) any violation by Tenant of any provision of this Lease, any contract or agreement to which Tenant is a party, any Legal Requirement or any Permitted Encumbrance or any encumbrance Tenant consented to or the Mortgage or Assignment or
(iv) any alleged, threatened or actual Environmental Violation, including (A) liability for response costs and for costs of removal and remedial action incurred by the United States Government, any state or local governmental unit or any other
Person, or damages from injury to or destruction or loss of natural resources, including the reasonable costs of assessing such injury, destruction or loss, incurred pursuant to Section 107 of CERCLA, or any successor section or act or provision of
any similar state or local Law, (B) liability for costs and expenses of abatement, correction or clean-up, fines, damages, response costs or penalties which arise from the provisions of any of the other Environmental Laws and (C) liability for
personal injury or property damage arising under any statutory or common-law tort theory, including damages assessed for the maintenance of a public or private nuisance or for carrying on of a dangerous activity. 
  
 (b) In case any action or proceeding is brought against any
Indemnitee by reason of any such claim, (i) Tenant may, except in the event of a conflict of interest or a dispute between Tenant and any such Indemnitee or during the continuance of an Event of Default, retain its own counsel and defend such action
(it being understood that Landlord may employ counsel of its choice to monitor the defense of any such action, the 

  

 11 

 
reasonable cost of which shall be paid by Tenant) and (ii) such Indemnitee shall notify Tenant to resist or defend such action or proceeding by retaining
counsel reasonably satisfactory to such Indemnitee, and such Indemnitee will cooperate and assist in the defense of such action or proceeding if reasonably requested to do so by Tenant. In the event of a conflict of interest or dispute or during the
continuance of an Event of Default, Landlord shall have the right to select counsel, and the reasonable cost of such counsel shall be paid by Tenant. 
  
 (c) The obligations of Tenant under this Paragraph 14 shall survive any termination, expiration or rejection in bankruptcy of this Lease.

  

	18.	INSURANCE. 

  
 (a) Tenant shall procure and maintain the following insurance on or in connection with the Premises: 
  

	 	(i)	Insurance against physical loss or damage to the Improvements and Equipment as provided under a standard “All Risk” property policy including but not limited to flood (to
the extent that the Premises is in a flood zone) in amounts not less than the actual replacement cost of the Improvements and Equipment. Such policies shall contain Replacement Cost and Agreed Amount Endorsements and shall contain deductibles not
more than $25,000 per occurrence. 

  

	 	(ii)	Commercial General Liability Insurance (including but not limited to Incidental Medical Malpractice and Host Liquor Liability) and Business Automobile Liability Insurance (including
Non-Owned and Hired Automobile Liability) against claims for personal and bodily injury, death or property damage occurring on, in or as a result of the use of the Premises, in an amount not less than $5,000,000 per occurrence/annual aggregate and
all other coverage extensions that are usual and customary for properties of this size and type provided, however, that the Landlord shall have the right to require such higher limits as may be reasonable and customary for properties of this size
and type. 

  

	 	(iii)	Worker’s compensation insurance covering all persons employed by Tenant in connection with any work done on or about any of the Premises for which claims for death, disease or
bodily injury may be asserted against Landlord, Tenant or the Premises or, in lieu of such Workers’ Compensation Insurance, a program of self-insurance complying with the rules, regulations and requirements of the appropriate agency of the
State or States in which the Premises are located. 

  

	 	(iv)	 Comprehensive Boiler and Machinery Insurance on any of the Equipment or any other equipment on or in the Premises in an 

  

 12 

	 	 
amount not less than $3,000,000 per accident for damage to property. 

  

	 	(v)	Business Interruption and Extra Expense Insurance at limits to cover 100% of losses and/or expenses incurred over the period of indemnity not less than twelve (12) months from time
of loss. Such insurance shall name Landlord as loss payee solely with respect to Rent payable to or for the benefit of the Landlord under this Lease. 

  

	 	(vi)	During any period in which substantial Alterations are being undertaken, builder’s risk insurance covering the total completed value including any “soft costs” with
respect to the Improvements being altered or repaired (on a completed value, non-reporting basis), replacement cost of work performed and equipment, supplies and materials furnished in connection with such construction or repair of Improvements or
Equipment, together with such “soft cost” endorsements and such other endorsements as Landlord may reasonably require and general liability, workers’ compensation and automobile liability insurance with respect to the Improvements
being constructed, altered or repaired. 

  

	 	(vii)	Such other insurance (or other terms with respect to any insurance required pursuant to this Paragraph 14, including without limitation amounts of coverage, deductibles, form of
mortgagee clause) on or in connection with any of the Premises as Landlord or Lender may reasonably require, which at the time is usual and commonly obtained in connection with properties similar in type of building size, use and location to the
Premises. 

  
 (b) The insurance
required by Paragraph 14(a) shall be written by companies licensed to write insurance policies in the State of Minnesota, and which have a Best’s rating of A-:X or above (or its equivalent rating system as reasonably determined by Landlord).
The insurance policies (i) shall be for such terms as Landlord may reasonably approve and (ii) shall be in amounts sufficient at all times to satisfy any coinsurance requirements thereof. The insurance referred to in Paragraphs 14(a)(i), 14(a)(iv)
and 14(a)(vi) shall name Landlord as Owner and Lender as loss payee and Tenant as its interest may appear. The insurance referred to in Paragraph 14(a)(ii) shall name Landlord and Lender as additional insureds, and the insurance referred to in
Paragraph 14(a)(v) shall name Lender and Landlord as loss payee to the extent of Rent hereunder. If said insurance or any part thereof shall expire, be withdrawn, become void, voidable, unreliable or unsafe for any reason, including a breach of any
condition thereof by Tenant or the failure or impairment of the capital of any insurer, or if for any other reason whatsoever said insurance shall become reasonably unsatisfactory to Landlord, Tenant shall immediately obtain new or additional
insurance reasonably satisfactory to Landlord. 
  
 (c) Each insurance policy referred to in clauses (i), (iv), (v) and (vi) of Paragraph 14(a) shall contain standard non-contributory mortgagee clauses in favor of and acceptable to Lender. Each policy required by any provision of Paragraph
14(a), 

  

 13 

 
except clause (iii) thereof, shall provide that it may not be cancelled substantially modified or allowed to lapse on any renewal date except after thirty
(30) days’ prior notice to Landlord and Lender. Each such policy shall also provide that any loss otherwise payable thereunder shall be payable notwithstanding (i) any act or omission of Landlord or Tenant which might, absent such provision,
result in a forfeiture of all or a part of such insurance payment, (ii) the occupation or use of any of the Premises for purposes more hazardous than those permitted by the provisions of such policy, (iii) any foreclosure or other action or
proceeding taken by Lender pursuant to any provision of the Mortgage, Note, Assignment or other document evidencing or securing the Loan upon the happening of an event of default therein or (iv) any change in title to or ownership of the Premises,
subject to timely notification thereof in accordance with the provisions of such policy. 
  
 (d) Tenant shall pay as they become due all premiums for the insurance required by Paragraph 14(a), shall renew or replace each policy and
upon request by Landlord deliver to Landlord evidence of the payment of the premium therefor or installment then due at least thirty (30) days prior to the expiration date of such policy, and shall promptly deliver to Landlord all original
certificates of insurance or, if required by Lender, original or certified policies. 
  
 (e) Anything in this Paragraph 14 to the contrary notwithstanding, any insurance which Tenant is required to obtain pursuant to Paragraph
14(a) may be carried under a “blanket” or umbrella policy or policies covering other properties or liabilities of Tenant, provided that such “blanket” or umbrella policy or policies otherwise comply with the provisions of this
Paragraph 14. The original or a certified copy of each such “blanket” or umbrella policy shall promptly be delivered to Landlord. 
  
 (f) Tenant shall have the replacement cost and insurable value of the Improvements and Equipment determined from time to time as required
by the replacement cost and agreed amount endorsements. 
  
 (g) Tenant shall promptly comply with and conform to (i) all provisions of each insurance policy required by this Paragraph 14 and (ii) all requirements of the insurers thereunder applicable to Landlord, Tenant or any
of the Premises or to the use, manner of use, occupancy, possession, operation, maintenance, alteration or repair of any of the Premises, even if such compliance necessitates Alterations or results in interference with the use or enjoyment of any of
the Premises. 
  
 (h) Tenant shall not carry
separate insurance concurrent in form or contributing in the event of a Casualty with that required in this Paragraph 14 unless (i) Landlord and Lender are included therein as named insureds, with loss payable as provided herein, and (ii) such
separate insurance complies with the other provisions of this Paragraph 14. Tenant shall immediately notify Landlord of such separate insurance and shall deliver to Landlord the original policies or certified copies thereof. 
  
 (i) All policies shall contain effective waivers by the
carrier against all claims for insurance premiums against Landlord and shall contain full waivers of subrogation against the Landlord. 
  

 14 

 (j) All proceeds of any insurance required under Paragraph 14(a) shall be payable as
follows: 
  

	 	(i)	Proceeds payable under clauses (ii), (iii) and (iv) of Paragraph 14(a) and proceeds attributable to the general liability coverage of Builder’s Risk insurance under clause (vi)
of Paragraph 14(a) shall be payable to the Person entitled to receive such proceeds. 

  

	 	(ii)	Proceeds of insurance required under clause (i) of Paragraph 14(a) and proceeds attributable to Builder’s Risk insurance (other than its general liability coverage provisions)
under clause (vi) of Paragraph 14(a) shall be payable to Landlord or Lender and applied as set forth in Paragraph 15 or, if applicable, Paragraph 16. Tenant shall apply the Net Award to restoration of the Premises in accordance with the applicable
provisions of this Lease unless a Termination Event shall have occurred and Tenant has given a Termination Notice. 

  

	19.	CASUALTY AND CONDEMNATION; TERMINATION EVENTS. 

  
 (a) If any Casualty occurs to any of the Premises, Tenant shall give Landlord and Lender immediate notice thereof. So long as no Event of
Default exists, Tenant is hereby authorized to adjust, collect and compromise all claims under any of the insurance policies required by Paragraph 14(a) (except public liability insurance claims payable to a Person other than Tenant, Landlord or
Lender) and to execute and deliver on behalf of Landlord all necessary proofs of loss, receipts, vouchers and releases required by the insurers and Landlord shall have the right to join with Tenant therein. Any adjustment, settlement or compromise
of any such claim in excess of $50,000.00 shall be subject to the prior written approval of Landlord and Lender, approval not to be unreasonably withheld, and Landlord and Lender shall have the right to prosecute or contest, or to require Tenant to
prosecute or contest, any such claim, adjustment, settlement or compromise. Each insurer is hereby authorized and directed to make payment under said policies, including return of unearned premiums, as set forth in Paragraph 4(j). The rights of
Landlord under this Paragraph 15(a) shall be extended to Lender if and to the extent that any Mortgage so provides. 
  
 (b) Tenant, immediately upon receiving a Condemnation Notice, shall notify Landlord and Lender thereof. So long as no Event of Default
exists, Tenant is authorized to collect, settle and compromise the amount of any Net Award and Landlord shall have he right to join therein. No agreement with any condemnor in settlement or under threat of any Condemnation shall be made by Tenant
without the written consent of Landlord and Lender not unreasonably withheld. Subject to the provisions of this Paragraph 16(b), Tenant hereby irrevocably assigns to Landlord any award or payment to which Tenant is or may be entitled by reason of
any Condemnation, whether the same shall be paid or payable for Tenant’s leasehold interest hereunder or otherwise; but nothing in this Lease shall impair Tenant’s right to any award or payment on account of Tenant’s trade fixtures,
equipment or other tangible property which is not part of the Equipment, moving expenses or loss of business, if available, to the extent that and so long as (i) Tenant shall have the right to make, and does make, a separate claim therefor against
the condemnor 

  

 15 

 
and (ii) such claim does not in any way reduce either the amount of the award otherwise payable to Landlord for the Condemnation of Landlord’s fee
interest in the Premises or the amount of the award (if any) otherwise payable for the Condemnation of Tenant’s leasehold interest hereunder. The rights of Landlord under this Paragraph 15(b) shall also be extended to Lender if and to the
extent that any Mortgage so provides. 
  
 (c) If
any Partial Casualty (whether or not insured against) or Partial Condemnation shall occur to the Premises, this Lease shall continue, notwithstanding such event, and there shall be no abatement or reduction of any Monetary Obligations. Promptly
after such Partial Casualty or Partial Condemnation, Tenant, as required in Paragraph 11(a), shall commence and diligently continue to restore the Premises as nearly as possible to their value, condition and character immediately prior to such event
(assuming the Premises to have been in the condition required by this Lease). So long as no Event of Default exists, any Net Award up to and including $50,000.00 (or such lesser amount as Lender may require, but not less than $25,000), shall be paid
by Landlord to Tenant and Tenant shall restore the Premises in accordance with the requirements of this Lease. Any Net Award in excess of $50,000.00 (or such lesser amount as Lender may require, but not less than $25,000.00), shall (unless such
Casualty resulting in the Net Award is a Termination Event) be made available by Landlord (or Lender if the terms of the Mortgage so require) to Tenant for the restoration of any of the Premises pursuant to and in accordance with and subject to the
provisions of Paragraph 16 hereof. If any Casualty or Condemnation which is not a Partial Casualty or Partial Condemnation shall occur, Tenant shall comply with the terms and conditions of Paragraph 16. 
  
 (d) In the event of a Requisition of any of the Premises, if
any Net Award payable by reason of such Requisition is (i) retained by Landlord, each installment of Basic Rent payable on or after the date on which the Net Award is paid to Landlord shall be reduced by a fraction, the denominator of which shall be
the total amount of all Basic Rent due from such date to and including the last Basic Rent Payment Date for the then existing Term and the numerator of which shall be the amount of such Net Award retained by Landlord, or (ii) paid to Lender, then
each installment of Basic Rent thereafter payable shall be reduced in the same amount and for the same period as payments are reduced under the Note until such Net Award has been applied in full or until the Term has expired, whichever occurs first.
Upon the expiration of the Term, any portion of such Net Award which shall not have been previously credited to Tenant shall be retained by Landlord. 
  
 (e) If (i) the Premises shall be taken by a Taking or (ii) any substantial portion of the Premises shall be taken by a Taking or all or
any substantial portion of the Premises shall be totally damaged or destroyed by a Casualty and, in any such case, Tenant certifies and covenants to Landlord that it will abandon operations of Tenant’s business at the Premises for a period of
not less than five (5) years from the date of such Casualty or Taking each of the events described in the above clauses (i) and (ii) shall hereinafter be referred to as a “Termination Event”), then (x) in the case of (i) above,
Tenant shall be obligated, within thirty (30) days after Tenant receives a Condemnation Notice and (y) in the case of (ii) above, Tenant shall have the option, within forty-five (45) days after Tenant receives a Condemnation Notice or forty-five
(45) days after the Casualty, as the case may be, to give to Landlord written notice (a “Termination Notice”) in the form described below of the Tenant’s election to terminate this 

  

 16 

 
Lease. A Termination Notice shall contain (i) notice of Tenant’s intention to terminate this Lease on the first Basic Rent Payment Date which occurs at
least thirty (30) days after the Fair Market Value Date (the “Termination Date”), (ii) a binding and irrevocable offer of Tenant to pay the Termination Amount and (iii) if the Termination Event is an event described in (e)(ii), the
certification and covenant described therein and a certified resolution of the Board of Directors of Tenant authorizing the same. Promptly upon the delivery to Landlord of a Termination Notice, Landlord and Tenant shall commence to determine Fair
Market Value. 
  
 If Landlord shall reject such offer to accept payment of the
Termination Amount as to the Premises by written notice to Tenant (a “Rejection”) which Rejection shall contain the written consent of Lender to reject Tenant’s offer to pay the Termination Amount, not later than thirty (30)
days following the Fair Market Value Date, then this Lease shall terminate on the Termination Date; provided that, if Tenant has not satisfied all Monetary Obligations and all other obligations and liabilities under this Lease which have arisen as
to the Premises (collectively, “Remaining Obligations”) on or prior to the Termination Date, then Landlord may, at its option, extend the date on which this Lease may terminate to a date which is no later than the first Basic Rent
Payment Date after the Termination Date on which Tenant has satisfied all Remaining Obligations. Upon such termination (i) all obligations of Tenant hereunder shall terminate except for any Surviving Obligations, (ii) Tenant shall immediately vacate
and shall have no further right, title or interest in or to any of the Premises and (iii) the Net Award shall be retained by Landlord. Notwithstanding anything to the contrary hereinabove contained, if Tenant shall have received a Rejection and, on
the date when this Lease would otherwise terminate with respect to the Premises as provided above, Landlord shall not have received the full amount of the Net Award payable by reason of the applicable Termination Event through no fault of Landlord,
then the date on which this Lease is to terminate shall be automatically extended to the first Basic Rent Payment Date after the receipt by Landlord of the full amount of the Net Award provided that, if Tenant has not satisfied all Remaining
Obligations on such date, then Landlord may, at its option, extend the date on which this Lease may terminate to a date which is no later than the first Basic Rent. Unless Tenant shall have received a Rejection not later than the thirtieth (30th)
day following the Fair Market Value Date, Landlord shall be conclusively presumed to have accepted such offer from Tenant to pay the Termination Amount. If such offer from Tenant to pay the Termination Amount is accepted by Landlord then, on the
Termination Date, Tenant shall pay to Landlord the Termination Amount and all Remaining Obligations and, if requested by Tenant, Landlord shall convey to Tenant or its designee the Premises or the remaining portion thereof, if any, all in accordance
with Paragraph 30, together with all of Landlord’s rights or interest in and to the Net Award. 
  

	20.	RESTORATION. 

  
 (a) If any Net Award is in excess of $50,000.00, Landlord (or Lender if required by any Mortgage) shall hold the Net Award in a fund (the
“Restoration Fund”) and disburse amounts from the Restoration Fund only in accordance with the following conditions: 
  

	 	(i)	 prior to commencement of restoration, (A) the architects, contracts, contractors, plans and specifications and a budget for the restoration shall have been approved
by Landlord, such approval not to be unreasonably withheld, and (B) Landlord and Lender shall be provided with mechanics’ lien insurance (if available) and acceptable performance and payment 

  

 17 

	 	 
bonds (if the cost of restoration and materials exceeds $50,000.00) which insure satisfactory completion of and payment for the restoration, are in an amount
and form and have a surety acceptable to Landlord, and name Landlord and Lender as additional dual obligees; 

  

	 	(ii)	at the time of any disbursement, no Event of Default shall exist and no mechanics’ or materialmen’s liens shall have been filed against any of the Premises and remain
undischarged unless being contested in good faith per Paragraph 12; 

  

	 	(iii)	disbursements shall be made from time to time in an amount not exceeding the cost of the work completed since the last disbursement, upon receipt of (A) satisfactory evidence,
including architects’ certificates, of the stage of completion, the estimated total cost of completion and performance of the work to date in a good and workmanlike manner in accordance with the contracts, plans and specifications, (B) waivers
of liens, (C) contractors’ sworn statements as to completed work and the cost thereof for which payment is requested, (D) a satisfactory bringdown of title insurance and (E) other evidence of cost and payment so that Landlord and Lender can
verify that the amounts disbursed from time to time are represented by work that is completed, in place and free and clear of mechanics’ and materialmen’s lien claims unless being contested in good faith per Paragraph 12;

  

	 	(iv)	each request for disbursement shall be accompanied by a certificate of Tenant, signed by the president or a vice president of Tenant, describing the work for which payment is
requested, stating the cost incurred in connection therewith, stating that Tenant has not previously received payment for such work and, upon completion of the work, also stating that the work has been fully completed and complies with the
applicable requirements of this Lease; 

  

	 	(v)	Landlord may retain ten percent (10%) of the Restoration Fund until the restoration is fully completed; 

  

	 	(vi)	the Restoration Fund shall not be commingled with Landlord’s other funds and shall bear interest at a rate agreed to by Landlord and Tenant; and 

  

	 	(vii)	such other reasonable conditions as Landlord or Lender may impose. 

  
 (b) Prior to commencement of restoration and at any time during restoration, if the estimated cost of completing the restoration work free
and clear of all liens, as reasonably determined by Landlord, exceeds the amount of the Net Award available for such restoration, the amount of such excess shall, upon demand by Landlord, be paid by Tenant to Landlord to be added to the Restoration
Fund. Any sum so added by Tenant which remains in the Restoration Fund upon completion of restoration shall be refunded to Tenant. For purposes of determining the source of funds with respect to the disposition of funds remaining after the
completion of restoration, the Net Award shall be deemed to be disbursed prior to any amount added by Tenant. 
  

 18 

 (c) If any sum remains in the Restoration Fund after completion of the restoration and
any refund to Tenant pursuant to Paragraph 16(b), such sum (the “Remaining Sum”) shall be retained by Landlord or, if required by a Note or Mortgage, paid by Landlord to a Lender. 
  

	21.	ASSIGNMENT AND SUBLETTING: PROHIBITION AGAINST LEASEHOLD FINANCING. 

  
 (a) If Tenant desires to assign or sublease this Lease, whether by operation of law or otherwise, (including
through merger, consolidation or sale of the stock of Tenant which shall be deemed an assignment) then Tenant shall, not less than sixty (60) days prior to the date on which it desires to make an assignment or sublease, submit to Landlord
information regarding the following with respect to the proposed assignee (collectively, the “Review Criteria”): (A) credit, (B) capital structure, (C) management, (D) operating history, (E) proposed use of the Premises and (F) risk
factors associated with the proposed use of the Premises, taking into account factors such as environmental concerns, product liability and the like. Landlord and Lender shall review such information and shall approve or disapprove the assignee no
later than the thirtieth (30th) day following receipt of all such information, and Landlord shall be deemed to have acted reasonably in granting or withholding consent if such grant or disapproval is based on their review of the Review Criteria
applying prudent business judgment, provided that Landlord will not withhold its consent if the Review Criteria as it applies to the proposed assignee or sublessee is stronger/better than the same criteria applied to Tenant at the greater of both as
of the date of this Lease and at the time of the assignment or sublease. If a response is not received by Landlord by the expiration of such thirty (30) day period such assignment or sublease shall be deemed disapproved. 
  
 (b) If Tenant assigns all its rights and interest under this
Lease, the assignee under such assignment shall expressly assume all the obligations of Tenant hereunder, actual or contingent, including obligations of Tenant which may have arisen on or prior to the date of such assignment, by a written instrument
delivered to Landlord at the time of such assignment. Each sublease of the Premises shall (A) be expressly subject and subordinate to this Lease and any Mortgage encumbering the Premises; (B) not extend beyond the then current Term minus one day;
(C) terminate upon any termination of this Lease, unless Landlord elects in writing, to cause the sublessee to attorn to and recognize Landlord as the lessor under such sublease, whereupon such sublease shall continue as a direct lease between the
sublessee and Landlord upon all the terms and conditions of such sublease; and (D) bind the sublessee to all covenants contained in Paragraphs 3(a), 8, 10 and 11 with respect to subleased premises to the same extent as if the sublessee were the
Tenant. No assignment or sublease shall affect or reduce any of the obligations of Tenant hereunder, and all such obligations of Tenant shall continue in full force and effect as obligations of a principal and not as obligations of a guarantor, as
if no assignment or sublease had been made. No assignment or sublease shall impose any additional obligations on Landlord under this Lease. 
  
 (c) Tenant shall, within ten (10) days after the execution and delivery of any assignment or sublease, deliver a duplicate original copy
thereof to Landlord which, in the event of an assignment, shall be in recordable form. 
  

 19 

 (d) As security for performance of its obligations under this Lease, Tenant hereby
grants, conveys and assigns to Landlord all right, title and interest of Tenant in and to all subleases now in existence or hereafter entered into for any or all of the Premises, any and all extensions, modifications and renewals thereof and all
rents, issues and profits therefrom. Landlord hereby grants to Tenant a license to collect and enjoy all rents and other sums of money payable under any sublease of any of the Premises, provided, however, that Landlord shall have the absolute right
at any time following the occurrence and during the continuance of an Event of Default to revoke said license and to collect such rents and sums of money and to retain the same. Tenant shall not consent to, cause or allow any modification or
alteration of any of the terms, conditions or covenants of any of the subleases or the termination thereof, without the prior written approval of Landlord which consent shall not be unreasonably withheld nor shall Tenant accept any rents more than
thirty (30) days in advance of the accrual thereof nor do nor permit anything to be done, the doing of which, nor omit or refrain from doing anything, the omission of which, will or could be a breach of or default in the terms of any of the
subleases. 
  
 (e) Tenant shall not have the
power to mortgage, pledge or otherwise encumber its interest under this Lease or any sublease of the Premises, and any such mortgage, pledge or encumbrance made in violation of this Paragraph 18 shall be void and of no force and effect. 

 
 (f) Tenant shall pay to Landlord with each monthly
installment of Basic Rent, as Additional Rent, one-half (1/2) all Net Sublet Rent paid by any subtenant for the prior month under any sublease for all or any portion of the Premises. The term “Net Sublet Rent” as used in this Paragraph
17(g) shall mean the aggregate amount of all rent payable by all subtenants for any portion of the Premises less (i) any operating expenses certified by Tenant relating to that portion of the Premises sublet (ii) the cost of any improvements
constructed and paid for by Tenant specifically for such subtenant and (iii) the product of (A) Basic Rent then in effect multiplied by (B) the percentage of the leaseable square feet of the Premises sublet. 
  
 (g) Provided no costs of sale (other than Tenant’s
counsel’s fees in connection with estoppels, certificates and other similar requirements are passed through to Tenant Landlord may sell or transfer the Premises at any time without Tenant’s consent to any third party (each a “Third
Party Purchaser”). In the event of any such transfer, Tenant shall attorn to any Third Party Purchaser as Landlord so long as such Third Party Purchaser and Landlord notify Tenant in writing of such transfer. At the request of Landlord,
Tenant will execute such documents confirming the agreement referred to above and such other agreements as Landlord may reasonably request, provided that such agreements do not increase the liabilities and obligations of Tenant hereunder.

  

	22.	EVENTS OF DEFAULT. 

  
 (a) The occurrence of any one or more of the following (after expiration of any applicable cure period as provided in Paragraph 18(b))
shall, at the sole option of Landlord, constitute an “Event of Default” under this Lease: 
  

	 	(i)	a failure by Tenant to make any payment of any Monetary Obligation on or prior to its due date, regardless of the reason for such failure; 

  

 20 

	 	(ii)	a failure by Tenant duly to perform and observe, or a violation or breach of, any other provision hereof not otherwise specifically mentioned in this Paragraph 18(a);

  

	 	(iii)	any representation or warranty made by Tenant herein or in any certificate, demand or request made pursuant hereto proves to be incorrect, now or hereafter, in any material respect;

  

	 	(iv)	a final, non-appealable judgment or judgments for the payment of $100,000 or more, shall be rendered against Tenant and the same shall remain undischarged for a period of sixty (60)
consecutive days; 

  

	 	(v)	Tenant shall (A) voluntarily be adjudicated a bankrupt or insolvent, (B) seek or consent to the appointment of a receiver or trustee for itself or for any of the Premises, (C) file
a petition seeking relief under the bankruptcy or other similar laws of the United States, any state or any jurisdiction, (D) make a general assignment for the benefit of creditors, or (E) be unable to pay its debts as they mature;

  

	 	(vi)	a court shall enter an order, judgment or decree appointing, without the consent of Tenant, a receiver or trustee for it or for the Premises or approving a petition filed against
Tenant which seeks relief under the bankruptcy or other similar laws of the United States, any state or any jurisdiction, and such order, judgment or decree shall remain undischarged or unstayed sixty (60) days after it is entered;

  

	 	(vii)	the Premises shall have been abandoned; 

  

	 	(viii)	Tenant shall be liquidated or dissolved or shall begin proceedings towards its liquidation or dissolution; 

  
  

	 	(ix)	the estate or interest of Tenant in the Premises shall be levied upon or attached in any proceeding and such estate or interest is about to be sold or transferred or such process
shall not be vacated or discharged within sixty (60) days after it is made; 

  

	 	(x)	a failure by Tenant to perform or observe, or a violation or breach of, or a misrepresentation by Tenant under, any provision of any Assignment or any other document between Tenant
and Lender or from Tenant to Lender, if such failure, violation, breach or misrepresentation gives rise to a default beyond any applicable cure period with respect to any Loan; 

  

	 	(xi)	a failure by Tenant to maintain in effect any license or permit necessary for the use, occupancy or operation of the Premises; 

  

	 	(xii)	Tenant shall fail to deliver the estoppel described in Paragraph 22 within the time period specified therein; 

  

 21 

	 	(xiii)	If a Security Deposit is required, Tenant shall fail to renew the Letter of Credit or replenish the Security Deposit in accordance with the requirements of Paragraph 28;

  

	 	(xiv)	Tenant shall assign or sublet in violation of the provisions of Paragraph 17(a); or 

  

	 	(xv)	An “Event of Default” shall occur in that certain Lease of even date between Landlord and Tenant with respect to real property and improvements in Hastings, Nebraska.

  
 (b) No notice or cure period
shall be required in any one or more of the following events: (A) the occurrence of an Event of Default under clause (i) (except as otherwise set forth below), (iii), (iv), (v), (vi), (vii), (viii), (ix), (x), (xi), (xii), (xiii), or (xiv) of
Paragraph 18(a); (B) the default consists of a failure to pay Basic Rent, a failure to provide any insurance required by Paragraph 14 or an assignment or sublease entered into in violation of Paragraph 17; or (C) the default is such that any delay
in the exercise of a remedy by Landlord could reasonably be expected to cause irreparable harm to Landlord. If the default consists of the failure to pay any Monetary Obligation under clause (i) of Paragraph 18(a), the applicable cure period shall
be three (3) days from the date on which notice is given, but Landlord shall not be obligated to give notice of, or allow any cure period for, any such default more than two (2) times within any Lease Year. If the default consists of a default under
clause (ii) of Paragraph 18(a), other than the events specified in clauses (B) and (C) of the first sentence of this Paragraph 18(b), the applicable cure period shall be twenty (20) days from the date on which notice is given or, if the default
cannot be cured within such twenty (20) day period and delay in the exercise of a remedy would not (in Landlord’s reasonable judgment) cause any material adverse harm to Landlord or any of the Premises, the cure period shall be extended for the
period required to cure the default (but such cure period, including any extension, shall not in the aggregate exceed sixty (60) days), provided that Tenant shall commence to cure the default within the said twenty-day period and shall actively,
diligently and in good faith proceed with and continue the curing of the default until it shall be fully cured. 
  

	23.	REMEDIES AND DAMAGES. 

  
 (a) If an Event of Default shall have occurred and is continuing, Landlord shall have the right, at its sole option, then or at any time
thereafter, to exercise its remedies and to collect damages from Tenant in accordance with this Paragraph 20, subject in all events to applicable Law, without demand upon or notice to Tenant except as otherwise provided in Paragraph 18(b) and this
Paragraph 19. 
  

	 	(i)	 Landlord may give Tenant notice of Landlord’s intention to terminate this Lease on a date specified in such notice. Upon such date, this Lease, the estate
hereby granted and all rights of Tenant hereunder shall expire and terminate. Upon such termination, Tenant shall immediately surrender and deliver possession of the Premises to Landlord in accordance with Paragraph 22. If Tenant does not so
surrender and deliver possession of all of the Premises, Landlord may re-enter and repossess any of the 

  

 22 

	 	 
Premises not surrendered, with or without legal process, by peaceably entering any of the Premises and changing locks or by summary proceedings, ejectment or
any other lawful means or procedure. Upon or at any time after taking possession of any of the Premises, Landlord may, by peaceable means or legal process, remove any Persons or property therefrom. Landlord shall be under no liability for or by
reason of any such entry, repossession or removal. Notwithstanding such entry or repossession, Landlord may (A) exercise the remedy set forth in and collect the damages permitted by Paragraph 18(a)(iii) or (B) collect the damages set forth in
Paragraph 19(b)(i) or 19(b)(ii). 

  

	 	(ii)	After repossession of any of the Premises pursuant to clause (i) above, Landlord shall use commercially reasonable efforts to relet any of the Premises to such tenant or tenants,
for such term or terms, for such rent, on such conditions and for such uses as are commercially reasonable, and collect and receive any rents payable by reason of such reletting. Landlord may make such Alterations in connection with such reletting
as are commercially reasonable. Notwithstanding any such reletting, Landlord may collect the damages set forth in Paragraph 19(b)(ii). 

  

	 	(iii)	Landlord may, upon notice to Tenant, require Tenant to make an irrevocable offer to terminate this Lease in its entirety for an amount (the “Default Termination
Amount”) specified in the next sentence. The “Default Termination Amount” shall be the greatest of (A) the sum of the Fair Market Value of the Premises and the applicable Prepayment Premium which Landlord will be required to pay
in prepaying any Loan with proceeds of the Default Termination Amount or (B) the sum of the Acquisition Cost and the applicable Prepayment Premium which Landlord will be required to pay in prepaying any Loan with proceeds of the Default Termination
Amount or (C) an amount equal to the Present Value of the entire Basic Rent from the date of such purchase to the date on which the then Term would expire, less the fair market rental value for the remainder of the term. Upon such notice to Tenant,
Tenant shall be deemed to have made such offer and shall, if requested by Landlord, within ten (10) days following such request, deposit with Landlord as payment against the Default Termination Amount the amount described in (B) above, Landlord and
Tenant shall promptly commence to determine Fair Market Value. Within thirty (30) days after the Fair Market Value Date, Landlord shall accept or reject such offer. If Landlord accepts such offer then, on the tenth (10th) business day after such
acceptance, Tenant shall pay to Landlord the Default Termination Amount and, at the request of Tenant, Landlord will convey the Premises to Tenant or its designee in accordance with Paragraph 19. Any rejection by Landlord of such offer shall have no
effect on any other remedy Landlord may have under this Lease. 

  

	 	(iv)	 Landlord may declare by notice to Tenant the entire Basic Rent (in the amount of Basic Rent then in effect) for the remainder of the then current Term to be
immediately due and payable. Tenant shall immediately pay 

  

 23 

	 	 
to Landlord all such Basic Rent, less the fair market rental value for the remainder of the term, discounted to its Present Value, all accrued Rent then due
and unpaid, all other Monetary Obligations which are then due and unpaid and all Monetary Obligations which arise or become due by reason of such Event of Default (including any Costs of Landlord). Upon receipt by Landlord of all such accelerated
Basic Rent and Monetary Obligations, this Lease shall remain in full force and effect and Tenant shall have the right to possession of the Premises from the date of such receipt by Landlord to the end of the Term, and subject to all the provisions
of this Lease, including the obligation to pay all increases in Basic Rent and all Monetary Obligations that subsequently become due, except that no Basic Rent which has been prepaid hereunder shall be due thereafter during the said Term.

  
 (b) The following
constitute damages to which Landlord shall be entitled if Landlord exercises its remedies under Paragraph 19(a)(i) or 19(a)(ii): 
  

	 	(i)	If Landlord exercises its remedy under Paragraph 19(a)(i) then, upon written demand from Landlord, Tenant shall pay to Landlord, as liquidated and agreed final damages for
Tenant’s default and in lieu of all current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely difficult to fix the actual damages), an amount equal to the Present Value of the excess, if any, of
(A) all Basic Rent from the date of such demand to the date on which the Term is scheduled to expire hereunder in the absence of any earlier termination, re-entry or repossession over (B) the then fair market rental value of the Premises for the
same period. Tenant shall also pay to Landlord all of Landlord’s Costs in connection with the repossession of the Premises and any attempted reletting thereof, including all brokerage commissions, legal expenses, reasonable attorneys’
fees, employees’ expenses, costs of Alterations and expenses and preparation for reletting. 

  

	 	(ii)	 If Landlord exercises its remedy under Paragraph 19(a)(i), then Tenant shall, until the end of what would have been the Term in the absence of the termination of
the Lease, and whether or not any of the Premises shall have been relet, be liable to Landlord for, and shall pay to Landlord, as liquidated and agreed current damages all Monetary Obligations which would be payable under this Lease by Tenant in the
absence of such termination less the net proceeds, if any, of any reletting pursuant to Paragraph 19(a)(ii), after deducting from such proceeds all of Landlord’s Costs (including the items listed in the last sentence of Paragraph 19(b)(i)
hereof) incurred in connection with such repossessing and reletting; provided, that if Landlord has not relet the Premises, such Costs of Landlord shall be considered to be Monetary Obligations payable by Tenant. Tenant shall be and remain liable
for all sums 

  

 24 

	 	 
aforesaid, and Landlord may recover such damages from Tenant and institute and maintain successive actions or legal proceedings against Tenant for the
recovery of such damages. Nothing herein contained shall be deemed to require Landlord to wait to begin such action or other legal proceedings until the date when the Term would have expired by its own terms had there been no such Event of Default.

  
 (c) Notwithstanding
anything to the contrary herein contained, in lieu of or in addition to any of the foregoing remedies and damages, Landlord may exercise any remedies and collect any damages available to it at law or in equity. If Landlord is unable to obtain full
satisfaction pursuant to the exercise of any remedy, it may pursue any other remedy which it has hereunder or at law or in equity. 
  
 (d) If any Law shall validly limit the amount of any damages provided for herein to an amount which is less than the amount agreed to
herein, Landlord shall be entitled to the maximum amount available under such Law. 
  
 (e) No termination of this Lease, repossession or reletting of any of the Premises, exercise of any remedy or collection of any damages
pursuant to this Paragraph 20 shall relieve Tenant of any Surviving Obligations. 
  
 (f) WITH RESPECT TO ANY REMEDY OR PROCEEDING OF LANDLORD OR TENANT HEREUNDER, LANDLORD AND TENANT HEREBY WAIVES THE SERVICE OF NOTICE
WHICH MAY BE REQUIRED BY ANY APPLICABLE LAW AND ANY RIGHT TO A TRIAL BY JURY. 
  
 (g) Upon the occurrence of any Event of Default, Landlord shall have the right (but no obligation) to perform any act required of Tenant hereunder and, if performance of such act requires that Landlord enter the
Premises, Landlord may enter the Premises for such purpose 
  
 (h) No failure of Landlord (i) to insist at any time upon the strict performance of any provision of this Lease or (ii) to exercise any option, right, power or remedy contained in this Lease shall be construed as a
waiver, modification or relinquishment thereof. A receipt by Landlord of any sum in satisfaction of any Monetary Obligation with knowledge of the breach of any provision hereof shall not be deemed a waiver of such breach, and no waiver by Landlord
of any provision hereof shall be deemed to have been made unless expressed in a writing signed by Landlord. 
  
 (i) Tenant hereby waives and surrenders, for itself and all those claiming under it, including creditors of all kinds, (i) any right and
privilege which it or any of them may have under any present or future Law to redeem any of the Premises or to have a continuance of this Lease after termination of this Lease or of Tenant’s right of occupancy or possession pursuant to any
court order or any provision hereof, and (ii) the benefits of any present or future Law which exempts property from liability for debt or for distress for rent. 
  

 25 

 (j) Except as otherwise provided herein, all remedies are cumulative and concurrent and
no remedy is exclusive of any other remedy. Each remedy may be exercised at any time an Event of Default has occurred and is continuing and may be exercised from time to time. No remedy shall be exhausted by any exercise thereof. 
  

	24.	NOTICES. 

  
 All notices, demands, requests, consents, approvals, offers, statements and other instruments or communications required or permitted to be given pursuant to the provisions of this Lease shall be in writing and shall
be deemed to have been given and received for all purposes when delivered in person or by a commercially reliable 24-hour delivery service or three (3) business days after being deposited in the United States mail, by registered or certified mail,
return receipt requested, postage prepaid, addressed to the other party at its address stated in Fundamental Lease Terms above or when delivery is refused. For the purposes of this Paragraph, any party may substitute another address stated above (or
substituted by a previous notice) for its address by giving fifteen (15) days’ notice of the new address to the other party, in the manner provided above. 
  

	25.	ESTOPPEL CERTIFICATE. 

  
 At any time upon not less than ten (10) business days’ prior written request by either Landlord or Tenant (the “Requesting Party”) to the other
party (the “Responding Party”), the Responding Party shall deliver to the Requesting Party a statement in writing, executed by an authorized officer of the Responding Party, certifying (a) that, except as otherwise specified, this
Lease is unmodified and in full force and effect, (b) the dates to which Basic Rent, Additional Rent and all other Monetary Obligations have been paid, (c) that, to the knowledge of the signer of such certificate and except as otherwise specified,
no default by either Landlord or Tenant exists hereunder, (d) such other matters as the Requesting Party may reasonably request, and (e) if Tenant is the Responding Party that, except as otherwise specified, there are no proceedings pending or, to
the knowledge of the signer, threatened, against Tenant before or by an court or administrative agency which, if adversely decided, would materially and adversely affect the financial condition and operations of Tenant. Any such statements by the
Responding Party may be relied upon by the Requesting Party, any Person whom the Requesting Party notifies the Responding Party in its request for the Certificate is an intended recipient or beneficiary of the Certificate, any Lender or their
assignees and by any prospective purchaser or mortgagee of any of the Premises. Any certificate required under this Paragraph 25 and delivered by Tenant shall state that, in the opinion of each person signing the same, he has made such examination
or investigation as is necessary to enable him to express an informed opinion as to the subject matter of such certificate, and shall briefly state the nature of such examination or investigation. 
  

	26.	SURRENDER. 

  
 Upon the expiration or earlier termination of this Lease, Tenant shall peaceably leave and surrender the Premises, is applicable, to Landlord in the same condition in which the Premises, if applicable, was at the
commencement of this Lease, except fire or other casualty if Tenant has no obligation to restore as repaired, rebuilt, restored, altered, replaced or added to as permitted or required by any provision of this Lease, and except for ordinary wear and
tear. Upon such surrender, Tenant shall (a) remove from the Premises, if applicable, all property which is owned by Tenant or third parties other than Landlord and (b) repair any damage caused by such removal. Property not so removed shall become
the property of Landlord, and Landlord may thereafter cause such property to be removed from the Premises or Affected Premises, if 

  

 26 

 
applicable. The cost of removing and disposing of such property and repairing any damage to any of the Premises, if applicable, caused by such removal shall
be paid by Tenant to Landlord upon demand. Landlord shall not in any manner or to any extent be obligated to reimburse Tenant for any such property which becomes the property of Landlord pursuant to this Paragraph 23. 
  

	27.	BOOKS AND RECORDS. 

  
 (a) Tenant shall keep adequate records and books of account with respect to the finances and business of Tenant generally and with respect
to the Premises, in accordance with generally accepted accounting principles (“GAAP”) consistently applied, and shall permit Landlord and Lender by their respective agents, accountants and attorneys, upon reasonable notice to Tenant
in accordance with Paragraph 3(b), to visit and inspect the Premises and examine (and make copies of) the records and books of account and to discuss the finances and business with the officers of Tenant, at such reasonable times as may be requested
by Landlord. Upon the request of Lender or Landlord (either telephonically or in writing), Tenant shall provide the requesting party with copies of any information to which such party would be entitled in the course of a personal visit. 

 
 (b) Tenant shall deliver to Landlord and to Lender (i)_
within ninety (90) days of the close of each fiscal year, annual audited financial statements of Tenant prepared by nationally recognized independent certified public accountants (provided Landlord hereby approves PriceWaterhouse) and (ii) within
ten (10) days after completion, Tenant’s annual budget. Tenant shall also furnish to Landlord within forty-five (45) days after the end of each of the three remaining quarters unaudited financial statements and all other quarterly reports of
Tenant, certified by Tenant’s chief financial officer, and all filings, if any, of Form 10-K, Form 10-Q and other required filings with the Securities and Exchange Commission pursuant to the provisions of the Securities Exchange Act of 1934, as
amended, or any other Law. All financial statements of Tenant shall be prepared in accordance with GAAP consistently applied. All annual financial statements shall be accompanied (i) by an opinion of said accountants stating that (A) there are no
qualifications as to the scope of the audit and (B) the audit was performed in accordance with GAAP and (ii) by the affidavit of the president or a vice president of Tenant, dated within five (5) days of the delivery of such statement, stating that
(C) the affiant knows of no Event of Default, or event which, upon notice or the passage of time or both, would become an Event of Default which has occurred and is continuing hereunder or, if any such event has occurred and is continuing,
specifying the nature and period of existence thereof and what action Tenant has taken or proposes to take with respect thereto and (D) except as otherwise specified in such affidavit, that Tenant has fulfilled all of its obligations under this
Lease which are required to be fulfilled on or prior to the date of such affidavit. 
  

	28.	NON-RECOURSE AS TO LANDLORD. 

  
 Anything contained herein to the contrary notwithstanding, any claim based on or in respect of any liability of Landlord under this Lease shall be limited to actual
damages and shall be enforced only against the Premises and not against any other assets, properties or funds of (a) Landlord, (b) any director, member, officer, general partner, limited partner, employee or agent of Landlord, or any general partner
of Landlord, any of its general partners or shareholders (or 

  

 27 

 
any legal representative, heir, estate, successor or assign of any thereof), (c) any predecessor or successor partnership or corporation (or other entity) of
Landlord, or any of its general partners, either directly or through Landlord or its general partners or any predecessor or successor partnership or corporation or their shareholders, officers, directors, employees or agents (or other entity), or
(d) any other Person affiliated with any of the foregoing, or any director, officer, employee or agent of any thereof). 
  

	29.	FINANCING; SALE. 

  
 (a) Tenant agrees to pay all costs and expenses incurred by Landlord in connection with the purchase, sale, leasing, initial financing,
refinancing and sale of the Premises including, without limitation, the cost of appraisals, due diligence, environmental reports, title insurance, brokerage and placement fees, surveys, legal fees and expenses, loan placement fees, and Lender’s
commitment fees; provided, that notwithstanding the foregoing, or anything in this Lease to the contrary, (i) such costs in connection with the acquistion and initial financing of the Premises shall not exceed $100,000 and (ii) no such costs and
expenses shall be payable with respect to (x) a financing after the initial financing and four (4) subsequent refinancings or (y) a sale of the Premises after the third (3rd) sale of the Premises. 
  
 (b) Tenant agrees to pay, within three (3) business days of written demand thereof, any cost, charge or expense (other than principal and
interest) imposed upon Landlord by Lender which is not caused by the negligence or willful misconduct of Landlord and which is not otherwise reimbursed by Tenant to Landlord pursuant to any other provision of this Lease. 
  
 (c) If Landlord desires to obtain or refinance any Loan,
Tenant shall negotiate in good faith with Landlord concerning any request made by any Lender or proposed Lender for changes or modifications in this Lease. In particular, Tenant shall agree, upon request of Landlord, to supply any such Lender with
such notices and information as Tenant is required to give to Landlord hereunder and to extend the rights of Landlord hereunder to any such Lender and to consent to such financing if such consent is requested by such Lender. Tenant shall provide any
other consent or statement and shall execute any and all other documents that such Lender reasonably requires in connection with such financing, including any environmental indemnity agreement and subordination, non-disturbance and attornment
agreement, so long as the same do not materially adversely affect any right, benefit or privilege of Tenant under this Lease or materially increase Tenant’s obligations under this Lease. Such subordination, nondisturbance and attornment
agreement may require Tenant to confirm that (a) Lender and its assigns will not be liable for any misrepresentation, act or omission of Landlord and (b) Lender and its assigns will not be subject to any counterclaim, demand or offsets which Tenant
may have against Landlord. 
  

	30.	SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT. 

  
 This Lease and Tenant’s interest hereunder shall be subordinate to any mortgage or other security instrument hereafter placed upon the Premises by Landlord, and to
any and all advances made or to be made thereunder, to the interest thereon, and all renewals, replacements and extensions thereof, provided that any such mortgage or other security instrument (or a separate instrument in recordable form duly
executed by the holder of any such mortgage or other 

  

 28 

 
security instrument and delivered to Tenant) shall provide for the recognition of this Lease and all Tenant’s rights hereunder unless and until an Event
of Default exists or Landlord shall have the right to terminate this Lease pursuant to any applicable provision hereof. 
  

	31.	TAX TREATMENT; REPORTING. 

  
 Landlord and Tenant each acknowledge that each shall treat this transaction as a true lease for state law purposes and shall report this transaction as a Lease for
Federal income tax purposes. For Federal income tax purposes each shall report this Lease as a true lease with Landlord as the owner of the Premises and Equipment and Tenant as the lessee of such Premises and Equipment including: (i) treating
Landlord as the owner of the property eligible to claim depreciation deductions under Section 167 or 168 of the Internal Revenue Code of 1986 (the “Code”) with respect to the Premises and Equipment, (ii) Tenant reporting its Rent
payments as rent expense under Section 12 of the Code, and (iii) Landlord reporting the Rent payments as rental income. 
  

	32.	SECURITY DEPOSIT. 

  
 (a) Tenant shall deliver to Landlord upon execution hereof a security deposit (the “Security Deposit”) in the amount of
$156,000. As used herein, the term “Security Deposit” shall include, in addition, any letter of credit provided pursuant to Paragraph 7(b). The Security Deposit shall be in the form of U.S. dollars or an irrevocable letter of credit (the
“Letter of Credit”) and shall be issued by a bank acceptable to Landlord and in form and substance satisfactory to Landlord. The Security Deposit shall remain in full force and effect for the balance of the Term as security for the
payment by Tenant of the Rent and all other charges or payments to be paid hereunder and the performance of the covenants and obligations contained herein, and the Letter of Credit shall be renewed at least thirty (30) days prior to any expiration
thereof. If Tenant fails to renew the Letter of Credit by such date, time being of the essence, Landlord shall have the right at any time after the thirtieth (30th) day before such expiration date to draw on the Letter of Credit and to deposit the
proceeds of the Letter of Credit in any account for the benefit of Landlord or to declare an Event of Default, and no interest thereon shall be due and payable to Tenant. 
  
 (b) If at any time an Event of Default shall have occurred and be continuing, Landlord shall be entitled, at
its sole discretion, to draw on the Security Deposit and to apply the proceeds in payment of (i) any Rent or other charges for the payment of which Tenant shall be in default, (ii) prepaid Basic Rent, (iii) any expense incurred by Landlord in curing
any default of Tenant, and/or (iv) any other sums due to Landlord in connection with any default or the curing thereof, including, without limitation, any damages incurred by Landlord by reason of such default, including any rights of Landlord under
Paragraph 19 or to do any combination of the foregoing, all in such order or priority as Landlord shall so determine in its sole discretion and Tenant acknowledges and agrees that such proceeds shall not constitute assets or funds of Tenant or its
estate, or be deemed to be held in trust for Tenant, but shall be, for all purposes, the property of Landlord (or Lender, to the extent assigned). Tenant further acknowledges and agrees that (1) Landlord’s application of the proceeds of the
Security Deposit towards the payment of Basic Rent, Additional Rent or the reduction of any damages due Landlord in accordance with Paragraph 20 of this Lease, constitutes a fair and reasonable use of such proceeds, and (2) the application of such
proceeds by Landlord towards the payment of Basic Rent, Additional Rent or any other sums due under this Lease shall not constitute a 

  

 29 

 
cure by Tenant of the applicable default provided that an Event of Default shall not exist if Tenant restores the Security Deposit to its full amount within
five (5) days and in accordance with the requirements of this Paragraph 28, so that the original amount of the Security Deposit shall be again on deposit with Landlord. 
  
 (c) At the expiration of the Term and so long as no Event of Default exists the Security Deposit shall be
returned to Tenant. 
  
 Landlord shall have the right to designate Lender or any
other holder of a Mortgage as the beneficiary of the Letter of Credit or Cash Security Deposit during the term of the applicable Loan, and such Lender or other holder of a Mortgage shall have all of the rights of Landlord under this Paragraph 28.
Tenant covenants and agrees to execute such agreements, consents and acknowledgments as may be requested by Landlord from time to time to change the holder of the Security Deposit or Cash Security Deposit as hereinabove provided. 
  

	33.	OPTION TO PURCHASE. 

  
 (a) So long as no Event of Default shall have occurred and then be continuing hereunder, Landlord does hereby give and grant to Tenant the option to
purchase the Premises for a purchase price (the “Purchase Price”) equal to the greater of $1,300,000 or Fair Market Value (as hereafter defined) on the scheduled Expiration Date of the Term. If Tenant intends to exercise such option,
Tenant shall give written notice to Landlord to such effect, accompanied by an earnest money deposit equal to $100,000.00 (the “Option Notice”) not later than twelve (12) months prior to the scheduled Expiration Date. Promptly upon receipt
of such notice by Landlord, the parties shall commence to determine Fair Market Value NOTWITHSTANDING THE FOREGOING, TENANT HEREBY ACKNOWLEDGES AND AGREES THAT TIME SHALL BE OF THE ESSENCE WITH RESPECT TO THE TIMING OF THE DELIVERY OF THE OPTION
NOTICE BY TENANT. 
  
 (b) If Tenant shall exercise the foregoing
option to purchase the Premises, on the later to occur of (i) the Option Purchase Date or (ii) the date when Tenant has paid the Purchase Price and has satisfied all other Monetary Obligations, Landlord shall convey the Premises to Tenant in
accordance with Paragraph 30; provided, that if an Event of Default has occurred and is continuing at, or any time following Tenant’s notice of exercise of option, Landlord, at its sole option, may terminate Tenant’s option to purchase
hereunder. IF THIS LEASE SHALL TERMINATE FOR ANY REASON PRIOR TO THE END OF THE DATE ORIGINALLY FIXED HEREIN FOR THE EXPIRATION OF THE TERM, OR IF TENANT SHALL FAIL TO TIMELY GIVE THE OPTION NOTICE, THE OPTION PROVIDED IN THIS PARAGRAPH 29 AND ANY
EXERCISE THEREOF BY TENANT SHALL AUTOMATICALLY CEASE AND TERMINATE AND SHALL BE NULL AND VOID. IN SUCH EVENT TENANT SHALL EXECUTE A QUIT CLAIM DEED AND SUCH OTHER DOCUMENTS AS LANDLORD SHALL REASONABLY REQUEST EVIDENCING THE TERMINATION OF ITS
PURCHASE OPTION HEREUNDER. 
  

	34.	PROCEDURES UPON PURCHASE. 

  
 (a) If the Premises are purchased by Tenant pursuant to any provision of this Lease, Landlord need not convey any better title thereto than that which was
conveyed to Landlord, and Tenant or its designee shall accept such title, subject, however, to the Permitted Encumbrances 

  

 30 

 
and to all other liens, exceptions and restrictions on, against or relating to any of the Premises to all applicable Laws, but free of the lien of and
security interest created by any Mortgage or Assignment and liens, exceptions and restrictions on, against or relating to the Premises which have been created by or resulted from acts of Landlord after the date of this Lease, unless the same are
Permitted Encumbrances or customary utility easements benefiting the Premises or were created with the concurrence of Tenant or as a result of a default by Tenant under this Lease. 
  
 (b) Upon the date fixed for any such purchase of the Premises pursuant to any provision of this Lease (any such date the
“Purchase Date”), Tenant shall pay to Landlord, or to any Person to whom Landlord directs payment, the Purchase Price, and Landlord shall deliver to Tenant (i) a special or limited warranty deed with covenants only as to grantor’s
acts (in the required statutory form for the State of Minnesota) which describes the premises being conveyed and conveys the title thereto as provided in Paragraph 30(a), and (ii) such other instruments as shall be necessary to transfer to Tenant or
its designee any other property. 
  
 (c) To the extent required,
any warranties previously assigned or sold to Landlord shall be reassigned or reconveyed to Tenant, and any prepaid Basic Rent paid to Landlord shall be prorated as of the Purchase Date, and the prorated unapplied balance shall be deducted from the
Purchase Price due to Landlord; provided, that no apportionment of any impositions shall be made upon any such purchase. 
  

	35.	DETERMINATION OF FAIR MARKET VALUE. 

  
 (a) Whenever a determination of Fair Market Value is required pursuant to any provision of this Lease, such Fair Market Value shall be determined in
accordance with the following procedure: 
  
 (i)
Landlord and Tenant shall endeavor to agree upon such Fair Market Value within thirty (30) days after the date (the “Applicable Initial Date”) on which Tenant provides Landlord with an Option Notice to purchase the Premises pursuant
to Paragraph 29. 
  
 (ii) If the parties shall
not have signed such agreement within thirty (30) days after the Applicable Initial Date, Tenant shall within fifty (50) days after the Applicable Initial Date select an appraiser and notify Landlord in writing of the name, address and
qualifications of such appraiser. Within twenty (20) days following Landlord’s receipt of Tenant’s notice of the appraiser selected by Tenant, Landlord shall select an appraiser and notify Tenant of the name, address and qualifications of
such appraiser. Such two appraisers shall endeavor to agree upon Fair Market Value based on a written appraisal made by each of them as of the Relevant Date (and given to Landlord by Tenant). If such two appraisers shall agree upon a Fair Market
Value, the amount of such Fair Market Value as so agreed shall be binding and conclusive upon Landlord and Tenant. 
  
 (iii) If such two appraisers shall be unable to agree upon a Fair Market Value within twenty (20) days after the selection of an appraiser
by Landlord, then such appraisers shall advise Landlord and Tenant of their respective determination of Fair Market Value and shall select a third appraiser to make the determination of Fair Market Value. The selection of the third appraiser shall
be binding and conclusive upon Landlord and Tenant. 
  

 31 

 (iv) If such two appraisers shall be unable to agree upon the designation of a third
appraiser within ten (10) days after the expiration of the twenty (20) day period referred to in clause (iii) above, or if such third appraiser does not make a determination of Fair Market Value within twenty (20) days after his selection, then such
third appraiser or a substituted third appraiser, as applicable, shall, at the request of either party hereto (with respect to the other party), be appointed by the American Arbitration Association in Minneapolis, MN. The determination of Fair
Market Value made by the third appraiser appointed pursuant hereto shall be made within twenty (20) days after such appointment. 
  
 (v) If a third appraiser is selected, Fair Market Value shall be the average of the determination of Fair Market Value made by the third
appraiser and the determination of Fair Market Value made by the appraiser (selected pursuant to Paragraph 31(a)(ii) hereof) whose determination of Fair Market Value is nearest to that of the third appraiser. Such average shall be binding and
conclusive upon Landlord and Tenant. 
  
 (vi) All
appraisers selected or appointed pursuant to this Paragraph 31(a) shall (A) be independent qualified MAI appraisers (B) have no right, power or authority to alter or modify the provisions of this Lease, (C) utilize the definition of Fair Market
Value hereinabove set forth above, and (D) be registered in the State if the State provides for or requires such registration. 
  
 (vii) The Cost of the procedure described in this Paragraph 31(a) above shall be paid one-half by Tenant and one-half by Landlord.

  
 (b) If, by virtue of any delay, Fair Market Value is not
determined by the expiration or termination of the then current Term, then the date on which the Term would otherwise expire or terminate shall be extended with respect to the Premises, to the date specified for termination in the particular
provision of this Lease pursuant to which the determination of Fair Market Value is being made. 
  
 In determining Fair Market Value as defined in clause (b) of the definition of Fair Market Value, the appraisers shall add (a) the present value of the
Rent for the remaining Term provided herein (with assumed increases in the CPI to be determined by the appraisers) using a discount rate (which may be determined by an investment banker retained by each appraiser) based on the creditworthiness of
Tenant and (b) the present value of the Premises as of the end of such Term. The appraisers shall further assume that no default then exists under the Lease, that Tenant has complied (and will comply) with all provisions of the Lease. 
  

	36.	MISCELLANEOUS. 

  
 (a) Any act which Landlord is permitted to perform under this Lease may be performed at any time and from time to time by Landlord or any
person or entity designated by Landlord. Each appointment of Landlord as attorney-in-fact for Tenant hereunder is irrevocable and coupled with an interest. Unless with respect to Paragraph 17 or as otherwise stated in this Lease, Landlord shall not
unreasonably withhold or delay its consent whenever such consent is required under this Lease. Time is of the essence with respect to the performance by Tenant of its obligations under this Lease. 
  

 32 

 (b) Landlord shall in no event be construed for any purpose to be a partner, joint
venturer or associate of Tenant or of any subtenant, operator, concessionaire or licensee of Tenant with respect to any of the Premises or otherwise in the conduct of their respective businesses. 
  
 (c) This Lease and any documents which may be executed by
Tenant on or about the effective date hereof at Landlord’s request constitute the entire agreement between the parties and supersede all prior understandings and agreements, whether written or oral, between the parties hereto relating to the
Premises and the transactions provided for herein. Landlord and Tenant are business entities having substantial experience with the subject matter of this Lease and have each fully participated in the negotiation and drafting of this Lease.
Accordingly, this Lease shall be construed without regard to the rule that ambiguities in a document are to be construed against the drafter. 
  
 (d) This Lease may be modified, amended, discharged or waived only by an agreement in writing signed by the party against whom enforcement
of any such modification, amendment, discharge or waiver is sought. 
  
 (e) The covenants of this Lease shall run with the land and bind Tenant, its successors and assigns and all present and subsequent encumbrancers and subtenants of any of the Premises, and shall inure to the benefit of
Landlord, its successors and assigns. If there is more than one Tenant, the obligations of each shall be joint and several. 
  
 (f) Notwithstanding any provision in this Lease to the contrary, all Surviving Obligations of Tenant shall survive the expiration or
termination of this Lease with respect to the Premises. 
  
 (g) If any one or more of the provisions contained in this Lease shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 
  
 (h) This Lease shall be governed by and construed and enforced in accordance with the laws of the State of Minnesota. 
  

 33 

 IN WITNESS WHEREOF, Landlord and Tenant have caused this Lease to be duly executed under seal as of the day and year
first above written. 
  

			
	LANDLORD:
	 CONTINENTAL HASTINGS, LLC,

	 a Minnesota limited liability company

		
	 By:
	 	 Bradley A. Hoyt

	 	 	 Bradley A. Hoyt, President

	
	TENANT:
	PW POLY CORP.
	 a Minnesota corporation

		
	 By:
	 	 Dobson West

	 	 	 Dobson West, Secretary

  

 34 

 EXHIBIT A 
 PREMISES 
  
 LEGAL
DESCRIPTION 
  
 Adams County Nebraska Property

  
 PARCEL 1 
  
 All of Lots One (1) through Twenty-Three (23) inclusive, Lots Twenty-Eight (28) through
Thirty (30) inclusive, and Thirty Three (33) through (38) inclusive, all in Pollard’s Addition to the City of Hastings, Adams County, Nebraska, according to the recoded plat thereof. 
  
 PARCEL 2 
  

Lot Eleven (11) and the South Forty-Three (43) feet of Lot Ten (10), Block Twelve (12), Prospect Park Addition to the City of Hastings, and 
  
 That part of vacated Woodland Avenue lying between the North line of Lot Thirty-Six (36),
Pollard’s Addition, extended East, and the Northeasterly extension of the Southerly line of Lot Thirty-Eight (38), Pollard’s Addition to the City of Hastings; and that portion of vacated Barnes Avenue lying between Easterly extensions of
the North line of Lot Sixteen (16), Block Thirteen (13), and the Northeasterly extension of the South line of Lot Sixteen (16), Block Thirteen (13), Palmer’s Prospect Park Addition to the City of Hastings, Adams County, Nebraska. 
  
 PARCEL 3 
  
 The East Eighty-Seven (E 87) feet of the South Half (S 1/2) of Block One (1) S.P.
Cole’s Addition to the City of Hastings, Adams County, Nebraska, according to the recorded plat thereof. 
  

 EXHIBIT B 
 MACHINERY AND EQUIPMENT 
  
 All fixtures,
machinery, apparatus, equipment, fittings and appliances of every kind and nature whatsoever now or hereafter affixed or attached to or installed in any of the Premises (except as hereafter provided), including all electrical, anti-pollution,
heating, lighting (including hanging fluorescent lighting), incinerating, power, air cooling, air conditioning, humidification, sprinkling, plumbing, lifting, cleaning, fire prevention, fire extinguishing and ventilating systems, devices and
machinery and all engines, pipes, pumps, tanks (including exchange tanks and fuel storage tanks), motors, conduits, ducts, steam circulation coils, blowers, steam lines, compressors, oil burners, boilers, doors, windows, loading platforms, lavatory
facilities, stairwells, fencing (including cyclone fencing), passenger and freight elevators, overhead cranes and garage units, together with all additions thereto, substitutions therefor and replacements thereof required or permitted by this Lease,
but excluding all personal property and all trade fixtures, machinery, office, manufacturing and warehouse equipment which are not necessary to the operation of the buildings which constitute part of the Premises for the uses permitted under the
Lease. 
  
 Machinery and Equipment set forth above shall
specifically exclude all personal property and all trade fixtures, machinery, office, manufacturing and warehouse equipment which are not necessary to the operation of the buildings which constitute part of the Premises for the uses permitted under
this Lease as buildings, including, without limitation, all equipment used in Tenant’s material handling, blending, fabricating and reclaim processes and all electrical transformers owned by the utility company. 
  

 EXHIBIT C 
 PERMITTED ENCUMBRANCES 
  

 EXHIBIT D 
 BASIC RENT PAYMENTS 
  
 37.
Basic Rent. Subject to the adjustments provided for in Paragraphs 3, 4 and 5 below, Basic Rent payable in respect of the Term shall be $156,000.00 per annum, payable monthly, in advance on each Basic Rent Payment Date, in equal
installments of $13,000.00 each. 
  
 38. CPI Adjustments to
Basic Rent. The Basic Rent shall be subject to adjustment, in the manner hereinafter set forth, for increases in the index known as United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index, All Urban Consumers,
United States City Average, All Items, (1982-84=100) (“CPI”) or the successor index that most closely approximates the CPI. If the CPI shall be discontinued with no successor or comparable successor index, Landlord and Tenant shall
attempt to agree upon a substitute index or formula, but if they are unable to so agree, then the matter shall be determined by arbitration in accordance with the rules of the American Arbitration Association then prevailing in Minneapolis,
Minnesota. Arbitrator shall be a retired judge or attorney with real estate experience; arbitrator will provide for reasonably discovery. Any decision or award resulting from such arbitration shall be final and binding upon Landlord and Tenant and
judgment thereon may be entered in any court of competent jurisdiction. In no event will the Basic Rent for the First Rent Adjustment (as defined in Paragraph 4 below) as adjusted by the CPI adjustment be less than the Basic Rent in effect for the
year period immediately preceding the First Rent Adjustment, and in no event will the Basic Rent for each Subsequent Rent Adjustment (as defined in Paragraph 4 below) be less than the Basic Rent in effect for the year period immediately preceding
each Subsequent Rent Adjustment after the First Rent Adjustment. 
  
 39.
Effective Dates of CPI Adjustments. Basic Rent shall not be adjusted to reflect changes in the CPI until the second (2nd) anniversary of the Basic Rent Payment Date on which the first full monthly installment of Basic Rent shall be
due and payable (the “First Full Basic Rent Payment Date”). As of the second (2nd) anniversary of the First Full Basic Rent Payment Date (the “First Rent Adjustment”) and every two years thereafter (each such
adjustment a “Subsequent Rent Adjustment”), Basic Rent shall be adjusted to reflect increases in the CPI during the most recent two (2) year period immediately preceding the First Rent Adjustment and the most recent two (2) year
period immediately preceding each Subsequent Rent Adjustment (the date of the First Rent Adjustment and the date of each Subsequent Rent Adjustment being hereinafter referred to as the “Basic Rent Adjustment Date”). 
  
 40. Method of Adjustment for CPI Adjustment. 
  
 (a) As of each Basic Rent Adjustment Date when the average
CPI determined in clause (i) below exceeds the Beginning CPI (as defined in this Paragraph 4(a)), the Basic Rent in effect immediately prior to the applicable Basic Rent Adjustment Date shall be multiplied by a fraction, the numerator of which shall
be the difference between (i) the average CPI for the three (3) most recent calendar months (the “Prior Months”) ending prior to such Basic Rent Adjustment Date for which the CPI has been published on or before the forty-fifth
(45th) day preceding such Basic Rent Adjustment Date and (ii) the Beginning CPI, and the denominator of which shall be the Beginning CPI. An amount equal to the sum determined in accordance with preceding sentence shall be added to the Basic Rent in
effect immediately prior to such Basic Rent Adjustment Date. As used herein, “Beginning CPI” shall mean the average CPI for the three (3) calendar 

  

 
months corresponding to the Prior Months, but occurring two (2) years earlier with respect to the First Rent Adjustment and two (2) years earlier with
respect to each Subsequent Rent Adjustment. If the average CPI determined in clause (i) is the same or less than the Beginning CPI, the Basic Rent will remain the same for the ensuing two (2) year period with respect to the First Rent Adjustment and
the ensuing two (2) year period with respect to each Subsequent Rent Adjustment. 
  
 (b) Effective as of a given Basic Rent Adjustment Date, Basic Rent payable under this Lease until the next succeeding Basic Rent
Adjustment Date shall be the Basic Rent in effect after the adjustment provided for as of such Basic Rent Adjustment Date. 
  
 (c) Notice of the new annual Basic Rent shall be delivered to Tenant on or before the tenth (10th) day preceding each Basic Rent
Adjustment Date, but any failure to do so by Landlord shall not be or be deemed to be a waiver by Landlord of Landlord’s rights to collect such sums. Tenant shall pay to Landlord, within ten (10) days after a notice of the new annual Basic Rent
is delivered to Tenant, all amounts due from Tenant, but unpaid, because the stated amount as set forth above was not delivered to Tenant at least ten (10) days preceding the Basic Rent Adjustment Date in question. 
  

 EXHIBIT E 
 DEFINITIONS 
  
 “Alterations”
shall mean all changes, additions, improvements to, all alterations, reconstructions, renewals, or removals of the Improvements or Equipment, both interior and exterior, structural and non-structural, and ordinary and extraordinary. 
  
 “Assignment” shall mean any assignment of rents and leases from Landlord to a
Lender which (a) encumbers any of the Premises and (b) secures Landlord’s obligation to repay a Loan, as the same may be amended, supplemented or modified from time to time. 
  
 “Casualty” shall mean any damage to or destruction of or which affects the Premises. 
  
 “Condemnation” shall mean a Taking and/or a Requisition. 
  
 “Condemnation Notice” shall mean notice or knowledge of the institution of or
intention to institute any proceeding for Condemnation. 
  
 “Consolidated
EBIT” shall mean, for any period, Consolidated Net Income, before total interest expense and income taxes of Tenant and its Subsidiaries determined on a consolidated basis. 
  
 “Consolidated EBITDA” shall mean, for any period, Consolidated EBIT, adjusted by adding thereto the amount of all depreciation
expense and amortization expense plus non-cash compensation expenses that were deducted in determining Consolidated EBIT for such period. 
  
 “Consolidated Net Income” shall mean, for any period, the net income (or loss), after provisions for income taxes (other than with respect to net income taxes
attributable to items that are excluded from the calculation of Consolidated Net Income in the period), of the Tenant and its Subsidiaries on a consolidated basis for such period taken as a single accounting period in conformity with GAAP but
excluding in any event (a) any extraordinary gains (net of extraordinary losses) but with giving effect to gains or losses from sales of assets sold in the ordinary course of business; (b) net earnings of any other Person (other than a Subsidiary)
in which the Tenant or any consolidated Subsidiary has an ownership interest, except to the extent such net earnings shall have actually been received by the Tenant or such consolidated Subsidiary in the form of cash distributions; (c) any portion
of the net earnings of any consolidated Subsidiary which is unavailable for payment of dividends to the Tenant or any other consolidated Subsidiary by reason of the provisions of any agreement or applicable law or regulation; (d) earnings resulting
from any reappraisal, revaluation or write-up of assets; (e) the income (or loss) of any Person accrued prior to the date it becomes a Subsidiary of such Person or is merged into or consolidated with such Person or any of its Subsidiaries or that
Person’s assets are acquired by such Person or any of its Subsidiaries; (f) the aggregate net gain (or loss) during such period arising from the revaluation (but not sale) of readily marketable securities; (g) the income (or loss) from
discontinued operations; and (h) non-cash charges and cash charges. 
  
 “Costs” shall mean all reasonable costs and expenses incurred by a Person or associated with such transaction, including without limitation, reasonable attorneys’ fees and expenses, court costs, brokerage fees, escrow fees,
title insurance premiums, mortgage commitment fees, mortgage points, recording fees and transfer taxes, as the circumstances require. 
  
 “CPI” shall mean CPI as defined in Exhibit “D” hereto. 
  

“Environmental Law” shall mean (i) whenever enacted or promulgated, any applicable federal, state, foreign and local law, statute, ordinance, rule,
regulation, license, permit, authorization, approval, consent, court order, judgment, decree, injunction, code, requirement or agreement with any governmental entity, (x) relating to pollution (or the cleanup thereof), or the protection of air,
water vapor, surface water, groundwater, drinking water supply, land (including land surface or subsurface), plant, aquatic and animal life from injury caused by a Hazardous Substance or (y) concerning exposure to, or the use, containment, storage,
recycling, reclamation, reuse, treatment, generation, discharge, transportation, processing, handling, labeling, production, disposal or remediation of any Hazardous Substance, Hazardous Condition or Hazardous Activity, in each case as amended and
as now or hereafter in effect, and (ii) any common law or equitable doctrine (including, without limitation, injunctive relief and tort doctrines such as negligence, nuisance, trespass and strict liability) that may impose 

  

 
liability or obligations or injuries or damages due to or threatened as a result of the presence of, exposure to, or ingestion of, any Hazardous Substance.
The term Environmental Law includes, without limitation, the federal Comprehensive Environmental Response Compensation and Liability Act of 1980, the Superfund Amendments and Reauthorization Act, the federal Water Pollution Control Act, the federal
Clean Air Act, the federal Clean Water Act, the federal Resources Conservation and Recovery Act of 1976 (including the Hazardous and Solid Waste Amendments to RCRA), the federal Solid Waste Disposal Act, the federal Toxic Substance Control Act, the
federal Insecticide, Fungicide and Rodenticide Act, the federal Occupational Safety and Health Act of 1970, the federal National Environmental Policy Act and the federal Hazardous Materials Transportation Act, each as amended and as now or hereafter
in effect and any similar state or local Law. 
  
 “Environmental
Violation” shall mean (a) any direct or indirect discharge, disposal, spillage, emission, escape, pumping, pouring, injection, leaching, release, seepage, filtration or transporting of any Hazardous Substance at, upon, under, onto or within the
Premises, or from the Premises to the environment, in violation of any Environmental Law or in excess of any reportable quantity established under any Environmental Law or which could result in any liability to Landlord, Tenant or Lender, any
Federal, state or local government or any other Person for the costs of any removal or remedial action or natural resources damage or for bodily injury or property damage, (b) any deposit, storage, dumping, placement or use of any Hazardous
Substance at, upon, under or within the Premises or which extends to any Adjoining Property in violation of any Environmental Law or in excess of any reportable quantity established under any Environmental Law or which could result in any liability
to any Federal, state or local government or to any other Person for the costs of any removal or remedial action or natural resources damage or for bodily injury or property damage, (c) the abandonment or discarding of any barrels, containers or
other receptacles containing any Hazardous Substances in violation of any Environmental Laws, (d) any activity, occurrence or condition which could result in any liability, cost or expense to Landlord or Lender or any other owner or occupier of the
Premises, or which could result in a creation of a lien on the Premises under any Environmental Law or (e) any violation of or noncompliance with any Environmental Law. 
  
 “Federal Funds” shall mean federal or other immediately available funds which at the time of payment are legal tender for the
payment of public and private debts in the United States of America. 
  
 “GAAP” shall mean generally accepted accounting principles in the United States of America as in effect from time to time. 
  
 “Hazardous Activity” means any activity, process, procedure or undertaking which directly or indirectly (i) procures, generates or creates any Hazardous
Substance; (ii) causes or results in (or threatens to cause or result in) the release, seepage, spill, leak, flow, discharge or emission of any Hazardous Substance into the environment (including the air, ground water, watercourses or water
systems), (iii) involves the containment or storage of any Hazardous Substance; or (iv) would cause any of the Premises or any portion thereof to become a hazardous waste treatment, recycling, reclamation, processing, storage or disposal facility
within the meaning of any Environmental Law. 
  
 “Hazardous Condition”
means any condition which would support any claim or liability under any Environmental Law, including the presence of underground storage tanks. 
  
 “Hazardous Substance” means (i) any substance, material, product, petroleum, petroleum product, derivative, compound or mixture, mineral (including asbestos),
chemical, gas, medical waste, or other pollutant, in each case whether naturally occurring, man-made or the by-product of any process, that is toxic, harmful or hazardous or acutely hazardous to the environment or public health or safety or (ii) any
substance supporting a claim under any Environmental Law, whether or not defined as hazardous as such under any Environmental Law. Hazardous Substances include, without limitation, any toxic or hazardous waste, pollutant, contaminant, industrial
waste, petroleum or petroleum-derived substances or waste, radon, radioactive materials, asbestos, asbestos containing materials, urea formaldehyde foam insulation, lead, polychlorinated biphenyls. 
  
 “Insurance Requirements” shall mean the requirements of all insurance policies
maintained in accordance with this Lease. 
  
 “Law” shall mean any
constitution, statute, rule of law, code, ordinance, order, judgment, decree, injunction, rule, regulation, policy, requirement or administrative or judicial determination, even if unforeseen or 

  

 
extraordinary, of every duly constituted governmental authority, court or agency, now or hereafter enacted or in effect. 
  
 “Lease Year” shall mean, with respect to the first Lease Year, the period
commencing on the Commencement Date and ending at midnight on the last day of the twelfth (12th) consecutive calendar month following the month in which the Commencement Date occurred, and each succeeding twelve (12) month period during the Term.

  
 “Legal Requirements” shall mean the requirements of all present and
future Laws (including but not limited to Environmental Laws and Laws related to accessibility to, usability by, and discrimination against, disabled individuals) and all covenants, restrictions and conditions now or hereafter of record which may be
applicable to Tenant or to the Premises, or to the use, manner of use, occupancy, possession, operation, maintenance, alteration, repair or restoration of the Premises, even if compliance therewith necessitates structural changes or improvements or
results in interference with the use or enjoyment of the Premises, or requires Tenant to carry insurance other than as required by this Lease. 
  
 “Lender” shall mean any person or entity (and its respective successors and assigns) which may, on or after the date hereof, make a Loan to Landlord or be the
holder of a Note. 
  
 “Loan” shall mean any loan made by one or more
Lenders to Landlord, which loan is secured by a Mortgage and an Assignment and evidenced by a Note. 
  
 “Monetary Obligations” shall mean Rent and all other sums payable by Tenant under this Lease to Landlord, to any third party on behalf of Landlord or to any Indemnitee. “Mortgage” shall mean any
mortgage or deed of trust from Landlord to a Lender which (a) encumbers any of the Premises and (b) secures Landlord’s obligation to repay a Loan, as the same may be amended, supplemented or modified. 
  
 “Net Award” shall mean (a) the entire award payable to Landlord or Lender by reason
of a Condemnation whether pursuant to a judgment or by agreement or otherwise, or (b) the entire proceeds of any insurance required under clauses (i), (ii) (to the extent payable to Landlord or Lender), (iv), (v) or (vi) of Paragraph 16(a), as the
case may be, less any expenses incurred by Landlord, Lender or Tenant in collecting such award or proceeds. 
  
 “Note” shall mean any promissory note evidencing Landlord’s obligation to repay a Loan, as the same may be amended, supplemented or modified. 
  
 “Partial Casualty” shall mean any Casualty which does not constitute a Termination
Event. 
  
 “Partial Condemnation” shall mean any Condemnation which does
not constitute a Termination Event. 
  
 “Permitted Encumbrances” shall
mean those covenants, restrictions, reservations, liens, conditions and easements and other encumbrances, other than any Mortgage or Assignment, listed on Exhibit “C” hereto (but such listing shall not be deemed to revive any such
encumbrances that have expired or terminated or are otherwise invalid or unenforceable). 
  
 “Person” shall mean an individual, partnership, association, corporation or other entity. 
  
 “Prepayment Premium” shall mean any payment required to be made by Landlord to a Lender under a Note or other document evidencing or securing a Loan (other than
payments of principal and/or interest which Landlord is required to make under a Note or a Mortgage) solely by reason of any prepayment or defeasance by Landlord of any principal due under a Note or Mortgage, and which may, without limitation, take
the form of (i) a “make whole” or yield maintenance clause requiring a prepayment premium or (ii) a defeasance payment (such defeasance payment to be an amount equal to the positive difference between (a) the total amount required to
defease a Loan and (b) the outstanding principal balance of the Loan as of the date of such defeasance plus reasonable Costs of Landlord and Lender). 
  
 “Present Value” of any amount shall mean such amount discounted by a rate per annum which is the lower of (a) the Prime Rate at the time such present value is
determined or (b) seven percent (7%) per annum. 
  
 “Prime Rate” shall
mean the interest rate per annum as published, from time to time, in The Wall Street Journal as the “Prime Rate” in its column entitled “Money Rate”. In the event The Wall Street Journal ceases publication or ceases to publish
the “Prime Rate” as described above, then the reference or prime rate of U.S. Bank or other national bank designated by Landlord. 
  

 “Relevant Amount” shall mean the Termination Amount or the Default Termination Amount, as the case may be.

  
 “Rent” shall mean, collectively, Basic Rent and Additional Rent.

  
 “Requisition” shall mean any temporary requisition or confiscation
of the use or occupancy of any of the Premises by any governmental authority, civil or military, whether pursuant to an agreement with such governmental authority in settlement of or under threat of any such requisition or confiscation, or
otherwise. 
  
 “State” shall mean the State of Minnesota. 
  
 “Subsidiary” of any Person means a corporation a majority of the Voting Stock of
which is at the time owned, or the management of which is otherwise controlled, directly or indirectly, through one or intermediaries, or both, by such Person. 
  

“Surviving Obligations” shall mean any obligations of Tenant under this Lease, actual or contingent, which arise on or prior to the expiration or prior
termination of this Lease or which survive such expiration or termination by their own terms. 
  
 “Taking” shall mean (a) any taking or damaging of all or a portion of any of the Premises (i) in or by condemnation or other eminent domain proceedings pursuant to any Law, general or special, or (ii) by
reason of any agreement with any condemnor in settlement of or under threat of any such condemnation or other eminent domain proceeding, or (iii) by any other means, or (b) any de facto condemnation. The Taking shall be considered to have taken
place as of the later of the date actual physical possession is taken by the condemnor, or the date on which the right to compensation and damages accrues under the law applicable to the Premises. 
  
 “Termination Amount” shall mean the greater of (a) the sum of the Fair Market Value
and the applicable Prepayment Premium which Landlord will be required to pay in prepaying or defeasing, as applicable, any Loan with proceeds of the Termination Amount or (b) the sum of all of Landlord’s costs to acquire the Premises and the
applicable Prepayment Premium which Landlord will be required to pay in prepaying or defeasing in whole or in part, as applicable, any Loan with proceeds of the Termination Amount. 
  
 “Third Party Purchaser” shall mean the Third Party Purchaser as defined in Paragraph 21 (f). 
  
 “Voting Stock” means shares of stock of a corporation having ordinary voting power
to elect the board of directors or other managers of such corporation. 
  
 [End of Page]Purchase Agreement, dated May 21, 2004

 Exhibit 10.03 
  
 ASSET PURCHASE AGREEMENT 
  
 BY AND BETWEEN 
  
 NEXSTAR BROADCASTING, INC. 
  
 AND 
  
 JEWELL TELEVISION
CORPORATION 
  
 Dated as of May 21, 2004 
  

 TABLE OF CONTENTS 
  

					
	 ARTICLE I DEFINITIONS
	  	1
	 1.1
	  	Definitions	  	1
	 1.2
	  	Singular/Plural; Gender	  	9
		
	 ARTICLE II PURCHASE AND SALE
	  	9
	 2.1
	  	Purchase and Sale	  	9
	 2.2
	  	Payment of Purchase Price	  	9
	 2.3
	  	Closing Date Deliveries	  	9
	 2.4
	  	Proration; Adjustments to Purchase Price	  	10
	 2.5
	  	Taxes	  	12
	 2.6
	  	Risk of Loss	  	12
	 2.7
	  	[Intentionally Deleted]	  	12
	 2.8
	  	Access	  	12
	 2.9
	  	Accounts Receivable	  	13
	 2.10
	  	Accounts Payable	  	14
	 2.11
	  	Noncompete Agreement	  	14
		
	 ARTICLE III GOVERNMENTAL APPROVALS AND CONTROL OF STATION
	  	14
	 3.1
	  	FCC Consent	  	14
	 3.2
	  	Control Prior to Closing	  	14
	 3.3
	  	Governmental Approvals	  	14
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER
	  	15
	 4.1
	  	Organization	  	15
	 4.2
	  	Authorization; Enforceability	  	15
	 4.3
	  	Absence of Conflicting Agreements	  	15
	 4.4
	  	Purchased Assets	  	16
	 4.5
	  	Title to Purchased Assets; Liens and Encumbrances	  	16
	 4.6
	  	Equipment	  	16
	 4.7
	  	The Contracts	  	16
	 4.8
	  	Intangible Property	  	17
	 4.9
	  	Real Property	  	17
	 4.10
	  	The Leases	  	18
	 4.11
	  	Financial Statements and Interim Financial Statements	  	19
	 4.12
	  	No Changes	  	19
	 4.13
	  	No Litigation; Labor Disputes; Compliance with Laws	  	20
	 4.14
	  	Taxes	  	20
	 4.15
	  	Governmental Authorizations	  	21
	 4.16
	  	Compliance with FCC Requirements	  	21
	 4.17
	  	Insurance	  	22
	 4.18
	  	Brokers	  	22
	 4.19
	  	Employees	  	22
	 4.20
	  	Employee Benefit Plans	  	22
	 4.21
	  	Environmental Compliance	  	23

  

 -i- 

					
	 4.22
	  	Affiliation Agreement	  	24
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF BUYER
	  	24
	 5.1
	  	Organization	  	24
	 5.2
	  	Authorization; Enforceability	  	24
	 5.3
	  	Absence of Conflicting Laws and Agreements	  	24
	 5.4
	  	Brokers	  	24
	 5.5
	  	Absence of Litigation	  	25
	 5.6
	  	Qualifications of Buyer	  	25
		
	 ARTICLE VI CERTAIN MATTERS PENDING THE CLOSING
	  	25
	 6.1
	  	Notice of Adverse Changes	  	25
	 6.2
	  	Operations Pending Closing	  	25
	 6.3
	  	FCC Reports	  	26
	 6.4
	  	Consents	  	26
	 6.5
	  	Cooperation; Reasonable Efforts; Release	  	26
	 6.6
	  	Tax Returns and Payments	  	26
	 6.7
	  	Release of Liens	  	27
	 6.8
	  	Public Announcement	  	27
	 6.9
	  	Exclusivity	  	27
	 6.10
	  	Real Estate Matters	  	27
	 6.11
	  	Access and Information	  	28
	 6.12
	  	Certain Operating Events	  	28
		
	 ARTICLE VII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER
	  	28
	 7.1
	  	Compliance with Agreement	  	28
	 7.2
	  	Representations and Warranties	  	28
	 7.3
	  	Deliveries at Closing	  	29
	 7.4
	  	Other Documents	  	29
	 7.5
	  	Required Approvals and Consent	  	29
	 7.6
	  	Absence of Investigations and Proceedings	  	29
	 7.7
	  	FCC Consent	  	29
	 7.8
	  	Licenses	  	29
	 7.9
	  	Release of Liens	  	29
		
	 ARTICLE VIII CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER
	  	29
	 8.1
	  	Compliance with Agreement	  	29
	 8.2
	  	Representations and Warranties	  	30
	 8.3
	  	Deliveries at Closing	  	30
	 8.4
	  	Other Documents	  	30
	 8.5
	  	Absence of Investigations and Proceedings	  	30
	 8.6
	  	Governmental Consents	  	30
		
	 ARTICLE IX INDEMNIFICATION
	  	30
	 9.1
	  	Survival of Representations and Warranties	  	30

  

 -ii- 

					
	 9.2
	  	Indemnification by Seller	  	31
	 9.3
	  	Indemnification by Buyer	  	31
	 9.4
	  	Indemnification Procedures	  	32
	 9.5
	  	Remedies	  	33
	 9.6
	  	Certain Limitations of Liability	  	34
	 9.7
	  	Determination of Loss and Amount	  	34
	 9.8
	  	Survival	  	34
		
	 ARTICLE X FURTHER AGREEMENTS
	  	34
	 10.1
	  	Event of Loss	  	34
	 10.2
	  	Station Employees	  	34
	 10.3
	  	Bulk Transfer	  	35
	 10.4
	  	Non-Solicitation	  	35
	 10.5
	  	Rescission of Agreement	  	35
		
	 ARTICLE XI TERMINATION; MISCELLANEOUS
	  	36
	 11.1
	  	Termination	  	36
	 11.2
	  	Rights on Termination; Waiver	  	37
	 11.3
	  	Further Assurances	  	37
	 11.4
	  	Survival	  	37
	 11.5
	  	Entire Agreement; Amendment; Waivers	  	38
	 11.6
	  	Expenses	  	38
	 11.7
	  	Benefit; Assignment	  	38
	 11.8
	  	Confidentiality	  	38
	 11.9
	  	Notices	  	40
	 11.10
	  	Counterparts; Headings	  	40
	 11.11
	  	Income Tax Position	  	40
	 11.12
	  	Severability	  	40
	 11.13
	  	No Reliance	  	41
	 11.14
	  	Judicial Interpretation	  	41
	 11.15
	  	Saturdays, Sundays and Legal Holidays	  	41
	 11.16
	  	Governing Law	  	41

  
 EXHIBITS

  

			
	 Assumption Agreement
	  	Exhibit A
	 Bill of Sale and Assignment
	  	Exhibit B
	 Buyer’s Closing Certificate
	  	Exhibit C
	 Buyer’s Performance Certificate
	  	Exhibit D
	 Assignment and Assumption of Contracts
	  	Exhibit E
	 Assignment and Assumption of Leases
	  	Exhibit F
	 Seller’s Closing Certificate
	  	Exhibit G
	 Seller’s Performance Certificate
	  	Exhibit H
	 Noncompete Agreement
	  	Exhibit I

  

 -iii- 

 SCHEDULES 
  

			
	 1.1
	  	Assumed Liabilities
	 1.2
	  	Contracts
	 1.3
	  	Copyrights
	 1.4
	  	Equipment
	 1.5
	  	Leases
	 1.6
	  	Licenses
	 1.7
	  	Motor Vehicles
	 1.8
	  	Permitted Liens
	 1.9
	  	Real Property
	 1.10
	  	Retained Assets
	 1.11
	  	Trademarks
	 4.3
	  	Required Consents
	 4.4
	  	Purchased Assets Exceptions
	 4.5
	  	Title Exceptions
	 4.7
	  	Contract Exceptions
	 4.8
	  	Intangible Property Exceptions
	 4.9
	  	Real Property Exceptions
	 4.10
	  	Lease Exceptions and Finance Leases
	 4.11(a)
	  	Financial Statements
	 4.11(b)
	  	Interim Financial Statements
	 4.12
	  	Changes
	 4.13
	  	Litigation
	 4.14
	  	Tax Exceptions
	 4.15
	  	FCC License Exceptions
	 4.16
	  	FCC Equipment Exceptions
	 4.19
	  	Employees
	 4.20
	  	Employee Benefit Plans
	 4.21
	  	Environmental Exceptions
	 5.6
	  	Qualification of Buyer
	 6.12
	  	Certain Operating Events
	 7.5
	  	Required Approvals and Consents

  

 -iv- 

 ASSET PURCHASE AGREEMENT 
  
 THIS ASSET PURCHASE AGREEMENT is made this 21st day of May, 2004, by and between Jewell Television Corporation, a
Texas corporation (“Seller”), and Nexstar Broadcasting, Inc., a Delaware corporation (“Buyer”). 
  
 R E C I T A L S: 
  
 A. The Seller owns all of the assets of commercial television broadcast station KLST (TV), San Angelo, Texas (the “Station”), including certain licenses, permits and authorizations issued by the FCC.

  
 B. Seller is willing to sell to Buyer and Buyer is
willing to purchase from Seller, substantially all of the assets, business, properties and rights of Seller related to the conduct of the Station, other than the Retained Assets, on the terms and subject to the conditions set forth herein.

  
 C. Seller and Buyer are entering into a Time Brokerage
Agreement (the “TBA”) simultaneously with the execution and delivery of this Agreement pursuant to which Buyer will provide programming to the Station and sell advertising time related to such programming, and Seller will air such
programming and advertising, subject to the terms of the TBA. 
  
 NOW, THEREFORE, in consideration of the Recitals and of the mutual covenants, conditions and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it
is hereby agreed as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 1.1 Definitions. Except as specified otherwise, when used in this Agreement, the following terms shall have the meanings specified: 
  
 “Accounts Payable” shall mean all accounts payable of Seller (other
than Tradeout Payables) related to the Station as of any date or time of determination as determined in accordance with generally accepted accounting principles and Section 2.4; 
  
 “Accounts Receivable” shall mean all accounts receivable of Seller (other than Tradeout Receivables) related to
the Station as of any date or time of determination as determined in accordance with generally accepted accounting principles and Section 2.4; 
  
 “Adjustment Amount” shall have the meaning set forth in Section 2.4(d); 
  
 “Adjustment List” shall have the meaning set forth in Section 2.4(d); 
  
 “Adjustment Time” shall have the meaning set forth in Section
2.4(a); 
  

 “Affiliate” of any particular Person shall mean any other Person controlling, controlled by or
under common control with such particular Person, where “control” means the possession, directly or indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities,
contract or otherwise except that, with respect to Seller, Affiliate shall also mean T. E. Kimbell, Joy W. Kimbell, and Lewis M. Kimbell, III; 
  
 “Affiliation Agreement” shall mean the network affiliation agreement by and between CBS and Seller, dated as of September 1, 1995, as amended on
August 28, 2002, as amended and supplemented; 
  
 “Agreement” shall mean this Asset Purchase Agreement, together with the Schedules and the Exhibits attached hereto, as the same shall be amended from time to time in accordance with the terms hereof; 
  
 “Assumed Contract” shall mean any Contract described in clause (b)
of the definition of the term “Assumed Liabilities”; 
  
 “Assumed Liabilities” shall mean (a) the liabilities of Seller, if any, listed on Schedule 1.1; (b) the obligations of Seller under (i) the Contracts listed on Schedule 1.2, (ii) Contracts not required pursuant to
Section 4.7 to be listed on Schedule 1.2 (other than Contracts described in clauses (iii) and (iv) of Section 4.7(a)), (iii) Contracts entered into after the date hereof and prior to the Closing Date in accordance with this Agreement, and
(iv) the Leases, in each case to the extent such obligations arise from and accrue with respect to the operation of the Station after the Closing Date, and in each case except those Contracts and Leases, if any, included in the Retained Assets; (c)
the liabilities, obligations and claims resulting from the operation of the Station following the Adjustment Time; and (d) liabilities under Permitted Liens; provided that, Assumed Liabilities shall not include, without limitation, (A) liabilities
of Seller arising out of any facts, circumstances or actions that constitute a misrepresentation or breach of any warranty or covenant by Seller made in this Agreement or the TBA, (B) the Seller’s obligations under this Agreement or the TBA,
(C) liabilities arising out of the termination of employees of the Station prior to the Adjustment Time, (D) any indebtedness for borrowed money of the Seller, (E) all taxes of Seller that result from or have accrued in connection with the operation
of the Station prior to the Closing and any income taxes incurred by the Seller during the period of operations under the TBA, (F) any liabilities of Seller resulting from, or arising out of, relating to, in the nature of or caused by any breach of
contract, breach of warranty, tort, infringement, claim or lawsuit relating to the period prior to the Adjustment Time, (G) the liabilities of Seller for the accrued vacation of its employees, (H) severance liabilities with respect to terminated
employees as described in Section 10.2, (I) the Pre-TBA Payables, and (J) all liabilities related to any Plan or Benefit Arrangement, including without limitation, any Station Employee Benefit Plan; 
  
 “Assumption Agreement” shall mean an instrument in the form of
Exhibit “A” attached hereto by which the Assumed Liabilities shall be assumed by Buyer; 
  
 “Benefit Arrangements” shall mean a benefit program or practice providing for bonuses, incentive compensation, vacation pay, severance pay,
insurance, restricted stock, stock options, employee discounts, company cars, tuition reimbursement or any other perquisite or benefit 

  

 -2- 

 
(including, without limitation, any fringe benefit under Section 132 of the Code) to employees, officers or independent contractors that is not a Plan;

  
 “Bill of Sale and Assignment” shall mean an
instrument in the form of Exhibit “B” attached hereto, by which Seller shall convey to Buyer title to the Customer Lists, the Equipment, the Intangible Property, the Licenses, the Miscellaneous Assets, the Motor Vehicles, the
Records and the Trade Secrets; 
  
 “Buyer’s Closing
Certificate” shall mean the certificate of Buyer in the form of Exhibit “C” attached hereto; 
  
 “Buyer’s Performance Certificate” shall mean the certificate of Buyer in the form of Exhibit “D” attached hereto;

  
 “Cash” shall mean all moneys of Seller, whether in
the form of cash, cash equivalents, marketable securities, short-term investments or deposits in bank or other financial institution accounts of any kind; 
  
 “Closing” shall mean the conference to be held at 10:00 a.m., New York, New York time on the Closing Date at such place as the parties may
mutually agree to in writing, at which time the transactions contemplated by this Agreement shall be consummated; 
  
 “Closing Date” shall mean the date on which the Closing occurs which shall be (a) December 20, 2004 or such later date which is 10 days after
the date on which the FCC Consent is granted, or (b) such other date as Buyer and Seller may agree upon in writing. The Closing shall be deemed effective as of 12:01 a.m., San Angelo, Texas time, on the Closing Date; 
  
 “Code” shall mean the Internal Revenue Code of 1986, as amended;

  
 “Communications Act” means the Communications Act of
1934, as amended, together with the rules and published policies of the FCC; 
  
 “Contract Assignment” shall mean the Assignment and Assumption of Contracts, in the form of Exhibit “E” attached hereto, by which Seller shall assign the Assumed Contracts to Buyer and Buyer
shall assume the Assumed Liabilities arising under such Contracts; 
  
 “Contracts” shall mean those agreements (other than those included in the Retained Assets and other than the Leases) under which the business of the Station is conducted by Seller, whether written, oral or implied, including all
contractual obligations incurred by Seller for the Program Rights, including without limitation those agreements listed on Schedule 1.2; 
  
 “Copyrights” shall mean all rights of Seller to copyrights and copyright applications related to the Station, including without limitation those
items described on Schedule 1.3; 
  
 “Customer
Lists” shall mean all lists, documents, written information and computer tapes and programs and other computer readable media used by or in Seller’s possession concerning past, present and potential purchasers of advertising or services
from the Station; 
  

 -3- 

 “Environmental Condition” means the presence of Hazardous Materials in the environment or
building materials, the release of Hazardous Materials to the environment, or the disposal of wastes to land-based storage or disposal facilities (such as landfills), whether at the Purchased Assets or otherwise, including any migration of Hazardous
Materials through air, soil, surface water, groundwater or sediments at, to or from the Assets or at, to or from any Off-Site Location. 
  
 “Environmental Laws” shall mean the rules and regulations of the FCC, the Environmental Protection Agency and any other federal, state or local
government authority pertaining to human exposure to RF radiation and all applicable rules and regulations of federal, state and local laws, including statutes, regulations, ordinances, codes, and rules, as amended, relating to the discharge or
removal of air pollutants, water pollutants or process waste water or hazardous or toxic substances, including, but not limited to, the Federal Solid Waste Disposal Act, the Federal Clean Air Act, the Federal Clean Water Act, the Federal Resource
Conservation and Recovery Act of 1976, the Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980, and the Occupational Safety and Health Act of 1970, each as amended, regulations of the Environmental Protection Agency,
regulations of the Nuclear Regulatory Agency, regulations of the Occupational Safety and Health Administration and regulations of any state department of natural resources or state environmental protection agency, now in effect; 
  
 “Environmental Liabilities” means all claims, liabilities and
damages, whether known or unknown, contingent or otherwise, arising prior to, on or after the Closing Date, resulting or arising from or related to: (i) any violation or alleged violation of or non-compliance with Environmental Laws, whether prior
to, on or after the Closing Date, with respect to the ownership, lease, maintenance or operation of the Station or the Purchased Assets, including, but not limited to, any fines or penalties and the costs associated with correcting any such
violations or non-compliance; and (ii) Environmental Conditions or exposure to Hazardous Materials at, on, in, under, adjacent to or migrating or discharged to or from the Station or Purchased Assets prior to, on or after the Closing Date,
including, without limitation, loss of life, injury to persons or property (including from exposure to asbestos-containing materials), damage to natural resources, and remediation of Environmental Conditions. 
  
 “Equipment” shall mean all machinery, equipment, furniture,
fixtures, furnishings, toolings, parts, blank films and tapes and other items of tangible personal property owned or leased by Seller which are used or useable in the operation of the Station, including without limitation to those items listed on
Schedule 1.4; 
  
 “ERISA” shall mean the Employee
Retirement Income Security Act of 1974, as amended; 
  
 “Event of Loss” shall mean any loss, taking, condemnation, damage or destruction of or to any of the Purchased Assets or the Station; 
  
 “FCC” means the Federal Communications Commission; 
  

 -4- 

 “FCC Consent” shall mean action or actions by the FCC granting its consent to the assignment of
the Licenses from Seller to Buyer; 
  
 “Final Order”
shall mean an FCC Consent, with respect to which no action, request for stay, petition for rehearing or reconsideration, appeal or review by the FCC on its own motion is pending and as to which the time for filing or initiation of any such request,
petition, appeal or review has expired; 
  
 “Financing
Lease” shall mean any Lease that is properly characterized as a capitalized lease obligation in accordance with generally accepted accounting principles; 
  

“Hazardous Materials” shall mean any wastes, substances, or materials (whether solids, liquids or gases) that are deemed hazardous, toxic,
pollutants, or contaminants, including without limitation, substances defined as “hazardous wastes,” “hazardous substances,” “toxic substances,” “radioactive materials,” or other similar designations in, or
otherwise subject to regulation under, any Environmental Laws. “Hazardous Materials” includes but is not limited to polychlorinated biphenyls (PCB’s), asbestos, lead-based paints, infectious wastes, radioactive materials and wastes
and petroleum and petroleum products (including, without limitation, crude oil or any fraction thereof); 
  
 “Intangible Property” shall mean: (a) the Copyrights; (b) the Trademarks; (c) the Trade Secrets; (d) all of the rights of the Seller in and to
the call letters “KLST-TV,” “KLST-DT” or “KLST”; and (e) all rights of Seller in and to all slogans, phrases or logos of the Station; and (f) all goodwill associated therewith and with the Purchased Assets; 

 
 “Internet Web Sites” means all internet Domain Leases and Domain
names of the Station, the unrestricted right to the use of HTML content relating to the Station located and publicly accessible from those Domain names, and the “visitor” data base for those sites; 
  
 “Knowledge of Seller” or “to the Seller’s Knowledge”
shall mean, collectively, the actual knowledge of (i) T. E. Kimbell, (ii) Gordon Hay, and (iii) Roland Bigley; 
  
 “Lease Assignment” shall mean the Assignment and Assumption of Leases in the form of Exhibit “F” attached hereto, by which
Seller shall assign to Buyer the Leases or in the case of Leases of Real Property, in such other form as is reasonably acceptable to the Title Company; 
  
 “Leases” shall mean those leases of Real Property and Equipment related to the Station as listed on Schedule 1.5; 
  
 “Licenses” shall mean all licenses, permits and authorizations
issued by the FCC to Seller for the operation of the Station and all auxiliary facilities licensed by the FCC for operation in connection with the Station, as listed on Schedule 1.6; 
  
 “Lien” shall mean any mortgage, deed of trust, pledge,
hypothecation, security interest, encumbrance, claim, lien, lease (including any capitalized lease) or charge of any kind, whether voluntarily incurred or arising by operation of law or otherwise, affecting any of the Purchased Assets or the
Station, including any agreement to give or grant any of the foregoing, any conditional sale or other title retention agreement and the filing of or agreement to give any 

  

 -5- 

 
financing statement with respect to any of the Purchased Assets or the Station under the Uniform Commercial Code of the State of Texas or comparable law of
any jurisdiction; 
  
 “Material Adverse Effect” shall
mean a material adverse effect on the present or future business, operations, financial condition or results of operations of the Station or on the ability of Seller to perform its material obligations under this Agreement or the TBA; 
  
 “Miscellaneous Assets” shall mean all tangible and intangible
assets owned by, leased by or licensed to Seller and used or useable in the operation of the Station and not otherwise specifically referred to in this Agreement, including any warranties related to any of the Purchased Assets, excepting therefrom
only the Retained Assets; 
  
 “Motor Vehicles” shall
mean all motor vehicles owned by Seller related to the operation of the Station including without limitation those listed on Schedule 1.7; 
  
 “Motor Vehicle Title Certificates” shall mean the official evidences of title to the Motor Vehicles; 
  
 “Noncompete Agreement” shall mean the Noncompete agreement, in the
form of Exhibit “I” attached hereto; 
  
 “Off-Site
Location” means any real property other than the Real Property. 
  
 “Permitted Liens” shall mean (i) Liens imposed by any governmental authority for Taxes not yet due and/or which are being contested in good faith and by appropriate proceedings if adequate reserves with respect thereto are
maintained on the books of the Seller in accordance with generally accepted accounting principles; (ii) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other non-consensual Liens arising in the ordinary
course of business and securing amounts not yet due and payable or which are being contested in good faith and by appropriate proceedings, if adequate reserves with respect thereto are maintained on the books of the Seller in accordance with
generally accepted accounting principles; (iii) pledges or deposits in connection with worker’s compensation, unemployment insurance and other social security legislation; (iv) deposits to secure the performance of any or all of the following:
bids, trade contracts (other than for borrowed money), leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of business; (v) easements, rights-of-way,
restrictions and other similar encumbrances on real property incurred in the ordinary course of business, and encroachments (whether or not in the ordinary course of business), which do not secure any monetary amount and which do not in any case
materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business thereon; and (vi) all of the exceptions reflected in Schedule 1.8 or the title insurance policies attached
thereto, provided the Liens reflected in Schedule 1.8 are to be released by Closing. Schedule 1.8 also sets forth a list of the Liens described in clauses (i) and (ii) above as Liens which are being contested in good faith; 

 
 “Person” shall mean any natural person, general or limited
partnership, corporation, limited liability company or other entity; 
  

 -6- 

 “Plan” shall mean any plan, program or arrangement, whether or not written, that is an
“employee benefit plan” as such term is defined in Section 3(3) of ERISA and (i) which is established or maintained by Seller; (ii) to which Seller contributed or was obligated to contribute, to fund or provide benefits; or (iii) which
provides or promises benefits to any person who performs or who has performed services for Seller and because of those services is or has been (A) a participant therein or (B) entitled to benefits thereunder; 
  
 “Pre-TBA Payables” shall mean the Accounts Payable of the Seller as
of the Adjustment Time other than the Tradeout Payables; 
  
 “Pre-TBA Receivables” shall mean the Accounts Receivable of the Seller as of the Adjustment Time other than the Tradeout Receivables; 
  
 “Program Payments” shall have the meaning set forth in Section 2.4(b); 
  
 “Program Rights” shall mean all rights of Seller presently existing or obtained prior to the Closing, in
accordance with this Agreement, to broadcast television programs or shows as part of the Station’s programming and for which Seller is or will be obligated to compensate the vendor of such Program Rights, including all film and program barter
agreements; 
  
 “Purchased Assets” shall mean all rights
of Seller in, to and under all assets used or useable in the operation of the Station, including but not limited to (a) the Contracts; (b) the Customer Lists; (c) the Equipment; (d) the Intangible Property; (e) the Leases; (f) the Licenses; (g) the
Miscellaneous Assets; (h) the Motor Vehicles; (i) the Real Property; (j) the Records; (k) the Trade Secrets; and (l) Internet Web Sites; in each case, other than the Retained Assets; 
  
 “Purchase Price” shall mean the sum of Twelve Million Dollars ($12,000,000.00) adjusted pursuant to Section 2.4;

  
 “Real Property” shall mean the real property owned
in fee simple or leasehold by Seller more particularly described on Schedule 1.9, and all buildings, improvements and fixtures thereon, together with all strips and gores, rights of way, easements, privileges and appurtenances pertaining
thereto, including any right, title and interest of Seller in and to any street adjoining any portion of the Real Property; 
  
 “Records” shall mean files and records, including schematics, technical information and engineering data, programming information,
correspondence, books of account, employment records, customer files, purchase and sales records and correspondence, advertising records, files and literature, and FCC logs, files and records and other written materials of Seller relating to the
Station other than those that are Retained Assets; provided, however, that Records shall not mean or include the articles of incorporation, certificates of formation, limited liability company agreements, bylaws, qualifications to
conduct business as a foreign limited liability company, arrangements with registered agents relating to foreign qualification, taxpayer and other identification numbers, seals, minute books, and other documents and records relating to the
organization, maintenance and existence of Seller as limited liability companies; 
  
 “Retained Assets” shall mean (a) Cash; (b) Pre-TBA Receivables (subject to Buyer’s right to collect and use the proceeds of same as provided in Section 2.9 hereof); (c) any and all claims 

  

 -7- 

 
of Seller with respect to transactions prior to the Closing Date including, without limitation, claims for tax refunds and refunds of fees paid to the FCC,
except to the extent any such item was taken into account in adjusting the Purchase Price pursuant to Section 2.4 or relates to Assumed Liabilities or the Purchased Assets; (d) all contracts of insurance entered into by Seller; (e) all rights and
obligations under any agreements listed on Schedule 1.10; (f) those other assets, if any, described on Schedule 1.10; (g) all assets related to any Plan or Benefit Arrangement (including without limitation each Station Employee Benefit
Plan); (h) the records and other documents described in the proviso to the definition of Records above; (i) those employment contracts relating to employees of Seller whom Buyer does not hire as provided in Section 10.2, and (j) any of the rights of
Seller under this Agreement, the TBA and under any agreement or documents executed or to be executed in connection herewith or therewith or any side agreement between Seller and Buyer entered into on or after the date of this Agreement; 

 
 “Retained Liabilities” shall mean all the obligations and
liabilities of Seller whether now existing or previously or hereafter incurred other than the Assumed Liabilities; 
  
 “Schedules” shall mean those schedules referenced in this Agreement which have been bound in that separate volume executed by or on behalf of
the parties, and delivered concurrently with the execution of this Agreement, which schedules and volume are hereby incorporated herein and made a part hereof; 
  

“Seller’s Closing Certificate” shall mean the certificate of Seller in the form of Exhibit “G” attached hereto;

  
 “Seller’s Opinion of Counsel” means the legal
opinion of counsel to Seller addressed to Buyer in a form reasonably acceptable to Buyer; 
  
 “Seller’s Performance Certificate” shall mean the certificate of Seller in the form of Exhibit “H” attached hereto; 
  
 “Station” shall have the meaning set forth in the Recitals; 
  
 “Station Employee Benefit Plans” shall mean any Plan or Benefit
Arrangement in which any current, former or retired employee of the Seller participates; 
  
 “TBA” shall have the meaning set forth in the recitals; 
  
 “Title Company” shall mean First American Title Insurance Company, or such other title insurance company reasonably acceptable to Buyer;

  
 “Trade Secrets” shall mean all proprietary or
confidential information of Seller relating to the Station; 
  
 “Trademarks” shall mean all of those names, trademarks, service marks, jingles, slogans, logos, trademark and service mark registrations and trademark and service mark applications owned, used, held for use, licensed by or leased
by Seller relating to the Station including without limitation those set forth on Schedule 1.11; 
  

 -8- 

 “Tradeout Agreement” shall mean any Contract pursuant to which Seller has sold or traded
commercial air time of the Station in consideration for any property or services in lieu of or in addition to Cash, excluding film and program barter agreements; 
  
 “Tradeout Payables” means all obligations of Seller arising under any Tradeout Agreement, whenever made;

  
 “Tradeout Receivables” means all current assets of
Seller which are goods or services receivable by Seller arising under any Tradeout Agreement, whenever made; 
  
 “Warranty Deed” shall mean a special or limited warranty deed in a form acceptable to the Title Company pursuant to which Seller shall convey to
Buyer at the Closing the Real Property owned by Seller, subject only to Permitted Liens. 
  
 1.2 Singular/Plural; Gender. Where the context so requires or permits, the use of the singular form includes the plural, and the use of the plural form includes the singular, and the use of any gender includes
any and all genders. Except as specifically set forth herein, all Section and Article references are to Sections and Articles of this Agreement. 
  
 ARTICLE II 
 PURCHASE AND SALE

  
 2.1 Purchase and Sale. At the Closing on the
Closing Date, and upon all of the terms and subject to all of the conditions of this Agreement, Seller shall sell, assign, convey, transfer and deliver to Buyer, and Buyer shall purchase the Purchased Assets, including all of Seller’s legal and
equitable interests therein. Notwithstanding any provision of this Agreement to the contrary, Seller shall not transfer, convey or assign to Buyer, but shall retain, all of its right, title and interest in and to the Retained Assets. 
  
 2.2 Payment of Purchase Price. 
  
 (a) On the date of this Agreement, Buyer shall pay to
Seller, by wire transfer in immediately available funds, the sum of One Million Seven Hundred and Fifty Thousand Dollars ($1,750,000.00); 
  
 (b) At Closing, Buyer shall pay to Seller, by wire transfer in immediately available funds, an amount equal to the Purchase Price (as
adjusted pursuant to Section 2.4 below), less the amount paid pursuant to Section 2.2(a); and 
  
 (c) At Closing, Buyer shall assume the Assumed Liabilities pursuant to the Assumption Agreement. 
  
 2.3 Closing Date Deliveries. At the Closing on the Closing Date:

  
 (a) Seller shall deliver, or cause to be
delivered to Buyer, properly executed and dated as of the Closing Date: (i) the Assumption Agreement; (ii) the Bill of Sale and Assignment; (iii) the Contract Assignment; (iv) the Lease Assignment; (v) the Motor Vehicle Title Certificates; (vi)
Seller’s Closing Certificate; (vii) Seller’s Opinion of Counsel; 

  

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(viii) Seller’s Performance Certificate; (ix) the Warranty Deed; (x) a certificate of existence or good standing with respect to Seller from the
Secretary of State of Texas; (xi) the Noncompete Agreement; and (xii) other documents as provided in Article VII hereof or as Buyer shall reasonably request; and 
  
 (b) In addition to the payments described in Section 2.2, Buyer shall deliver, or cause to be delivered to
Seller, properly executed and dated as of the Closing Date: (i) the Assumption Agreement; (ii) the Bill of Sale and Assignment; (iii) Buyer’s Closing Certificate; (iv) Buyer’s Performance Certificate; (v) the Receipt for Motor Vehicle
Title Certificates; (vi) the Contract Assignment; (vii) the Lease Assignment; (viii) Buyer’s Opinion of Counsel; (ix) a certificate of existence or good standing with respect to Buyer from the Secretaries of State of Delaware and Texas; (x) the
Noncompete Agreement; and (xi) such other documents as provided in Article VIII hereof or as Seller shall reasonably request. 
  
 2.4 Proration; Adjustments to Purchase Price. 
  
 (a) For the purposes of (i) identifying the Purchased Assets, Retained Assets, Assumed Liabilities and Retained Liabilities, (ii)
determining the adjustment to the Purchase Price, if any, to be made pursuant to this Section 2.4, and (iii) identifying the Pre-TBA Receivables and Pre-TBA Payables for the purpose of Section 2.9, all prepaid or deferred revenue, prepaid expenses,
accrued income and accrued expenses of the Station as of 12:01 a.m., San Angelo, Texas time on June 1, 2004 (the “Adjustment Time”) shall, except as otherwise expressly provided herein, be adjusted and allocated between Seller and Buyer to
reflect the principle that all revenue, income and expenses (including, without limitation, accrued liabilities for vacation pay, sick pay, compensatory pay and similar amounts, and amounts that may become payable in respect of unlicensed software,
whether or not Seller’s normally accrue such amounts) arising from the operation of the Station or relating to the Purchased Assets before the Adjustment Time shall be for the account of Seller, and all revenue, income and expenses arising from
the operation of the Station or relating to the Purchased Assets from and after the Adjustment Time shall be for the account of Buyer under this Agreement or the TBA. Any and all rebates which, under any agreements in effect as of the Adjustment
Time, may be payable after such date to any advertiser or other user of the Station’s facilities, based in part on business, advertising or services prior to the Closing Date, shall be borne by Seller and Buyer ratably in proportion to revenues
received or volume of business done by each during the applicable period. Any and all agency commissions which are subject to adjustment after the Adjustment Time based on revenue, volume of business done or services rendered in part before the
Adjustment Time and in part after the Adjustment Time shall be shared by Seller, on the one hand, and Buyer, on the other hand, ratably in proportion to the revenue, volume of business done or services rendered, as the case may be, by each during
the applicable period. 
  
 (b) Treatment of
Program Liabilities. Notwithstanding anything to the contrary set forth in Section 2.4(a) above, as between Buyer and Seller with respect to all Contracts relating to Program Rights (“Program Contracts”): 
  
 (i) Seller will be allocated all obligations to make cash
payments of license and usage fees pursuant to any Program Contract (“Program Payments”) which 

  

 -10- 

 
first becomes due and payable under the terms of the Program Contract in question prior to the first day of the calendar month which includes the Adjustment
Time; 
  
 (ii) Buyer will be allocated all
Program Payments which first become due and payable under the terms of the Program Contract in question after the last day of the calendar month which includes the Adjustment Time; and 
  
 (iii) with respect to Program Payments which first become due and payable under the terms of the Program
Contract in question during the calendar month which includes the Adjustment Time: (A) Seller will be allocated a portion of each such Program Payment which is equal to a fraction, the numerator of which is the number of days (if any) in such
calendar month which are prior to the Adjustment Time and the denominator of which is the total number of days in such calendar month, and (B) Buyer will be allocated the remaining portion of such Program Payments. 
  
 (c) To the extent not inconsistent with the express
provisions of this Agreement, the allocations made pursuant to Sections 2.4(a) and (b) above shall be made in accordance with generally accepted accounting principles. 
  
 (d) Net settlement of the adjustments contemplated under Section 2.4 shall be made at the Closing by
increasing or decreasing the Purchase Price appropriately, if feasible based on Seller’s and Buyer’s good faith estimates. For items not readily subject to ascertainment at the Closing, the following procedures shall apply: Buyer shall
prepare and deliver to Seller within thirty (30) business days following the Closing Date, or such earlier or later date as shall be mutually agreed to by Seller and Buyer, an itemized list (the “Adjustment List”) of all sums which, as
described in Section 2.4(e) below, shall increase or decrease the Purchase Price, with a brief explanation thereof. Such list shall show the net amount of the increase or decrease to the Purchase Price (the “Adjustment Amount”). If the
Adjustment Amount is a decrease to the Purchase Price, Seller shall pay such amount to Buyer. If the Adjustment Amount is an increase to the Purchase Price, Buyer shall pay such amount to Seller. Except as provided otherwise in Section 2.4(f),
payment of the Adjustment Amount shall be made not later than fifteen (15) business days following the delivery of the Adjustment List. 
  
 (e) The items set forth on the Adjustment List and the calculation of the Adjustment Amount shall each reflect the understanding that the
Purchase Price shall be: 
  
 (i) decreased
by the amount, if any, by which Tradeout Payables as of the Adjustment Time exceed Tradeout Receivables as of the Adjustment Time by more than $10,000; and 
  
 (ii) decreased by the amount of all liabilities under Financing Leases, if any, existing as of the Adjustment Time. 
  
 (f) Not later than fifteen (15) business days following the
delivery of the Adjustment List, Seller may furnish Buyer with written notification of any dispute concerning any items shown thereon or omitted therefrom together with a detailed explanation in support of Seller’s position in respect thereof.
If Seller does not furnish Buyer such a written notification during such fifteen (15) business day period, then Buyer’s determination of the Adjustment 

  

 -11- 

 
Amount (as set forth in the Adjustment List) will be final and binding on Buyer and Seller as of the last day of such fifteen (15) business day period. If
Seller does furnish Buyer such a written notification during such fifteen (15) business day period, then Buyer and Seller shall consult to resolve any such dispute for a period of fifteen (15) business days following the notification thereof. In the
event of any such dispute, that portion of the Adjustment Amount that is not in dispute shall be paid to the party entitled to receive the same on the day for payment provided in Section 2.4(d). If such fifteen (15) business day consultation period
expires and the dispute has not been resolved, the matter shall be referred to an independent “Big Five” public accounting firm mutually agreed upon by Seller and Buyer (the “Accountants”), which shall resolve the dispute and
shall render its decision (together with a brief explanation of the basis therefor) to Buyer and Seller not later than twenty (20) business days following submission of the dispute to it; provided, however, if Buyer and Seller is
unable to mutually agree upon an independent public accounting firm, then Buyer and Seller shall each choose an independent public accounting firm and those firms shall appoint a third independent public accounting firm to act as the Accountants.
The Accountants’ determination of the disputed portion of the Adjustment Amount (the “Disputed Amount”) will become final and binding on Buyer and Seller on the business day after the date upon which a written report setting forth
such determination is delivered to Seller and Buyer. The Disputed Amount shall be paid by the party required to pay the same within five (5) business days after the delivery of a copy of such decision to Seller and Buyer. The fees and expenses of
the Accountants shall be shared equally by Seller, on the one hand, and Buyer on the other hand. 
  
 (g) The Adjustment List to the extent not disputed within the specified period by Seller, any mutually agreed written settlement of any
such dispute concerning the Adjustment List and any determination of disputed items by the Accountants shall be final, conclusive and binding on the parties hereto absent manifest error. 
  
 2.5 Taxes. All federal, state, local and other transfer, sales and use taxes and recording costs applicable to,
imposed upon or arising out of the transfer to Buyer of the Purchased Assets as contemplated by this Agreement shall be shared equally by Buyer on the one hand, and Seller on the other. Notwithstanding anything else herein, (a) Seller shall pay and
be solely responsible for the Texas State franchise tax due in May of 2004 assessed with respect to the operations of the Station in 2003, and (b) Seller and Buyer shall pay and be responsible for their pro rata portion (5/12 shall be paid by Seller
and 7/12 shall be paid by Buyer) of the Texas State franchise tax due in May of 2005 assessed with respect to the operations of the Station in 2004. 
  
 2.6 Risk of Loss. The risk of all Events of Loss prior to the Closing shall be upon Seller and the risk of all Events of Loss at or subsequent to
the Closing shall be upon Buyer. 
  
 2.7 [Intentionally
Deleted] 
  
 2.8 Access. 
  
 (a) Subject to Section 11.8(b), Seller and its authorized
agents, officers and representatives, upon prior written request, shall have access to the appropriate records of Buyer to conduct such examination and investigation as Seller deems necessary to assure compliance 

  

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with this Article 2, and to permit Seller to comply with its tax reporting compliance requirements, provided that such examination and investigation shall be
at Seller’s sole cost and expense and shall be during the Station’s normal business hours, shall not unreasonably interfere with the Station’s operations and activities and shall not, after the consummation of the Closing, constitute
Seller’s exercising control over the Station under the Communications Act. 
  
 (b) Subject to Section 11.8(a), Buyer and its authorized agents, officers and representatives, upon prior written request, shall have
access to the appropriate records of Seller to conduct such examination and investigation as Buyer deems necessary to assure compliance with this Article 2, and to permit Buyer to comply with its tax reporting compliance requirements, provided that
such examination and investigation shall be at Buyer’s sole cost and expense and shall be during Seller’s normal business hours, shall not unreasonably interfere with Seller’s operations and activities. Without limiting the foregoing
Seller will (i) give Buyer and its authorized agents, officers and representatives such access to such books and records pertaining to Seller and the Station as may reasonably be required in order to perform any audit or other review and any
disclosure that they may deem appropriate in connection with the Buyer’s business, and Seller (to the extent such consent is necessary) hereby consents to the use of information contained in such books and records for any such purpose, and (ii)
use reasonable efforts to assist Buyer and its authorized agents, officers and representative in the conduct of such audit or other review. 
  
 2.9 Accounts Receivable. 
  
 (a) From and after the Adjustment Time until the earlier of (i) the six month anniversary of the Adjustment Time, and (ii) the termination
of this Agreement (the “Collection Period”), Buyer agrees to use reasonable efforts to collect, as agent for Seller, the Pre-TBA Receivables in the manner regularly pursued by Buyer with respect to the collection of its accounts receivable
and in the ordinary course of business. Within ten (10) days of the last day of the Collection Period, Buyer shall remit to Seller in immediately available funds, an amount equal to (i) the proceeds of all Pre-TBA Receivables collected by Buyer from
and after the Adjustment Time, less (ii) all Pre-TBA Payables actually paid by Buyer or reimbursed by Buyer to Seller. Under no circumstances shall Buyer hold for its own account the proceeds of Pre-TBA Receivables to offset any amount Buyer
believes it is owed under this Section 2.9 or any other provision of the Agreement or the TBA. 
  
 (b) Within twenty (20) days following the last day of the Collection Period, Buyer will deliver to Seller all records of uncollected
Pre-TBA Receivables (provided that Buyer may retain copies of such records). In the collection of accounts receivable, all payments received by Buyer from account debtors will be applied first to the Pre-TBA Receivables and then to Buyer’s
accounts receivable, in the order of origination (i.e., “first-in, first-out”), unless the account debtor specifies otherwise, in which case the proceeds shall be applied as specifically designated by the account debtor. Buyer or Seller
will promptly deliver to the other a true copy of any notice of a dispute as to the validity or enforceability of a Pre-TBA Receivable received from an account debtor. Buyer shall not agree to any settlement, discount or reduction of any Pre-TBA
Receivable without the prior written consent of Seller. Buyer’s collection obligation under this Section 2.9 shall not include any obligation to bring suit, engage a collection agent or take any legal action for the collection of any Pre-TBA
Receivable. After the last day of the 

  

 -13- 

 
Collection Period, Buyer shall, if requested by Seller, execute and deliver letters, in form and substance reasonably satisfactory to Seller and Buyer, to
the effect that the respective account debtor should send payments on the Pre-TBA Receivables to Seller’s designee. 
  
 2.10 Accounts Payable. Once a week Buyer shall provide Seller with copies of all invoices seeking payment for Pre-TBA Payables received by Buyer
and not previously sent to Seller. Buyer shall pay any such Pre-TBA Payables in the ordinary course unless Seller objects in writing thereto prior to the time Buyer has made such payment. Any such objection shall describe in reasonable detail the
basis for such objection. To the extent Seller objects to the payment of any Pre-TBA Payable, Buyer and Seller shall cooperate with each other to resolve the matter with the applicable account debtor. 
  
 2.11 Noncompete Agreement. Contemporaneously with the Closing, the
Buyer and T. E. Kimbell shall enter into the Noncompete Agreement. 
  
 ARTICLE III 
 GOVERNMENTAL APPROVALS AND CONTROL OF STATION 
  
 3.1 FCC Consent. It is specifically understood and agreed by Buyer and
Seller that the Closing shall be in all respects subject to, and conditioned upon, the receipt of prior FCC Consent. Buyer and Seller shall prepare and file with the FCC, as soon as practicable but in no event later than ten (10) business days after
the execution of this Agreement, all requisite applications and other necessary instruments and documents to request the FCC Consent and any necessary extensions thereof to comply with the Closing Date. After the aforesaid applications, instruments
and documents have been filed with the FCC, Buyer and Seller shall diligently take, or fully cooperate in the taking of, all necessary and proper steps, and provide any additional information reasonably requested, and use their respective reasonable
commercial efforts to resolve and/or overcome objections that may be asserted by the FCC or any third party, in order to obtain the prompt grant of the FCC Consent. No party hereto shall take any action that such party knows or should know would
adversely affect obtaining the FCC Consent, or adversely affect the FCC Consent becoming a Final Order. Buyer and Seller shall each pay one half of all FCC filing or transfer fees relating to the transactions contemplated hereby irrespective of
whether the transactions contemplated by this Agreement are consummated and irrespective of whether such fees are assessed before or after the Closing. 
  
 3.2 Control Prior to Closing. Except as permitted by the TBA, between the date hereof and the Closing Date, Buyer shall not directly or indirectly
control, supervise or direct, or attempt to control, supervise or direct, the operation of the Station. Such operation, including complete control and supervision of all programs, employees and policies, shall be the sole responsibility of Seller.

  
 3.3 Governmental Approvals. In the event a third party
or any governmental authority (including, without limitation, the FCC, the Securities and Exchange Commission, or the Department of Justice) challenges the transactions contemplated by this Agreement based upon the qualifications of Buyer to hold
the Licenses, Buyer shall take the lead and bear all costs incurred in defending against such challenges and in prosecuting the applications contemplated 

  

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by section 3.1 hereof until the earlier of (i) the date on which the FCC Consent has been granted or (ii) the date on which this Agreement is terminated
pursuant to Section 11 hereof. 
  
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
  
 Seller represents and warrants to Buyer that the statements contained in this Article IV are true, correct and complete as of the date of this Agreement,
as follows: 
  
 4.1 Organization. Seller is a corporation
organized, validly existing and in good standing under the laws of the State of Texas. Seller has the power and authority to own, lease, and operate its properties and to conduct its business as it is now being conducted. 
  
 4.2 Authorization; Enforceability. The execution, delivery and
performance of this Agreement and the TBA and all of the documents and instruments required hereby by Seller are within the power of Seller and have been duly authorized by all necessary action by Seller. This Agreement and the TBA are, and the
other documents and instruments required hereby will be, when executed and delivered by Seller, the valid and binding obligations of Seller, enforceable against Seller in accordance with their respective terms, subject only to bankruptcy,
insolvency, reorganization, moratorium or similar laws at the time in effect affecting the enforceability or rights of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies. 
  
 4.3 Absence of Conflicting Agreements. Except for the FCC Consent or
as described on Schedule 4.3, neither the execution, delivery or performance of this Agreement or the TBA in accordance with their respective terms by Seller nor the consummation of the sale and purchase of the Purchased Assets or any other
transaction contemplated by this Agreement (including, without limitation, the commencement or continuation of operations under the TBA), does or will, with or without the giving of notice, or the lapse of time or both, or otherwise: 
  
 (a) conflict with, result in a breach of, or constitute a
default under, the organizational documents of Seller, or any federal, state or local law, statute, ordinance, rule or regulation applicable to Seller, or any court of administrative order or process applicable to Seller, or any material contract,
agreement, arrangement, commitment or plan to which Seller is a party or by which Seller is bound and which relates to, the ownership or operation of the Station or the Purchased Assets; 
  
 (b) result in the creation of any Lien upon any of the Purchased Assets, except for Permitted Liens;

  
 (c) terminate, amend or modify, or give any
other Person the right to terminate, amend, modify, abandon or refuse to perform any material contract, agreement, arrangement, commitment or plan to which Seller is a party and which relates to, the ownership or operation of the Station or the
Purchased Assets; 
  
 (d) accelerate or modify,
or give any party the right to accelerate or modify, the time within which, or the terms under which, any duties or obligations are to be performed, or any rights or benefits are to be received, under any material contract, agreement, arrangement,

  

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commitment or plan to which Seller is a party and which relates to the ownership or operation of the Station or the Purchased Assets; 
  
 (e) require the consent, waiver, approval, permit, license,
clearance or authorization of, or any declaration or filing with, any court or governmental or public agency or other authority other than the FCC; or 
  
 (f) require the consent of any Person under any material agreement, arrangement or commitment of any nature to which Seller is party, by
which Seller is bound, or by which the Purchased Assets are bound or subject. 
  
 4.4 Purchased Assets. The Purchased Assets include all of the assets, properties and rights of every type and description, real, personal and mixed, tangible and intangible, that are necessary for the business
of owning and operating the Station as currently conducted, with the exception of the Retained Assets. Except as set forth on Schedule 4.4, all inventories of supplies, tubes and spare parts necessary or appropriate for the operation of the
Station are at levels at least equal to the Station’s usual and customary levels. 
  
 4.5 Title to Purchased Assets; Liens and Encumbrances. Except as set forth on Schedule 4.5, Seller owns good and marketable title to or has valid leasehold interests in all of the Purchased Assets (other
than the Real Property as to which the provisions of Section 4.9 shall apply) free and clear of any and all Liens except for Permitted Liens. 
  
 4.6 Equipment. Except as set forth on Schedule 4.4, each of the material items of Equipment is in operable condition and is not in need of
imminent repair or replacement and has been serviced and maintained by Seller in accordance with normal industry standards and practices and FCC rules and regulations. 
  
 4.7 The Contracts. Except as set forth on Schedule 4.7: 
  
 (a) Schedule 1.2 lists all agreements relating to
properties, undertakings or commitments to or for third parties in the operation and conduct of the Station except for (i) agreements (other than Tradeout Agreements) for the sale of time on the Station that involve the purchase of less than Five
Thousand Dollars ($5,000.00) in advertising time and require performance over a period of less than thirty (30) days, (ii) other agreements which are cancelable by Seller or its assignee without breach or penalty on not more than thirty (30) days
notice and which involve average annual payments or receipts by the Station of less than Five Thousand Dollars ($5,000.00) in the case of any single contract and Fifteen Thousand Dollars ($15,000.00) in the aggregate, (iii) all agreements, documents
and instruments related to any indebtedness for borrowed money of Seller, and (iv) Seller’s corporate records and internal organizational documents; 
  
 (b) Seller has performed, or is in compliance with, each material term, covenant and condition of each of the Contracts required to be
listed on Schedule 1.2, and no material event of default on the part of Seller, and to the Knowledge of Seller, any other party thereto, exists under any of the Contracts required to be listed on Schedule 1.2; 
  

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 (c) each of the Contracts listed on Schedule 1.2 is in full force and effect,
unimpaired by any acts or omissions of Seller, and constitutes the legal and binding obligation of, and is enforceable against Seller, and to the Knowledge of Seller, against each other party thereto in accordance with its terms, subject only to
bankruptcy, insolvency, reorganization, moratorium or similar laws at the time in effect affecting the enforceability or rights of creditors generally and by general equitable principles which may limit the right to obtain equitable remedies;

  
 (d) Seller has furnished or made available to
Buyer true and complete copies of all written Contracts required to be listed on Schedule 1.2, including all amendments, modifications and supplements thereto, and Schedule 1.2 contains summaries of the following provisions of all oral
Contracts which involve Five Thousand Dollars ($5,000.00) or more in the case of any single oral Contract and Fifteen Thousand Dollars ($15,000.00) or more in the aggregate: the parties thereto, and the nature and value of the goods and services to
be provided thereunder; 
  
 (e) Schedule
1.2 sets forth an accurate and complete list of all Tradeout Agreements, and sets forth for each Tradeout Agreement the parties thereto, the value of broadcast time required to be provided on the Station from and after the date shown on such
Schedule and the value of goods and services to be provided to the Station from and after such date. 
  
 4.8 Intangible Property. Except as set forth on Schedule 4.8: 
  
 (a) there are no claims, demands or proceedings instituted, pending or, to the Knowledge of Seller,
threatened by any Person pertaining to or challenging Seller’s right to use any of the Intangible Property; 
  
 (b) to the Knowledge of Seller, Seller is not infringing upon or otherwise acting adversely to any trademark, trade name, patent or
copyright owned by a third party; 
  
 (c) there
are no royalty agreements between Seller and any third party relating to any of the Intangible Property; 
  
 (d) the Intangible Property constitutes all of the intangible and intellectual property interests and other intellectual property
necessary or appropriate for or used in the operation of the Station (other than Copyrights and Trademarks with respect to Program Rights); and 
  
 (e) all Copyrights and Trademarks are listed on Schedule 1.3 and Schedule 1.11, respectively, and all Intangible Property is
transferable to Buyer by the sole act of Seller. 
  
 4.9 Real
Property. Except as disclosed on Schedule 4.9: 
  
 (a) Seller has good, marketable and insurable fee simple or leasehold interests, as applicable, in the Real Property, and such Real Property includes all real property necessary for the business of the Station as
currently conducted or used in the operation of the Station. Attached to Schedule 4.9 are all policies of title insurance currently existing in favor of 

  

 -17- 

 
Seller with respect to the Real Property. Except for Permitted Liens and the items set forth on Schedule 4.9, there are no Liens on any portion of the
Real Property. No Lien set forth or required to be set forth on Schedule 4.9 materially interferes with the operation of the Station as currently operated; 
  
 (b) Seller has not received notice of any pending condemnation or similar proceeding affecting the Real
Property or any portion thereof, and to the Knowledge of Seller, no such action is presently threatened; 
  
 (c) Seller has not received any written notice from any insurance company of any defects or inadequacies in the Real Property or any part
thereof, which would materially adversely affect the insurability of the Real Property or the premiums for the insurance thereof. Seller has not received any notice from any insurance company which has issued or refused to issue a policy with
respect to any portion of the Real Property or by any board of fire underwriters (or other body exercising similar functions) requiring the performance of any repairs, alterations or other work with which compliance has not been made; 
  
 (d) there are no parties in possession of any portion of the
Real Property other than Seller, whether as lessees, tenants at will, trespassers or otherwise; 
  
 (e) there is no law, ordinance, order, regulation or requirement now in existence, (other than Environmental Laws) which would require any
material expenditure to remediate, remedy, remove, modify or improve any of the Real Property in order to bring it into substantial compliance therewith; 
  
 (f) the Real Property has adequate direct access to and from completed, dedicated and accepted public roads, and there is no pending or,
to the Knowledge of Seller, threatened governmental proceeding which would impair or curtail such access; and 
  
 (g) to the Knowledge of Seller, there are no material structural, electrical, mechanical, plumbing, air conditioning, heating or other
defects in the buildings or towers located on the Real Property and the roofs of the buildings located on the Real Property are free from leaks and in good condition, ordinary wear and tear excepted. 
  
 4.10 The Leases. Except as set forth on Schedule 4.10:

  
 (a) the Leases described on Schedule
1.5 constitute all of the lease agreements between Seller and third parties relating to the operation of the Station or the Purchased Assets; 
  
 (b) Seller has performed each material term, covenant and condition of each of the Leases which is required to be performed by Seller at
or before the date hereof, and no material default or event which with the passing of time or giving of notice or both would constitute a default on the part of the Seller and, to the Knowledge of Seller, on the part of any other party thereto,
exists under any Lease; 
  
 (c) each of the
Leases is in full force and effect, unimpaired by any acts or omissions of Seller, and constitutes the legal and binding obligation of, and is legally enforceable 

  

 -18- 

 
against Seller, and to the Knowledge of Seller, against each other party thereto in accordance with its terms; 
  
 (d) Seller has furnished or made available to Buyer true and
complete copies of the Leases, including any and all amendments thereto; 
  
 (e) there are no leasing commissions or similar payments due, arising out of, resulting from or with respect to any Lease to which Seller is a party; and 
  
 (f) each of Seller’s Financing Leases is listed as such on Schedule 4.10. 
  
 4.11 Financial Statements and Interim Financial Statements.

  
 (a) Attached as Schedule 4.11(a) are
true and complete copies of Seller’s audited Statements of Revenues and Expenses and Supplementary Schedules—Income Tax Basis for the years ended December 31, 2002 and December 31, 2003 (collectively, the “Financial Statements”).
The Financial Statements are in accordance with the books and records of Seller, have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with preceding years and present fairly in all material
respects the financial condition of the Seller as of the date indicated and the results of the Station’s operations and changes in cash flows for the period then ended. 
  
 (b) Attached as Schedule 4.11(b) are true and complete copies of certain financial statements of
Seller as of April 30, 2004 (collectively, the “Interim Financial Statements”). The Interim Financial Statements are in accordance with the books and records of Seller, have been prepared in accordance with generally accepted accounting
principles applied on a basis consistent with the Financial Statements and present fairly in all material respects the financial condition of Seller as of the date indicated and the results of the Station’s operations and changes in cash flows
for the period then ended; subject, however, to year-end adjustments which, in the aggregate, will not be materially adverse and provided that the Interim Financial Statements do not contain footnotes and lack other presentation items. 

 
 4.12 No Changes. Except as set forth on Schedule 4.12 or as
otherwise contemplated by this Agreement, since December 31, 2003 through the Adjustment Time, there has not been any: 
  
 (a) amendment or termination of any Contract, Lease or License to which Seller is a party with respect to the Station except in the
ordinary course of business; 
  
 (b) increase in
compensation paid, payable or to become payable by Seller to any of its employees at the Station, except in the ordinary course of business; 
  
 (c) extraordinary losses (whether or not covered by insurance) or waiver by Seller of any extraordinary rights of value; 
  
 (d) notice from any of the Station’s sponsors or any
customers (determined on the basis of the Station’s revenues for the trailing twelve (12) month period) as to any of such sponsor’s or customer’s intention not to conduct business with the Station, the result of which 

  

 -19- 

 
loss or losses of business, individually or in the aggregate, has had, or could reasonably be expected to have, a Material Adverse Effect; 
  
 (e) sale, assignment, lease or other transfer or disposition
of any of the Purchased Assets or properties of the Station except in the ordinary course of business; 
  
 (f) adverse change in cable carriage or channel position on which the Station is carried (on any cable system with more than 1,000
subscribers); 
  
 (g) period of four (4)
consecutive days or more during which the Station was off the air for any reason or a period of fifteen (15) days or more during which the Station operated at substantially reduced power; 
  
 (h) termination of the Affiliation Agreement or loss by the
Station of the CBS network affiliation; or 
  
 (i) change in the financial condition, business, assets or results of operation of the Station which has had a Material Adverse Effect. 
  
 4.13 No Litigation; Labor Disputes; Compliance with Laws. Except as set forth on Schedule 4.13: 
  
 (a) except for FCC rulemaking proceedings generally
affecting the television broadcasting industry, there is no decree, judgment, order, litigation at law or in equity, arbitration proceeding or other proceeding before or by any commission, agency or other administrative or regulatory body or
authority pending or, to the Knowledge of Seller, threatened, to which Seller is a party or otherwise relating to the Station or the Purchased Assets which could reasonably be expected to have a Material Adverse Effect; 
  
 (b) there is no material investigation by any commission,
agency or other administrative or regulatory body or authority pending or to the Knowledge of Seller threatened, which is specifically concerned with the operations, business or affairs of Seller, the Station or the Purchased Assets; 
  
 (c) the Station is not subject to or bound by any labor
agreement, there is no labor dispute, grievance, controversy, strike or request for union representation or organizational effort with respect to a labor union pending or to the Knowledge of Seller threatened against Seller relating to or affecting
the business or operations of the Station; and 
  
 (d) Seller has carried on and conducted the business and affairs of the Station in compliance with all applicable federal, state and local laws, statutes, ordinances, rules and regulations, and all applicable court or administrative orders
or processes. 
  
 4.14 Taxes. Except as disclosed on
Schedule 4.14: 
  
 (a) Seller has duly
filed all required federal, state and local tax returns, reports and estimates for all years and periods (and portions thereof) for which any such returns, reports and estimates were due to be filed by Seller (taking into account any permitted
extensions), and 

  

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any and all amounts shown on such returns and reports to be due and payable have been paid in full except as may be contested in good faith. All of such
returns, reports and estimates are true and complete in all material respects. Seller has withheld all taxes required to be withheld under applicable law and regulations, and such withholdings have either been paid to the proper governmental agency
or set aside in accounts for such purpose, or accrued, reserved against and entered upon the books of Seller, as the case may be; and 
  
 (b) There are, and after the date of this Agreement will be, no tax deficiencies (including penalties and interest) of any kind assessed
against or relating to Seller or the Purchased Assets with respect to any taxable periods ending on or before, or including, the Closing Date of a character or nature that would result in Liens (other than Permitted Liens) or claims on any of the
Purchased Assets or on Buyer’s title or use of the Purchased Assets or that would result in any claim against Buyer or the Purchased Assets; provided, however, that Seller shall not be deemed to make any representations or warranty with respect
to any Liens or claims arising by reason of, or attributable to, Buyer’s use or operation of the Station or the Purchased Assets on or after the Adjustment Time. 
  
 4.15 Governmental Authorizations. Seller holds, and, on the Closing Date Seller will hold, all regular and valid
licenses, permits and authorizations issued by the FCC set forth on Schedule 1.6. Such licenses, permits and authorizations constitute all of the licenses, permits and authorizations that are necessary under the Communications Act for the
operation of the Station. The Licenses are in full force and effect. Except as set forth on Schedule 4.15, no qualifications, registrations, filings, privileges, franchises, licenses, permits, approvals or authorizations other than the
Licenses and those as set forth on Schedule 4.15 are required for Seller to own and operate the Station in the manner operated on the date hereof. As of the date hereof, (i) no action or proceeding is pending or, to the Knowledge of Seller,
threatened before the FCC or any other governmental authority to revoke, refuse to renew or materially and adversely modify the Licenses (except for FCC rulemaking proceedings generally affecting the television broadcasting industry), and (ii) there
is no pending, issued or outstanding or, to the Knowledge of Seller, threatened investigation, order to show cause, cease and desist order, notice of violation, notice of apparent liability, notice or forfeiture, petition or complaint with respect
to the Station or any of the Licenses. The most recent renewal of the Licenses was granted in the ordinary course for a full renewal term without any conditions (other than conditions set forth in the grant of renewal or the general rules of the
FCC). Seller is not aware of any act or omission that could reasonably be expected to result in a refusal by the FCC to renew the Station’s License for a full term in the normal course upon the timely filing of a complete and properly executed
application for renewal and payment of all applicable filing fees. 
  
 4.16 Compliance with FCC Requirements. Except as set forth on set forth on Schedule 4.16, the Station, its physical facilities, electrical and mechanical systems and transmitting and studio equipment are being and have been
operated in all material respects in accordance with the specifications of the Licenses, and the Station is in compliance in all material respects with the Communications Act, including Part 17, 47 CFR 17.1 et seq. regarding Construction, Marking
and Lighting of Antenna Structures. Except as set forth on Schedule 4.16, Seller has complied in all material respects with the Communications Act concerning advertising in children’s programming, and the record keeping obligations
related thereto. Except as set forth on Schedule 4.16, all obligations, reports and other filings required by the 

  

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FCC with respect to the Station, including, without limitation, material required to be placed in the Station’s public inspection file, have been
properly and timely filed. Except as set forth on Schedule 4.16, no cable television system or satellite service provider has notified Seller of any signal quality deficiency or copyright indemnity or other prerequisite to cable or satellite
carriage of the Station’s signal, and no cable television system or satellite service provider has notified Seller that it has declined or threatened to decline such carriage or failed to respond to a request for carriage or sought any form of
relief from carriage from the FCC. 
  
 4.17 Insurance.
Seller has such amounts and types of insurance coverage as is reasonable and customary for a broadcast television station such as the Station. Seller is not in default with respect to any of its insurance policies, nor has Seller failed to give any
notice or present any claim under any policies in a due and timely fashion. 
  
 4.18 Brokers. Neither this Agreement nor the sale and purchase of the Purchased Assets or any other transaction contemplated by this Agreement was induced or procured through any Person acting on behalf of or
representing Seller as broker, finder, investment banker, financial advisor or in any similar capacity, other than Patrick Communications whose fees and expenses are the sole responsibility of Seller. 
  
 4.19 Employees. Schedule 4.19 is a true and complete list of
all of Seller’s employees as of the date of this Agreement, which list identifies the name of such employees, and the following compensation information with respect to each of them: (i) current annual base salary; (ii) accrued vacation and
sick leave time and; (iii) the dates and amounts of the last increase in compensation. 
  
 4.20 Employee Benefit Plans. Except as set forth in Schedule 4.20, Seller has not at any time maintained or been a party to or made contributions to any of the following: (i) any “employee pension
benefit plan,” as such term is defined in Section 3(2) of ERISA; or (ii) any “employee welfare benefit plan,” as such term is defined in Section 3(1) of ERISA. Except as set forth in Schedule 4.20, all employee benefit plans
maintained by Seller or to which Seller is obligated to contribute (“Employee Benefit Plans”) are, and have in the past been, in all material respects maintained, funded and administered in compliance with ERISA, the Code, and other
applicable law. As to each Employee Benefit Plan for which an annual report, including schedules, or comparable report is required to be filed under ERISA or the Code, no liabilities, with respect to such plan, existed on the dates of such annual
report except as disclosed therein and, except as disclosed in Schedule 4.20, no material adverse change has occurred with respect to the financial data covered by such annual report since the date thereof. Except as disclosed in Schedule
4.20, the execution of this Agreement and performance of the transactions contemplated hereby will not in and of itself constitute a triggering event under any Employee Benefit Plan that will result in any payment (whether of severance pay or
otherwise) becoming due from Seller. Each Employee Benefit Plan that is an employee pension benefit plan, if any, has received a determination letter stating that it is tax-qualified under Section 401(a) of the Code, and to the Knowledge of Seller,
no event has occurred that could result in a disqualification of such plan. Seller has never maintained a pension plan subject to Section 412 of the Code or Title IV of ERISA, and has never maintained, contributed to or been required to contribute
to any employee benefit plan that is a “multiemployer plan” (as defined in Section 3(37)(A) or (D) of ERISA) as amended by the Multiemployer Pension Plan Amendments Acts of 

  

 -22- 

 
1980. Neither Seller nor any plan fiduciary has engaged in any “prohibited transaction,” as defined in Section 406 of ERISA, the Code, or in
Section 4975 of the Code with respect to any Employee Benefit Plan. 
  
 4.21 Environmental Compliance. Except as set forth in Schedule 4.21 (including the reports attached thereto): 
  
 (a) (i) Since June 1, 1999, Seller has complied, in all material respects with all Environmental Laws, and (ii) Seller is currently in
material compliance with all Environmental Laws; 
  
 (b) Seller is not a party to any litigation or administrative proceeding and, to the Knowledge of Seller, nor is any litigation or administrative proceeding threatened against it, which in either case (i) asserts or alleges that Seller
violated any Environmental Laws, (ii) asserts or alleges that Seller is required to clean up, remove or take remedial or other response action due to the disposal, depositing, discharge, leaking or other release of any Hazardous Materials at the
Real Property, or (iii) asserts or alleges that Seller is required to pay all or a portion of the cost of any past, present or future cleanup, removal or remedial or other response action which arises out of or is related to the disposal,
depositing, discharge, leaking or other release of any Hazardous Materials by Seller at any of the Real Property or any Off-Site Location; 
  
 (c) with respect to the period during which Seller owned or occupied the Real Property, and, to the Knowledge of Seller with respect to
the time before Seller owned or occupied the Real Property, no person has caused or permitted Hazardous Materials to be stored, deposited, treated, recycled or disposed of on, under or at any Real Property owned, leased, used or occupied by Seller
which would subject Seller to material liability for the cleanup, removal or some other remedial action under Environmental Laws; 
  
 (d) there are not now, nor, to the Knowledge of Seller, have there previously been, tanks or other facilities on, under, or at the Real
Property which contained any Hazardous Materials which, if known to be present in soils or ground water, would subject any owner or operator of such Real Property to material liability for cleanup, removal or some other remedial action under
Environmental Laws; 
  
 (e) to the Knowledge of
Seller, there are no conditions existing currently which would subject any owner or operator of the Real Property to material damages, penalties, injunctive relief or cleanup costs under any Environmental Laws or which require or are likely to
require material cleanup, removal, remedial action or other response pursuant to Environmental Laws; 
  
 (f) Seller is not subject, as a result of its interest in the Real Property, to any judgment, order or citation related to or arising out
of any Environmental Laws and has not been named or listed as a potentially responsible party by any governmental body or agency in a matter related to or arising out of any Environmental Laws; and 
  
 (g) the operation of the Station does not exceed the
permissible levels of exposure to RF radiation specified in the Communications Act. 
  

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 4.22 Affiliation Agreement. As of the date of this Agreement, (i) the Affiliation Agreement is in
full force and effect and (ii) CBS has not given Seller written or verbal notice of any type of CBS’s intention to terminate or fail to renew the Affiliation Agreement or that CBS is considering such possible termination or failure to renew the
Affiliation Agreement. 
  
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
  
 Buyer represents and warrants to Seller that the statements contained in this Article V are true, correct and complete as of the date of this Agreement,
as follows: 
  
 5.1 Organization. Buyer is a corporation
duly incorporated, validly existing and in good standing under the laws of the State of Delaware and on the Closing Date Buyer shall be duly qualified to do business as a foreign entity in Texas. Buyer has full power and authority to purchase the
Purchased Assets pursuant to this Agreement. 
  
 5.2
Authorization; Enforceability. The execution, delivery and performance of this Agreement and the TBA and all of the documents and instruments required hereby by Buyer are within the power of Buyer and have been duly authorized by all necessary
action by Buyer. This Agreement and the TBA are, and the other documents and instruments required hereby will be, when executed and delivered by Buyer, the valid and binding obligations of Buyer enforceable against Buyer in accordance with their
respective terms, subject only to bankruptcy, insolvency, reorganization, moratorium or similar laws at the time in effect affecting the enforceability or right of creditors generally and by general equitable principles which may limit the right to
obtain equitable remedies. 
  
 5.3 Absence of Conflicting Laws
and Agreements. Neither the execution, delivery or performance of this Agreement or the TBA by Buyer nor the consummation of the sale and purchase of the Purchased Assets or any other transaction contemplated by this Agreement or the TBA does or
will, with or without the giving of notice, or the lapse of time, or otherwise: 
  
 (a) conflict with, result in a breach of, or constitute a default under, the certificate of incorporation or bylaws of Buyer, or any
federal, state or local law, statute, ordinance, rule or regulation applicable to Buyer, or any court or administrative order or process applicable to Buyer, or any material contract, agreement, arrangement, commitment or plan to which Buyer is a
party or by which Buyer or its assets is bound; 
  
 (b) require the consent, waiver, approval, permit, license, clearance or authorization of, or any declaration or filing with, any court or governmental or public agency other than the FCC Consent; or 
  
 (c) require the consent of any Person under any material
agreement, material arrangement or material commitment of any nature to which Buyer is a party or by which it is bound. 
  
 5.4 Brokers. Neither this Agreement nor the sale and purchase of the Purchased Assets or any other transaction contemplated by this Agreement was
induced or procured 

  

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through any Person acting on behalf of or representing Buyer as broker, finder, investment banker, financial advisor or in any similar capacity. 

 
 5.5 Absence of Litigation. There is no decree, judgment, order,
litigation at law or in equity, arbitration proceeding or proceeding before or by any commission, agency or other administrative or regulatory body or authority pending or, to the knowledge of Buyer, threatened to which Buyer is a party and which
could materially and adversely affect Buyer’s ability to purchase the Purchased Assets under this Agreement or to perform its obligations under the TBA. 
  
 5.6 Qualifications of Buyer. Except as set forth in Schedule 5.6, Buyer is qualified under the Communications Act to be the assignee of the
Licenses and Buyer knows of no facts or circumstances (including, without limitation, facts or circumstances implicating the jurisdiction of administrative agencies other than the FCC) that will delay a routine grant of the FCC Consent by the FCC or
cause the FCC to have a basis to deny the assignment of the Licenses as provided for in this Agreement. 
  
 ARTICLE VI 
 CERTAIN MATTERS PENDING THE CLOSING 
  
 From and after the date of this Agreement and until the Closing (unless
otherwise provided herein): 
  
 6.1 Notice of Adverse
Changes. Each party thereto shall as promptly as possible, and in any event within three (3) business days, inform the other of any material communications between such party and the Federal Trade Commission, the Department of Justice, the FCC
or any other governmental authority regarding this Agreement or the transactions contemplated hereby. If any party receives a request for additional information or documentary material from any such governmental authority, then such party shall
endeavor in good faith to make, or cause to be made, as promptly as practicable and after consultation with the other party, an appropriate response to such request. 
  
 6.2 Operations Pending Closing. Subject to the provisions of Section 3.2 regarding control of the Station, after the
date hereof and prior to the Closing and subject to the TBA, Seller shall, except with Buyer’s prior written consent: 
  
 (a) operate the Station in all material respects in accordance with the Communications Act and make all filings necessary to make the
representation in Section 4.15 true and correct at Closing; 
  
 (b) not sell, lease, mortgage, pledge or otherwise dispose of any of the Purchased Assets except for transactions in the ordinary and regular course of the operation of the Station where the proceeds of such
disposition are used to replace such Purchased Assets; 
  
 (c) not enter into, or become obligated under, amend or otherwise modify any agreement or commitment on behalf of the Station; 
  

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 (d) maintain in full force and effect policies of liability and casualty insurance of
substantially the same type, character and coverage as the policies currently carried with respect to the business, operations and assets of the Station; and 
  

(e) take all commercially reasonable action to protect the present service areas of the Station from increased electrical interference
from other stations, existing or proposed, and take all commercially reasonable action to maintain carriage, if any, of the Station’s signals on all cable television systems or satellite systems. 
  
 Notwithstanding any provision of this Agreement or the TBA to the contrary,
none of the following shall be deemed (i) a breach of Seller’s agreements or covenants under this Section 6.2 or under the TBA or of the representations and warranties contained in Article IV hereof, or (ii) a failure of any of the conditions
set forth in Article VII to be satisfied: any fact or circumstance that occurs as a result of either any action or omission to act of the Buyer pursuant to the TBA or any other agreement or arrangement, or by virtue of Buyer’s activities or
operations with respect to the Station. 
  
 6.3 FCC
Reports. Seller will furnish to Buyer within ten (10) days after filing all reports filed with the FCC with respect to the Station after the date hereof. 
  
 6.4 Consents. Seller will use its commercially reasonable efforts to obtain all consents and approvals required from third Persons, whose consent
or approval is required pursuant to any Contract or Lease prior to the Closing Date as a result of the purchase and sale of the Purchased Assets as contemplated herein. Buyer shall cooperate with Seller in such efforts. Anything to the contrary in
this Agreement notwithstanding, Seller shall not be required to pay any fees or provide or deliver any other consideration to any such Person in order to obtain such consent or approval. 
  
 6.5 Cooperation; Reasonable Efforts; Release. Subject to Section 3.1 hereof, Buyer and Seller will cooperate in all
respects in connection with and use commercially reasonable efforts to: (a) secure any nongovernmental approvals, consents and waivers of third parties listed in Schedule 4.3; (b) give notices to any governmental authority, or secure the
permission, approval, determination, consent or waiver of any governmental authority, required by law in connection with the transfer of the Purchased Assets from Seller to Buyer; and (c) cause all of the conditions set forth in Article VII and
Article VIII to be satisfied (but not waived). 
  
 6.6 Tax
Returns and Payments. 
  
 (a) All tax
returns, estimates and reports with respect to the Purchased Assets or operation of the Station that are required to be filed by Seller prior to the Closing Date or relating to periods prior to the Closing Date will be timely filed when due with the
appropriate governmental agencies or extensions will have been granted; and 
  
 (b) All taxes pertaining to ownership of the Purchased Assets or operation of the Station prior to the Closing Date will be paid by Seller when due and payable unless protested in good faith. 
  

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 6.7 Release of Liens. Except for the Permitted Liens, at or prior to the Closing, Seller shall
obtain the release of all Liens disclosed in the Schedules hereto and any other Liens on the Purchased Assets and shall duly file releases or terminations of all such Liens in each governmental agency or office in which any such Lien or evidence
thereof shall have been previously filed. 
  
 6.8 Public
Announcement. Seller shall publish and broadcast a public notice concerning the filing of the application for assignment of the Licenses in accordance with the requirements of Section 73.3580 of the FCC’s Rules. As to any other
announcements, no party hereto shall issue any press release or public announcement or otherwise divulge the existence of this Agreement or the transactions contemplated hereby without prior approval of the other party hereto (which shall not be
unreasonably withheld) except as and to the extent that such party shall be obligated by law, rule or regulation, in which case the other party shall be so advised and the party shall use commercially reasonable efforts to cause a mutually agreeable
release or announcement to be issued. 
  
 6.9 Exclusivity.
Seller agrees and covenants that until Closing or this Agreement expires or is terminated, neither Seller nor any of its representatives, will discuss, negotiate or offer (or solicit offers) regarding a sale, transfer or other disposition of the
Station or the Purchased Assets or any merger, combination, restructuring, refinancing or similar transaction involving Seller (a “Sale”) with another Person or provide any information to any other Person regarding the Station or Seller in
that connection. Seller represents that it is not a party to or bound by any agreement with respect to a Sale except for this Agreement. Seller will disclose to Buyer the existence or occurrence of any proposal or contract whether written or oral
which it may receive during the term of this Agreement in respect of any such competing transaction. 
  
 6.10 Real Estate Matters. 
  
 (a) Prior to the Closing, Seller will cooperate with Buyer so that Buyer may obtain, for the benefit of and at the cost of Buyer, all
documents reasonably required (including estoppel certificates, owner’s affidavits, indemnities and GAP undertakings) for a final commitment for an ALTA Owners Policy of Title Insurance, as the case may be, Form B-1970, for each parcel of Real
Property, issued by a title insurer designated by Buyer (the “Title Insurer”), in such amount as Buyer reasonably determines to be the fair market value thereof, insuring the Buyer’s interest in such parcel, subject only to the
Permitted Liens, and with such other endorsements and other terms and conditions as Buyer may reasonably request. 
  
 (b) At Buyer’s request, Seller will cooperate with Buyer so that Buyer may procure for the benefit of and at the cost of Buyer, in
preparation for the Closing, current surveys of each parcel of Real Property disclosing no survey defects or encroachments which materially interfere with the current business and operation of the Station, prepared by a licensed surveyor and
conforming to 1992 ALTA/ACSM Minimum Detail Requirements for Urban Land Title Surveys, and such standards as the Title Insurer may reasonably require as a condition to the removal of any survey exceptions from the commitment for the title insurance
policy described in Section 6.10(a), and certified to Buyer, Buyer’s lenders and the Title Insurer, in a form sufficient to permit the issuance of the title policies described above in Section 6.10(a). 
  

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 6.11 Access and Information. From the date hereof, Buyer shall be entitled to make or cause to be
made such reasonable investigation of the Purchased Assets as the Buyer deems necessary or advisable, and Seller shall reasonably cooperate with any such investigation. In furtherance of the foregoing, but not in limitation thereof, Seller will
provide Buyer and its agents and representatives, or cause them to be provided, with reasonable access to any and all of its management personnel, accountants, representatives, premises, properties, contracts, commitments, book, records and other
information of Seller upon reasonable notice and during regular business hours and shall furnish such financial and operating data, projections, forecasts, business plans, strategic plans and other data related to the Seller and its business as the
Buyer, and its agents, representatives and advisors shall reasonably request from time to time. Seller and its Affiliates agree to use their reasonable efforts to cause their respective officers, employees, consultants, agents, accountants and
attorneys to reasonably cooperate with the Buyer, its representatives and advisors in connection with such review and the financing of the transactions contemplated hereby, including the preparation by the Buyer of any offering memorandum, bank
book, registration statement or related documents or other documents related to such financing; provided that the Buyer shall be responsible and shall promptly pay for any out of pocket expenses incurred by Seller in such regard. 
  
 6.12 Certain Operating Events. Buyer acknowledges that there is
on-going repair work with respect to Station’s tower, a roofing project at the Station’s main studio/office building location and a promotional cruise expense for the Station scheduled for 2004, all as set forth in Schedule 6.12
hereof. Buyer agrees to accept responsibility for the completion of these projects and assume the costs thereof (not including costs incurred or accrued prior to the Adjustment Time, which shall be the responsibility of Seller) and will pay for any
portion of the cost of these repairs that occurs during its operation of the Station under the TBA. In the event of a termination of this Agreement prior to Closing, except with respect to a termination described in Section 11.2(c), Buyer shall be
entitled to reimbursement of its expenses associated with the completion of the projects outlined in this Section. 
  
 ARTICLE VII 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER 

 
 Each and every obligation of Buyer to be performed on the Closing Date
shall be subject to the satisfaction prior to or at the Closing of the following express conditions precedent: 
  
 7.1 Compliance with Agreement. Seller shall have performed and complied in all material respects with all of Seller’s obligations under this
Agreement and the TBA which are to be performed or complied with by it prior to or at the Closing. 
  
 7.2 Representations and Warranties. The representations and warranties made by Seller shall be true and correct as of the date hereof and as of the
Closing Date, in each case disregarding all materiality qualifiers set forth therein, except for (A) matters which have not or could not reasonably be expected to have a Material Adverse Effect and (B) changes permitted or contemplated by this
Agreement, or contemplated or effected as a result of the TBA or Buyer’s operations, activities, acts or omissions with respect to the Station. 
  

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 7.3 Deliveries at Closing. Seller shall have delivered or caused to be delivered to Buyer the
documents, each properly executed and dated as of the Closing Date as required pursuant to Section 2.3(a). 
  
 7.4 Other Documents. Seller shall have delivered, or cause to be delivered, to Buyer such documents and certificates of officers of Seller and
public officials as shall be reasonably requested by Buyer’s counsel to establish the existence and good standing of Seller and the due authorization of this Agreement and the transactions contemplated hereby by Seller. 
  
 7.5 Required Approvals and Consent. There shall have been secured such
permissions, approvals, determinations, consents and waivers, as may be listed on Schedule 7.5. 
  
 7.6 Absence of Investigations and Proceedings. Except for governmental proceedings relating to the television broadcast industry generally, there
shall be no claim, suit, action or other proceeding pending or threatened before or by any court, governmental agency, arbitrator or other entity against any party to this Agreement the effect of which would make it reasonably likely to be unlawful
to consummate the transactions contemplated by this Agreement to be performed prior to or at the Closing. 
  
 7.7 FCC Consent. The FCC Consent for the Station’s main broadcast television license (KLST(TV)) shall have been issued (without any conditions
materially adverse to Buyer other than those generally applicable to assignees of such licenses) and shall, be in full force and effect. 
  
 7.8 Licenses. Seller shall be the holder of the Licenses and there shall not have been any modification of any of such Licenses which has had or
could reasonably be expected to have a Material Adverse Effect. The Station shall be operating in material compliance with the Communications Act, and no proceeding shall be pending or, to the Knowledge of Seller, threatened, the effect of which
would be to revoke, cancel, fail to renew, suspend or modify materially and adversely any of the Licenses. 
  
 7.9 Release of Liens. All Liens (other than Permitted Liens) on the Purchased Assets shall be released as provided in Section 6.7.

  
 If any of the conditions set forth in this Article VII have
not been satisfied prior to or at the Closing, Buyer may (without waiving any other right or remedy under this Agreement or the TBA) in its sole discretion waive any such condition (other than as set forth in Section 7.7) and elect to proceed with
the consummation of the transactions contemplated hereby. 
  
 ARTICLE VIII 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER 
  
 Each and every obligation of Seller to be performed on the Closing Date shall
be subject to the satisfaction prior to or at the Closing of the following express conditions precedent: 
  
 8.1 Compliance with Agreement. Buyer shall have performed and complied in all material respects with all of its obligations under this Agreement
and the TBA which are to be performed or complied with by it prior to or at the Closing. 
  

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 8.2 Representations and Warranties. The representations and warranties made by Buyer in this
Agreement shall be true and correct in all material respects as of the Closing Date with the same force and effect as though such representations and warranties had been made on the Closing Date. 
  
 8.3 Deliveries at Closing. Buyer shall have delivered, or caused to be
delivered, to Seller the documents, each properly executed and dated as of the Closing Date, required pursuant to Section 2.3(b). Buyer shall also have made the payments described in Section 2.2. 
  
 8.4 Other Documents. Buyer shall have delivered, or caused to be
delivered, to Seller such documents and certificates of officers of Buyer and of public officials as shall be reasonably requested by Seller’s counsel to establish the existence and good standing of Buyer and the due authorization of this
Agreement and the transactions contemplated hereby by Buyer. 
  
 8.5 Absence of Investigations and Proceedings. Except for governmental proceedings relating to the television broadcast industry generally, no claim, suit, action or other proceeding shall be pending or threatened before or by any
court, governmental agency, arbitrator or other entity against any party to this Agreement the effect of which would make it reasonably likely to be unlawful to consummate the transactions contemplated by this Agreement to be performed prior to or
at the Closing. 
  
 8.6 Governmental Consents. The FCC
Consent shall have been issued (without any conditions materially adverse to Seller other than those generally applicable to assignors of such licenses) and shall be in full force and effect. All other material authorizations, consents or approvals
of any and all governmental regulatory authorities necessary in connection with the consummation of the transactions contemplated by this Agreement shall have been obtained and be in full force and effect. 
  
 If any of the conditions set forth in this Article VIII have not been
satisfied, Seller may (without waiving any other right or remedy under this Agreement or the TBA) in its sole discretion waive any of such conditions (other than as set forth in Section 8.6) and elect to proceed with the consummation of the
transactions contemplated hereby. 
  
 ARTICLE IX 

INDEMNIFICATION 
  
 9.1 Survival of Representations and Warranties. All of the representations and warranties of the parties hereto contained in the Agreement shall
survive the Closing (regardless of any investigation or inquiry of any party and even if the damaged party knew or had reason to know of any misrepresentation or breach of warranty at the time of Closing) and continue in full force and effect until
the date that is six months following the Closing Date; provided, however, that (i) the representations and warranties contained in Section 4.21 shall survive the Closing and continue in full force and effect until the one year
anniversary of the Closing Date, unless Seller fails to provide, at Seller’s expense, Buyer with a Phase I environmental report at least 30 days prior to the Closing, in a form reasonably satisfactory to Buyer, which report does not disclose
any matter that would be a breach of the representations and warranties contained in Section 4.21 (without reference to any Knowledge qualifiers therein), in which case the representations and 

  

 -30- 

 
warranties contained in Section 4.21 shall survive the Closing and continue in full force and effect until the five year anniversary of the Closing Date;
(ii) the representations and warranties contained in Section 4.14 shall survive the Closing and continue in full force and effect for a period expiring 60 days after the expiration of the applicable statutes of limitation, and (iii) the
representations and warranties contained in Sections 4.2 and 4.18 shall continue in full force and effect forever; provided, that any representation or warranty in respect of which indemnity may be sought under this Article IX, and the
indemnity with respect thereto, shall survive the time at which it would otherwise terminate pursuant to this Section 9.1 if notice of the inaccuracy or breach thereof giving rise to such right of indemnity shall have been given to the party against
whom such indemnity may be sought prior to such time; in any such case such representation or warranty shall survive until any claim for indemnity related to such inaccuracy or breach is resolved. The representations and warranties in this Agreement
shall in no event be affected by any investigation, inquiry or examination made for or on behalf of any party, or the knowledge of any party’s officers, directors, shareholders, employees or agents or the acceptance by any party of any
certificate or opinion hereunder. 
  
 9.2 Indemnification by
Seller. Subject to (a) the survival provisions set forth in Section 9.1 and (b) the other limitations set forth in this Article IX, Seller shall indemnify and hold harmless Buyer, its Affiliates, and their successors and assigns (collectively,
“Buyer Indemnified Parties”) from and against any and all losses, damages, costs, expenses, liabilities, obligations and claims of any kind (including, without limitation, reasonable attorneys’ fees) (“Losses”) which Buyer
Indemnified Parties may at any time suffer or incur, or become subject to, as a result of or in connection with: 
  
 (i) any breach of the representations and warranties made by Seller in or pursuant to this Agreement, or in any instrument, certificate or
affidavit delivered by Seller at the Closing in accordance with the provisions of this Agreement; 
  
 (ii) any failure by Seller to carry out, perform, or otherwise fulfill or comply with any covenant, agreement, undertaking, or obligation
under this Agreement or the TBA; 
  
 (iii) the
Retained Liabilities; 
  
 (iv) without limiting
clause (iii) above, any and all losses, liabilities or damages resulting from the litigation required to be listed on Schedule 4.13; or 
  
 (v) any suit, action or other proceeding brought by any governmental authority or other Person arising out of, or in any way related to,
any of the matters referred to in Sections 9.2(i), 9.2(ii), 9.2(iii) or 9.2(iv). 
  
 9.3 Indemnification by Buyer. Subject to the survival provisions set forth in Section 9.1, Buyer agrees to indemnify and hold harmless Seller, its Affiliates, and their respective successors and assigns
(individually a “Seller Indemnitee,” and collectively the “Seller Indemnified Parties”) from, against and in respect of any and all Losses, which Seller Indemnified Parties may at any time suffer or incur, or become
subject to, as a result of or in connection with: 
  
 (i) any breach of the representations and warranties of Buyer contained in this Agreement or in any instrument, certificate or affidavit delivered by or on behalf of Buyer at the Closing in accordance with the provisions of this Agreement;
and 
  

 -31- 

 (ii) any failure by Buyer to carry out, perform, or otherwise fulfill or comply with any
covenant, agreement, undertaking, or obligation under this Agreement or the TBA; 
  
 (iii) the Assumed Liabilities; 
  
 (iv) the operation of the Station and the ownership of the Purchased Assets from and after the Closing (provided that the Seller
Indemnified Parties shall not be entitled to indemnification hereunder with respect to claims made by Buyer under Section 9.2); or 
  
 (v) any suit, action or other proceeding brought by any governmental authority or Person arising out of, or in any way related to, any of
the matters referred to in 9.3(i) , 9.3(ii), 9.3(iii) or 9.3(iv). 
  
 9.4 Indemnification Procedures. 
  
 (a) Notice of Third Party Claim. Any party making a claim for indemnification under Sections 9.2 or 9.3 (the “Indemnified Party”) will notify the party from whom indemnification is claimed (the “Indemnifying
Party”) of the claim in writing promptly after receiving written notice of any action, lawsuit, proceeding, investigation or other claim against it by a third party. Such notice will describe the claim, the amount thereof (to the extent
then known and quantifiable), and the basis therefor, in each case to the extent known to the Indemnified Party. The failure to so notify the Indemnifying Party will not relieve the Indemnifying Party of its obligations under Sections 9.2 or 9.3, as
the case may be, except to the extent that such failure actually prejudices the Indemnifying Party. 
  
 (b) Assumption of Defense. With respect to any third party claim which gives rise or is alleged to give rise to a claim for
indemnity under Sections 9.2 or 9.3 and which involves only the payment of money damages to such third party and which does not concern any Licenses, the Indemnifying Party, at its option (subject to the limitations set forth below), will be
entitled to control and assume responsibility for the defense of such claim and to appoint a competent and reputable counsel reasonably acceptable to the Indemnified Party to act as lead counsel of such defense. Prior to the Indemnifying
Party’s assuming control of such defense, the Indemnifying Party must first furnish the Indemnified Party with evidence which, in the Indemnified Party’s reasonable judgment, establishes that the Indemnifying Party is and will be able to
satisfy any such liability. 
  
 (c) Limits of
Assumption of Defense. An Indemnifying Party’s rights under Section 9.4(b) will be subject to the following additional limitations: 
  
 (i) with respect to any claim the defense of which the Indemnifying Party has assumed, the Indemnified Party will be entitled to
participate in the defense of 

  

 -32- 

 
such claim and to employ counsel of its choice for such purpose, and the fees and expenses of such separate counsel will be borne by the Indemnified Party
(except that the reasonable fees and expenses of such separate counsel incurred prior to the date the Indemnifying Party effectively assumes control of such defense will be borne by the Indemnifying Party); 
  
 (ii) the Indemnifying Party will not be entitled to assume
(or retain, as applicable) control of such defense if (A) the claim for indemnification relates to or arises in connection with any criminal proceeding, action, indictment, allegation or investigation against the Indemnified Party, (B) the
Indemnified Party reasonably concludes in good faith that, in light of any actual or potential conflict of interest, it would be inappropriate for legal counsel selected by the Indemnifying Party to represent the Indemnified Party, (C) the
Indemnified Party reasonably believes in good faith that an adverse determination with respect to the action, lawsuit, investigation, proceeding or other claim giving rise to such claim for indemnification would be materially detrimental to or
materially injure the Indemnified Party’s reputation or future business prospects (or, in the case of a claim by the Buyer, a Station’s or a Company’s reputation or business prospects), or (D) upon the Indemnifying Party failing to
vigorously prosecute or defend such claim in good faith or failing to begin such prosecution or defense in a timely manner; and 
  
 (iii) if the Indemnifying Party assumes control of the defense of any such claim, then the Indemnifying Party will obtain the prior
written consent of the Indemnified Party before entering into any settlement of such claim, if such settlement does not expressly and unconditionally release the Indemnified Party from all liabilities and obligations with respect to such claim.

  
 If the Indemnifying Party has the right to, but does not,
assume control of the defense of any claim in accordance with this Section 9.4, then the Indemnifying Party may nonetheless participate (at its own expense) in the defense of such claim and at the Indemnifying Party’s request the Indemnified
Party will consult in a reasonable manner with the Indemnifying Party in respect of such defense. As used in this Article IX, the term “settlement” refers to any settlement, compromise, consent or similar decree, or election to permit
default judgment to be entered, in respect of any claim. 
  
 9.5 Remedies 
  
 (a) The
indemnification provisions of this Article IX are the sole and exclusive post-Closing remedy of Buyer and Seller for a breach or nonperformance of any representations, warranties or covenants contained in this Agreement or in any related agreement,
document, instrument or certificate (other than (i) the rights and remedies contained in the TBA, which shall be deemed non-exclusive herewith, (ii) in the case of fraud, and (iii) rights to seek specific performance). 
  
 (b) Except with respect to Environmental Liabilities arising
from Environmental Conditions at any Off-Site Location existing as of the Closing, Buyer hereby agrees that its sole and exclusive remedy against Seller with respect to any and all Environmental Liabilities or losses arising under or related to any
Environmental Law or any Hazardous Materials, including statutory, common law or equitable claims, in connection with the operation 

  

 -33- 

 
of the Station or the Purchased Assets, shall be the indemnity for breach of the representation and warranty set forth in Section 4.21. Except with respect
to the remedy referred to in the preceding sentence and except with respect to Environmental Liabilities arising from Environmental Conditions at any Off-Site Location existing as of the Closing, Buyer waives, to the fullest extent permitted under
applicable law, and forever releases the Seller, in connection with the operation of the Station and the Purchased Assets, for any and all Environmental Liabilities or losses arising under or related to any Environmental Law or any Hazardous
Materials, including losses arising under statutory, common law or equitable claims. 
  
 9.6 Certain Limitations of Liability. Any provision of this Agreement to the contrary notwithstanding, the Seller shall have no obligation to indemnify any Buyer Indemnified Parties for any Losses suffered or
incurred by the Buyer Indemnified Party for a breach of the representations or warranties of Seller made under this Agreement or in any instrument, certificate or affidavit delivered by or on behalf of Seller under this Agreement (a) until such
Losses exceed an aggregate deductible of Sixty Three Thousand Seven Hundred and Fifty Dollars ($63,750.00) (the “Indemnity Deductible”) (after which point the Seller shall be obligated to indemnify Buyer from and against all Losses in
excess of the Indemnity Deductible), and (b) to the extent such Losses exceed the sum of Three Million Seven Hundred and Fifty Thousand Dollars ($3,750,000.00); provided that such limitations shall not apply to Losses related to breaches of
representations and warranties contained in Sections 4.2, 4.5, 4.14, 4.18, 4.20 and 4.21. 
  
 9.7 Determination of Loss and Amount. In view of the limitation set forth in Section 9.6(a), for purposes of determining whether any Loss has occurred, or the amount of such Loss, the representations,
warranties, covenants and agreements of the parties set forth in this Agreement will be considered without regard to any materiality qualification set forth therein. 
  
 9.8 Survival. Notwithstanding any other provision to the contrary in this Agreement, this Article IX shall survive
termination of this Agreement without limitation. 
  
 ARTICLE X

 FURTHER AGREEMENTS 
  
 10.1 Event of Loss. If prior to Closing the Station shall suffer an Event of Loss, at Closing, Seller shall assign to Buyer all its rights under
any insurance and all proceeds of insurance (excluding business interruption proceeds for periods prior to the Closing Date) covering the property damage, destruction or loss not repaired, replaced or restored prior to Closing. 
  
 10.2 Station Employees. Immediately prior to the Adjustment Time
Seller shall terminate all of its employees except the General Manager of the Station, and Seller shall be responsible for and shall pay any and all severance obligations and earned and accrued vacation owed to such terminated employees (provided
that Buyer shall retain all obligation to provide “continuation coverage” within the meaning of Section 4980B(f) of the Code, Sections 601-609 of ERISA, and any similar local law). Buyer shall, effective as of the Adjustment Time, offer
employment to all employees of Seller except the General Manager of the Station, upon terms 

  

 -34- 

 
substantially consistent with their respective current employment with Seller, or, if applicable, pursuant to the terms and provisions of such
employees’ respective employment agreements as listed on Schedule 1.2. Any notification required by any federal, state or local law governing mass layoffs or terminations, including without limitation the federal Worker Adjustment and
Retraining Notification Act of 1988, shall be given by Seller. Compliance with all such laws shall be Sellers’ sole responsibility and liability. Seller shall indemnify, defend and hold Buyer harmless from and against all liabilities, claims
and causes of action (including, without limitation, reasonable attorney fees and other legal costs and expenses) arising out of the violation, or alleged violation, of any such laws, any other employment laws or otherwise arising out of any such
termination of any of the employees. 
  
 10.3 Bulk
Transfer. Buyer and Seller hereby waive compliance with the Bulk Transfer provisions of the Uniform Commercial Code and all similar laws. Except for the Assumed Liabilities, Seller shall promptly pay and discharge when and as due all liabilities
and obligations arising out of or relating to Seller’s ownership and operation of the Station prior to Closing and its sale of the Station to Buyer. Except for the Assumed Liabilities, Seller hereby agrees to indemnify, defend and hold Buyer
harmless from and against any and all liabilities, losses, costs, damages or causes of action (including, without limitation, reasonable attorney fees and other legal costs and expenses) arising out of or relating to claims asserted against Buyer
pursuant to the Bulk Transfer provisions of the Uniform Commercial Code of Texas or any similar law. 
  
 10.4 Non-Solicitation 
  
 (a) Seller agrees that neither Seller nor its Affiliates will, directly or indirectly, for a period of three (3) years from and after the
Closing Date, contact, approach or solicit for the purpose of offering employment to or hiring (whether as an employee, consultant, agent, independent contractor or otherwise) or actually hire any person who is employed in the operation of the
Station on the date hereof (other than those persons who are not offered employment by Buyer on or about the Adjustment Time on substantially the same terms as the terms of employment such persons have with Seller as of the date hereof), or induce
or attempt to induce any customer or other business relation of the Station to cease doing business with Buyer or the Station. 
  
 (b) If the final judgment of a court of competent jurisdiction declares that any term or provision of this Section 10.4 is invalid or
unenforceable, the parties agree that the court making the determination of invalidity or unenforceability will have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any
invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement will be enforceable as so
modified after the expiration of the time within which the judgment may be appealed. 
  
 10.5 Rescission of Agreement. If the Closing occurs prior to a Final Order, and prior to becoming a Final Order, the FCC Consent is reversed or otherwise set aside, and there is a final order of the FCC (or
court of competent jurisdiction) requiring the re-assignment of the Licenses to Seller, then Seller and Buyer agree that the purchase and sale of the Purchased 

  

 -35- 

 
Assets shall be rescinded. In such event, Buyer shall reconvey to Seller the Purchased Assets, and Seller shall repay to Buyer the Purchase Price and
reassume the Assumed Contracts and the Assumed Liabilities assigned and assumed by Buyer at Closing. Any such rescission shall be consummated on a mutually agreeable date within thirty (30) calendar days of such final order (or, if earlier, within
the time required by such order). In connection therewith, Buyer and Seller shall each execute such documents (including execution by Buyer of instruments of conveyance of the Purchased Assets to Seller and execution by Seller of instruments of
assumption of the Assumed Contracts and the Assumed Liabilities assigned and assumed at Closing) and make such payments (including repayment by Seller to Buyer of the Purchase Price) as are necessary to give effect to such rescission. 
  
 ARTICLE XI 
 TERMINATION; MISCELLANEOUS 
  
 11.1 Termination. This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Closing, as follows: 
  
 (a) by mutual written agreement of Seller and Buyer; or

  
 (b) at any time on or after December 31,
2004, if the transactions contemplated hereby have not yet been consummated, 
  
 (i) by Seller, by written notice to Buyer, if each condition set forth in Article VII has been satisfied (or will be satisfied by the delivery of documents by the parties prior to the Closing) or waived in writing on
such date and Buyer has nonetheless failed to consummate the transactions contemplated hereby; or 
  
 (ii) by Buyer, by written notice to Seller, if each condition set forth in Article VIII has been satisfied (or will be satisfied by the
delivery of documents by the Parties prior to the Closing) or waived in writing on such date and Seller has nonetheless failed to consummate the transactions contemplated hereby; or 
  
 (c) by Buyer, if Buyer is not then in material breach of this Agreement or the TBA and Seller is then in
material breach of this Agreement or the TBA, and such breach remains uncured for fifteen (15) days after receipt of written notice thereof from Buyer; or 
  
 (d) by Seller, if Seller is not then in material breach of this Agreement or the TBA and Buyer is then in material breach of this
Agreement or the TBA, and such breach remains uncured for fifteen (15) days after receipt of written notice thereof from Seller; or 
  
 (e) by Buyer or Seller upon termination (other than in connection with Closing) of the TBA in accordance with the terms thereof; or

  
 (f) by Buyer or Seller, by written notice to
the other, at any time after June 30, 2005, provided the party seeking to terminate this Agreement is not in material breach of this Agreement or the TBA. 
  

 -36- 

 11.2 Rights on Termination; Waiver. 
  
 (a) If this Agreement is terminated pursuant to Section 11.1(a), 11.1(e) (and neither party is in material
default under the TBA), or 11.1(f), all further obligations of the parties under or pursuant to this Agreement shall immediately terminate without further liability of any party to the other and the initial payment of One Million Seven Hundred and
Fifty Thousand Dollars ($1,750,000.00) made pursuant to Section 2.2(a) hereof shall be returned promptly to Buyer. 
  
 (b) If this Agreement is terminated (or terminable in the case of clause (i) below) by Buyer pursuant to Sections 11.1(b)(ii), 11.1(c), or
pursuant to Section 11.1(e) (and Seller is in material default under the TBA), then Buyer shall be entitled to (i) pursue the legal remedy of specific performance (in lieu of terminating this Agreement), or (ii) claim and be paid by Seller as its
sole liquidated damages hereunder and under the TBA, a return of the initial payment of One Million Seven Hundred and Fifty Thousand Dollars ($1,750,000.00) made pursuant to Section 2.2(a) hereof, plus an amount equal to its direct and actual
damages, not to exceed the sum of One Million Seven Hundred and Fifty Thousand Dollars ($1,750,000.00). 
  
 (c) If this Agreement is terminated by Seller pursuant to Sections 11.1(b)(i), 11.1(d), or pursuant to Section 11.1(e) (and Buyer is in
material default under the TBA), then Seller shall be entitled to claim and be paid as its sole liquidated damages hereunder and under the TBA, the sum of One Million Seven Hundred and Fifty Thousand Dollars ($1,750,000.00), which payment shall be
satisfied by Seller retaining the initial payment described in Section 2.2(a). 
  
 (d) The parties agree that the liquidated damages provided in Sections (b) and (c) above are intended to limit the claims that a
non-defaulting party hereto may have against a defaulting party hereto in the circumstances described therein. The parties acknowledge and agree that the liquidated damages provided in such Sections bear a reasonable relationship to the anticipated
harm, which would be caused by a breach of this Agreement and the TBA. The parties further acknowledge and agree that the amount of actual loss caused by a breach of this Agreement is incapable and difficult of precise estimation and that there
would not be a convenient and adequate alternative to liquidated damages hereunder. 
  
 11.3 Further Assurances. From time to time after the Closing Date, upon the reasonable request of Buyer, Seller shall execute and deliver or cause to be executed and delivered such further instruments of
conveyance, assignment and transfer and take such further action as Buyer may reasonably request in order more effectively to sell, assign, convey, transfer, reduce to possession and record title to Buyer to any of the Purchased Assets. Seller
agrees to cooperate with Buyer in all reasonable respects to assure to Buyer the continued title to and possession of the Purchased Assets in the condition and manner contemplated by this Agreement; provided, however, Seller shall not
be required to spend additional sums of money other than incidental expenses. 
  
 11.4 Survival. The obligations to indemnify contained in Article IX hereof, the agreements contained herein and, as limited by Article IX hereof, shall survive the Closing and the consummation of the
transactions contemplated by this Agreement, and any dissolution, 

  

 -37- 

 
merger or consolidation of Buyer or Seller and shall bind the legal representatives, assigns and successors of Buyer and Seller. 
  
 11.5 Entire Agreement; Amendment; Waivers. This Agreement, the TBA and
the documents required to be delivered pursuant hereto constitute the entire agreement between the parties pertaining to the subject matter hereof, and supersede all prior and contemporaneous agreements, understandings, negotiations and discussions
of the parties, whether oral or written, and there are no warranties, representations or other agreements between the parties in connection with the subject matter hereof, except as specifically set forth herein. No amendment, supplement,
modification, waiver or termination of this Agreement shall be binding unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provision of this Agreement, whether or not similar, unless otherwise expressly provided. 
  
 11.6 Expenses. Except as otherwise specifically provided herein, whether or not the transactions contemplated by this Agreement are consummated, each of the parties shall pay the fees and expenses of its
respective counsel, accountants and other experts incident to the negotiation, drafting and execution of this Agreement, the TBA and consummation of the transactions contemplated hereby. 
  
 11.7 Benefit; Assignment. This Agreement shall be binding upon and inure to the benefit of and shall be enforceable
by Buyer and Seller and its respective proper successors and permitted assigns. This Agreement (and any rights, obligations or liabilities hereunder) may not be assigned or delegated in whole or in part by any party without the prior written consent
of the other party; provided, however, that Buyer may, without such consent, (a) prior to the Closing, (i) assign any or all of its rights and any claims under this Agreement to one or more of its creditors, or (ii) assign any or all
of its rights and interests hereunder to one or more of its Affiliates, provided further, however, that in such case (x) the representations and warranties of Buyer hereunder shall be true and correct in all material aspects as applied to the
assignee, (y) both Buyer and the assignee shall execute and deliver to Seller a written instrument in form and substance satisfactory to Seller within its reasonable judgment in which both Buyer and the assignee agree to be jointly and severally
liable for performance of all of Buyer’s obligations under this Agreement, and (z) Buyer and the assignee shall deliver such other documents and instruments as reasonably requested by Seller, including appropriate certified resolutions of the
boards of directors of Buyer and the assignee; and (b) after the Closing, assign any or all of its rights and any claims under this Agreement to any other Person. In the event Buyer assigns its rights hereunder pursuant to this Section 11.7, Seller
shall reasonably cooperate with Buyer and its assignee to consummate the transactions contemplated hereby with such assignee. 
  
 11.8 Confidentiality. 
  
 (a) Buyer agrees that prior to Closing, Buyer and its Affiliates, respective agents and representatives shall only use for its or their
own benefit (except when required by law, rule or regulation and except for use in connection with Buyer’s financing of the transaction and Buyer’s investigation of the Station and its assets in connection with this Agreement), and shall
hold in strict confidence and not disclose (unless required under applicable laws or pursuant to a duly issued subpoena), (i) any data or information relating to Seller, its Affiliates, or the 

  

 -38- 

 
Station obtained from Seller or any of its directors, officers, employees, agents or representatives in connection with this Agreement, or (ii) any data and
information relating to the business, customers, financial statements, conditions or operations of the Station which is confidential in nature and not generally known to the public (clauses (i) and (ii) together, “Seller’s
Information”). If the transactions contemplated in this Agreement are not consummated for any reason, Buyer shall return to Seller all data, information and any other written material obtained by Buyer from Seller in connection with this
transaction and any copies, summaries or extracts thereof, and shall refrain from disclosing any of Seller’s Information to any third party or using any of Seller’s Information for its own benefit or that of any other person, other than in
connection with the filing of tax returns applicable to the Purchased Assets. 
  
 (b) Seller agrees that Seller and its Affiliates, agents and representatives shall only use for its or their own benefit (except when required by law, rule or regulation and except for use in connection with their
investigations and review of Buyer in connection with this Agreement), and shall hold in strict confidence and not disclose (unless required under applicable laws or pursuant to a duly issued subpoena or in connection with obtaining any required
third party consents or approvals or filing any tax returns), (i) any data or information, relating to Buyer or its Affiliates obtained from Buyer, or from any of its directors, officers, employees, agents or representatives, in connection with this
Agreement, or (ii) any data and information relating to the business, customers, financial statements, conditions or operations of the Station or the Buyer (including, without limitation, of the Station’s operations under the TBA) which is
confidential in nature and not generally known to the public (clauses (i) and (ii) together “Buyer’s Information”). If the transactions contemplated in this Agreement are not consummated for any reason, Seller shall return to Buyer
all data, information and any other written material obtained by Seller from Buyer in connection with this transaction and any copies, summaries or extracts, thereof and shall refrain from disclosing any of Buyer’s Information to any third
party or using any of Buyer’s Information for its own benefit or that of any other person other than in connection with the filing of tax returns. 
  
 (c) Notwithstanding any other provision to the contrary herein, the provisions of this Section 11.8 shall survive the termination of this
Agreement. 
  

 -39- 

 11.9 Notices. All communications or notices required or permitted by this Agreement shall be in
writing and shall be deemed to have been given (i) on the date of personal delivery to an officer of the other party, or (ii) if sent by telecopy or facsimile machine to the number shown below, on the date of such confirmed facsimile or telecopy
transmission, or (iii) when properly deposited for delivery by commercial overnight delivery service, prepaid, or by deposit in the United States mail, certified or registered mail, postage prepaid, return receipt requested, on the date that is two
days after the date set forth in the records of such delivery service or on the return receipt and addressed as follows, unless and until either of such parties notifies the other in accordance with this Section of a change of address or change of
telecopy number: 
  

			
	If to Buyer:	  	 Nexstar Broadcasting, Inc.
 909 Lake Carolyn
Parkway
 Suite 1450
 Irving, TX 75039
 Attention: Perry Sook
 Telecopy No.: 972-373-8888

	  
 With a copy to (which shall not constitute notice to
Buyer):
  

	 	  	 Kirkland & Ellis LLP
 153 East 53rd
Street
 New York, NY 10022
 Attention: Drew Grabel,
Esq.
 Telecopy No.: 212-446-4900

		
	If to Seller:	  	 T. E. Kimbell
 President and CEO
 Jewell Television Corporation
 15851 Dallas Parkway
 Suite 600
 Addison, TX 75001

	  
 With a copy to (which shall not constitute notice to
Seller):

		
	 	  	 Brian D. Weimer, Esq.
 Skadden, Arps, Slate, Meagher
& Flom LLP
 1440 New York Avenue, NW.
 Washington, DC
20005
 Telecopy: 202-661-9042

  
 11.10 Counterparts;
Headings. This Agreement may be executed in several counterparts, each of which shall be deemed an original, but such counterparts shall together constitute but one and the same Agreement. This Agreement may be executed and delivered in
counterpart signature pages executed and delivered via facsimile transmission, and any such counterpart executed and delivered via facsimile transmission shall be deemed an original for all intents and purposes. The Table of Contents and Article and
Section headings in this Agreement are inserted for convenience of reference only and shall not constitute a part hereof. 
  
 11.11 Income Tax Position. Neither Buyer nor Seller shall take a position for income tax purposes which is inconsistent with this Agreement;
provided, however that nothing contained herein shall require Buyer or Seller to contest or litigate in any forum any proposed deficiency or adjustment by any taxing authority or agency that may challenge the manner in which the transactions under
this Agreement are treated. 
  
 11.12 Severability. If any
provision, clause or part of this Agreement or the application thereof under certain circumstances is held invalid, or unenforceable, the remainder of this 

  

 -40- 

 
Agreement, or the application of such provision, clause or part under other circumstances, shall not be affected thereby. 
  
 11.13 No Reliance. Except for (i) successors and any assignees
permitted by Section 11.7 of this Agreement and (ii) lenders (and their successors and assigns) providing financing for the consummation of the transactions contemplated by this Agreement: 
  
 (a) no third party is entitled to rely on any of the
representations, warranties or agreements of Buyer or Seller contained in this Agreement; and 
  
 (b) Buyer and Seller assume no liability to any third party because of any reliance on the representations, warranties or agreements of
Buyer and Seller contained in this Agreement. 
  
 11.14
Judicial Interpretation. Should any provision of this Agreement require judicial interpretation, the parties hereto agree that the court interpreting or construing the same shall not apply a presumption that the terms hereof shall be more
strictly construed against one party by reason of the rule of construction that a document is to be construed more strictly against the party which itself or through its agent prepared the same, it being agreed that the agents of each party have
participated in the preparation hereof. 
  
 11.15 Saturdays,
Sundays and Legal Holidays. If the time period by which any acts or payments required hereunder must be performed or paid expires on a Saturday, Sunday or legal holiday, then such time period shall be automatically extended to the close of
business on the next regularly scheduled business day. 
  
 11.16 Governing Law. This Agreement shall be construed and interpreted according to the laws of the State of Texas, without regard to the conflict of law principles thereof. 
  

 -41- 

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

  

					
	 “BUYER”

	
	 NEXSTAR BROADCASTING, INC.

		
	By:	 	/s/ Perry Sook
	 	 	 Name:
	 	 Perry Sook

	 	 	 Title:
	 	 Chief Executive Officer

	
	 “SELLER”

	
	 JEWELL TELEVISION CORPORATION

		
	By:	 	/s/ Tedford Kimbell
	 	 	 Name:
	 	 Tedford Kimbell

	 	 	 Title:
	 	 President & CEO

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