Document:

EXHIBIT 10.34

 

 

 

MARKET PARTICIPANT GUARANTEE AGREEMENT

 

This MARKET
PARTICIPANT GUARANTEE AGREEMENT (this "Guarantee") is made by the undersigned entity (together with its
permitted successors and assigns, the “Guarantor”, in favor of ELECTRIC RELIABILITY COUNCIL OF TEXAS, INC. (together
with its successors and assigns, “ERCOT”. The Guarantor and ERCOT shall be referred to herein collectively
as “Parties”.

 

Recitals

 

A.      ERCOT
has entered into a Standard Form Market Participant Agreement (hereinafter the "Agreement"as the same
may be modified through the procedure set forth in the ERCOT Protocols) with the Market Participant identified on the signature
page hereof (together with its permitted successors and permitted assigns, the "Participant”.

 

B.     Pursuant
to the Agreement and the related ERCOT Protocols (as such term is defined in the Agreement), ERCOT may extend credit to Participant
from time to time.

 

C.      It
is expressly agreed and understood by and among Participant, ERCOT and Guarantor that: (1) the execution and delivery to ERCOT
of this Guarantee is a condition precedent to ERCOT entering into the Agreement, the continuation of transactions with Participant
pursuant to the Agreement and the extension of credit to Participant pursuant to the Agreement and the related ERCOT Protocols,
(2) ERCOT has relied, and will continue to rely, upon this Guarantee and the terms and representations herein in entering into
transactions as contemplated by the Agreement and the related ERCOT Protocols, and (3) ERCOT would not enter into the Agreement,
or otherwise enter into or continue transactions with Participant, without this Guarantee.

 

D.     The
value of the consideration and benefit received and to be received by Guarantor, directly or indirectly, as a result of ERCOT entering
into the Agreement and Guarantor executing and delivering this Guarantee, is reasonably worth at least as much as the liability
and obligation of Guarantor hereunder, and the extension of credit to Participant pursuant to the Agreement has or may reasonably
be expected to benefit the Guarantor directly or indirectly.

 

E.      In
connection with the foregoing, Guarantor desires to guarantee to ERCOT the prompt and full payment of the Obligations (as defined
below) upon the terms and conditions contained in this Guarantee.

 

Agreements

 

Section 1.          In
consideration of credit heretofore or hereafter granted by ERCOT to Participant pursuant to the Agreement or the related ERCOT
Protocols, Guarantor hereby unconditionally, absolutely and, subject to the express provisions of Sections 9 and 20 hereof, irrevocably
guarantees to ERCOT, as a primary obligor and not as a surety, the punctual payment when due (subject to any grace period applicable
to the Obligations (as defined below)), whether on a scheduled date, by lapse of time, by acceleration of maturity, or otherwise
any and all of the Obligations. As used in this Guarantee, the term "Obligations" means, collectively:

 

(a) any and
all indebtedness, liabilities and sums of money now or hereafter due and owing by Participant to ERCOT pursuant to, or arising
under, the Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, including (without limitation) all scheduling,
operating, planning, reliability and settlement policies, rules, guidelines and procedures established from time to time by ERCOT;

 

 

 

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(b)
any and all interest and out-of-pocket expenses (including reasonable attorneys' fees) now or hereafter due and owing by Participant
pursuant to the Agreement, the ERCOT Protocols or any of the ERCOT market and operating guides, in each instance whether or not
allowed under any Debtor Relief Law (including all post-petition interest accruing after the commencement of any bankruptcy or
insolvency proceeding by or against Participant, whether or not allowed in such proceeding), and all other amounts that would be
part of the Obligations but for the operation of Debtor Relief Laws;

 

(c) all assessments
and other amounts required to be paid by Participant to ERCOT in order to maintain the Agreement and the ability to conduct business
with ERCOT notwithstanding the continuing right of Participant to dispute, contest or pursue rights of setoff of such assessments
and other amounts pursuant to the alternative dispute resolution provisions of the ERCOT Protocols; and

 

(d) all
reasonable costs, expenses and fees, including, without limitation, court costs and attorneys' fees, arising in connection with
the collection of any or all amounts, indebtedness, obligations and liabilities of Participant to ERCOT described in clauses (a)
through (c) of this sentence.

 

For purposes of this
Guarantee, the term "Debtor Relief Laws" shall mean Title 11 of the United States Code, as now or hereafter
in effect, or any other applicable law, domestic or foreign, as now or hereafter in effect, relating to bankruptcy, insolvency,
liquidation, receivership, reorganization, arrangement or composition, extension or adjustment of debts, or other debtor relief,
or similar laws affecting the rights of creditors.

 

Section 2.           Notwithstanding
the foregoing, the maximum amount of the Obligations for which Guarantor shall be liable personally hereunder shall not exceed the
sum of the following from time to time: (a) the then-applicable Credit Support Amount (as defined below); plus (b) interest in
respect of the Obligations (to the extent permitted by applicable state law, the Agreement, the ERCOT Protocols or any of the ERCOT
market and operating guides) for periods after the date on which written demand is made for payment hereunder by ERCOT; plus
(c) Expenses (as defined below).

 

For purposes of
this Guarantee, the term "Credit Support Amount” shall mean the amount designated as such on the
signature page to this Guarantee as the same may be increased or decreased by written agreement between the Guarantor and
ERCOT.

 

Section 3.            Guarantor
is liable for the full payment of the Obligations, subject to the express limitations provided in Section 2, as a primary obligor.
This is a continuing guarantee of payment and not of collection. Guarantor acknowledges and agrees that Guarantor may be required
to pay the Obligations in full without assistance or support from Participant or any other person. Guarantor agrees that if all
or any part of the Obligations shall not be punctually paid when due, whether on the scheduled payment date, by lapse of time,
by acceleration of maturity or otherwise, Guarantor shall pay, at or before 5:00 P.M. Central Prevailing Time on the second Business
Day (as such term is defined in the ERCOT Protocols) immediately following the issuance of written demand by ERCOT to Guarantor,
the amount due on the Obligations to ERCOT in accordance with the terms hereof. ERCOT may, but shall have no obligation to, make
such demand(s) at any time coincident with or after the time for payment of all or part of the Obligations, and such demand(s)
may be made from time to time with respect to the same or different items of the Obligations. Such demand(s) may be made, given
and received in accordance with the notice provisions hereof; provided, however, the failure to make, give or receive any such
demand (or any failure of any such demand to be made in accordance with the notice provisions hereof) shall not relieve, limit
or discharge Guarantor in any respect of its obligations under this Guarantee. Guarantor hereby waives any condition or requirement
with respect to any such demand under this Guarantee, and Guarantor agrees that Guarantor's obligations hereunder are absolute
and immediate without requirement of presentment, protest, notice of protest, notice of nonpayment, notice of intent to accelerate,
notice of acceleration or any other notice whatsoever (all of which are expressly waived), except as may expressly be required
hereunder.

 

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Section 4.           If
Guarantor is or becomes liable for any indebtedness or obligations owing by Participant to ERCOT other than through this Guarantee,
the liability of Guarantor for such other indebtedness shall not in any manner be impaired or affected hereby or the limits contained
herein, and the rights of ERCOT hereunder shall be cumulative of any and all other rights that ERCOT may have against Guarantor.
If Participant is or becomes indebted to ERCOT for any indebtedness other than the Obligations, any payment received or recovery
realized upon any such other indebtedness of Participant to ERCOT may be applied, in ERCOT's sole discretion, to indebtedness of
Participant to ERCOT other than the Obligations, except to the extent paid by the Guarantor specifically in respect of the Obligations
or as otherwise required by Law or written agreement of ERCOT to be applied to the Obligations. This Guarantee is independent of,
and shall not be limited by, any other guaranty or collateral posted by or on behalf of Guarantor, in each instance whether now
existing or hereafter given. Further, Guarantor's liability under this Guarantee is in addition to any and all other liability
Guarantor may have in any other capacity, including, without limitation, its capacity as a general partner or managing member of
Participant.

 

Section 5.           Except
as otherwise set forth in this Guarantee, Guarantor hereby expressly waives:

 

(a)
any right to terminate this Guarantee with respect to the Obligations except as set forth in Section 9 below;

 

(b) any right
to receive notice of any renewal, extension, modification, supplement or other change in the terms of the Agreement or the ERCOT
Protocols;

 

(c) any right
relating to the timing, manner or conduct of ERCOT's enforcement of rights against Participant's assets or any collateral from
time to time pledged by, or on behalf of, Participant to secure the Obligations;

 

(d) if Guarantor
and Participant (or any other person) have each pledged assets to secure the Obligations, any right to require ERCOT to proceed
first against collateral pledged by Participant (or any other person) before proceeding against collateral pledged by Guarantor;

 

(e) any claim
for setoff or any defense which Participant could assert on the Obligations, including, without limitation, force majeure, breach
of contract, breach of warranty, and fraud;

 

(f) promptness,
diligence, notice of any default, notice of nonpayment or nonperformance, notice of acceleration or intent to accelerate, acceptance
or notice of acceptance of this Guarantee, presentment, protest, notice of protest, notice of dishonor, notice of the incurring
by Participant of additional indebtedness, notice of any suit or other action by ERCOT against Participant or any other person,
any notice to any person liable for the obligation which is the subject of the suit or action, and all other notices and demands
with respect to the Obligations and this Guarantee;

 

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(g) any
and all rights to which it may be entitled by virtue of the laws of the State of Texas governing suretyship and guarantees, including,
without limitation, any rights under Rule 31, Texas Rules of Civil Procedure, Section 17.001 of the Texas Civil Practice and Remedies
Code and Chapter 34 of the Texas Business and Commerce Code, as any or all of the same may be amended or construed from time to
time, or the common law of the State of Texas at all relevant times;

 

(h) any defense
due to the Guarantor's failure to review the activities of Participant or any changes in the Agreement, the ERCOT Protocols or
the related ERCOT market and operating guides (it being acknowledged and agreed that Guarantor bears all responsibility for monitoring
the activities of the Participant in the ERCOT markets); and

 

(i) any and
all other demands and notices to Guarantor or Participant, and any and all other formalities of any kind, the omission of or delay
in performance of which might but for the provisions of this Section constitute legal or equitable grounds for relieving or discharging
Guarantor in whole or in part from its irrevocable, absolute and continuing obligations hereunder.

 

In furtherance
of the foregoing, Guarantor agrees that (i) it is not necessary for ERCOT, in order to enforce Guarantor's payment hereunder, first
to proceed against Participant or resort to any collateral, security or other guarantors or obligors, if any, or pursue any other
remedy available to ERCOT with respect to the Obligations, and (ii) the Agreement, the ERCOT Protocols, and any collateral, security
or obligations of any other guarantors or obligors, if any, may be renewed, extended, amended, modified, supplemented, sold, released,
surrendered, exchanged, settled, compromised, waived, subordinated or modified, in each case without consideration and on any terms
or conditions, without notice to, or further assent from, the Guarantor.

 

Section 6.           The obligations of Guarantor hereunder are absolute and unconditional irrespective of:

 

(a)
the invalidity or unenforceability of the Agreement;

 

(b) the bankruptcy
or insolvency of, or the effect of application of any Debtor Relief Laws to, the Participant;

 

(c) any claim
for setoff or any defense which Participant could assert on the Obligations, including, without limitation, force majeure, breach
of contract, breach of warranty, and fraud;

 

(d) any substitution,
release or exchange of any other guaranty of or security for any of the Obligations;

 

(e) the existence
or terms of any other agreements between Guarantor and any party, including Participant; and

 

(f) to
the fullest extent permitted by applicable law, irrespective of any other circumstances whatsoever that might otherwise constitute
a legal or equitable discharge or defense of a guarantor, it being the intent of this Guarantee that the obligations of Guarantor
hereunder shall be absolute and unconditional under any and all circumstances (except as otherwise set forth in this Guarantee).

 

 

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Section 7.          All
rights of Guarantor to proceed against Participant in respect of payment hereunder, by subrogation or otherwise

 

(a) are hereby
subordinated and deferred to and until the full and final payment and discharge of the Obligations; and

 

(b) Guarantor
may not exercise any rights it may acquire by way of subrogation under this Guarantee, by payment made hereunder or otherwise,
until all of the Obligations then due and payable have been fully and finally paid. Subject to the subordination herein provided,
with respect to any payments made by Guarantor to ERCOT under this Guarantee, Guarantor may succeed to any rights of Participant
under the Agreement and the ERCOT Protocols. Guarantor does not waive or release any rights of subrogation, reimbursement or contribution
which Guarantor may have after full and final payment of the then due and unpaid Obligations.

 

Section 8.          All
remedies, rights, powers and privileges granted to ERCOT pursuant to this Guarantee are cumulative. The exercise of any or all
such rights by ERCOT shall not reduce, limit, impair, discharge, terminate, or otherwise affect the liability of Guarantor. No
failure or delay by ERCOT in exercising any remedy, right, power or privilege pursuant to this Guarantee shall operate as a waiver,
and any such remedy, right, power or privilege may be exercised by ERCOT at any time. No partial exercise of any such rights shall
preclude further exercise or the exercise of any other remedy, right, power or privilege. No notice or demand by ERCOT upon Guarantor
or any other guarantor of the Obligations shall preclude ERCOT from taking further action without notice or demand.

 

Section 9.          The
term of this Guarantee shall be for a period of one (1) year, commencing on the date set forth below and expiring one (1) year later.

 

(a)     Notwithstanding
the foregoing, this Guarantee shall be automatically renewed and extended without amendment for one (1) year from the expiration
date hereof, or one (1) year from any future expiration date, unless at least sixty (60) days prior to the expiration date the
Guarantor sends written notice to ERCOT stating that Guarantor elects not to renew or extend this Guarantee;

 

(b)     Notwithstanding
the foregoing, this Guarantee may be terminated by Guarantor at any time by:

 

     (i)     a
written notification of termination given by Guarantor to ERCOT, or

 

     (ii)     posting,
or causing to be posted, in respect of the Obligations of Participant, a letter of credit in an amount and form determined by ERCOT
in accordance with the ERCOT Protocols (the “Substitute Collateral").

 

Termination pursuant to Section 9(b)(i) shall be effective
thirty (30) days after the receipt by ERCOT of such written notification of termination. Termination pursuant to Section 9(b)(ii)
shall be effective upon ERCOT's confirmation of receipt of the Substitute Collateral;

 

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(c)     If
Guarantor elects not to renew or extend this Guarantee in accordance with Section 9(a) or Guarantor terminates this Guarantee in
accordance with Section 9(b), Guarantor shall remain liable for any Obligations hereunder arising before the effective date of
nonrenewal, non-extension, or termination. Guarantor expressly agrees and acknowledges that this Guarantee applies to all Obligations
arising or committed to prior to the effective date of the termination of this Guarantee, whether by nonrenewal, non extension,
or termination; and

 

(d)     Notwithstanding
any other provision in this Guarantee, this Guarantee shall continue in effect or shall automatically be reinstated if at any time
payment, or any part thereof, made by Participant or Guarantor to ERCOT during the term of this Guarantee with respect to any of
the Obligations is rescinded or set aside for any reason, or must otherwise be repaid by ERCOT as a result of application of any
Debtor Relief Laws or otherwise

 

Section 10.        Guarantor hereby
represents and warrants to ERCOT, which representations shall be deemed repeated continually during the term hereof, that:

 

(a)     this
Guarantee is duly authorized and valid, and is binding upon and enforceable against Guarantor (subject, in each instance, to the
effect of applicable Debtor Relief Laws) and the person executing this Guarantee on behalf of the Guarantor has full power and
authority to bind the Guarantor to this Guarantee;

 

(b)     the
execution and delivery of, and the performance by Guarantor of its obligations under this Guarantee do not contravene or conflict
with (i) any provision of the Guarantor's organizational, constituent or governing documents, or (ii) any law, regulation, decree,
order, judgment, resolution or any contractual restriction binding on Guarantor or its assets that could affect, in a materially
adverse manner, the ability of the Guarantor to perform any of its obligations hereunder;

 

(c)     Guarantor
(i) is duly organized, validly existing, and in good standing under the laws of the state of its organization and (ii) has full
power and authority to enter into, and to perform its obligations under, this Guarantee;

 

(d)     there
is no litigation pending or, to the knowledge of Guarantor, threatened, before or by any tribunal against or affecting Guarantor
which seeks to limit, prevent, enjoin or delay the Guarantor's performance of its obligations under this Guarantee, except as may
be disclosed by the Guarantor to ERCOT or in the Guarantor's filing with the Securities and Exchange Commission;

 

(e)     no
bankruptcy or insolvency proceedings are pending or, to the best of Guarantor's knowledge, contemplated by or against Guarantor
under any Debtor Relief Laws;

 

(f)     NEITHER
ERCOT NOR ANY AFFILIATE, EMPLOYEE, AGENT, OR REPRESENTATIVE OF ERCOT HAS MADE ANY REPRESENTATION, WARRANTY OR STATEMENT TO GUARANTOR
IN ORDER TO INDUCE GUARANTOR TO EXECUTE THIS GUARANTEE, AND GUARANTOR HEREBY EXPRESSLY WAIVES ANY CLAIM OF FRAUDULENT INDUCEMENT
TO EXECUTE THIS GUARANTEE AND FURTHER DISCLAIMS ANY RELIANCE ON STATEMENTS OR REPRESENTATIONS OF ERCOT OR ANY AFFILIATE,

 

 

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EMPLOYEE, AGENT, OR
REPRESENTATIVE OF ERCOT IN WAIVING SUCH A CLAIM;

 

(g)     any
and all balance sheets, net worth statements, and other financial information with respect to Guarantor which have heretofore been
given to ERCOT by Guarantor fairly and accurately present the financial condition of Guarantor as of the respective dates thereof;

 

(h)     to
the best of its knowledge, Guarantor is not in default under any agreements or contracts which may adversely affect Guarantor's
ability to fulfill its obligations under this Guarantee;

 

(i)     any
indebtedness of Participant to Guarantor now or hereafter existing is hereby subordinated to the payment of the Obligations. As
long as Participant is not in default on payment of the Obligations, Participant may make payments to Guarantor on any subordinated
indebtedness in the ordinary course of business. After default by Participant on payment of the Obligations, any payments by
Participant to Guarantor on account of such subordinated indebtedness shall be collected and received by Guarantor in trust for
ERCOT and shall be paid over to ERCOT on account of the Obligations without impairing or releasing the obligations of Guarantor
hereunder; and

 

(j)     Guarantor
has, independently and without reliance upon ERCOT, and based upon such documents and information as Guarantor has deemed appropriate,
made its own analysis and decision to enter into this Guarantee.

 

Section 11.         Guarantor
hereby further covenants and agrees to ERCOT that:

 

(a)     Guarantor
will keep itself fully apprised of Participant's financial and business condition, and Guarantor shall be responsible, to the extent
deemed necessary or advisable by Guarantor, for obtaining for itself information regarding Participant, the Agreement, the ERCOT
Protocols and the ERCOT market and operating guides, and Guarantor acknowledges and agrees that ERCOT shall have no duty at any
time to notify Guarantor of any information which ERCOT may have or acquire concerning Participant or to investigate or inform
Guarantor of the financial or business condition or affairs of Participant or any change therein;

 

(b)     Guarantor
will provide ERCOT with any and all financial information required to be submitted under ERCOT's credit policy or the ERCOT Protocols
and other financial information reasonably requested by ERCOT concerning or relating to Guarantor's financial condition within
twenty (20) days after such written request by ERCOT. Other financial information may include, at a minimum: a balance sheet; an
income and expense statement; a statement showing contingent liabilities; detailed cash flow statements; and any supporting schedules
or documentation which ERCOT may require and is acceptable to ERCOT. The financial information provided shall be in accordance
with generally accepted accounting principles; and

 

(c)     Guarantor's
representations, warranties, covenants, waivers and agreements set forth in this Guarantee are a material inducement to ERCOT to
enter into the Agreement and extend credit to Participant and shall survive the execution hereof and any bankruptcy, foreclosure,
transfer of security or other event affecting Participant, Guarantor, any other person, or any security for all or any part of
the Obligations.

 

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Section 12.        This
Guarantee is executed and delivered as an incident to a transaction(s) negotiated and consummated in Travis County, Texas, and
shall be governed by and construed in accordance with the Laws of the State of Texas, other than the conflicts of laws principles
thereof. Guarantor, for itself and its successors and assigns, hereby irrevocably (i) submits to the non exclusive jurisdiction
of the state and federal courts in the State of Texas (ii) waives, to the fullest extent permitted by Law, any objection that
may now or in the future have as to the venue of any action, proceeding or litigation arising out of or in connection with this
Guarantee brought in the District Court of Travis County, Texas, or in the United States District Court for the Western District
of Texas, Austin Division, and (iii) agrees that any legal action or proceeding against Guarantor arising out of or in connection
with this Guarantee may be brought in any one of the foregoing courts. Guarantor hereby agrees that service of process upon Guarantor
may be made by certified or registered mail, return receipt requested, at its address specified herein. Nothing herein shall affect
the right of ERCOT to serve process in any other manner permitted by law or shall limit the right of ERCOT to bring any action
or proceeding against Guarantor or with respect to any of Guarantor's property in courts in other jurisdictions. Any action or
proceeding by Guarantor against ERCOT shall be brought only in a court located in Travis County, Texas. The scope of each of the
foregoing waivers is intended to be all encompassing of any and all disputes that may be filed in any court and that relate to
the subject matter of this transaction, including, without limitation, contract claims, tort claims, breach of duty claims, and
all other common law and statutory claims. Guarantor acknowledges that these waivers are a material inducement to ERCOT's agreement
to enter into the Agreement, that ERCOT has already relied on these waivers and will continue to rely on each of these waivers
in related future dealings. The waivers in Section 12 are irrevocable on the part of both ERCOT and Guarantor and may not be modified
without the agreement of both ERCOT and Guarantor in writing as required pursuant to Section 23 below; these waivers apply to
any future renewals, extensions, amendments, modifications, replacements or renewals of this Guarantee.

 

Section 13.         If
any provision or any part of any provision of this Guarantee or the application thereof to any person or circumstance shall, for
any reason and to any extent, be judicially declared to be invalid or unenforceable, then neither the remaining provisions of this
Guarantee nor the application of such provision to any other person or circumstance shall be affected thereby, and the remaining
provisions of this Guarantee, or the applicability of such provision to other persons or circumstances, as the case may be, rather
shall remain in effect and be enforceable to the maximum extent permitted by applicable law.

 

Section 14.         From
time to time, at the reasonable request of ERCOT, Guarantor will (a) promptly correct any ministerial or administrative defect,
error or omission which may be discovered in the contents of this Guarantee; (b) execute, acknowledge and deliver (or cause to
be executed, acknowledged and delivered) such further documents and instruments and perform such further acts and provide such
further assurances as may be necessary, desirable, or proper, in ERCOT's opinion, (i) to carry out more effectively the purposes
of this Guarantee and the transactions contemplated hereunder, or (ii) to confirm the continuation of the rights created under
this Guarantee for the benefit of ERCOT, including reaffirmation of the obligations hereunder from time to time upon the renewal
hereof and the applicability of any changes in the Credit Support Amount.

 

Section
15.          Time is of the essence in this Guarantee with respect to all of Guarantor's obligations hereunder.

 

Section
16.         The recitals and introductory paragraphs hereof are a part hereof, form a basis for this
Guarantee and shall be considered prima facie evidence of the facts and documents referred to therein.

 

 

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Section 17.         The
Article, Section and Subsection entitlements hereof are inserted for convenience of reference only and shall in no way alter, modify,
define, limit, amplify or be used in construing the text, scope or intent of such Articles, Sections or Subsections or any provisions
hereof. Furthermore, words used in the singular shall include the plural and vice-versa, and any gender shall be deemed to include
the other. Further, each party hereby acknowledges that such party and its counsel have reviewed and considered the effect of this
Guarantee. As such, the terms of this Guarantee shall be fairly construed and the usual rule of construction, to the effect that
any ambiguities herein should be resolved against the drafting party, shall not be employed in the interpretation of this Guarantee
or any amendments, modifications, or exhibits.

 

Section 18.         All
sums payable under this Guarantee shall be by wire transfer of immediately available funds, without offset, in lawful money of
the United States of America, which shall at the ti me of payment be legal tender for the payment of public and private debts.
A II payments shall be remitted to ERCOT's bank account as designated by written notice to Guarantor, whether through demand for
payment or otherwise.

 

Section 19.         EACH
OF GUARANTOR AND ERCOT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY KNOWINGLY, INTENTIONALLY, IRREVOCABLY, UNCONDITIONALLY
AND VOLUNTARILY, WITH, AND UPON THE ADVICE OF COMPETENT COUNSEL, WAIVES, RELINQUISHES AND FOREVER FORGOES ALL RIGHT TO A TRIAL
BY JURY IN ANY ACTION, SUIT, PROCEEDING, OR COUNTERCLAIM BASED UPON, ARISING OUT OF, OR IN ANY WAY RELATING TO THIS GUARANTEE OR
ANY CONDUCT, ACT, FAILURE TO ACT OR OMISSION OF OR BY ERCOT OR GUARANTOR, OR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS, PARNTERS,
MEMBERS, EMPLOYEES, AGENTS OR ATTORNEYS, OR ANY OTHER PERSONS AFFILIATED WITH ERCOT OR GUARANTOR, IN EACH OF THE FOREGOING CASES,
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, OR IN THE ENFORCEMENT OF ANY OF THE TERMS OR PROVISIONS OF THIS GUARANTEE. IT
IS AGREED AND UNDERSTOOD BY EACH OF GUARANTOR AND ERCOT THAT TillS WAIVER CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST
ALL PARTIES TO SUCH ACTIONS OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO THIS GUARANTEE. THIS WAIVER
IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR AND ERCOT, AND EACH OF GUARANTOR AND ERCOT HEREBY REPRESENTS THAT NO
REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY
OR NULLIFY ITS EFFECT. EACH OF GUARANTOR AND ERCOT FURTHER REPRESENTS AND WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING
OF THIS GUARANTEE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED
BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

Section 20.         Guarantor
agrees to pay to ERCOT, upon demand, all reasonable out-of-pocket costs and expenses, including, without limitation, reasonable
third-party attorneys' fees, that may be incurred by ERCOT in attempting to cause satisfaction of Guarantor's liability under
this Guarantee (“Expenses”) .

 

Section 21.         All
notices or other communications hereunder shall be made by hand delivery, by next day delivery service or by certified mail, return
receipt requested (receipt effective upon scheduled weekday delivery day) or facsimile (receipt effective upon receipt of evidence,
including ( facsimile evidence, that facsimile was received) to the addresses for ERCOT and Guarantor set forth on the signature
page of this Guarantee. For purposes of giving any required notices hereunder, the addresses, telephone numbers, and facsimile
numbers of the Parties are as set forth on the signature page of this Guarantee.

 

 

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Section
22.        This Guarantee shall bind the successors and assigns of Guarantor and
shall inure to the benefit of ERCOT, its successors and assigns pursuant to the terms of the Agreement.

 

(a)     ERCOT
shall be permitted to assign its rights and delegate its obligations under this Guarantee, in whole or in part, without the consent
of Guarantor or Participant.

 

(b)     The
Guarantor may not assign its rights nor delegate its obligations under this Guarantee, in whole or in part, without the prior written
consent of ERCOT. Any purported assignment or delegation absent ERCOT'S written consent is void.

 

(c)     Subject
to the written consent of ERCOT in its sole discretion, Guarantor may assign and delegate all of the Guarantor's rights and
obligations hereunder to a partnership, corporation, trust or other entity that succeeds to all or substantially all of the
Guarantor's assets and business and that assumes such obligations by contract, operation of law or otherwise. Upon
Guarantor's receipt of ERCOT's written consent and the execution by assignee of any and all documents required by ERCOT, the
Guarantor shall be relieved of and fully discharged from all obligations hereunder, whether such obligations arose before or
after such delegation and assumption. If ERCOT does not consent to the assignment (which, for the avoidance of doubt, shall
not constitute a default under this Guarantee), ERCOT shall provide written notice to Guarantor that it does not consent to
the assignment and upon receipt of such written notice, Guarantor shall be permitted to terminate the Guarantee in accordance
with Section 9(b).

 

Section 23.         No
modification of this Guarantee or waiver shall be valid unless in writing and signed by ERCOT and Guarantor and then only to the
extent specifically set forth in such writing.

 

Section 24.         This
Guarantee supersedes and terminates any prior guarantee to ERCOT by Guarantor on behalf of Participant.

 

 

 

 

 

<signature page follows>

 

 

 

    	10

    	 

    

 

 

 

	Participant: 	Twin Cities Power, LLC
	 	[Name of Participant]
	 	a Minnesota limited liability company
	 	[Type of entity/jurisdiction of organization]

 

Effective Date of Standard Form Market Participant Agreement: December
3, 2012.

 

 

"CREDIT SUPPORT AMOUNT" is $5,000,000

 

 

 

 

EXECUTED by GUARANTOR this 3rd day of December, 2012:

 

	Twin Cities Power Holdings, LLC 	Address:	16233 Kenyon Avenue
	[Name of Guarantor] 	 	Suite 210
	 	 	Lakeville, MN 55044
	a Minnesota limited liability company 	Telephone:	952-241-3103
	[Type of entity/jurisdiction of organization] 	Facsimile:	952-898-3571

 

 

	By: 	/s/ Timothy Krieger	 
	Name:	Timothy Krieger	 
	Title:	CEO	 

 

 

 

 

ACCEPTED by ERCOT this 17th day of December,
2012.

	 	 	 
	ELECTRIC RELIABILITY COUNCIL of  TEXAS, INC.	Address:  	7620 Metro Center Drive
	 	 	Austin, Texas 78744
	 	 	[For notice and payment]
	 	Telephone:	512.225.7014
	 	Facsimile:	512.225.7020

 

 

	By: 	/s/ Vanessa Spells	 
	Name:	Vanessa Spells	 
	Title:	Credit Manager	 
	 	 	 
	 	 	 

 

    	11EXHIBIT 10.35

  

LEASE AGREEMENT

 

THIS LEASE AGREEMENT,
(the "Agreement") entered into as of this 5th day of March, 2013, by and between the undersigned Landlord and Tenant:

 

Brandon J. and Heather N. Day
Revocable Trust

5022 East 101st Street
South

Tulsa, Oklahoma 74137

 

A Revocable Trust (hereinafter
referred to as "Landlord")

 

Cygnus Energy Futures,
LLC

5022 East 101st Street
South

Tulsa, Oklahoma 74137

 

Attn: Brandon J, Day, Vice President

 

A Minnesota Limited
Liability Company, (hereinafter referred to as "Tenant")

 

The Landlord and Tenant
are jointly referred to herein as Parties (“Parties”).

 

W I T N E S S E T H :

 

1.            Premises:
Landlord, in consideration of the agreements herein contained, leases to Tenant and Tenant leases from Landlord that real
estate situated at 5022 East 111th Street South, Tulsa, Oklahoma 74137, together with all buildings, improvements and
facilities located thereon and all fixtures of every kind and nature whatsoever which are owned by Landlord and used or procured
for use in connection with the operation and maintenance of such premises, improvements and facilities, all of which are hereinafter
collectively referred to as "Demised Premises."

 

2.            Gross
Lease:

 

A.            The
Parties hereto intend that this Lease shall be deemed and construed to be a so-called "gross lease" and Landlord shall
receive all rent due hereunder from Tenant, inclusive of any charges, taxes, assessments, expenses or deductions of any and every
kind, character or nature whatsoever and without any duty of making any present or future alterations, improvements or repairs
of any kind in or about the Demised Premises.

 

    	1

    	 

    

 

B. Tenant
assumes full responsibility for the conditions, operation, maintenance and management of the Demised Premises and Landlord shall
have no liability in respect thereto or for damage to the property of Tenant or on account of the condition, operation, maintenance
and management of the Demised Premises.

 

3.            Term:
The term of this Lease shall be thirty-six (36) months commencing the 1st day of March, 2013, (the "Commencement
Date"), and terminating on the 28th day of February, 2016, (the "Term"). If Tenant occupies the Demised
Premises before the commencement date, the Tenant shall pay to the Landlord, on the commencement date for such period from the
date of occupancy to the commencement date, in an amount equal to that proportional basic rent (as hereinafter defined) for one
calendar year, which the number of days in such period bears to 365.

 

4.            Rent:
Tenant shall pay to Landlord the following annual gross rent without right to set off or deduction, in the amount of $45,000.00
(the “Annual Rent”) during the Term of this Lease, which rents shall be payable in equal monthly installments of $3,750.00
on or before the first day of each consecutive month during the lease year.

 

5.            Use:

 

A.            Tenant
may use the Demised Premises for any lawful purpose but shall not commit or permit on the Demised Premises any nuisance, waste
or other act against public policy or which violates any law or governmental regulation. If, during the term of this Lease, Tenant
is prohibited by governmental authority from using the Demised Premises, for any purpose which is a lawful purpose on the date
of the commencement of this Lease, then Tenant may terminate this Lease, effective as of the date that the prohibition of Tenant's
use becomes effective.

 

B.            Neither
the Landlord nor the Tenant shall create or permit to accrue any liens, adverse claims or other encumbrances against the Demised
Premises.

 

C.            The
Tenant shall not damage or cause waste to the Demised Premises and shall, at its expense, maintain the Demised Premises in a safe,
sanitary, functional and orderly condition at all times, free of refuse and objectionable noises, odors or nuisances.

 

    	2

    	 

    

 

6.            Alterations:
Subject to written approval of Landlord, which approval shall not be unreasonably withheld, conditioned or delayed, Tenant
shall have the right to make alterations, improvements or additions to the Demised Premises for the purpose of conducting its
business, provided such alterations, improvements or additions, are made in accordance with the required local ordinances and
public authorities having jurisdiction thereof, that the value of the Demised Premises be not diminished thereby, that the structure
not be weakened or impaired, that the same be performed in a good workmanlike manner, that the exterior appearance of the buildings
not be materially changed, that Tenant shall bear the cost of the same and shall not permit mechanic's liens to be placed against
the Demised Premises. Any and all such alterations, physical additions or improvements made to the Demised Premises shall, at
the option of Landlord, become at once its property and shall be surrendered to Landlord upon the termination of this Lease, by
lapse of time or otherwise, unless Landlord shall by prior written notice to Tenant at least ninety (90) days prior to the termination
date of this Lease, demand of Tenant the removal of any such alterations, physical additions or improvements, in which circumstances,
such removal shall be promptly made at Tenant's expense, and Tenant shall repair all damage caused thereby. This provision, however,
shall not apply to fixtures, equipment or goods installed by Tenant, all of which shall be and remain the property of Tenant and
may at any time be removed by it, but any damage to the Demised Premises caused by such removal of fixtures, equipment or goods
installed by Tenant shall be repaired at Tenant's expense.

 

7.            Operating
Expenses: The Landlord shall pay, when and as the same fall due, all operating expenses attributable to the Demised Premises
for each year during the term of this Lease. "Operating Expense" shall mean insurance premiums, electricity, gas, telephone,
heat, hot and cold running water, sewer, pest and rodent control, trash disposal and snow removal expenses and all expenses relating
to maintaining and repairing the Demised Premises. The Landlord and Tenant’s agree that each party shall be responsible
for up to $20,000.00 of any issue related to capital items (by way of example and not limitation, replacement of the roof, heating
plant and other structural components, if necessary.

 

    	3

    	 

    

 

8.            Repairs
and Maintenance: Except for improvements or repairs of a capital nature, Tenant shall maintain all parts of the Demised
Premises during the term of this Lease in good and tenantable repair, reasonable wear and tear excepted, and shall promptly make
all necessary repairs, interior or exterior, structural or otherwise, ordinary as well as extraordinary, to all parts of the Demised
Premises, and shall comply with all governmental regulations, laws or ordinances with respect thereto; provided, however, that
Tenant's obligation, pursuant to this paragraph, shall not apply in the event of damage or destruction by fire or other insurable
casualty. Landlord shall have the right, upon prior reasonable notice, and at any time in the case of emergency, to inspect the
Demised Premises during normal business hours, with regard to matters referred to in this paragraph, and for all other purposes.
Notwithstanding Tenant's duty to keep the roof of the building on the Demised Premises in good repair during the term of this
Lease, Tenant shall have no obligation to replace said roof at the end of the term.

 

9.            Indemnity:
Landlord shall not be liable for any damage, loss and expense sustained by Tenant, its agents, servants, employees, guests,
assigns, subtenants, visitors, licensees or any other person or persons, firms or corporations, due to the Demised Premises, or
any portion thereof, being or becoming out of repair or defective or due to the happening of any accident or any act or neglect
of Tenant or other person, persons, firms or corporations. Tenant shall indemnify and forever hold harmless Landlord from any
liability, damage, loss or expense relating to said matters and, at Tenant's expense, shall defend Landlord against each and every
claim, demand or cause of action, that may be made against Landlord by reason of such defects, accidents or acts of negligence,
and also against each and every claim, demand or cause of action which may be made or instituted against Landlord, as owner of
said Demised Premises under the laws or ordinances of any governmental agency, on account of any such defects, accidents or acts
of negligence.

 

10.           Tenant
Insurance:

 

A.           The Tenant shall maintain
fire and extended coverage insurance with a carrier reasonably acceptable to the Landlord, which insures the improvements located
on the Demised Premises, and all trade fixtures and personal property located therein, in an amount at least equal to their reasonable
replacement cost. Said policy shall name the Tenant, Landlord and Landlord's Mortgagee, if any, as their interest appears.

 

B.           The Tenant shall also
maintain general public liability insurance with a carrier acceptable to the Landlord, insuring the Parties against claims for
personal injuries, wrongful death and property damage for not less than $1,000,000.00 for injuries to a single person, for not
less than $1,000,000.00 for any one accident and for not less than $250,000.00 for property damage. The Landlord, Tenant and any
Mortgagee holding a mortgage on the premises shall be named on such policy as their interest appears.

 

    	4

    	 

    

 

 C.           Upon request, duplicate originals or certificates of all insurance policies shall be delivered to the Landlord.

 

11.           Landlord’s Insurance:

A.           During the term of this Lease or any renewal or extension thereof, Landlord shall provide in amounts and coverage not less
than the replacement cost of the Demised Premises so insured with or without deductibles, insurance coverage in the form of an
“all risk” type policy against loss or damage by fire, flood, windstorm, hail, explosion, damage from aircraft and
vehicles and smoke damage, and such other risks as are from time to time included in a standard extended coverage endorsement,
insuring the Demised Premises and improvements (exclusive of Tenant’s merchandise, trade fixtures, furnishings, equipment,
signs and all other items of personal property of Tenant).

 

12.           Damage to Demised Premises:

 

A.           If,
during the term of this Lease, the Demised Premises are totally or partially destroyed by fire or other casualty, so as to render
the Demised Premises wholly unfit for occupancy or make it impossible to conduct the business of Tenant thereon, and if it reasonably
appears that the Demised Premises cannot be repaired and restored within one hundred twenty (120) days from the date of the damage,
then either Tenant or Landlord shall have the right to terminate this Lease from the date of such damage or destruction, by giving
the other party written notice. Upon the giving of such notice, Tenant shall immediately surrender the Demised Premises and all
interest therein, including rights to insurance proceeds as provided in Paragraph 11 hereof, to Landlord, and in case of any such
termination, Landlord may re-enter and repossess the Demised Premises discharged of this Lease and may dispossess all Parties then
in possession thereof. If the Demised Premises cannot be repaired and restored in one hundred twenty (120) days from the date of
such damage and neither Tenant nor Landlord elect to terminate the Lease, then, and upon the commencement of the repair or restoration,
the Lease may not be terminated but rent may be abated according to the nature and extent of the damage. Full rent shall commence
on the date that the repair and restoration is completed. If it reasonably appears that the Demised Premises may be repaired and
restored within one hundred twenty (120) days from the date of damage or destruction, then Landlord, at its own sole cost and expense,
shall repair and restore the Demised Premises with all reasonable speed; provided, however, that in no event shall Landlord be
required to repair and restore the Demised Premises at a cost greater than the net proceeds of moneys received from an insurance
policy or insurance policies covering such loss or damages, nor shall Landlord be required to commence repair and restoration until
such fact is determined. During the period of repair, a just portion of the rent reserved under Paragraph 4 hereof, but not Tenant's
obligation to make payments or performance under any other paragraphs of this Lease, shall be abated according to the nature and
extent of damages and Tenant’s ability to occupy a portion of the Demised Premises. Full rent shall recommence on the date
that repairs are completed.

 

    	5

    	 

    

 

B.           If
the damage or destruction does not render the Demised Premises unfit for occupancy, then Landlord shall repair and restore the
Demised Premises as soon as practicable and, in that case, Tenant shall pay full rent during the repair period. All repairs resulting
from such fire or other casualty shall be paid by Landlord out of any insurance proceeds received, but if insurance proceeds are
insufficient to repair or restore the Demised Premises to their previous condition, Tenant shall pay any additional amounts required
to make such repairs and restoration.

 

C.           In
any event, all improvements, betterment, fixtures or equipment placed by Tenant on the Demised Premises, for which insurance is
not provided on behalf of Landlord by Tenant, shall be repaired by Tenant at its own expense and not at the expense of Landlord.

 

13.           Condemnation:

 

A.           If
the whole of the Demised Premises are taken by any public authority, under the power of eminent domain or by private purchase in
lieu thereof, then this Lease shall automatically terminate upon the date possession is surrendered and rent shall be paid and
other conditions performed up to the day. If any part of the Demised Premises shall be so taken as to render the remainder thereof
unusable for the purpose which the Demised Premises were leased, then Landlord and Tenant shall each have the right to terminate
this Lease on ninety (90) days notice to the other given within ninety (90) days after the date of such taking. In the event that
this Lease shall terminate or be terminated, rent shall be paid and other conditions performed up to the date possession is surrendered.

 

B.           If
any part of the Demised Premises shall be so taken such that it does not render the remainder unusable for the business of Tenant,
Landlord shall, at its own cost and expense, restore the remaining portion of the Demised Premises, to the extent necessary to
render it reasonably suitable, for the purposes for which it was leased, all to be done without any adjustment in rent to be paid
or other conditions to be performed by Tenant; provided, however, Landlord shall not be required to perform such work and restoration,
if the cost thereof shall exceed the proceeds of its condemnation award and shall not be required to commence work or restoration,
until such fact is determined.

 

    	6

    	 

    

 

C.           All
compensation awarded or paid upon such total or partial taking of the Demised Premises shall belong to and be the property of
Landlord, without any participation by Tenant, whether such damages shall be awarded as compensation for diminution in value to
the leasehold or to the fee of the Demised Premises herein leased. Nothing contained herein shall be construed to preclude Tenant
from prosecuting any claim directly against the condemning authority in such proceedings for loss of business, damage to or cost
of removal or from the value of stock, trade, fixtures, furniture and other personal property belonging to Tenant; provided, however,
that no such claim shall diminish or otherwise adversely affect Landlord’s award.

 

14.           Default:

 

A.           In the
event Tenant does or shall neglect or fail to pay any sum required to be paid hereunder by Tenant when due and such failure shall
continue for five (5) days following written notice from Landlord to Tenant or to keep, observe and perform any of the other covenants
and agreements contained in this Lease, which on its part are to be performed and such failure shall continue for thirty (30) days
after written notice from Landlord to Tenant, provided that Tenant shall not be deemed in default if such default cannot reasonably
be cured within such thirty (30) day period and Tenant commences to cure within thirty (30) days and thereafter diligently prosecutes
same to completion, or if its leasehold interest shall be taken on execution or other process of law, or if the Tenant shall be
declared a bankruptcy or insolvent according to law, or if any assignment of its property shall be made for the benefit of creditors,
or if a receiver shall be appointed to take charge of Tenant’s property, or if Tenant shall abandon the Demised Premises
during the term of this Lease without continuing to perform its obligations, then, and in any of such cases, Landlord may immediately
or at any time thereafter, without any further notice or demand, enter into and upon the Demised Premises, or any part thereof,
in the name of the whole, and repossess the same as of its former estate, without such re-entry working a forfeiture of the rents
to be paid and the covenants to be performed by the Tenant for the full term of this Lease and may, at Landlord's election, lease
or sublet the Demised Premises, or any part hereof, on such terms and conditions and for such rent and for such time as Landlord
may elect, and after crediting the rent actually collected by Landlord from such reletting on the rental stipulated to be paid
under this Lease by Tenant from time-to-time, collect from Tenant any balance remaining due on the rent reserved under this Lease,
together with any costs incurred by Landlord as a result of Tenant’s failure to perform other covenants contained in this
Lease, together with all other expenses incurred by Landlord, including reasonable attorneys' fees, in the reletting of the Demised
Premises, or Landlord may, at its election and upon notice to Tenant, declare this Lease forfeited and void and may thereupon re-enter
and take full possession of said Demised Premises as the owner thereof and free from any right or claim of Tenant and such election
of re-entry last mentioned shall be and constitute an absolute bar to any right to enter by Tenant upon the payment of all arrearage
of rents and costs after a dispossession under any suit or process for breach of any of the covenants of this Lease, except as
may be provided under statutes then in force; and the commencement of any action to recover possession of the Demised Premises
aforesaid shall be deemed a sufficient notice of election of said Landlord to treat this Lease as void and terminated unless the
Landlord shall notify Tenant before beginning such proceedings, that after obtaining such possession, Landlord will continue to
look to Tenant for the performance of this Lease and will submit the Demised Premises on Tenant's account in the manner above provided.
In the event of forfeiture, Tenant shall be released from any further liability under this Lease.

 

    	7

    	 

    

 

B.           In the
event of a default which terminates the Tenant’s right to possession of the Demised Premises, then, and in that event, and
without the requirement of further notice, all Other Leases referred to in Paragraph 5 of this Agreement shall revert to the Landlord.

 

15.           Quiet
Enjoyment: Subject to Tenant's performance of all of its obligations under this Lease, Tenant shall have the peaceful and
quiet use of the Demised Premises for the purpose set forth in Paragraph 6 without hindrance on the part of Landlord, and Landlord
shall warrant and defend Tenant in such peaceful and quiet use against any lawful claims of all persons claiming by, through or
under Landlord.

 

16.           Assignment:
Tenant shall not assign or sublet the Demised Premises, or any part thereof, without the written consent of Landlord which
consent shall not be unreasonably withheld, conditioned or delayed and, irrespective of such subletting or assignment, Tenant
shall nevertheless remain primarily liable for the performance of all of the terms of this Lease.

 

17.           Tenant’s
Environment Responsibilities: Tenant shall not cause or permit to occur:

 

A.           Any violation of the
Environmental Laws related to environmental conditions on, under or above the Demises Premises, or arising from the Tenant’s
use or occupancy of Demised Premises.

 

B.           The use, generation,
release, manufacture, production, processing, storage or disposal of any hazardous substances on, under or about the Demises Premises.

 

18.           Condition of the Premises:
Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty with respect to the
Demised Premises or the Building or with respect to the suitability or condition of any part of the Building for the conduct of
Tenant’s business except as provided in this Lease.

 

19.           Subordination:
This Lease shall be subordinated to any mortgage hereinafter placed upon the Demised Premises or any extension or renewal thereof
and Tenant shall execute any such subordination agreement as may be required by any Mortgagee.

 

20.           Intentionally
Deleted.

 

    	8

    	 

    

 

21.           Notices:
All notices, consents, demands and requests which may be or are required to be given by either party to the other shall be in writing
and sent by United States Registered or Certified Mail, return receipt requested, addressed as follows:

  

TO Landlord:
 Brandon J. and Heather N. Day

  Irrevocable Trust

  5022 East 111th Street South

Tulsa, Oklahoma 74137

 

TO Tenant:     Cygnus
Energy Futures, LLC

  5022 East 111th Street South

Tulsa, Oklahoma 74137

 

Attn: Brandon J. Day,
Vice President

  

22.           Construction
of Lease: If any provisions of this Lease shall, by appropriate Court Order, be held invalid or in contravention of the
laws or ordinances of any applicable governmental authority, such invalidation shall not serve to affect the remaining portion
of this Lease. Interpretation and enforcement of this Lease shall be governed by the laws of the State of Minnesota.

 

23.           Headings:
Headings of titles of the paragraphs are inserted solely for the convenience of reference and shall not constitute a part of this
Lease, nor shall they affect its meaning, construction or effect.

 

24.           Successors
and Assigns: This Lease shall bind Landlord and Tenant and their successors, assigns, heirs, administrators or other legal
representatives, as the case may be.

 

25.           Governing
Law:  This Agreement shall be construed under and governed by the laws of the State of Minnesota.

 

26.           Relationship
of Parties: Nothing contained in this Agreement shall be deemed or construed by the Parties hereto or by the third party
to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between
Landlord and Tenant, it being expressly understood and agreed that neither the method of computation of rent nor any other provisions
contained in this Agreement nor any act or acts of the Parties hereto shall be deemed to create any relationship between Landlord
and Tenant other than the relationship of Landlord and Tenant.

 

    	9

    	 

    

 

27.           Short
Form Lease: Tenant shall not record this Agreement without the written consent of Landlord; however, upon request of either
party hereto, the other party shall join in the execution of a memorandum or so called "short form" of this Agreement
for the purposes of recordation. Said memorandum or short form of this Agreement shall describe the Parties, the Demised Premises,
the term of this Agreement, any special provisions and shall incorporate this Agreement by reference. Any fees required to be paid
in order to record such short form Agreement shall be paid by Tenant.

 

28.           Brokers:
Tenant and Landlord each warrant that they have had no dealings with any broker or agent in connection with the negotiation
or execution of this Agreement and each agrees to indemnify and hold the other harmless from and against any and all costs, expense
or liability for commissions or other compensation and charges claimed by any broker or agent by reason of services alleged to
have been rendered to at the instance of, or agreed to by it in connection with this Agreement.

 

29.           Offset
Statement: Within ten (10) days after request therefore by Landlord, or in the event that upon any sale, assignment or
hypothecation of the Demised Premises or the land or building of which they are a part by Landlord, an offset statement shall be
required from Tenant, Tenant agrees hereby to deliver in recordable form a Certificate to any proposed mortgagee or purchaser or
to Landlord certifying (if such be the case) that this Agreement is in full force and effect and that there are no defenses or
offsets thereto, or stating those claimed by Tenant.

 

30.           Counterparts:
This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which
shall constitute one and the same instrument.

 

31.           Attornment: In the event
any proceedings are brought for the foreclosure of the Demises Premises, or in the event of exercise of the power of sale under
any Mortgage made by Landlord covering the Demised Premises, Tenant shall attorn to the purchaser upon any such foreclosure of
sale and recognize such purchaser as Landlord under this Lease. Landlord shall use its best efforts to promptly deliver to Tenant
a commercially reasonable form of recognition and non-disturbance agreement that is consistent with Tenant’s rights under
this Lease, executed by all parties that hold a ground lease, mortgage, deed of trust or other security interest in the Demised
Premises that would be superior to Tenant’s leasehold interest under this Lease. Landlord shall use diligent efforts to
provide Tenant with executed originals of such recognition and non-disturbance agreements within forty-five (45) days of the date
of this Lease.

 

    	10

    	 

    

 

32.           Lease
Term: The phrase "lease term” as used herein shall include any extensions or renewals of the original lease
term.

 

33.           Subrogation:
As long as their respective insurers so permit, Landlord and Tenant hereby mutually waive their respective rights of recovery against
each other for any loss insured by fire, extended overage and other property insurance policies existing for the benefit of the
respective Parties. Each party shall obtain any special endorsements, if required by their insurer to evidence compliance with
the aforementioned waiver.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signatures on Following
Page]

 

    	11

    	 

    

 

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

 

Landlord:

Brandon J. and Heather N. Day
Revocable Trust

 

/s/ Brandon J.
Day                                

By:    Brandon J. Day

Its: Trustee

 

/s/ Heather N. Day                               

By:    Heather N. Day

Its: Trustee

 

 

 

Tenant:

Cygnus Energy Futures,
LLC

 

/s/ Timothy S. Krieger                           

By:    Timothy S. Krieger

Its: President/CEO

 

/s/ Brandon J. Day                                

By:    Brandon J. Day

Its: Vice President

 

 

 

 

 

STATE OF MINNESOTA)

 ) SS.

COUNTY OF Dakota         )

 

The foregoing instrument
was acknowledged before me, a Notary Public this 5th day of March, 2013 by Timothy S. Krieger, the President/CEO on behalf of
Cygnus Energy Futures, LLC, a Minnesota Limited Liability Company.

 

 

  

 

    	12

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