Document:

Guaranty of Lease (Bradenton, Florida)

 Exhibit 10.18 
 GUARANTY OF LEASE 
 GUARANTY OF LEASE (this “Guaranty”) made as of
September 4, 2008, by KAR Holdings, Inc., a Delaware corporation, with an address at 13085 Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032 (“Guarantor”), to First Industrial Financing Partnership, L.P., a Delaware
limited partnership, having an office at 311 South Wacker Drive, Suite 4000, Chicago, Illinois 60606 (“Landlord”). 
 W I T N E S S E T H : 
 WHEREAS: 
 A. Landlord has been requested by ADESA FLORIDA, LLC, a Florida limited liability company, with an office at c/o ADESA, Inc., 13085
Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032 (“Tenant”), to enter into a Ground Lease dated as of the date hereof (the “Lease”), whereby Landlord would lease to Tenant, and Tenant would rent from
Landlord, certain premises located in Bradenton, Florida, as more particularly described in the Lease (the “Premises”). 
 B. Guarantor is the indirect owner of Tenant, and will derive substantial economic benefit from the execution and delivery of the Lease. 
 C. Guarantor acknowledges that Landlord would not enter into the Lease unless this Guaranty accompanied the execution and delivery of the
Lease. 
 D. Guarantor hereby acknowledges receipt of a copy of the Lease. 
 NOW, THEREFORE, in consideration of the execution and delivery of the Lease and of other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Guarantor covenants and agrees as follows: 
 1. DEFINITIONS.
Defined terms used in this Guaranty and not otherwise defined herein have the meanings assigned to them in the Lease. 
 2. COVENANTS OF GUARANTOR. 
 (a) Guarantor absolutely, unconditionally and irrevocably guarantees, as
a primary obligor and not merely as a surety: (i) the full and prompt payment of all Base Rent and Additional Rent and all other rent, sums and charges of every type and nature payable by Tenant under the Lease, and (ii) the full, timely
and complete performance of all covenants, terms, conditions, obligations and agreements to be performed by Tenant under the Lease (all of the obligations described in clauses (i) and (ii), collectively, the “Obligations”). If
a Default occurs under the Lease, Guarantor will, without notice or demand, promptly pay and perform all of the Obligations, and pay to Landlord, when and as due, all Base Rent and Additional Rent payable by Tenant under the Lease, together with all
damages, costs and expenses to which Landlord is entitled pursuant to any or all of the Lease, this Guaranty and applicable Laws. 
 (b) Guarantor agrees with Landlord that (i) any action, suit or proceeding of any kind or nature whatsoever (an “Action”) commenced by Landlord against Guarantor to collect Base Rent and Additional Rent and any other
rent, sums and charges due under the Lease for any month or months shall not prejudice in any way Landlord’s rights to collect any such amounts due for any subsequent month or months throughout the Term in any subsequent Action,
(ii) Landlord may, at its option, without prior notice or demand, join Guarantor in any Action against Tenant in connection with or based upon either or both of the Lease and any of the Obligations, (iii) Landlord may seek and obtain
recovery against Guarantor in an Action against Tenant or in any independent Action against Guarantor without Landlord first asserting, prosecuting, or exhausting any remedy or claim against Tenant or against any security of Tenant held by Landlord
under the Lease, and (iv) Guarantor will be conclusively bound by a judgment entered in any Action in favor of Landlord against Tenant, as if Guarantor were a party to such Action, irrespective of whether or not Guarantor is entered as a party
or participates in such Action. 
  

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 (c) Any default or failure by the Guarantor to perform any of its Obligations under this
Guaranty shall be deemed an immediate Default under the Lease; provided, however, that if the basis for the occurrence of a default under this Guaranty is the occurrence of a default by Tenant under the Lease, then the default under this Guaranty
shall not constitute a Default under the Lease until any applicable notice and cure period to which the Tenant is entitled under the Lease has expired; provided further, however, that under no circumstances shall this provision be construed to
entitle Tenant to multiple notices or cure periods in connection with a given default under the Lease. 
 3.
GUARANTOR’S OBLIGATIONS UNCONDITIONAL. 
 (a) This Guaranty is an absolute and unconditional guaranty of
payment and of performance, and not of collection, and shall be enforceable against Guarantor without the necessity of the commencement by Landlord of any Action against Tenant, and without the necessity of any notice to Guarantor of nonpayment,
nonperformance or nonobservance by Tenant, or any notice of acceptance of this Guaranty, or of any other notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives in advance. The obligations of
Guarantor hereunder are independent of the obligations of Tenant. 
 (b) If the Lease is renewed, or the Term extended, for
any period beyond the Expiration Date, either pursuant to any option granted under the Lease or otherwise, or if Tenant holds over beyond the Expiration Date, the obligations of Guarantor hereunder shall extend and apply to the full and faithful
performance and observance of all of the Obligations under the Lease accruing during any renewal, extension or holdover period, except as otherwise expressly and specifically provided in the Lease. 
 (c) Except as otherwise expressly and specifically provided in the Lease, this Guaranty is a continuing guarantee and will remain in full
force and effect notwithstanding, and the liability of Guarantor hereunder shall be absolute and unconditional irrespective of: (i) any modifications, alterations or amendments of the Lease (regardless of whether Guarantor consented to or had
notice of same), (ii) any releases or discharges of Tenant other than the full release and complete discharge of all of the Obligations, (iii) Landlord’s failure or delay to assert any claim or demand or to enforce any of its rights
against Tenant, (iv) any extension of time that may be granted by Landlord to Tenant, (v) any assignment or transfer of all of any part of Tenant’s interest under the Lease (whether by Tenant, by operation of law, or otherwise),
(vi) any subletting, concession, franchising, licensing or permitting of the Premises, (vii) any changed or different use of the Premises, (viii) any other dealings or matters occurring between Landlord and Tenant, (ix) the
taking by Landlord of any additional guarantees, or the receipt by Landlord of any collateral, from other persons or entities, (x) the release by Landlord of any other guarantor, (xi) Landlord’s release of any security provided under
the Lease, or (xii) Landlord’s failure to perfect any landlord’s lien or other lien or security interest available under applicable Laws. Without limiting the foregoing, this Guaranty shall be applicable to any obligations of Tenant
arising in connection with a termination of the Lease, whether voluntary or otherwise. Guarantor hereby consents, prospectively, to Landlord’s taking, entering into or otherwise causing any or all of the foregoing actions or omissions.

 (d) Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall
in no way be terminated, affected, diminished or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, of any of the rights or remedies reserved to Landlord pursuant to the provisions of the Lease or by relief of
Tenant from any of Tenant’s obligations under the Lease or otherwise by (i) the release or discharge of Tenant in any state or federal creditors’ proceedings, receivership, bankruptcy or other proceeding; (ii) the impairment,
limitation or modification of the liability of Tenant or the estate of Tenant in bankruptcy, or of any remedy for the enforcement of Tenant’s liability under the Lease, resulting from the operation of any present or future provision of the
United States Bankruptcy Code (11 U.S.C. § 101 et seq., as amended), or from other statute, or from the order of any court; or (iii) the rejection, disaffirmance or other termination of the Lease in any such proceeding. This Guaranty shall
continue to be effective notwithstanding that at any time the payment of any amount due under the Lease or this Guaranty may be rescinded or must otherwise be returned by Landlord for any reason, including, without limitation, the insolvency,
bankruptcy, liquidation or reorganization of Tenant, Guarantor or otherwise, all as though such payment had not been made, and, in such event, Guarantor shall pay to Landlord an amount equal to any such payment that has been rescinded or returned.

  

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 4. WAIVERS OF GUARANTOR. 
 (a) Without limitation of the foregoing, Guarantor waives (i) notice of acceptance of this Guaranty and notice of dishonor,
(ii) notice of any actions taken by Landlord or Tenant under the Lease or any other agreement or instrument relating thereto, (iii) notice of any and all Defaults under the Lease, except to the extent Guarantor is expressly identified as a
party to whom notice is to be provided under the Lease, (iv) all other notices, demands and protests, and all other formalities of every kind in connection with the enforcement of the Obligations, omission of or delay in which, but for the
provisions of this Section 4, might constitute grounds for relieving Guarantor of its obligations hereunder, (v) any requirement that Landlord protect, secure, perfect, insure or proceed against any security interest or lien, or any
property subject thereto, or exhaust any right or take any action against Tenant or any collateral, and (vi) the benefit of any statute of limitations affecting Guarantor’s liability under this Guaranty. 
 (b) GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY PERSON OR ENTITY WITH RESPECT TO ANY
MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH ANY OR ALL OF THIS GUARANTY; THE LEASE; ANY CLAIM OF LIABILITY AGAINST OR OBLIGATION OF TENANT IN ANY MANNER RELATED TO THE PREMISES AND/OR THE PROPERTY; ANY CLAIM OF INJURY OR DAMAGE IN
ANY WAY RELATED TO THE LEASE, THE PREMISES AND/OR THE PROPERTY; ANY ACT OR OMISSION OF TENANT, ITS AGENTS, EMPLOYEES, CONTRACTORS, SUPPLIERS, SERVANTS, CUSTOMERS, CONCESSIONAIRES, FRANCHISEES, PERMITTEES OR LICENSEES; OR ANY ASPECT OF THE USE OR
OCCUPANCY OF, OR THE CONDUCT OF BUSINESS IN, ON OR FROM THE PREMISES AND/OR THE PROPERTY. GUARANTOR SHALL NOT IMPOSE ANY COUNTERCLAIM OR COUNTERCLAIMS OR CLAIMS FOR SET-OFF, RECOUPMENT OR DEDUCTION OF RENT IN ANY ACTION BROUGHT BY LANDLORD AGAINST
GUARANTOR UNDER THIS GUARANTY. GUARANTOR SHALL NOT BE ENTITLED TO MAKE, AND HEREBY WAIVES, ANY AND ALL DEFENSES AGAINST ANY CLAIM ASSERTED BY LANDLORD IN ANY SUIT OR ACTION INSTITUTED BY LANDLORD TO ENFORCE THIS GUARANTY OR THE LEASE. IN ADDITION,
GUARANTOR HEREBY WAIVES, BOTH WITH RESPECT TO THE LEASE AND WITH RESPECT TO THIS GUARANTY, ANY AND ALL RIGHTS WHICH ARE WAIVED BY TENANT UNDER THE LEASE, IN THE SAME MANNER AS IF ALL SUCH WAIVERS WERE FULLY RESTATED HEREIN. THE LIABILITY OF
GUARANTOR UNDER THIS GUARANTY IS PRIMARY AND UNCONDITIONAL. 
 5. SUBROGATION. Guarantor shall not be
subrogated, and hereby waives and disclaims any claim or right against Tenant by way of subrogation or otherwise, to any of the rights of Landlord under the Lease or otherwise, or in either or both of the Premises and the Property, which may arise
by any of the provisions of this Guaranty or by reason of the performance by Guarantor of any of its Obligations hereunder. Guarantor shall look solely to Tenant for any recoupment of any payments made or costs or expenses incurred by Guarantor
pursuant to this Guaranty. If any amount shall be paid to Guarantor on account of such subrogation rights at any time when all of the Obligations shall not have been paid and performed in full, Guarantor shall hold such amount in trust for Landlord
and shall pay such amount to Landlord immediately following receipt by Guarantor, to be applied against the Obligations, whether matured or unmatured, in such order as Landlord may determine. Guarantor hereby subordinates any liability or
indebtedness of Tenant now or hereafter held by Guarantor to the obligations of Tenant to Landlord under the Lease. 
 6.
REPRESENTATIONS AND WARRANTIES OF GUARANTOR. Guarantor represents and warrants that: 
 (a) Guarantor is a
Delaware corporation; has all requisite power and authority to enter into and perform its obligations under this Guaranty; and this Guaranty is valid and binding upon and enforceable against Guarantor without the requirement of further action or
fulfillment of any condition. 
 (b) To the knowledge of Guarantor, the execution, delivery and performance by Guarantor of
this Guaranty does not and will not (i) contravene any applicable Laws or any contractual restriction binding on or affecting Guarantor or any of its properties, or (ii) result in or require the creation of any lien, security interest or
other charge or encumbrance upon or with respect to any of its properties. 
  

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 (c) There is no action, suit or proceeding pending or, to the knowledge of Guarantor,
threatened against or otherwise affecting Guarantor before any court or other governmental authority or any arbitrator that may materially adversely affect Guarantor’s ability to perform its obligations under this Guaranty. 
 (d) Guarantor’s principal place of business is 13085 Hamilton Crossing Boulevard, Suite 500, Carmel, Indiana 46032. 
 (e) Guarantor hereby represents and warrants that Guarantor is the indirect owner of Tenant and, as such, will derive substantial economic
benefit from the execution and delivery of the Lease. 
 As used in this Guaranty, references to the “knowledge” of Guarantor means the actual
knowledge of each and all of Eric Loughmiller, Warren Byrd and Kevin Neal. 
 7. NOTICES. Any consents, notices,
demands, requests, approvals or other communications given under this Guaranty shall be given as provided in the Lease, as follows: 
 (a) if to Guarantor at Guarantor’s address set forth on the first page of this Guaranty, Attention: Michelle Mallon, with a copy to Winston & Strawn LLP, 35 West Wacker Drive, Chicago, Illinois 60601, Attention: Ankur Gupta;
and 
 (b) if to Landlord, at Landlord’s address set forth on the signature page of the Lease (with a copy to
Landlord’s attorney as also set forth on the signature page to the Lease); or to such other addresses as either Landlord or Guarantor may designate by notice given to the other in accordance with the provisions of this Section 7.

 8. CONSENT TO JURISDICTION; WAIVER OF IMMUNITIES. The undersigned hereby (a) consents and submits to the
jurisdiction of the courts of the State of Illinois and the federal courts sitting in the State of Illinois and shall be subject to service of process in the State of Illinois with respect to any dispute there arising, directly or indirectly, out of
this Guaranty, (b) waives any objections which the undersigned may have to the laying of venue in any such suit, action or proceeding in either such court, (c) agrees to join Landlord in any petition for removal or change of venue to
either such court, and (d) irrevocably designates and appoints Tenant as its authorized agent to accept and acknowledge on its behalf service of process with respect to any disputes arising, directly or indirectly, out of this Guaranty. The
undersigned hereby acknowledges and agrees that Landlord may obtain personal jurisdiction and perfect service of process through Tenant as the undersigned agent, or by any other means now or hereafter permitted by applicable law. Nothing above shall
limit Landlord’s choice of forum for purposes of enforcing this Guaranty. 
 9. FINANCIAL INFORMATION.

 (a) Deliveries. Throughout the period of time during which Guarantor submits ‘34 Act filings on the
Electronic Data Gathering, Analysis and Retrieval (EDGAR) system of the Securities and Exchange Commission in accordance with the Securities and Exchange Act of 1934, as amended from time to time (“Public Filer”), Guarantor shall
have no obligation to furnish Landlord with any financial information and Landlord shall procure and such financial information concerning Guarantor from publicly available information filed with, at the direction of, or pursuant to the requirements
of, the Securities and Exchange Commission. In the event that, and at all times while, Guarantor is no longer a Public Filer, then the following requirements shall apply: (i) from time to time during the term of this Guaranty, but not more
frequently than once in any consecutive twelve month period (except in the event that Tenant is in Default under the Lease or in the event that Landlord is pursuing a potential sale or refinancing of the Premises), Guarantor shall deliver to
Landlord, within ten (10) business days following receipt of Landlord’s written request therefor, the most currently available audited financial statements of Guarantor; and if no such audited financial statements have been theretofore
prepared and, therefore, are not available, then Guarantor shall instead deliver to Landlord its most currently available unaudited balance sheet, operating statement, income statement and statements of cash flow and equity; (ii) without the
need for Landlord to make any written request therefor, Guarantor shall deliver to Landlord its annual federal tax returns within thirty (30) days after the filing thereof with the Internal Revenue Service; and (iii) upon the delivery of
any such financial 

  

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information described in clause (i) above, Guarantor shall, as of the date of each such delivery, be deemed (unless Guarantor specifically states
otherwise in writing) to automatically represent and warrant to Landlord that such financial information is true, accurate and complete in all material respects, and that, except as specifically stated in writing, there has been no material adverse
change in the financial condition of Guarantor from the date that such financial information was prepared through the date such financial information is delivered to Landlord. 
 (b) Financial Covenant Compliance. To the knowledge of Guarantor, as of the date hereof, Guarantor is not in default (nor
has Guarantor received any written notice alleging the occurrence of a default) under any of its financial covenants set forth in any document evidencing or pertaining to its current senior credit facility. For purposes of this Guaranty, any
reference to “Senior Debt” shall mean Guarantor’s current senior credit facility, as that facility may be renewed, amended, modified, restated, rearranged or refinanced, and any credit facility into which Guarantor enters
during the term of this Guaranty that replaces or provides credit in lieu of that current senior credit facility or any replacement or substitute facility, as the case may be. Guarantor shall provide to Landlord written notice of any default by
Guarantor under any of its financial covenants set forth in any document evidencing or pertaining to its Senior Debt (the “Debt Covenants”), such notice to be delivered by Guarantor to Landlord within twenty (20) days after
Guarantor first obtains knowledge of such default (a “Debt Covenant Default”) or, if Guarantor is entitled to notice of such Debt Covenant Default under the applicable loan documents, within twenty (20) days after receipt by
Guarantor of such notice of such Debt Covenant Default. Notwithstanding the foregoing, throughout the period of time during which the Guarantor is a Public Filer, notice of any Debt Covenant Default by Guarantor shall be deemed given to Landlord in
satisfaction of Guarantor’s obligations hereunder if such Debt Covenant Default is disclosed in a form 8-K filed by Guarantor or in any other publicly available information filed with, at the direction of, or pursuant to the requirements of,
the Securities and Exchange Commission. 
 10. ASSIGNMENT; SALE OF ASSETS; CHANGE IN CONTROL. Guarantor shall
have the right to freely, and without the obligation to obtain Landlord’s consent thereto, (a) assign (whether directly or indirectly), in whole or in part, this Guaranty, or (b) allow this Guaranty to be transferred, in whole or in
part and whether directly or indirectly, by operation of law or by merger or dissolution, or (c) sell, transfer or convey (whether directly or indirectly) some or all of its tangible and intangible assets to any entity that is not controlled
by, or under common control with, Guarantor, or (d) transfer a controlling interest (i.e. greater than a forty-nine percent (49.0%) voting or non-voting ownership interest) of stock, membership interests or partnership interests in
Guarantor (each of (a) through (d) being referred to herein as a “Transfer”), provided that immediately following the applicable Transfer the successor Guarantor resulting from such Transfer (the “Successor
Guarantor”) has a net worth, as determined in accordance with generally accepted accounting principles (“GAAP”), that equals or exceeds Four Hundred Fifty Million Dollars ($450,000,000) (the “Threshold Net
Worth”). Guarantor shall provide written notice to Landlord of any Transfer no later than ten (10) days prior to the consummation of the Transfer and, at that time, Guarantor shall also advise Landlord, in writing, whether or not the
Successor Guarantor shall satisfy the Threshold Net Worth requirement immediately upon the consummation of the Transfer. Prior to the consummation of the Transfer, Guarantor shall also deliver to Landlord whatever information and documentation
Landlord reasonably requests in order to evidence the Successor Guarantor’s net worth, as determined in accordance with GAAP (“GAAP Net Worth”), as such GAAP Net Worth shall exist immediately upon the consummation of the
then-pending Transfer. In the event that immediately after any such Transfer, the Successor Guarantor would not have a GAAP Net Worth that equals or exceeds the Threshold Net Worth (a “Net Worth Deficiency”), Guarantor shall have
the right to proceed with the then-pending Transfer if and only if Guarantor or the Successor Guarantor deposits, or causes to be deposited, with Landlord a Net Worth Security LC (as defined hereinbelow) prior to the consummation of the then-pending
Transfer. Further, following any such Transfer in which a Net Worth Security LC is required to be deposited with Landlord, the Successor Guarantor shall continue to maintain with Landlord a Net Worth Security LC at all such times during the Term in
which a Net Worth Deficiency continues to exist on the part of the Successor Guarantor. As used herein, a “Net Worth Security LC” shall mean an irrevocable and unconditional (except as provided in (e) below) standby letter of
credit (a) in an amount equal to the amount set forth in the table below opposite the corresponding GAAP Net Worth of the Successor Guarantor, as also set forth in the table below (the “Stated Amount”); (b) issued by a
federal or state chartered bank or other financial institution reasonably acceptable to Landlord (the “Issuer”); (c) naming Landlord as beneficiary; (d) having a stated expiration date not earlier than one (1) year
after its date of issuance and automatically renewing for one (1) year periods unless the Issuer provides Landlord with at least 60 days’ advance written notice that the Net Worth Security LC will not be renewed; (e) being payable
upon presentation of sight drafts accompanied only by Landlord’s statement that it is entitled to the amount drawn in accordance with this Guaranty; and (f) allowing partial and multiple drawings. 
  

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	 GAAP Net Worth of Successor Guarantor
	  	 Stated Amount of Net Worth Security LC

	$400,000,000.00 - $449,999,999.99	  	1 year of then-current Base Rent
	$350,000,000.00 - $399,999,999.99	  	1  1/2 years of then-current Base Rent
	$349,999,999.99 or less	  	2 years of then-current Base Rent

 Notwithstanding the foregoing, in the event that: (x) the expiration date of any Net Worth Security LC occurs
before the earlier of (i) the date on which Landlord is required to release and return the Net Worth Security LC to Guarantor or the Successor Guarantor, as the case may be, pursuant to the requirements of this Section 10 or
(ii) the expiration date of the Lease term, (y) the Issuer has advised Landlord that the Issuer will not automatically renew the Net Worth Security LC; and (z) Guarantor or the Successor Guarantor, as the case may be, fails to deliver
to Landlord, at least forty-five (45) days prior to the expiration of such Net Worth Security LC either (A) an amendment thereto extending the expiration date of such Net Worth Security LC for not less than twelve (12) months, or
(B) a new Net Worth Security LC, in form and substance in accordance with (a) through (f) above, then Landlord may draw on such Net Worth Security LC and apply the proceeds in whatever manner or for whatever purpose Landlord
reasonably deems appropriate in the event that either or both (i) Tenant Defaults under the Lease or (ii) Guarantor defaults under this Guaranty (in addition to any other remedies available to Landlord under this Guaranty). If Tenant
Defaults under the Lease or Guarantor defaults hereunder, Landlord may, without notice to Guarantor or the Successor Guarantor, as the case may be, draw on the Net Worth Security LC and apply the proceeds in whatever manner Landlord deems
appropriate, in addition to any and all other remedies available to Landlord under the Lease and this Guaranty. In the event Landlord draws against the Net Worth Security LC, Guarantor shall, upon demand, at Guarantor’s option, immediately
either (aa) deposit with Landlord a sum of cash equal to amount drawn under the Net Worth Security LC or (bb) deliver to Landlord an additional Net Worth Security LC in an amount equal to the amount drawn. Landlord may deliver the Net Worth Security
LC to any purchaser or other assignee of Landlord’s interest in the Premises, whereupon Landlord shall be discharged from any further liability with respect to the Net Worth Security LC. In the event that Landlord exercises its rights under the
preceding sentence, Guarantor shall fully cooperate with Landlord, in all reasonable respects, to cause the Net Worth Security LC to be assigned and conveyed to, or reissued to, such purchaser. The Successor Guarantor will be solely responsible for
any fees or charges imposed in connection with the issuance or replacement of the Net Worth Security LC, and Landlord will be solely responsible for any bank fees or charges imposed in connection with any transfer or reissuance of the Net Worth
Security LC that occurs in connection with an assignment of the Lease and this Guaranty. 
 Provided that no Default under the Lease then exists and no
default under this Guaranty then exists, Landlord will deliver the Net Worth Security LC to the Issuer for cancellation within thirty (30) days after the first to occur of (1) the expiration of the Lease term or (2) such sooner date
on which the Successor Guarantor demonstrates, to the reasonable satisfaction of Landlord, that the Successor Guarantor has a GAAP Net Worth that equals or exceeds the Threshold Net Worth and has maintained a GAAP Net Worth that equals or exceeds
the Threshold Net Worth for six (6) consecutive calendar months. 
 If, at any time or from time to time during any period that Landlord is holding a
Net Worth Security LC, the Base Rent (as defined in the Lease) increases pursuant to the requirements of the Lease, then within fifteen (15) business days of the date on which the Base Rent adjustment occurs under the Lease, Guarantor shall
deliver to Landlord either (AA) an amendment to the Net Worth Security LC, increasing the amount thereto to an amount that satisfies the requirements of the table set forth above, based on the then-current annual Base Rent due under the Lease
(and assuming that Guarantor’s GAAP Net Worth is the same amount as it was when the Net Worth Security LC was originally issued) or (BB) a new Net Worth Security LC, in form and substance in accordance with the requirements of
(a) through (f) above, but in an amount that satisfies the requirements of the table set forth above, based on the then-current Base Rent due under the Lease (and assuming that Guarantor’s GAAP Net Worth is the same amount as it was
when the Net Worth Security LC was originally issued). 
  

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 11. MISCELLANEOUS. 
 (a) Guarantor further agrees that Landlord may, without notice, assign this Guaranty in whole or in part to any successor to
Landlord’s interest under the Lease. If Landlord disposes of its interest in the Lease, “Landlord,” as used in this Guaranty, shall mean Landlord’s successors and assigns; provided, however, in the event of any such
assignment of this Guaranty by Landlord, Guarantor shall have no obligation hereunder to Landlord’s successors or assigns until such time as Guarantor shall have received written notice from Landlord of any such assignment. 
 (b) Guarantor promises to pay all of Landlord’s expenses, including, without limitation, reasonable attorneys’ fees and costs,
incurred by Landlord in enforcing the terms and conditions of this Guaranty. 
 (c) Guarantor shall, from time to time within
ten (10) business days after receipt of Landlord’s written request therefor, but not more than once per calendar year during the Term (except that such obligation shall not be subject to a once per year annual limitation in the event of
(i) a Default by Tenant under the Lease, (ii) a default by Guarantor hereunder, (iii) a potential sale or financing of the Premises by Landlord), execute, acknowledge and deliver to Landlord a statement certifying that this Guaranty
is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as modified and stating such modifications). Such certificate may be relied upon by any prospective purchaser, lessor or
lender of all or a portion of the Premises and/or Property. 
 (d) If any portion of this Guaranty shall be deemed invalid,
unenforceable or illegal for any reason, such invalidity, unenforceability or illegality shall not affect the balance of this Guaranty, which shall remain in full force and effect to the maximum permitted extent. 
 (e) The provisions, covenants and guaranties of this Guaranty shall be binding upon Guarantor and its successors and assigns, and shall
inure to the benefit of Landlord and its successors and assigns, and shall not be deemed waived or modified unless such waiver or modification is specifically set forth in writing, executed by Landlord or its successors and assigns, and delivered to
Guarantor. 
 (f) Whenever the words “include”, “includes”, or “including” are used in this
Guaranty, they shall be deemed to be followed by the words “without limitation”, and, whenever the circumstances or the context requires, the singular shall be construed as the plural, the masculine shall be construed as the feminine
and/or the neuter and vice versa. This Guaranty shall be interpreted and enforced without the aid of any canon, custom or rule of law requiring or suggesting construction against the party drafting or causing the drafting of the
provision in question. 
 (g) Each of the rights and remedies herein provided are cumulative and not exclusive of any rights
or remedies provided by law or in the Lease or this Guaranty. 
 (h) The provisions of this Guaranty shall be governed by and
interpreted solely in accordance with the internal laws of the State of Illinois, without giving effect to the principles of conflicts of law. 
 (i) The execution of this Guaranty prior to execution of the Lease shall not invalidate this Guaranty or lessen the Obligations of Guarantor hereunder. 
 [Signature Page to Follow] 
  

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 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year first above
written. 
  

			
	GUARANTOR:
	
	KAR Holdings, Inc.
	a Delaware corporation
		
	By:	 	/s/ Rebecca C. Polak
	Name:	 	Rebecca C. Polak
	Its:	 	EVP, General Counsel & SecretaryFourteenth Supplemental Indenture

 Exhibit 4.1 
 SPECTRA ENERGY CAPITAL, LLC, 
 AS ISSUER, 
 SPECTRA ENERGY CORP, 
 AS GUARANTOR,

 AND 
 THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A. 
 AS TRUSTEE 
 Fourteenth Supplemental Indenture 
 Dated as of September 8, 2008 
 $250,000,000 5.90% Senior Notes due 2013 
 $250,000,000 7.50% Senior Notes due 2038 

 TABLE OF CONTENTS1 
  

					
			
		  		  	Page
		
	ARTICLE 1 NOTES	  	1
	 SECTION 1.01
	  	Establishment.	  	1
	 SECTION 1.02
	  	Definitions.	  	2
	 SECTION 1.03
	  	Payment of Principal and Interest.	  	2
	 SECTION 1.04
	  	Denominations.	  	3
	 SECTION 1.05
	  	Global Securities.	  	3
	 SECTION 1.06
	  	Guarantee of the Notes.	  	4
	 SECTION 1.07
	  	Redemption at the Option of Spectra Capital.	  	4
	 SECTION 1.08
	  	Defeasance.	  	6
	 SECTION 1.09
	  	Modification of Guarantee.	  	6
	 SECTION 1.10
	  	Amendment to Section 101 of the Original Indenture.	  	6
	 SECTION 1.11
	  	Paying Agent.	  	7
		
	ARTICLE 2 MISCELLANEOUS PROVISIONS	  	7
	 SECTION 2.01
	  	Recitals.	  	7
	 SECTION 2.02
	  	Ratification and Incorporation of Original Indenture.	  	7
	 SECTION 2.03
	  	Executed in Counterparts.	  	7
	 SECTION 2.04
	  	Governing Law.	  	7
		
	Exhibit A – Form of Note	  	
		
	Exhibit B – Certificate of Authentication	  	

 1
 This Table of Contents does not constitute part of the Indenture or have any bearing upon the interpretation of any of its terms and provisions. 
  

 i 

 THIS FOURTEENTH SUPPLEMENTAL INDENTURE is made as of the 8th day of September, 2008, by and among Spectra
Energy Capital, LLC, a Delaware limited liability company (formerly known as Duke Capital LLC and successor to Duke Capital Corporation), as issuer (“Spectra Capital”), Spectra Energy Corp, a Delaware corporation, as guarantor
(“Spectra Energy”), and The Bank of New York Mellon Trust Company, N.A. (formerly known as The Bank of New York Trust Company, N.A.)(successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), a national banking
association, as trustee (the “Trustee”). 
 W I T N E S S E T H: 
 WHEREAS, Spectra Capital has heretofore entered into a Senior Indenture, dated as of April 1, 1998, with the Trustee, as supplemented to the date
hereof with applicability to the Notes (as defined below), including by the Twelfth Supplemental Indenture dated December 14, 2007 (the “Twelfth Supplemental Indenture”), whereby Spectra Energy entered into a Guarantee for the benefit
of the Holders and the Trustee (as so supplemented, the “Original Indenture”); 
 WHEREAS, the Original Indenture is incorporated
herein by this reference and the Original Indenture, as amended and supplemented to the date hereof with applicability to the Notes, including by this Fourteenth Supplemental Indenture, is herein called the “Indenture”; 
 WHEREAS, under the Indenture, a new series of Securities may at any time be established in accordance with the provisions of the Indenture and the terms
of such series may be described by a supplemental indenture executed by the parties hereto; 
 WHEREAS, Spectra Capital hereby proposes to
create under the Indenture two new series of Securities, and Spectra Energy hereby proposes to Guarantee such Securities in accordance with the terms of the Indenture; 
 WHEREAS, additional Securities of other series hereafter established, except as may be limited in the Indenture as at the time supplemented and modified, may be issued from time to time pursuant to the Indenture as at
the time supplemented and modified; and 
 WHEREAS, all conditions necessary to authorize the execution and delivery of this Fourteenth
Supplemental Indenture and to make it a valid and binding obligation of Spectra Capital and Spectra Energy have been done or performed. 
 NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 ARTICLE 1 
 NOTES 
 SECTION 1.01 Establishment. 
 There is
hereby established two new series of Securities to be issued under the Indenture, to be entitled the “5.90% Senior Notes due 2013” (the “2013 Notes”) and the “7.50% Senior 

  

 1 

 
Notes due 2038” (the “2038 Notes” and, collectively with the 2013 Notes, the “Notes”). There is to be authenticated and delivered
$250,000,000 aggregate principal amount of 2013 Notes and $250,000,000 aggregate principal amount of 2038 Notes, and no further Notes of a series shall be authenticated and delivered except as provided by Section 304, 305, 306, 906 or 1106 or
the last paragraph of Section 301 of the Original Indenture; provided that any additional Notes of a series authenticated and delivered as provided in the last paragraph of Section 301 of the Original Indenture shall be fungible
with the original Notes of such series for United States federal income tax purposes. Each series of Notes shall be issued in fully registered form without coupons. 
 Each series of Notes, together with the endorsement of the Guarantee thereon, shall be in substantially the form set forth in Exhibit A hereto, and the form of the Trustee’s Certificate of Authentication for each
series of Notes shall be in substantially the form set forth in Exhibit B hereto. 
 Each Note shall be dated the date of authentication
thereof. 
 SECTION 1.02 Definitions. 
 The following defined terms used herein with respect to each series of Notes, shall, unless the context otherwise requires, have the meanings specified below. Capitalized terms used herein for which no definition is
provided herein shall have the meanings set forth in the Original Indenture. 
 “Interest Payment Dates” means each March 15
and September 15, commencing March 15, 2009. 
 “Original Issue Date” means September 8, 2008. 
 “Regular Record Date” means, with respect to each Interest Payment Date, the close of business on the March 1 and September 1, as
applicable, immediately preceding such Interest Payment Date (whether or not a Business Day). 
 “Stated Maturity” means
September 15, 2013 for the 2013 Notes and September 15, 2038 for the 2038 Notes. 
 SECTION 1.03 Payment of
Principal and Interest. 
 The principal of each series of Notes shall be due at the Stated Maturity for such series (unless earlier
redeemed). The unpaid principal amount of the 2013 Notes shall bear interest at the rate of 5.90% per annum until paid or duly provided for and the unpaid principal amount of the 2038 Notes shall bear interest at the rate of 7.50% per
annum until paid or duly provided for, and such interest will accrue from the Original Issue Date or from the most recent Interest Payment Date to which interest has been paid or duly provided for. Interest shall be paid semi-annually in arrears on
each Interest Payment Date to the Person or Persons in whose name the Notes of the applicable series are registered on the Regular Record Date for such Interest Payment Date, even if such Notes are canceled after such Regular Record Date and on or
before such Interest Payment Date. Any such interest that is not so punctually paid or duly provided for 

  

 2 

 
shall forthwith cease to be payable to the Holders on such Regular Record Date and may either be paid to the Person or Persons in whose name the Notes of
such series are registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee (“Special Record Date”), notice whereof shall be given to Holders of the Notes of such
series not less than ten days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes of such series may be listed, and upon such
notice as may be required by any such exchange, all as more fully provided in the Original Indenture. 
 Payments of interest on each series
of Notes shall include interest accrued to but excluding the respective Interest Payment Dates. Interest payments for each series of Notes shall be computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date
on which interest is payable on such series of Notes is not a Business Day, then payment of the interest payable on such date shall be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such
delay) with the same force and effect as if made on the date the payment was originally payable. “Business Day” means a day other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions in The City of New York
are authorized or obligated by law or executive order to remain closed or (iii) a day on which the Corporate Trust Office is closed for business. 
 Payment of principal of, premium, if any, and interest on each series of Notes shall be made in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and
private debts. Payments of principal of, premium, if any, and interest on Notes represented by a Global Security shall be made by wire transfer of immediately available funds to the Holder of such Global Security; provided that, in the case of
payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent. If any of the Notes of a series are no longer represented by a Global Security, payments of principal, premium, if any, and interest on such
Notes shall be made at the office of the Paying Agent maintained for such purpose; provided that (i) in the case of payments of principal and premium, if any, such Notes are first surrendered to the Paying Agent; and (ii) payments
of interest may be made, at the option of Spectra Capital, (A) by check mailed to the address of the Person entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at
a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior to the date for payment by the Person entitled thereto. 
 SECTION 1.04 Denominations. 
 Each series of Notes shall be issued in denominations of $2,000 or any
integral multiples of $1,000 above such amount. 
 SECTION 1.05 Global Securities. 
 Each series of Notes shall initially be issued in the form of one or more Global Securities registered in the name of the Depositary (which initially
shall be The Depository Trust Company) or its nominee (the “Global Securities”). Except under the limited circumstances described below, Notes represented by such Global Security or Global Securities shall not be 

  

 3 

 
exchangeable for, and shall not otherwise be issuable as, Notes in definitive form. The Global Securities described above may not be transferred except by
the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or to a successor Depositary or its nominee. 
 A Global Security shall be exchangeable for Notes registered in the names of persons other than the Depositary or its nominee only if (i) the
Depositary notifies Spectra Capital that it is unwilling or unable to continue as a Depositary for such Global Security and no successor Depositary shall have been appointed by Spectra Capital within 90 days of receipt by Spectra Capital of such
notification, or if at any time the Depositary ceases to be a clearing agency registered under the Exchange Act at a time when the Depositary is required to be so registered to act as such Depositary and no successor Depositary shall have been
appointed by Spectra Capital within 90 days after it becomes aware of such cessation or (ii) subject to the Depositary’s procedures, Spectra Capital in its sole discretion determines that such Global Security shall be so exchangeable. Any
Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Notes registered in such names as the Depositary shall direct. 
 SECTION 1.06 Guarantee of the Notes. 
 The Guarantor hereby agrees that the Guarantee set forth in
Section 102 of the Twelfth Supplemental Indenture shall apply with respect to each series of Notes as if the Notes were listed on Schedule A to the Twelfth Supplemental Indenture and constituted “Notes” thereunder. The Guarantor
agrees that Sections 103 and 106 of the Twelfth Supplemental Indenture shall be for the benefit of each series of Notes. 
 SECTION 1.07
Redemption at the Option of Spectra Capital. 
 Each series of Notes shall be redeemable, in whole at any time or in part from time to time,
at the option of Spectra Capital on any date (a “Redemption Date”), at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes of the series to be redeemed and (ii) the sum of the present values
of the Remaining Scheduled Payments thereon, discounted to such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, plus accrued and unpaid interest on the
principal amount being redeemed to such Redemption Date. 
 “Treasury Rate” means, with respect to any Redemption Date, the rate
per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such Redemption Date. The Treasury Rate shall be calculated on the third Business Day preceding such Redemption Date. 
 “Comparable
Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the applicable series of Notes to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 
  

 4 

 “Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of
the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if an Independent Investment Banker obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such quotations. 
 “Independent Investment Banker” means one of the Reference Treasury
Dealers appointed by Spectra Capital. 
 “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. (or its affiliates
and its successors), Merrill Lynch, Pierce, Fenner & Smith Incorporated (or its affiliates and its successors), one other nationally recognized investment banking firm that is a primary U.S. Government securities dealer (a “Primary
Treasury Dealer”) selected by Wachovia Capital Markets, LLC (or its affiliates and its successors) and one other Primary Treasury Dealer specified from time to time by Spectra Capital; provided, however, that if any of the foregoing
shall cease to be a nationally recognized investment banking firm that is a Primary Treasury Dealer, Spectra Capital shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by an Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to an Independent Investment Banker by such Reference
Treasury Dealer as of 3:30 p.m., New York City time, on the third Business Day preceding such Redemption Date. 
 “Remaining Scheduled
Payments” means, with respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however,
that, if such Redemption Date is not an Interest Payment Date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced (solely for the purpose of the definition of “Remaining Scheduled
Payments”) by the amount of interest accrued thereon to such Redemption Date. 
 Notwithstanding Section 1104 of the Original
Indenture, the notice of redemption with respect to the foregoing redemption need not set forth the Redemption Price but only the manner of ascertainment thereof. 
 In the event that any Redemption Date is not a Business Day, then payment of the Redemption Price shall be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any
such delay) with the same force and effect as if made on such Redemption Date. 
 Spectra Capital shall notify the Trustee of the Redemption
Price with respect to the foregoing redemption promptly after the calculation thereof. The Trustee shall not be responsible for calculating said Redemption Price. 
  

 5 

 If less than all of the Notes of a series are to be redeemed, the Trustee shall select the Notes or
portions of Notes of such series to be redeemed by such method as the Trustee shall deem fair and appropriate. The Trustee may select for redemption Notes of such series and portions of Notes of such series in amounts of whole multiples of $1,000.

 The Notes shall not have a sinking fund. 
 SECTION 1.08 Defeasance. 
 In addition to the conditions set forth in Section 1304 of the Original
Indenture, the application of Section 1302 or 1303 of the Original Indenture with respect to each series of Notes shall be subject to the condition that (a) in the event of Covenant Defeasance of such series of Notes pursuant to
Section 1303 of the Original Indenture, Spectra Capital shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee or a private letter ruling issued by the United States Internal
Revenue Service to the effect that the Holders of the Notes of such series will not recognize income, gain or loss for United States Federal income tax purposes as a result of Spectra Capital’s exercise of its option under Section 1303 of
the Original Indenture and will be subject to United States Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such option had not been exercised; and (b) in the event of Defeasance
of such series of Notes pursuant to Section 1302 of the Original Indenture, Spectra Capital shall have delivered to the Trustee an Opinion of Counsel from a nationally recognized counsel acceptable to the Trustee to the effect referred to in
clause (a) with respect to such Defeasance, which opinion is based on (i) a private letter ruling issued by the United States Internal Revenue Service addressed to Spectra Capital, (ii) a published ruling of the United States Internal
Revenue Service pertaining to a comparable form of transaction or (iii) a change in the applicable United States Federal income tax law (including regulations) after the date hereof. 
 SECTION 1.09 Modification of Guarantee. 
 Clause (1) of Section 902 of the Original Indenture is hereby amended and restated in relation solely to each series of Notes to read as follows: 
 “(1) change the Stated Maturity of the principal of, or any installment of principal of or interest on, any Security, or reduce the
principal amount thereof or the rate of interest thereon or any premium payable upon the redemption thereof, or reduce the amount of the principal of an Original Issue Discount Security or any other Security which would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 502 or change the coin or currency in which any Security or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any
such payment on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date), or change the obligations of Spectra Energy under the Guarantee in any manner adverse to the Holders, or”. 
 SECTION 1.10 Amendment to Section 101 of the Original Indenture. 
 The definition of “Subsidiary” in Section 101 of the Original Indenture is hereby amended and restated in relation solely to each series of Notes to read as follows: 
  

 6 

 ““Subsidiary” means, as to any Person, a corporation or other entity of which more than
50% of the outstanding shares of capital stock or other ownership interests having ordinary voting power (other than capital stock or other ownership interests having such power only by reason of contingency) is at the time owned, directly or
indirectly through one or more intermediaries, or both, by such Person.” 
 SECTION 1.11 Paying Agent. 
 The Trustee shall initially serve as Paying Agent with respect to each series of Notes, with the Place of Payment initially being the office of Bank of
New York Mellon, 101 Barclay Street, New York, New York. 
 ARTICLE 2 
 MISCELLANEOUS PROVISIONS 
 SECTION 2.01 Recitals. 
 The recitals in this Fourteenth Supplemental Indenture are made by Spectra Capital and Spectra Energy only and not by the Trustee, and the Trustee
assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Fourteenth Supplemental Indenture. All of the provisions contained in the Original Indenture in respect of the rights,
privileges, immunities, powers and duties of the Trustee shall be applicable in respect of each series of Notes and of this Fourteenth Supplemental Indenture as fully and with like effect as if set forth herein in full. 
 SECTION 2.02 Ratification and Incorporation of Original Indenture. 
 As supplemented hereby, the Original Indenture is in all respects ratified and confirmed, and the Original Indenture and this Fourteenth Supplemental Indenture shall be read, taken and construed as one and the same
instrument. 
 SECTION 2.03 Executed in Counterparts. 
 This Fourteenth Supplemental Indenture may be executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute but one and the same instrument.

 SECTION 2.04 Governing Law. 
 This Fourteenth Supplemental Indenture, each series of Notes, the Guarantee and, with respect to each series of Notes and the Guarantee, the Original Indenture, shall be governed by and construed in accordance with the laws of the
State of New York. 
  

 7 

 IN WITNESS WHEREOF, each party hereto has caused this instrument to be signed in its name and behalf by
its duly authorized officers, all as of the day and year first above written. 
  

			
	SPECTRA ENERGY CAPITAL, LLC, as Issuer
		
	By:	 	/s/ Allen C. Capps
	Allen C. Capps
	Vice President and Treasurer

  

			
	SPECTRA ENERGY CORP, as Guarantor
		
	By:	 	/s/ Allen C. Capps
	Allen C. Capps
	Vice President and Treasurer

  

			
	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY,
N.A., as Trustee

		
	By:	 	/s/ Marcella Burgess
	Name:	 	Marcella Burgess
	Title:	 	Assistant Vice President

  

 8 

 EXHIBIT A  
 FORM OF FACE OF 
 [5.90% SENIOR NOTE DUE 2013] 
 [7.50% SENIOR NOTE DUE 2038] 
 [IF THE NOTE IS TO BE A
GLOBAL SECURITY, INSERT—THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART
FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A
NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK), A NEW YORK CORPORATION (“DTC”), SHALL ACT AS THE DEPOSITARY UNTIL A SUCCESSOR SHALL BE APPOINTED BY THE COMPANY AND THE REGISTRAR. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
  

			
	No.                         	  	CUSIP No.                         

 SPECTRA ENERGY CAPITAL, LLC 
 [5.90% SENIOR NOTE DUE 2013] 
 [7.50% SENIOR NOTE DUE 2038] 
 Principal Amount:
$                         
 Interest Payment Dates: March 15 and September 15, commencing March 15, 2009 
  

 A-1 

 Regular Record Date: Close of business on the March 1 and September 1 (whether or not a Business Day)
immediately preceding the relevant Interest Payment Date. 
 Original Issue Date: September 8, 2008 
 Stated Maturity: September 15, [2013] [2038] 
 Interest Rate: [5.90]
[7.50]% per annum 
 Authorized Denomination: $2,000 and any integral multiples of $1,000 above such amount 
 Spectra Energy Capital, LLC, a Delaware limited liability company (the “Company,” which term includes any successor Person under the Indenture referred to on
the reverse hereof), for value received, hereby promises to pay to
                                , or registered assigns, the principal sum of
                         DOLLARS
($                        ) [, or such other principal amount as shall be set forth in the Schedule of Increases or
Decreases attached hereto]* on the Stated Maturity shown above and to pay interest thereon from the Original Issue Date shown above, or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in
arrears on each Interest Payment Date as specified above, commencing March 15, 2009 and on the Stated Maturity at the rate per annum shown above (the “Interest Rate”) until the principal hereof is paid or made available for payment
and on any overdue principal and on any overdue installment of interest. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this
[5.90% Senior Note due 2013] [7.50% Senior Note due 2038] (this “Security”) is registered on the Regular Record Date as specified above next preceding such Interest Payment Date. Except as otherwise provided in the Indenture, any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the Trustee referred to on the reverse hereof, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series shall be listed, and upon such notice as may be required by any such exchange, all as more fully
provided in the Indenture. 
 Payments of interest on this Security will include interest accrued to but excluding the respective Interest Payment Dates.
Interest payments on this Security shall be computed and paid on the basis of a 360-day year of twelve 30-day months. In the event that any date on which interest is payable on this Security is not a Business Day, then payment of the interest
payable on such date will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable.
“Business Day” means a day other than (i) a Saturday or a Sunday, (ii) a day on which banking institutions in The City of New York are authorized or obligated by law or executive order to remain closed or (iii) a day on
which the Corporate Trust Office is closed for business. 
  
  

	*	Insert in Global Securities. 

  

 A-2 

 Payments of principal of, premium, if any, and interest on the Securities shall be made in such coin or currency of the
United States of America as at the time of payment is legal tender for payment of public and private debts. Payments of principal of, premium, if any, and interest on the Securities of this series represented by a Global Security shall be made by
wire transfer of immediately available funds to the Holder of such Global Security, provided that, in the case of payments of principal and premium, if any, such Global Security is first surrendered to the Paying Agent. If any of the Securities of
this series are no longer represented by a Global Security, payments of principal, premium, if any, and interest on such Securities shall be made at the office of the Paying Agent maintained for such purpose; provided that (i) in the
case of payments of principal and premium, if any, such Securities are first surrendered to the Paying Agent; and (ii) payments of interest may be made, at the option of the Company, (A) by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or (B) by wire transfer at such place and to such account at a banking institution in the United States as may be designated in writing to the Trustee at least 16 days prior
to the date for payment by the Person entitled thereto. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE
HEREOF, WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 
 Unless the certificate of authentication
hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 
  

 A-3 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its seal. 
  

					
	Dated:	 	SPECTRA ENERGY CAPITAL, LLC
			
		 	By: 	 	 
		 	 Name:
 Title:
	 	
	Attest:	 		 	
	 	 		 	

 ENDORSEMENT OF GUARANTEE 
 Spectra Energy Corp (which term includes any successor Person under the Indenture referred to herein) has fully and unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in
the Indenture, (a) the due and punctual payment of the principal of, premium, if any, and interest on all the Securities of this series, whether at Stated Maturity, by declaration of acceleration, call for redemption or otherwise, the due and
punctual payment of interest on overdue principal of, premium, if any, and interest on all the Securities of this series, if any, if lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee
in accordance with the terms of the Indenture; and (b) in case of any extension of time of payment or renewal of any Securities of this series or any such other obligations, that the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, whether at Stated Maturity, by declaration of acceleration, call for redemption or otherwise 

					
		 	SPECTRA ENERGY CORP
			
		 	By: 	 	 
		 	 Name:
 Title:
	 	
	Attest:	 		 	
	 	 		 	

 CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

					
		 	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY,
N.A., as Trustee

			
		 	By: 	 	 
		 		 	Authorized Officer

  

 A-4 

 FORM OF REVERSE SIDE OF SECURITY 
 This Security is one of a duly authorized issue of Securities of the Company (the “Securities”), issued and issuable in one or more series under a Senior Indenture, dated as of April 1, 1998, as amended
and supplemented with applicability to the Securities of this series by the Twelfth Supplemental Indenture thereto dated as of December 14, 2007 and the Fourteenth Supplemental Indenture thereto dated as of September 8, 2008, and as may be
further amended and supplemented (as so amended and supplemented, the “Indenture”), among the Company (formerly known as Duke Capital LLC and successor to Duke Capital Corporation), as Issuer, Spectra Energy Corp (“Spectra
Energy”), as Guarantor, and The Bank of New York Mellon Trust Company, N.A. (successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as Trustee (the “Trustee,” which term includes any successor trustee
under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitation of rights, duties and immunities thereunder of the Company, Spectra Energy, the Trustee
and the Holders of the Securities issued thereunder and of the terms upon which said Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof as [5.90% Senior Notes due 2013] [7.50%
Senior Notes due 2038] initially limited in the aggregate principal amount of up to $250,000,000. Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture. 
 The Securities of this series shall be redeemable, in whole at any time or in part from time to time, at the option of the Company on any date (a “Redemption
Date”), at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Securities of this series to be redeemed and (ii) the sum of the present values of the Remaining Scheduled Payments thereon discounted to
such Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 50 basis points, plus accrued and unpaid interest on the principal amount being redeemed to such Redemption Date.

 “Treasury Rate” means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such Redemption Date. The Treasury Rate shall be calculated on the
third Business Day preceding such Redemption Date. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an
Independent Investment Banker as having a maturity comparable to the remaining term of the Securities of this series to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term of the Securities of this series. 
 “Comparable Treasury Price”
means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for such Redemption Date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (ii) if an
Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 
  

 A-5 

 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company.

 “Reference Treasury Dealer” means each of J.P. Morgan Securities Inc. (or its affiliates and its successors), Merrill Lynch, Pierce,
Fenner & Smith Incorporated (or its affiliates and its successors), one other nationally recognized investment banking firm that is a primary U.S. Government securities dealer (a “Primary Treasury Dealer”) selected by Wachovia
Capital Markets, LLC (or its affiliates and its successors) and one other Primary Treasury Dealer specified from time to time by the Company; provided, however, that if any of the foregoing shall cease to be a nationally recognized investment
banking firm that is a Primary Treasury Dealer, the Company shall substitute therefor another nationally recognized investment banking firm that is a Primary Treasury Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by an Independent Investment Banker, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to an Independent Investment Banker by such Reference Treasury Dealer as of 3:30 p.m., New York City time, on the third
Business Day preceding such Redemption Date. 
 “Remaining Scheduled Payments” means, with respect to each Security of this series to be redeemed,
the remaining scheduled payments of the principal thereof and interest thereon that would be due after the related Redemption Date but for such redemption; provided, however, that, if such Redemption Date is not an Interest Payment Date with
respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be reduced (solely for the purpose of the definition of “Remaining Scheduled Payments”) by the amount of interest accrued thereon to such
Redemption Date. 
 Notwithstanding Section 1104 of the Indenture, the notice of redemption with respect to the foregoing redemption need not set forth
the Redemption Price but only the manner of ascertainment thereof. 
 In the event that any Redemption Date is not a Business Day, then payment of the
Redemption Price will be made on the next succeeding day that is a Business Day (and without any interest or payment in respect of any such delay) with the same force and effect as if made on such Redemption Date. 
 The Company shall notify the Trustee of the Redemption Price with respect to the foregoing redemption promptly after the calculation thereof. The Trustee shall not be
responsible for calculating said Redemption Price. 
 Notice of any redemption by the Company will be mailed at least 30 days but not more than 60 days
before any Redemption Date to each Holder of Securities of this series to be redeemed. If less than all the Securities of this series are to be redeemed at the option of the Company, the Trustee shall select, in such manner as it shall deem fair and
appropriate, the Securities of this series to be redeemed. The Trustee may select for redemption Securities of this series in amounts of whole multiples of $1,000. 
  

 A-6 

 In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor
for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 The Securities of this series shall not
have a sinking fund. 
 If an Event of Default with respect to the Securities of this series shall occur and be continuing, the principal of the Securities
of this series may be declared due and payable in the manner, with the effect and subject to the conditions provided in the Indenture. 
 The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of all series affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of all series affected thereby (voting as one class). The Indenture contains provisions permitting the Holders
of not less than a majority in principal amount of the Outstanding Securities of all series with respect to which a default under the Indenture shall have occurred and be continuing (voting as one class), on behalf of the Holders of the Securities
of all such series, to waive, with certain exceptions, such default under the Indenture and its consequences. The Indenture also permits the Holders of not less than a majority in principal amount of the Securities of each series at the time
Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture affecting such series. Any such consent or waiver by the Holder of this Security shall be conclusive
and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof, whether or not notation of such consent or waiver is made upon
this Security. 
 As provided in and subject to the provisions of the Indenture, the Holder of this Security shall not have the right to institute any
proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than a majority in principal amount of the Securities of this series at the time Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of
Default as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such
request and shall have failed to institute any such proceeding for 60 days after receipt of such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon or after the respective due dates expressed herein. 
 No reference herein to the Indenture and
no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and interest on this Security at the times, place and rate, and in the coin or
currency, herein prescribed. 
  

 A-7 

 As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Security is
registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company for such purpose, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to
the Company and the Security Registrar and duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series, of authorized denominations and of like tenor and for the same
aggregate principal amount, will be issued to the designated transferee or transferees. No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection therewith. 
 The Indenture contains provisions for defeasance at any time of the entire indebtedness of the
Securities of this series and for covenant defeasance at any time of certain covenants in the Indenture upon compliance with certain conditions set forth in the Indenture. 
 Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 
 The Securities of this series are issuable only in registered form without coupons in denominations of $2,000 and any integral multiples of $1,000 above such amount. As provided in the Indenture and subject to the
limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series of a different authorized denomination, as requested by the Holder surrendering the same upon surrender of
the Security or Securities to be exchanged at the office or agency of the Company. 
 This Security shall be governed by, and construed in accordance with,
the internal laws of the State of New York. 
 Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the
Company has caused CUSIP numbers to be printed on the Securities of this series as a convenience to the Holders thereof. No representation is made as to the accuracy of such numbers as printed thereon and reliance may be placed only on the other
identification numbers printed thereon. 
  

 A-8 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

											
	 TEN COM —
	 	as tenants in common	  	UNIF GIFT MIN ACT —	  	Custodian
		 		  		  	 	  		  	 
		 		  		  	(Cust)	  		  	(Minor)
	 TEN ENT —
	 	as tenants by the entireties	  		  		  		  	
						
	 JT TEN —
	 	as joint tenants with rights of survivorship and not as tenants in common	  		  	under Uniform Gifts to Minors Act	  		  	
		 		  		  	(State)

 Additional abbreviations may also be used though not on the above list. 
  
  
 ASSIGNMENT 
 FOR VALUE RECEIVED, the undersigned hereby sell(s) and transfer(s) unto (please
insert Social Security or other identifying number of assignee)
                                 [PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS,
INCLUDING POSTAL ZIP CODE OF ASSIGNEE] the within Security and all rights thereunder, hereby irrevocably constituting and appointing
                     agent to transfer said Security on the books of the Company, with full power of substitution in the premises. 

Dated:
                                 
 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular without alteration or
enlargement, or any change whatever. 
  

			
	Signature Guarantee:	  	 

 SIGNATURE GUARANTEE 
 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended. 
  

 A-9 

 [TO BE ATTACHED TO GLOBAL CERTIFICATES] 
 SCHEDULE OF INCREASES OR DECREASES 
 The following increases or decreases in this Global
Certificate have been made: 
  

									
	 Date
	 	 Amount of decrease in
principal amount
of
Security evidenced by
 the Global Certificate
	 	 Amount of increase
 in principal amount
 of Security evidenced
 by the Global
 Certificate
	  	Principal amount
of Security
evidenced by the
Global Certificate
following such
decrease or increase	  	Signature of
authorized officer of
Trustee or
Custodial Agent
		 		 		  		  	
		 		 		  		  	
		 		 		  		  	
		 		 		  		  	

  

 A-10 

 EXHIBIT B 
 CERTIFICATE OF AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture. 
  

			
	 THE BANK OF NEW YORK MELLON
 TRUST COMPANY,
N.A.,
 as Trustee

		
	By:	 	 
		 	Authorized Officer

  

 B-1

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